Enterprise and Innovation and Creativity

Student Name:

Student ID:

Author’s Note:

Word Count: 3235

Table of Contents

Introduction

This study has mainly focused on making an entrepreneurship plan for S&S Garments, which is an Indian company and has initiated expansion in the UK market. For growing stable and endurable future, the company has mainly focused on innovation to gain customer attention to become best in the fashion hub. The company has to implement adequate strategies for sustaining among competitors. The company will move forward with innovation and creation to extract value from the emerging globe in the form of entrepreneurship. The maximum amount of revenue of the company (S&S GARMENTS) will be generated from its key customers and the core members associated (Lang, and Liu, 2019). The company will contribute to the GDP of that nation and the global GDP as well. The GNP (global production network) nature of S&S GARMENTS will help the company to attach with several producers in the form of fragmented manufacturing.

Part 1- Proposition

The Idea of Innovative Business

According to the present business infrastructure, there is a huge potential to gain profit in the UK market for a fashion textile industry like S&S Garment. Though, many competitors in this segment (Fashion Textile) are flourishing and sustaining long in that particular market. At the same time, they have occupied a large market share as well. For this reason, the S&S Garments has to focus on formulating strategy along with appropriate budget planning for sustaining in a new marketplace.

Entrepreneurship ecosystem

All the particulars existing in this world can be stated as part of the ecosystem (Igwe et al., 2020). In the context of the fashion retail industry, the main six aspects of the entrepreneurial ecosystem should be assessed to understand the potentiality and sustainability of the S&S garments in the new marketplace.

Culture: Middle-aged people of UK are highly fashionable. The culture of that place is slandered, and people like to go with trends and loves to remain fashionable.

Finance: Financial help or the capital for a start-up business is available in every market of the UK. Several banks are there for financing loans to emerging companies.

Policy: The nation has its own rules and regulations for entrepreneurial businesses. However, the policies are not very difficult for an emerging company and also not so complicated.

Markets: It can be emphasised that there are several fashion companies successfully flourishing in the market of UK. The competition will be tough, and the new business must move with adequate and effective strategies to sustain.

Human Resource: There are available human resources in the UK market. Emerging company will get sufficient workforces for operating business to achieve success.

Supports: many supportive organisations and financial services are ready to provide support to the emerging companies in that particular market. Moreover, ‘Fashioncapital’ in the UK is ready to support to the new start-ups to grow and provide protection. Its aim is to boost up creative talent and helps to become a successful brand. To the emerging companies the ‘Fashioncapital’ proffers one-to-one trade supervising, special classes along with all kind of legal documents. On the other hand, ‘Fashion angel’ is another support system sustaining in the UK to help start-up fashion companies. They provide essential support during challenging times. They help the emerging companies to prepare an effective fashion business plan and to grow their skills.

Company Mission

S&S Garments Company understands the worth of value and diversity. For this reason, 30% of the directors of the company are female. The higher authorities of the company are stressed about diminishing gender and social discrimination. Apart from that, the brand S&S Garments, values, quality, services, innovation, and trust. It has a mission of producing inspirational quality that is easily accessible to others. The prime mission of the company is maximising the wealth of its stakeholders so that they can remain stress-free and be happy and be ready to invest for further operations. This action will help the company to occupy a vast share in the market and to amplify sales.

Company Vision

Vision guides to take decisions and make strategies and give a sense of the future as well. The company has a target to achieve height by making different its products and services where the customers of S&S GARMENTS are ready to pay a premium. The company will have to participate and perform several corporate social responsibilities to amplify the loyalty of the company. The company has to differentiate its products and services in such a manner that should be prised by others and make it utterly different from its competitors.

Aim and Objectives

The company focused on designing clothes and launching fashion based on customer needs and demographic and psychographic segmentation. They have framed the cost of products and services based on quality and class. The aims of this project are-

To identify and analyse the market condition

To produce an efficient business plan to start a fashion business in a new market

The objectives of the project are-

Evaluating all the internal, external and financial aspects of the selected company

Formulation and application of strategies to develop innovative planning for increasing the business profitability

Business Model Canvas

Business Model Canvas is a tactical implementation and a lean start-up framework for new or recorded business model growth.

Key partners:		1. The whole sellers/suppliers of raw materials and the producers and retailers of other quality clothes 2. Financial investors
Key activities		1. The S&S Garments has to build up an effective relationship with the new customers and the other stakeholders. 2. They must be ready to deal with sudden difficulties that may arise for an emerging business. 3.Supply chain management should be done properly 4. Marketing is the most important activity for an emerging business For a fashion garment business, it is important maintaining a good and flexible relationship with all the associated members.
Value proposition		1. The respective company should worth the quality of garments along with a proper sense of fashion and trends 2. The product display is another important factor for an emerging business. Garments should be rightly displayed so that it can grab the attention of customers 3. An emerging fashion company should come up with an extensive range of cloths to meet the expectation of all types customers of all age group 4. Fashion should go with the market trend along with latest collections for sustaining among competitors
Customer relationship		1. satisfaction of the customers 2. Providing quality services to the customers. 3. The opinion of the customers These are the techniques that will help the emerging S&S garments to build up an effective relationship with the customers.
Customer segments		The garments shop should target all the age group of people. Fashionable clothes should be available for all age group of customers. But mostly the middle-aged people like teenagers and young people are fond of fashion.
Key resources		1. capital resources 2. human resources 3. technical resources 4. physical resources
Channels		1. Social Media 2. Television advertisement Presently, social media is the most effective way to reach out to a large population within a short time.
Cost structure		Total cost includes Cost of fixed assets Variable cost Cost of manufacturing The cost of fixed assets included in the plan of initial investment that remain unchanged The cost of variable utterly dependent on the production volume of the company The cost of production includes the manufacturing cost and raw material cost
Revenue stream	1. Revenue can be generated by increasing product selling.

By evaluating both the Entrepreneurship ecosystem and the model of the business canvas, it can be stated that; to enter a new market, especially in a market like UK the company (S&S GARMENTS) will require an initial investment of capital nearly £60,0000. It is assumed that this amount will cover the initial cost of set-up, along with marketing and other operational costs. A proper budget plan will require dealing with sudden unexpected negative cash flow that may occur in the initial months even before the company becomes able to cross its breakeven point.

Section 2- Detailed Plan of Business

This particular section will analyse the provided details, which includes the concept of the products, the competitive and market analysis, operational plans, information related to sales and financial consideration.

Planning of Product

As discussed in the previous part, S&S Garments deals with high quality apparels products. While operating, the company follows the new product development theory and to increase the effectiveness, and the organisation assures the professional coordination in between manufacturing, research and development, marketing, finance and purchasing departments (Kiss and Barr, 2017). The NPD or New Product Development Process consists of eight stages such as new product idea generation, evaluation of ideas, developing and testing the concepts, finalising market strategies, analysis of business, product development, test marketing and commercialisation. While developing a new type of apparel, the organisation at the end of each step evaluates and makes decisions on the continuation to the next stage.

Figure: New Product Development process

(Source: Kiss and Barr, 2017)

S&S Garments, in terms of clothing, pursues red ocean strategy, which includes competing in an aggressive and competitive market. As the clothing brand is decreasing the performances, the first and foremost objective of the organisation should be gaining competitive advantages by focusing on the pricing and quality while operating in the hugely competitive market. Being one of the eminent red ocean companies in India, S&S Garments focuses on the opportunities of profit and growth by eliminating the competitors to gain competitive advantage. The cost leadership and differentiation of products will be helpful in gaining competitive advantages. The main focus of S&S Garments’s is on the cost cutting by cost leadership while keeping in mind the long term profitability. Along with that, the competitive position, structure, environment etc. factors must have to take into account (BRETCU, 2018). This particular approach will not only create a news scope for uplifting the brand but also help the organisation to operate efficiently in the market of UK.

Competitive and Market Analysis

Market Analysis

To evaluate the market condition, the PEST analysis is required, which is provided below t have a proper idea about the business environment of the UK.

Factors	Description
Political	The recent stability of UK government assists the organisations in starting a new business. The increasing tax rate after Brexit may hamper business growth.
Economical	The stability of the economy of the UK provides the consumers to spend more in the food and fashion, which will ultimately in favour of the business organisation. It ultimately increases customer engagement.
Social	The culture of the UK allows the consumers to focus on fashion, and the consumers spend a large amount for it.
Technological	The availability of highly technically sound equipment and skilled employees can help the organisation in business operation and growth (Thompson and McLarney, 2017).

Competitor and competitive analysis

In the contextual market, already there are potential rivals who are operating the business in the contextual market. For a new venture, business management has to arrange a competitive analysis of the market to have a brief idea about the nature and condition of the market.

Competitive Factor	My Idea/ Business		Competitor A		Competitor B			Value to Customers
	Strength	Weakness	Strength	Weakness		Strengths	Weakness		Key
Products & services	Unique and new	anonymous	√	×		√	√		3
Price	Average in market	inconvincible	×	√		×	√		1
Quality & reliability	Better than rivals	uncertainty	×	√		√	×		2
Target Customers	All types of people	Not able to reach rural areas	√	×		√	×		2
Brand image/reputation	Good	anonymous	√	×		√	×		1
Location	Around cities	Unreachable to countryside	×	√		√	×		2
Customer choice	Strong	Uncertainty	×	√		×	√		3
Distribution channels	Reliable	Uncertainty	×	√		×	√		4
Marketing strategy	Strong	New in market	×	√		√	×		2
Resources	Credible	Unawareness	√	×		√	×		1

(1=CRITICAL, 2= LESS CRITICAL, 3= VERY IMPLEMENT, 4= IMPORTANT, 5= NOT VERY IMPORTANT)

Marketing Strategy

In the domestic market, S&S Garments Company will have loss of strategic opportunity due to lack of marketing strategy. The organisers should increase giving TV advertisement in priority markets to reach a large number of viewers (Jones, Suoranta and Ball, 2020). As per the chief executive of the company itis easier and effective to advertise on social media like Facebook, where a big difference can be made through likes and buying.

Marketing objectives

Achieve significant share (minimum 25%)in the UK market

Become the largest fashion industry of UK and holding the 1st rank as the leading fashion company for upcoming generation by 2023

Within six months or a year minimum 50% brand image should be increased

Market Segmentation

Segmenting, targeting, and positioning are the main features of market segmentation that describes the profit measures that should be taken by the respective company. The STP analysis of S&S Garments plays a vital role in the behavioral pattern of the organization. The company should segregate its new audience in a few strictures like demographic, psychographic, and behavioral patterns (Samieeand, Chirapanda, 2019). However, it can be stated that the company is successfully running through an ethical business structure. The company should set a target based on the size and potentiality of that market.

Gender	Male and female
Age	Mainly 18 to 40 years old
Education	From the college level
Income	Medium to high
Language	English and Hindi
Lifestyle and Interest	Fashionable, forward-thinking, trend followers, likes innovation
Desire	Unique and good quality

Figure 1: S&S Garments Market Segmentation

(Source: Created by Author)

Marketing mix

Product

Product is the most important factor for an emerging business. While entering the UK market, the respective company should be aware of the quality of its product. Especially in the case of fashion brands, quality maintenance is essential to achieve the satisfaction of the customers (Festa et al., 2016).

Price

The production cost and customer value perception are the key features that should be assessed and understood before setting the price of any product. The fact is the customer’s desire to purchase a good quality product at a reasonable price. The S&S Garments should provide good quality fashion outfits at a sensible cost to grab the wide range of market by influencing customers within a short span.

Place

While entering the UK market, the most vital decision S&S GARMENTS should take is selecting their place of operation. The flexibility of a location determines the level of success of a business. S&S GARMENTS should selects the right place in the UK based on factors like transportation, communication, availability of resources, prominence, etc.

Promotion

Promotional activities are mainly done for creating brand awareness among people. S&S GARMENTS can face problems while penetrating the UK market due to the lack of brand awareness of local people. The fact is the lack of awareness and familiarity discomforts people to get in the shops for purchasing (Grădinaru, Toma and Marinescu, 2016). Subsequently, proper marketing should be done in that new marketplace

Operational Plan

The operating plan of the S&S Garments’ business operation can be described by differentiating the two aspects, which are Structure and Human resource. The structure reflects the hierarchical position of the company, whereas the human resource is the integral members of the business planning.

Operational Structure

The apparel business of S&S Garments will generally follow the existing hierarchical structure of the overall business operation of S&S Garments. The organisational structure of S&S Garments is flat, which consists of a minimal level of management between the administration and the front line employees. This particular structure encourages the employees to get indulged into the decision making process, which decreases the bureaucracy and increases the skill of the employees in decision making related to business operation. It also helps the organisation to adopt rapid changes and assists in problem-solving. The organisational structure of the organisation will have a shape like a pyramid. These could also have various divisions with head and manager at the top of the pyramid to lead each unit with the executive management.

Figure: Hierarchal structure of S&S Garments

Source: Tran, Bisazza and Monz, 2018

Operational Process

The operational process of the S&S garments will involve around the conducing user servery comprised of assessing the activities and work environment of the users, the survey will provide business insight to the consumer requirements in which the R&D and designing team will conduct its garment development activities. The garment design process will be comprised between the material selection, assessing the fittings and sizes, pattern engineering of apparels and accessories selection. After the garment design executed, the operation will proceed towards garment assembly which will be consist of stiches and seaming, opening and closure of the materials and instigating layering and zoning within the projects (Festa et al., 2016). After the successful assembly and development, the developed products will be analysed and tested into the field marketplaces which will involve around bench scale testing and field trials. If the analysis process results in negative outcome the product will be sent back for re-design and as for positive result the product will be stocked for market appropriate and sent for production. With this process, S&S Garments will be able to deliver market appreciatory products and elevate their competitiveness in substantial manner. (For understanding the process check appendix 1 below)

Human resource

In the growth of the business operation of the clothing business of S&S Garments, the main responsibility relies upon the head of the various departments. As well as utilising existing tools and systems, S&S Garments would need to invest in additional dedicated resources to achieve sustainable growth. The human resource in the business operation of S&S Garments consists of three types of the department such as production department, business growth department and marketing department. The extra resources must focus on marketing and growth of the business.

Production	Business Growth	Marketing
1xFTE- Production Manager	1xFTE- Business Development Manager	1xFTE- Business Development Manager
40 hours per weekdays per week	40 hours per week – 5 days per week	40 hours per week- 5 days per week
£28,000 per annum	£ 28,000 per annum + £ 4000 commission + car facility	£28,000 per annum+£6000 commission+ travel benefit
£94,000 per annum+ national insurance

Table: Personal requirements

Financial Consideration

Financial Consideration

S&S Garments targets rapid growth through taking innovations and development of the market approach. In the introductory phase, the growth will be naturally low in terms of sales which will affect the overall growth. After one month of the acceleration process, the growth margin will start increasing. The rate of overall sales growth is projected through the chart diagram below.

Cash flow statement

A cash flow statement reconciles the amount of income generated over a period and the amount of cash available rises or declines over that time. A cash flow statement shows you how money flows from and into a business.

(Source: As Created by Author)

Balance Sheet

A balance sheet is an accounting statement showing the assets, liabilities and equities of a company. The balance sheet represents, at the publication date, the state of the finances of a company (what it owes and owns).

(Source: As Created by Author)

Break-Even Analysis

The total start-up cost of the business is 300000, including its assets.

The company will sell 1200 clothes and garments per year.

The selling price for each product is £50.

The variable cost for each product is £35

That means the overall profit from each product is (50-35)= £15

In order to reach the breakeven point, the company has to sell = (300000/ 15) = 20000 units.

The company sales 1200 unit per month so to reach the breakeven point the company need time up to = (20000/ 1200) = 17 months.

Business Plan

SWOT Analysis

Strengths	Weaknesses
The strengths for the business operation of S&S Garments can be the market experience, brand recognition and the presence in the international market.	While operating in the UK and the international market, the major parts which can be addressed as weaknesses are the declining sales rate and the public perception which has decreased the business growth of the apparel business of S&S Garments.
Opportunities	Threats
As the main competitor of S&S Garments, Debenhams operates in the market of UK, the shifting of focus on international expansion. Besides that, providing online service to capture the huge market can be another opportunity for the company.	The competition in business operation can be the major threat for S&S Garments as the competitors from different markets have started taking initiatives of international expansion (Toms and Zhang, 2016).

Growth Plan

For the instigating growth within the business, S&S garments can implement a comprehensive Ansoff Matrix for its strategic plan. (See the appendix 2 for understanding the concept of Ansoff matrix)

	Existing Products	New Products
Existing markets	Market penetration Develop capacity through constant recruiting Elevate purchase volume Develop relationship regional distributors to improve supply chain and product sells	Product development Develop products appreciatory to the new markets Constant survey consumers and re-design products
New Markets	Market Development Expand into new markets and customer demographics Provide home delivery and e-commerce services Become popular land-market through extensive deals and promotions	Diversification Constant re-designing of products to keep regulating new products in the market. New product development in each 4 months (Source: Festa et al., 2016)

Conclusion

S&S Garments will operate the business of clothing in a previously served but a vital market. The new venture will help to enhance the existing clothing business to a different level. Analysis and evaluation of various marketing tools are also provided to have a clear idea about the scenario of the contextual market, which will help the management to choose proper strategies to penetrate successfully in the contextual market. Besides that, the risk factors which can be a threat in the business operation and the opportunities are also provided through various efficient analysis processes, and the approximate idea of the financial statements for the business operation in the contextual market is also delivered. It can be clearly stated that the newly designed product will reach the customers, which will ultimately lead to overall business growth and sustainability.

References

Silva, E.S., Hassani, H. and Madsen, D.Ø., 2019. Big Data in fashion: transforming the retail sector. Journal of Business Strategy.

Taylor, A., 2019. An exploratory study of the relationship between job insecurity and employee engagement focusing on temporary employees in the retailing industry in the United Kingdom| Case study: S&S Garments Group plc.

Samiee, S. and Chirapanda, S., 2019.International marketing strategy in emerging-market exporting firms.Journal of International Marketing, 27(1), pp.20-37.

Kiss, A.N. and Barr, P.S., 2017. New product development strategy implementation duration and new venture performance: A contingency-based perspective. Journal of Management, 43(4), pp.1185-1210.

BRETCU, A., 2018. COMPETITIVE STRATEGIES BETWEEN THE RED OCEAN AND BLUE OCEAN. AnaleleUniversitatii’EftimieMurgu’Resita.Fascicola II.StudiiEconomice, (25).

Sokolova, T. and Li, Y., 2020. Mix or Match? Consumer Spending Decisions in Conditional Promotions. Journal of Consumer Psychology.

Li, X. and Li, Y., 2016.Chain-to-chain competition on product sustainability. Journal of Cleaner Production, 112, pp.2058-2065.

Toms, S. and Zhang, Q., 2016. S&S Garments and the decline of the British textile industry, 1950–2000. Business history review, 90(1), pp.3-30.

Thompson, J. and McLarney, C., 2017. What effects will the strategy changes undertaken by next Plc have on themselves and their competition in the UK Clothing Retail Market?. Journal of Commerce and Management Thought, 8(2), pp.234-264.

Tran, K., Bisazza, A. and Monz, C., 2018. The importance of being recurrent for modeling hierarchical structure. arXiv preprint arXiv:1803.03585.

Lang, C. and Liu, C., 2019. The entrepreneurial motivations, cognitive factors, and barriers to become a fashion entrepreneur: A direction to curriculum development for fashion entrepreneurship education. International Journal of Fashion Design, Technology and Education, 12(2), pp.235-246.

Igwe, P., Odunukan, K., Rahman, M., Rugara, D. and Ochinanwata, C., 2020. How Entrepreneurship Ecosystem influences the development of frugal innovation and informal entrepreneurship?. Thunderbird International Business Review.

Jones, R., Suoranta, M. and Ball, C., 2020. Entrepreneurial marketing strategy, orientations and networks. In Handbook of Entrepreneurship and Marketing. Edward Elgar Publishing.

Festa, G., Cuomo, M.T., Metallo, G. and Festa, A., 2016. The (r) evolution of wine marketing mix: From the 4Ps to the 4Es. Journal of Business Research, 69(5), pp.1550-1555.

Grădinaru, C., Toma, S.G. and Marinescu, P., 2016. Marketing mix in services. Ovidius” University Annals.

Appendices

1. Proposed operational process of S&S garments

2. Ansoff Matrix Model for entrepreneurial strategic growth plan

Tags: alwaysopen, assignmenthelpaustralia, assignmenthelpmelbourne, assignmenthelpsydney, assignmenthelpwebsites, london, londonstudent, melbourne, myassignmenthelp, plagiarismfreework, studentassignmenthelp