Social Performance as a Business Strategy - MyAssignmenthelp.com

Question: Discuss about Social Performance as a Business Strategy. Answer: Background This business plan is about fashion boutique named Xenia Boutique operating in Australia. Xenia Boutique is a small boutique which is operating at the local level in Australia. Xenia Boutique is the start-up retail which is selling out fashionable clothing products to women. The boutique is located in Australia which is also famous as the tourist destination. The key objective of this boutique is to establish strong brand name with the effective business. This report provides an effective business plan for Xenia Boutique in order to meet the needs and demands of the customers (Hoskisson, 2009). Mission The mission of Xenia Boutique is to provide new way of fashion to female customers based on the quality and styles (Xenia Boutique, 2017). Business goals The business goals of Xenia Boutique are to differentiate itself from existing boutiques in the Australian market. This objective is achieved by providing stylish and quality clothing products to female customers. The basic objective of the boutique is to provide excellent shopping experience to the customers. So, Xenia Boutique is focused on providing the clothing products in all the size and shapes for women. Along with this, the aim is to make purchasing easy, efficient and affordable for the customers (Payne Holt, 2008). Marketing Market research Xenia Boutique targets female customers for its clothing products. The current population of Australia is 24.13 million and there are 54% women of total population. So, it is easy for Xenia Boutique to target women by providing them various types of clothing products in order to meet their demands. Women always seek for the clothing products those are comfortable as well as fashionable. Xenia Boutique targets tourists also as Australia is famous among travelers in all over the world. People come in Australia to spend their vacations and they enjoy shopping also. So, Xenia Boutique takes advantage from tourists (Schnaars, 2010). Market analysis Fashion boutique is profitable business in the retail fashion industry including various changing styles and demands of the customers. The reason is that customers always seek for the excellent shopping experience of the shopping. In current time, women are doing jobs and they want various clothes for all purpose like casual wears and business wears. So, demand of the clothing products among female customers is very high in the retail market (Preble Hoffman, 2009). In order to understand the requirements of the customers, Xenia Boutique has established in team so that feedback from the important customers can be gathered. Although, there are various established boutiques in the Australian market but Xenia Boutique is trying to establish strong brand image by its effective marketing strategies (Jones Hayes, 2008). Marketing plan Products Xenia Boutique has combination of various clothing products for women customers. The boutique provides wide range of clothes from selected fashion designers. Company is also using modern fashion trend by understanding the needs and requirements of the customers. Women are very conscious for their clothes so, for them boutique has business clothing, casual wear, formal wear and jeans. Along with this, boutique is also providing some accessories such as scarves, belts and hats. The boutique has set value based pricing structure which provides quality, customer services, style and easy access of products in order to attract the customers. Placement Currently, Xenia Boutique is marketing its products by the regional and local specialty shops in all over the country. Along with this, boutique is selling its clothing products by its website and the delivery charges are applied with the products. By selling the products through online stores, Xenia Boutique is able to reach more customers and market in an appropriate manner (Glowik Smyczek, 2011). Pricing policy Xenia Boutique has set the prices of the products by keeping the competition in the mind. The price range of Xenia Boutique is affordable and female customers prefer the price ranges of low to middle. Along with this, the boutique is following demand based pricing as it makes sure that company is able to develop excellent brand awareness, market share improvements and customers preferences for the brand. Along with this, market penetration strategy is also used by Xenia Boutique to keep the lower price for the clothing products and to attract more customers (Gruca Rego, 2009). ICT marketing and Promotions strategy Xenia Boutique promotes itself in variety of ways. Information related to company and products can be achieved on direct mailing, internet and direct contact. The promotional efforts of the company have aim to differentiate itself from the competitors in the market. Xenia Boutique relies on the personal contacts with the retailers in order to promote the products. This relationship is helpful for the company to convey the message to the customers including unique qualities of products and build relationships. Along with this, Xenia Boutique is also focusing on some promotional activities i.e. print advertisements, TV campaigns, web-based E-flayer, and social media advertisements. In the promotional tactics, boutique is following push strategy i.e. sales promotion to push the products towards media channels (Drummond, Ensor Ashford, 2012). Evaluation of marketing For Xenia Boutique, there is the need to draw unique marketing strategy in order to deal with competition in the retail industry. The boutique is not only manufacturing unique clothes but also promoting the products with unique strategy of marketing. For this manner, company should plan to establish strong partnership with other retailers in the Australian market. By the marketing message, logo and slogan, company is able to generate awareness about the clothing products among the customers (Dentchev, 2009). Along with this, Xenia Boutique is developing its strong connection in all the important places in the country. The partnership done by the company is beneficial in order conduct various events and target the consumers. Xenia Boutique is trying to expand its business in local community of Australia. The interactive advertisements in the local community include media coverage, direct mail marketing, print advertisement, and various campaigns. So, large amount of budget is allocate d for the print and broadcast media (Joshi, 2009). Operations Legal and licensing requirements In order to operate the business in Australian market, there is the need to fulfill some legal and licensing process. First of all, Xenia Boutique has business registration including Australian Business number (ABN), the Goods and Service Tax (GST), and Tax file number (TFN). In Licenses, Xenia Boutique has government licenses, permits, approvals, codes if practices, standards and guidelines in order to keep compliance responsibilities (Lymbersky, 2009). Organizational structure and staffing Xenia Boutique is the small business so; staff in the boutique is also small. Owners of the company has leadership role and they are also accountable for daily operations in the business i.e. buying raw material, inventory management, administrative duties and making efforts. Management philosophy is used by the company in order to develop responsibility and mutual respect. The environment and structure of the boutique increase the productivity of the business. Staff member of boutique are helpful in order to secure the sales, general maintenance of the raw material and customers services effectively (Farahmand, 2011). Xenia Boutique hires the employees and sales staff as the part time employees. The sales associates of the boutique are paid on hourly basis along with commission also. Along with this, bonuses and offers are also given to the staff members each year based their performance review annually. Staff members of boutique are focused on maintaining public relations in the re tail fashion industry (Cool Schendel, 2010). Insurance and security issues There can be various issues in the boutique business related to insurance and security. In the business, there can be issues related to information security, personal security, physical security, and health hazards. Further, there can be risks of fire hazards, visual inspection of premises, natural disasters, crime and employee training (Lee, 2009). Business premises In case of Xenia Boutique, the company is operating through online tools and website. Along with this, company has its stores also where customers can go and purchase their desired products. Location is critical to many businesses and in the fashion industry, location can wither make or break a business. Xenia Boutique has its location in Queensland which is the famous part of Australia for tourists. People come there to spend their vacations. So, it is clear that the business premises of Xenia Boutique are appropriate for the company to gain profit. Equipment required For the business of boutique, some equipment is required by the company. In order to run the business effectively and minimize the impact of risk, it is important to have proper equipments and supplies. On the basic level, there are some important equipments are stocks i.e. filing cabinet, a safe, printer, computer, scanner and shredder. In terms of equipments of sales, there is the need of cash register, shopping bags of different sizes, shopping baskets and carts, security mirrors and security systems. Along with this, there is the need of shelves, racks, POP displays, hangers and stereo system (Dant, 2009). Production processes The process of converting fabric into designer garments is described below: Design- This is the initial process from the designing phase. There are different and various patterns of clothing which are also related to the taste and preferences of the customers. This is done by contracted designers as they provide basic designs of the clothing products. On average, a designer provides 40 designs per month. Pattern making- Based on the selected design, pattern making are developed. Based on these patterns, fabrics are cut block printed, and processed accordingly (Seshadri, 2009). Stitching and finishing- The pattern making is further followed by stitching which can be done by outsourcing or house stitching. Labels are also attached with the clothing products in this process. Final phase is finishing in which products are checked in terms of quality control for the final presentation at the outlet. The garments are also tagged for the identification of prices, sizes, handling instructions and addresses etc (Mouncey Baker, 2009). Critical risks There can be various risks in the business of Xenia Boutique while operating the business in the retail industry. The risks are related fashion trends, inventory management, and business. Without proper raw material, boutique cannot be able to good quality clothing products. Further, there is another risk related to trend in the fashion market as they are continuously changing. One inappropriate strategy can damage the brand image of the company. Along with this, there can be risk related to marketing strategies. Clothing business must have effective and clear marketing strategies in order to target potential customers (Marcer, 2012). Financial projection Basic assumption and information Xenia Boutique has established its business as the fashion retailer in the clothing market. The company is providing quality fabric products to the female customers. General assumptions FY 2017 FY 2018 Short term interest rate 10.00% 10.00% Long term interest rate 10.00% 10.00% Payment days estimator 30 30 Collection days estimator 0 0 Inventory turnover estimator 8.00 8.00 Tax rate 25.00% 25.00% Expenses in cash 10.00% 10.00% Sales on credit 0.00% 0.00% Personnel Burden 15.00% 15.00% Analysis of financial forecasts Sales mix forecast Sales FY 2017 FY 2018 Sales $187,500 $286,118 Other $0 $0 Total Sales $187,500 $286,118 Direct cost of sales Sales $28,500 $28,500 Other $0 $0 Subtotal costs of sales $28,500 $28,500 Cash flow forecast Net Profit FY 2017 FY 2018 Plus: Depreciation $0 $0 Change in accounts payable $14,777 ($4,126) Current borrowings $0 $0 Increase or decrease other liabilities $0 $0 Long-term borrowings $0 $0 Capital input $0 $0 Subtotal $65,466 $128,193 Less: Change in accounts receivable $0 $0 Change in inventory ($11,875) $0 Change in other short term assets $0 $0 Capital expenditure $0 $0 Dividends $0 $0 Sub Total ($11,875) $0 Net Cash flow $77,341 $128,193 Cash Balance $77,341 $205,635 Projected profit and loss statement Profit and Loss Statement FY 2017 FY 2018 Sales $187,500 $288,118 Direct cost of sales $28,500 $28,500 Production Payroll 0 0 Other 0 0 Total cost of sales $28,500 $28,500 Gross Margin $159,000 $257,181 Gross Margin % 84.80% 90.04% Operating Expenses: Sales and marketing expenses Sales and marketing Payroll 0 0 Rent $12,100 $13,200 Travel $2,000 $2,000 Burglar Alarm $1,188 $1,188 Total sales and marketing expenses 0 0 Sales and marketing % 0.00% 0.00% General and administrative Expenses General and administrative payroll 0 0 Payroll Expense $13,200 $13,200 Payroll Burden $1,980 $1,980 Depreciation 0 0 Office supplies $220 $220 Utilities $10,080 $10,080 Insurances $876 $876 Telephone $1,080 $1,080 Total General and administrative expenses 0 0 General and administrative % 0% 0% Other expenses Other payroll 0 0 Advertising $5,027 $5,484 Loan repayment $6,820 $7,440 Inventory $28,500 $28,500 Accounting/Legal $4,800 $4,800 Total operating expenses $87,871 $90,048 Profit before interest and taxes $71,129 $167,570 Interest expense short term $3,544 $3,544 Interest expense long term 0 0 Tax Incurred $16,896 $41,006 Extraordinary items 0 0 Net profit $50,688 $123,019 Net profit/sales 27.03% 43.00% Owners personal assets and liabilities Assets Short-term Assets FY 2017 FY 2018 Cash $77,341 $205,635 Accounts Receivable $0 $0 Inventory $7,125 $7,125 Other short-term assets $0 $0 Total short-term assets $84,466 $212,760 Long term assets Capital Assets $0 $0 Accumulated Depreciation $0 $0 Total Long term assets $0 $0 Total Assets $84,466 $212,760 Liabilities and capital Accounts Payable $14,777 $10,652 Short term notes $35,444 $35,444 Other short term liabilities $0 $0 Subtotal short term liabilities $50,221 $46,096 Long term liabilities $0 $0 Total liabilities $50,221 $46,096 Paid in capital $18,299 $18,299 Retained earnings ($34,743) $15,945 Earnings $50,688 $123,019 Total Capital $34,244 $157,246 Total Liabilities and Capital $84,466 $212,760 Net worth $34,244 $157,264 Implementation timetable For implementing all the business operations and tactics, Xenia Boutique has made implementation time table. Time tale includes all the business activities i.e. setting up office, business plan completion, developing website and appointing of personnel. Implementation time table for Xenia Boutique is given below: Activity Starting date End Date Manager Concerned Department Business plan formation 1/7/2017 1/11/2017 Marketing Manager Marketing Department Office set up 1/11/2018 1/2/2018 - Owners Website development 1/2/2018 1/5/2018 Managers Information Technology department Hiring of the people 1/5/2018 1/7/2018 HR manager Human resource department References Cool, K., Schendel, D., (2010), 'Performance differences among strategic group members', Strategic Management Journal, 9(3) , pp. 207-223 Dant, S. 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