ASSESSMENT

ASSESSMENT

Business Proposal

Introduction

Shoes are a vital thing in the life of the people and are a need that cannot be ended. The changes in the environment and the fashion have enabled people to add new kinds of shoes in their wardrobe, so the business initiated is to manufacture shoes. Initially the target market will be UK but later on it can be expanded in the other parts of the world. The new business setup report will provide an analysis of the predictions of starting a new company that will offer shoe products to its customers. The company will be incorporated by the name of NYK Ltd. that will provide footwear products for all kinds of customers. The company will predict the future sales, different costs, prepare cash budget and predict the inflows in the years to come.

Discussion

According to the British Footwear Association footwear industry is a large part of the UK`s economy which has more than 130 companies that are selling, manufacturing, importing their products for the consumers of UK. The footwear sector will be a challenging sector for the NYK Ltd. to enter into the market and make its market position. The business analysts have predicted that the sales of the products will rise as the sport activities and people`s demand of comfortable footwear is increasing.

NYK Ltd. will setup their manufacturing plant in UK and preferably it will cater the UK market but will try to enter the US footwear industry for sports shoes because US has the largest amount of athletes in different kind of sports. As there are 130 companies offering their products in UK so the NYK Ltd. will have competitors in the casual shoe market and the sportswear shoe market. The casual shoe market competitors will include Gucci, ECCO, Bata, Nine West and etc. In the sports wear market the competitors will be Nike, Daddies, Reebok and Puma. The sportswear industry is presently in the growth phase and still has potential to grow in the years to come. Apart from the threat within the industry the company will also have to face threat from the cheap imports coming in the UK from China, India and other parts of the world.

Product Cost Estimate

In order to manufacture the shoes the company will require cheap material, labour, selling and administration expenses so that NYK Ltd. is able to provide its customers best quality product at a reasonable price. ...