Bachelor (Hons) in Business Administration 2021-2022 Coursework Nº1 Course: The business consultancy

Bachelor (Hons) in Business Administration 2021-2022

Coursework Nº1

Course: The business consultancy project

Fagr Mostafa

Student number: 100585526

Executive Summary

Prepared for the executive leadership of Punto Blanco, his business prospectus finds that the brand is strong at the current moment, despite the economic challenges of the COVID-19 Pandemic, but faces looming threats within the competitive environment. Economic indicators for the undergarments industry show consistent, and substantial growth, especially in developing economies. The company benefits from a strong presence in its local market as well as a historically established internal culture which promotes value creation through quality production, customer service, and innovation. However, Punto Blanco exists in an industry increasingly dominated by very strong, well-branded multinational competitors who are rapidly expanding to capture newly created market share – a trend which threatens to leave Punto Blanco isolated within its current markets as it lacks the resources to compete with many of these large multinationals. Furthermore, the company struggles from a lack of differentiation in both its products and its revenue streams.


Introduction ………………………………………………………………………………… Page 4

Situational Analysis

Internal analysis ……………………………………………………………….. Pages 4-5

External analysis ……………..……………………………………………….. Pages 5-7

Enviromental analysis ……………..……………………………………………….. Pages 7-8

Industry analysis ……………..………………………………………………… Page 8

Summary ……………..…………………………………………………………… Page 9


Problems …………………………………………………………………………… Pages 9-10

Ideas for action …………………………………………………………………………… Pages 10-11

Cost Benefit Analysis (CBA) ………………………………….… Pages 11-12

SAF ………………………………………………………………………… Pages 12-13

Project proposal

Introduction to the Project proposal

Work Breakdown Structure (WBS) ………………………… Pages 13-15

Schedule key points

Gannt chart …………………………………………………………… Page 15

Critical Path Model (CPM) …………………………………….. Page 16

Budget key points

Budget ………………………………………………………………….. Pages 16-17

Risk analysis

Risk analysis key points summary

PERT + revised CPM ………………………………………………. Page 17

Quality control

Monitoring performance key points summary

Balance Scorecard with Gannt Chart ……………………. Page 17-18

Conclusion ………………………………………………………………………………….. Pages 18-19

Reference list …………………… Pages


Appendixes of the internal analysis …………………………………. Page 22

Appendix of the external analysis ……………………………………. Page 23

Appendix of the industry analysis ……………………………………. Page 24

Appendix of the business model canvas ………………………….. Page 24

Appendix of the SAF ……………………………………………………….. Pages 25-26

Appendix of the project charter ………………………………………. Page 26-27

Appendix of WBS …………………………………………………………….. Page 28

Appendix of the Gannt chart …………………………………………… Page 29

Appendix of the revised Gannt Chart with the Balance Scorecard ………………………………………………………………………………………… Page 30

1. Introduction

Punto Blanco is one of six companies owned by the major international textiles multinational Corporacion Empresarial Valls, S. A (hereafter CEVSA). Originally producing socks, Punto Blanco is the flagship company for CEVSA, and started producing innovative, high quality socks for the Spanish market in 1948. Given its early market entry, culture of innovation excellence, and dedication to quality, Punto Blanco has seen rapid growth since its inception; it began exporting internationally only 5 years after its founding and now exports products to more than 40 countries worldwide. Its product range has also diversified – with the company now offering lingerie, underwear, and swimwear in addition to its socks. (FutureLearn, 2021)

This review will examine the factors which led to this meteoric expansion. First, an environmental analysis will be conducted using a PEST test to understand Punto Blanco’s context. Then, an industry analysis will be used to assess competitive forces within the industry. The analysis section will then conclude with an internal analysis which seeks to understand the internal factors which have contributed to Punto Blanco’s success as well as identify any potential challenges or opportunities. The summary of the analysis will contain a SWOT analysis which will integrate all the findings of these different analysis in order to then determine which threats should be addressed and opportunities exploited to drive Punto Blanco’s growth even further. (Woolyarns, 2021)\

Situational Analysis

Internal Analysis:

According to research and how different theories were proposed on the studies of strategic management and industry total analysis. The internal environmental analysis is one that tends to include all the direct elements that are able to handle the sections within the organization itself or that has an active role in controlling the operations internally or handling it. Mainly the study of the internal environment is one that is considered to acquire great presence of all the resources or components that build up the value chain model. Meanwhile all the resources of the company that tend to handle the factors or contribute to the profitability of the business. (Gasparotti, 2009)

Moreover, the objective of this section was proposed along the content list of the paper to be able to acquire the suitable amount of analysis to identify the strengths and weaknesses to have a practical business plan or fixed strategy for the business’s sustainable life cycle. On the other hand, the main factors that could enhance the profitability matters for Punto Blanco in the market or existence in the markets.

The main internal aspects of Punto Blanco was to highlight the main values of the business in the textile sector. Meanwhile how the brand was always eager to sustain and stabilize the quality controls actions, all for the ensuring of having the best materials available for innovation and production matters easily in their product mix. However, the main means by which those final products are carried under technological advancement actions in their operations. Secondly the degree to have effective alignment of customer wants and needs to finalize a valuable design that would enable creativity and satisfaction to take place.

Mainly the company’s objectives and values were all handled under their main ideology of Mission and Vision statements proposed on behalf of their main mindsets internally for the company. It was mentioned across the main portal of information for Punto Blanco, that their mission statement entailed the ability to offer clients and users with the most prominent quality standards under the handling of electronic commerce activities, physically evident locations and departmental stores. Meanwhile creating a valuable vision statement for the business under the providing and producing highest quality products for the maximum quality garments products in the market.

According to the above-mentioned information on how the brand follows the above activities for perfection, managerial theories instead has proposed Kay’s distinctive capabilities framework to help define useful information for analysis of the internal environment. The proposed framework is one that was developed by the famous English economist to hand out a unique identification of the capabilities that count the competitive advantage actions for the business to face other players in the field of operations. The following section would represent the capabilities that tend to include the reputation, architecture and innovation points.

Reputation is the first capability and known as the most powerful one, which would be because of the years of experience in the field of fashion. The brand was able to handle and deliver an effective positive brand reputation, which creates a valuable amount of trust and confidence on behalf of customers. The customer service and additional support services developed by the brand has created an effective satisfactory mindset for customers in every purchasing decision easier and easier. The amount of employee involvement and employee engagement factors were among the main traits of how Punto Blanco has developed on behalf of the support for the brand.

Architecture is the second most important capability as the brand has been sustaining for 74 years old in the market of clothing. Moreover, the ability for the management of the company to acquire a more unique brand loyalty, value, loyal customers, collaboration with retailers and an expended supply chain process. On the other hand, developing and communicating the company’s mission and vision statement in every business level of the organization.

Innovation is the third available distinctive capability for the brand, which was mentioned to be able to highlight how the brand would be able to stand beside the competition and innovation. The quality of the brand’s products was all handled under premium quality, which would be always enhancing the textile innovation and processes or products line range.

External analysis:

This section is one that is aimed at defining the kind of analysis for the company in regard to its external environment, therefore the opportunities and threats would be the main pillars of that section. On the other hand, this section would be able to handle the actions on how the broader society has in terms of major key trends for the understanding of the environment. (Bhaskar & Pawar, 2019)

Moreover, to define how the external factors would be assessed, it was identified defined across different literature reviews and theories; that Michael porter’s five forces model was among the main classification of this section. Mainly the theory of Porter five forces model would be able to help readers asses the threats and opportunities for the fashion producer Punto Blanco. According to how research has identified the five forces model, they would entail the following points: Bargaining power of buyers, Bargaining power of suppliers, and the rivalry among different players. On the other hand, the degree to how there would be a probability for different substitutes for the same industry in the market or the risk for entry in the market from other potential competitors.

Five Forces Model of Michael Porter:

Competitive rivalry is the first force, that tends to elaborate how the intensity of the rivalry in the market tends to be indicated. Moreover, the results seen to how competitive pressures tend to affect the pricing and profits of the designated player. Mainly the direct competitors available for Punto Blanco are known to be Chantelle, Calzedonia and Tezeis. Research has identified how those mentioned brands above have a high strength’s over our brand from the factor of brand awareness. On the other hand, those mentioned advantages tend to be represented on the revenues of 2021 of every company separately.

Threats of New Entrants is the second most Available force in the model, research has identified how the competitive threat is not actually evident from the current business players, yet from the probable opportunity that new entrants might enter the market or not. Mainly the brand has been able to handle an effective handling of pricing in terms of addressing reasonable prices besides their high-quality products. Moreover, it was mentioned across literature, that the brand has a reliable and sustainable customer-based loyalty condition, which would be considered to be a strength for the business. Meanwhile the customer base that was aligned to Punto Blanco’s success program has enriched the brand to pass easily through fierce positions. Actually, the physical evidence of every store of Punto Blanco in Spain was among the main disadvantages of the brand. On the other hand, the company would have to invest more in other developing and emerging markets.

Bargaining Power of Suppliers in the third force proposed by the famous Michael Porter, mainly this force identifies how the raw materials provided by the suppliers should be always having a steady and rapport line of connection with the operations directly. Research has identified along with operations management theories, that strong suppliers and effectively managed supply chains of businesses would be directly increasing the process of satisfaction for the end user. The fashion sector is outsourced in the Chinese region for the sake of low wages and globalization of markets. Mainly Punto Blanco is now able to establish extensive stable relationships and partnerships with their main supplier mix. It was mentioned across literature that the alignments designed with suppliers are all handled under a licensed official contract for operation, unique quality, strict lead times and effective response rate of connection.

Threats of Substitutes, the clothing industry is one that has been mentioned across research and observations to not have any similar substitutes, due to the uniqueness of the clothing as a necessity for consumers. Mainly research was able to identify how the customers of one brand can and might be able to substitute a supplier for quality, pricing, reputation, marketing and other related factors. In the essence of how Punto Blanco was proposed by various researches, the famous retailer Chantelle Lingerie would be considered to be the main substitute available for the brand. Accordingly, Chantelle Lingerie has been found to, supply a set of different product ranges in their brand portfolio’s, yet Blanco mainly does not have any other substitute for their quality. (Kotler, 2017)

Bargaining Power of Customers, consumer behaviour as a study has identified that the fashion industry is mainly uncertain in terms of purchasing decisions, where by customers tend buy whatever favours them or triggers their actions to buy products. Research in the sectors of Punto Blanco’s main financial and sales reports of their annual statements has identified that the brand has low budget accountabilities for the marketing efforts and communication methods. Meanwhile the word of mouth is one of the main methods followed under the brand’s market accessibility. However, the brand has focused a lot in the research and development departments since its initiation to have an effective acknowledgment on the needs and wants of customers. On the other hand, due to the effective alignment of pricing, quality and differentiation, the brand was able to have an effective retention plan for their loyal customers from now to then.

Punto Blanco has a range of products which are well diversified across markets and benefits from a strong values-based internal culture which promotes high quality, sustainability-oriented production management. Furthermore, CEVSA has been able to make a number of successful international expansions, most recently in Russia.

In terms of its products, Punto Blanco produces ranges of socks, underwear, home wear, and aqua wear. It identifies its socks as its star product and its main source of revenue. However, Punto Blanco wisely diversified away from a single product category about 30 years ago which has expanded the influence and engagement of its brand to other revenue streams. To further support its differentiation, collections across its product categories are renewed twice yearly with specific attention paid to seasonal needs. This ensures that Punto Blanco’s products are constantly being adapted to meet evolving consumer needs most effectively.

Distribution Channels:

Punto Blanco’s distribution channels are similarly differentiated in order to mitigate the risks associated with focusing too much of its presence in one market. Referred to as a multi-channel approach, the brand sells its products in both B2B and B2C markets – using its online shop to facilitate B2C orders as well as build B2B relationships. B2B sales are conducted primarily though resale and wholesale markets, though Punto Blanco opened a small number of own-brand retail locations in high-demand areas starting in 2005. The brand notes that its distribution strategy relies on agility and multi-channel approaches to ensure that its products reach as many consumers as possible while incurring the least expense.

Brand communication through advertising is another key approach of the brand; since its inception Punto Blanco has been using advertising as a key vehicle for creating brand engagement and awareness. While it still uses traditional media such as magazine and newspaper advertisements, the brand has also built a substantial and innovative online presence; now utilizing Social Media Marketing and other forms of new media to aggressively communicate its brand values to consumers. (Li, 2021)

Finally, in terms of internal culture, Punto Blanco prides itself as combining an array of best-business practices to create value for customers. Figure 1 illustrates the circular connection between these factors – showing that the bran places equal value on each of its core value propositions.

Environmental Analysis

To assess the Spanish environment with particular focus on garments


Spain has a strong desire to grow its economy, especially in the wake of the COVID-19 Pandemic. Spain has experienced some political scandal over the past years relating to corruption in the government and royal family, but overall, the political stability is assessed as moderate to strong. It is noteworthy that Spain maintains a 5% lower income tax than its European neighbour’s, though VAT rates have been going up in recent years and are now up to 21%.


Spain was already struggling to recover from the Great Recession and has had similar problems managing to prevent a second major recession due to COVID-19. However, the OECD is still predicting 4-5% GDP growth over the next couple despite the lingering effects of COVID on tourism, labour, and demand/consumption. Spain’s greatest economic weakness is a cripplingly high unemployment rate which is currently at around 22% – up from 15.3% in 2018. An aging labour force, currently the second oldest in the OECD, is also a critical threat as a lack of workers will require solutions in the near future (OECD, 2018; p. 4)


Spain’s roughly 40.5 million people have a median age of 41 years of age with a population growth rate of just 0.072% – making it one of the most rapidly aging populations in the EU. The population is heavily urbanized (77% urban), well educated (98% literacy – average of 16 years of schooling per person), and over 90% Roman Catholic (Central Intelligence Agency, 2021). This ageing, educated, homogeneous population favours family owned businesses and has a much more relaxed work ethic than its European neighbour’s.


Spain’s strongest point on the PEST is its technological factors. As a developed economy with a sizable pool of well-educated workers, Spain is highly competitive in innovative technology fields. This has led to pioneering work in renewable energy and sustainability technologies in addition to substantial R&D expertise. In fact, Spanish firms spend, on average, 13% of revenues on developing new technologies. Its manufacturing and transportation is supported by the world’s second largest high-speed rail network (Buisán, 2015).

Industry Analysis

The global market for undergarments – which includes both socks and underwear – has been growing steadily with an approximate value of over $20 billion in 2021 and a predicted annual growth rate of 6.79% through 2025. Demand in the industry is driven mostly by growing populations and wealth in developing markets with Asian markets – namely China – making up over a quarter of total global consumption (Statista, 2021). This market shows considerable growth and is promising, though challenging due to the large number of existing competitors.

In addition to smaller, local producers in every country, the undergarments industry also has a large number of massive multinational competitors. Among the most notable of these multinational brands are Lascana, Hanes, L-Brands, Victoria’s Secret, Intimissimi, H&M, Jockey International, and Gap (Facts & Factors, 2021). Though each of these multinationals operate in slightly different segments – Victoria’s Secret, for example, does not compete in men’s segments – they each operate at least partially in the same markets and segments as Punto Blanco, meaning that the competitive environment is very challenging.

SWOT Analysis:

Table 1: SWOT analysis for Punto Blanco




Strong corporate culture based on excellence, innovation and ethics gives the brand a clear path towards social responsibility branding

The knowledge and management-based experience was among the main strengths that brought the business to perfection and specialization in the field of clothing. Mainly the 74 years of experience has brought the business to a great position in market of Textiles.

Strong reputation has effectively positioned the brand on another level, whenever it is compared to other players in the market.

Extensive production and warehousing facilities totalling over 20.000 SQM between all major production centres.

The degree to adapting the forward integration strategy as one of the strengths of owning their own manufacturing plants and factories in the market.

Successful recent international acquisition means that a knowledge base has already been established for making international expansion


Heavy reliance on socks segment leaves the company weak in event of demand drop in this segment

The low brand awareness that was among the main weaknesses internally for the company.

The high dependence on the older ages in the target audience.

Low marketing efforts and low designation of financial budgets in that sector of action.

Approximately 85% of sales are within the EU market with the vast majority of those sales occurring in Spain


Rising demand for ethical, sustainable and socially responsible brands could provide extensive value for the brand.

The design of a new product line and innovation in the clothing industry, which would be able to accommodate a new path for customer’s satisfaction.

The clear investment in sectors of the social Media and online marketing platforms for greater presence and availability.

High growths markets throughout developing economies are emerging and offer substantial promise for expansion


Economic uncertainty regarding the COVID-19 pandemic has left markets unpredictable

The rivalry among new entrants in the market of clothing, since low barriers to entry are available.

Figure 1:

Through this value proposition wheel, the brand promises to deliver the highest quality goods which are created using the most modern technologies to benefit efficiency. The highest quality materials are used in the creation of the brand’s goods which are crafted using innovative methods in order to ensure industry-leading quality. Design also plays a key role in this process which ensures that products are always at the height of fashion trends. Precision in production is a key element of this mission as it ensures that products will be made without any defects which will take away from customer satisfaction. Finally, industry-leading customer from first contact to delivery is essential to ensure that consumers get maximum value and positive engagement with Punto Blanco’s brand. The company’s overall philosophy is based on building long term relationships with suppliers, resellers, and consumers through an innovative pursuit of excellence and corporate culture driven by ethics.

3. Problem Identification

All data collected is important t in for identifying the companies strengths and weaknesses that were discovered through strategic analysis and the construction of a Business Model. Based on the analysis above, Punto Blanco’s biggest problem is a lack of suitable diversification in both its products and its markets. It is too reliant on Spanish and European markets, as well as the socks segment, both of which leave the company vulnerable to substantial losses if these markets experience demand fluctuation. Furthermore, while the brand has been putting efforts into diversifying its distribution channels, reliance on B2B markets has made it vulnerable to crises like COVID where these channels are no longer efficient and the company lacks substantial enough distribution infrastructure to make up for this lost demand through own-brand sales and B2C channels (Lynch, 2018)

4. Ideas for Action

Khanna, Palepu, and Sinha (2005) note that most multinationals’ expansion strategies over the last decade have focused on attempting to develop and implement successful strategies for capitalizing on emerging market growth. While many multinationals maintain a strong base presence within developed markets, emerging markets are understood as the best way to grow new, diversified revenue streams in the modern context. This is supported by the OECD, which notes that Asian and Latin American markets in particular show enormous potential for sustained growth as well as ready access to less expensive manufacturing inputs for firms willing to invest in developing production within them (OECD, 2020).

While it may not yet be time for Punto Blanco to expand its manufacturing outside of the Spanish context, diversification of revenue streams and distribution networks is necessary. There are a several strategies which the brand can employ to accomplish this. These ideas for action are laid out below.

6.1: investing in social media. This solution was created with the goal of increasing Punto Blanco’s brand awareness via social networking sites (such as TikTok or Instagram) and bringing the company closer to social and digital media trends. Punto Blanco can grab the attention of a larger audience with this approach by exhibiting that the company can be both innovative and conventional and classic.

6.2 : Diversify Product Category: Socks are how the brand started and currently make up most of its revenue. However, this is a critical vulnerability which must be addressed. In this case, an innovative approach is needed to encourage more consumption of swimwear, undergarments and pyjamas. Marketing will likely be at the forefront of this effort; it would be wise to launch a campaign putting more emphasis on new product lines in segments other than socks in order to encourage consumption. Given the popularity of Punto Blanco’s socks, one suggested campaign could seek to use sock purchases to spread knowledge about other products by offering a discount on pyjamas/swimwear/underwear when a consumer purchases Punto Blanco socks. The project is creating a new and improving existing swimwear line for Punto Blanco’s company. The decisions arose after conducting a SWOT analysis, reviewing the internal and external strengths and weaknesses experienced by Blanco’s company. The reviews pointed out areas, requiring improvements by generating ideas into actions. The SWOT review noted the three primary areas, requiring action by Blanco’s company. They include diversification of distribution networks, diversification of product category, and shifting focus on the Latin American market, having shown excellent business potential. The current project plan comes from diversification of product category where the goal focuses on raising Blanco’s company swimwear lines by improving their design, and increasing the choices for their customers.(Sarkar, 2020)

The project aims to diversify the product category from overreliance on socks, being the brands’ primary source of revenue. Its aim is to spread the risks and expound on revenue sources. The objectives put Blanco company in a strategic position to compete effectively in the industry, continuing to experience high competition from other players locally and internationally. The objective is to rebrand the swimwear line products to realize its full business potential.

There are two viable proposals or Punto Blanco, as shown above. two analytical frameworks have been combined and deployed into the research to attain the goal of determining the most useful and lucrative recommendation out of the three previously mentioned.

5.Cost Benefit Analysis:

Cost-benefit analysis are required because they assist organisations in weighing benefits and drawbacks in a data-driven manner, allowing them to make difficult decisions in a methodical manner. Manager should identify and project the explicit and hidden costs and benefits of a proposed action or investment in order to conduct an effective CBA. There for we have carried out two CBA for option 1 and 2. It’s vital to note that this application does have the drawback of just providing an estimated result because the benefits and expenses are not correctly entered.

6.Cost benefit analysis

Punto Blanco: Cost Benefit Analysis for the Rebrand of the Swimwear Launch


Punto Blanco’s management seeks to diversify its product portfolio to remain competitive in the global bazaar. The company aims to achieve a meteoric expansion in the production of swimwear to supplement its current product listings such as socks, lingerie, and underwear. The demand for swimwear is increasing over time since the proportions of athletes indulging in outdoor events such as water sports, swimming, and related activities significantly increase. The demand for swimwear made from nylon and polyester is skyrocketing in recent years as Punto Blanco also focuses on producing a variety in colour, fabric, and style.

The Main Non-Recurring Costs



Packaging design


Research and development (R&D)


New tooling requirements –warehouse & equipment


Systems engineering – mechanical & electrical infrastructure


The Main Recurring Costs



Year 1

Year 2

Year 3

New material (nylon, polyester etc.)




New employees’ salaries









Parameters related to costs and benefits;

Hiring new personnel will trigger a revenue increase by 30% within one year. The expansion intends to generate a revenue of €280,000.

Procuring new facility for warehousing and inventory management at €100,000.

Procuring new machines for the production and customization of swimwear fabric.

The expansion will augment the brand awareness of Punto Banco and generate an additional revenue by a margin of €70,000.

The salary for new and professionally skilled employees is €140,000 during the first year of expansion.

The procurement cost of new equipment is €15,000

The cost of additional mechanical and electrical infrastructure is €10,000.

By How Much Will Your Project Increase the Company’s Revenues?

Total Benefits – TB

Increase in revenue of hiring five additional skilled personnel plus increase in revenue derived from brand awareness.

TB = €280,000 + €70,000 = €350,000

Total Costs – TC

Aggregate expansion expenses. Salary for new employees, procurement cost of new warehouse and equipment, and cost of supplementary mechanical and electrical infrastructure.

TC = €140,000 + 100,000 + €15,000 + €10,000 = €265,000

Benefit – Cost Ratio

TB/TC = [350/265] = 1.32

The expansion into swimwear manufacture will generate positive outcomes for Punto Blanco.

Increase in Revenues


Estimated impact on revenue

Year 1

Year 2


New employees’ salaries




New material costs




Brand awareness costs




Benefit-Cost Ratio




Total Benefits




Net Benefits




Net Present Value – NPV

Free Cash Flow (FCF) = Operating Cash Flow – Capital Expenditures


Sales revenue increase at 10% growth per annum

Accumulating excess or surplus cash due to increases in sales revenue

Less cash payments for taxes, interest, and restructuring

Capital expenditures: salaries, advertising, and material costs

Fixed discount rate (i) at 10%

NPV Table


Year 1

Year 2

Year 3

Calculate the cash flow adjusted for the cost of capital (i)

Net Benefit of Year 1/1+i

€85,000/ (1+i)

Net Benefit of Year 1/(1+i2)

€165,000/ (1+i2)

Net Benefit of Year 1/(1+i3)


Operating cash flow




Total capital expenditures








[85000/(1 + 0.1)^1]

[165,000/(1 + 0.1)^2]

[140,000/(1 + 0.1)^3]





Option 2

Investing in social media

Non-Recurring Costs

The main non-recurring costs for the marketing campaign that involves investing in social media in Spain for the brand Punto Blanco will be the packaging design. The estimated cost of packaging design will be €180 for the marketing campaign.

Main Recurring Costs

The main recurring costs for the marketing campaign will be subscription charges, new employee salaries, internet subscriptions, and influencers (Tiago, Borges, and Veríssimo 704). The total estimated recurring costs for the first year will be €72,500 while in the second year, the estimates will rise to €83,000 and €83,500 respectively.

Recurring costs

Estimate year 1

Estimate year 2

Estimate year 3

Subscription charges/ Ad charges




New employee salaries




Internet subscriptions








Total recurring costs




Impact on Revenue

The social media marketing campaign will have a significant impact on the company’s revenues. The company expects an increase in unit sales following a rollout of the campaign, boosting its total revenue performance (Tiago, Borges, and Veríssimo 704). The brand will report a 25% increase in revenue in Year 1 while in years 2 and 3, the total revenue will increase by 20%.

Increase in revenues

Estimate of impact on revenues in Year 1

Estimate of impact on revenues in Year 2

Estimate of impact on revenues in Year 3





Estimated increase in revenue




Revenue increase




Net Benefit

Recurring costs

Year 1

Year 2

Year 3

Increase in revenues




Recurring costs




Net Benefit




Net Present Value


Year 1

Year 2

Year 3

Net cash flows




Discount factor (10%)

(1 + 0.10) 1 = 1.1000

(1 + 0.10) 2 = 1.2100


Revenue increase




Net present value = (€25,909.09 + €5,785.12 + €12,396.69) = €44,090.90

Punto Blanco has two main options or avenues of investment. First, the company can invest in diversifying its product line up. Second, Punto Blanco can sink money into a marketing campaign primarily through social media. These two approaches have different costs and benefits, as can be seen from the cost-benefit analysis done on the two options, and it is of the utmost importance to fully understand what each investment entails and what it stands to bring into the company’s coffers (Fomina et al., 2018). Thus, these two investments will be compared for their relative merits and demerits.

The costs of investing in product development are high, but so are the benefits. Initially, Punto Blanco will spend 205,000 euros on non-recurring costs, along with 165,000, 185,000, and 210,000 euros on recurring costs in the first, second and third years respectively. The returns or benefits from this spending will be 85,000, 165,000, and 140,000 in years one to three. The total return over three years will be 390,000 euros over three years.

The costs of investing in social media marketing are low, being 180 euros in recurring costs and 72,500, 83,000, and 83,500 euros in the first, second and third years respectively. The benefit coming from the social media investment will also be rather low, with revenue increases of 25%, 20%, and 20% being expected in the first, second, and third years respectively. The total return over three years will be 28,500, 7,000, and 16,500 euros for years one to three, adding up to a total return of 52,000 euros over three years.

As can be extrapolated from the data above, it is a better idea for Punto Blanco to invest in product development. The net present value of the first investment is 241,547.71 euros, while the net present value of the second investment is 44,090.90 euros, with both figures being calculated over three years. According to reputable sources (Jordan et al., 2017; Pearl & Rosenbaum, 2021), the possible investments with a larger net present value are the ones that should be selected for implementation. Therefore, Punto Blanco should invest in product diversification as long as it can raise the capital to invest in this direction, seeing as the net present value of this investment is far higher than that of the other social media marketing investment.

7.SAF Matrix Analysis:

Mainly as the SAF matrix (appendix 3) is one of the most necessary matrices held accountable for strategy determination in the business of Punto Blanco. The designated framework is one that has been proposed by different scholars in the field of management to hold and consider several external and internal factors at the mean time the figures as key stakeholders and investors in the business itself. The matrix was mentioned to be using the suitability, acceptability and feasibility criteria sections. Mainly all to evaluate the most suitable strategy for the business to adapt and implement its process easily.

Moreover, in this phase of evaluating the acceptability section, it can be mentioned that most suitable alternative is the last section, whereby the management of the company should be heavily investing in the marketing efforts, communication, advertisements and addressing of their brands across different social media platforms. The brand has long been known for its low addressing in the marketing efforts and strategies done across its hierarchy. On the other hand, how, the company was all known for its effective use of word of mouth in the company. Meanwhile this is considered to deliver a competitive advantage for the brand itself.

In the next option of the research paper, the suitability aspect would consider the development of a new product line or relevant line extension for Punto Blanco, which would be able to enhance and consider new methods for success for the business. On the other hand, the degree to handle new entities and specialities in the business would effectively develop the business compared to its similar players in the market.

On behalf of the feasibility section of the SAF matrix of the project, it has been agreed upon that the most suitable option is the development of new product lines in the market of clothing lines as the atmosphere for proposing this alternative is actually feasible in the current situation. The company’s current situation is all considered to handle a new financial allocation of new budgets towards new clothing lines, available allocation resources is on the right track for the new process and the whole organizational culture as well.

The three options in the SFA matrix are based on the Ansoff model encompassing market penetration (Option 1); product development (Option 2); and diversification (Option 3). The objective of market penetration is to increase market share by engaging more with the existing consumers, while diversification aims to increase productivity growth through entering new markets or industries (Loredana, 2017). The other option of product development focuses on introducing contemporary goods in the market to replace or update the currently offered products (Loredana, 2017). For social media investing, market penetration has the highest score, while diversification tends to offer the lowest results. However, the swimwear investment choice significantly performs better across the three domains (suitability, feasibility, and accessibility) compared to the social media line. Both market penetration and diversification strategies perform relatively well in swimwear investment. Based on the SFA data, the swimwear apparel business performs relatively well in terms of overcoming weaknesses/threats and exploiting strengths/opportunities in the suitability domain. Further, both feasibility and accessibility are greater in swimwear than in social media due to better access to financing and resources and high stakeholder relationships.

            Therefore, the swimwear investment choice is recommended over the social media choice as it performs high in market penetration and diversification strategies based on the SFA matrix data.

8.Project proposal

This project is based on the expansion of a new swimwear line using social media and digital technology.

The internal business environment would play an essential role in defining the project success. The project team would use an innovative approach to encourage l using marketing strategies and techniques to promote the new line of products on the mainstream and social media platforms. For example, a suggested campaign strategy would be to spread the word about the rebranded swimwear product by offering discounts to customers to purchase socks and swimwear products due to the Punto Blanco company socks products position in the market, making it the primary source of revenue for the business. The marketing team would use the marketing campaign strategies in B2B and B2C platforms of the company’s business.

The Gantt chart (appendix 1)shows the planned activities and how the team will implement them in phases. The company’s finance department shall be accountable for availing the financial support to implement the project successfully. The internal design sections and research team shall lead the designers and rebranding team of the existing swimwear line products. They will play an important role in the trending fashions and styles in the product development. The management shall approve the proposal presented to them backed by business ethical guides and processes to support the successful implementation of the project by punto blanco.

Establishing objectives – Because it contains the initial engagement between the business consultant and Punto Blanco, this phase is critical to a successful project. This activity will provide the business consultant with the chance to specify whatever goals he or she wishes to achieve when the project is completed.

Evaluation phase- This step entails extensive investigation into possible Punto Blanco suggestions based on the previously gathered data. To determine which alternative is best, a quantitative (CBA) and qualitative (SAF) study is required to identify the benefits and drawbacks of each choice. Finally, a project charter outlining the fundamental tasks that must be completed would be required. It would aid in identifying which activities are required for the project (WBS), the length time of each activity (Gannt Chart), and the sequence in which each work should be completed in order to save time and money (CPM).

Execution: At this point, the proposal is in the process of being implemented. The business consultant begins by outlining all of the project’s goals, resources, budget, and timeline.

Following the presentation of the project proposal, the organisation must decide whether or not to implement the proposal. If the proposal is approved, the business consultant will have to keep a close eye on each phase of project to see any potential issues. The consultant must understand when to use precautionary measures to limit their consequences.

9.Quality Control

The company has a well-established quality control department. Quality is part of its culture, and the project quality is not comprised. The responsible quality assurance department shall establish the quality standards the newer rebranded products must meet customer expectations. The quality control would increase efficiency, provide product consistency, and maintain customer satisfaction. The quality control team or department shall document inspection tests on the rebranded products, verify the quality of the products, recommend rebranding or reprocessing of any low-quality product, and ensure all goods produced to meet the set quality standards.

The balanced scorecard enhances implementation strategy and operational management in the project development. It has four categories, each having a key performance indicator (KPI). The classification includes internal procedures, development and growth, financial, and customer details. The responsible team in the quality control sector shall provide adequate information about customer expectations and incorporate it into the expected outcomes. Specialists shall project and distribute the financial requirements for the project evenly through the time the company implements the project. They shall document the development and growth of the project in phases to help the team in monitoring the progress. The implementors of the project shall also follow the company’s internal procedures in the project implementation.

10.Risk Assessment

Risk assessment is an essential step the organizations have to consider in business and product success. The assessment must weigh the internal and external risks associated with a company and product. For example, the risks of competition from products offered by rival companies and risks from multinational companies have many business advantages. For example, stable financial position and capital give them a competitive edge compared to Blanco company. Researchers have to do risk assessment by analysing the company’s internal and external processes, allowing it to formulate and establish measures to manage the risks effectively. It results in a successful product launch and company success. The risks linked to the project would include project delay and budget shortage risk.

The project team must incorporate appropriate risk management strategies to manage the noted risks effectively by employing the most effective risks management strategies. For example, the company, reviewing when risks results indicate they have less harm if they occur, might transfer, reduce, avoid, absorb, or accept the noted risks. The risk assessment review should follow the existing steps and processes approved by risk experts and professionals. Identification of the potential hazards, and how they can impact the review noted down the rebranding swimwear products project of the company. Specialists conduct the hazards identification to consider the different stages of the product development from the initiation to the final implementation of the project.

They make hazard identification by observation, analysing past incidents, and consultation with employees and other professionals in risk areas. Then the team reviews how the identified hazard impacts documentation. For example, Blanco’s employees, contractors, or suppliers transact with business. The next stage is the establishment of risk severity and developing precautions the company and individuals can take to manage the risk effectively. Knowledge on reduction, elimination, or controlling the risks is essential at this stage. Then the team implements changes and records down observations made in the risk assessment process. Then specialists conduct a recording of the hazards noted, people impacted, date of conducting the assessment, controls put in place, and the people responsible in the process. Finally, they review the risk when any incident happens after implementing the measure to manage and counter the risks.

11.Schedule key points

After defining how the project will develop, the following step is to construct a detailed timetable. This plan will comprise a scope of work with associated deadlines, a Critical Path Model (CPM), and a Gantt Chart.

The Gantt Chart (appendix 2) specifies the length of each activity as well as which of them may be completed simultaneously. Due diligence is what happens when numerous things happen at the same time. This due diligence condition may be spotted owing to the Gannt Chart, which displays when it will occur and what will proceed afterwards (Pradeep, 2005).

12. Conclusion

Punto Blanco has a strong Spanish foundation and a corporate culture which has driven it to consistent success over its 70 years in business. However, despite continuing growth and innovation, the company is increasingly vulnerable to a lack of diversification in both distribution and revenue. Furthermore, it is not currently maximizing its penetration of emerging markets. This report has suggested three approaches which will address these critical problems currently facing Punto Blanco which will allow it to continue its substantial growth even through this challenging economic period.







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