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DECA: International Business Plan

Stella Blu Clothing Company Development in Spain


Jackson Area Career Center
Grass Lake High School
Grass Lake, Michigan, 49240
Alexis Cook

Stella Blu Clothing Co.

I.

Executive Summary

Stella Blu
Founded in 2007 in Chicago, Illinois, by Grass Lake native Erin Raymer, Stella Blu Clothing
Company is an atypical, eco-friendly clothing company that features an array of different onesies
and tee-shirts influenced by bikers, hippies, and Trapper Keepers from the 80s. With such eclectic
influences, the childrens clothing gives off a rock n roll streetwear vibe whilst harnessing the
individuality of each child.
Spain
Located in Western Europe, with harbors on both the Mediterranean Sea and the Atlantic Ocean,
Spain is a picturesque, fashion-forward country that is influenced greatly by American culture.
Spains inflation rate is at a remarkably low 1.5%, and their taxation system allows for a plethora
of benefits for both business owners and employees. We at Stella Blu plan on beginning our
business venture in Barcelona, one of the most contemporary, culturally developed cities in
Europe.
Planned Operation
We have a confident, informed approach on our business venture in Barcelona. For one, we plan on
entering Spain as a Limited Liability Entrepreneur which will allow us an 80% reduction on Social
Security payment in the first six months of business, 50% reduction in the next six months of
business, and then a 30% reduction in the following six months. Because we chose to be
categorized as a Limited Liability Entrepreneur, rather than an Autonomo (sole trader), if we for
some reason lost control of the business, we would not be held solely responsible for any debt. We
will be producing textile products and then sending them out to other boutiques in the area. We
plan on employing ten locals, including a general operations manager, a shipping manager, a
bookkeeper, three screen printers, and three shipping workers.
Product
We offer a very versatile range of t-shirts, onesies, leggings, and jackets for children ages 0-8
years old. Our clothing is energetic, lively, and targets the outspoken individual within each child.
Neither gender is left out when it comes to Stella Blu, we offer clothes for both males and females.
Our 80s streetwear influences fuses greatly with modern fashion trends, giving our clothing an
edgy, but fun look. Some of our current products include an abstract Koi fish tee, a Made in
Brooklyn tee, and rainbow colored, leopard print leggings. Each of our pieces is not only
grandiose and au courant, but they are also eco-friendly, with colors that will never fade.
Pricing and Promotion

Projected Income and Expenses

Stella Blu Clothing Co.

II.

Introduction

Erin Raymer was born and raised in Southeastern Michigan. Like a majority
of teenage girls in Southeastern Michigan, Erin found herself bereft of feelings of
euphoria and exhilaration. Delving into herself for scraps of a creative muse, Erin
discovered that she had an intense fervor for creating and designing clothing. In
due course, Erin found herself living in the city of Chicago with a printing press
and a modest working space, and in 2007, Stella Blu Clothing Company was born.
What was once a printing press and a modest work space, has matured into an
esteemed producer of childrens clothing with products featured in forty two
boutiques worldwide.
Stella Blus products are vivacious, unconventional, and swanky without
being overly brash. We have managed to compile a variety of one of a kind
leggings, jackets, onesies, and tee-shirts for young children. Our apparel fuses
nostalgic vibes from American culture in the 80s with todays current, edgy styles.
By expanding our company into Spain, we hope to draw inspiration from European
street style to meld into our designs, creating an even more unique style for
young children.
So far, Stella Blu clothing is offered in only two boutiques in Europe- Rock of
Cool Baby in Barcelona, and Kids Grocery in The Netherlands. Establishing a Stella
Stella Blu Clothing Co.

Blu warehouse in Europe will help us immensely with spreading further into stores
in The United Kingdom, France, Germany, and beyond. With 50% of our current
available European product, over 3,300 foreign businesses, 10 million square
meters of floor space for economic activity in its metropolitan area, and the best
quality of living for employees in the world, we believe there is no better place for
us to start than Barcelona.
Spain is continually making reforms and working towards easing the process
of setting up business within its borders. In the last three years they have reduced
the minimum capital requirement to start a business, eliminated the requirement
to attain a municipal license before starting operations, improved efficiency in the
commercial registry, and simplified business registration by activating an electric
system connecting several public agencies. In addition to that, Spain has one of
the quickest, most uncomplicated processes in terms of obtaining necessary
documents to start a business; it takes only 6 steps and 13 days. Because of
these advantages, along with an inflation rate of only 1.5% and an 80% reduction
on Social Security payments in our first 6 months of business, we at Stella Blu
strongly believe that Spain highly reveres business not only nationally, but
internationally as well.
The compatibility between standards of dress in Spain and the product that
Stella Blu produces is exceedingly encouraging in terms of the future of our
expansion. Like its style of architecture (think la Sagrada Familia, the
Guggenheim), fashion in Spain is modern, copacetic, and extremely one of a kind.
Stella Blu Clothing Co.

III.

Analysis of the International Business Situation

A. Economic, political and legal analysis of Spain


1) Spains economic system is driven by investment freedom, monetary freedom, and
management of government spending. Like most of the European Union, Spain
generally sees foreign and domestic investors as equals.
2) Spains government is not only
3) Labor and trade laws in
B. Trade area and cultural analysis
1) One of the many conveniences in Spain is its abundance of harbors
2) Market segment
3) Potential location
4)

Stella Blu Clothing Co.

IV.

Planned Operation of the Proposed Business

A. Proposed organization
To officially open up a Stella Blu store in Spain, we must first obtain a certificate of
uniqueness for the name Stella Blu at the Central Commercial Registry. There, our
corporate name-Stella Blu- will be reserved for up to six months. Secondly, we
must open a bank account in
B.
1)
2)
C.

Proposed product/service
Details of product
How the product will be transported
Proposed strategies
1) Proposed pricing policies
2) Proposed promotional program

D.

Stella Blu Clothing Co.

V.

Planned Financing

A. Projected income statements


B. Projected balance sheet
C. Brief description of planned growth

Stella Blu Clothing Co.

VI.

Bibliography

World Bank. 2014. Doing Business 2015: Going Beyond Efficiency. Washington, DC: World
Bank Group. DOI: 10.1596/978-1-4648-0351-2. License: Creative Commons Attribution CC
BY 3.0 IGO

Stella Blu Clothing Co.

Stella Blu Clothing Co.