Business Report Assignment on Currency Consulting Firm

Running Head: Business Project Proposal
Business Project Proposal
Currency Consulting Company

Business Project Proposal 1
Executive Summary
Formation of new businesses is very important to every economy across the world. They help in
the growth of industry and provide a platform for innovation to foster. In this era of
Globalization, foreign trade is gaining ground. This has led to increasing fluctuations in the
currency market. The movement of GDP against the USD has been catastrophic and has been
deeply impacting exporters and importers across the nation.
This report is introducing a new business of a currency consulting firm. The idea is to make
clients aware of the movements in the currency market and help them to hedge their currency to
avoid risks and increase profits. The details of the target market, business models, competition
and industry analysis has been elaborated in the report. Formation of a business is a complicated
task and requires attention to minute details. We have attempted through this report to throw
light on those intricacies of the new business.

Business Project Proposal 2
Table of Contents
Executive Summary.........................................................................................................................1
Chapter 1: Introduction....................................................................................................................5
Rationale of the business opportunity..........................................................................................5
Scenario Chosen...........................................................................................................................5
The Mission..................................................................................................................................6
The Vision....................................................................................................................................6
The Aim.......................................................................................................................................6
The Objectives.............................................................................................................................7
Structure of the business..............................................................................................................7
Chapter 2: The Business Concept....................................................................................................8
Service Description......................................................................................................................8
1. Daily FX Advisory............................................................................................................8
2. Live screen........................................................................................................................8
3. Customized hedging strategy............................................................................................8
4. Portfolio management.......................................................................................................9
5. Research reports................................................................................................................9
Target Market...............................................................................................................................9
Positioning Strategy...................................................................................................................10
Value Added..............................................................................................................................10

Business Project Proposal 3
Who is involved.........................................................................................................................11
Window of Opportunity.............................................................................................................12
Chapter summary.......................................................................................................................12
Chapter 3: Literature Review.........................................................................................................13
Industry Feasibility Analysis.....................................................................................................13
Chapter Summary......................................................................................................................15
Chapter 4: Feasibility/ Methodology.............................................................................................17
Market Research........................................................................................................................17
Market Analysis.........................................................................................................................18
UK Consulting market............................................................................................................18
Size of the target market.........................................................................................................18
Major Competitors.................................................................................................................19
Product/Service Feasibility........................................................................................................20
Organizational Feasibility..........................................................................................................21
Organization Structure...........................................................................................................21
Organizational Culture...........................................................................................................22
Financial Feasibility...................................................................................................................24
Technical Feasibility..................................................................................................................24
Chapter Summary......................................................................................................................25
Chapter 5: Analysis of the Business Model...................................................................................27

Business Project Proposal 4
Strategic Analysis......................................................................................................................27
PEST.......................................................................................................................................27
SWOT.....................................................................................................................................27
Competitive Advantage..............................................................................................................28
Selection of Strategies................................................................................................................29
Business Model..........................................................................................................................32
Business Model Canvas.............................................................................................................33
Chapter Summary......................................................................................................................34
Chapter 6: Evaluation of the Business Plan...................................................................................35
Overall assessment of business plan..........................................................................................35
Business plan schedule...............................................................................................................35
Business Viability......................................................................................................................38
References:....................................................................................................................................40

Business Project Proposal 5
Chapter 1: Introduction
The entire procedure of launching a new business is referred to as entrepreneurship (Schaper,
2014). Starting a new business is accompanied by various challenges along the road. It requires
immense research before starting the business. A Clear understanding of target market, product
positioning, competitors, sources of finance, profit analysis and growth opportunities etc. is
imperative.
Entrepreneurship is an important aspect of any economy because it provides a platform for
innovative businesses to flourish eventually leading do the growth of an economy (Chell, 2014).
This report throws light on a new business ‘Currency consulting’. The business involves
tracking, critically analyzing and forecasting the movements of the currency markets and
providing consultancy about the same to concerned customers.
Rationale of the business opportunity
GBP is one of the G7 (group of seven) currencies which dominate the world. As we know, the
value of our currency GBP (Great Britain Pound) fluctuates against the USD (United States
Dollar) on a daily basis (Kenourgios, 2017). These currency movements do not directly impact
individuals on a day to day basis but there are lot of business which get directly impacted by the
movements in the currency markets. They predominantly include export and import businesses
(BBC News, 2017).
Scenario Chosen
In the current era of globalization, enough light has been thrown on the world being flat. This
implies that every country is connected to every country. Transfer of labor, goods or services
from one part of the world to another is an everyday occurrence (Hong, 2014). Hence, emerges
the need and the frequency of import and export transactions of the country. This process is
known as Trade of goods and services. These trade transactions take place in foreign currencies
and hence a detailed knowledge of currency movements becomes critical for efficient trade.

Business Project Proposal 6
The Mission
Over the last one year, GBP has touched a low of 1.2023 and a high of 1.3589 against USD (XE,
2017). There are various factors that affect the movement in the currency on a daily basis
(Boateng, 2014). Export and import businesses cannot solely analyze and forecast these
movements and hence they end up facing immense risk with respect to currency fluctuations.
Unlike local businesses, export and import businesses transact in foreign currency as a mode of
payment to and from their buyers and suppliers.
Mission of this report is to analyze the market by conducting a primary as well as secondary
research, understanding the need and preparing a business model of a consultancy specializing in
currency fluctuations affecting trade.
The mission of the firm involves critically analyzing the currency markets, understanding the
factors involved in currency movements, accurately forecasting the future of the currency against
USD and guiding importers and exporters in order to protect them from unwanted risks due to
currency fluctuations. The firm aims to bring profit to every client associated with it by reducing
risks caused due to unforeseen fluctuations in the pound.
The Vision
The company’s vision is to build a strong team with detailed FX knowledge and to become
market leaders in the currency consulting industry. The long term vision is to increase TOMA
(Top of mind awareness) that ensures that every time an individual or a company takes an FX
decision, they can think of no better option.
The Aim
The aim of the company is to ensure that no business in the United Kingdom faces any losses
due to fluctuating currency. Every exporter and importer of the country should have sufficient
knowledge on the movement of the currency market and should be able to increase its profit
margins by taking advantage of efficient forecasting of currency movements on a daily basis.

Business Project Proposal 7
The Objectives
1. To gain a detailed insight on currency movements specifically the GBP and USD.
2. To understand how this currency movement impacts various businesses and defining our
target market based on that analysis
3. To critically evaluate the pros and cons of this industry and learn how we can
differentiate our products.
4. To perform a competitive analysis and understand how to position the product in order to
gain competitive advantage against other players in the business.
5. To elaborate on the need and benefits of a currency consultant company.
6. To critically understand the feasibility of this product and how it can be launched in the
market
7. To define various processes and key resources involved in establishing this business.
8. To provide for a market plan and future performance of the business.
Structure of the business
This business will be based on a partnership model with two key partners involved. This business
model has been chosen because the firm requires at least two key personnel to lead the business.
Both the partners will be co-owners and will share the income and hold equal responsibility of
decision making (Galbraith, 2014). Both the partners will have their own areas of expertise in the
business. They would have divided and specific responsibilities and both will aim and work for
the longer term growth of the business. It is important the both the partners aim for the same goal
and work towards it efficiently. There must be complete transparency and shared responsibility
between the two (Hammerness, 2017).