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Individual Assignment
Cover Sheet

Student’s name Semonè Pillay

Student number 201506896

Name of
Campus Damelin - Overport
Year of Study 2024 Semester 1st

Programme Degree Generic

Module
Module Name Business Management 1A
Code

Lecturer Richard Kilcullen

17 May 2024 Date
Due date submitted 17 May 2024

KEEP A COPY
Please note that it is your responsibility to retain copies of your assessments.

A CheckforPlagiarism report MUST be attached to each assignment submission.

DECLARATION BY STUDENT

I, the undersigned declare that:

• I have retained a copy of this assessment.

• I understand what plagiarism is and are aware of the Damelin’s policy in this regard.

• The work hereby submitted is my original work, gathered and utilised to fulfil the requirements of this
assignment except for source material explicitly acknowledged.

• I have not used work previously produced by another student or any other persons to hand in as my own.

• I have not allowed, and will not allow, anyone to copy my work with the intention of passing it off as their
own work.

Signature of Student Date

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Content
Page No

Cover Page 1
Plagiarism Report 3 - 7
Question 1 7 - 14
Question 2 15-16
Question 3 17
References 18
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QUESTION 1

1.1 WHY DO ENTREPRENEURS DO WHAT THEY DO?

The tough questions of what, how, by whom and for whom are skills an entrepreneur acquires to
craft quality products and services. To create consumer/ client/ customer satisfaction, the basic
rule of Business 101 needs and wants is applied. The process of forming and building something
of value from practically nothing, amid uncertainty, risks and having the grit to succeed against all
odds.
Starting a new business can go one of two ways failure or success, based on the individual,
factoring production to provide products and services, initiative, and risk takers harness profits.
Consequences for errors, miscalculations and judgment lapse leads to financial loss.
By knowing what drives entrepreneurs, assessing business opportunities and how they identify
them to enter the business world. (Barney et al., 2019: 305)

Creativity possesses fresh and innovative skills, addressing challenges in a business to stay
current and relevant.
Innovation drives improvement through a creative approach towards products, services, and
process developments.
Excellent at Identifying Opportunities beyond the boundless desires of consumers and the ever-
changing landscape of the environment/market.
Find, seize, and utilise opportunities are based on discovering natural resources, human capital,
financial assets, and entrepreneurial spirit, these are openings for personal benefit and typically
profit.
Entrepreneurs who initiate projects understand the inherent financial risks and potential for
failure. Bringing about change, growth and wealth in the economy is based on nations that triumph
and possess economies motivated by entrepreneurship.
Re-energising economies and creating jobs involves implementing strategies and initiatives to
stimulate economic growth, higher employment rates, increased productivity, and nurture
innovation.
Start, manage, Grow and Sustain are fundamentals in the upkeep of a Small Business.
Proprietors of business initiate and oversee its operations, strategically reallocating resources to
ensure profitability and foster expansion.
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1.2 WRITE A MINI BUSINESS PLAN FOR A PRODUCT OF YOUR CHOICE.

GENERAL COMPANY DESCRIPTION
Name: Paislee Lane

Vision statement:
To be a leading eco-friendly clothing retailer, offering sustainable and ethically sourced fashion that
empowers people to express themselves while protecting the planet.

Location:
Online Platform – www.paisleelane,co.za
Physical Address: 30 Meridian Drive, Umhlanga, 4319

Nature of the product in the business:

Retail Manufacturing and Tailoring

Primary of the product in the business:

Reimagining the classical Indian silhouettes mixed with contemporary Indian couture to craft
exquisite garments that celebrate modern Indian aesthetics highlighting modern twist on
traditional styles.

Current status:
Start-up.
History: Indian wear is vast and complex. Indian textiles have been prized for their intricate
designs, vibrant colours, and use of natural dyes. Within each fold lies the legacy of generations
of weavers, their stories whispered in exquisite patterns and vibrant hues. These were more
than simple cloth, but heirlooms waiting to be cherished but a form of art and deep cultural
expression. The sari, a draped garment, is considered a symbol of Indian culture and elegance
from different regions of India weaving unique embroidery styles, reflecting local traditions and
materials.

Legal form of organisation:

Partnership (Kimberley-Ann Pillay & Semonѐ Pillay-Sukhram)
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PRODUCTS AND SERVICES PLAN

Description of products and services:
Order standard or custom garment. Each garment has specific requirements according to the
type of article chosen, allowing the melody to be woven with the threads of delight allowing our
clients contentment that settles in the soul with every delivery.

Superior features to competing products or services:

 Unique functionalities: Features of your product or service offers that competitors don't. For
example, a smartphone with a superior camera or a music streaming service with exclusive
content.
 Enhanced performance: Your product or service performs a task better than the competition. For
instance, a laundry detergent that cleans clothes more effectively or a web hosting service with
faster loading times.
 Improved design: Your product or service is more aesthetically pleasing, user-friendly, and
efficient, setting you apart from competitors. This could be a sleek laptop design or an intuitive
mobile app interface.

Advantages relative to competing products or services:

 Research your competitors: Analyse their products or services, identify their strengths and
weaknesses, and understand their target audience.
 Identify your unique selling proposition (USP): What makes your product or service stand out?
Focus on the features and advantages that differentiate you from the competition.
 Quantify your advantages whenever possible: Don't just say your product is "better," back it up
with data or evidence. For instance, for 'more efficient,' highlight the outcome: 'Save time and
money with our 30% efficiency boost! Focus on customer benefits: Don't just list features,
explain how they translate into benefits for the customer. For instance, a "long-lasting battery"
translates to "enjoy hours of uninterrupted use."

Legal protection: Trademark Brand

Dangers of technical obsolescence:

Security Vulnerabilities: Outdated software often lacks critical security updates, making it
vulnerable to hacking and data breaches. This can lead to financial losses and reputational
damage.
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Compliance Issues: Regulations may evolve, requiring businesses to use up-to-date technology to
comply. Compliance is compulsory to avoid potential fines or penalties.
Compatibility Problems: Obsolete hardware or software might not be compatible with newer
devices or operating systems, creating connectivity issues, and hindering workflows.

Dangers of style obsolescence:

Reduced Sales: Consumers are more likely to be attracted to products with a modern and trendy
aesthetic. Obsolete styles might struggle to compete and lead to declining sales.
Brand Image Damage: A brand associated with outdated styles might be perceived as old-
fashioned or irrelevant, impacting its overall image.
Missed Market Opportunities: Failing to adapt to evolving trends can lead to missing new
customer segments and market opportunities.

MARKETING PLAN
Target Market Analysis & Ideal Customer
The global Indian diaspora aged 0 to beyond 100, value their cultural heritage and seek trendy
Indo-Western fusion wear for social gatherings and festivals.

How customers identify with the brand

Connecting with customers is our brand Identity and customer experience. Understanding the
missing link in the Indian fashion industry allows us to point out our customer's desires and where
we would fall short. Our brand story, mission, and values focus on quality and craftsmanship.
Evoking a ‘storytelling’ experience to inspire, uplift, and add a feel-good moment for themselves.
Indian identity goes beyond race, it’s a vibrant culture with diverse traditions like Diwali and its
beautiful clothing heritage, a rich tapestry woven from culture, traditions, and vibrant clothing
expressions ensures a picture-perfect moment for the Gram (Instagram)

How customers will be attracted:

Competitive pricing and promotions are tailored to customers. Special discounts are applied i.e.
sign up for newsletters, birthdays, and festive sales. Reward points are added to your profile.
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MANAGEMENT PLAN

Management team members and their qualifications:

IT department - Minimum A+ certification and experience troubleshooting hardware and software
issues.
Accounts department - bachelor’s degree in accounting and relevant certifications (CPA, CMA)
for complex financial tasks
Marketing Manager - bachelor’s degree in marketing, Communications, or a related field.
Inventory control specialist - associate degree in business administration or supply chain
management.
Merchandisers: An Associate's degree in Fashion Merchandising, Visual Arts, or a related field is
preferred.
Buyers: A Bachelor's degree in Business Administration, Fashion Merchandising, or a related field
is required.
Sales: A Bachelor's degree in Business Administration, Marketing, or a related field is strongly
recommended.

Plans for recruiting and training employees:

The Selection Process:
Screening Resumes and Applications: Review resumes and applications carefully to identify
candidates who meet your qualifications.
Conduct Interviews: Develop interview questions assessing skills, experience, and cultural fit.
Consider using a mix of behavioural and situational questions.
Background Checks: Conduct background checks on shortlisted candidates before making an
offer.
Onboarding and Training:
Welcome and Introduction: Develop a structured onboarding program that welcomes new hires,
introduces them to the company culture, and provides an overview of their role and
responsibilities.
Mentorship: Assign mentors to new hires for guidance and support during the initial stages.
Formal Training: Provide training programs specific to the role and the company's products or
services. This could include product knowledge training, sales techniques training, or software
training.
Continued Learning: Encourage a culture of continuous learning by offering ongoing training
opportunities, workshops, or online courses.
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FINANCIAL PLAN

Revenue projections for three years:

Average Selling Price (ASP) per Unit: R50
Target Market Size: 100,000 people
Estimated Market Share (Year 1): 0.5%
Estimated Market Share Growth (Year 2 & 3): 10%.
Customer Acquisition Cost (CAC): R20
Conversion Rate (Website/Store): 2%
Sales Projections | | |
Units Sold (Online & In-Store): | 2,500 | 5,500 | 12,100.
Total Revenue of Sales: | R152,000 | R357,000 | R705,000
Calculations:
Units Sold: We can use the Target Market Size and Estimated Market Share to
calculate the number of potential customers (Year 1: 100,000 people * 0.5% = 500).
Then, divide this number by the Conversion Rate to estimate units sold (Year 1: 500
customers / 2% conversion rate = 2500 units). This calculation is repeated for
subsequent years with increasing market share.

Expense projections for three years:

Cost of Goods Sold (COGS): | | |
Direct Materials (Inventory): | R62,500 | R137,500 | R302,500
Manufacturing/Production Costs (if applicable): | − | − | −
Operating Expenses: | | |
Rent & Utilities: | R24,000 | R24,000 | R24,000
Salaries & Benefits: | R60,000 | R72,000 | R84,000
Marketing & Advertising: | R20,000 | R25,000 | R30,000
Technology & Software: | R5,000 | R7,500 | R10,000
Office Supplies & Printing: | R2,000 | R2,500 | R3,000
Professional Fees (accounting, legal): | R5,000 | R5,000 | R5,000
Other Operating Expenses (specify): | R5,000 | R5,000 | R5,000
Total Operating Expenses: | R121,000 | R141,000 | R161,000
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Necessary financial resources:

Equipment and furniture
Inventory
Legal and accounting fees
Factory build/renovate.
Website development
Marketing and advertising
Business permits and registration
Office supplies and printing
Technology and software
Rent and utilities.
Salaries and benefits

Sources of financing:
Small Business Administration (SBA) Loans
Bank Loans
Venture Capital

QUESTION 2
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2.1 WHAT ARE THREE BUSINESS ENVIRONMENTS? DESCRIBE WHAT EACH ONE
CONSISTS OF.

Organizations operate within a complex business environment shaped by three key factors: micro,
market, and macro fundamentals. Fundamentals affected in an organization are as follows: micro
(internal factors like resources and capabilities), market (competitive landscape and customer needs),
and macro (economic, political, and social factors). (Barney et al., 2019: 305)

1. Micro-Environment (Barney et al., 2019: 305)

- Mission and objectives of the organisation
- The organisation and its functional management components, such as marketing
management or financial management
- Resources, such as human resources, capital, and expertise.

2. Market Environment (Barney et al., 2019: 305)

- Consists of consumers and their needs, purchasing power and behaviour.
- Suppliers
- Intermediaries
- Competitors

3. Macro Environment (Barney et al., 2019: 305)

- Technological environment
- Economic environment
- Social environment
- Physical environment
- Institutional-political environment
- International environment

2.2 Benefits of Planning (Barney et al., 2019: 305)

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- Provides direction.
- Reduces the impact of change.
- Promotes coordination.
- Ensures cohesion.
- Facilitates control.

Costs of Planning (Barney et al., 2019: 305)

- Create rigidity.
- Consumes management time.
- Formal plans may replace intuition and creativity.
- Could cause delays in decision-making.
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QUESTION 3

3.1 WHAT IS A VISION STATEMENT?

Vision serves as a guiding light for managers, prompting them to explore uncharted
territory and lead their organizations toward a promising future. It inspires hope and
motivates the organization. A strong vision compels managers to explore new possibilities
that propel their organizations towards a brighter future. (Barney et al., 2019: 305)

Future-Oriented: It describes the organization's ideal future state, not its current state.
Inspiring: It should motivate and excite employees, stakeholders, and customers about the
company's goals.
Clear and Concise: It should be easy to understand and remember, avoiding overly
complex language.
Unique: It should reflect the company's core values and what sets it apart from
competitors.
Provides Direction: A clear vision statement guides decision-making and helps ensure all
efforts are aligned towards the company's long-term goals.
Motivates Employees: An inspiring vision statement can motivate employees by giving
them a sense of purpose and direction in their work.
Attracts Talent and Customers: A compelling vision statement can attract talented
individuals who share the company's values and customers who resonate with the
company's aspirations.

EXAMPLES OF VISION STATEMENT

1. Amazon: "To be Earth's most customer-centric company where customers can find and
discover anything they might want to buy online." (Focuses on exceeding customer
expectations)
2. Avon: "To be the company that best understands and satisfies the product, service and
self-fulfilment needs of women globally." (Focuses on understanding and exceeding
customer needs)
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REFERENCES

1. An Introduction to Business Management - Barney Erasmus, Sharon Rudansky –

Kloppers, Johan Strydom – 2019, 11th Edition