UNIVERSIDAD AUTÓNOMA DE NUEVO

LEÓN

Facultad de Contaduría Pública y Administración

International Business Program

1° Semester

INTRODUCTION TO CIVIL LAW

Profra. Mónica González Moreno

“Deconstructed”

Group 1Ci
2079307 Martínez Galván, Andrea
2081597 Martínez Loera, Pedro Iván
2079373 Flores Torres, Mauricio Alejandro

Ciudad Universitaria, San Nicolás de los Garza, October 25, 2020

1
 INDEX

INDEX 2

INTRODUCTION 2

CONTENT 3
Social responsibility 3
Money needed to start the business. 4
Financial sources. 4
Where could you find Deconstructed? 5
Organization chart. 5
Payroll. 5
Costs of production for Deconstructed’s products. 6
Marketing expenses. 6
Social media for Deconstructed. 6
Target Market. 7
Why those social platforms for Deconstructed? 7
Legal issues that threaten the company. 8

CONCLUSIONS 9

BIBLIOGRAPHY 10

2
 INTRODUCTION

Today, innovation and creativity are at the helm of the minds of thousands of entrepreneurs and their
projects. Being able to create something profitable and contributing to society is a motivation for
young people on their way to professional life. Every day, large companies are looking for
greener but still attractive options to offer to their markets. Soon, adapting to existing resources,
optimizing processes and taking advantage of available tools will be an important aspect that
determines the success (or failure) of new projects. In this project, these characteristics are taken
into account and a new project is born, which, thanks to the Introduction to Civil Law course,
could soon become a reality.

Deconstructed was born as a wake-up call to the textile industry. Currently around 90% of
textile waste ends up in landfills, and only between 5% and 8% is deposited in containers for
subsequent recycling and reuse. (Conama 2018) This amount of waste is not only alarming
because of the little or no useful life given to textiles, but also because of the hundreds of
resources that were involved and that may not return. An organization could do little if it tries to
force large companies to give up their (not very favorable for the environment) work schemes.
How to fight it? Well, if we can't stop the big textile producers, why not take advantage of what
they see as waste? One's trash can be another's treasure.

In this way, Deconstructed becomes a new form of fashion. Using the waste from the
large textile companies, unique and unrepeatable pieces can be created, with little-seen patterns
and original styles. Creating clothes has never been so eco-friendly, so profitable and so
productive as before. Our commitment to style and atmosphere goes hand in hand with our
passion for fashion, design and strong bold personalities. Our brand is for all those who want to
get out of the box, have something non-repeatable and build their style. Deconstructed is for you,
it is for me, it is the art of the old, the forgotten, the discarded; it is the art of the broken.

3
 CONTENT

1. Social responsibility
Desconstructed's social responsibility policy seeks to minimize its environmental impact by
manufacturing its products by promoting the use of textile waste and also the sale of cheap quality
clothes to give low-income people the opportunity to have good clothes at a low price. Among the main
responsibilities of the CPO are to establish initiatives and programs in innovation, responsibility and
sustainability.

The Descontructed company has also redefined logistics with a new approach of respecting and
protecting the environment. Collaborations with suppliers have made it possible for the Group to adopt a
series of technologies for packaging, logistics solutions and procedures that make it possible to improve
efficiency without penalising quality of service.

The measures taken include centralising warehouses and introducing new software that tracks all stages
of transportation and allows the use of vehicles to be rationalised. In the case of road transport, suppliers
must fulfil specific requirements, such as using vehicles that do not run on petrol and organising journeys
efficiently. Alongside this, packaging technology and design are also taken into consideration to reduce
shipping volumes and vehicle overloading.

These are just some of the measures that the company undertakes to ensure its message, its purpose and
to redefine the concept of fashion. Social responsibility (although it is becoming more and more a legal
requirement) is a pillar for our company.

2. Money needed to start the business.

Rent: $13,800
Griddle: $5,000
Vinyl cutter: $4,000
Hooks: $1,000
Carpentry: 25,000
Sew machine: $3,500
transport: 10,000p/m (for 10 months)

4
 Full collection kit: $4,000
Total: $66,300.00

After doing some research our team and I came to the conclusion that these are the indispensable
expenses that the company needs to begin running on business.

3. Financial sources.
After doing the review of the money that is needed for the beginning of our company, my colleagues and
I realize that we have on our power the amount of money that is needed to begin this business. However,
in order to protect our assets and assure a good start for the company, bank loans are considered. For the
initial investment ($40,000) $15,000 is going to be from a loan, this will lighten the financial burden of
the shareholders that are contributing each with $8,500 approximately per month.

4. Where could you find Deconstructed?

After looking for some options the corporate team of Decontructed decided to rent a local on the section
of Santa Catarina due to the lower prices and the good infrastructure of the mall that we are in, also we
think that the people of the zone will be more interested on our products the the population on other
zones.
Av Manuel Ordoñez 322, Ixtlera, 36640 Santa Catarina, N.L.
Plaza Santa Catarina local #4

5. Organization chart.

*Organizational scheme for the team of Deconstructed.

6. Payroll.

5
 The company has a total of 26 people on the payroll. They do not receive incredibly high salaries,
because we seek to make a social enterprise, so profit is not the most important, the most
important thing is to offer a product that improves the social environment.

Job Salaries

CEO $30,000 MXN

Finance manager $25,000 MXN

Marketing manager $25,000 MXN

HR managers $25,000 MXN

Design manager $25,000 MXN

Manager of operations $25,000 MXN

Workers $8,000 MXN per worker (20 workers)

Total $315,000 MXN

*Payroll for Desconstructed’s employees per month.

7. Costs of production for Deconstructed’s products.

The average cost of what we produce is 250 pesos, so that finally the customer can obtain our products in
about 500 pesos. These prices are because our raw material is textile waste, we seek to give it a second
use, making clothes with quality and style, all this while helping the environment and the economy.
Those 250 pesos will be divided into the cost of production (procedures), packaging, delivery services,
etc. Earnings are 50% above the cost pero cloth.

8. Marketing expenses.
We are planning to invest in marketing 10% of net income, which according to our first year projections
would be 100,000 pesos. That money would be invested in digital marketing on social networks and with
the support of influencers who can be ambassadors of our brand.

9. Social media for Deconstructed.

Considering our target market, social media will depend on the applications that our customers use the
most. Pew Research Center analysis “Demographics of Social Media” demonstrate that the
characteristics of audience according the platform they use are the following ones:
● Facebook: In addition to having a large percentage of young audiences, Mark Zuckerberg's social
network also reaches audiences between 35 and 54 years old. Similarly, 62% of Americans 65
years of age and older already have an account on this social network.

6
 ● Twitter: 71% of users are between 25 and 54 years old, and it is a very popular social network
among communication professionals (journalists, publicists, etc.).
● Instagram: 60% of the users of this platform are between 18 and 29 years old, but the majority are
women.
● LinkedIn: This social network is used by about 25% of the adult population, the vast majority of
them are professionals with higher education.

Having this information, it is easier to determine that the best options for the company are: Facebook and
Instagram (which continue to be the world's most popular social networking platforms by substantial
margins).

10. Target Market.

Our market segmentation is mainly focused on mexican men and women, from 18 to 30 years whose
individual earnings oscillate $10,000 - $20,000 a month. We are also considering teenagers or young
adults interested in ecology, style, new trends, arts, etc. People interested in fashion are also an important
part of the segmentation.

T-shirts made pretend to become part of an ecologistic movement. In order to take advantage of social
media and marketing, our target market is going to be mexican teenagers and middle-aged men and
women with the characteristics established before. The creation of the “buyer persona” will allow us to
identify the ideal stereotype of the perfect customer (according the currency of features described)

Buyer persona 1 Buyer persona 2

“Violeta” “Carlos”

Studying at school. He is a university student.

Her money comes from his parents. Works part time to buy her things.
Likes current fashion. Doesn’t like conventional fashion, you prefer a
Use social media a lot. more unique style.
Likes strong colors and accessories. Uses social networks and applications a lot.
Prefers to buy clothes online. Prefers to buy in stores, but look at the catalogs of
Loves promotions, contests, and giveaways. online stores.
Follow many "influencers", bloggers and social Participates in contests.
networks about fashion. He prefers to have all the information about a
Research and compare various prices and brands product before going to the store to buy (quality,
before making a purchase. price, guarantee, shipping, etc.).

7
 *Image for illustrative purposes, extracted from Unicef. *Image for illustrative purposes, extracted from ALFA.

11. Why those social platforms for Deconstructed?

The selected social networks were Facebook and Instagram. The reason why this were chosen above the
other depend on the following characteristics:
1. 79% of internet users (68% of all America’s adults) use Facebook.
2. Young adults continue to report using Facebook and more and more are joining in increasing
numbers.
3. 32% of internet users (28% of all America’s adults) use Instagram.
4. Instagram use is especially high among younger adults (target market).

While Facebook will allow the company to be known by a considerable part of internet users (public in
general) Instagram will keep that relation with our main target. In addition, considering the nature of the
product that Dconstructed is offering, is more likely to work on advertising as visuals, dynamics,
interactions and many other that both of the social platforms could offer.

Furthermore, both of the applications selected offer the company the management of the accounts
through specific schemes for businesses. With commercial profiles, the brand can easily access
information created automatically on the interaction of followers and accounts. In this way we can
analyze how to approach our market, the time when we should do it and through which dynamics is
recommended.

Lastly, the majority of topics that the brand has to be aware of are mostly discussed on these platforms.
Having the overview of the public opinion would become a tool by the time we analyze our market, their
necessities and the approach to the brand. We will be able to measure our recognizement through
follows, likes, shares and many other predetermined buttons.

8
 *Visuals for social media.

12. Legal issues that threaten the company.

While developing the brand, there could exist legal issues related from the design of the clothes to major
infractions to the law. As a brand new production of clothes, most of the problems we could face are
related with the protection of the designs and image. However, there could exist more problems that
could be significant obstacles for our growth.
1. Supplier non-compliance: Not being able to produce our raw materials makes us dependent on
suppliers. Regarding this, it is common for us to face problems as late delivery of their product or
service or different quality and quantity than those agreed. It will be mandatory for us to sign a
contract drawn up by a specialist, in which the characteristics of the product or service are
detailed, so that we are not involved in those situations.
2. Customer complaints: customer complaints are a problem that any business can face. However, in
the case of Deconstructed, complaints can be directed towards the staff, their treatment, or as such
the products offered and some inconsistencies with what is promised and what is given.
3. Worker demands: Part of the problems and controversies with the greatest legal weight that large
clothing stores have faced have been in relation to their workers. Exploitation, abuse of power,
among others are issues that do not go with the ethics of the company, but could still happen
under unexplored circumstances. A lawsuit by a worker could lead to bad reviews and therefore
reduce sales.
4. Tax penalties: The company and the accountant in charge must agree on conditions that avoid tax
penalties as a result of situations such as not filing tax returns, not registering tax obligations or
tax domicile. In many cases, failure to comply with tax obligations can lead not only to the

9
 imposition of fines, but also to have responsibility for a tax crime, which could complicate the
legal and financial situation.
5. Impact on heritage: Having company expenses under control and making a financial separation
could avoid problems in which our assets are later involved or affected. Eventually, the company
will be forced to work hand in hand with an attorney to help define the legal structure of the
company and protect the assets.
6. Problems related to the use of trademarks and patents: Carrying out the respective trademark and
patent registrations could avoid future obstacles. In addition, in the case of trademark registration,
it is a preliminary step so that the business can be franchised later.

CONCLUSIONS

After doing this work our team have realized that there is a lot more things that you need to begin a
company then just the money, we need to take in count a lot of legal points that we must fulfill in order
to have everything in order with your company (such things like paying the ISR along with the services)
and, also we must have very clear to what kind of society is going to be your product focus on, this will
help us to select the zone of our company and the prices along with the models, promotions and
publicity that the company would have. There are laws in Mexico like the Federal Labor Law, which
have to be respected. It is very important for all companies to comply with these rules, so as not to
have bigger problems afterwards.

Creating a business is more than just imagining it. Entrepreneurs now know how to work with what's on
their hands in order to preserve society and the place it lives. Concepts as sustainability, innovation,
industries and development were fundamental to come up with an idea as Deconstructed. Civil Law can
facilitate every company’s journey in its financial growth. Every detail could be significant for a new-
brand organization, from each customer to every product they purchase.

Deconstructed could easily become a reality by considering the aspects seen in the course. The
importance of being aware of those elements could determine the success (or failure) of business
proposals. As a tem we realized that being conscious and having plans about the future could assure
our professional life. In addition, we can say that now we are a little bit more prepared concerning
entrepreneurship and its connection with law. Little by little we are constructing our way to the top, and

10
learning and simulating what most of us expect to do in our lives makes us analyze all the things
needed, the motivation, the threats, and many more.

BIBLIOGRAPHY

1. Bullon, J., González, A., Encinas, A., Queiruga-Dios, A.. (2017). Manufacturing processes in the
textile industry. Expert Systems for fabrics production. En Advances in Distributed Computing
and Artificial Intelligence Journal(pp.40-43). Salamanca, Guanajuato: Ediciones Universidad de
Salamanca.
2. Greenwood, S., Perrin, A., & Dugnan, M.. (2016). Demographics of Social Media users in 2016.
November 06, 2020, from Pew Research Center Website:
https://www.pewresearch.org/internet/2016/11/11/social-media-update-2016/
3. Matt, M. (2015) Ethical Outsourcing. Recovered on October 28, 2020, from
https://www.forbes.com/sites/ellevate/2015/12/11/ethical-outsourcing-3-better-ways-to-
employ-global-talent/?sh=3c1d8426355c.
4. Prosser, D. (2018) Eight Key Characteristics Every Entrepreneur Needs For Start-up Success.
Recovered on October 29, 2020 from Forbes. Website:
https://www.forbes.com/sites/davidprosser/2018/06/29/eight-key-characteristics-every-
entrepreneur-needs-for-start-up-success/?sh=7bf8d7423321

11
12