Business Venture: Launching a New Supermarket Chain - Desklib

This document provides insights into the process of launching a new business venture in the retail industry, specifically a new supermarket chain. It covers topics such as target market analysis, competitive analysis, required resources, and promotional activities. The document also includes a proposal for the launch of the venture.

Business Venture
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK1.............................................................................................................................................3
P1 a new venture classifying specific goal markets and responsibility competitive analysis.....3
P2 Determining specific tangible and intangible resources that would be required for the
launch of a new venture...............................................................................................................5
P3 a credible proposal to launch a new venture..........................................................................6
TASK2.............................................................................................................................................7
P4 Measuring the skills and competences required to launch a new undertaking and how they
are learned or developed an individual........................................................................................7
TASK3.............................................................................................................................................8
P5 Explain different publicity activities and stations that will support the launch and justify
their choice...................................................................................................................................8
P6 Developing an suitable publicity activity plan for both launch and pre-launch.....................9
TASK4...........................................................................................................................................10
P7 Producing an itemised scheduled cash budget for the pre-launch phase of the undertaking
and the first 12–18 months previous launch..............................................................................10
P8 an appropriate legal form for the venture stating reasons why it has been chosen..............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
With the changing market entrepreneurship is continuously developing, if it is talk about
the current trends then entrepreneurship can be defined as innovative idea for opening a new
business venture where there is risk with high level of profit. And entrepreneurship can be
defined as opening a new business by managing the resources and bring and innovative idea for
improving the goods and services and satisfying the needs of consumer within the marketplace,
the person who bring innovative idea known as entrepreneurs. This file is considered on new
entrepreneurship venture named as "healthy limited". It is a newly formed supermarket chain
which provides nutrition diet supplements and variety of foods on its stores along with grocery
items. In this report there will be analysis of this venture (Zane and DeCarolis, 2016). In the
beginning of report there will be investigation about the target market and competitive analysis
of the venture where there is also determination of some specific and intangible resources that
would be required to launch a new venture. There will also a new proposal which show the
launching of the venture. The middle of the report is consist of, skills and capabilities which are
required by entrepreneur for launching this venture, where the activities related to promotion and
development of effective promotion plan will also discussed. Indian dog report there will be
discussion honour cash budget for pre-launch face of the venture. The discussion about the legal
requirements will also be made which is essential for opening of this business unit.
MAIN BODY
TASK1
P1 a new venture classifying specific goal markets and responsibility competitive analysis
Over the past few years, there has been a significant change in the trends and consumption
patterns when it comes to food essentials and products. An increasing awareness of health and
nutritional diet supplements has created an opportunity to open a venture of supermarket stores
which offers a variety of nutritional and diet food supplies along with other grocery items. The
proposed business venture under the name of Healthy Ltd. has the objective of establishing a
supermarket store which offers a range of nutritional supplements and organic food products
which are healthy for consumption. The vision of the venture is to make it easier for people to
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adopt healthy eating habits by increasing the access to nutritional food products. The proposed
business venture has a huge market potential by filling the gap existing between customer
requirements of healthy food products and diet supplements and what is being currently offered
in the market.
Target Market:
The target market or potential customers for the proposed business venture have a huge
spectrum to follow. It covers the need and requirements of people who are trying to shift to a
healthy food consumption routine. People aged between 16 and 60 years of age are the potential
customers of the venture. Over 30% of the youth aged between 18-35 years in Britain have
started consuming healthy food products with high nutritional contents. Along with people
looking for healthy food consumption alternatives, the products offered in the business venture
also attracts the consumer market for grocery and retail products (Villani, Linder and Grimaldi,
2018).
SWOT Analysis:
Strength: One of the major strength of the proposed business venture is that it satisfies the
existing gap between the demand of consumers for healthy food products and what is being
currently offered in the market. Wide range of nutritional food products is the biggest strength of
the proposed business venture.
Weakness: Increased costs of operations and expenditure which will be incurred in
marketing and positioning of the products and the venture leads to low profitability during the
initial period which is one of the biggest weaknesses. Low profitability might affect the ability of
the company to fight the competition in the industry from the existing firms which have the
maximum share of market.
Opportunities: Entrepreneurial idea which has been proposed in the above part of the report
has a huge opportunity to capture a considerable share of UK markets with its unique line and
range of healthy food products. The growing awareness and concern of people for healthy food
supplements is a major opportunity for the venture.
Threats: One of the major threats for the proposed business venture is the existing level of
intense competition between grocery and retail supermarkets who are leading the industry in UK
such as TESCO, Sainsbury’s etcetera. These are the big players in the industry with an existing
large customer base and market share which might be a threat for the proposed business venture.
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P2 Determining specific tangible and intangible resources that would be required for the launch
of a new venture
Tangible resources are those which are directly visible company and play an important role in
deciding the launching and future of business venture. There are some tangible resources which
are important for healthy limited successful launching of the business, these are mentioned
below:
Financial resources: financial resources important part of a business this is because the
act as a backbone for other resources and functioning of the organisation. Financial resources can
be obtained from various sources like bank loan, issuing of share, mortgage borrowing and many
more. This is an important part for business as operates at starting function and launching
(Terjesen, 2016).
Human resources: human resources are also part of tangible assets which act as a
strength of organisation. Hiring qualified and experienced professional will help newly formed
venture getting competitive advantage within the market. Healthy limited also focus on this part
very well qualified and highly able employees.
Physical resources: this includes premises and equipment’s of the organisation for
working. In context of healthy limited, there are number of stores which organisation will open
at global level. For this organisation chooses the premises which are situated in the centre of
cities which will attract more and more customers. Company also use latest technological
instruments for its working.
Intangible resources are those which are not directly visible to the business unit are the
other stakeholders of the venture but they are important part of the business. Please play
important role in increasing the efficiency and building the reputation of the business as well as
protecting the new venture from the threat of being copied. These intangible assets also save
business from legal liabilities and sue made by competition or government institutes and legal
authorities. Some of the key intangible resources of healthy limited are mentioned below:
Patent: patent are those legal rights which save company's product from being copied by
the competitors in a competitive market. In context of healthy limited, company have the patent
for its nutrition product dietary supplements which are helpful for company to maintain the
uniqueness within the industry and save their product from being copied by the competitors and
other supermarket giants.
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Goodwill: is also important resource for an organisation which will help it in attracting
customers and increasing the sales. Healthy limited also have a good Goodwill within the market
which help it centre in attracting the target customers. This quotation is dealt with the use of
advertisement prior to the launching of company as well as good image of owner name within
the market.
Technology: it is also important resource which is used by healthy limited in its
functioning. Technology is that intangible resource of an organisation which help for
maintaining uniqueness within the competitive environment this will also help organisation in
getting the maximum benefits from its operation and increasing the productivity. Healthy limited
is using the latest technology in its functioning, healthy limited use automatic machines and
number of self-checkout systems which will increase the productivity as well as customer
satisfaction (Stayton and Mangematin, 2019).
P3 a credible proposal to launch a new venture
Executive Summary: Retail industry is continuously growing, this is because there is a
large number of in this industry is continuous development method of production and promotion
within the industry. There are a number of sellers industries operating from long time. It is
difficult for a venture to enter in the industry without using any innovative product or services.
But with the use of Innovation newly found venture can enter in this with maximizing its profits
continuously (Paul and Rosado-Serrano, 2019).
Company Description: So, here we are launching a new retail business named as healthy
limited. It is a newly formed venture which has the specialisation in supply of food supplements
and curry ingredients in food. Specialised departmental store and retail chain where customer set
number of products for satisfy their needs. The key focus of healthy limited provide different
benefits to their customers who conscious about their health (Mullins, 2017).
Industry analysis: Retail industry is very large where there are number of supermarket
with variety of products this industry also have huge number of customer base where large
operators like Tesco Sainsbury and ASDA are other operating with more than 5000 stores
together.
Market and Competition: Market of retail industries very fast and fast developing where
there are continuous changes and technology and other factors related to products. For this,
health limited have separate plans where we invest more in research and development and
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marketing function adopting new changes and promoting them to the customers by providing
them health-related benefits of our healthy food products.
Strategies and Goals: The Company’s main strategies to promote its healthy food products
where we can achieve top position in food and allied activities. The main goal of company is to
achieve did 30% market share within the launching of venture to the market.
TASK2
P4 Measuring the skills and competences required to launch a new undertaking and how they are
learned or developed an individual
There are number of skills and abilities which can be used by an individual while opening a
business venture to earn profits and ensure the smooth flow of options within the organization.
These skills have there direct impact on an individual performance as well as performance of
business in target market. There are some skills which can be used by healthy limited for its
business in their target market.
Financial management: it is an important skill which is required by an entrepreneur for
successful opening of new business venture. In context of healthy ltd it is important to identify
the potential source of furnace as well as management of fiancé within different department of
firm. This skill can be accrue and developed by a manager with the help of past experience and
effective stay about different source of finance (Michael, 2018).
Communication and negotiation skills: This is also important part of skills for
development and functioning of organization this is because there are number of department
within the firm where there is supply of different information regarding work and administration
which have to be faced by the organtional. This skill will lead to effective transfer of information
within firm. In context of healthy ltd, it is essential to be negotiated and fully communicated
within whole department for good working and increase profitability. This can be develop by an
individual entrepreneur, by conducting regular observation and effective learning form different
past experience (Kuratko and Hornsby, 2017).
Leadership: leadership in an organtional can be defining as practices and skills of an
entrepreneur to guide the employee in the direction of organtional goals and objective with
identification of particular way to achieve them. In context of healthy ltd, it is a new venture
which requires positive guidance and leadership in organization for achievement of goals
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objectives. So, it is the duty of manager or the owner to guide organization in direction of firm’s
goals.
Problem solving skills: As, starting a new venture always become a challenge for
entrepreneurs, this is because there are number of 6ask and problem while working. These have
to be removed by the business man with the help of problem-solving abilities and performance
management. There are number of problem which will arise in front of healthy ltd which have to
be solved by entrepreneur on regular working on these projects. This skill can be develop by an
entrepreneur with the use of its personal skills and ablates of mind (Kowalik, Danik and Sikora,
2017). This can also develop with the help of identification of different alternative and choosing
the best one which directly related.
Healthy limited can acquire the skills and abilities by various ways. It can acquire the
professionals of other multinational companies by giving them advantage to lead the organisation
or increase the monetary and non-monetary benefits for them. It can also include an effective
recruitment policy which will hire more competitive employees from the market who have these
skills development of organisation.
TASK3
P5 Explain different publicity activities and stations that will support the launch and justify their
choice
There are number of promotional strategies which can be used by the organisation for
promoting the product within the target market. These strategies can be used by the healthy
limited for promoting its product to the target customers. Company can use different type of
promotional activities which can bring the change in sale of organisation as well as promote the
product of firm in competitive market. Some of these promotional strategies are mentioned
below:
Sales promotion: post marketing strategy a promotional strategy which is used by the
company to increase the sale of its product here company provide customer with direct incentive
to buy the product such as an offer of free cinema ticket while purchasing the product of
company.in accordance with this technique company can easily sell its product on normal profit
margin by promoting its services to the customers (Kirkley, 2016).
Merchandising: this is also a promotional strategy which is used by the organisation after
the formation of venture while doing the business. In this promotion strategy from use and
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arrange the institute display equipment to communicate the benefits of the product and services
of the company. In context of healthy limited promotional strategies also effective it can promote
its healthy food chain and nutrition supplements to the customers directly.
Exhibition and trade fair: includes a display of several business product intended to
communicate the benefit of the product to potential customers the strategies adopted by the big
venues for national exhibition centres in UK where they use regulatory affairs for promoting the
product of their company. This is an effective way to promote the product of the organisation in
target market specified customer can be targeted (Jiang, Cannell and Jiao, 2018).
Advertisement: it is also an effective tool for promotion of the product by the company.
This can be used by the healthy limited for promoting its product in this fit can communicate
with the customer through the mass media such as television radio and newspapers, where it can
reach to use number of customers.
Sponsorship: improving the image of the business of the product by funding the related
activities like on saving the football team allowing them to put the business name and logo on
the kit and give them to good publicity. Is the best way where a company can promote itself. In
context of healthy limited, firm can also use this function and its promotional strategy. Full
benefit company in getting access to large customers as well as build brand image (Favarel-
Garrigues, 2019).
P6 Developing an suitable publicity activity plan for both launch and pre-launch
Healthy limited can use different steps in promotional activity which will associate with its
launching as well as pre launching programs. Company will use advertisement of the venture
and its product on different platforms like newspaper televisions radios social sites, where
healthy limited can be promoted with the help of digital as well as non-digital means of
promotion. This will also impact on the Goodwill as well as attract customer towards the
organisation. There will also use of sales promotion strategies where company promotes its
organisation in different places, attractive offers are given to the customer before the launching
of organisation to attract large number of customers at the opening ceremony. Separate opening
ceremony will be performed where number of Hollywood celebrities will be invited. Also attract
attention of customers toward the organisation before starting the proper work.
This type of promotion tools will be used in the pre launching event of the organisation.
Company will you also use television advertisement where customers will be informed about the
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launching ceremony as well as products of the company and the sales promotion methods which
are used by company to promote its product. Use of all this things company can get huge number
of customers towards it(Cao, 2018).
After launch strategy: after launching of the venture there will be use of merchandising
exhibition and trade fairs as well as a sponsorship to promote the company and its product within
target market. This company will sponsor cricket team of England as well as local region. Help
company in attracting both local as well as outside customers towards the product and services of
organisation. This is also helpful in increasing the brand value as well as Goodwill within the
market, every individual link to restore information about company and its product (Blank,
2017).
TASK4
P7 Producing an itemised scheduled cash budget for the pre-launch phase of the undertaking and
the first 12–18 months previous launch
Pre-launch Cash Budget ($):
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P8 an appropriate legal form for the venture stating reasons why it has been chosen
Healthy limited will registered itself as a corporation. Corporation is a legal entity that is
created to conduct the business. The corporation become a separate entity from those who found
it that handle the responsibility of the organisation, Third person in law. Like a person of
corporate can also be text and held legally liable for its action. The profits which are producers
by the corporation are their own. The key benefits of corporation status are to provide no
personal liability. So, registering as a corporation is a best suitable idea for healthy limited.
The benefits of choosing corporation as a legal form of business:
Limited liability: the first benefit of choosing corporation as a legal registration of a
company is that there will be limited liability of the owners. This is because owner of healthy
limited are not personally responsible for debts and liability of the business does there is no
personal liability of owners regarding business (Auschra, Braun, Schmidt and Sydow, 2019).
Tax advantage: corporations are often gain tax advantage, deeper deductibility of health
insurance premium paid on the behalf of the owner and employee, savings on the self-
employment tax, this is because corporation income is not subjected to social security. It is also a
benefit of choosing corporation as a legal existence of organisation.
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Unlimited life: operation journal not depend on the life of their owner like other forms
which is sole proprietor and many more. Farmers have their separate legal existence which can
be continued by different owners for the next generations of the organisation.
CONCLUSION
It can be concluded from the above mentioned report that, launching a new business is an
tough task for an entrepreneur this is because there are number of things which it have to identify
prior to launch the business. First thing for entrepreneur have to identify the internal and external
factors which will did helpful in identifying the business opportunities within the market. It has
also examined the tangible and intangible assets which will helpful in performing the business
activities and makeup qualified and creditable proposal to launch a new business venture.
Number of skills which are also required by an individual to perform different task within the
business activity and effective promotion tools like advertisement branding and many more
which will directly related to launching of the business venture.
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REFERENCES
Books and Journals
Auschra, C., Braun, T., Schmidt, T. and Sydow, J., 2019. Patterns of project-based organizing in
new venture creation. International Journal of Managing Projects in Business.
Blank, S., 2017. Why the lean start-up changes everything. Harvard business review.
Cao, R., 2018. Information frictions in new venture finance: Evidence from product hunt
rankings. Working Paper.
Favarel-Garrigues, G., 2019. Digital vigilantism and anti-paedophile activism in Russia.
Between civic involvement in law enforcement, moral policing and business
venture. Global Crime, pp.1-21.
Jiang, H., Cannella, A.A. and Jiao, J., 2018. Does desperation breed deceiver? A behavioral
model of new venture opportunism. Entrepreneurship Theory and Practice, 42(5),
pp.769-796.
Kirkley, W.W., 2016. Creating ventures: decision factors in new venture creation. Asia Pacific
Journal of Innovation and Entrepreneurship.
Kowalik, I., Danik, L. and Sikora, T., 2017. Entrepreneurial orientation elements in the Polish
international new ventures. Baltic Journal of Management.
Kuratko, D.F. and Hornsby, J.S., 2017. New venture management: The entrepreneur’s roadmap.
Taylor & Francis.
Michael, S.C., 2018. What should we teach in the new ventures class? An empirical
analysis. Journal of Entrepreneurship Education.
Mullins, J., 2017. The New Business Road Test: What entrepreneurs and investors should do
before launching a lean start-up. Pearson UK.
Paul, J. and Rosado-Serrano, A., 2019. Gradual internationalization vs born-global/international
new venture models. International Marketing Review.
Stayton, J. and Mangematin, V., 2019. Seed accelerators and the speed of new venture
creation. The Journal of Technology Transfer, 44(4), pp.1163-1187.
Terjesen, S., 2016. The Right Stuff: A NASA Technology–Based New Venture and the Search
for Markets on Earth. Entrepreneurship Theory and Practice, 40(3), pp.713-726.
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Villani, E., Linder, C. and Grimaldi, R., 2018. Effectuation and causation in science-based new
venture creation: A configurational approach. Journal of Business Research, 83, pp.173-
185.
Zane, L.J. and DeCarolis, D.M., 2016. Social networks and the acquisition of resources by
technology-based new ventures. Journal of Small Business & Entrepreneurship, 28(3),
pp.203-221.
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