Introduction to Business - Assessment 2 Report

This report covers the understanding about the business, it lay out the business plan for the start up which will cover the business type, structure, macro and micro environment and their impact over business.

Your Name & student ID Introduction to Business – Assessment 2 Individual Report
Title Page
Introduction to Business
Assessment 2 – Individual Report
Start-up Business Type & Business Name
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
Table of Contents
Introduction...........................................................................................................................................3
Overview of the Report.....................................................................................................................3
Background of the Company.............................................................................................................3
Main Body (Business Plan).....................................................................................................................4
Different Types of Businesses............................................................................................................4
Your Business Structure.....................................................................................................................4
Macro Environment...........................................................................................................................4
Micro Environment............................................................................................................................4
Impacts on your Business..................................................................................................................4
Conclusion.............................................................................................................................................5
Overall argument summary...............................................................................................................5
Recommendations.............................................................................................................................5
References List......................................................................................................................................6
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
Introduction
Overview of the Report
Business refers as the process through which the one can make their earning by delivering
certain products and services in the market. It simply an enterprise who are engaged in commercial
or in other industrial activities. It simply of different type which one can pursue depends on their
business skills and financial capacity (Khan and Majava, 2021). Everything is baked a bakery who
sells the various baked product and reliable services to their customer. This report will cover the
understanding about the business, it lay out the business plan for the start up which will cover the
business type, structure, macro and micro environment and their impact over business.
Background of the Company
“Everything is baked” a new start up which is located in England, UK. Firm has around 20 member
staff team, who are efficient and passionate about their work. Firm offers a good range of bakery
products, in which they use their farms’ dairy product. They produce the product which do not affect
the health of people, for that they also offer the low calories goods.
Main Body (Business Plan)
Different Types of Businesses
Generally there are four type of business which is sole proprietorship, partnership, Limited
Liability Company and corporation. It is depend on the person where to star or on their capital
investment.
Sole proprietorship: It is the common type of business which the one follow as it do not required
the paperwork to develop the legal entities. In which the enterprise is run by the one person that
means single owner pays taxes and bills from the revenue which is generated from the business. This
business type offers the lots of benefits; it is simplest and least expensive business structure.
Partnership: In this there is more than one owner, in which the both parties share the ownership
and responsibilities for managing their business. It further divided into the joint venture, limited
time partnership type. It is better to have two parties as it gets easier to make decision as well as
initial costs are low (Tavera Romero and et.al 2020). Another advantage of this business type is
burden and pressure will be share so it produces the optimum result. It’s better to begin with this
business, as it is efficient in building a capital for business.
Joint venture: in this two parties combined their business and form a single entity, decisions
drives mutually from both owner, and also they shares the associated risk equally to maintain their
business.
Limited liability Company: It is the business structure for the private limited companies; it allows
the businesses to take some benefit of sole trader while limiting the legal liabilities. It also refers as
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
the hybrid entity which joins the corporation attributes with the partnerships. Its benefit is that it is
active ownership, which enables the business parties to exert their major control and increase their
involvement in business process. It also allows the business member to select their tax mode
whether to pay as corporation, it gives the higher flexibility to large volume business.
Corporation: It is separate legal body which is developed by the shareholders, incorporating a
business secures the holder to from being liable for all the debts and disputes of the company. This
business type consists of lots of complexity as compared to other business (Yablonsky, 2018).
Governance managed the business by distributing the ownership between the shareholders so that
desired goals can be achieved.
As per the given analysis “Everything is baked” follows the sole proprietorship business, as
they are new in their business for partnership they must need to analyse the market first. Therefore
initially it is best option for their business.
Your Business Structure
For the everything is baked bakery they have the sole trader business structure, they own
their business and run by themselves only. Reason for sustaining this structure due to its various
advantages which are as follows:
Easy to develop: This structure do not required any kind of registration, therefore they can run
business by their own name, it is exempting from certain legal licensing as to sell the product online.
Therefore bakery can also proceed to run their business with its simplicity.
Privacy: Since it is unregistered business, therefore there is no database maintained or track by the
government; hence this business is more private than other business structure. Also through which
the bakery can proceed to singly maintain their business, as there is no influence from other to make
decision, they solely handle their business activities.
Macro Environment
Pestle analysis a strategic management tool which needs to examine the external
environment of the business. It involves the certain factors which have impact over organisational
business.
Political: factor involves the government policies and standards which have major intervention in
the economy, which can affect one’s business. it involves the taxes, tariffs, bureaucracy, therefore
for the everything is baked, they follow the sole trader structure which means no such government
implication, but still they have to pay the taxes on time otherwise it will hinders their business to
develop revenues.
Economical: It accounts the different economical aspects, which include interest and inflation rate,
unemployment rate. Therefore it is suggested to bakery to invest when there is low interest rate in
market otherwise it will impact their financial capability (Laukkanen and Tura, 2020).
Social: It accounts the demographic trend, cultural aspect, and career attitude and health
consciousness factors as it helps in determining the consumer behaviour in the market. Therefore, it
is important for the bakery to prepare the product which offers the nutritional value otherwise
people will not buy their product which adversely impacts their business.
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
Technological: It is connected with the innovation, which leads new formation of trends that need
to be followed. It gives the huge impact as customer in the market are more demanding and usually
prefers the fast delivery of product which is difficult for traditional method. Everything is baked
bakery also proceed with implementing new technology, so that they can easily retrieve or access
the data for delivering fast services to customer.
Environmental: Climate changes, pollution, natural calamities these ecological factors have major
impact over the business. Its impact can be seen as in increasing price over the product, as to go
with environmental friendly product it requires the additional investment which affects the finance
resource of business. Therefore baked bakery required to invest carefully with proper budget plan
to buy raw materials or to ensure that their products meet sustainability and not cause
environmental impact.
Legal: Industry regulation, worker laws, intellectual characteristics, it suggest what businesses can
do. If the legal process do not match in such organisation has to shut down their business forever.
Therefore baked bakery also needs to ensure that their firm is meeting all food standards otherwise
they will have to face vulnerable situation.
Micro Environment
Porter five forces, powerful tool to analyse the competition is the market, through which the
organisation can easily understand the forces which are affecting their business.
Buying behaviour of consumer: Consumer power has major impact over the business; ultimately
they are the one who decides the success factor. It is essential for the businesses to know who their
buyers are, what their big products which they usually purchased it will help to retain them.
Therefore to reduce the buyer power, baked bakery can proceed to develop large customer base
(Cyron and Zoellick, 2018).
Buying power of supplier: It is defined as how many suppliers do the company have, usually their
demands are higher and have major impact. For the bakery they can proceed to contact with more
suppliers, so that they can easily switch vendors for cheaper price.
New entry threat: Business position can affected when there is new entry in market, if certain
market have the little entry fee and competition than in such rivalries can take benefit and enter the
market to acquire the position of existing business (Espinoza and et.al 2019). This threat for the
baked bakery is moderate as they itself a new business in the market, but they need to strong their
position so their business d not impact whenever there is new entry.
Substitution threat: It refer as what if the other firm also offer the same product at cheapest price,
than it is the human tendency to switch to economical product. If the substitution have more power
than it badly affects the business. for the baked bakery it is essential to deliver the unique product
that only belongs to them or to proceed with pricing strategy so that consumer will buy their
product.
Competitive rivalry: it describes the strength of company’s competitor to cut down their business.
When there is intense competition among the industry, which means businesses follows the
aggressive marketing to attract the customer. For the baked bakery as they are new therefore this
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
factor is high for them, they need to completely research their market to analyse what other firm are
selling and response of the customer. So it will give idea to design their product.
Impacts on your Business
Above Pestle and Porter five forces analysis it defines the major impacts of competition,
consumer or pestle factor over the business. Other impacts which the everything baked bakery can
face are-
Financial: financial resource creates the major impact, it refer as the company’s investing capacity.
If these are not maintained then firm will not be able to sustain in market. Therefore it is important
for baked bakery to follow proper budget so that they can easily track their transaction and
investment.
Sustainability: Consumer in the market demands for the sustainable product, for such baked bakery
can proceed to connect with community or to contact with local farmers so that they can able to
achieve sustainable goals. Or to reduce plastic from their product packaging so that sustainability
can meet (Bindra Parameswar and Dhir, 2019).
Digital marketing: Digital marketing is the fast growing marketing process, baked bakery also
required to switch their marketing to digital platform from which they can easily access to good
range of customers.
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
Conclusion
From the above report it is concluded that running a business involves several factors and
structure which need to be followed. This report illustrated the introduction to business, with
organisational overview. It further carries out the different business type which covers the sole
traders, partnership and other business. it also lays out the business structure with the Pestle and
porter five force model to analyse the micro and macro impact. It lastly involves the impact on
business.
Recommendations
Limitation can be seen in financial resources, so it is important to proceed with budget to
reduce its impact. Company can proceed to do marketing mix for their business so that they will got
to know about the market dynamics. Baked bakery are new as for marketing they can proceed to
use the digital platform, it do not cost too much and helps to reach out large audience. They can
also proceed with partnership structure, so that it can be beneficial to make effective decision for
growing the business.
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Your Name & student ID Introduction to Business – Assessment 2 Individual Report
References List
Bindra, S., Parameswar, N. and Dhir, S., 2019. Strategic management: The evolution of the
field. Strategic Change. 28(6). pp.469-478.
Cyron, T. and Zoellick, J.C., 2018. Business development in post-growth economies:
Challenging assumptions in the existing business growth literature. mrev management
revue. 29(3). pp.206-229.
Espinoza, J.M. and et.al 2019. Extending PESTEL technique to neutrosophic environment for
decisions making in business management. Infinite Study.
Khan, I.S. and Majava, J., 2021. Stakeholders interdependencies and their role in sustainable
business model innovation. arXiv preprint arXiv:2103.16281.
Laukkanen, M. and Tura, N., 2020. The potential of sharing economy business models for
sustainable value creation. Journal of Cleaner production. 253. p.120004.
Tavera Romero, C.A. and et.al 2021. Business intelligence: business evolution after industry
4.0. Sustainability. 13(18). p.10026.
Yablonsky, S., 2018. A multidimensional framework for digital platform innovation and
management: from business to technological platforms. Systems Research and
Behavioral Science. 35(4). pp.485-501.
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