Introduction
The creation of a new business venture involves different stages. All of these stages constitute a cycle of growth in the total lifecycle of the new venture. Business ventures are always built with long-term objectives. Different levels of business operations are required for achieving the long-term objectives. Suitable business plans have to be formulated for managing the business successfully at each stage of the business growth cycle.
The business venture
Thai-Lay Fashion Company is a well-established garment manufacturing company in Hong Kong. As a part of the expansion strategy about marketing facility, the company intended to start a new business venture in the UK. The London garment market is exhibiting a growing trend of retail outlets specially designed for the marketing of companies’ products. Thai lay identified the opportunities in the market and planned to implement a new business venture in the market.
Business plan for the new venture of Thai –Lay: The business plan is intended to provide an overview of different aspects of the new business venture that has to be followed by the company. The contents of the business plan for the new venture are discussed below.
Management: The new business venture should be properly managed by efficient managerial personnel in the organization. The day-to-day affairs of the new venture should be under the control and direction of the managing director. Departmental managers should be appointed for the proper management of each of the departmental units of the business.
Procurement of financial resources
Setting up a new business firm requires adequate financial resources for procuring the infrastructural facilities and other resources. Thai Lay wants to procure adequate resources for carrying out the business operations in an uninterrupted way. Budgeting strategies should be adopted by the company for identifying the requirements of financial resources and their economical sources. Through budgeting, the financial resource requirements of the business in a particular period can be identified. It will help to identify the sources of capital in time. Financial planning is helpful for better allocation of financial resources.
Product Strategy: The product marketed by the new venture should be garment products of superior quality with trendy designs. It should be an exclusive showroom for premium garment products of all categories.
The competition: The market size of garment products in London is very wide with a large number of competing business firms. In the industry, there exist intense competition between well-established business firms. Thus to compete with the existing business firms, a competitive strategy such as follows up of customer loyalty schemes, discount pricing, etc should be adopted by the new venture.
Marketing strategy: Cost leadership marketing strategy should be adopted by the new business for competing with the existing business firm. Through the adoption of advanced production techniques, economical production should be ensured. This will help to follow a cost leadership strategy in the market in terms of quality and price of products.
Sales plan: The sales should be carried out through established retail outlets. Well-trained sales personnel should be appointed in the retail outlets for providing better customer service through which better customer relationships can be developed.
Focus strategy: The creation of customer loyalty is essential for the long-term existence of the business venture with profitability and stable market share growth. The business firm is required to identify the continuously changing needs of targeted customers. Periodical market research will help identify the changing needs and interests of the customers in the market.
Promotional strategies: Effective advertising strategies have to be followed the attracting customers. For sustaining the customers for the long term through the development of customer loyalty, attractive and efficient customer servicing have to be followed by the business firm.
Procurement of human resources: The new business venture has to follow appropriate methods for procurement of adequate human resources. The procurement of talented and competent human resources is critical for the well functioning of the organization.
Growth plans: A harvest strategy can be adopted during the growth stage of the business. “A slowdown in growth is the most common reason to plan a harvest, but there are several reasons why an entrepreneur might want to gradually get out of a once-promising business. Labor problems, regulatory changes, shifting consumer tastes, higher interest rates, or any major alteration in one of the business’s underpinnings may suggest that harvest time is nearing.” (Henricks 1997, p.1).
Change management
Change management is a crucial function of business firms in the garment market. It involves modifying the policies and operations corresponding to the changes in the business environment and customer tastes. “Leading Change and Organizational Renewal will help senior managers and executives to better comprehend the forces of change, and demonstrate how to better manage their organizations for long-term viability and success.” (Executive Education: Leading Change and Organizational Renewal. 1999).
Organizational control: Control over financial resources and inventory has to be assured to maintain organizational control. (Developing the Entrepreneurial Enterprise/ Organizational Growth).
Time plan for the project of setting up of new business venture
The total project for the establishment of the new business venture is estimated to be completed within 8 months. Each activity in the project is required to be completed within this time limit. The estimated time for completing each stage of the operation is described below:
- Month1: Acquisition of licensing: This is the first stage in the project. The operating licensing has to be acquired within three months.
- Month 2: Acquisition of land and building: In this stage, steps for the acquisition of suitable building premises are followed. The acquisition process should be completed within two months.
- Month 3: The market research for identifying the features of the market and customers is carried out this month.
- Month 4: Designing of the building premises and acquisition of infrastructural facilities.
- Month 5: Recruitment of human resources and build trading agreements with the supplier chains.
- Month 6: Training to the staff and motivation activities
- Month7: Furnishing the premises and procurement of inventory.
- Month 8: Starting the business
Long term operation plan of the business firm
On a long-term basis, the new business unit of Thai Lay aims to achieve a 25 % market share in the London garment market. For this the time plan for the business is described below:
- First-year: Entry in the market with break-even sales.
- The second-year: Increasing the market share by over 5% through appropriate marketing and customer relationship strategy.
- Third Year: Increasing the market share by 5%. Diversification policy has to be followed this year for attaining higher market growth. Thus a total market share of 10 % has to be achieved at the end of the third year.
- The fourth-year: Increasing the market share by 10 % through intensive marketing strategy. This can be achieved through starting new business units in more business centers. Thus a total market share of 20 % can be ensured at the end of the fourth year.
- The fifth-year: In the fifth year, a total market share of 25 % has to be achieved by the business firm. This can be achieved through follow-up of product diversification and attractive customer servicing.
Conclusion
A new business venture of Thai lay has a great market opportunity in the London garment market. The company should follow each of the steps discussed in the business plan accurately for ensuring better market entry with an adequate customer base. A working CRM system should be implemented in the business firm to develop strong customer relationships. Through this, the new business firm can achieve business goals and objectives within the targeted period.
Bibliography
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