Project “A men Fashion shop” FOREWORD Thai Nguyen Province is one of the political-economic centers of Viet Bac region, in particular, and of the northeast mountainous areas in general It is also the socioeconomic exchange center between mountainous areas and northern delta area On the other hand, Thai Nguyen is also widely known as the third biggest center for people training just behind Hanoi and Ho Chi Minh City with universities, 11 colleges, vocational schools and vocational centers As a result, this province is populated heavily with students and peoples The need for clothes and entertainment cannot be absent Whiles, in 2008, Thai market was completed for use This market is in modern design, big size and operates as a big trading center for Thai Nguyen Province and the whole northeast region as well This is very suitable to develop stalls of products and services for daily needs such as food, cuisine, entertainment, jewelry, groceries, accessories and particularly for fashion clothes In fact, there are quite many fashion stalls of all size attracting a lot of customers However, such stalls mainly specialize in women fashion The vacancy for men fashion is very rare With great advantages and potentials of this field, our group has chosen and made the project “A men fashion shop” in this region Objectives To combine learned knowledge with researches in making the real project “A men fashion shop” in Thai market, the objectives of this project are: - Gain profits for investor - Meet the demand of men fashion for people, students in the province - Contribute to provincial economic development under policies of Vietnamese Communist Party, State and the Province Scope: “ Men fashion shop” is a small-sized project So in its first phase, it just focuses on meeting clothes demand of people, students in the City and the whole province Therefore, feasibility study and project design focus on basic items Implementing method: Use study method of secondary information source to assess and plan the project Contents: Apart from foreword and conclusion, the project includes the following two parts: Part 1: PROJECT OVERVIEW Part 2: PROJECT PLANNING PART 1: PROJECT OVERVIEW 1.1 The necessary of investment At present, society is developing together with increasing living conditions for people For clothes, nice style is not only for women but also for men This leads to a demand in variety of types, quality of clothes However, fashion shops now mainly serve women Fashion shops for men are in very small number, which cannot meet the demand of fashion for man The demand for fashion now not only attracts women but also men However, the number stalls for men fashion in Thai market just counts for 1/3 of those for women Moreover, styles, types of men fashion are still limited while demand of customers is very high Therefore, it is necessary to open a men fashion shop in Thai market to meet customer’s demand This project is feasible and highly profitable 1.2 Project summary - Project name: A men fashion shop - Investor : Students of MBA B03 – Group - Place of investment : Thai market - Type of investment : Direct contribution - Objective and duties : To meet demand for fashion of men in Thai Nguyen city and neighboring areas To gain profit, contribute to socio-economic development of Thai Nguyen province - Investment basis : Provincial policies in economic development and 2005 Law on Trade - Total capital : VND250,000,000 - Main products : Men fashion (clothes) - Technology and equipment for the project - Sources of materials : Big markets such as Dong Xuan market, border gates in Lang Son, Mong Cai or from wholesalers - Time : January, 2013 - Market: Thai Nguyen city and neighboring areas - Financial effectiveness: profit - Socio-economic effectiveness: promoting economic development of the province, meeting demand of fashion for men in Thai Nguyen City and neighboring areas 1.3 Feasibility study 1.3.1 Socio-economic aspects Although this project is not big in scale, it will bring socio-economic effectiveness to the province : - It will bring profits to the investor - Demand for fashion of men is very high Upon operation, this project will help provide enough clothes for men in the city, in general, and for male students in universities, colleges and schools in particular - It will increase State budget through sales tax and business tax 1.3.2 Legal aspect A legal project is that makes no violations to national security and defense, environment, identity and legislation of Vietnam 1.3.3 Market aspects: The project is run in Thai market – a big trading center of Thai Nguyen Province built in the city center This area is very populated with high income According to the website of Thai Nguyen Department of Industry and Trade, 2011 GDP was 14.6%, GDP per capita was 30 million Vietnamese dong/person/year This reflects the increasing living conditions of people here, leading to high demand of fashion Number of customers: According to the 2011 survey, population of Thai Nguyen Province was about 1.2 million in which Thai Nguyen city counted for 330 thousand Additionally, there are universities, 11 colleges and vocational schools, vocational centers with dozen of thousands of students Target customers of the project is men in Thai Nguyen city and universities, colleges, schools Investigations reveals that men often go shopping at weekends and public holidays and their favorite destination is city center, particularly markets Therefore, a men fashion shop in Thai market is suitable with people’s income and will meet the lack of items, the taste of customers and attract customers from competitors 1.3.4 Technical aspects - Equipment for the project Due to its small size and its features of goods business, equipment for the project is simple including fans, stainless hangers, light bulbs etc and others such as chairs, curtains, broom - Products of project are men clothes and accessories such as shorts and socks - Types and styles of goods: depending on seasons and taste of customers - Place of project: In Thai market + This area is highly populated Therefore, consumption ability is very high +Security: This area is secured as it is under management of market supervision board - Environment: Waste from producing and consuming will be classified and collected within the day 1.3.5 Financial aspects 1.3.5.1 Capital mobilization method * Capital mobilization plans: - Method: mobilizing capital from members - Return: At the end of second year, the project will gain return and profit * Because capital for project is equity capital, it is necessary to take into account inflation and opportunity cost We have: -Inflation rate f= 6,2% ( based on the rate of early months of 2012 presented by Ministry of Investment and Planning in the web conference of the Government on ) - Interest rate ceiling: opportunity = 14%/year ( based on interest rate ceiling of State Bank of Vietnam ) Then rate r is as follows: r = (1+f)(1+ r opportunity) – 1= (1+0,062)(1+0,14) - 1= 0,2107or 21,07% * Time estimate for return and method of capital contribution: Capital for project is mainly in cash and the time for capital collection and contribution is weeks prior to the offset of the project 1.3.5.2 Determining total capital for the project Unit: VND No Item Fixed capital: - Expense for buying stalls Amount 138,656,000 130,000,000 - Expense for repairing stalls 1,000,000 - Expense for equipment 7,656,000 Current capital Provision capital 100,000,000 11,344,000 Total 250,000,000 Table 01: Total investment of the project * Estimated expenses - Expenses for equipment: Unit; VND Table 02: Expenses for equipment * Estimated expenses for buying clothes early months of spring and summer Unit: VND1,000 No Item Quantity Unit price Amount (Item) T-Shirts 90 30 2,700 T-shirts 200 100 20,000 Shirts 200 150 30,000 Underwear 60 15 900 Trousers 100 110 11,000 Jeans 80 150 12,000 Shorts 50 50 2,500 Trousers 80 160 12,800 Shorts 30 90 2,700 Total 82,720 Table 03: Estimated expenses for buying clothes for early months of spring and summer * Estimated expenses for buying clothes in successive months of spring and summer Unit: VND1,000 No Item Quantity Unit price Amount (Item) T-Shirts 30 30 900 T-shirts 50 100 5,000 Shirts 30 150 4,500 Underwear 20 15 300 Trousers 30 110 3,300 Jeans 30 150 4,500 Shorts 30 50 1,500 Trousers 30 160 4,800 Shorts 25 90 2,250 Total 27,050 Table 04: Estimated expenses for buying clothes in successive months of spring and summer * Total expenses for early months of spring and summer Unit: VND1,000 No Expense Amount Expense for buying clothes 82,720 Employee’s wages (1,000 x 2) Expenses for electricity and water 200 Expense for opening day 500 Others 700 2,000 Total 86,120 Table 05: Total expenses for early months of spring and summer * Total expense for each successive month of spring and summer Unit: VND1,000 No Expense Amount Expense for buying clothes Employee’s wages (1,000 x 2) Expenses for electricity and water 200 Others 500 Total 27,050 2,000 28,400 Capital contribution 1.1 Calculate expense and determine the amount of capital 1.2 Choose type and subjects of capital contribution 1.3 Negotiate, make contract 1.4 Sign 1.5 Get contract capital contribution Goods sources determination 2.1 List 2.2 target Investigate goods price, 3.Business registration choose and buy goods 2.3 Transport goods Nhóm: 03 Stall selection 3.1 Study legal procedures 4.1 Investigate place 3.2 Prepare business registration documents 4.2.Choose stall 5.1 Determin e necessary equipmen6.2 Make signs 3.3 Submit documents 4.3 Negotiate terms and conditions with market management Equipment board purchase 5.2 Investigate prices Nhóm: 03 Opening plan 3.4 Complete legal procedures 4.4 Make contract for purchase of stall 5.3 Buy and transport equipment 6.4 Arrange and decorate the shop 4.5 Sign contract 6.5 Open the shop 6.1 Determine the time 6.3.Print and handout leaflets Nhóm: 03 2.1.3 List code of items of the project No Task Code Detail A 1.1 B 1.2 C D E 1.3 1.4 1.5 F 2.1 Capital contribution Calculate expense and determine the amount Choose type and subjects of capital contribution Negotiate, make contract Sign contract Get capital contribution Goods sources determination List target goods 10 11 12 13 14 15 16 17 18 19 20 21 G H 2.2 2.3 3.1 3.2 3.3 3.4 4.1 4.2 4.3 4.4 4.5 I J K L M N O P Q Investigate price, choose and buy goods Transport goods Business registration Study legal procedures Prepare business registration documents Submit documents Complete legal procedures Stall selection Investigate place Choose stall Negotiate terms and conditions with MMB Make contract for purchase of stall Sign contract Previous task A A B,C D F G,Q E I J K E M N O P 27 22 23 24 25 26 27 28 29 30 31 5.1 5.2 5.3 6.1 6.2 6.3 6.4 6.5 R S T U V W X Y Equipment purchase Determine necessary equipment Investigate prices Buy and transport equipment Opening plan Determine the time Make signs Print and handout leaflets Arrange and decorate the shop Open the shop E R S,Q L,T,H U U U V,W,X Table 17: List code of items of the project 2.2 Estimate expenses and resources of the project 2.2.1 Estimated expenses and resources Estimated budget for the project is the plan to allocate the fund for activities in order to ensure the schedule of the project Project of “A men fashion shop” is funded by its members Expense is estimated bottom up, that is from specific item to general items Total fund for the project is VND239,930,000 - Estimate fund for the project: 28 Unit: VND1,000 No Item Quantity (Item) Unit price Amount 700 2,800 50 20 1,000 300 1,200 300 1,500 80 80 200 200 50 100 350 350 100 200 45 90 Equipment purchase expense - Stainless hangers - Wall stainless hangers - Plastic hangers - Wood hangers - Curtain for changing clothes - Mirror - Clothes pickers Furniture expenses - Standing fans - Compact lamps - Fluorescent lamps - Broom 29 - Waste collector - Chairs 30 30 10 10 120 120 90 30 2,700 200 100 20,000 200 150 30,000 60 15 900 Expense for buying clothes in the first month - T-shirts - T-shirt - Shirts - Underwear - Trouser - Jeans 100 110 11,000 - Shorts 80 150 12,000 - Trousers - Shorts 50 50 2,500 80 160 12,800 30 90 2,700 Expense for buying stall (5 years) Expense for repair 130,000 150 450 30 Expense for advertisement and promotion: - Print leaflets - Neon signs Expense for opening day Others - Relevant documents - Traveling - Telephone - Others 1000 0.2 200 700 700 2,500 2,000 1,000 500 300 Total 239,930 Table 18: Estimated budget for the project 2.2.2 Staff organization 31 The project “A men fashion shop” is a small one with low investment, short time for implementation, small sources and no requirements of high tech Therefore, the model in which the investor implements the project is applied Additionally, the investor will have other tasks such as repair, installation of hanger done Members contributing capital will directly involve in business activities No Item Task Workforce (persons) Te (days) Name Capital contribution Calculate expense determine the amount and A Minh, Hien, Su Choose type and subjects of capital contribution B Tu, Hien, Su, Minh, Tung Negotiate, make contract C Tu, Hien, Su, Minh, Tung Sign contract D Tu, Hien, Su, Minh, Tung Get capital contribution E 10,5 F 2 Hien Goods sources determination List target goods Su, Minh 32 Investigate price, choose and buy goods Transport goods G Hien, Minh H 2 Hien, Tu Business registration Study legal procedures I 2 Tung ,Tu 10 Prepare business registration documents J 1 Hien 11 Submit documents K 2 Tu, Su 12 Complete legal procedures L Hien Stall selection 13 Investigate place M Su, Minh, Tung 14 Choose stall N Tu, Su 15 Negotiate terms and conditions with MMB O 2 Tu, Su 16 Make contract for purchase of stall P 1 Hien 17 Sign contract Q Su, Minh R Tu, Su, Minh Equipment purchase 18 Determine equipment necessary 33 19 Investigate prices S 2 Hien, Tu 20 Buy and transport equipment T 2 Tung, Minh U V W X Y Opening plan 21 Determine the time 22 Make signs 23 Print and handout leaflets 24 Arrange and decorate the shop 25 Open the shop Minh, Hien, Tung, Tu, Su Tung Minh, Hien, Tung, Tu, Su Tung, Tu, Su Minh, Hien, Tung, Tu, Su Table 19: Staff organization for the project 2.3 Building schedule of the project 2.3.1 Time table for tasks of the project 2.3.1.1 Time for tasks of the project We have: 34 Te  a  4m  b Task Previous task Shortest duration (a) Medium duration(m) Longest duration( b) Te A - B A 1 1 C A 1 1 D B,C 1 1 E D 10 18 10,5 F A G F 13 H G,Q I E J I 1 1 K J L K M E N M 1 1 35 O N P O 1 1 Q P 1 1 R E 1 1 S R T Q,S 2 2 U L,T,H 1 1 V U W U X U Y V,W,X 1 1 Table 20: Duration of the project –Gantt diagram of the project 36 Calculate expense and determine the amount Choose type and subjects of capital contribution Negotiate, make contract Sign contract Get capital contribution List target goods Investigate price, choose and buy goods Transport goods Study legal procedures Prepare business registration documents Submit documents Complete legal procedures Investigate place Choose stall Negotiate terms and conditions with MMB Make contract for purchase of stall Sign contract Determine necessary equipment Investigate prices Buy and transport equipment Determine the time Make signs Print and handout leaflets Arrange and decorate the shop Open the shop Note Gantt line of the project Members in charge: Hien, Minh, Tu, Tung, Su Members in charge: Su, Minh Members in charge: Su, Minh, Tu Members in charge: Tung, Tu Members in charge: Hien Members in charge: Tung, Tu Su 37 CONCLUSION By analysis and calculation of the project “ A men fashion shop”, the implementation of this project is feasible, satisfying profit objective of the investor In addition, this project creates job opportunities for some people and ensures the sustainable development of the economy The project overview on size of the project, schedule, estimated budget help the investor understand tasks of the project, expenses and duration of such tasks Consequently, the investor can regularly inspect, monitor whether the implementation of this project follows schedule and ensure incurred time and expense at minimum level while satisfying required quality Through this project, the subject of project management not only helps students to consolidate knowledge, gain practical skills but also opens an actual business opportunity to those those knowing how to grasp opportunity to get success 38 ... development and 2005 Law on Trade - Total capital : VND250,000,000 - Main products : Men fashion (clothes) - Technology and equipment for the project - Sources of materials : Big markets such as... list and make tables to explain each task that are necessary This will help to determine what tasks belonging to and what tasks not belonging to the project The project A men fashion shop is a. .. Equipment purchase expense - Stainless hangers - Wall stainless hangers - Plastic hangers - Wood hangers - Curtain for changing clothes - Mirror - Clothes pickers Furniture expenses - Standing fans