need answer for question

1Assignment Topsheet
Your Name:Ziyad Nasser Alkasb
StudentID:1722906
Unit Title: MAR015-6
Unit coordinator’s name:P.PAUL BURNS ……………………………… Submission due date:8-12-19
Assignment Title: Entrepreneurship and Small Business Management
Signature:Ziyad Nasser alkasbi …………………………………………………………….Date—8-12-2019
2
Entrepreneurship and Small Business management.
Introduction
The establishment of business requires one to have a thorough understanding of
entrepreneurial skills in the economy. An entrepreneur is a person who is a risk-taker, openminded, disciplined, have confidence, competitive, and creative (Kozubíková, Dvorský, Cepel &
Balcerzak 2017). Business management requires determination and prudent decision making
process. Before setting up business operations, an entrepreneur needs to carry out a market
survey to identify a niche and then develop a product that meets consumers’ expectations in the
economy. Customers prefer high quality product and services; thus, an entrepreneur should strive
to provide high quality services that as per customers’ expectation. The report focuses on the
procedure for formulating the business model in the economy for business operations. The model
provides a comprehensive overview of resources, financial plan, marketing mix, and plan to be
used to successful business operations. Model test creativity, innovation and understanding of the
financial process in the economy to enhance better performance
Business Description and Market Competitors
Jadin Online Fashion Boutique
Online Fashion Boutique presents high fashion garments that fit customers around the
world. It is an online shopping mall where users can access new fashion and makes an order. The
order is delivered within seven days from the day it was ordered. The information indicates users
can create an account with our website for them to access high-end fashions. It provides a
platform where the customer can access, analyze, and sample product that meets their
expectations. The platform offers an opportunity to inspect product features, and it has a warrant
to the customer as a means to create trust. The analysis of the information indicates the company
3
aims to offer home delivery to the customers at their convenience. The company focus on the
preference of consumers to provides high quality services on a timely basis. It ensures that the
customer is satisfied with the services offered. Advert of technology has made people shift their
shopping patterns to online platforms. The platform provides the product at affordable prices
with free delivery to premises. The company aims to focus on one line of business production as
its strategic approach, which will give it competitive to other existing companies that couples up
with other activities.
According to Polo Peña, Frías Jamilena, Rodríguez Molina, & Rey Pino (2016) observes
that online market has gained moment in the modern era where many companies are shifting
from stalls to explore new market in the social media. There is a large segment of consumers
who spends a lot of their time online to analyze products from different companies. Many
companies are exploiting online trade from instance Alibaba.com, Walmart Inc., Bestbuy.com,
Amazon.com, Ebay.com and Flipkart.
Value prepositions and target market segment
Jadin Online Fashion Boutique has an excellent plan as a means to value to its business
operations. The main focus of the value proposition for the company is outlined as follows.
Offer Free shipping: It is a plan envisioned in the operation plan to ensure that the customer does
not incur any cost of business operations in the economy. Free shopping aims to create incentives
for the customer who is interested in the product online, and they need them.
The company plan to put strong tracking of order in place: Tracking aims to make a follow-up of
the orders of the consumer to ensure that they are delivered to the customer at their premises. It
also helps to handle any problem in case they arise after the closure of a business deal.
4
The company provides a 365-day return policy: It is a policy that acts as a warrant on the product
sold to the customer. It aims to assure the customer that they are dealing with genuine products.
Provision of gift wrapping and coupon codes: It is an approach that aims to induce more selling
to the customers in the economy.The market segment for the business is young women and men.
It focuses on recent fashions that are liked by young people. Sense of the fashion ensure that the
company can deliver high value in the organization.
Marketing plan
Marketing plan provides a strategic approach for the management of the business
operations. It helps develop a mechanism to increase awareness of the product in the market.
There are different approaches the company will use to create awareness of the product to the
customers. According to Ferreira (2017), the marketing plan aims to increase sales in the
organization and makes the company competitive. The company plans to use online social media
for advertising its product to other people on the market. The company can engage in activities
that enhance the reputation of the company’s performance. It advertises its product through the
use of social media platforms. It will use Instagram, Twitter, Facebook, and LinkedIn. Sharing of
the apparel on social media makes the customer aware of the existing products.
Once the product is launched, then the company will use the 4ps of the marketing mix to increase
awareness.
Products of the company will entail Apparel lines: Herr Frau PF Line, Hocken, Catherine
the Great, Tosca, Vince, Twelfth Street, Weekend MaxMini, and Trina Turk. The Wardrobe
accessories offered in the company include Lint Brushes, Tosca Laundry Soap, Stylist-in-a-box,
Sachets, and Hangers. Fashion accessories: Local designer jewelry, Belts, Gloves, Scarves, Ilux,
and Tanjane Lingerie.
5
Place: The product will be accessed online.
The price of the product will be affordable and based on the quality of the product offered.
Promotion: The Company uses social media for advertising its product to the majority of the
customers that access online.
The company has strategies put in place to expand its business operation to a large geographical
area to increase the level of profit earned from business operations.
Operational Plan
The operational plan provides strategies to put in place ensure quick delivery and
attending the online customers’ inquiry. The company has set the autoreply system on the
website where it directs customers based on the questions provided. The system answers all
queries and issues raised by the customer in the economy. It has a system for tracing transaction
code; hence, any issue that arises the company can access and assess the issue for immediate
actions. The company has put in place an efficient supply system that notifies the person in
charge of apparel for any successful order made by the client. The analysis of system ensures the
organization has put in place a mechanism to ensure all operations are done according to laid
down procedures. It has an enhanced monitoring system to examine all operations in the
organization for appropriate actions. The management of the company requires a mechanism to
ensure all process is done ensure.
Resources
The company does not have premises for operations, but it has connections with the
manufacturing company where it connects the seller and the company. Once the customer has
made an order, the company notified the required authority to make arrangements for delivery to
the customer to place want the product to offer.
6
It has adequate personnel for delivery. It has employed many people who ships product to place
where the customer has an order.
It has vehicles for delivery of large loads to the respective premises of the client. It has a system
to monitor inventory in the organization and ensure all processes are done according to laid
down procedures. The company has developed an efficient portfolio management system. The
system provides that all means are done according to laid down procedure for transparency
Financial plan
Pro Forma Profit and Loss
Sales
Direct Cost of Sales
Total Cost of Sales
Omani
Rial
Year 1
513503.00
204820.00
204820.00
Omani
Rial
Year 2
609402.00
239896.00
239896.00
Omani
Rial
Year 3
630937.00
249600.00
249600.00
Gross Margin
Gross Margin %
308683.00
60.11%
369507.00
60.63%
381337.00
60.44%
Expenses
Payroll
Advertising
Depreciation
Amortization – Startup Costs
Bank Service Charges
Dues & Subscriptions
Education & Training
Insurance – Workman’s Comp
Insurance – property & liability
Interest Expense – LT Loan
License & Permits
Maintenance – Office
Marketing and PR
Miscellaneous
Payroll – Charges
Postage & Delivery
Printing & reproduction
Prof Fees – Accounting
131000.00
4800.00
4889.00
5500.00
480.00
600.00
1200.00
3372.00
6204.00
4716.00
110.00
2400.00
9600.00
3600.00
797.00
600.00
1200.00
1500.00
137500.00
4800.00
4889.00
5500.00
480.00
600.00
2000.00
3600.00
6300.00
4716.00
146000.00
4800.00
4889.00
5500.00
480.00
600.00
2000.00
4000.00
6500.00
4716.00
2400.00
10000.00
3600.00
800.00
600.00
1200.00
1500.00
2400.00
10000.00
3600.00
800.00
600.00
1200.00
1500.00
7
Prof Fees – Legal
Rent
Repairs
Security
Supplies – Office & Store
Travel & Entertainment
Telephone / Internet Access
Utilities
Payroll Taxes
Employee Benefits
Other
1000.00
36000.00
600.00
348.00
4200.00
8500.00
1440.00
2100.00
720.00
9000.00
2400.00
500.00
36000.00
600.00
350.00
4200.00
10000.00
1440.00
2100.00
10890.00
9100.00
2400.00
500.00
40000.00
600.00
350.00
4200.00
10000.00
1440.00
2100.00
12015.00
10100.00
2400.00
Total Operating Expenses
248876.00
268065.00
283290.00
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
59806.00
64696.00
6753.00
15916.00
101442.00
106331.00
5138.00
28891.00
98047.00
102936.00
3489.00
28367.00
Net Profit
Net Profit/Sales
37137
7.23%
67412
11.06%
66191
10.49%
It provides an analysis of the profit expected to earn from business operations in the
organization. The management requires adequate policies to ensure all mechanism are put in
place to ensure all strategies are set aside for the benefit of business operations.
8
References
Ferreira, J. N. P. (2017). Marketing Plan of the UCInova Junior Enterprise (Master’s thesis).
Kozubíková, L., Dvorský, J., Cepel, M., & Balcerzak, A. P. (2017). Important characteristics of
an entrepreneur in relation to risk taking: Czech Republic case study. Journal of
International Studies, 10(3), 220-233.
Polo Peña, A. I., Frías Jamilena, D. M., Rodríguez Molina, M. Á., & Rey Pino, J. M. (2016).
Online marketing strategy and market segmentation in the Spanish rural accommodation
sector. Journal of Travel Research, 55(3), 362-379.
Q1. What is the core value proposition of your proposed business model? How is your value proposition
articulated through the different components of your business?
A. Brief description of your business? (6 lines).
B. Core value proposition? Why?
C. Articulated the Marketing Mix?
D. Articulated the operations expressed the business model?
E. Core value proposition Why? Justify? for example (Healthy, Quality, Safe, Fast, Pure, Clean, On
time Fresh Natural).
F. Diagrams
Operations
(Location,
Décor)
Packaging (Eco
Wriendly)
Product (Low Fat)
Brand Identity
(Color
Pink(Healthy).
Nmn lann
CORE VALUE
PROPOSITION
Q2. What are the significant risk inherent in your business Model? How would you Mitigate them?
A. Brief overview of Business Model? Make a Table for (Financial, Competitors, Customer, Legal,
Regulatory).
B. Identify risks? Probability – Impact Matrix?
C. NVC Frame work?
First
-You and Your Business Idea-
New to the
Market
Timer
A. Adoption
B. Accessible
Target Segment and Value Proposition
Product Design
Price Acceptance
Delivery
Brand Name
Marketing