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Unit 5 Launching A New Venture

26 Pages 6446 Words 374 Downloads

Introduction

Starting a new venture is not an easy task because it requires several skills and abilities so that individuals can handle a particular business in any situations. Entrepreneurs start up a new firm with the aim of achieving set targets or objectives while operating business. They also consider various problems which may have to face by them regarding cut throat competition, market challenges and various issues within the firm (Baron, 2011). This report is based on Fresh Bakery shop which is going to start in the city of London, UK. This firm produces various types of foods and sell it in the market such as bread, cookies, pastries, cakes, sandwiches and pies etc. Therefore; there is requires to analyse proper market conditions, customer’s expectation and demands and social impacts. This assignment will discuss specific tangible and intangible resources that necessary for launching venture. It will also produce proposal and assess several skills or capabilities for new business. Various promotional activities and channels will be undertake and develop a plan for both launch or pre-launch. It will produce a cash budget and suggest a legal form.

Task 1

P1 A new venture identifying specific target markets and competitive analysis

Fresh Bakery is a small shop that deals in various baked products and sells in the market place. In the present scenario, many people are addicted to consume baked products such as pastries, cakes, burgers and sandwiches and many more so they prefer to take these foods rather than other. Therefore, this shop is going to open in the mid city of London so that number of customers can be attracted towards firm for consuming various products or services in well manner (Tang, 2011). Fresh Bakery is also providing Cookies, Ice cream, Cold drinks and Chocolates etc. in the shop. There is define small plan for new venture such as;

An individual is going to start a new venture which is known as Fresh Bakery Shop that will be open in the area of 2000 square foot at London Street. The Owner of this firm chose best locations or area and hired suitable place on lease of 2 year so that business can be established in more efficient manner. Individual has required some sufficient funds for opening effective firm because it is necessary to run the business operations in better ways. Owner has arranged some required funds for starting venture such as approx £ 3,50,684 to £3,52,684.

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Objectives:

  • The main objective is to provide best quality of foods to customers.
  • Increase reputation in the market place.
  • Enhance growth and develop the business.
  • Increase productivity and profitability.
  • To become a best Bakery shop among competitors.

Mission: “To Provide best organic and fresh baked products to customers for satisfying needs and wants and take care of their health and safety”.

The main aim of this firm that to provide effective and fresh food to consumers by considering their health and safety as well (Bijker, 2012). Therefore, owner concentrate on quality of food and services so that number of customers can be attracted towards shop.

Target market: This is necessary step which must be undertaken while making decision regarding opening a new venture because businessman have to define the target market and consider their particular need or wants towards products or services. this will support in reaching at potential customers and meet desired expectations. It can be possible by segmenting the market as per the consumer behaviours and undertakes some important components such as income level, gender, region, religion, tastes and preferences, age, lifestyles and many others. Fresh Bakery should find its target audiences by segmenting the markets in appropriate manner.

Competitive analysis: In this consider various competitors who also deals in same products. There are number of competitors available in the market who are providing baked products in the marketplace. For example, Peggy Porschen cake Ltd, Primrose Bakery and Cutter & Squidge etc. these all are biggest competitors that have covered wide area of the market of London. Therefore, Fresh Bakery has to make better strategies for selling its products such as innovation and creations in the cake, pastries and also serves different varieties of cookies so that customers will be influenced and ready to consume particular food in well manner (Burns, 2017). It is necessary task that entrepreneurs have to analyse competitors so that appropriate plans or strategies can be formulate in more efficient way.

P2 Specific tangible and intangible resources that required for a new venture

For launching a new venture, an entrepreneur make plan to arrange the appropriate resources so that business can be established and develop in better way. Therefore, it is compulsory to arrange the appropriate funds and financial facilities for operating business activities as well as functions. Fresh Bakery is dealing with varieties of foods such as Cookies, Cakes, Chocolates, Pastries, Ice creams and Cold drinks in the market at reasonable price so that customers can fulfil their demands and expectations in more effective manner (Caselli, 2018). For start ups or opening new business, there are various resources required which will support in running particular business as in this considered some food stuffs, material for making foods and many others. Fresh Bakery Shop also needs various kinds of services such as tangible and intangible that can be understood by followings:

Tangible Resource: In this undertakes those resources that have physically existence and that can be seen such as plants, tools, equipments, and materials. Every organisations focus on arranging entire necessary resources that can be useful for running the business. In this, the most important resources are financial. When owner of Fresh Baker decide to launch there bakery they realise that there is requirement of various tangible resources. Such as oven, refrigerator, bakeware, proof boxes, mixers, chair and tables according to ambiance, land, decorative items and many more. These resources help them in conducting there services and making products in appropriate and effective manner.

Intangible Resources: This is another necessary factor which must be required for establishing appropriate business in well manner. It consists several components such as patents, goodwill, corporates, consumer relationship, culture and trademarks that play crucial role in getting success within the firm in better ways. There are no any physically existence of intangible assets as in this considered IP which included copyrights, trademarks, methodologies, and any tags or symbols that are very beneficial in identifying and recognise the particular brand as well as company (Negri, 2018). In other words, intangible resources is very helpful for every organisation because it support in brand identifications, employees attributes, market reputations and various activities regarding business. Intangible resources which is essential for launching Fresh Bakery are goodwill which they develop at marketplace, patents, brand name and image, copyrights of there method, trademarks, licenses for operation businesses functions and many more. The Fresh Bakery shop focus on employees behaviours and attributes for treating every customers in well manner so that they can satisfy their needs or wants. They will also remember the firm whenever purchase any baked foods. Customers also will be loyal for long term towards company.

Therefore, it can be analysed that appropriate resources are required for operating any business and perform various activities or functions in well manner. These resources also compulsory for small and medium enterprise as they can attain best possible outcomes by utilising tangible and intangible resources. Along with this they required funds and capital for purchasing resources so that they launch bakery in proper manner. Budget which is prepare by Fresh Baker is on monthly basis such as according to pre launch budget they required approx £ 2300 in January, £ 2800 in February, £ 1700 in March and many more.

Task 2

P3 Produce a credible proposal to launch a new venture

In this defined that to launch the new firm or start ups, there is required an adequate plans. Owner consider this and produce an effective plans for the purpose of achieving set targets or goals in an efficient way. Planning must be made in proper manner by ensuring that it will bring effectiveness and various changes so that company can achieved its objectives and best outcomes (Fernhaber, 2013). Planning is an essential for making better position of the firm and decide the actions in effective way. It generally formulates by the proposal in which considered all necessary plans and actions that have been taken place in the future. Proposal is very helpful component that described about the whole details and meet company's missions or visions in appropriate manner. In the Fresh Bakery Shop, there are required better plan that can be understand by taking some specific details such as:

Executive Summary

Fresh Bakery is dealing with number of baked and confectionery items including burgers, sandwiches, cakes, pastries, and ice cream, cold drinks and many more.

Company description

An individual is starting a new business which is Fresh Bakery Shop and they will provide several foods and beverages to the customers. It will operates in the London Streets. It will considered 2000 squares feet in the London city (Li, 2013). Person has taken this place on lease as well as rent for running business in an appropriate way. Owner choose this place for generating more revenues or higher profits in an efficient manner.

Market Analysis

To run an organisation, there should be effective planning and strategies which will support in expanding business at several places. Owner is focusing on business expansion which can be possible by analysing the market trends and conditions. In this undertake SWOT and PESTEL by examining and studying of environment in an appropriate way. It will also support in achieving of competitive advantages.

Financial projection

For launching the new venture, there are needed of appropriate funds or financial funds because without this resource, company cannot run. Therefore, Fresh Bakery have to make adequate budget and make decisions about the minimum capital for starting business functions and operate various activities in an effective manner.

Benchmarking

In this, owner consider benchmark by setting standards of the work in an effective way. It will support in ensuring about the customers or employees that they are performing every tasks according to set benchmarking with comparing it.

P4 Skills and capabilities required to launch a new venture0

In this defined that business can be starts and operates in well manner by utilising better knowledge and skills in very effective way. Owner should have better skills, qualities and knowledges which will support in achieving predetermine goals or objectives (Hmieleski, 2012). Therefore, to start the Fresh Bakery shop, individuals must have proper ability and capabilities for achieving set targets or objective as well. There are number of skills and abilities defined that have acquired by the owner such as:

Risk taker: Owner must be ready for taking any kinds of risks while operating firms in the market. Therefore, Fresh Bakery can be launched in very effective manner by an individual because they are ready to face any critical situations as well as make proper actions plan in different circumstances. It will be support in accomplishing set targets and get best possible outcomes.

Leadership skills: this is another important skills which is required to enhance the productivity and profitability. Leaders always support to its employees as they motivate as well as stimulates them so that they can increase their work productivity and work hard to get success.

Presentation of proposal: This is very necessary component as in this required appropriate presentation of the work and plan on the front of people so that they will be able to understand everything in more efficient way (Cole, and Baron, 2012). Therefore, the owner of Fresh Bakery have to display their ideas, views and action planning for achieving competitive advantages.

Optimistic and visionary: In this considered that individuals have required to be confident and optimistic person regarding their business so that they can achieve predetermined goals or objectives in defining time period (Kariv, 2013). It is necessary to be ready for accepting any changes or challenges that may be includes risks or uncertainties whiles running an organisation. Entrepreneurs always focus on achieve visions and targets in any critical circumstances to develop the business.

Task 3

P5 Different promotional activities and channels for launching new venture00

In this concern with various tools or techniques for the purpose of promoting particular business as well as products or services in an efficient manner. Every entrepreneur consider the appropriate strategies and promotional tools for launching new business in the market place. May of firms take support of marketing mix for formulating better strategies and actions plans in well manner. There are some important tools of promotions that undertaken by the Fresh Bakery for promoting their business such as:

Use of social media to promote business: In this included various social platform for the purpose of creating awareness such as Facebook, Instagram, Emails, websites and LinkedIn, Twitter, YouTube and many more for promoting particular business (Klotz, 2014). The Fresh Bakery can use this mode for creating awareness among UK people regrading the new venture by effective social media platform.

Articles and Blogging: It is another important method in modern world as there are various companies who focused on using articles and blogging for providing necessary information to the targeted audiences. In this, they describe about the products or services so that customers will be aware regarding products and services. it can be beneficial for Fresh Bakery shop.

Mobile Billboards: This is another form of promotional tools as many of firms consider the mobile billboards for providing accurate informations to the targeted audiences (Kuratko and Hornsby, 2017). In this included several forms of symbols such as Stickers, Punch line and logo for particular business. Fresh Bakery also can consider this for promoting the venture in an efficient manner.

Personal promotions: Every business firms can be developed in well manner by considering public relations as it is helpful component for small and medium enterprises as to make better relationship among them so that long term benefits can be get by the organisation. There are several promotional plans defines that can be helpful for Fresh Bakery in better interaction with social people, group discussion and meetings, emails as well as social media conversations etc.

Hence, it can be analysed that there are number of promotional tools available which Fresh Bakery can undertake for the purpose of business promotion (Morris, 2015). The best component of promotional tools is mobile billboards and social media that are very beneficial for achieving set targets or goals in more impressive manner.

P6 Develop an appropriate promotional activities plan for both launch and pre-launch0

In this consider that every firm required to make appropriate plan for the purpose of promoting the new venture among competitors. It also must be included in the planning activity for business as how it will promote its products and services in both as pre-launching and launching of the new venture in the market place.

Pre-launch Promotions: in such process, company prepare a particular websites and any pages for launching a new venture. In this included several techniques and promotional channels for promoting products or services. Fresh Bakery has introduced its tag line that “Tasty food and Healthy food” and also considered an effective logo for pre-launch of the business.

Launch promotion: In this process, company focus on attracting various customers and number of people towards company as it also known as recalled of public (Read, 2016). Fresh Bakery can undertake several modes of promotions to create more awareness among people such as blogging, YouTube, and other advertisements for business promotions as well as development.

Task 4

P7 Monthly cash budget for the pre-launch phase00000000000000000

There is defined an appropriate budget for launching a new venture as Fresh Bakery also consider this and made a cash budget. Pre launch budget and post launch budget of Fresh Bakery is given below:

Pre launch cash budget:-

(Amount is in £)

Pre launch cash budget

             

Cash Flow budget

             

Particulars

Jan

Feb

Mar

Apr

May

June

July

Cash inflows

             

Investment

8000

           

Credit sales

2000

3000

3000

4500

1500

3500

4200

Total inflows

10000

3000

3000

4500

1500

3500

4200

Cash outflows

             

Fixed : Equipment’s

2000

2500

1500

2000

1200

1500

800

Variable : Direct material

300

300

200

300

150

500

300

Total outflows

2300

2800

1700

2300

1350

2000

1100

               

Net cash flow

7700

200

1300

2200

150

1500

3100

               

Opening balance

0

7700

7900

9200

11400

11500

13000

closing balance

7700

7900

9200

11400

11550

13000

16100

             
             

August

September

October

November

December

Jan

 

1000

2000

800

1200

1500

3600

 

1000

2000

800

1200

1500

3600

 
             

200

300

100

600

300

2000

 

400

500

100

100

400

300

 

600

800

200

700

700

2300

 
             

400

1200

600

500

800

1300

 
             

16100

16500

17700

18300

18800

19600

 

16500

17700

18300

18800

19600

20900

 
                           

 

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0

           

Feb

Mar

Apr

May

June

July

3000

3000

4500

1500

3500

4200

3000

3000

4500

1500

3500

4200

           

2500

1500

2000

1200

1500

800

300

200

300

150

500

300

2800

1700

2300

1350

2000

1100

           

200

1300

2200

150

1500

3100

           

20900

21100

22400

24600

24750

16250

21100

22400

24600

24750

26250

19350

 

Post launch cash budget:-

(Amount is in £)

Post launch cash budget

             

Particulars

Jan

Feb

Mar

Apr

May

June

July

Cash inflows

             

Investment

8000

           

Credit sales

1200

2000

7500

3000

5000

6500

1200

Total inflows

9200

2000

7500

3000

5000

6500

1200

Cash outflows

             

Fixed : Equipment’s

2500

1200

1500

2500

1100

1500

1200

Variable : Direct material

350

300

250

150

100

500

500

Total outflows

2850

1500

1750

2650

1200

2000

1700

               

Net cash flow

6350

500

5750

350

3800

4500

-500

               

Opening balance

0

6350

5850

11600

11950

15750

20250

closing balance

6350

5850

11600

11950

15750

20250

19750

 

           

August

September

October

November

December

Jan

3200

1500

8200

1250

3210

1200

3200

1500

8200

1250

3210

1200

           

600

500

500

1200

700

2000

250

450

250

1300

500

300

850

950

750

2500

1200

2300

           

2350

550

7450

-1250

2010

-1100

           

19750

22100

22650

30100

28850

30860

22100

22650

30100

28850

30860

29760

 

           

Feb

Mar

Apr

May

June

July

5000

2500

4500

1500

3500

4200

5000

2500

4500

1500

3500

4200

           

2500

1500

2000

1500

2000

200

300

200

250

360

250

500

2800

1700

2250

1860

2250

700

           

2200

800

2250

-360

1250

3500

           

32160

32360

33660

35860

36010

37510

34360

33160

35910

35500

37260

41010

P8 An appropriate legal form for the venture

It is defined that every organisation should be in proper manner, therefore company have to determined an appropriate structure. It is an important part as every firm has to considered their appropriate structure that have formulated by the UK government (Robb and Watson, 2012). They formed number of legal legislation and laws which must be followed by the organisation. There are several forms of venture such as:

  • Sole Proprietorship: It is defined about the owner of the enterprise who starts and operates business on their behalf. An individual is responsible for running and maintaining the firm in more appropriate way. This is a common form of structure which also inexpensive process that helpful in creating basic reports regarding the firm. Individuals is responsible to manage the firm and bear loses or risks while running the business in an effective way.
  • Partnership firms: This is another way for launching a new venture as in this two or more persons come up with appropriate and necessary resources including land, capital and physical material for starting a new business (Simon and Shrader, 2012). They deals in operating firms and decide to divide the profits by sharing among every partners. The major weak point of partnership is that every individual will bear any losses or risks if occurs during business operations.
  • Public sector: In this defined that there are some public sectors firms which operates as well as run by the government. It shares generally hold by public as in this included various forms or types such as public and private limited which depends on nature of the business. Therefore, these firms usually owned and operated by government as well as private ownership which is depends on businesses. Their main purpose is to gain financial profits and achieve competitive advantages in an effective manner.

Therefore, it can be find that the Fresh Bakery is going to open or launching which has legal structure as per the government rules and legislations. Owner has considered partnership form of the legal structure so that they can operate business in well manner. It will support in bringing more effectiveness and efficiency because every partners are responsible to management 0and maintain the business operations in better ways. Fresh Bakery can create better positions in the market place and achieve competitive advantages as well.

Conclusion

Form the above report, it has been concluded that new ventures play crucial role in developing economies of country. It is an essential that bring more innovative ideas and rapid changes in the market or business environment as well. Entrepreneurs required several resources for operating the business such as tangible and intangible so that entire activities and functions can be performed in well manner. For launching new firm and run it carefully, individual needs various skills and knowledges as well as abilities so that they can make proper decisions and actions plans with the favour of organisation.

References00

  • Baron, R. A. and Tang, J., 2011. The role of entrepreneurs in firm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism. Journal of Business Venturing. 26(1). pp.49-60.
  • Bijker, W. E. and et. al., 2012. The social construction of technological systems: New directions in the sociology and history of technology. MIT press.
  • Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
  • Caselli, S. and Negri, G., 2018. Private equity and venture capital in Europe: markets, techniques, and deals. Academic Press.
  • Fernhaber, S. A. and Li, D., 2013. International exposure through network relationships: Implications for new venture internationalization. Journal of Business Venturing. 28(2). pp.316-334.
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