Starting a Construction Business

The assignment examines the essential elements for launching a thriving construction company. It delves into the importance of innovative business ideas and effective marketing strategies to attract customers. Furthermore, it utilizes PESTLE analysis to assess the influence of external factors on the business. The report also emphasizes the significance of budgeting for optimal financial resource allocation.

BUSINESS ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
PART A.......................................................................................................................................1
PART B.......................................................................................................................................2
TASK 2............................................................................................................................................3
PESTLE Analysis........................................................................................................................3
TASK 3............................................................................................................................................5
Part A..........................................................................................................................................5
Launching of Event.....................................................................................................................5
Part B...........................................................................................................................................5
Budget.........................................................................................................................................5
TASK 4............................................................................................................................................6
Different concepts of marketing..................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A business idea can help a person in solving various needs of the society, it can
also become the prime source of earning huge profit (Chen, 2013). This is based on
''Quality construction''. They are offering solution relating to designing and construction
of the a building or any of its part. This assignment will explain the business idea along
with the potential competitors of the organisation. Analysis like PESTLE will also
become part of this report, complete explain of an event launching will be done in this
file. At the ned, this project will discuss about various concepts of marketing.
TASK 1
PART A
The opportunities in commercial activities is continuously increasing because the
number of jobs is going down and young generation is focusing on staring their
business. Their is still a huge scope in construction sector. The business idea of
''Quality construction'' is to offer fast and best service to the clients. They use latest
techniques of construction which allow them to make better quality of building or any
part of building without involving huge cost. This organisation will take online orders and
they will also operate through their physical office (Evers, Andersson and Hannibal,
2012). This business idea is good because most of the people want to get mesmerising
interior and quality of construction at an affordable rate. This enterprise will offer them
creative and latest designing of interior.
This idea can meet the needs of buyers, clients seek two things at the time of
construction good interior and branded material which is used in construction. This
demand can easily be met by ''Quality construction'' because they have capacity to offer
innovative design and they can use branded building material because their overall cost
of business can be brought down by using latest techniques of construction. Some
construction company also offer same services which this organisation will offer but they
charge huge sum for their services.
Competitors Why they are competitors
Bailey construct This organisation is also using latest
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techniques and their profitability ratio is
good.
Pacific Building This company is known for reliable
services, focus on earning trust of clients
and provide them services at affordable
price.
Arden construction They are known for their innovative interior
designing and ability to make big projects.
They also have good market reach.
PART B
Individuals makes a start up for achieving something. Money is one of the
primary aim but there are varied objectives that a person wants to accomplish. Four
objectives for 'Quality constructions' company is as follows:
 To offer the customers with the best of architectural designs in the market.
 To provide higher quality construction services to the consumers.
 To build large consumer base in the coming years.
 To offer services at affordable rates.
Justification
First objective: In today's world everybody wants a building that has an unique
design and supports their personal requirements (Ebert and et. al., 2014). This is not
provided by most of the company in spite of being in higher demands.
Second objective: Since the quality that is offered by most of the service
providers are of lower quality hence this company is set up with the objective of giving
quality construction services. Lower quality construction results in requirement of
renovation from time to time which can be loss to the consumers.
Third objective: Since growth is important for the company's related
stakeholders which cannot be possible without having a larger number of consumer
base. If this objective is fulfilled then large revenue can be made. This is need of the
company.
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Fourth objective: Since the construction related services are available at higher
rates in the market, so using the best of technology can help in reducing the overall cost
of construction. It will help in attracting consumers towards company's business.
Form of Ownership
There are various options available for this organisation out of which partnership
has been selected. It is best for the any entrepreneurial opportunity and it is helpful for
making the stable start-up (Hair, 2015). It is essential because in the primary stage
'Quality Construction' lacks in the amount of resources it has. Two examples in this
regards can be that firstly the cost of construction materials are higher and hence they
will need of support of the partners in their purchasing activity and secondly that this
company is fairly new hence requires some mutual support for its operations like in the
research and development as well as in taking decisions. Both the reasons are well
enough suitable for choosing this form of ownership.
TASK 2
PESTLE Analysis
The impact of external factors can be analysed by doing PESTLE analysis.
Below are some factors can affect performance of the enterprise.
Political
 Brexit – This political incident is expect to make a negative impact on the growth
of construction sector (Breuer, 2013). A low market demand can negatively
affect the business ''Quality construction''. Brexit is going to impact complete
European and it is significant for UK based companies to analyse its impact in
advance. Political instability – The government is UK is has changed and it may again
change in upcoming time. Change is government means change in commercial
policies. The plans made by Quality construction may not work if there is major
change in policies. It may negative influence their growth.
Economical
 Bank loan – Due to weak economic growth, the banks in UK are hesitation to
provide loan to new businesses. This factor can create hurdle in their business
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operations and they may face the issues relating to finding right source of
finance. Inflation rate – Inflation rate in UK is fluctuating and most of the economist are
expecting that inflation will continuously increase in UK. This economic factor is
going to affect them in negative way.
Social
 Education – Customer are getting aware about new designing which can be
done in their houses. They are ready to pay more sum for getting good
infrastructure (Machek and Machek, 2013). This organisation can charge more
sum by fulfilling exact demand of the customer. Lifestyle – Instead of living in a home, people want to live in house which has
great interior. They know that good interior can be made by paying decent
amount. This change in trend will be beneficial for Quality construction in
upcoming time.
Technological
 Latest technology – The technology which this company using can be updated
without investing huge sum. This factor may help them in earning competitive
benefit on their competitors. Online business – The trend of online promotion of business in increasing and
this company has already started using this marketing tool. This factor can
positivity affect them.
Legal
 Change in rules – Major modification in some rules relating to construction may
have unfavourable impact on this business organisation. Employment laws – Government have made some strict rules, this make create
hurdles in recruiting best man for a job. It may negatively influence revenue of
organisation.
Environmental
 Construction waste – As CSR, this organisation has to make sure that they do
not pollute the environment by increasing construction wastage. If they will do
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more wastage then it will increase their cost of business and negatively affect
their goodwill.
 Weather – Construction of building is very difficult in rainy season. Unfavourable
weather can negatively affect quality and timing of construction. But if they will
get favourable environment then they can deliver better results.
TASK 3
Part A
Launching of Event
Since its first customer is university and hence it has decided to launch its
business through an event. This Event will help company in making connection with the
consumers. This is also done for becoming a option in the market to the people who
wants quality construction. The place that this company has chosen for the launch of
the company is an University lawn. Best option for launching and creating a buzz in the
market is through Celebrity opening (How to Start a Construction Company, 2017).
William George Armstrong has been called for the event. He was the 22nd president of
Institution of Civil Engineers. He is known for his architectural knowledge and design. A
press conference has been called so that media briefing can be done and event will
have space in the next day newspapers. The day selected for it will be Friday as it is the
Weekend so students can easily attend the function. This function will be the primary
step that is taken for setting up the firm and later on achieving all the objectives. In this
event a small presentation will be shown about what a company future goals are, then
there will be guest lecture by William George Armstrong who will enlighten about the
whole process.
Part B
Budget
Particulars
Event
launch
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Elements for
event Cost £
Venue 1500
Catering 8500
Advertising 1500
Decoration 100
Transportation 400
Anchor 100
Payment to
Guest 5000
Equipment 1500
Total 18600
TASK 4
Different concepts of marketing
Marketing is the process of understanding the demands of the consumers and
then promoting the best that a company has with its products (Wilson, 2014). This helps
in reaching to maximum customer satisfaction. There are various process in this regard:
Marketing objective: SMART objectives needs to set by the 'Quality Construction' so
as to assure that it can be achieved. Two SMART objective that this firm has opted for
itself are first making popularity in the local market by providing quality services and
second is to reduce the confusions in the minds of consumers related to the firms
operational mechanism. The time that is allocated for this purpose is 2 months.
Measurement of its success will be done through number of sightings on the firm's
website as well as the App it has designed for itself. Its target is set to enhance the
visitors by around 20%. Second objective will be accomplished by resolving customer
related queries.
Target market: This company has set its target market as the institutions that need
renovation Like Universities as well as the people that requires infrastructure at
affordable prices like middle class people.
Marketing Mix
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Element Description Justification
Product Company is offering best
quality renovation and new
design of infrastructure they
need (Scarborough, 2011).
Research shows that
people want innovative
design in their
infrastructure.
Place It is available in all over
London. People can apply
for it using online medium at
our sites or can come to the
office at 223 Baker Street.
Since online mediums is
easier for the people to find
their solution hence it has
been chosen.
Price The price differs from
design to design but most of
them are under affordable
ranges.
Since company aims to
provides services at lower
rates hence it is essential to
set such type of pricing.
Promotion Online promotions like
proximity marketing as well
as promotions using sign
boards.
It is cost effective to do
most of the promotion using
online medium and
proximity marketing will help
in availing services that are
in local areas (Young and
Dhanda, 2012).
Physical evidence It is providing its consumers
with the services as it has
promised to its clients.
Since it is necessary for
creating a name in the
market.
Process Most of the process are
done taking use of most
advanced technology.
It is necessary for providing
services at lower cost.
People It has employed youngsters
at lower levels as well as
It is necessary for providing
new jobs as well as
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experienced person on the
top of the organisational
hierarchy (Shaikh and
Fegade, 2012).
ensuring that quality
services is provided by the
firms.
Strategy: The strategy that will be used is product development (How to Start a
Construction Company, 2017). New innovative ideas of design will be produced through
this which will help in attracting larger number of consumers towards the firm (Sherry
and Canon, 2014).
CONCLUSION
From the above report, it can be concluded that good business idea is essential
for surviving in business environment for long time. Marketing is a significant function, it
play crucial role in success of an organisation. In order to analyse the influence of
external factors, PESTLE analysis is done. Making budget can help in better utilisation
of financial resources.
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REFERENCES
Books and Journals
Breuer, H., 2013. Lean venturing: Learning to create new business through exploration,
elaboration, evaluation, experimentation, and evolution. International Journal of
Innovation Management, 17(03), p.1340013.
Chen, L.F., 2013. Denis Collins: Essentials of Business Ethics—Creating an
Organization of High Integrity and Superior Performance. Journal of Business
Ethics, 113(3), pp.557-559.
Ebert, R.J. and et. al., 2014. Business essentials. Pearson Education Canada.
Evers, N., Andersson, S. and Hannibal, M., 2012. Stakeholders and marketing
capabilities in international new ventures: evidence from Ireland, Sweden and
Denmark. Journal of International Marketing, 20(4), pp.46-71.
Hair, J.F., 2015. Essentials of business research methods. ME Sharpe.
Hair, J.F., Money, A.H., Samouel, P. and Page, J.M., 2011. Essentials of business
research methods. New York: ME Sharpe. Inc. New York.
Machek, O. and Machek, M., 2013. Essentials of business economics: exercises.
Oeconomica.
Scarborough, N.M., 2011. Essentials of entrepreneurship and small business
management. Upper Saddle River.
Shaikh, V.F.M.S. and Fegade, V., 2012. Modeling essentials of content management
system (cms) for web-based mis application. International Journal of
Engineering and Technology, 2(3), pp.379-383.
Sherry, C.S. and Canon, C.L., 2014. An Introduction to “Business Essentials”. Journal of
the American College of Radiology, 11(2), pp.110-111.
Wilson, J., 2014. Essentials of business research: A guide to doing your research
project. Sage.
Young, S.T. and Dhanda, K.K., 2012. Sustainability: Essentials for business. Sage
Publications.
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Online
How to Start a Construction Company, 2017. [Online]. Available
through<https://articles.bplans.com/start-construction-company/>.
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