Creating a Corporate Image of Comfort Apparel - Research Paper Example

PROJECT PROPOSAL Planning for the new company Company: COMFORT APPAREL Title: Contact person: Telephone: Fax: Executive Summary Comfort Apparel is a start-up company that will sell high quality school kits, hats, shirts and sweatshirts. Comfort Apparel will be located in Canberra, Australia, which is a popular town since it is one of the biggest cities in the world. The initial goal is to establish one business with potential plan to reach a sizeable market and build a brand name that can act as a marketing tool. In turn, we expect to serve a large market segment so that we can meet our expectations and at the same time delivering quality products to the customers. Table of Contents Executive Summary 2 Introduction/ Background 4 Overall aim and purpose 5 Objectives 6 Outcomes 7 Outputs 7 Outcomes 8 Impact 8 Approach and methodology 8 Project management tools 8 Resources 10 Requirements 10 Use of funds 10 Income statement projections 10 Cash flow projections 11 Risk 11 Potential risks 11 i.Nature of business. 11 ii.Future Potential in Business. 12 iii.Gestation Period 12 iv.Terms of Credit and Collateral Requirement 12 Risk management 12 Risk management process 13 1.Identifying the risk. 13 2.Analyzing and evaluating risk. 13 3.Treating the risk. 13 4.Developing and reviewing your risk management plan. 13 Recommendation/Conclusion 14 References 15 Appendix 16 Introduction/ Background Comfort Apparel will be located in the city of Australia; Canberra. Our company will be focusing on segments that require the products we offer. The nature of our business will be retail, selling at retail. However, we will be selling fashionable shirts and sweatshirts in a wholesale to institutions such as colleges whenever they place an order with our company. The main purpose of selling in retail is to ensure that we reach all classes of customers in our market segment. We intend to focus on schools as our main target. Besides, we are planning to apply for short contracts with colleges and universities that are within the city. This will be our short term strategy as we plan to introduce various promotional tools in our company (David, 2013). Overall aim and purpose The main aim of our new company is to create a corporate image that will position the company well on the market. Because of the high competition in the market, it is essential for the business to create a positive image that will convince customers to buy its product. Our team suggested that, we can create a positive image by being concerned with the environment. The company can do this through participation in corporate responsibility work. However, corporate responsibility is compulsory in other countries depending on their level of the economy (Best, 2013). The Comfort Apparel Company will not involve in any business apart from the one that has registered. In addition, the company will not employ unspecialized employees because we require people who are specialized in certain fields. This will facilitate the provision of high quality services. Objectives It is essential for a new company to have clearly stated business goals so that they can be able to achieve its desired objectives. The objectives that are SMART (Specific, Measurable, Aligned, Realistic/Relevant, and Time-bound) can easily be achieved. Objectives can be set in all the departments or areas of the business depending with the nature of the management (Hamann and Gillespie, 2013).  The smart objectives are; Specific: goals of Comfort Apparel Company are specific because the information provided is remarkably clear to all parties that are concerned. All the employees know the main target of the company and means that is used to realize the dream. Measurable: all the goals we have set for Comfort Apparel Company is measurable. The management of the company has written down all the goals for the company. It was necessary for the company to benchmark their performance and focused on how to achieve the expected results. Achievable: all the goals that are planned to be completed were clearly identified. It is essential to identify the goals that the company is targeting and understanding the barriers that are likely to be faced. As a company, we have established the plans which will be used to overcome the barriers. The key barriers to our business are the competitors. The competitors in this field are many; however, we have set various strategies for dealing with these challenges. Realistic: all the objectives set are achievable. Many organizations fail because they set objectives that are unrealistic or too daunting to accomplish. This is not the case in the Comfort Apparel Company because all the goals that were set were shared with all the parties in the company starting from junior employees to senior management of the company. Furthermore, the set goals were shared with professionals who gave professional advice on how to achieve them in a timely manner. Time scaled: all the goals that were set had the timeframe; deadline for achieving them. This is important because the managers will know when to implement and when to benchmark the results against the expected results. Setting the deadline helps in controlling the resources that are required during the implementation process (Appendix, table…iv) Outcomes Comfort Apparel Company had to recommend various changes and improvement of programs depending on the level of the project results that was achieved during the implementation. To handle this effectively, the project results were divided into various types. These include; a) Outputs b) Outcomes c) Impact Outputs The outputs comprise of the results that was felt immediately after the implementation process. In our company, the output is the training of marketers and the group that were conducting the market research. This raises questions as to whether the marketers were trained well, were they effective in the marketing of the clothes provided by the company etc. Outcomes These are midterm results. They are usually referred to as midterm results because they cannot be seen immediately after the completion of the project. In Comfort Apparel Company, the outcome was impressive since many potential customers were willing to purchase school kits, hats and shirts. Impact This was the final result that is normally realized on a long term basis. The Comfort Apparel Company impact is seen through its performances. The competitiveness of the firm in the market can be considered as an impact of the company after a long struggle through promotion and other factors that can position the company well in the market. The image of the company can be achieved in the long term basis. Approach and methodology Project management tools Project approach is a vital element for the success of any company, whether the company is an ongoing business, or it is a start-up business. The success of the project needs to be monitored by splitting up into individual phases so that each phase provides functionality and payback for the customer. We had to developed several steps to ensure that the solution to possible obstacles are developed efficiently (Randall and Gibson, 2013). To be effective in the application of approach and methodology, adoption of project management tools is essential. Some of these tools include; A work breakdown structure and a responsibility matrix. This is a tool that can be utilized in planning work in an effective and efficient way. The WBS can be utilized in the following ways. Firstly, the technique helps in reducing the complicated activities to a collection of task that can be overseen. Also, the tool can be utilized in allocating resources to tasks that are already specified. Finally, WBS is essential in monitoring and tracking the process to ensure smooth management of the business. (Refer, appendix, table…..iii) The milestones- this is management tool that is used to detect plans that are not effective. In the company, we utilized milestone to establish and detect the marketing strategies that are not profitable. This is vital because the management will be able to notice projects that are successful and those that do not work. Time plan – this has been one of the key tools for the Comfort Apparel Company. It is crucial to consider time of doing something. It is, therefore, necessary to allocate time to certain project with enough resources. Resources- resources can only be managed through using them according to the initial plans of those resources. Resources Requirements This is the plan resources that are expected to be used in the company. The estimate of resources and the capital requirement was a $ 300,000 to get the business off the ground. This capital is planned to be raised in all sources of capital such as long term loans, shareholders' capital, and other sources that will be available. Use of funds According to the laid plan, the funds are accepted to be used in renovations, construction of fitting rooms, lighting, sales counter and capering. Any extra amount will be used to service various expenses such as marketing cost, rent and wages. Income statement projections According to our project proposal, we expect the income of $ 300,000 through sales, for the 1st and the 2nd year, and in 3rd year we expect an increase of $ 50,000. Also, the projections show that the gross profit is expected to be 60%. Entire managers are working hard to ensure that the expenses are contained in the required level, to avoid losses. In addition to this, marketers need to be trained thoroughly so that they can market the product extensively in the market. In this way, the company will generate profit beyond the expected limit. Cash flow projections This is the most sensitive part of the business; however, we expect to collect immediate payment from customers so that the problem of liquidity will be solved. The cash flows will demonstrate our ability to cover bills in a timely manner. Risk Risk management is an essential part in any organization because of the risks that are exposed to the company. Business organizations face various risks, and if not given the required attention, it can cost the company. Some of the risk facing the Comfort Apparel Company comprises of credit worthiness calculation, determining the correct rate of insurance and determining the length of product’s warranty (Thamhain, 2013). Potential risks i. Nature of business. A loan is one of our sources of capital. Lenders are not comfortable with new business. They are not ready to lend to new companies because it is not easy to established credit worthiness. Financial institutions have to view the performances of the borrower's business before making a decision on lending ii. Future Potential in Business. The nature of our business is not convincing enough because predicting its future is not easy. This is because of competition that is in the market. Many companies are already offering what the Comfort Apparel Company is planning to offer. iii. Gestation Period  This is the period it will take Comfort Apparel Company to pick in terms of business. Will it require the massive promotion in order to attract the rest of potential customers or the market is readily available? This is also a factor to assess by investors who will invest in the company. iv. Terms of Credit and Collateral Requirement The necessary collateral that is required by lenders before lending might not be available in the company. Companies seeking credit facilities from the financial institution must provide collateral so that they can access loans (Joshi, Cahill, Sidhu and Kansal, 2013). Risk management All the above risk can be managed by having a detailed plan on how to deal with the cash flow and debt problem. Top create an effective management risk plan. It is vital to use the risk management process to ensure all the details are considered (Bolton, Chen, Wang, 2013). The risk management process is summarized as shown in the next chapter. Risk management process 1. Identifying the risk. Risk affecting the business varies depending on the size of the company. However, there are common risk that affects the business regardless of the size and nature. These risks include; legal risk, financial risk, strategic risk, operational and environmental risks (Ratnovski, 2013). 2. Analyzing and evaluating risk. When all the possible risk has been analyzed, it will be necessary to evaluate each of them by using a scale that can rate the risk basing on; The likelihood of occurrences The consequences of it occurring (Refer to appendix table….i) 3. Treating the risk. This is an extremely vital area of risk management. There are risks that call for the immediate actions while others can be treated later. However, there is a challenge in deciding which risk is to be treated first. In addition, managers need to consider key factors such as; Method of treatment Benefit of treatment People responsible or treatment Likelihood of success Cost involved 4. Developing and reviewing your risk management plan. This is the final stage whereby all the factors should be put into considerations. Some of the factors to be considered are; Level of risk Required resources Time frame of implementing the strategy (refer to appendix table….ii) Recommendation/Conclusion In conclusion, the proposed project requires close monitoring to ensure that all the necessary factors are considered. There should be clear procedures especially for the implementation stage. New companies face financial problems because they depend on the capital from shareholders alone. It is a problem raising capital through loans because lenders are not willing to lend to new companies. It is, therefore, essential to develop a plan of raising capital to avoid problems of liquidity in the future. References Bolton, P., Chen, H., & Wang, N. (2013). Market timing, investment, and risk management. Journal of Financial Economics. Ratnovski, L. (2013). Liquidity and transparency in bank risk management. Journal of Financial Intermediation. Randall, D. M., & Gibson, A. M. (2013). Methodology in Business Ethics Research: A Review and Critical Assessment. In Citation Classics from the Journal of Business Ethics (pp. 191-211). Springer Netherlands. Hamann, D. L., & Gillespie, R. (2013). Strategies for teaching strings. Oxford University Press. Thamhain, H. (2013). Managing Risk in Complex Projects. Project Management Journal. Best, R. J. (2013). Market-Based Management: Strategies for Growing Customer Value and Profitability-6/E. David, F. R. (2013). Strategic Management: Concepts and Cases-14/E. Joshi, M., Cahill, D., Sidhu, J., & Kansal, M. (2013). Intellectual capital and financial performance: an evaluation of the Australian financial sector. Journal of Intellectual Capital, 14(2), 264-285. Appendix Table...i Risk Management Table……ii RISK MANAGEMENT PROCESS Risk Management Process Table…..iii WORK BREAKDOWN STRUCTURE WBS ELEMENT Table…IV SMART OBJECTIVES Read More