MAKERERE UNIVERSITY

COLLEGE OF BUSINESS AND MANAGEMENT SCIENCES

SCHOOL OF BUSINESS

PROPOSED PROJECT: MEETING INCREASED CUSTOMER DEMANDS IN

FASHION INDUSTRY

ANKUNDA RACHEAL
20/U/23697/EVE
2000723696

A BUSINESS PROJECT SUBMITTED TO THE COLLEGE OF BUSINESS AND

MANAGEMENT SCIENCES SCHOOL OF BUSINESS IN PARTIAL
FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF
A DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION
OF MAKERERE UNIVERSITY

DECEMBER 2022
 DECLARATION
I Ankunda Racheal declare that this project proposal “meeting increased customer demands in
fashion industry" is an original work done by me under the supervision of…………., College
of Business and Management Science.

Signature…………………………Date……………………………....…
ANKUNDA RACHEAL
20/U/23697/EVE
2000723697
 APPROVAL
This is to confirm that this Business project has been formulated under my guidance and
supervision and it’s now ready to be submitted for examination.

Signature…………………………Date…………………………….......
….…………………….
Supervisor
EXECUTIVE SUMMARY

Racens Classy Designers is a clothing and fashion company that will be dealing in meeting
increasing customer demands through providing various fashion trends like fancy dresses, high
waist pants, modeling clothes, denim shirts, the customers of the company will include local
people of Kawempe, and around the globe it being an online business and participating in
global supply chain management. The project aims at creating jobs to the people of Kawempe,
creating economic model amongst the society, contributing to the development of the society
through payment of taxes as well as generating personal income to the project proprietor. The
project intends to use machines like bar tack, Janome Dc5100, pattern sewer. The project tends
to employ about 8 workers to carry out its operations and these include director of ecommerce,
logistic manager, marketing manager, global project manager, manager ecommerce operations,
human resource manager, finance manager, Information and technology. The project intends
to produce about 21,840 dozens of clothes in the first year of operation and it intends to handle
competition from companies in the same industry through establishing niche for clear
communication with customers, knowing unique selling points differentiating them from brand
of competitors. The project will start its operator with an estimated capital of 35million which
will be obtained as personal savings amounting to 10million by the project proprietor,5million
as family contribution and 20million as bank loan amounting to the start capital. It is expected
to finance expenses such as raw materials, salary for the workers, transport,technology,theft
professional specialist, advertising and other expenses incurred. The project also intends to
make sales revenue of about 863,400,000shillings in its first year of operation
 TABLE OF CONTENTS
DECLARATION..............................................................................................................................i

APPROVAL....................................................................................................................................ii

EXECUTIVE SUMMARY............................................................................................................iii

LIST OF TABLES........................................................................................................................vii

LIST OF FIGURES......................................................................................................................viii

CHAPTER ONE............................................................................................................................1

PROJECT OVERVIEW...............................................................................................................1

1.0 Introduction...............................................................................................................................1

1.1 Problem/need being addressed..................................................................................................1

1.2 Vision.........................................................................................................................................1

1.3 Mission......................................................................................................................................1

1.4 Goals and Objectives.................................................................................................................1

1.5 Project Justification...................................................................................................................2

1.6 Expected Outputs.......................................................................................................................2

1.7 Expected outcomes....................................................................................................................2

1.8 contribution of the project to the society...................................................................................2

CHAPTER TWO...........................................................................................................................4

PRODUCT DESCRIPTION.........................................................................................................4

2.0 Introduction...............................................................................................................................4

2.1 Product to be offered.................................................................................................................4

2.1.1 Processed chicken...................................................................................................................4

2.1.2 Chicken sausages....................................................................................................................4

2.1.3 Chicken powder......................................................................................................................5

2.2 Uniqueness of the products........................................................................................................5

2.3 Benefits of the products to the target market.............................................................................5

CHAPTER THREE.......................................................................................................................7

INDUSTRY AND COMPETITIVE ANALYSIS........................................................................7

3.0 Introduction...............................................................................................................................7

3.1 Industry Description..................................................................................................................7

3.2 Industry trends...........................................................................................................................7

3.3 Growth opportunities.................................................................................................................8

3.4. Key success factors...................................................................................................................8

3.5 .8 SWOT Analysis.....................................................................................................................9

CHAPTER FOUR.......................................................................................................................11

MARKETING PLAN..................................................................................................................11

4.0 Introduction.............................................................................................................................11

4.1 Target market...........................................................................................................................11

4.2 The needs being addressed......................................................................................................11

4.2 Marketing Mix.........................................................................................................................11

4.2.1 Product..................................................................................................................................11

4.2.3 Pricing...................................................................................................................................12

4.3.3 Place......................................................................................................................................12

4.3.4 Promotion.............................................................................................................................12

4.3.5 People...................................................................................................................................12

4.2.3.1 Pricing List........................................................................................................................13

4.2.3 Place......................................................................................................................................13

4.3.4 Promotion.............................................................................................................................13

4.3.5 Process..................................................................................................................................13

4.3.6 People...................................................................................................................................14
4.3.7 Physical evidence.................................................................................................................14

CHAPTER FIVE.........................................................................................................................15

OPERATIONS PLAN.................................................................................................................15

5.0 Introduction.............................................................................................................................15

5.1 Location...................................................................................................................................15

5.2 Machinery and Equipment.......................................................................................................15

5.4. Production process..................................................................................................................16

5.5 Human resource capacity.........................................................................................................18

5.6Production Capacity.................................................................................................................18

5.7 Competition handling..............................................................................................................18

5.8 Quality Assurance....................................................................................................................19

5.9 Utilities management...............................................................................................................20

3.9 Waste management..................................................................................................................20

CHAPTER SIX............................................................................................................................21

MANAGEMENT PLAN.............................................................................................................21

6.0 Introduction.............................................................................................................................21

6.1 Organisational structure...........................................................................................................21

6.5 Reward System........................................................................................................................24

6.5.1 Extrinsic rewards..................................................................................................................24

6.5.2 Intrinsic Rewards..................................................................................................................24

CHAPTER SEVEN.....................................................................................................................26

FINANCIAL ANALYSIS...........................................................................................................26

7.0 Introduction.............................................................................................................................26

7.1 start-up capital.........................................................................................................................26

7.2 Sources of Finance...................................................................................................................26

7.3 Fixed capital requirement........................................................................................................26

7.4 Estimated Working Capital Requirement................................................................................27

7.5 Business Expenses...................................................................................................................27

7.6 Estimated sales........................................................................................................................28

7.7 Estimated profitability.............................................................................................................28

7.8 Financial projections................................................................................................................31

CHAPTER EIGHT......................................................................................................................33

BUSINESS SUSTAINABILITY.................................................................................................33

8.1 Introduction.............................................................................................................................33

CHAPTER NINE.........................................................................................................................34

SPECIFIC KNOWLEDGE AND SKILLS APPLIED.............................................................34

9.1 Introduction.............................................................................................................................34

REFERENCES..............................................................................................................................35
 LIST OF TABLES
Table 1: Price List.........................................................................................................................13
Table 2: Machinery and Equipment..............................................................................................16
Table 3: Quantity produced...........................................................................................................18
Table 4: Price for utilities..............................................................................................................20
Table 5: Job qualifications, duties and responsibilities.................................................................22
Table 6: Salary reward...................................................................................................................25
Table 7: Source of funds................................................................................................................26
Table 8: Fixed assets.....................................................................................................................26
Table 9:Working Capital...............................................................................................................27
Table 10: Operating expenses.......................................................................................................27
Table 11: Sales..............................................................................................................................28
Table 12: Income statement...........................................................................................................28
Table 13: Balance sheet.................................................................................................................29
Table 14: Cashflow statement.......................................................................................................31
 LIST OF FIGURES
Figure 1: Organisational structure.................................................................................................21
 CHAPTER ONE

PROJECT OVERVIEW

1.0 Introduction
This chapter entails the problem description/need being addressed, project vision, goals
and justification of the project, contributions to the society.

1.1 Problem/need being addressed

Currently in Uganda, there occurs various suppliers in different sections dealing in different
activities but depending on customers ‘satisfaction business people tend to resort into global
supply chain management with aim of sourcing various raw materials from multinational
countries to increase productivity optimizing the supply chain and this is due to the problem of
increased customer demands, for that case therefore Racens Classy designers have arisen with
a solution to the problem mostly in the fashion industry through a web fashion shop to ensure
customer satisfaction towards their increased demands.

1.2 Vision
To be the outstanding fashionistas globally and in Uganda.

1.3 Mission

To extend quality classy and fancy designs to outmost parts of the globe meeting their
expectations.

1.4 Goals and Objectives

 To anticipate consumer trends with this from findings and knowledge basing on my
target tend to determine designs that are likely to apparel to consumers in future.
 To design clothing that will sell and designs that will highly attract more customers
satisfying their demands and using influencer packages as celebrities.
 To form connections with creative directors for magazines and other publications so
that can share creations with a wider audience.
 To ensure accessibility of products to the customers globally irrespective of their
localities meeting their increased demands.
 To develop personal brand of clothing in the fashion world that is out mate to meet and
satisfy customer demands globally.

1.5 Project Justification

 The desire to ensure customer satisfaction faster through meeting their increased
customer demands.
 Availability of improved technology with which through different internet platforms
people are easily accessible to the products, web fashion shop different products are
accessed through the website.
 The desire to create jobs to the unemployed people mostly youths through employing
them as online sales agents justifies the starting up of the project.
 The desire of developing my own brand clothing’s in the fashion industry is one of the
justification of starting up the project.

1.6 Expected Outputs

The expected outputs will be

1.modelling clothes
2.high waist pants
3.denim shirts
4.fancy dresses

1.7 Expected outcomes

 Creation of jobs to people

 Improving on online shopping
 Promoting various kinds of fashionista clothes in the industry
 Ensuring customer satisfaction

CHAPTER TWO

PRODUCT DESCRIPTION

2.0 Introduction

The chapter presents the clothing’s offered, unique designs basing on different age, sex, styles

2.1 Products to be offered

2.1.1 Modelling clothes

These will be basically basing on different culture, photogenic, environment, occasions

Size, ambition towards one’s desire for instance basing on nature, creativity that could be made
from leaves, papers, plastic.

Illustration
2.1.2 High waist pants

These pants will be made either as long or short pants in different colors ,styles so that there is
a variety for selection and they will be basically for ladies, youths.

Illustration
2.1.3 Denim shirts

These shirts will be from thick cotton cloth blue in color jean like being made for both the ladies
and gentlemen and can be designed differently to adopt various fashion looks.

Illustration
2.1.4 Fancy dresses
These are the dresses that will be made for party with which when won they will make one
recognized as a famous person and this promote fashion as means of communication basing on
appearance.

Illustration
2.2 UNIQUENESS OF THE PRODUCTS

The modelling clothes will be more based on nature that is green but presented in various
designs. And they will mostly be based on creativity that is making different shapes sizes so that
at most there are variety to be selected basing on choices of different customers.

 High waist pants are to be unique in a way that the waist is to be done inform of wool
and elastic, tight and with buttons either sides in different colors and sizes for both the
young and old age brackets.
 Denim shirts will be blue in color with collars for both women and men though with
women they will be inform of crop tops attached with pictures on one side, with men
the drawings are to be at the back.
 Fancy dresses, for one to be famous these will be in different colors, tight with sleets on
sides for elegant ladies ready for occasions.
2.3 BENEFITS OF PRODUCTS TO TARGET MARKET
 Modelling clothes will develop creativity and will also allow models to work together to
realize different ideas creating artistic compositions in different textures.
 High waist pants are more comfortable since they wholly provide confidence to ladies
mostly when seating on bikes, require simple tops that really suit hot weather.
 Denim shirts will gain popularity to men and women since they are durable and tend to
reveal the appeal of fashion when won and they are easily adapted by people when
designed in different trends.
 Fancy dresses will be worn by most elegant people on parties because they will owe
them reasons to talk to strangers and feel less socially awkward.

CHAPTER THREE

INDUSTRY AND COMPETITIVE ANALYSIS

3.0 Introduction

This chapter entails the industry description, trends of the industry, growth opportunities, key
success factors and SWOT analysis.
3.1 Industry Description

Racens Classy Designer lies under the fashion industry. The fashion industry includes
encompassing the design, manufacturing, distribution,marketing,advertising and promotion of
all types of apparel that is for men,women,children.Ecompassing the design involves generating
an idea and then turn into any design, manufacturing is working upon the design using required
raw materials that is denim to make denim shirts distribution involves making the final
designed product to the customers or instance with the web fashion shop supply chain involves
the manufacturer >>>retailer >>>consumer that is when an order is placed the retailer delivers
to the final consumer. Advertising involves using internet that is through the website,
Instagram, twitter, titok account.

3.2 Industry trends

Fashion market is expected to be growing at growth rate 6.5% in the forecast period of 2023 t0
2027.The increasing demand of customer products and changing fashion trends will be of help
in escalating the growth of the fashion market. The changing technology, fashion designs, faster
delivery, sponsoring adverts, influencer packages that is using celebrities as models to promote
certain fashion style, design of cloth are some of the factors expected to drive the growth of
fashion web market in the forecast period of 2022 to 2027.However according to market
research globally conducted should opt for online shopify when it comes in web fashion shops
since it has more payment options and it builds online stores and hence this will increase the
sales and market share basing on forecast period.

3.3 Growth Opportunities

 Reinforcing the value for money proposition, since online customers find it easier
comparing prices across fashion categories and brands then should focus on finding the
right price points and ensuring customers getting excellent value.
 Balancing inventory and availability, directing customers where there is stock and
redirect them when stock is unavailable.
  Offering faster deliveries, logistics are key elements of e-commerce business models so
emphasize on guaranteeing reliable, fast deliveries.
 Availability of internet and social media platforms like Facebook, Instagram, enabling
generation of more sales through customer attracted.

3.4 Key Success Factors

 Competitive advantage, this will basically base on the supplies you are dealing with for
that case the best supplier should be selected to offer quality products timely in order to
meet customer increasing demands.
 Creation of a good relationship with customers, the relation between customers and the
fashion shop will highly support its growth since their loyalty will force them to support
u always.
 Adapting the scan code of the product that is to really confirm that the clothes being are
from the original place where the order has been placed to ensure your customers are
offered quality designs.

3.5 SWOT Analysis

SWOT Analysis is a strategic planning technique used to analyze the strengths, weakness,
opportunities and threats that are related to business competition and project planning. The
SWOT stands for Strengths, Weakness, Opportunities and Threats.

The SWOT analysis below shows the factors that could possibly influence any fashion business
in Uganda either positively or negatively. Factors that have a positive effect on the business
projects are strengths, factors that would positively affect the business project in the future are
opportunities where as the ones that affect the business project negatively are weakness and if
there is a possibility of the factor to affect the project negatively in the future then it is a threat.

The SWOT Analysis for Racens Classy Designers is as seen below.

STRENGTHS
  Strong leadership exercised by top management which will encourage team work within
Racens Classy Designers’ organization.
 Faster buying process, customers spend less time shopping for what they want.
 Availability of well-designed website that clearly makes description of the brands,
fashion designs available for sale.
 Cheaper startup cost, to the new business owners as starting up the Racens Classy
Designers project the overhead costs were low that is mostly internet that was required
for the conduct of the project at start.

WEAKNESS

 Mistrust among the supplier and customer since involves use of internet limiting human
interactions making it difficult to build up trust within business.
 Fraudsters arise due to the rise of internet and in this case fake business tend to be
copyrights of the origin misusing financial details hence losing customer outreach.
 Technical problems normally dealing with websites they experience downtimes and this
eventually stops customers from doing any business transactions.

OPPORTUNITIES

 Availability of internet which will make it easy to access relevant information about
different trends of fashion, changing customer needs, target which will be helpful to the
Racens Classy Designers.
 Availability of ready market for clothing’s, due to increased innovation consumers have
increased expectations from outlets across the board which has increased their demand
for online clothing’s supporting Racens Classy Designers.
 Availability of online stores that are built through shopify that provide consumers with
an easy way to get their goods providing more experience of the brand rather than
selling items persuading more customers.
 Accessibility of customer knowledge and satisfaction for these enable offering products
and services that meet their needs. Desires and demands hence limiting customer loss.
THREATS

 Low conversion rates, since most people opt to touch, feel and try on clothes hence
calling for making online experience as close as possible to real life like use of videos
that show products from all directions.
 Confusing size charts, there requires standardized charts to make sizes understand
regardless of store and brand hence questions will be generated in need of sizes which
is normally confusing to both supplier and customers since there is no physical contact.
 Return rates of sales, most clothes when not fit to the customer are returned since
there are no chances of trying them out to prove on how better they will look on them.

CHAPTER FOUR

MARKETING PLAN

4.0 Introduction

This chapter entails the target market, the needs being addressed, and the marketing mix.

4.1 Target market

The target market for Racens Classy Designers will be;

 Internet users across the globe

 The youths globally
 Models across the globe
 Elegant ladies and gentlemen

4.2 The needs being addressed

The needs that will be addressed will include the following;

 Increased customer needs will be addressed through establishing a website for our
online shop that will offer the products available in stock identifying each brand and
using online sales agents that will ensure that customer orders placed are quickly
attended to ensure their satisfaction.
  Mismatch of goods ordered and delivered will be addressed through setting
standardized charts that will display various sizes onto to be sold so that as one selects
the kind of size fit for them it should be that as one selects the kind of size fit for them it
should be that easy for the supplier to identify the exact size for the customer to avoid
mismatch of products in terms of delivery.

4.2 Marketing Mix

Marketing mix refers to a term used to describe a set of marketing tools that a firm uses to
attain its marketing goals and objectives in the market. This is explained using the 7p’s which
include product, price, place, promotion, process, people, and physical evidence as explained
below.

4.2.1 Product

The company will deal in the production of modelling clothes, high waist pants, denim shirts,
fancy dress which are different fashion trends to be offered by Racens Fashion Designers.

4.2.3 Pricing

The project will price its products basing on the brand, costs incurred from when its sourced
from the manufacturer till to be delivered and the perceived value for the manufacturer till to
when it’s to be delivered, and the perceived value for the products in terms of quality and
quantity that customer intends to purchase and can be used methods like cost plus pricing.

4.2.3.1 Pricing list

Table 1; Price list

S Product Description Selling price per

N cloth UGX
1 Modelling dozen 480,000
 clothes
2 High waist dozen 360,000
pants
3 Denim shirts dozen 600,000
4 Fancy dresses dozen 720,000

4.2.3 Place

Racens Fashion Designers are to be dealing in online selling that is with help of their website
and other social media platforms that is Facebook, titok, Instagram. Besides it holding online
business it has it stores in Kazo village, Kazo ward parish, Kawempe Division Kampala Uganda
where its physical location is that online business is conducted.

4.3.4 Promotion

The project will promote its products plans to reach out to its esteemed customers through
influencer packages that is using celebrities when to promote a brand design for the first time
to persuade customers. The project will promote its products through advertising through
various platforms that is opening different accounts on Instagram, Facebook, titok to create
awareness about the products to different customers. The project will promote its products
through sponsoring ads on media platforms that will attract and convince customers onto
viewing their different brands on sale.

4.3.5 Process

This refers to the flow of activities through which it takes for desired product to be produced
that is under supply chain there are various participants and in this case we evidence products
from the manufacturer to the wholesaler who is selling the products through the online
platform using a website shop and then to retailer who also delivers them to customers and
also delivers them to customers and also evidence products directly from wholesaler to
consumer eliminating the middle men.

4.3.6 People
The fashion shop will train some agents in order to import them the relevant customer handling
skills since for business to grow there should always be a good relationship with its customers
to be able to operate in the market and also to easily out compete.

4.3.7 Physical evidence

For this case since Racens Fashion Design is an online web fashion shop it is likely to have no
physical area of operation except it operates through a website that identifies it.

CHAPTER FIVE

OPERATIONS PLAN

5.0 Introduction

This chapter entails the location of the business, raw materials, machinery and equipment, the
production/service delivery process, business capacity, quantity to be produced and handling
competition, quality assurance, utilities and waste management, show quantities, sources and
prices for relevant items indicated.

Racens Classy Designers will be an online business operating on various platforms as a web
fashion shop, though physically can be contacted in Kazo village, Kazo Ward Parish, Kawempe
Division, Kampala Uganda.

5.2 Machinery and equipment

Racens Classy Designers use machinery and equipment like bar tack machine, pattern sewer,
Janome DC5100

 Bar tack machine

This will be used for sewing on the belt loops on all grounds and also create the stitch that tacks
onto the waistline mostly for the high waist pants.

 Janome DC5100
This will be used for a wide range of sewing applications and automatic thread tension control

mostly for making fancy CC

dresses.

 Pattern sewer

This will be used for tracing parts of a garment onto knitted fabrics before being cut out and
assembled and it can be used for various cloth designs.
5.3 Table; Machinery and Equipment

ITEM COST SOURCE

Bar tack 1,500,000 China
machine
Janome Dc 2,500,000 China
Pattern sewer 3,000,000 China

PRODUCTION PROCESS

The production process for the production of denim shirts as seen below

 Collection of cotton

Cotton comes from fields all over the world. The length of cotton fibers determines the
toughness of the denim fabric.

 Blending the cotton

With this cotton is made pure free of seeds and weeds to ensure consistent quality of cotton.
And then the pure blended cotton fibers are then combined into silver.

 Spinning of cotton

Six cotton silvers are stretched and combined creating one strong. And this silvers is pulled and
twisted into a strong thread for stretching denim elastase rubber like is twisted to ensure
stretching ability.

 Dyeing of thread

Most denim are colored in blue indigo color. Threads are dipped in large tubes with indigo color
and pulled up in the air on large drums for reaction with Oxygen to form blue and dipped
repeatedly.

 Weaving of denim
Colored threads are weaved to make denim. Closely noticing denim shirts twill pattern of blue
and white threads are weaved forming a denim pattern.

 Coating and shrinkage of cotton

Preventing the fabric from twisting after its sown, its softened and stretched. And the same
time it is heated and shrunk to make sure the shirt stays the same size after its sold.

 Quality control of denim

Before denim leaves the fabric mill it undergoes a strict quality control and here any defects of
color and fabric are detected for consistent quality.

2.The production process for high waist pants is as seen below

 Create the high waist pants pattern

With this it is done through folding the pants on top of each other with the front of the jeans
facing out and placed on the work surface and crotch mark is made to the point at the bottom
of the zipper.

 Cut the new jeans at the crotch

Cut out the shape you just drew from the front of the pants and should not try doing both front
and back together because it maybe too thick to cut all at once, for that case once the front
crotch piece is cut, the hole onto the back is out as well pinned and sown.

 Sew up the crotch

Pants are turned inside out the new crotch pinned opening together making sure that they are
lining up the side seams, finally achieving the high waist pant.

3.Production process for fancy dresses

 Sourcing fabric

For as dresses cover a host of occasions from evening wear to casual style, so finding perfect
quality material matters for all options to be considered.
  Creating dress patterns and reviewing samples

Once the right quality is found, then patterns are made and this is mostly done by the pattern
cutter professionals so patterns can be graded to perfectly fit each size.

 Choosing a clothing manufacturer

When all designs are finalized, it’s time to find the clothing manufacturer wished to work with a
sew port. With everything prepared fabrics, patterns, CMT pattern takes the tech pack and
designs together and extras to complete the final product.

4.Production process for modelling clothes

 Consulting the brief

With this design often receive requests from managers, clients who want to design a particular
fashion projects and it’s their job to meet the demands of client create product design that fit
the style, values, and need to derive passion for the outfit.

 Finding inspiration

For fashion is more than just clothing worn but the way it is worn and visual story it tells and
hence whether designing designers seek for inspiration more so for moods that is they pull it
from resources like art, history, architecture.

 Sketching ideas

Sketches enable mentally visualize designs presenting ideas in a tangible form giving the image
another viewpoint.

 Honing in on the design

Designers use a mood board to hone in on their design style and their reference points organize
inspirational concepts and see which creative ideas strike the most interest.

 Choosing fabric
Designers have to select the right type of fabric to express their design ideas adequately and
with this research made on weight, thickness construction of their fabric selection for better
understanding how they fit, move and drape on human body.

5.5 Human Resource Capacity

In relation with supply chain management, it is important for the owner of the online business
to understand every step of the supply chain, in order to know how to price their products and
know ability to grow their business. Though on the other hand one cannot manage the
operations of the entire business and so there is need to employ human resource that is
Director of Ecommerce, Human Resource Manager, Financial Manager, Information and
Technology, Marketing manager, Global Project Manager, Manager Ecommerce Operations.
Perhaps of the start they will employ 7 workers to carry out its operations.

5.6 Production Capacity

This talks about how much the company intends to produce as illustrated in the table below.

Table3; Quantity produced

SN Product to be Quantity Quantity produced Quantity Quantity

produced produced per Per week produced produced
day Per month Per year
1 Denim shirts 20 140 560 6,720
2 High waist pants 20 140 560 6,720
3 Modelling clothes 10 70 280 3,360
4 Fancy dresses 15 105 420 5,040
5 Total quantity 65 455 1,820 21,840

5.7 Competition handling

  Knowing unique selling point, a unique selling point is what differentiates a brand from
others for instance what target audience truly care about and have differentiated this it
should be indicated on the website all the places where customers’ eyeballs are caught.
 Understanding audience, is especially through understanding their needs and points for
much data as possible is gathered upon customers and their purchasing behaviors to
witness why they have to click ‘’Buy Now Button”
 Establishing business niche, for a crowded market place clearly communication with the
audience creates an edge over your competitors and this is done through looking at
domain name for instance www.stylishracenfashions.store with store adding more
meaning to the domain.
 Engage with customers for its so important to create a continuous two- way dialogue
between your brand and users so have to be active on social media get involved in
conversations that prospective customers are passionate about.
 Provide great customer experiences, when customers have great experience with the
business it is likely for them to come back increasing their satisfaction levels improving
marketing efforts through word-of mouth.

5.8 Quality Assurance

 Continuous innovations and inventions will be made. Besides outsourcing

manufacturers, fashion brands also design innovation to their suppliers to ensure quality
improvement and management for higher profitability.
 Maintaining short lead times and low costs, for is a key to success for fast fashion
sectors to ensure quick delivery of quality products free from risk and accessed at low
costs.
 Selecting the best and appropriate suppliers, determination of quality is all focused and
based on the source of raw materials that is the core that determines the quality
clothing to be designed for example if good clean cotton is used, fabric will be of quality
to produce quality designs. Through right supplier selection, quality is maintained in the
operations department.
  Risk management, ensure quality products customer requirements should be fulfilled,
preventing defects by setting a methodology to reach zero defects and quality measures
through minimizing costs incurred in achieving quality products within operations
department.

5.9 Utilities management

Their business will use technology and security as its utilities. The project will conduct using
internet to contact the preferred service providers to connect to their business through setting
a website that will differentiate their brand. The company will also employ theft profession
specialists to safeguard their website from fraudsters and conmen.

Table4; Price for utilities

S Item Cost per Cost per

N month year
1 Technology 200,000 2,400,000
2 Theft 500,000 6,000,000
profession

5.9 Waste management

The project will manufacture in large quantities of the same style in different colors of prints as
cutting and production is easier with efficient marker marking for multiple choices to reduce on
waste.

CHAPTER SIX

MANAGEMENT PLAN

6.0 Introduction
This chapter encompasses organizational structure, project management team, job description,
job satisfaction and the reward of Racens Classy Designers.

6.1 Organizational structure

This refers to the method by which work flows through an organization. It allows groups to
work together within their functions to manage tasks.

Illustration

Figure 1; Organizational Structure

Director of
Ecommerce

LOGISTICS MANAGER
FINANCE HUMAN INFORMATION TECHNOLOGY
MANAGE RESOURCE

MARKETING R
GLOBAL PROJECT MANAGER
MANAGER ECOMMERCE
MANAGER MANAGER OPERATIONS

Table 5; Job qualifications, duties, and responsibilities

SN Job Qualifications Duties and responsibilities

1 Director Of Bachelor’s Degree related in field such
Ecommerce as Business Administration, Marketing,  Creating a strategic plan to
Computer increase sales by developing
Science new products updating
10 years of experience in variety website content.
Of industries, technology and finance  Organizing and overseeing
the company’s online
advertising campaigns to
 generate traffic to website.
 Strengthening relationships
with existing suppliers to
ensure steady product flows.
 Managing the marketing
budget to ensure that it
aligns with the goals
campaign.
 Determining which online
channels are most cost
effective for reaching target
audiences.

2 LOGISTICS Bachelor’s Degree in logistics, supply chain  Manage warehouse
MANAGER Management inventory and keep records
2years associate degree and work of inventory
experience in logistics field  Select carriers for
transportation and negotiate
rates and contracts with
carriers
 Keep up –to-date on shipping
carriers, routes and rates and
any changes to them.

3 MARKETING Bachelor’s degree in marketing, business  Help develop creative briefs

MANAGER 5years of experience in field of marketing, and guide creative direction
sales to meet objectives for all
advertising, digital and video
assets.
  Conceptualize and execute
on multichannel campaigns
across the prospect and
customer lifecycle.
 Gather customer and market
insights to inform outreach
strategies increase
customer’s conversions.
 Identifying effectiveness and
impact of current marketing
initiatives with tracking and
analysis optimize accordingly
4 GLOBAL PROJECT Bachelor’s degree in Business  Overseeing the creation of a
MANAGER Administration, product/service that will be
Engineering. Master’s degree in project sold in multiple countries
management  Managing teams of
5years of experience and above designer’s developers, and
other professionals who
work on this project full time
 Communicating with clients
to understand their needs
and expectations
 Making sure that project
objectives are met by
ensuring that team members
are completing their task
5 MANAGER Bachelor’s degree in Business  Assisting with product
ECOMMERCE Administration, Management, Computer development and pricing
OPERATIONS Science strategy for new products or
 2-4 years’ experience
6 FINANCE MANAGER Bachelor’s Degree in accounting with a
CPA 4years of experience in accounting
7 HUMAN RESOURCE Bachelor’s Degree in Human Resource
MANAGER Management
3years experience
8 Information and Bachelor’s Degree in Information
Technology Technology, Computer Science
Minimum of 3years of experience in
Information Technology
services.
 Evaluating website
performance to determine
which elements are
performing well and which
need improvement
 Developing cash flow
statement
 Budgeting for the company
 Making the financial
forecasts
 Providing advice in making
financial decision
 Recruiting and hiring of new
employees
 Keeping track of employee
performance
 Managing and improving
communication within in the
organization
 Creating a safe working
environment for the workers
 Carrying out performance
appraisal of workers
 Maintain computer
infrastructures of the
company
 Assist new users with
computer and software
 issues
 Train employees on new
systems
 Monitor ongoing contracts
with suppliers
 Ensure compliance with
quality standards
 Maintain and troubleshoot
email systems
 Write and implement
website code

6.5 Reward System

Reward systems in an organizations are used for variety reasons. Reward systems influence the
job satisfactions and performance attendance and retention, employee commitment in the
organization and job satisfaction. Extrinsic and intrinsic rewards will be used.

6.5 Extrinsic rewards

These are physical and tangible rewards in monetary form. These include the following

 Salary rises. They will be given to hardworking employees. This will motivate employees
to grow their skills and competence. Eventually, we shall realize increased productivity
and performance within the organization.
 Gifts; These will be considered short term. They will mainly be prevented as a token of
appreciation for an achievement of organizational desired goals.
 Promotion; Employees shall be motivated to contribute all their efforts in order to gain
the management’s trust and acquire their delegation and responsibility.

6.5.2 Intrinsic Rewards

These are psychological rewards that employees get from doing meaningful work and
performing it well.

 Recognition; The employees will be recognized through verbal appreciation for the new
creativity in handcrafts and art designs’
 Trust; This is a vital aspect amongst individuals in order to add value to any relationship.
 Information; Information will give guidance to employees and also create a bond and
add value to the relationship of managers and employees.

Table6; Salary Reward

SN Worker Pay per Monthly pay Pay per year

worker
1 Director of Ecommerce 2,000,000 24,000000
2 Logistic manager 950,000 11,400,00
3 Marketing manager 750,000 9,000,000
4 Global project manager 1,000,000 12,000,000
5 Manager Ecommerce 900,000 10,800000
operations
6 Human Resource Manager 700,000 8,400,000
7 Finance Manager 750,000 9,000,000
8 Information Technology 850,000 10,200,000

CHAPTER SEVEN

FINANCIAL ANALYSIS

7.0 Introduction

This chapter talks about the startup capital, source of funds and associated costs, fixed and
working capital requirements business expenses and profitability, financial projections.

7.1Start up capital
The project is estimated to start up the operations with estimation of 35,000,000shillings.

7.2 Source of finance

Sources will include personal savings of the proprietor amounting 10,000,000shillings 5,000,000
as family contributions and 20,000,000shillings as bank loan.

Table7; Source of funds

SN Details Amount
1 Personal Savings 10,000,00
0
2 Family 5,000,000
contributions
3 Bank loan 20,000,00
0
Total 35,000,00
0

7.3 Fixed capital requirement

This looks at the capital required for fixed assets

Table8; Fixed assets

S Details Estimated
N Cost
1 Bar tack 1,500,000
machine
2 Janome 2,500,000
Dc5100
3 Pattern Sewer 3,000,000
4 Building/store 5,000,000
 5 Total cost 12,000,000

7.4 Estimated Working Capital

This will include inventories, cash, bank balance

SN Details Cost
1 Inventorie 141,220,000
s
2 Cash 5,000,000
balances
3 Bank 8,000,000
balance

7.5 Business Expenses

These are operating expenses that the project will incur.

Table10; Operating Expenses

SN Details Monthly Costs per

costs year[UGX]
1 Raw
materials
cotton 850,000 10,200,000
fabric 950,000 11,400,000
2 salary 7,900,000 94,800,000
3 Transport 300,000 3,600,000
4 Technology 200,000 2,400,000
5 Theft 500,000 6,000,000
 profession
6 Advertising 200,000 2,400,000
7 Other 500,000 6,000,000
expenses
11,400,000 136,800,000

7.6Estimated sales

Table 11; Sales

S Details Quantity per Unit Sales per Sales per Per Per year
N day cost day week month [000]
[000] [000]
1 Modelling 10 40,000 400,000 2,800 19,200 23,400
clothes
2 High waist 20 30,000 600,000 4,200 16,800 201,600
pants
3 Denim shirts 20 50,000 1,000,000 7,000 28,000 336,000
4 Fancy dresses 15 60,000 900,000 6,300 25,000 302,000
Total 2,900,000 22,300 89,000 863,400

7.7 Estimated profitability

The estimated profitability for the period of five years is got by using the income statement

Table12; Income statement

RACENS INCOME STATEMENT

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31st2023-2027

YEAR 2023(shs) 2024(shs) 2025(shs) 2026(shs) 2027(shs)
Estimated 863,400,000 868,600,000 863,800,000 864,000,000 864,200,000
sales
Estimated 5,000,000 7,000,000 8,000,000 9,000,000 10,000,000
cost of sales
Estimated 862,900,000 856,600,000 855,000,000 855,000,000 854,200,000
gross profit
Operating
expenses
Raw 21,600,000 22,800,000 24,000,000 25,200,000 26,400,000
materials
Salary 94,800,000 94,800,000 94,800,000 94,800,000 94,800,000
Transport 3,600,000 3,800,000 4,000,000 4,100,000 4,300,000
Technology 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000
Theft 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000
profession
Advertising 24,000,000 2,000,000
Other 6,000,000 6,200,000 6,500,000 6,800,000 7,000,000
expenses
Total (136,800,000) (136,000,000) (139,700,000) (132,500,000) (179,600,000)
operating
expenses
Net profit 726,100,000 720,000,000 716,100,000 722,500 674,600
Table13; BALANCE SHEET

RACENS CLASSY DESIGNERS

BALANCE SHEET

FOR THE YEAR ENDED 31st DECEMBER

2023-2027

Details 2023(shs) 2024(shs) 2025(shs) 2026(shs) 2027(shs0

NBV NBV NBV NBV NBV
Assets
Non-current
assets
Bar tack machine 1,500,000
Janome Dc5100 2,500,000
Pattern sewer 3,000,000
Building 5,000,000
Total non-
current 12,000,000
assets
Estimated
current
assets
Cash at hand 5,000,000 7,000,000 9,000,000 11,000,000 13,000,000
inventory 141,220,00 148,000,000 150,000,00 156,000,000 160,000,000
0 0
Cash at bank 8,000,000 10,000,000 12,000,000 13,000,000 15,000,000
Total current 154,220,00 165,000,000
assets 0
Total assets 166,220,00 165,000,000 160,200,00 180,000,000 188,000,000
0 0
Liabilities and
equity
Long-term
liabilities
Bank loan 2,000,000 2,000,000 2,000,000
Total long term 2,000,000 2,000,000 2,000,000
Current liabilities
License 250,000 250,000 250,000 250,000 250,000
Raw materials 21,600,000 22,800,000 24,000,000 25,200,000 26,400,000
Salary 94,800,000 94,800,000 94,800,000 94,800,000 94,800,000
advertising 2,400,000 2,000,000
technology 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000
Theft profession 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000
Other expenses 6,000,000 6,200,000 6,500,000 6,800,000 7,000,000
Total current 135,450,00 114,050,000 116,350,00 130,050,000 136,850,000
liabilities 0 0
Equity
Share capital 26,050,000 21,750,000 27,250,000 32,750,000 38,000,000
Retained profits 31,220,000 37,400,000 35,500,000 41,900,000 44,100,000
Total equity 57,270,000 59,150,000 62,750,000 74,650,000 82,100,000
TOTAL EQUITY 192,720,00 173,200,000 179,100,00 204,700,000 218,950,000
AND LIABILITIES 0

7.8 Financial Projection

The financial projections for the period of 5years are illustrated using a cash flow
statement
Table14; Cash flow Statement

RACENS CLASSY DESIGNERS

CASHFLOW STATEMENT
FOR THE YEAR ENDED 31st DECEMBER 2023-2027

Particulars 2023(shs) 2024[shs] 2025(shs) 2026(shs) 2027(shs)

1.Cashflow
from
Operating
activities
Sales 863,400,000 868,800,000 863,800,000 864,000,000 864,000,000
Raw (21,600,000) (22,800,000) (25,200,000) (25,200,000) (264,000,000)
materials
salary (94,800,000) (94,800,000) (14,800,000) (94,800,000) (94,800,000)
technology (2,400,000) (2,400,000) (2,400,000) (2,400,000) (2,400,000)
Theft (6,000,000) (6,000,000) (6,000,000) (6,000,000) (6000,000)
profession
transport (3,600,000) (3,600,000) (3,600,000) (3,600,000) (3,600,000)
advertising (2,400,000) (2,000,000)
Other (6,000,000) (6,000,000) (6,000,000) 6,000,000 (6,000,000)
expenses
Net Cash 726,000,000 733,000,000 731,000,000 850,200,000 725,000,000
flows
2.Cashflows
from
Investment
activities
building (5,000,000)
Bar tack (1,500,000)
machine
Janome Dc (2,500,000)
Pattern (3,000,000)
sewer
License (250,000) (250,000) (250,000) (250,000) (250,000)
Net Cash (12,250,000) (250,000) (250,000) (250,000) (250,000)
flows
3.Cashflows
from
Financing
activities
Personal 10,000,000
capital
Family 5,000,000
contribution
Proceed 20,000,000
from loan
Loan 2000,000 2,000,000 2,000,000 2,000,000 2,000,000
payment
Net Cash (35,200,000) (2,000,000) (2,000,000)
flows
Net cash 25,150,000 71,050,000 70,850,000 849,950,000 724,750,000
flows
Cash at the
beginning 96,200,000 167,050,000 1,017,000,000 725,767,000
Of the
period
Cash at hand 96,200,000 167,050,000 1,017,000,000 725,767,000 1,450,517,000

CHAPTER EIGHT
BUSINESS SUSTAINABILITY
8.1 Introduction
This chapter looks at how Racens Classy Designers will achieve societal
and environmental values that will enable the company to survive for a
long period of time.
Racens Classy Designers will contribute towards achieving the societal
and environmental values through the following ways
The company will provide employment opportunities to residents of
Kawempe and around the globe by employing them to work in the
company as finance managers, information technology, logistics manager
thus improving their standards of living and thus will bring about its
sustainability.

The company will also be a sustainable source of income to the owner of

the company and this income will be invested for the long run survival of
the company hence its sustainability

The company will also reduce the number of stops in the chain ensuring
lean supply chains, Just In Time suppliers that will ensure timely delivery
hence retaining customers and hence its sustainability.

The company will continuously conduct market research, bench mark

from the already existing participants in the fashion world so as to
increase on product variety meeting changing demands hence
sustainability.

The project will boost clothing production in the society since it will be
offering different styled clothing’s that will be perceived by people in the
society.

CHAPTER NINE
SPECIFIC KNOWLEDGE AND SKILLS APPLIED
9.1 Introduction
This chapter discusses the specific knowledge and skills that I have
applied to develop the project proposal for Racens Classy Designers.
The following is the knowledge and skills that I applied when coming up
with this business proposal.
Communication skills, the communication skills were used to
communicate with the supervisor during the guiding sessions for the
project proposal.

Analytical skills, I used this to analyze the estimated expenses against the
estimated sales as a way of establishing the estimated profitability of the
project and also the financial projections.

Computer skills, I used to carry out research over the internet and typing
skills to get more knowledge about the highly profitable and trending
clothes on internet and typing my write-up into a final document
.
Accounting knowledge and skills this was used in preparing the financial
statements like the cash flow statement, income statement, and balance
sheet.

REFERENCES
Fung.S.(2010); An assessment of the changing world of manufacturing,
Drapers Fashion Summit 2010, London, November 16-17.
Moore, C.M; Birtwistle, G (2004); The Burberry mode; creating an
international luxury fashion brand, in; The International Journal of Retail
and Distribution Management, Vol.32, No.8, pp. 412-422.