Importance of Business Plan

This assignment emphasizes the importance of a business plan in implementing company activities successfully. It highlights how a business plan helps owners make better strategies and policies for effective control of company operations, considering macro-environment factors that affect business performance.

Business Essential

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
PART A..................................................................................................................................1
PART B..................................................................................................................................2
TASK 2............................................................................................................................................1
TASK 3............................................................................................................................................3
PART A..................................................................................................................................3
Part B......................................................................................................................................3
TASK 4 ...........................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
.........................................................................................................................................................7

INTRODUCTION
Business is a term of commercial activity which is complete to fulfil persons wants and
needs. It is define as an important parts of each and every enterprise which support them to
identify accurate demand of the buyers from the business entity. For achievement of maximum
profit and revenue, firm can implement different new techniques and tools to acquire valuable
output (Ragas and Culp, 2014). This report is based on organising new company with is formed
with large variety of products. This project determined about the business description, PESTLE
Analysis, investment which is made on entertainment and food. It is also described marketing
objectives and strategy for each and every target market.
TASK 1
PART A
In modern world, business is observed that, different persons are more foody. There are
understanding interest plenty in tasting innovative changes in food products at various restaurant
and stalls.
Description of the business entity
Food company is very much innovative and effective industry which is beneficial for
business and its buyers. Food Van is an organisation that required in order to be implemented, it
having more variety of foods. The taste and quality are comparatively which is more tasty &
attractive as comparison to another business. They not needed more amount of fund for establish
outlets and stalls. In this all modifications that are acquiring maximum return that will be very
broad if buyers are more attracted with food quality.
Business name: “TANCU SOLE TRADER”, it is a small scale business which is launching as
Van. It is making various kinds of food products fro the buyers effectively.
Location: Main location of the mentioned company is outsider mall, universities, crowded area
and tourist places etc. It is complete due to capturing different buyers and market share towards
their entity. High street and online are suitable and valuable option for food industry (Wirtz,
2012).
Selection reason: Main reason of selection this business is to earning higher profitability and
productivity (Target Marketing, 2017). Food industry is very much beneficial organisation
because, in the modern are large number of the persons are foody. There are some features which
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are available in these business such as self-cooking service which build them in various another
street stalls.
Competitors :
Name of the competitors Food types Reason
Tutto Food company Goodies from pelecypod
to excited mushrooms.
It is fundamentally, accompanying with
parella. This food van innovator have
broad division out of cooked
sandwiches.
Balkan Burgers Particular roster to soak
up with all the foodstuff,
lidded with onions such
as Tomato and cabbage
Balkan Burger is quickest food truck in
order to meet with clients needs and
wants in a systematic manner.
PART B
Each and every organisation connected with food industry in needed in order to perform
as per their plan. Due to this, they can achieve their long term objectives and aims in a specific
time period (Follett, 2013). These will support to rule and regulation out of action which is never
contribute in achieving set objectives. Mentioned business required to set several goals which
can assist them in regrades to attain effective results. There are also several objectives and aims
which are determined under this:
 In order to make optimising objectives and aims which is required in maintain better
outputs. For achievement of financial security and safety in essential & effective manner. In respect to providing unique and healthy products to the customers in an effective or
efficient manner which is beneficial for the business success and growth (Wheelen and
Hunger, 2017).
Types of ownership:
In regards to compare our business with various terms of ownership like partner,
government and sole trader etc. All are play essential role in new company development and
success. For attainment of large profit, firm is classified in different parties which is significant
for company.
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TASK 2
Pestle analysis
TANCU sole trader company has started new business which provides the different kind
of food products. It is the duty of the management of company has to consider all the factors
which affects the working of company (Hair, 2015). There are many factors which persist in
macro-environment like political, economical, social, technological, legal and environmental. All
these factors are call external factor on which the management of company has to no control. To
get success in market cited company has to understand about the effects of these factors and
make the strategies to overcome from them (Wilson, 2014). This helps the company to make
their business more effective and sustainable growth for longer period of time. PESTLE analysis
and their effects to the operation of company is described below:
Political factor: This includes about the factors which are related to the stability of
government, tax policies and price regulation policies. It is important for the owner of TANCU
to consider all these factors and their effects.
 Political stability: This is about the stability of the government of country in which they
started their business activities.
 Tax policies: This includes about the policies which are framed by the government
regarding taxation of the income of business of sole trader.
 Price regulation: It is the duty of the owner is to consider the price regulation policies
which are framed by government while deciding their price, otherwise it affects the
working.
It is very essential that all these elements must be consider by TANCU as variation in
these elements will affect the business.
Economical factor: This includes about current economic condition in country like
income of people, inflation and cash flow of income etc.
 Income of people: If the income of people is good in country then it increases the
demand about their products (Prewitt and Weil, 2014).
 Inflation: Inflation in country provides the more chance to company to grow their
business. Increment in rate of inflation will affect the TANCU business as this will
results in decrease purchasing power of customers.
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Social factors: This includes about the factors which affect the development of society.
Other factors which affect the business are described below:
 Consumer behaviour: If the consumers are not much like the fast food then it affects the
business of company.
 Demographic factor: This includes about age , gender etc. which have some impact on
business.
Variation in these factors affect the business activities and profits so all these must be
consider by TANCU.
Technological factors: This includes about use of advance technology and techniques
for business operations. This have some impact on business (Romano, 2013).
 Innovation: This includes about use of innovation in taste of item which attracts the
customers.
 Online services: If company uses online technology then it helps to increase sales
through online orders. This can be choose TANCU as this will provide an opportunity to
serve more number of customers which will enhance profits of business.
Legal: This includes about the factors such as illegal activities of costumers which
affects the health of persons.
 Customer law: This includes about fulfil all the regulation regarding protection of health
of customers and not using unethical manners.
Various legal factor affect the activities of business it must be consider by TANCU.
Environmental factors: This includes about the safety of the environment from the
activities of company. The owner have the responsibility to have proper system of waste disposal
and water conservation.
 Environmental regulations: It is the duty of owner to fulfil all the regulations of
environmental legislation (Urner, 2016). This helps them to increase their image between
the society.
 Waste disposal: The owner of company has the responsibility to have adequate system
for the disposable of the waste which is coming out of the operations of company.
Various factors related with environment must be consider by TANCU in order to
produce and offer environment friendly products and to attract more number of customers.
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TASK 3
PART A
(a) Investment to be made on entertainment and food
It is a very essential and attractive root of innovation and modernization in which
company is served their food products with entertainment. In this buyer more delight in order to
come as well as enjoy their day with comfortable way (Zakrajsek, 2013). According to the above
mentioned discussion, business is making different food variety in regrades to attract large
number of the clients with maximum interest amount. It is known as big advantages and benefits
for the business entity to achieve superior attention.
(b) If opening is complete by inviting a celebrity
Such kind of company is opened by different invitation of celebrity. They mainly
operated at little level which identify less capital in order to invest more capital for establishing
innovative business entity (Cross, 2013). After understanding entire facts which is never useful
and valuable in decision making process to invite different celebrity for implementing and
launching new business .
Part B
Budget
Particular Current Year Forecasted
Revenue
Sales 100*50 5000 6000
VIP passes 100*20 2000 2500
Total sale 7000 8500
Less: Expense
Celebrity cost 100*5 500 400
Discounted food 1500 2000
Lighting 600 800
Promotional cost 200 400
Other services 100 150
Total expenses 2900 3750
Total Net profit 4100 4750
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From above mentioned data and information is made on the basis of assumption about the
business activities during the producing innovative products to the customers in a systematic
manner. It has be analysis that net revenue from 100 person is gathered in actual years is approx
7000. in this forecasted amount is about 8500. different expanses and revenues which are
required to be reduced from net profits to acquire current cost and value of net profit (Grant and
Taylor, 2014).
TASK 4
Marketing objective is known as final objective and target which a company set before
execute marketing activities of business (Laudon and Laudon, 2011). It provide guidance and
support activities of business. These are formulate by marketing manager during formulation of
marketing plan for business activities. In context with food industry, it is very essential to make
food products as per the demand and requirements of final customers (Engemann and
Henderson, 2011). For attract more number of customers and to make them satisfy with
company's offering, it is very essential for TANCU to offer quality food products to its
customers, effective services at lower prices and value for the money they pay.
Target market
This is refers to that group of customers for which firm produce and offer them products
and services. In case of TANCU, firm can target young individuals who want to purchase food
products which are environmental friendly (Anderson and et. al., 2014). Firm can increase the
number of its profits by offer quality food products and effective services to its target market
(Cobanoglu and et. al., 2011). For this, company can use disposable packet as this will not harm
the environment.
Marketing strategies
For target youth people it is very essential for TANCU firm to use right and effective
strategy for marketing (Robyt, 2012). In this case, company can use print media, television and
online marketing. Today large number of youth use various platforms of social marketing so this
will benefits the TANCU firm a lot.
Factor Description Justification
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Product This refers to the final offering
which TANCU have to offer its
customers. Quality, design, features
and services of product are all
consider under this.
Firm offer this in order to attract more
number of customers. It is very
essential that product of firm should be
unique and more featured so enterprise
can generate more amount of profits.
Price This refers to the final amount
which a customer pay to get food
item.
Main reason why firm is offering its
food products at low prices is to attract
more number of customers.
Place It is very essential that final
offering of firm must be available
near all stores of customers so they
can easily buy the same.
Effective option of firm at various
areas ensure maximum sale of
company's product.
Promotion It is very essential for enterprise to
formulate a better promotional
strategy to attract more number of
customers.
This involve deliver relevant
information about food products and
features to target market.
CONCLUSION
It has been concluded from the above report that, business plan is important to implement
the activities of company successfully. This helps the owner of company to make better
strategies and policies for effective control the operations of company. It is the responsibility of
the owner of company has to consider the macro-environment factors which affects the business
of company. This helps them to make the polices to overcome from these effects and improves
their performance.
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REFERENCES
Books and Journals:
Hair, J.F., 2015. Essentials of business research methods. ME Sharpe.
Wilson, J., 2014. Essentials of business research: A guide to doing your research project. Sage.
Laudon, K.C. and Laudon, J.P., 2011. Essentials of management information systems. Upper
Saddle River: Pearson.
Anderson, D.R and et. al., 2014. Essentials of statistics for business and economics. Cengage
Learning.
Robyt, J.F., 2012. Essentials of carbohydrate chemistry. Springer Science & Business Media.
Cobanoglu, C and et. al., 2011. The impact of technology amenities on hotel guest overall
satisfaction. Journal of Quality Assurance in Hospitality & Tourism. 12(4). pp.272-288.
Engemann, K.J. and Henderson, D.M., 2011. Business Continuity and Risk Management:
Essentials of Organizational Resilience. Rothstein Publishing.
Ragas, M. and Culp, E., 2014. Business Essentials for Strategic Communicators: Creating
Shared Value for the Organization and Its Stakeholders. Springer.
Wirtz, J., 2012. Essentials of services marketing. FT Press.
Follett, M.P., 2013. Freedom and co-ordination (RLE: Organizations): lectures in business
organization (Vol. 15). Routledge.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. Pearson.
Prewitt, J.E. and Weil, R., 2014. Organizational opportunities endemic in crisis
leadership.Journal of Management Policy and Practice.15(2). p.72.
Romano, A., 2013. Investigative Essentials for Journalists in Multicultural and Diverse
Communities. In Journalism Research and Investigation in a Digital World (pp. 263-
272). Oxford University Press.
Urner, J., 2016. Development Of Intersensory Perception Comparative
Perspectives.Development.1. p.2.
Zakrajsek, T., 2013. Essentials Skills in Building and Sustaining a Faculty Development Center:
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Cross, S.E., 2013, June. A model to guide organizational adaptation. In Engineering, Technology
and Innovation (ICE) & IEEE International Technology Management Conference, 2013
International Conference on(pp. 1-11). IEEE.
Grant, A.D and Taylor, A., 2014. Communication essentials for female executives to develop
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Business Horizons. 57(1). pp.73-83.
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Target Marketing. 2017.[Online]. Available through: <https://www.thebalance.com/target-
marketing-2948355>.
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