Entrepreneurship is defined to be a crucial concept which is focused on converting an idea into action for the purpose of earning profits. The concept of entrepreneurship is referred to engine of growth for the economy of the United Kingdom. The new venture is mentioned to as a concept which is focused on achieving distinct position in the market so that right profitability could be achieved. The globalisation and rapid technological advancement have made it essential for an small and medium organisations to innovate and launch new products and services so that they are able to survive in the operating market (Koirala and et. al., 2016). This organisation is focuses on launching a venture by the name of Munchies. It is an venture which will be planning to serve F&B requirements of the people in an creative and customised manner. This assignment will focus on identifying resources which are relevant to launching a new venture along with determination of skills and capabilities are essential. The budgetary and legal requirements will be identified in the file as well.
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P1 Identification and explaining a new venture along with target market
It can be said that there are numerous activities which tend to define manner in which business activities are carried out. Therefore before initiating a business it is essential to identify taste and preferences of the consumers along with identifying feasibility in targeted market. The current venture which has been undertaken focuses on fulfilling the manner in which they desire. This venture will be responsible for catering F&B requirements in a distinct manner. There will be a variety of tea and coffee offering which are being imported from Africa along with offering customised Pizza in which an individual can specify the ingredients for further preparation. The reason being this organisation is considered for the market of United Kingdom is that there is no barriers for entry and exit of firms and people tend to eat on a frequent manner (Kuratko and Hoskinson, 2016)
An enterprise has begin their new venture which name is Munchies. The firm will operate and generate this venture in 2300 square foot ad the owner of this company try to extend their hired place on lease for around 3 years with an alternative of extending time period. The fund which has been investing in this venture is approximately 345500 euro to 23400 euro in the set up of business.
Objectives: The one year operation objectives which are described as under:
- To be nominated for “best emerging F&B venture in UK” by local state
- Turn in taking advantages from starting month activities and functions
- Operated and managed around 65% of growth as the margin
Mission- The mission of company is to developing best efforts for making and creating creative positioning among customers mind and also providing best quality based food items to their buyers at reasonable price (Pan and et. al., 2016).
Target market- The main motive of this venture is to reach with their target customers so it will help in targetting market within an organisation that can assist in reaching with desired results or outcome in better manner. Target market define that certain group of an individual which are aim by business venture. There are different segment of whole market as per the needs and demand of potential customers. The main purpose of Munchies is to target adults, teenagers and family members towards their effective food and services. As per the income criteria, Munchies has mainly concentrate on middle class people to various other revenue category. They are targetting large number of customers who are interested to purchase their goods and services of an organisation.
Competitive analysis- The main rivals of Munchies is to compete with tough competitors which are take place in large market place of united kingdom. Other rivals are gaining high amount of financial situations which are using number one place with food and beverage. This will help in giving strength regarding brand virtue and great mind call consumer that will show the quality at reasonable rate and also enjoy the dominant location in entire market area (Liao and et. al., 2016). For compete with this, Munchies require to establish their USP of the firm within the competitive market place.
Porter's Five Forces of Munchies
- Bargaining Power of Suppliers – This is stated that the Munchies is an business enterprise dealing in the food and beverage industry, thus this sector mainly depend on the agricultural products for their raw material. As it is known that milk production is highest and its export is less because the demand of milk is high. Moreover the firm has very few options has the import products increases the prices of the end product. But the suppliers are sometimes exploited on price by the firm. Therefore, the suppliers are having the moderate rate of bargaining power.
- Threat of new entrants – The government provides many subsidies for the food and beverage industry and hence it is very easy to open a shop or start a business. Economies scale is also very low, but the obstacles from the government side are high, therefore the power of new entrant is very high.
- Threat of Substitutes – As this is stated that the trend of eating and food products are changing day-by-day therefore this industry of food can't be replace by an substitute, so the threat of substitute is having low rate.
- Bargaining Power of Suppliers – There are huge number of products in the market and daily innovations are done by the company so there is no lack of supplier. Therefore customers are having the luxury of selecting the product from the large amount of products and also the government has allowed the 100% FDI to the food industry. Therefore, the rate of bargaining power of suppliers is high.
- Competitor Rivalry – There are many competitors in the food and beverage industry, and there is no little scope for price appreciation, therefore the rate for competitor rivalry is high.
P2 Specific tangible and intangible resources
Munchies is the best food and beverage organisation in the local place of united kingdom. This can assist in reach with different food items and providing best quality based products to their guests in the venture. A resources define that source which gain advantages for being produced. There are two kind of resources which an organisation required to be maintained such as tangible and intangible resources (Caselli and Negri, 2018). There are certain resources which are described as follows:
- Tangible resources- In this, tangible resources can be determined as substance that are methods, equipments (2000£), raw materials (300£), physical plants, etc. all the visible resources can be used the direct monetary resource calculations that will consist with material and financial resources (Ghimire and et. al., 2015). In this context restaurant, Munchies food and beverage are the tangible resources that present the main services or facilities of an enterprise.
- Intangible resources- The board content scope such as trademarks, consumer relationship, corporate culture, patents and image, technology such are those resources which help in doing in manufacturing process and manage the business operation that is play role as indispensable. Along with this, an intangible asset are not physical in nature. The whole IP corporate consisting items that includes trademarks, patents , copyrights, methodologies of business, recommending brand, reputation, attributes of employees, etc. In Munchies, the quality of their staff members towards consumers, their attributes, quality of facilities that are the key components which hep in achieving the final results in better manner (Ke and et. al., 2015).
Along with this, an organisation can provide and offer value for long and short term goals and targets of Munchies for determining in clear manner. The brand should be implemented and executed which need to set appropriate designing of entire ordering that includes such components of Munchies that assist in coherently gaining their products cost and services.
P3 Produce a credible proposal to launch a new venture
It is necessary for business owners to formulate an effective proposal so as to ensure that whether their venture will be penetrate in market or not. For this purpose, marketing tools and techniques are being used in order to promote business at marketplace. In present scenario, Munchies is trying to expand its market with an aim of gaining maximum growth and viability. Management of the selected fast food service organisation is located at Chelsea which is one of the most popular place of UK. Its a sporting place, large number of visitors come daily to visit the place, henceforth implementing a business at there is very much beneficial for the firm (Khan and et. al., 2015). Furthermore, conducting a new business will provide numerous opportunities to companies in terms of raising their sales and profitability.
Proposal of new business venture: -
Executive summary - It is an initial stage of business plan which signifies entire information about the company, like – why the firm is established in market and its vision and mission. It also involves introduction of business owners, organisational cultural, policies and standards etc. The mission statement of Munchies is to deliver qualitative, low calorie and healthy foods to people and improve market presence of the company. Furthermore, executive summary also describes a short series of statements which encompasses the value that a business promise to deliver for its potential customers (Boyles, 2012).
Market analysis – In second stage, management conduct a market analysis so as to recognise general market conditions in which new venture will fill inside a specific industry, who are the competitors and who are the customers at there. There are various sources from where the information can be found, i.e. local chambers of commerce, online resources, networking contacts etc.
Identify products and services – After that, management should define that which type of products and services it will be offered for accomplishment of unmet needs and wants. For this purpose, firms should acquire new and innovative techniques so as to improve service quality (Liang and Dunn, 2011). It also involves that management should emphasis on offering those goods which are able to satisfy customers' need and desires in the best possible manner.
Develop a marketing strategy – Afterwards, identification of target market of the company and formulate marketing strategies supports to accomplish its vision and mission objectives. The marketing strategy of Munchies is based upon four elements, such as- product, price, place and promotion as it is based upon proper balance among these aspects. For example – if market competition is high, better advertisement and pricing could help.
Financial analysis – At last, business find out the entire cost which have been taken for introducing a new business venture. By considering above information entrepreneurs provides an accurate estimate business cost and how it will get affected. Following suggestions can help to conduct an effective financial analysis, such as – start up cost, monthly expenses, sales forecast, financing options etc.
P4 Assess skills and capabilities required and how they can be developed
Any start up venture requires specific skills and knowledge level which aids to run it imperatively and smoothly. UK government also supports small businesses as they can grow and diversify at marketplace. Following is defined several skills and capabilities which must have in a person who is involved in launching a new venture: -
Financial management – it is critical for business entrepreneurs to effectively manage their finance. They also focuses on forecasting their sales, cash flows and monitor profits and losses. Therefore, it can be said that the person have proper knowledge to implement financial strategies by considering several aspects, i.e. budget, market size, investors, liabilities and assets so as to make better business decisions (Yallapragada and Bhuiyan, 2011). Having sound financial management skills will help management to run any corporate unit profitably and as well as also protect financial investment.
Leadership abilities – Business entrepreneur should be good leader, as the person have capability to guide and handle all subordinates in a systematic manner. If a corporation employ people, leadership is a key of success. It is fundamental for administration to have proper knowledge of using different leadership approaches and take better decisions. In context of Munchies, it uses democratic leadership styles in order to accomplish business goals and objectives in a certain time period. The prime role of leaders is to inspire or encourage leaders for getting best out from them as well as boost up their productivity.
Communication skills – Another important skill is good communication skills which must be possess in staff and directors of the company. In corporate world, there is needed to write short mail to daily basis, but sometimes written words get misinterpreted. Thus, owners should know how to use right words and influence others to do a specific task or activity. Free flow of communication at workplace also helps employees in sharing various ideas with top management and arrive at better conclusion (Salamzadeh, 2015).
Problem solving – Business entrepreneurs should able to determine the better solution of specific problems or issues which occurred in at workplace on daily basis.
It is essential for management to provide healthy and competitive working environment to employees so as to gain high competitive edge in a certain time of span. Management should also have to provide
P5 Different promotional activities and channels
Promoting and marketing can be linked with one another as in order to sell the commodities it is necessary that company applies appropriate tools and technologies for the same. This enables organisation in attracting more and more customers so that they can gain maximum sales and profitability. In context with Munchies they are utilising all the resources that are available to them. In terms of promoting their activities they are using latest tools and technologies for example: Firm is advertising their restaurant through television, newspapers, magazines etc., it is helping them in reach to a large number of people so that they can gain maximum benefits. Apart from this, company is using various mediums like social media, online, websites and many more so as to give information related to the products to its customers. Therefore, some of the promotional activities that Munchies is using for attaining an effective results are mentioned below so as to understand in a better manner:
Personal selling: In this process, promotion is done by using effective communication tools so that company can interact with clients in an effective manner. This includes social media, online marketing, emails and many more. This will enable them in making their business more appropriately.
Social media: According to this current market scenario, various social networking sites are available through which company can use promote their activities in an effective manner. This is considered as an important tool as most of the people are active in social media and it is the best medium of sharing information with maximum number of customers.
Blogging and new articles: It is also an important activity of promotion which may leads in connecting with number of people at market place. Blog and articles are define at online platform which aid in connective with number of people at market place.
P6 Develop an appropriate promotional activities plan for both launch and pre-launch
It is important for the new venture is to design their promotional activities which provides the opportunity regarding attraction of large number of customers. This will have huge importance to spread awareness among the customers about their different offerings. It provides the opportunity is to build good relation with customers and gain their trust and loyalty. It provides the opportunity to build their good brand image in market. There are many important aspects which are need to oversee by the management of organisation regarding development of their pre-launch plans of new venture which are defined below:
Product analysis: It is important to conduct analysis of their products to attain important information regarding different features of their products. Munchies need to evaluate the profitability of product before investing amount. This will helps the management of organisation is to forecast about the growth of their products and success of venture.
Market analysis: Analysis of the market is important concept which includes determination of the marketing trends and the preferences and tastes of customers. It helps to bring changes in their offerings according to need of of their requirements. The impact of this research is ascertained upon their profitability and sales. The different aspects regarding which information is gathered includes size of market, existing competitors, target customers, quality of products etc. There are many external factors which has direct impact upon the business operations. It is the duty of management is consider the impact of all such factors upon business.
Financial analysis: It is important to ascertain the amount which is required to start new venture. This will includes the asses of the requirement of fund for the performance of different functions and running of the businesses activities smoothly. In this regard, management of Munchies need to formulate the budget for guidance of employees and accomplishment of desired objectives.
Activities which need to oversee at the time of launching
Web Presence: It is important for Munchies to make their own official website to connect with customers and provide their different offerings through online mode also.
Brand development: It is the process of developing their brand image in market to create unique identity in market. This will have direct impact upon their sales and profit as it helps in attraction and retention of customers for longer period of time.
Strategic positioning: At the time of starting new business it is important to understand about their positioning in market. It helps in formulation of further business plans.
P7 Produce an itemised monthly cash budget
The following cash budget states the working of start-up through the year.
P8 Legal form for the venture stating
It is important to assess about the legal structure of venture as it helps in planning of further requirements in more optimum manner. Selection of the most suitable form to start the venture is important as the many regulations are associated with them which are required to adhere by entrepreneur.
In the present report, most suitable form for the launching Munchies is partnership. This will includes the process of formulation of business by two or more individuals with the aim of earning large number of profits. The profit and loss of the business are shared in equal ratio and having the limited liability of all the partners.
It is important to start partnership as huge amount of capital is required which is easy to raise in this type of form of business. On the other hand, there are large number of risks are associated with Food industry like regular changing trends and consumer behaviour which results in failure of business. So, partnership provides flexibility to the organisation structure and risk taking ability which contributes in success of organisation in future.
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From the above mentioned report, it get concluded that while launching any business venture, it is essential for entrepreneurs to consider all necessary aspects so as to accomplish high competitive edge or market growth. The report states, two types of resources, i.e. tangible and intangible which are considered while introducing a new business venture. A business plan is based upon vision and mission statement of the company, it signifies that management have to conduct a market analysis in order to get relevant information about target and potential audiences. Apart from this, to promote a new business various channels, such as- advertising, public relations, sales promotions and direct marketing.
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