SUBMITTED TO:
Lecturer : Peter Millard
GROUP MEMBERS:
Sudip Paudel : 201801687
Niraj Gautam : 201801571
Chiranjibi Gyawali : 201801685
Jagdeep Kaur : 201801740
Shristi Sharma : 201801700
Group: Master of power
Everest Leathers Pty. ltd. | Sydney Westfield CBD, Sydney
Executive Summary 0
Management & Ownership 2
Company Structure 2
Key Personnel 3
Products and services 3
Pictures of Sample Products 4
Business Analysis 5
Market position 5
Unique selling position 5
Innovation 5
Insurance 5
Risk Management 6
Legal Considerations 6
Operations 6
Sustainability plan 6
Corporate Social Responsibilities plan 7
The Future 8
Vision Statement 8
Mission Statement 8
Goals and Objectives 9
Action Plan 10
The Market 12
Market research 12
Market target 12
Market Positioning 13
Market Segmentation 13
Environment and Industry Analysis 13
PESTLE Analysis 14
Porter’s Five Force Model 15
SWOT analysis for Everest Leather 16
Competitors 16
Advertisement and Sales 17
The Finance 18
Key Financial Objectives 18
The Start-up Cost 19
Profit and loss statement for the first year 20
Assumptions 21
Breakeven Analysis 22
Projected Profit and Loss 22
Table of Pro forma Profit and Loss table 23
Projected Balance Sheet 24
Business Ratios 25
Formulas 25
References 28
Annexures 29
List of Figures:
Figure 1: Organisational Chart 2
Figure 2: Pictures of sample products 4
Figure 3: Business Canvas Model 29
List of Tables
Table 1: Current staffs and their details 3
Table 2: Products and services 3
Table 3: Risk Management 6
Table 4: Corporate Social Responsibilities Plans 7
Table 5: Action plan of Business 11
Table 6: Capital Structure of Business 18
Table 7: Company’s Shareholding Pattern 18
Table 8: Start-up cost of Business 19
Table 9: Profit and Loss Statement for first year (Monthly) 20
Table 10: First Three Years Financials Projection Summary 21
Table 11: Break Even Analysis 22
Table 12: Performa Profit and loss for first three years 24
Table 13: Projected Balance Sheet for three years 24
Table 14: Business Ratios 25
Everest Leathers is an e-commerce leather retail private limited company. It offers quality and reasonable priced leather jackets, wallets, belts and shoes for men and women. The company operates from its corporate office based in Westfield Sydney CBD, Sydney. It imports its standard as well as customized products as requested by customers from Kathmandu, Nepal. Everest Leathers will have an agreement or tie up with leather product manufacturing company from Kathmandu, Nepal. Everest Leathers will hold all the international selling rights of that company.
Everest Leathers has target market of medium level of income people. The company will primarily serve the market of Australia, New Zealand, UK, USA and South Asian Countries as in these countries, people are loving the ideas of customizing their items and there is an increasing trending of online shopping. However, the market is competitive. The prime competitors for the company will be established companies like Oran Leather, Aussie Bush Leather, Will Leather etcetera and the other leather products retailers from EBAY and Amazon. However, Everest Leathers has key competitive advantage over others as it will have directly supplier from Kathmandu, Nepal which will manufacture and supply good quality of leather products for Everest Leathers in lower cost. Further, Everest Leathers is very confident about offering customized products. In addition, Everest Leathers will put intensive marketing and promotional activities like Facebook, Instagram marketing, biker gang marketing, physical office marketing.
Everest Leathers will kick-off its operation with paid equity capital of AUD $100,000. Each of five founding shareholders will contribute AUD $20,000 individually. The start-up cost will be AUD $79,553. It is expecting to have sales figure around AUD $453,045 in the first year of its inception and the sales are projected to grow at rate of 22.26% for second year and 32.85% increase in third year. The major cost for the company will be its cost of goods sold i.e. 41.07% of the revenue while the administration expenses is projected to drop in later years. Similarly, Everest Leathers projects for the first year of operation, it will have net profit margin between 17.53% for the first year and increased to 28.31% in third year.
The company is expected to stand out in the crowd with its genuine and reasonable priced products and its customized articles option. As more people are moving into online shopping due to its easiness, there seems an emerging market for this type of business. Further, the founding members are young, energetic and equipped with considerable amount of knowledge of management, so the company is expected to do very well and achieve its goals within stipulated time frame.
The Business
Business Name : Everest Leathers Pty. Ltd.
Trading name : Everest Leathers
Date Registered : 14th March 2019
Location(s) registered : NSW
Business structure : Private limited company
ABN : 1234567
CAN : 9876543
GST : Registered completed on 20th March 2019
Domain address : www.everestleathers.com
Email address : everestleathers@gmail.com
Phone Number : +61-123456789
Licenses & permits:
Business Premises Lease:
Outlet leasing
Warehouse leasing
This company will consist of five founding members who will own and run the company. Each of the five shareholders will contribute equal amount of equity as well as take several roles across the firm to run it smoothly and effectively.
Figure 1: Organisational Chart
Current staff
| Job title | Name | Expected staff turnover | Skills or strength |
| Chief Executive Officer | Sudip Paudel | 3 years | Master’s in Professional Accounting and more than 6 years of accounting and management experiences. |
| Chief Financial Officer | Chiranjibi Gyawali | 3 years | Master’s in Accounting. More than 3 years of experience in operation and accounting. Internship in banking sector. |
| HR Chief | Niraj Gautam | 3 years | Master’s in accounting and finance. Internship in banking sector. |
| IT & Online Marketing Chief | Jagdeep Kaur | 3 years | Master’s in Information Technology. |
| Marketing & Logistics Manager | Shristi Sharma | 3 years | Master’s degree in Marketing. |
Table 1: Current staffs and their details
| Product/service | Description | Price |
| Leather Jackets & Coats | Raw materials used is pure Nepali Leather with several designs | $150-$600 |
| Shoes | Raw materials used is pure Nepali Leather with several designs | $50-300 |
| Belts & wallets | Raw materials used is pure Nepali Leather with several designs | $30-$200 |
| Bags | Raw materials used is pure Nepali Leather with several designs | $45-$500 |
Table 2: Products and services
Figure 2: Pictures of sample products
The leather products as the primary product of the company has a very competitive niche market. However, the best quality leather, reasonable price, flexible payment process and fashionable products are the feature our products carry to beat the competitors in the market.
In order to outrun the competitors, we have a unique selling quality like huge range of products available for buyers with competitive price, customization of the product for online customers, flexible payment process includes 80% payment before the delivery and rest after the delivery. We will follow a strategy where prices are set as per competitive market price plus discount on the first buy up to 15% and also quality of product. We will have a variety of products that will fall within both necessity and luxury goods.
Research and development in any kind of business will lead to a successful venture. Hence, our company will hire a professional in R&D but in later part of the business. In the meantime, our company’s CEO Mr. Sudip Paudel himself is a great enthusiast in terms of new research and innovation. Meanwhile, all the employees will be trained in regard to the proper way of handling the leather products as well as chemicals involved which might lead to significant reduction in stock losses and higher savings
Workers compensation:
It’s our responsibility as an employer to:
We have our workers compensation insurance with Bupa Insurance. They will provide workers compensation claim services and other services related to incidents.
Our insurance policy number: ACVD8954
| Risk | Likelihood | Impact | Strategy |
| Environmental Risk | Highly likely | High | Must come out with innovative creation that would reduce environmental risk |
| Delivery time | Likely | Medium | Need to have contract with professional delivery company |
| Copyright issue | Likely | High | Need to ensure our product & services are under the copyrights frame |
Table 3: Risk Management
The Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act) is the Australian Government’s central piece of environmental legislation. It provides a legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places — defined in the EPBC Act as matters of national environmental significance.
We are going to import the raw leather from Kolkata, India (Bangla Quality Leather Pvt Ltd) to Nepal for manufacturing. Our manufacturing would be done by a third party or outsourced manufacturer who already are equipped and involved in similar kind of product manufacturing. Basically, Nepal leather Pvt Ltd will collaborate with us in terms of general manufacturing as well as customized manufacturing. After producing the goods, they will be shipping our products to Kokalta, India via road and to Australia via sea to our warehouse in Auburn, Sydney. After receiving the order, the online demand would be dispatched to the customer at their door step whereas remaining load would be slowly moved to the retail store as per the available space.
Environmental impacts
Community impact & engagement:
Exposure to carcinogenic compounds resulting in a variety of cancers i.e. lung, bladder, kidney, pancreatic, oral cavity and nasal cancers, soft tissue sarcoma and skin with dermatitis, ulcer and respiratory illness. They can strictly follow the recommendations mentioned below to improve the conditions.
| Milestone sustainability related to business | Target | Target date |
| Reduce plastic bags consumption | 50% Reduction | July 2019 |
| Tree Plantation | 2200 Trees | October 2021 |
| Reduction of use of toxic chemical | 35% reduction | May 2021 |
Table 4: Corporate Social Responsibilities Plans
Technology
Company will use its official website, accounting and inventory management software will be used is MYOB.
Trading hours
Online trading: In this case the transaction can occur, or the customer can pay at any time of the day. The delivery would be done within 5 business days.
Retail trading: 9am – 6pm on weekdays, 10am – 5 pm on weekends
Communication channels
Payment types
The planning of business provides assistance in explaining vision statement, mission statement, goals/objectives and action plan. For Leathers, author has explained and illustrated future attributes as follows;
A Project Vision Statement is an idealistic view of the desired outcomes to be produced for the business after successful project completion. It is a vivid description of what the business will be like to inspire the project beneficiaries to initiate the project. The vision statement document is an attempt to visualize the project results at the initiation phase in order to focus the business on those benefits it will gain after the project accomplishment. In certain, vision statement of company provides a road map that indicates company’s desires to become and guide transformational initiatives with the end goal of settling defined directions, which are accountable of strengthening company’s growth and prosperity (Armstrong, Kotler, Harker and Brennan, 2015). For the Everest Leathers (Quality never goes out of style) Vision Statement is to be a global name synonymous with high quality, genuine leather. The preferred choice of jackets, bags designers, tailors and end-users in India. Armed with the highest level of experience, knowledge and in-depth expertise, we are new company with the ambition and the resources to be the absolute best in our field. We challenge, implement and inspire all areas where the use of leather creates added value. The company’s first responsibility is to the men, women, and children who use its products. As a customer-oriented business, Everest leather recognizes that customer satisfaction is the key to success and strives to deliver the highest quality customer service and superior products. Everest leather supports the success of its employees, community, and investors, and will conduct its operations prudently to ensure adequate financing and resources necessary to achieve business objectives for future growth. The company promotes a spirit of sharing and caring, where people eagerly contribute their time, knowledge, and experience towards a successful community. As a socially responsible company, Everest leather contributes to the world’s obligation for the protection of the environment, contributes to the economic strength of society, and functions as a good corporate citizen on a local, regional, national, and global basis. Vision statements are addressed by the company due to several different reasons. For instance, visions are accountable of contributing towards the development of broader strategic plan and attempts to provide assistance in motivating existing workers as well as attracting potential employees (Fahy and Jobber, 2012). Overall, vision statements can facilitate companies in differentiating competitors of the business. For instance, profit sharing can also be determined in terms of common business goals and targets. The vision statements are typically described and explained in the ways in which company become profitable and successful for long term growth (Fahy and Jobber, 2012). The vision statement of the company is as follow:
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