Business Plan Assignment: Eco-Friendly Clothes By FAX

Question

Task: The objective of this individual assessment submission is to learn how to develop your own business idea, complemented by research and observational insights that detail why the need is compelling. Please submit a 1500-word business report of your idea, a detailed business model (BM) canvas, discussion of the interrelationships among the BM components that are essential to success, critical risks and assumptions, and overall feasibility. The business model canvas must be discussed in the report and included as an appendix.
The assessment criteria are detailed below.
Assessment Criteria:
1. Effective explanation of the customer/market problem that needs solving and/or the reason the innovation is required. (15%)
2. Persuasive argument of the customer/client benefits to be generated by the idea (10%)
3. Discussion of the proposed business model (15%)
4. Identification and discussion of the key interrelationships in the BM that will support success of the idea (10%)
5. Critical success factors to be managed during execution of the idea (15%)
6. Identification of critical risks and assumptions (10%)
7. Evaluation of the overall feasibility of the idea (15%)
8. Quality of written submission, minimum 6 peer-reviewed journals, and APA referencing format (10%).

Answer

Executive summary
The report on business plan assignment takes into consideration the business plan for the new start upon business. The company of FAX will be mainly T-shirts with captains that are trendy and are loved by the youth. The main purpose of the business outlined in the segments of business plan assignment is to attract the attention of the customers towards the good initiates of a sustainable business approach and thus supply them with the best quality products in reasonable quality. It is identified that the recent degrading environment issues will be highlighted so that the customers can contribute to healing the planet with their small contributions. It is evaluated the business of FAX will be approaching numerous investors for the collection of revenue.

Introduction
The adaptation of the innovative business is considered to be beneficial in the recent times. The competitive business environment is making it difficult for the new business organization to acquire the desired market position by them. The report on business plan assignment takes into consideration the idea of starting a successful business in a competitive market environment. The use of the proper execution of a stabilized business model will be done along with the proper identification of associated risks to the company. 

Product and services
The business of FAX clothing is willing to start their new stores of eco-friendly clothes. The materials of the clothes will be organic making it sustainable to use. The introduction of innovative ideas is considered to be beneficial in attracting the attention of the targeted customers in an effective manner. The use of natural fibers will be used as a raw material for the clothes. The business will be targeting the younger generations as they are much more concerned about the decreasing environment quality in the recent times (Battistella et al., 2017). The company will be mainly T-shirts with captains that are trendy and are loved by the youth. The use of motivational quotes will be used so that the youth are encouraged to save the planet. The company is a sole propertied and will be located on Oxford Street in London. The location will be ideal for attracting youth due to the presence of numerous colleges and universities nearby.

Purpose of the product based on the current situation
Currently it has been noticed in the business plan assignment that the concern about saving the planet earth has been profound among the people. The increasing rate of global warming is concerning factors to the people. In this scenario the execution of innovative approaches such as using natural fabrics like jute for the formation of the T-shirts is considered to be an excellent idea. The cost of the product will be kept nominal as the business is willing to taking the youth from the middle and lower-income groups (Briandana & Mihardja, 2020). The main purpose of the business stated in this business plan assignment is to attract the attention of the customers towards the noble initiates of a sustainable business approach and thus supply them with the best quality products in reasonable quality.

What are the customer benefits and organization objectives identified in the present business plan assignment?
The customers are beneficial to contribute towards environmental sustainability with their purchase of the products from the stores of FAX. The business is among to reduce the carbon emission with the use of natural fibers as raw material for their production. The products are affordable and serve the satisfaction level of the customers (Cantù, Giorgia & Tzannis, 2018). The good designs and comfort of the T-Shirts will be able to encourage the customers to purchase their products from the stores contributing to the elevation of its profit margin.

The objectives of the business of FAX are mentioned below within the business plan assignment:

• To provide tremendous satisfaction to the customers and enchase the satisfaction rate by 2.5% by the end of 2020
• To increase the employee's satisfaction rate and enhance the profit margin of the company by 25% in the next five years
• To expand the business in the global markets main targeting the countries like USA and Australia by the end of 2025

Proposed business model (BMC)
Discussion of BMC with supporting idea
Key Partners: This block of business plan assignment signifies that the business of FAX wills above any kind of partnership the company will be executing its services solely in the markets. The introduction of partners will increase the complexity of the business which is avoided in the initial stage.

Key activities: The business is concerned with the sale of eco-friendly T-Shirts which is having the ability to produces sustainable products with the help of natural fibers such as jute. 

Value Proposition: The core value that the company of Fax is willing to execute is satisfying the customers with sustainable products (Cosenz, 2017). This will at the same time enhance the knowledge among the customers regarding the protection of the environment. The recent degrading environment issues will be highlighted so that the customers can contribute to healing the planet with their small contributions.

Customer relationship: The Company will take up the initiatives if executing a strong bond with the customer social platform such as Face book, Twitter, and Instagram to create a strong bond with the customers in an effective manner.

Customer segmentation: Customer segmentation is considered to be the best in evaluating the correct promotional strategies. The products are most effective in attracting the customers belong to the younger age group (Franceschelli, Santoro & Candelo, 2018). The company of FAX will be targeting the male and females residing within the territory of the UK belong to the age group of 10 to 45 years for the sales of the products.

Key resources: The key resources of the business are categories under three broad categories. The physical resources of the company include the use of organic fibers. The use of jute to make T-shirts will be done by the business to attract the customers and make profits (Garidis & Rossmann, 2019). On the other hand, it is also clear on this business plan assignment that the employees are considered to be an effective source of profound resources. It is at the same time identified that the business will have a full copyright of the products produced by the company FAX. 

Channel: The use of social sites will be used by the marketing team of the company to attract the attention of the customers. The use of YouTube channels are used to promote the products in an effective manner.

Cost structure: Financial attributes of the startup business is considered to be effective in executing the services in an effective manner. The use of the proper cost analysis is done within the context of business plan assignment and thus it is estimated that the budget for the project will be around $12000. It includes the employees cost, cost of raw material as well as production cost is incorporated.

Revenue Steam: The business of FAX will be approaching numerous investors for the collection of revenue (Kania, Lestari, & Dhewanto, 2017). It will also take loans from the banks and the entrepreneurship will be using their own savings for the successful execution of the business within a competitive business environment.

Critical risk and assumption
Following are the critical risks and assumptions based on the case scenario of business plan assignment:

• Lack of knowledge about the market: The business of FAX will be facing issues in capturing the markets as they are new and are lacking proper knowledge of successful business execution strategies (Malmström & Johansson, 2017). The competitiveness in the markets had a huge hold of the market cover and thus make the successful execution of the product difficult.
• Poor initial investments: Limited capital investment of the business is also a major threat it has been evaluated that the company has to face issues in taking up new approaches due to their limited monetary funds (Zarefard & Cho, 2017).
• Lack of proper marketing abilities: As the marketing team of the company is not efficiency thus the executing of the marketing approaches might not be effective in attracting targeted customers.

Evaluation of feasibility
[Refer to the appendix]
It is evaluated in the business plan assignment that business is new to makes thus has to face difficulties in recent times. Thus, it can be evaluated that the experiences of the entrepreneurs and their skills are considered to be effective in the execution of the strategies in an effective manner (Widyasthana et al., 2017). It is essential for the marketing team to develop a strong relationship with the customers. The evaluation of the financial aspect is mandatory. The proper allocation of the cost as per the standard market prices is needed for the successful execution of the business.

Conclusion and Recommendation
Thus, it can be concluded from the overall analysis on business plan assignment that the business of FAX will need to develop a strong approach to identify the market needs. The idea of manufacturing and selling of products with natural fibers is considered to be effective. It has been evaluated that the concept of sustainable business execution in a profound manner. It has been evaluated in the present context of business plan assignment that the use of strong customer’s values is considered to be the key to success for the business.

It is therefore evaluated that the adoption of the following recommendation can be beneficial for the business to grow in the competitive market.

• The increments of the product range and including more products will be beneficial for the business to attract a wide range of customers.
• The use of the promotional activities such as buy one and get one offer will be helpful to attract the customers.

Reference list
Battistella, C., De Toni, A.,F., & Pessot, E. (2017). Open accelerators for start-ups success: A case study. European Journal of Innovation Management, 20(1), 80-111. doi:http://dx.doi.org/10.1108/EJIM-10-2015-0113

Briandana, R., & Mihardja, E. J. (2020). CONSUMER JOURNEY AND SOCIAL MEDIA: THE CONTENT MANAGEMENT OF E?CATERING MARKETPLACE PROMOTION MEDIA FOR SME CATERING SERVICES BUSINESS INDUSTRY. Business plan assignment International Journal of Communication Research, 10(1), 83-91. Retrieved from https://search.proquest.com/docview/2391220634?accountid=30552

Cantù, C., Giorgia, S., & Tzannis, A. (2018). Exploring the role of business relationships in start-ups’ life cycles. The IMP Journal, 12(3), 519-543. doi:http://dx.doi.org/10.1108/IMP-07-2017-0037

Cosenz, F. (2017). Supporting start-up business model design through system dynamics modelling. Management Decision, 55(1), 57-80. doi:http://dx.doi.org/10.1108/MD-06-2016-0395

Franceschelli, M. V., Santoro, G., & Candelo, E. (2018). Business model innovation for sustainability: A food start-up case study. British Food Journal, 120(10), 2483-2494. doi:http://dx.doi.org/10.1108/BFJ-01-2018-0049

Garidis, K., & Rossmann, A. (2019). A framework for cooperation behavior of start-ups. Journal of Small Business and Enterprise Development, 26(6), 877-890. doi:http://dx.doi.org/10.1108/JSBED-04-2019-0125

Kania, R., Lestari, Y. D., & Dhewanto, W. (2017). Social innovation business model: Case study of start-up enterprise. Review of Integrative Business and Economics Research, 6, 68-75. Retrieved from https://search.proquest.com/docview/1949457150?accountid=30552

Malmström, M., & Johansson, J. (2017). Practicing business model management in new ventures. Journal of Business Models, 5(1), 1-13. Retrieved from https://search.proquest.com/docview/1933859037?accountid=30552

Widyasthana, G. N. S., Wibisono, D., Purwanegara, M. S., Siallagan, M., & Sukmawati, P. (2017). CORPORATE VENTURE CAPITAL STRATEGY FOR SELECTING START-UP INVESTMENTS IN INDONESIA USING AN AGENT-BASED MODEL: CASES OF A MOBILE APPLICATION START-UP, PAYMENT SOLUTION START-UP AND DIGITAL ADVERTISING START-UP. Business plan assignment Journal of Entrepreneurship Education, 20(2), 1-22. Retrieved from https://search.proquest.com/docview/2024440997?accountid=30552

Zarefard, M., & Cho, S. E., B.E.R.I. (2017). RELATIONSHIP BETWEEN ENTREPRENEURS' MANAGERIAL COMPETENCIES AND INNOVATIVE START-UP INTENTIONS IN UNIVERSITY STUDENTS: AN IRANIAN CASE. International Journal of Entrepreneurship, 21(3), 1-19. Retrieved from https://search.proquest.com/docview/2024745336?accountid=30552

Appendix: Feasibility analysis on the scenario of business plan assignment
Part 1: Business Idea Strength

Part 2 Industry related issues

Part 3: Target market and customers related issues

Part 4: Founder related issues

Part 5: Financial Issues

Overall potential

Summary: The business explored in the business plan assignment has the possibility to grow in the market of UK.