1

International Business Plan

Name

Course

Professor

Institution

Date
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Table of Contents
Executive summary.........................................................................................................................3

1. Business transposition in the global market place.......................................................................4

1.1 Breakdown of the Global Business Condition.......................................................................4

1.2 Planned Operation of the Business........................................................................................4

1.3 Planned Financing..................................................................................................................5

2.0 Analysis of International Business opportunity.........................................................................7

2.1 Analysis of business environment in Russia..........................................................................7

2.1.1 Political............................................................................................................................7

2.1.2 Economic ........................................................................................................................7

2.1.3 Cultural............................................................................................................................8

2.1.4 Social…………………………………………………………………………………..11

2.1.4 legal ..............................................................................................................................11

3.0 Trade Area Analysis...............................................................................................................9

3.1 Market Segment Breakdown............................................................................................10

3.2 Analysis of prospective site..............................................................................................11

4.0 Planned Operation of the Proposed Business..........................................................................11

4.1 Proposed Organization.........................................................................................................11

4.1.1 Establishment procedures to create Global Fashions....................................................12

4.1.2 Suggested Personnel......................................................................................................12

4.2 Proposed Product.................................................................................................................14

4.2.1 Products.........................................................................................................................14

4.2.2 Placement......................................................................................................................15

4.2.3 Pricing...........................................................................................................................16

4.2.4 Promotion......................................................................................................................17
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5.0 Planned Financing...................................................................................................................20

5.1 Financial Plan.......................................................................................................................20

Conclusion ………………………………………………………………………………………25

Bibliography..................................................................................................................................26

Appendix........................................................................................................................................28
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Executive summary
American clothing fashions are acquiring great publicity amidst the people of Russia,

although the business is overwhelmed by inflated costs because of the absence of existing, high-

class garments. E-commerce is quickly developing globally, mainly in Russia, whereas Brick-

and-Mortar trade shops are gradually dying. Although there is intense rivalry between online

shopping and conventional shopping outlets, they both coexist successfully. Thus, anyone who

wishes to start a business venture in Russia must first study the business culture very well and

understand the favorable and the unfavorable factors prevailing there. A thorough market

analysis is needed by professionals for any business venture to flourish in a new economy and

especially an established one. Nonetheless, business venture is a risky venture and only the

brave and wise survive. This report presents an international business plan for Alphalife, a sole

proprietorship business that wants to venture into Russian garment market. The company wants

to be distinctive from the other companies existing in Russia and the owner wants to co-operate

with all the other dealers of garments stores in Russia to change the way of clothing of the

Russians. The business plan presents an analysis of business environment in Russia and planned

operations for AlphaLife business to be managed online for the next 10 years. The focus of

Alpahlife is the client service and availability of the products that will enable it remain relevant

in the market.
 5

1. Business transposition in the global marketplace

Alphalife is a sole proprietorship business that wants to be a new and creative Russian-

situated American garments company. The company wants to be unique from the other

companies existing in Russia and the owner wants to co-operate with all the other dealers of

garments stores in Russia to change the way of clothing of the Russians (Barrow 2011, pg. 15).

Therefore, the organization will not be trading in mere clothing items; however, it will seek to

capitalize on the clothing items. The Mission Statement of the company will be “to offer to each

and every client the “Alphalifestyle,” which is quality American designs of reasonable prices,

with ease of availability” (The New York Times, 2012).

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1.1 Breakdown of the Global Business Condition

Alphalife shall be located in Moscow, Russia; the area with host residents on Tverskaya

Avenue that is among the busiest trading lanes in Moscow town center and in the wealthiest

suburb of Rublevka (Bush, 2009). Currently, Russia has relaxed its limitations on international

business in a bid to encourage more development. It has some rules, regulations and levies;

however, none of them are extremely impedimentary (Dharamsey, Marybruch & Pokidyshev

2007, pg 11). The focus of the company will be on client satisfaction and user-friendliness in

order to penetrate the market. Many of the company’s previous marketing campaigns were

focused on supporting the “Alphalifestyle” and allowing the organization’s clients to develop the

company’s ventures in an area keen to pursue American fashions and designs.

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1.2 Planned Operation of the Business

Using 24 highly motivated individuals, Alphalife will be managed entirely online in the

next 10 years (The New York Times, 2012). The organization will be transformed to create a

new identity that is separate and unique from its competitors, it will offer greater expertise,

support and schedules that engage its’ clients and enable them to believe that they are important

to the organization, for example, the Rep Team and Transfer Payments Programs. Alpahlife

aims to focus on the client service and availability of the products to enable it remain relevant in

the market.
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1.3 Planned Financing

In the initial year of business, Alphalife borrowed $100,000 venture credit to be returned

within 36 months, and earned a Net gain of $325, 034 after the total costs and levies from Gross

proceeds from a retailing figure of $1,500,000. Of that $325, 034, a quarter will be forwarded to

the close- of-year additional benefits to reward the highly devoted personnel, and three quarters

shall be put into the organization development, for example, setting up a brick-and-mortar site on

Tverskaya Lane. With American development fashions and Russian e-Commerce anticipated to

triple in the coming three decades, the company anticipates its Net Gain to triple to almost $1,

000,000 within this period (East-West Digital News, 2011).

Russia has currently relaxed several of its international trade agreements following its

shift to a free market structure. American fashion and design is very populous in Russian Yashio

2012, pg. 93). E-commerce is flourishing in the face of diminishing Brick-and-Mortar shops.

Alphalife is combining elements in excess to maximize its on the Russian market (Yashio 2012,

pg. 94). Through exploiting this new developing, Alphalife is hoping to maximize on its impact

on the Russian market. Here at Alphalife, the company will not just be trading in food items; it

will also be selling culture on the Russian market.

This philosophy of the company will be deeply embedded in its promotional operations.

Instead of just selling to clients, the organization shall engage with them and encourage them to

entirely believe that they are members of the Afterlife organization (Dharamsey, Marybruch &

Pokidyshev 2007, pg 24). This will be carried out through vigorously incorporating clients in the

organization’s activities such as issuing label packs with the company’s emblem. The

organization will also bring in the Transfer and Rep Team Schedules, organizing programmed
 9

bargains, and holding parties, on various occasions to engage with its market (Dharamsey et al.,

2007, pg. 26). The company will commence operating online with small outlets and step in

Moscow, an alternative option is to start Brick-and-Mortar site on Tverskaya Lane, regarded as a

booming business area in Moscow.

Advertising will form part of the newly start day in the company. Advertising operations

will involve setting up placards and issuing fliers. A major disadvantage of possessing this site

is the degree of rivalry evident (Keillor 2012, pg. 397). However, that shall be offset by the

publicity and aspiration generated for the organization’s products and online sales and looking

for fresh clients who can join the company’s venture and assist in developing it even more

(Keillor 2012, pg. 398). The organization’s major concentration shall be on e-commerce using

its major web: www.Alphalife.ru and the company’s discount site for the older period goods:

www. TheZone.ru. Working uniquely online will benefit the organization through raising

consumer demand and maintaining low costs. In such a quickly growing market, it is the best

opportunity to begin an online business venture in Russia, through fixing, dealing with an

increasing product demand, low rivalry, better trade agreements, and a developing market,

Alphalife should flourish (Keillor 2012, pg. 399).

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2.0 Analysis of International Business Opportunity

2.1 Analysis of business environment in Russia

2.1.1 Political
Despite that Russia being restricted in international business and personal trade during the 2011;

Prime Minister Vladimir Putin declared Russia agreements to become further engaged in

international business and hence end the most of before limitations and obstacles with global

business. Putin argued, “Russians require following a systematic, expected, and accountable rule.

He claimed that the Russians must develop a trade environment to ease investment by

foreigners” (Karlson & O'rourke 2009, pg. 18). The Prime Minister stated that Russia has to

scrap all kinds of obstacles and restrictions with international trade so that the nation attracts

investors from other countries (Karlson & O'rourke 2009, pg. 18). As the obstacles crumble, this

generates an ideal chance to commence business with Russia and their fresh international

business rules stressing an acceptance to the international trade and fewer limitations on

international trade environment (Karlson & O'rourke 2009, pg. 19).

2.1.2 Economic
Economic Structure since the 1990s: Russia shifted from a centrally designed financial

system to a free market structure (Berisha, Jahn, & Karssiens 2009, pg. 89). Recently, Russia’s

financial system is the ninth biggest economy globally in terms of value and sixth biggest by

buying authority equivalence (Berisha, Jahn, & Karssiens 2009, pg. 89). As American culture

continues to have an input in Russia, the company hopes that these American designed patterns

will prove to be populous in Russia.

2.1.3 Cultural
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When advertising, it is essential to understand ones aimed markets and the way to attain

them. Since the aimed target market has such a broad age variance, and middle level earnings,

the organization will be trading majorly in Moscow, the major city in Russia with the highest

number of people (Yashio 2012, pg. 26). The Russian target markets in Moscow replicate the

fashions of city American culture (Yashio 2012, pg. 27). There exists a lively nightlife in

Moscow, which can offer a booming business environment for any willing and equipped

investor. The city has many types of clubs, eating places and bars and this attracts many people

to visit the area to have fun (Yashio 2012, pg. 29). .

2.1.3 Social

There is a healthy market for the company’s products always. There are various types of

locations and these locations accommodate people from different classes that are low, middle,

and high class Russia (Dharamsey, Marybruch, & Pokidyshev 2007, pg. 11). Moscow city

center and Rublevka, the wealthiest part of the city has many populous zones compared to the

other location in Russia (Dharamsey, Marybruch, & Pokidyshev 2007, pg. 12). Tverskaya Lane

is as well creates most populous shopping lanes in Moscow Russia (Dharamsey, Marybruch, &

Pokidyshev 2007, pg. 12). This could be a benefit to the organization since marketing American

fashion generate huge publicity and aspiration and draw fresh consumers. However, a drawback

to such an area for promoting is the degree of competitive promotion and that is the main reason

why Alphalife needs to be unique in its designs Russia (Dharamsey, Marybruch, & Pokidyshev

2007, pg. 15).

2.1.5 Legal
 12

Although Russia operates a free economic structure, some business guidelines are recently in

force. According to Karlson & O'rourke (2009, pg. 20), the retail business rules have some

major benefits that include:

a) Imports are levied with a 0.15% charge of the total worth of the commodities.

b) The total stickers should constitute Russian message.

c) Where product packaging is in a foreign language, an extra sticker should be affixed

recording the important data in Russian.

d) Russia uses import taxes on the majority of its commodities, which commonly vary from

5% to 20% of commodities worth.

e) A few commodities must be taxed a few particular levies that are evaluated by capacity,

mass or amount.

3.0 Market area analysis

3.1 Market Segment Breakdown

The company’s target market shall be mainly teenage grownups and grownups up to the

age of 40 with an average income. Because the organization is majorly concentrating on

promotion in Moscow, which has more than 11.5 million individuals with average earnings, the

company’s promotions are expected to be very populous and quickly (Berisha, Jahn, & Karssiens

2009, pg. 5). However, with the organization’s Rep schedule, the freshly discovered consumers

will progress with the promotions personally and generate aspiration for the company’s town

American lane wear amidst their individual societies through serving like “Brand Ambassadors.”

3.2 Analysis of prospective site

The company will commence uniquely to trade online for the initial decade, possibly

diverting out at the end into brick-and-mortar shops on the aforementioned Tverskaya Lane,
 13

which is among the most populous streets in Moscow town center and is the richest place of

Rublevka. Regarding the promotions, the organization shall apply visual guides like fliers, trade

cards, online advertisements, and so forth (Yashio 2012, pg. 41). This will enable the

organization to delegate most of the advertising to the company’s schedules as indicated in the

advertising programs (Yashio 2012, pg. 41). When it comes to rivalry, there is no great need to

provide a reasonable and high valued line of products like Alphalife (Yashio 2012, pg. 42).

Shops such as Hugo Boss will be their main rival. There is a recent absence of trademark goods

for those on an average earning and that is one area where Alphalife will make sure it addresses

for the consumers in Russia (Yashio 2012, pg. 42).

4.0 Planned Operation of the Proposed Business

4.1 Proposed Organization

Alpahlife will be operated like a privately owned business under a single proprietor (The

New York Times, 2012). Since it is such a tiny and young venture, a privately owned business,

is more profitable since it will faster (The New York Times, 2012). This is because there are few

legal expenses involved, there is an absence of commercial levy payments, some official

business needs, and full management and decision-making process are taken by the proprietor to

facilitate quick reactions to unfavorable market states (Karlson & O'rourke 2009, pg. 22).

Despite that, there will be exceptions; the Double Tax Agreement will share the benefit between

America and Russia disbursing levies for the both nations (Karlson & O'rourke 2009, pg. 23).

4.1.1 Establishment procedures to create Global Fashions

First, sign up the business to a private proprietor and turn to a Russian Tax Resident.

Then, hand over a Russian individual Income Tax Declaration (Karlson & O'rourke 2009, pg.

22). Start to establish a pair of websites and arrange the fields: www.Alphalife.ru and
 14

www.TheZone.ru (Karlson & O'rourke 2009, pg. 22). Employ personnel who will assist in

running the business and introduce fresh consumers. Identify a warehouse and work area in

Moscow that suits the venture in question (Berisha Jahn & Karssiens 2009, pg. 14). Start to

request for initial quantities of clothing and monitor the progress carefully. Issue the webs and

go live, regulating buying to equal consumer fashions and selling overseas obsolete goods from

Alphalife.ru to TheZone.ru on authorization (Karlson & O'rourke 2009, pg. 24).

4.1.2 Suggested Personnel

a) Proprietor/Chief Operations and Marketing Officer- will supervise the total advertising

activities (Yashio 2012, pg. 65).

b) Chief Financial and Implementation Officer- will have the responsibility of supervising

the organization’s monies. He will as well be the chief accounting officer and will be

responsible for taking care of Human Resources challenges and executing Alphalife

business activities in the Russian environment (Yashio 2012, pg. 65).

c) Logistics manager- will have the responsibility of controlling the logistics sections of

reception and allotment and supervising the logistics personnel.

d) Quality Assurance Associates- They will ascertain the worth of the merchandise when

receiving and allocating and would be accountable to the Logistics Head. They should

also control stock to ensure there is no inconsistency, account for stock and loss to

accounting and should have the capacity to raise 50 lbs to ensure profitability (Yashio

2012, pg. 65).

e) Logistics Team Members- They should be about 10 and shall have the responsibility of

taking in consignments and receiving stock and informing the QA Associates the level of

stock. Another team of about 5 members will be responsible for production and allotment
 15

as well as aiding in advertising operations when the necessity occurs and should have the

capability to raise 50 ibs to ensure profitability (Yashio 2012, pg. 65).

f) Web Designers- There must be 1 in every site, that is; www.Alphalife.ru or

www.TheZone.ru for revising and maintaining them as well as keeping up to date online

stock and controlling online advertisements.

g) Accountants- They will be two and will maintain record of the organization’s finances.

That is costs, earnings, wages, and gains among others and accounts them to the CFIO

(Yashio 2012, pg. 65). They will also file levies and the important formalities.

h) The company will appoint a legal advisor on a per-requirement basis to reduce costs

(Yashio 2012, pg. 65).

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Proposed Organizational Chart

Chief Operations and Marketing Chief Financial and Implementation

Officer (COMO) Officer

1 Logistics Manager

2 Web Designers 2 Quality Assurance Associates 2 Accountants

10 Reception Logistics Team Members 5 Distribution Logistics Team Members

4.2 Proposed Product

4.2.1 Products
Product Details- The organization’s line of items will range from garments, to shoes, to

accessories under the cover name of “Street Wear” (MüHlbacher & Dahringer 2006, pg. 34). In

joint venture with organizations like Vans, Supra, Adidas, Skullcandy, Betsey Johnson, Nike,

Kidrobot, Goodwood, Kr3w and Lifetime Collective, the company will be advertising a way of

life behind the design; the items only arrive with it (MüHlbacher & Dahringer 2006, pg. 34). To

an economy so hugely affected by modern American fashions, it is profitable to let it be more

easily accessible to them (MüHlbacher & Dahringer 2006, pg. 34). This is exactly what

Alphalife shall be undertaking; trading the “Alphalifestyle” (MüHlbacher & Dahringer 2006, pg.
 17

34). These products are becoming more popular in America and Russia and it is possible to buy

them without too great cost (MüHlbacher & Dahringer 2006, pg. 34). Alphalife will be

introducing its consumers to become members of the Global Fashions Household (MüHlbacher

& Dahringer 2006, pg. 36).

Jointly, Alphalife will develop, succeed, and live the fashion (Pinson 2008, pg. 96).

When each consignment arrives, the company’s 10 Reception Logistics Team Members will

disassemble, arrange and take stock of the total goods prior to accounting that stock to the

Quality Assurance Members (Pinson 2008, pg. 97). The five Allocation Logistics Team

Members shall then design the items to be acceptable with beautiful packaging prior to taking

stock of the total goods before they are transported to the consumer (Pinson 2008, pg. 98). They

then forward that stock data to the Quality Assurance Members who assemble it and forward it to

the accounting department (Pinson 2008, pg. 98).

4.2.2 Placement
Whereas transportation will differ from organization to organization selling commodities

to the company, most of the consignment will be sold from America via an Ocean Full-Container

service (Barrow 2011, pg. 186). The company will sell a consignment of about 10001bs each

month of garments, shoes, and garnishes on seaborne freight transportation (Barrow 2011, pg.

186). The shipping expenses for those consignments will be about $5,000 USD comprising of:

$3700 for a 20’ Cargo Container, import levies of $300, $500 drayage to packing field, $100

pickup costs, $150 energy supplement, and $250 for Indemnity and Customs clearing (Barrow

2011, pg. 186). The total consignments should be marked in Russian and English (Barrow 2011,

pg. 186). Advantages of this structure are that it is dependable, has the capacity to be
 18

programmed long before time or after a brief notice, and is comparatively affordable (Barrow

2011, pg. 188).

The setback is that it is slow compared to flying (Barrow 2011, pg. 188). Threats of

applying this technique are goods getting lost, goods being damaged, or being held up behind the

program (Barrow 2011, pg. 188). Whereas indemnity would not compensate for lost items, it

will cover the company from giving away much of the consignments expenses when such a

misfortune ocurs (Keillor 2012, pg. 461).

4.2.3 Pricing
Suggested pricing plans- Since the company will be an American venture running in

Russia; it shall welcome both US Dollars and Russian Rubles (Pinson 2008, pg. 87). The

expenses will be moderately reduced because of carrying the business entirely online since it will

reduce much of the costs or operating a brick-and-mortar warehouse for example, rent

exhibitions, utilities, and extra sales personnel (Pinson 2008, pg. 87). Considering that the

business will be running online majorly, most of its rivalry will be indirect; thus the owners will

need not worry much about competing with the other businesses rather they must concentrate

more on how to be unique (Pinson 2008, pg. 87). Nevertheless, for the company to sell its

American items in Russia, it shall gain its items an average of 140% over wholesale, a third

greater than in America, to cater for its shipping cost and levies (Pinson 2008, pg. 88).

These costs, nevertheless will remain lower than those commodities from overseas

organizations which supply luxury items for the rich class will be slightly greater than the low

valued, garments without names which is very common in contemporary Russia (Pinson 2008,

pg. 87). The prices of the company will efficiently be mid price to attract the lower class and the

employed class; thus, it may rival the low-priced and less prestigious fashions of before and the
 19

much costly garments of the wealthy. In this way it will transform the Russian way of dressing

(Karlson 2009, pg. 330). For instance, a normal shirt from one of the products of the company

could cost around $15 before markdowns, and here it could cost around $19.5 (Karlson 2009, pg.

330). The company will also give a $5 flat-rate transportation alternative to enable the

consumer’s buying experiences as welcoming and pleasing as possible lacking concealed or

disclosure charges.

4.2.4 Promotion
As noted before, Alphalife’s specialty sponsorship schedule shall make it exceptional

from the other businesses (Collier 2010, pg. 76). For instance, the company has its secondary

web: www.Alphalife.ru, a web providing products of the company that are running out of stock

or obsolete to be traded in the timed retailing of not more than 80% of the sales price. This shall

get rid of waste since the organization shall leave no item not sold and it shall exceptionally

serve to support the constructive product image of the organization that it always serves (Yashio

2012, pg. 257). In addition, the company has the Rep Crew Schedule where consumers can

register and serve as product ambassadors. After registering, these ambassadors shall get a six-

digit “rep-code” that shall give customers a 20% off their total shopping. Ambassadors are urged

to develop supportive means like the use of fliers and trade cards to support their rep-policies and

eventually the company.

When the consumers apply their codes, the Ambassador shall gain 25% of the total that

consumer accumulates in points. When the Ambassador decides to change the points gained

from the consumer’s shopping into warehouse credit in place of money, that sum will be 1.5

times more. The points shift from “awaiting” to “accepted” a week following the arrival of the

goods to the consumer to make sure that points simply become accepted when the consumer
 20

does not terminate the order or reverse the consignment. The Ambassador may trade in the points

for money, personal present code, or a gift code for a comrade. The company shall launch its Rep

Team Schedule together with its campaign to aid in the organization’s early development

(Collier 2010, pg. 124).

This schedule will not just award fresh consumers discounts and causes to purchase from

the company nor will it offer the returning consumers cash and incentive to get on buying from

the company (Oortwijn, 2011). However, it will enable the consumers of the company to feel as

if they are rightful members of the Alphalife Household (Oortwijn, 2011). This will aid the

company to grow and the company will aid them as well. Ambassadors will be incentivized to

support the company and they will individually approach fresh consumers with opportunities to

save (Oortwijn, 2011). To function jointly with the Rep Team Schedule, the company will also

provide the Two-Tier Transfer Payment schedule (Cavusgil, 2009).The moment an ambassador

recommends a fresh consumer, maybe through registering with a transfer recognition code or

clacking on the transfer web, the ambassador will gain $10 following that another consumer’s

initial shopping. When that fresh consumer recommends a fresh consumer who shops from the

company, then not simply will that consumers gain $10 from the fresh consumer’s shopping;

however, the consumer earn an additional $1 from that resulting transfer (Cavusgil, 2009).

The two tiers can be replicated considerably to get for paying the consumers of the

company for developing it (Cavusgil, 2009). When the Transfer Payments Schedule is not

sufficient to maintain consumers buying from the company, the company will as well give $10

back in the form of warehouse credit following a consumer’s initial shopping (Cavusgil, 2009).

When the initial shopping is not sufficient to maintain the consumers return, then they will get an

additional cause to come back, or they could be squandering cash (Cavusgil 2009, pg. 98). When
 21

a consumer shops, he/she becomes an Ambassador, transfer a big amount of fresh consumers

who do shopping and transfer extra fresh consumers who do shopping entirely with the rep-code;

that first consumer not just will have developed Alphalife in a big way, he or she will have

gained a considerable amount of cash (Cavusgil, 2009).

Whereas the Rep Team Schedule, the Transfer Payments Schedule, and the Money-Back

Schedule is going to be operating throughout the whole decade, the company will also organize

three kinds of extra supportive functions (Barrow & Brown 2012, pg. 117). Initially, the

company will be supporting a show at Moscow’s Olympic Stadium, where it would be

distributing its support fliers and labels. This will be immediately following the January

unveiling and will aid to start of the company’s enterprise firmly in the societies of the for that

market. The second, the company shall organize four raffles of 64gb iPad 2’s; the first on March

1st, second on June 1st, third on September 1st and the last one on December 31st. An entry will be

offered to each consumer per the total of fresh consumers transferred that have done shopping

(Barrow & Brown 2012, pg. 117).

This will aid to encourage the company’s Transfer Payments Schedule in both

responsiveness and real gaining of fresh consumers (Oortwijn 2011, pg. 34). The third, the

company will provide two points to Ambassadors in the months of November and December.

This will efficiently capitalize on the two eventful purchasing months of the decade: Black

Friday/Cyber Monday and the Festive period (Brown, Gutterman & Carry 2011, pg. 56).

Individuals will by now be searching for markdowns and areas to purchase, so the Ambassador’s

work will be even simpler, and this will once again raise awareness of both the company’s

warehouse and the company’s large number of schedules (Brown, Gutterman & Carry 2011, pg.
 22

56). Organizing these support programs on the final two months of the calendar will assist the

company to end the decade positively (Brown, Gutterman & Carry 2011, pg. 57).

5. Planned Financing

5.1 Financial Plan

Planned Growth of Business- After commencing the business with a bank credit of

$100,000 USD, with a yearly reimbursement proportion of 6.59%, the company anticipates to

make monthly disbursements of $3069.00 and return the credit completely in a period of 36

months (East-West Digital News, 2011).

23
 24

Source: http://serv1.datalog.co.uk/docs/Prod223_1152_06650044_20131231.pdf
 25

The company will employ the $325, 034 of net gain to be shared to have a quarter

forwarded to the end-of-calendar additional benefits to the total workers, and three quarter to be

channeled towards the organization’s development and establishment money for a brick-and-

mortar Alphalife site on Tverskaya Lane (Brown & Gutterman 2011, pg. 84). With the Russian

E-commerce economy anticipating growing thrice in the coming 10 decades and the 80%

development witnessed by online American warehouse: Karmaloop, the company anticipates

sales and gains for Alphalife and the Zone to somehow grow thrice to $1,000,000 yearly net

gains in the coming three decades (Brown & Gutterman 2011, pg. 84). This is how the Alphalife

plans to entirely venture in the Russian market and be able to establish its brand and achieve its

targeted profit (Brown & Gutterman 2011, pg. 84).

Conclusion

This report presents an international business plan for Alphalife, a sole proprietorship

business interested in investing in Russian garment market. The business plan explores various

issues of interested to a company investing in a new market, which include business environment

in Russia, target market analysis, proposed operation of the business, and planned financing for

business. It is apparent that Alphalife Company wants to be distinctive from the other companies

existing in Russia by operating online for the next 10 years. The focus of Alpahlife is the client

service and availability of the products that will enable it remains relevant in the market. As

such, the business plan provides a platform for the Alphalife to when investing in Russia garment

markets.
 26

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Appendix
Russian Economic Graphs

Source: Adomanis, M. (2012). Russia’s economic growth in comparison with the G7. Forbes.

Available at: < http://www.forbes.com/sites/markadomanis/2012/07/26/russias-economic-

growth-in-comparison-with-the-g7/>. Accessed 29th March 2015

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Source: Adomanis, M. (2012). Russia’s economic growth in comparison with the G7. Forbes.

Available at: < http://www.forbes.com/sites/markadomanis/2012/07/26/russias-economic-

growth-in-comparison-with-the-g7/>. Accessed 29th March 2015

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