International Baccalaureate

Higher Level Business Management

Internal Assessment

Research question:
“Should Wonder Sewing open a retail outlet to increase their customer base and market Comment [Office1]: Focused RQ

share in Indore?”

Research Proposal

Intended Audience: Managing Team of Wonder Sewing

Word Count: 415 Session: May 2022 Comment [Office2]: Meeting word count

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 Research Proposal Comment [Office3]: Meeting RP elements

Research Question:
“Should Wonder Sewing open a retail outlet to increase their customer base and market
share in Indore?”

Rationale:
Wonder Sewing is a Private Limited Company incorporated in 2019 by Mr. Ravindra Tolani and
Jitendra Tolani. They are operating into B2B format, wherein they are the main wholesaler for
Wonder Sewing Machine to other businesses. With the changing environment and people going
for self-employment opportunities, Wonder sewing sees an opportunity to capture a market of Solo
women entrepreneurs and thus, they are looking forward to open a retail outlet in the city of Indore,
to capitalize on the changing dynamics of customer preferences in this market and subsequently
increase their market share. So the RQ is:
“Should Wonder Sewing open a retail outlet to increase their customer base and market
share in Indore?”

Theoretical framework :
● SWOT Analysis: Will help in dwelling upon the internal external factors for Wonder
Sewing.
● Ansoff Matrix: Will help in examining the product-market strategy for wonder towards
increasing their customer base along with market share.
● Force Field Analysis: Will help in examining the driving cum restraining forces towards
the decision in question.

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Areas of Syllabus Covered:
● Ch. 1.3 Organizational Objectives
● Ch. 1.6 Growth and Evolution
● Ch. 1.7 Organizational Planning Tools

Methodology:
Source Reasons for choosing them

1. Primary Research: Interviewing Mr. Ravindra Tolani and

Mr. Jitendra will help knowing the
* Interview with Mr. Jitendra Tolani
business well, its environment and
* Interview with Mr. Ravindra Tolani factors influencing.

2. Secondary Research: BM tools will be used from these

sources to analyse the data collected.
* Reference Books

* Websites

* Articles

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Anticipated Difficulties:
1. Corona led lockdowns make it difficult to meet people personally. Though online zoom
mode can be used to solve this issue.
2. Biases are part of human behavior that can be dealt with asking 5 why’s with all the
asking questions.

Action Plan:
Action Dates

Initial Research Feb 2021

Research Proposal Mar 2021

Formulating RQ Mar 2021

Follow-up with teacher April 2021

Interview and Survey April 2021

Collecting Secondary Data May 2021

Report writing process May – Sept. 2021

First Draft Sept 2021

Final Submission Nov 2021

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Gantt Chart:
Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct-
Task
21 21 21 21 21 21 21 21 21

Research Topic

Research
proposal
Primary
Research
Secondary
Research
Result collation

Analyzing the
result
Writing report

Submit first
draft report
Teacher
feedback
Working on
feedback
Submitting IA

Word Count: 415

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 International Baccalaureate
Higher Level Business Management
Internal Assessment

Research question:
“Should Wonder Sewing open a retail outlet to increase their customer base and market
share in Indore?”

Main Report

Intended Audience: Managing Team of Wonder Sewing

Word Count: Session: May 2022

Executive Summary: 154
Main Report: 1700

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Acknowledgement

Heartfelt gratitude to all the stakeholders of Wonder Sewing and IBDP BM

Facilitator for constant support and help during the course of this IA.

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Table of Contents
1. Executive summary……………………………….………….…………………………9

2. Introduction……………………………………………………………………………..10

3. Methodology employed……………………………………..…...………………….11

4. Main results and findings………..…………………………….…………….…....12

5. Discussion, Analysis and Evaluation……………………………………..…….15

6. Conclusion and Recommendations …………………………………………….19

7. Limitation of the study……………………………………………………………...20

8. Bibliography……………………………………………………………………………..21

9. Appendix 1 – Interview with Owner…………………………………………….22

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 Executive Summary
Wonder Sewing is a Private Limited Company incorporated in 2019 by Mr. Ravindra Tolani
and Jitendra Tolani. They are operating into B2B format, wherein they are the main wholesaler
for Wonder Sewing Machine to other businesses. They plan to expand their business
organically by opening a retail outlet so to increase their customer base and market share.
Therefore, the RQ is:

“Should Wonder Sewing open a retail outlet to increase their customer base and market
share in Indore?”

This research collected data through first-hand information so collected through interviews
with Mr. Tolani, and a survey with the customers. Secondary research was used to support
analysis with tools like SWOT, Ansoff, BCG and Force field analysis.

The analytical evaluation helped in conclusion and further recommendation that Wonder
should open a retails store. Further they are suggested to tap online channels as well.

The RQ gives enough scope towards analysis and recommendation.

Word Count: 154

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 Introduction
About Wonder Sewing1

Wonder Sewing is a Private Limited Company incorporated in 2019 by Mr. Ravindra Tolani and
Jitendra Tolani. They are operating into B2B format, wherein they are the main wholesaler for
Wonder Sewing Machine to other businesses. With the changing environment and people going
for self-employment opportunities, Wonder sewing sees an opportunity to capture a market of Solo
women entrepreneurs and thus, they are looking forward to open a retail outlet in the city of Indore,
to capitalize on the changing dynamics of customer preferences in this market and subsequently
increase their market share. So the RQ is:
“Should Wonder Sewing open a retail outlet to increase their customer base and market
share in Indore?”

1
Appendix 1: Interview with Mr. Ravindra Tolani and Jitendra Tolani

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 Method employed Comment [Office4]: Limited sources and data collected

This research main data collection was through first-hand sources towards knowing the
business and it environment at the in initial stage, then to know the business in detail for further
analysis and evaluation.

Primary research :
● Interview with Mr. Jitendra Tolani (owner) – regarding Wonder sewing.
● Interview with Mr. Ravindra Tolani (owner) – regarding Wonder sewing, its
environment.

Secondary research :
Desk research using books, websites and articles will be used to analyse the data so collected
through the first hand sources of information collection. The raw data will be analysed and
evaluated with supporting tools like SWOT Analysis, Ansoff Matrix, and Force Field
Analysis towards giving an answer to the RQ, regarding Wonder Sewing.

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 Main Results & Findings2
SWOT Analysis 3, 4
The SWOT analysis5 - A tool to analyze internal (strengths and weakness)
and external factors (opportunity and threats) for Wonder Sewing which in turn
will help in understanding their current positions in the market both internally and
externally. This tool analyses is generated through the responses of both owners and
customers.

Strengths Weakness

● The USP of Wonder sewing is ● Limited revenue streams –

selling quality sewing machine at Wonder has a single source of
affordable prices. This in turn revenue. With retailing they can
creates brand awareness and increase their source of revenues.
loyalty. ● Low profits - Wonder suffers
● Wonder sewing rich Experience from lower profit margin as they
and knowledge about sewing keep minimum margins while
machine market will help to selling to retailers. But with
make wonder sewing work retailing (organic expansion)
efficiently, towards taking scientific using penetrative pricing, they
based decisions and subsequent can convert it into strength.
calculated risks. ● Low customer base - Wonder
● Location – Wonder location being a wholesaler has limited
works for its advantage as it is customers in the form of retailers,
situated in main city where many though they buy in bulk but still

3
Appendix 1: Interview with Mr. Jitendra Tolani

5
Hall, Dave, et al. Business Studies fourth edition. Edited by Lan Chambers and Dave Gray,
Causeway, 2008.

12
 other wholesalers are situated. So offer limited opportunities to
they gain economies of scale. capitalize growth.
● Economies of scale- It has both
internal and external EOS due to
location and nature of the business
too. Being a wholesaler, wonder
enjoys lower cost per unit, thus,
they can transfer this benefit to
their customers too using
penetrative pricing6 and
subsequently achieve bigger market
share.

Opportunity Threats

● Locational Economies of scale ● High competition - Their main

- Wonder can take advantage of product i.e. sewing machine is
residential or upscale location in having only 1 supplier, also sewing
Indore as now they will be nearer to machines are reaching to a
their final customers. This will saturation point in the market.
increase their and profit margins With urbanization, there are lesser
too. women who prefer to stitch at
● Tap the larger market share – home and prefer using boutiques
– With a contemplation upon and tailors for these tasks. So if
retailing, wonder is entering into a Wonder can target these boutiques
new market with existing products and other small time tailors
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(Ansoff Matrix) thus, have bigger through retail business, then it can
scope to tap larger market share. convert this threat to opportunity.

6
Hoang, Paul. Business and Management. Victoria, Australia: IBID Press, 2007
7
Hoang, Paul. Business and Management. Victoria, Australia: IBID Press, 2007
13
The SWOT analysis helped in knowing the internal external environmental factors governing the
behavior of Wonder sewing in this market. But to know and recommend strategies, Ansoff matrix
is a required to explore.

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Discussion, Analysis & Evaluation

Ansoff Matrix and BCG Matrix8: Comment [Office5]: Limited analysis

Ansoff is a tool to analyse the market and product strategies being applied by wonder and it
can help in recommending too.

Wonder sewing with contemplation upon retailing main aim is to move vertically forward with
Market development strategy as per Ansoff. This not only will help in generating higher
margins but increase customer base as well.

Product
Existing New
Market Existing Market Product
Penetration Development

New Market Diversification 9

development

Fig. 1 – Ansoff Matrix made on Excel10

Wonder Sewing has a product portfolio that suits each income group with the use of
penetration strateguy and pricing, they are ensuring their survival in this market along-with
extension strategies (PLC)11.

Product development and diversification strategy don’t apply to Wonder as right now they are
focusing upon new market and not new product innovations. Though it is recommended that

8
Appendix 1: Interview with Mr. Jitendra Tolani and Ravindra Tolani
9
“Ansoff Matrix - Hoang, Paul. Business and Management. Victoria,
Australia: IBID Press, 2007
10
Hoang, Paul. Business and Management. Victoria, Australia: IBID Press, 2007
11
Hoang, Paul. Business and Management. Victoria, Australia: IBID Press, 2007
15
they should focus upon differentiating and innovating their products too as this will help in
creating niche for themselves at a later stage of their business.

In order to apply market development and for further product innovation, wonder is required
to understand their current portfolio and future portfolio needs using BCG Matrix.

High quality Low quality

High price Premium product Cowboy product

Low price Bargain product Economy product

Fig. 2 – BCG Matrix made on Excel12

Wonder However, don’t have a ‘Problem Child in their product portfolio (BCG Matrix)13,
As they don’t deal in products which not do well and they usually decide upon products using
scientific decision making tools and calculated risks. This they will need to continue for their
future portfolio needs too.14.

Wonder’s Current portfolio includes sewing machines which are basic in features and thus,
being identified as ‘Dogs15’, since customers don’t consider them anymore until they belong
to lower income group. That’s why they are Cowboy Brand as per perception map.

Medium quality and a little sophisticated sewing machines are being considered as ‘Cash
Cows’, as they are usually a preferred choice of customers because of both quality and price
standards, that’s why they are labeled as Bargain Brand as per perception map.

12
Hall, Dave, et al. Business Studies fourth edition. Edited by Lan Chambers and Dave Gray,
Causeway, 2008
13
Hall, Dave, et al. Business Studies fourth edition. Edited by Lan Chambers and Dave Gray,
Causeway, 2008
14
Appendix 1: Interview with Mr. Jitendra Tolani and Ravindra Tolani

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High innovative sewing machines are ‘Star’, They are premium on both quality and pricing
thus, called as premium brand as per perception map.

Consolidated analysis of SWOT, Ansoff, BCG and PLC helped in understanding how Wonder
gets influenced by market dynamics and what best they can do to ensure survival today and
growth tomorrow.

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Force Field Analysis16 17:

Fig. 3 – Force Field Analysis made on MS Paint

The Force Field Analysis helps wonder to figure out the factors that are driving or restraining
the decisions regarding retailing. A qualitative tool that not only identifies but weighs up the
advantages and disadvantages towards the decision in question.

Wonder wants to increase their customer base that is the main aim towards the decision to
enter into retailing. Though there are various threats to the business yet they look ahead to
move with the decision of retailing.

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Appendix 1: Interview with Mr. Jitendra Tolani

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 Conclusion: Comment [Office6]: Limited Conclusion and reco
Attempts to show some reflective thinking with
limitation. But done superficially. BOD
Wonder Sewing, an entrepreneurial venture of Mr. Jitendra Tolani and Ravindra Tolani in the city
of Indore deals in sewing machines as a wholesaler.

Post data collection through primary research, it can be concluded that wonder has promising
growth prospects thus, they are looking forward to enter into retailing through forward vertical
movement. Thus the RQ - “Should Wonder Sewing open a retail outlet to increase their
customer base and market share in Indore?”

Data collected through Primary and Secondary research methods was analysed using tools like
SWOT, Ansoff, BCG and Force Field Analysis. These tools helped in evaluating the decision
whether Wonder sewing should enter into retailing or not.

The RQ has enough scope to analyse and recommend by giving holistically balanced
arguments.

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 Recommendation:
Post analysis it can be recommended that Wonder Sewing should enter into retailing. The force
Field analysis vouch for this decision and they not only ensure survival but can also grow with
this change. However, it is also recommended that apart from Market development strategies
they should also evolve strategies for Product development too as discussed in Ansoff.

Wonder can also have their online presence on Amazon and Flipkart to increase visibility in
front of customers and subsequently increase their market share.

Limitation and Areas of Further Study:

The analysis lacks quantitative aspect which can aid further research into the RQ.

Word Count: 1700

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 Bibliography:
Books:
● Hall, Dave, et al. Business Studies fourth edition. Edited by Lan Chambers and Dave Gray,
Causeway, 2008
● Hoang, Paul. Business and Management. Victoria, Australia: IBID Press, 2007

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Appendix 1: Interview with Mr. Jitendra Tolani and Ravindra Tolani

Q1. Tell us about Wonder Sewings.

Ans . Wonder Sewing is a wholesale business in Indore where retailers come and buy
sewing machines in bulk. You can see company history for more info.

Q2. What future prospects / challenges do you see?

Ans. We are looking forward to expansion into retailing. Initial market research is still
on. We are conducting feasibility studies.

Q3. How will the business be benefited by opening a new outlet?

Ans. By maintaining a retail business it will be exceptionally useful to our association to
get high edges in the items when contrasted with the discount business notwithstanding
the solid buyer base. In this manner we will straightforwardly offer our items to the
shoppers. This will empower us to make a reliable association ( buyer relations ) .

Q3. What kind of location have you thought of for your rental outlet?
We need to have an area like downtown area or neighborhood markets where the
customer can arrive at the business effectively .

Q4. What kind of plans do you have if the outlet might not run according to
expectation?
On the off chance that the business isn't working out as expected as our group expected
we will ultimately share our day to day reports and ensure what are the issues we are
having? What's more, talk about it to the proprietor.

Q5.What is the source of finance to start this outlet?

The wellspring of money is my own reserve funds, held benefit and Bank credit.

Q6. What kind of promotional techniques do you prefer for the business?
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We will prefer social media marketing and newspaper advertising .

Q8. Do you think your retail outlet may affect your wholesale business?
No, because both the business will run side by side .

Q9. what do you think, how much will be the investment in opening a retail
outlet.
As per our financial team the investment will approximately 2500000 in rupees
Q10. if opening a retail outlet what are the chances of get it successful
As per the current situation of market i think there is 70% chances of being successful.

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