1

Assignment On
Project Development of a
Business plan

Prepared By:
The Occult Power
2nd batch
Dept.of Management Studies

Submitted to:
Mr. Mohammad Asadullah
Lecturer, Dept. of Management Studies
Course code: MGT-403

Jahangirnagar University
Savar, Dhaka

LETTER OF TRANSMITTAL
August 23, 2015.
Md. Mohammad Asadullah
Lecturer
Department of Management Studies,
Jahangirnagar University.

Subject: Submission of Assignment on Project Development applied to Business

plan

Dear Sir,
With due respect, we would like to thank you for assisting us to prepare the
Assignment. This task has given us the opportunity to explore the activities of a
project development on the basis of project management. It was a great pleasure
for us to have the opportunity to work on this assignment. We endeavor our best to
come out with a good one.
We would be very happy to provide you with any clarification regarding the report.
Please contact with us if you have any query. Therefore, we pray and hope that you
would be kind enough to accept our Assignment and oblige thereby.
Sincerely Yours,
Dola Rani Dhar
Group: The Occult Power

Table
Page

of

Contents
number

Project
Management...

04
Steps
of
creating
a
Project
plan04
Business
Development.................................................................
....................................11
How
does
business
includes
all
this
aspects.13
Other techniques and skills involved in business
development.13
Sample Business plan of Friends Boutique Shop
14
Executive
Summary
14
Mission.
..15
Keys
to
Success

15
Company
Summary...
.15
Company
Ownership...
..15

Company
location
and
facilitation.................................................

.........16
Product..

.16
Competitive
Comparison.
16

Commercial
Viabilty..........................................................................
................................17
Sales
Program
...17
SWOT
Analysis
.19
Market
Segmentation.
.19
Target Market Segment Strategy.
20
Market
Growth
.21
Competitive
Environment
21
Risk
Management..
23
Conclusion
..24
References..
25

Project Management
From the invention of cure for polio to putting human into the Moon to
putting robots into the Marsit all started as a project. A project is
temporary in that it has a defined beginning and end in time, and therefore
defined scope and resources. And a project is unique in that it is not a routine
operation, but a specific set of operations designed to accomplish a singular
goal. So a project team often includes people who dont usually work
together sometimes from different organizations and across multiple
geographies. One of the critical factors for project success is having a welldeveloped project plan. This article provides a 10-step approach to creating
the project plan, not only showing how it provides a roadmap for project
managers to follow, but also exploring why it is the project manager's
premier communications and control tool throughout the project.

STEPS TO CREATING A PROJECT PLAN

Step 1: Explain the project plan to key stakeholders and discuss its key components .
One of the most misunderstood terms in project management, the project plan is a set of living
documents that can be expected to change over the life of the project. Like a roadmap, it
provides the direction for the project. And like the traveler, the project manager needs to set the
course for the project, which in project management terms means creating the project plan. Just
as a driver may encounter road construction or new routes to the final destination, the project
manager may need to correct the project course as well.
A common misconception is that the plan equates to the project timeline, which is only one of
the many components of the plan. The project plan is the major work product from the entire
planning process, so it contains all the planning documents for the project.
Typically many of the project's key stakeholders, that is those affected by both the project and the
project's end result, do not fully understand the nature of the project plan. Since one of the most
important and difficult aspects of project management is getting commitment and buying, the
first step is to explain the planning process and the project plan to all key stakeholders. It is
essential for them to understand the importance of this set of documents and to be familiar with
its content, since they will be asked to review and approve the documents that pertain to them.

Components of the Project Plan Include:

Baselines. Baselines are sometimes called performance measures, because the performance of
the entire project is measured against them. They are the project's three approved starting points
and include the scope, schedule, and cost baselines. These provide the 'stakes in the ground.' That
is, they are used to determine whether or not the project is on track, during the execution of the
project.

Baseline management plans. These plans include documentation on how variances to the
baselines will be handled throughout the project. Each project baseline will need to be reviewed
and managed. A result of this process may include the need to do additional planning, with the
possibility that the baseline(s) will change. Project management plans document what the project
team will do when variances to the baselines occur, including what process will be followed,
who will be notified, how the changes will be funded, etc.
Other work products from the planning process. These include a risk management plan, a quality
plan, a procurement plan, a staffing plan, and a communications plan.

Step 2: Define roles and responsibilities.

Not all key stakeholders will review all documents, so it is necessary to determine who on the
project needs to approve which parts of the plan. Some of the key players are:

Project sponsor, who owns and funds the entire project. Sponsors need to review and
approve all aspects of the plan.

Designated business experts, who will define their requirements for the end product.
They need to help develop the scope baseline and approve the documents relating to
scope. They will be quite interested in the timeline as well.

Project manager, who creates, executes, and controls the project plan. Since project
managers build the plan, they do not need to approve it.

Project team, who build the end product. The team needs to participate in the
development of many aspects of the plan, such as identifying risks, quality, and design
issues, but the team does not usually approve it.

End users, who use the end product. They too, need to participate in the development of
the plan, and review the plan, but rarely do they actually need to sign off.

Others, such as auditors, quality and risk analysts, procurement specialists, and so on
may also participate on the project. They may need to approve the parts that pertain to
them, such as the Quality or Procurement plan.

Step 3: Hold a kickoff meeting.

The kickoff meeting is an effective way to bring stakeholders together to discuss the project. It is
an effective way to initiate the planning process. It can be used to start building trust among the
team members and ensure that everyone's idea are taken into account. Kickoff meetings also
demonstrate commitment from the sponsor for the project. Here are some of the topics that might
be included in a kickoff meeting:

Business vision and strategy (from sponsor)

Project vision (from sponsor)

Roles and responsibilities

Team building

Team commitments

How team makes decisions

Ground rules

How large the group should be and whether sub-groups are necessary

Step 4: Develop a Scope Statement.

The Scope Statement is arguably the most important document in the project plan. It's the
foundation for the rest of the project. It describes the project and is used to get common
agreement among the stakeholders about the scope. The Scope Statement clearly describes what
the outcome of the project will be. It is the basis for getting the buy-in and agreement from the
sponsor and other stakeholders and decreases the chances of miscommunication. This document

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will most likely grow and change with the life of the project. The Scope Statement should
include:

Business need and business problem

Project objectives, stating what will occur within the project to solve the business
problem

Benefits of completing the project, as well as the project justification

Project scope, stated as which deliverables will be included and excluded from the
project.

Key milestones, the approach, and other components as dictated by the size and nature of
the project.

It can be treated like a contract between the project manager and sponsor, one that can only be
changed with sponsor approval.
Step 5: Develop scope baseline.
Once the deliverables are confirmed in the Scope Statement, they need to be developed into a
work breakdown structure (WBS), which is a decomposition of all the deliverables in the project.
This deliverable WBS forms the scope baseline and has these elements:

Identifies all the deliverables produced on the project, and therefore, identifies all the
work to be done.

Takes large deliverables and breaks them into a hierarchy of smaller deliverables. That is,
each deliverable starts at a high level and is broken into subsequently lower and lower
levels of detail.

The lowest level is called a "work package" and can be numbered to correspond to
activities and tasks.

The WBS( Work Breakdown Strategy) is often thought of as a task breakdown, but activities
and tasks are a separate breakdown, identified in the next step.

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Step 6: Develop the schedule and cost baselines.

Here are the steps involved in developing the schedule and cost baselines.
1. Identify activities and tasks needed to produce each of the work packages, creating a
WBS of tasks.
2. Identify resources for each task, if known.
3. Estimate how long it will take to complete each task.
4. Estimate cost of each task, using an average hourly rate for each resource.
5. Consider resource constraints, or how much time each resource can realistically devoted
to this project.
6. Determine which tasks are dependent on other tasks, and develop critical path.
7. Develop schedule, which is a calendarization of all the tasks and estimates. It shows by
chosen time period (week, month, quarter, or year) which resource is doing which tasks,
how much time they are expected to spend on each task, and when each task is scheduled
to begin and end.
8. Develop the cost baseline, which is a time-phased budget, or cost by time period.
This process is not a one-time effort. Throughout the project you will most likely be adding to
repeating some or all of these steps.
Step 7: Create baseline management plans.
Once the scope, schedule, and cost baselines have been established, you can create the steps the
team will take to manage variances to these plans. All these management plans usually include a
review and approval process for modifying the baselines. Different approval levels are usually

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needed for different types of changes. In addition, not all new requests will result in changes to
the scope, schedule, or budget, but a process is needed to study all new requests to determine
their impact to the project.

Step 8: Develop the staffing plan.

The staffing plan is a chart that shows the time periods, usually month, quarter, year, that each
resource will come onto and leave the project. It is similar to other project management charts,
like a Gantt chart, but does not show tasks, estimates, begin and end dates, or the critical path. It
shows only the time period and resource and the length of time that resource is expected to
remain on the project.
Step

9:

Analyze

project

quality

and

risks.

Project Quality: Project quality consists of ensuring that the end product not only meets the
customer specifications, but is one that the sponsor and key business experts actually want to
use. The emphasis on project quality is on preventing errors, rather than inspecting the product at
the end of the project and then eliminating errors. Project quality also recognizes that quality is a
management responsibility and needs to be performed throughout the project.
Creating the Quality Plan involves setting the standards, acceptance criteria, and metrics that will
be used throughout the project. The plan, then, becomes the foundation for all the quality reviews
and inspections performed during the project and is used throughout project execution.
Project Risks: A risk is an event that may or may not happen, but could have a significant effect
on the outcome of a project, if it were to occur. For example, there may be a 50% chance of a
significant change in sponsorship in the next few months. Analyzing risks includes making a
determination of both the probability that a specific event may occur and if it does, assessing its
impact. The quantification of both the probability and impact will lead to determining which are
the highest risks that need attention. Risk management includes not just assessing the risk, but

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developing risk management plans to understand and communicate how the team will respond to
the high-risk events.

Step 10: Communicate

One important aspect of the project plan is the Communications Plan. This document states such
things as:

Who on the project wants which reports, how often, in what format, and using what
media.

How issues will be escalated and when.

Where project information will be stored and who can access it.

For complex projects, a formal communications matrix is a tool that can help determine some of
the above criteria. It helps document the project team's agreed-on method for communicating
various aspects of the project, such as routine status, problem resolution, decisions, etc.
Once the project plan is complete, it is important not just to communicate the importance of the
project plan to the sponsor, but also to communicate its contents once it's created. This
communication should include such things as:

Review and approval of the project plan.

Process for changing the contents of the plan.

Next stepsexecuting and controlling the project plan and key stakeholder
roles/responsibilities in the upcoming phases.
Every business development needs a perfect project plan to hold on to something.
Managers while developing or reforming a business institution finalize a project
first and then if they find the project plan real enough to make fortune they go for
it. Now to understand why we need a project plan to make a business development

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model, we must see what is a business development model and its necessity.

Business Development
Business management has rapidly grown into one of the most sought after disciplines of mode
times. Global corporate houses hire specially trained graduates in order to bring scientific rigour
into business practices. Universities and colleges provide separate business courses, while
several management schools have been established over the last three decades. Business
development is a sub-field of business management and aims at developing the business of a
particular company using methods and tactics of business management

1. Finance
Finance deals with allocation of assets and liabilities of either an individual or a company or a
government during periods of both certainty and uncertainty. There are three main areas of
finance:

Corporate finance

Personal finance

Public finance
From the point of view of business development, knowledge of the financial state of a company
helps to frame strategies to increase business and reduce costs. There are three types of financial
report that declares the financial state of a company. They are:

statement of income that notes the net profit incurred

statement of owners equity that notes the effect of cash inflow and outflow on the
owners capital

Balance sheet that tells the financial state of the company at any given moment.

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2. Marketing
Marketing deals with the communication of the value of a product to the customers in order to
maximize the profit-making motivations of a company. Marketing has traditionally involved 4
distinct aspects: price, product, promotion anzd place. Any business development strategy has to
take into account the 4Ps of marketing mix.

3. Strategic Management
Strategic management refers to the formulation and implementation of strategy based plans
usually undertaken by the top management of a company on the behalf of the board of directors
and shareholders based on a careful analysis of the internal and external environment of the
company. In recent years, the focus of strategic management has shifted from the production
process to the marketing processes. Strategy based planning and executions are essential for
business development.
4. Mergers and Acquisitions
A part of strategic planning, merger refers to the coming together of two or more companies,
while acquisitions refer to the taking over of one company by another. Mergers and acquisitions,
as they are called together, consist of distinct stages. They are:

Documentation which involves a letter of intent between two parties to enter into a deal.

Business valuation refers to the evaluation of the market value of both the companies
entering in a merger and acquisition

Financing refers to the ways in which a merger and acquisition deal can be carried out
either through a cash purchase or through a purchase of stocks etc.
5. Legal Aspects

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They involve the various legal aspects of conducting a business. Most of these laws are
commercial in nature.
6. Capture management/Proposal management
It refers to the study of proposals for the capture of new businesses.

How does business development include all these aspects?

Business developer has to have knowledge of all these areas. He would then combine his
knowledge of all these areas to come up with successful business development policies. He must
be aware of the financial situation of the company, the competitive advantage of the company,
the ways of finding capital for newer projects etc. Business development over the years has
grown into an independent field of business itself. Several companies now provide business
development solutions based on prior research.
Some business development policies: Business pipeline strategy
One interesting business development strategy is the pipeline. It refers to the flow of the
potential clients which the company has started developing. Each business development
strategist provides each client in the pipeline with a business development plan containing:
1.

Targeted sales figures

2.

Reasons for wins and losses

3.

Top performing sales channels and figures

4.

Sales of services and figures etc.

Other techniques and skills involved in business development

Assessment of marketing opportunities and target markets.

Intelligence gathering on customers and competitors

generating leads for possible sales

advising on, drafting and enforcing sales policies and processes for Business
Development

Follow-up sales activity

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Formal proposal or presentation management and writing

Pitch and presentation rehearsals

Business model design etc.

Thus we see that business development is a rather complex discipline which includes a number
of allied fields. A business developer therefore must have a bit of knowledge in everything: be it
finance or accounting or marketing and sales.

In finance he must be aware of capital budgeting, making financial statements, creating

financial analysis etc.

In production he needs to know the production process and the raw materials used in the
process.

Finally he must also be aware of marketing mix, marketing strategy etc.

Now heres a sample business plan of Friends Boutique Shop, of which well be preparing a
project development plan. But first lets see the business model of Friends Boutique Shop.

Sample Business plan of Friends Boutique Shop

Executive Summary

Friends Boutique Shop is a new apparel store that caters to the Bangladeshi people. As
our name suggests our focus is to provide customized wear apparel and accessories, and position
ourselves as the top retail store servicing this particular market.

Our intentions are to obtain market share and become a central hub of shopping activity
for the local population as well as Non resident Bangladeshis (NRBs)who enjoy wearing
fashionable apparel.

Friends Boutique Shop will be located at Subid Bazar. Friends Boutique Shop has
centralized itself directly in position to the residential location and social activities of our target
market. We believe that this is critical to our initial success and long-term growth.

Objectives

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1. To create a shopping environment that caters to the apparel needs of the local people as
well as NRBs.
2. To receive a 50% profit margin within the first year.
3. To have a customer base of 1,000 by the end of the first operating year.
4. To create employment opportunity.
5. To conserve and uphold culture and values by providing domestic products to NRBs.
6. To generate scope for enhancement for related industries like those who provide the raw
material.
Mission

FriendsBoutique Shops mission is to offer quality, name brand accessories and clothing
in an assortment of sizes and styles to accommodate varying styles and shapes.

Keys to Success

In order to succeed in the boutique industry Friends Boutique Shop must:

Provide customers with top notch personalized customer service in an atmosphere of

Bengali hospitality.

Carry an assortment of sizes to fit the more ample frames of their target customer base.

Advertise and promote in areas that target customer base will learn about the store.

Continuously review sales and adjust inventory levels accordingly.

Company Summary

FriendsBoutique Shopis organized as a partnership among the five partners of

Sharmishtha Dhar,Maisha Ibnat,Saima Noor.Saddam hossain and Nazmul hossain.

We will be located at Subid Bazar, Sylhet being the epi-center of the Sylheti community.

The hoursof operation will be Saturday - Thursday 9 a.m. - 9 p.m. and Friday 10 a.m. - 12
p.m. There will be extended special hours designated during The Festivals like Eid-Ul-Fitr and
Eid-Ul-Azha, and New Year.

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All merchandise will be purchased according to the company's mission and customer
focus of outfitting all sizes.

Company Ownership

Friends Boutique Shop is organized as a partnership among the five partners of Maisha
Ibnat,Saima Noor.Saddam hossain, Nazmul hossain and Sharmishtha Dhar..Everyone will handle
the administrative and managerial duties on rotation.
Start-up Summary

Friends Boutique Shops incorporation costs are listed below. The company will start
with three months inventory on hand for apparel and accessories as this is the main revenue
generator. The majority of the company's assets will reside in inventory. The opening days cash
on hand balance will be 50000tk. The financing will include an owners investment of 1000000tk
Company Locations and Facilities

Friends Boutique Shop will be located at Subid Bazar in Sylhet. This space has 1,200 square
feet and has been rented for two years. This location is central to the geographical location
for the sylheti community. We feel it is essential to our initial and ongoing success that we
locate ourselves in the heartbeat of the community. We also strive to create an atmosphere of
acceptance and community, as well as a retail environment where individuals can identify
and bond with their culture.
All business deliveries will be handled through the showroom. The factory is near by the
showroom so no extra transportation cost will be needed to bring the products from the
Factory to showroom.
Products
Friends Boutique Shop will carry traditional wear brands. The greatest percentage of
merchandise will be in apparel, followed by accessories, and gifts.
Management will rely on customer feedback, suggestions, and sales reports to introduce or
eliminate certain brands, styles and sizes.

Saree
Salwar Kameez
Kids' Item
Bed cover

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Cushion cover
Curtain
Others

Competitive Comparison
Friends Boutique Shop has a number of advantages that will allow us to build our brand
identity, add value to our merchandise and build a loyal customer base while standing apart
from our competitors.
1. The Friends Shopper Card' will entitle customers to a 15% discount after ten purchases.
2. We will offer clothing to fit plus size for all.
3. We will create a sense of culture and bonding with the community by offering products
that combine both the culture and innovation.
4. Our location is central to our target customer base.
5.Wewill maintain a detailed record on each customer, logging addresses, their purchases,
size, and brand for customer follow-up and in-house promotional purposes.

Commercial Viability
1. The plan is a sound one because it will create employment opportunities as well as providing
scope for related industries.
2. There is a huge demand for clothing, as these items reflect ones personality and status.
3. The plan is acceptable as there will be no environmental degradation.
4. The investment cost is comparatively lower.
5. The employees required for the project are few in number and available.
6. As the investment is lower the risk associated with the plan is also low.

Sales Program
Friends Boutique Shop will use a targeted advertising and sales program to generate publicity
and build a customer base.
1.500 full-color postcard flyers with a 10% coupon will be distributed throughout Sylhet two
weeks prior to the grand opening event.

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2.100 grand opening invites will be mailed to potential new customers two weeks before the
grand opening in June, 2008. The invitation will also include a promotional 10%coupon off a
customer's first purchase. The customer mailing list has been compiled from contacts the owners
have made while in the community.
Sourcing
We will shop for our merchandise as outlined below:
1. With renowned fashion houses like Aarong who have regional representative and showroom
located at the Center, we will place our weekly and monthly reorders with them and review new
materials.
2. The Eid-Ul-Azha, the 2nd largest festival for Bengali people and apparel featuring the latest
collections of all brands will be presented. All orders will be placed bearing Eid in mind.
We will also work to solidify our relationships with sales representatives and vendors so that we
may achieve decreased cost of goods. Our competitors, (both direct and indirect) purchase from
the same sources and we believe that through marketing programs and strategic alliances we will
begin to gain a competitive advantage.

Technology
Retail apparel establishments have a tendency to have a high number of SKU's because of the
level of inventory. It is imperative that an advanced inventory and point of sales program be
utilized to maintain stock levels and track sales.
Our business plan will be generated and reviewed on a bi-annual basis and reviewed quarterly to
ensure all financial goals and objectives are being reached. It will allow us to make the most of
our limited marketing budget by focusing our communications on our target markets and
enhancing our marketing knowledge.

Future Products
As we achieve and exceed our sales and profitability goals, Friends Boutique Shop will add
other products to the product line and our own personal in-house label of clothing that will
include Friends t-shirts for women and shirts for men. We will expand our line of brands with
those that have been repeatedly requested by our customers. An e-commerce website will also be
created to increase our distribution channels and expand our customer base to a national level.

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Market Analysis Summary

The primary target customer of Friends Boutique Shop will be the local people in the Sylhet
region. As we are situated in the epi-center of the residential community we believe they will
make up the largest percentage of our customer base.
The secondary target customers are the NRBS. As the Nonresident population continues to grow
rapidly in various parts of the world we expect to receive the patronage of them as they are very
loyal to Bengali apparel.
The last target customer of Friends Boutique Shop is listed as other. As popularity about the
store increases we expect to see an assortment of curiosity seekers as well as seasonal purchasers
during festival season.

SWOT analysis
Strength
1. Premium price charged to reflect innovation and creativity.
2. High quality raw materials are collected from renowned fashion house.
3. Timely delivery for ordered products.
4. The location of the shop is very much favorable.
Weakness
1. Being a new entrant is one of the weaknesses of the boutique shop.
Opportunity
1. A partially fulfilled customer need is a great opportunity for the shop.
Threat
1. Increasing market price of raw materials and labor.

Market Segmentation
The population of Sylhet is concentrated heavily in the southwestern part of the city therefore
leading to the highest concentration of our customer base.

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The last area of potential customers is labeled as "other." Because Friends Boutique Shop offers
a variety of innovative and creative apparel, along with accessories and gifts we feel that we will
attract many curious shoppers .Our ambience and customer service will make them repeat
customers.
Potential Market Analysis:
Market Analysis
2015
Potential Customers

Growth

Local People

10%

NRBs

15%

Other

10%

Total

35%

Target Market Segment Strategy

The goal of Friends Boutique Shop is to serve the local community that has difficulty finding
innovative clothes. It will also serve the NRB community.
Both of these markets are underserved in the major boutique retailer outlets.
Market Needs

There are several important needs in the boutique business that are being either underserved or
not met at all. Friends Boutique Shop plans to meet and service those needs.
1. Friends will provide a large assortment of sizes to compliment the various body shapes and
sizes of the local community.
2. Focus and attention to customer's personal preferences and customer retention will be given
high priority. Because of the high rate of employee turnover at major mass retailers, customer
service and personal detail has been lost.
Market Trends
Millions of people around the world instantly recognize and identify with traditional apparel.
Our traditional clothing has survived many eras. There will always be a future for traditional
apparel. Within the last two years the traditional look has made a comeback in the fashion

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industry. Friends Boutique intends to use its place in the community to heighten the awareness
of the Bangladeshi culture in Subid Bazar, Sylhet.
With the increase of participation by NRBS in the international affairs more people are becoming
aware of our products all over the world.
Market Growth

Market growth is in an upward motion, despite some of the latest economic downturns in our
country. Now a days, Sylhet has become a center of economic and cultural activities because of
the establishment of various educational institutions and other organizations. People from other
areas are coming to Sylhet for study or job purposes. Moreover the number of working women
are increasing in the city who are very much concerned about their attire. Sylhet has also been
designated as the city of natural beauty in the country. Every year So many tourists are coming to
Sylhet for trade and tour purposes.
For these reasons and more, Sylhet is considered an economic leader in Bangladesh. The number
of NRBs from Sylhet region are more than half of the total from Bangladesh.

Industry Analysis Boutique shops fall within several kinds of stores:

Small Specialty Stores: The majority of boutique is sold through small family-run
specialty stores that are located in or near neighborhood communities. Dhaka boutique is

an example of this type of store.

Large Multi-owned Retailers: These large stores mass market and sell to hardcore
enthusiasts as well as the local tourists and seasonal purchases. Examples include
She.

Competitive Environment:
Friends Boutique shop has competitors within a 15 miles radius of its location.
She, which is located approximately 2.1 miles from our location is our closest competitor. It
is one of the largest apparel stores in the city of Sylhet. They sell basic wear apparel and
jewellery, gift item and cosmetics to the mass market. Because of Shes size they have a large
percentage of the market share. Locating plus size clothing for women can be extremely

25

difficult. They also tend to be a bit behind the market in offering more contemporary
innovative styles. Because of its size they have also lost some of their customer service skills
as employee turnover is high.
Dhaka Boutique, located approximately 3.3 miles from our store. It combines the atmosphere of
Taradin restaurant with shopping. They offer an eclectic mix of apparel, grills, cookware, and gift
items. They don't do any advertising or promotions of their retail outlet so if a customer doesn't
visit Taradin restaurant he wouldn't know about the retail establishment.
Manorom, is approximately 12.1 miles from Friends and is the farthest of the three competitors.
It is a family-owned apparel with two stores. Their customer base tends to be more upscale as
they carry more of the high end labels like Gucci and Armani. They also carry housewares and
bedding items of which She and Dhaka boutique does not carry.
Marketing Strategy
Our marketing strategy will focus heavily on sales promotion, niche positioning inthe market and
customer service with loyalty and retention in sales.
1. The marketing budget will not exceed 5% of our gross annual sales.
2. Our promotions will always stay in tune with our company objectives and mission statement.
Pricing Strategy
Friends will maintain a premium pricing strategy. We base the product lines that we carry
on their reputation and quality as clothing. Most of our lines come with a suggested retail
price that we will follow. We will also utilize the standard practice of key stoning as well.

Sales Strategy
We will offer a 14day return/exchange policy to build trust with our customers and maintain
retention and loyalty.

Sales Forecast
The following table and chart give a highlight on forecasted sales. We expect sales to start
off conservatively and increase extensively during the Eid holiday shopping season and
during the months of summer.
Friends has planned for a steady growth for the first year as we build name recognition and
status in the community. In the second and third year we look to see an increase of revenue

26
of 20% as we gain a larger percentage of the market share and increase our customer base
beyond the southwest part of the city

Organizational

Structure

Friends Boutique Shop is a small business and therefore requires a simple organizational
structure. All decisions are made in-line with the company objectives. Employee tasks are
delegated based upon their level of expertise, creativity, strengths and weaknesses.

Management Team
All partners will be responsible for all administrative functions, purchasing, inventory control,
and promotions. They will also act as a part-time sales representative

Risk Management

The risks that may occur in this project are:

o Pure Risk: There venues and cash inflows of the project may be lower than the
expected indifferent years.
o Systematic Risk: Political changes may hamper the production of the project.
o Unsystematic Risk: Workers may go for strike, which may hinder production
process.
o Market Risk: Macroeconomic factors like inflation can have an impact on the
project and fluctuation of demand. Cost reduction and increased production may
be a way out but it will become difficult to maintain quality.
Instrumental Risk: The machineries may go out of order any time. So the business
runs the risk of machinery shortage.

Monitoring and controlling

Monitoring and controlling process group processes
Monitoring and controlling consists of those processes performed to observe project
execution so that potential problems can be identified in a timely manner and

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corrective action can be taken, when necessary, to control the execution of the project.
The key benefit is that project performance is observed and measured regularly to
identify variances from the project management plan.
Monitoring and controlling includes:
Measuring the ongoing project activities ('where we are');
Monitoring the project variables (cost, effort, scope, etc.) against the project
management plan and the project performance baseline (where we should be);
Identify corrective actions to address issues and risks properly (How can we get on
track again);
Influencing the factors that could circumvent integrated change control so only
approved changes are implemented.
In multi-phase projects, the monitoring and control process also provides feedback
between project phases, in order to implement corrective or preventive actions to
bring the project into compliance with the project management plan.

Project

Development

Flowchart:

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Conclusion:
The plan for the boutique shop has been designed bearing the demand for innovative clothing in
mind. Such a plan is also judged financially and market projections are included.

Refferences:
1. The Definitive Guide to Project Management. Nokes, Sebastian. 2nd Ed.n. London
2. "What is Project Management? | Project Management Institute".
Project
3. Paul C. Dinsmore et al (2005)
The right projects done right! John Wiley and Sons.

4.

[Office for Government Commerce (1996) Managing Successful Projects with

PRINCE2.

5. Body of Knowledge 5th edition, Association for Project Management, 2006.