Strategic Agility and Business Model Renewal

This assignment explores the concepts of strategy formulation, business models, tactics, product innovation, and technology strategy. It delves into open and closed innovation methods, core capabilities, and leadership for accelerating business model renewal. The assignment also covers sustainable business development and the role of information systems in environmental sustainability.

INTRODUCTION TO TASK
PORTFOLIO

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1: PART A............................................................................................................................1
Rationale for new business idea.............................................................................................1
TASK 1 Part B.................................................................................................................................2
Objectives behind development of new business idea...........................................................2
Task 2...............................................................................................................................................3
External analysis for selected business proposal....................................................................3
TASK 3............................................................................................................................................5
PART A...........................................................................................................................................5
Defining the launch event.......................................................................................................5
PART B............................................................................................................................................6
Creation of budget for the party:............................................................................................6
TASK 4............................................................................................................................................7
Marketing objectives..............................................................................................................7
Target markets........................................................................................................................8
Marketing mix........................................................................................................................8
Marketing strategies...............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Development of new business idea is concerned with all the activities that are included in
analysing the business opportunities, design of business product and services, formulation of
business structure and marketing (Tukker and Tischner, 2017). It may also be considered as
process that is utilized by individuals or entrepreneurs for the formulation of new and unique
business plan through which they will be able to achieve the objectives. This report is based on a
new business idea of establishing a coffee shop, Nearby London university campus which is
situated in UK. In order to analyse the opportunities for success of new business concept,
external analysis of markets is also discussed. Some important objectives related to development
of new business plan are discussed in present report. At last, a lunch is also designed that
consists of various activities which important for promotion of business.
TASK 1: PART A
Rationale for new business idea.
A new business idea is analysed as concept that can be used for achievement of financial
gains which is mainly centred on a particular product or service. As per the given scenario, a new
and effective business idea of establishment of a new Coffee shop which is to be started at
Nearby the London University, in UK. This business idea is considered to be successful as
university is most important place and recognised by all the important personalities and other
local country people (Leonard, 2011). With effective research, it is found that there is
continuous rise in demand of coffee products between the people of London and they are usually
addicted on consumption on two important products like Cafe latte and Macchiato Coffee.
Moreover, it is unique business idea as there is no such Coffee nearby the place which provides
these products. It will also consist of innovative physical evidence which describe old
architecture and with pictures of old city. In addition to this, menu will also consist of some
unique food products which are mostly popular in other cities and they only exists in come multi
cuisine restaurant within UK. Further, this new cafe shop will also wide range of services to the
people of diversified culture base of customers.
Moreover, this business is going to operate in both online and High Street and will be
famous for its two most preferred coffee products. Prime focus of business of is to satisfy the
needs of customers who are habitual of coffee consumption and usually like have these two
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coffee products. Cafe will serve its products in appropriate quality and quantity at reasonable
prices through which they will be able to satisfy the needs of their customers. Ambience and
atmosphere of cafe will also be attracted and hygienic that gives perception of perfect place for
having a coffee for people. Other than this, for promotion of products company has targeted
Students of university who are likely to have the Coffee products and also capable to pay the
high prices for quality products (Watson, Boudreau and Chen, 2010). The University campus is
an old and Historical building which is Centre of attraction for tourist arriving from different
countries. Therefore, the place will provide major support in influencing the customers and
increasing the sale of cafe. Further, the outlet of cafe will be used for dual purpose by providing
a new dining place for family and Youngsters as well as, a separate area for others. This unique
and attractive combination of structure and multi cuisine food will point out a difference for this
cafe.
Apart from this, some competitors are identified which are already in existence at same
place and providing other coffee products. There are some important competitors of firm are also
analysed like TAP Coffee and UCLU Gordon’s café which are situated nearby by London
university and achieved a continuous growth as they have satisfied the customer demand. Both
these café will provide major effect on business operations of our café. In order to influence the
customers, the café will provide its products at low price as compared to these competitors.
TASK 1 Part B
Objectives behind development of new business idea
As per the above analysis, most significant objective of this work is to provide a
foundation of business proposal for establishment of new Coffee shop in London, UK. Further,
this work is being accomplished by taking an entrepreneurial approach for starting at new
business with new and innovative idea (Teece, 2010). In this context, it is important for every
individual to formulate or have some objectives which provides him directions to carry out
business operations. It is also essential to provide detailed business plan by defining all
functional areas. Moreover, there are some important have been developed which is be achieved
after establishment of new café.
 To maximize financial gains: Every new business or start up is being established by
individuals with a aim of maximizing profits and increasing the consumer base. Further,
this objective will be achieved by Café by providing satisfaction to its customers.
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 To develop brand recognition: Achievement of recognition from people of different
cultural back ground and country is the main objectives of establishment of new café. By
providing quality products at effective prices, enterprise will be able to accomplish this
objective.
 To achieve high return on investments: Purpose of this business proposal is to achieve
maximums returns from the market by making less investment (Rainey, 2010 ). The
business idea which is developed is considered as effective as it requires less investment
and provides continuous benefits in every season.
 To achieve growth in service industry: it is also an important of new business
development as enterprise will require to achieve a continuous growth in service and
want to be most preferred coffee brand in UK. For accomplishment of this objective, the
company will make new and innovative changes in business continuously. By providing
effective quality of products and services, this restaurant will be able to attract its target
customers and sustain in competitive business environment.
In addition to this, there are different legal structures in which every business regulates its
operations like sole trader, partnership and joint venture etc. The most effective form of
business structure is partnership.
Partnership: These are considered as those business ventures which have been established by
more than two individuals with an aim of maximizing profits (Casadesus-Masanell, R. and
Ricart, 2010). These business ventures are being established with an aim of maximizing profits.
In present context, our new business idea will be established in the form of partnership as it will
be effective and requires less investment of capital and risk will transferred between the partners.
Task 2
External analysis for selected business proposal
In order to establish this new business concept it is also essential for the entrepreneur or
parties to analyse the factors that affects the new business operations. In this context, PESTLE
analysis of service industry is done to recognise the opportunities for new business ideas to
achieve success in market (What is PESTLE Analysis?, 2017).
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 Political: This factor of external analysis relates with the role of government in
enhancing the opportunities for business operations to achieve success (Awogbenle and
Iwuamadi, 2010). It includes the laws which are developed by government that influence
our new business operations in service industry like income tax, minimum wage laws,
and environmental policies etc. Further, these laws will analyse and followed while
establishment of business and regulating business operations. Our business will respond
to the present and anticipated future changes in legislation. Moreover, all business laws
will be followed to remove restrictions.
 Economical: these are considered as financial fluctuations which are typically out of
control. For example: it the interest rates in country goes down, then the business will
face more cost on loan as compared to previous year (Al-Mubaraki and Busler, 2013).
The major economic factors that affect the business idea are considered as fluctuations in
interest rate, exchange rates, inflation, disposable income of consumers and business.
Further, it is being analysed that UK economy has achieved a High growth which has
raised the income level of consumers and they are willing to have more quality products
like Coffee. Thus, it has provided a positive influence on service sector of UK.
 Social: These factors relate to the personality, perception, thinking and preference of
customers that affects the individuals towards consumption of products and services. In
present context, the factors that affects the new business ideas will age, distribution,
perception and health consciousness (Rainey, 2010). These factors have provided a
positive impact on service sector as the values of people towards healthy products has
been analysed by enterprise and in our business this concept will also be adopted to
provide satisfaction to consumers. Quality products must be providing to consumers in
our Coffee shop.
 Technological: Technology is considered as most significant factor which is responsible
for providing growth to the service sector business enterprise in UK as they are applying
the new and innovative communication channels like social media, digital marketing,
online promotions and ecommerce websites (Doz, Y.L. and Kosonen, 2010). In present
context, rise in technological services will also provide positive influence on our new
business idea and helps in increasing the customers, sales and profits etc.
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 Legal: Most important factor of external environment that influence our new concept of
business like health and safety, consumers rights and laws, products labelling and product
safety. From the effective research, it has been analysed that these factor provide positive
impact as company will focus on these principles so these objectives which are developed
must be achieved. Further, it can be said that legal factors provide a positive influence on
service sector.
 Environmental: These factors usually relates with the resources which are used by the
firms in service sector to regulate their business operations (Gawer, 2011). In order to
remove the negative influence of these factors the company has provide major provided
focus on making contribution to regulate business operates and will not harm the
environment of country. Thus, it can be said that these factors will also provide positive
influence on our new business.
Thus, it can be said that these factors will give both positive and negative influence on
business operations of on service and our business concept will achieve success if the effective
policies will be adopted to remove all weaknesses.
TASK 3
PART A
Defining the launch event
After formulation of effective and unique business proposal of opining a coffee shop,
there is also a significant responsibility to plan a launch event for promotion of new coffee shop
between the customers. There are several methods through which the individuals are able to
design a launch event that will also be beneficial for them to gain recognition of people from
other countries (Cooper and Edgett, 2010). These important methods include organizing a event,
celebrity endorsement, digital advertisement and other promotion methods. From these methods,
the most effective method which is being selected to promote our new Coffee shop will be
celebrity endorsement as they connected with people of different countries and people also
follow them widely. Through celebrity endorsement techniques the company will be able to
make a strong influence on perception of their target customers. In this launch, 200 people will
be invited which include some government official, family of staff and students of university.
The total budget for the organizing a success full launch events have been so that effective
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allocation of resources have been done. Further, we will also invite the local media channels to
cover the event and organize an appropriate program for guest.
PART B
Creation of budget for the party:
As per the previous analysis, it was clear that two hundred people will be invited in
launch event for appropriate planning has been done related lunch, entertainment and other
important things as per the requirement (Herzog and Leker, 2010). For organizing every event of
launch function of new business, it is essential to develop a budget in order to get an estimation
of funds which are needed to meet those expenses. Therefore, a budget and cash flow statement
is being prepared to describe the activities which are needed to be accomplished in appropriate
budgets.
Items Expense
Entertainment 800
Purchase of equipment’s 3000
Salary to staff 4000
Advertisement 900
Decoration 500
Food 2000
Other expenses 600
Total expenses or budget 11800 GBP
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From the above mentioned statement, it is being clear that these are some important
activities which are needed to be accomplished for establishment of new business and designing
a launch event for promotion of our new coffee products and services. With effective allocation
of budget and resources, it will be possible to meet the requirements and accomplish the task
success fully.
TASK 4
Marketing objectives
Marketing of business operations is considered as important as it includes various aspects
through the company will be able to attract their customers towards the products and services
(Wheelen and Hunger, 2011). For marketing of our new business plan, there are some important
objectives have been accomplished which are needed to be met in defining the objectives.
 To attract the customers by providing them information about products and services.
 To achieve a continuous growth in market share as compared to rivals.
 Rise in promotion of products and services through new channels like social media,
digital marketing and advertisement etc.
 Achievement of customer satisfaction by analysing there preference towards products
and services.
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Target markets
The company will cater to people who are likely to have their daily cup of great tasting
coffee in a relaxing atmosphere. The target customers of company will the youngsters, students
and family. In this the main targets of company will be the university students who are most
likely to have coffee with their friends and enjoy some couple of hours. Although our location is
nearby the university campus, thus most of our customers will be college students and faculty.
Market research states that these are discerning customers that attracts towards the better taste of
coffee (Rainey, 2010). Moreover, a lot of college students consider the coffee shops as better
place to be convenient for studying and organizing at get together party. For us, this will give a
unique opportunity to build a loyal customer base.
Marketing mix
It includes four basic elements which describe the effective of enterprise to attain its objectives.
These four elements are discussed above:
 Product: These are considered as goods and services which the company will provide to its
customers and differentiate their brand from rivals (Spieth, Schneckenberg and Ricart,
2014). In this context, the main products which are served by our coffee shop will be Cafe
latte and Macchiato Coffee which are most effective and preferred by our target customers.
 Price: These are charges which are taken by company against the sales of their products and
services. As per strategy, the company will charge low prices of their products as compared
to rivals so that they will achieve recognition from customers.
 Place: It is considered as location of business where operations are going to be regulated
and established. The place which is selected is nearby by the University of London which is
most prominent and attractive place for our target customers.
 Promotion: There are various unique and new practices will be applied for increasing the
recognition of our new brand among the customers. These promotion practices include
celebrity endorsement, digital advertisements and social media etc.
Marketing strategies
The market strategy is considered as plan to influence the people whom the company has
selected for the sales of their products and services (Teece, 2010). In our business plan, the most
effective marketing strategy for our target market will be cost differentiation strategy in which
the company will provide its products at lowest prices by analysing the prices of its competitors.
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They will increase their marketing on the basis of differentiate their brand in comparison of
prices of products and services. Further, for youngsters they will apply the strategy of
differentiating the quality and also provide some extra benefits without any charges to influence
them and make a loyal customers base.
CONCLUSION
In present report, it is concluded that development and implementation of new business
concept is a complex that requires a lot of time, efforts and financial resources to meet the
objectives. A new business idea is analysed as concept that can be used for achievement of
financial gains which is mainly centred on a particular product or service. There are several
methods through which the individuals are able to design a launch event that will also be
beneficial for them to gain recognition of people from other countries. These important methods
include organizing a launch event, celebrity endorsement, digital advertisement and other
promotion methods. Marketing of business operations is considered as important as it includes
various aspects through the company will be able to attract their customers towards the products
and services.
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REFERENCES
Books and Journals
Al-Mubaraki, H.M. and Busler, M., 2013. Business incubation as an economic development
strategy: A literature review. International Journal of Management. 30(1). p.362.
Awogbenle, A.C. and Iwuamadi, K.C., 2010. Youth unemployment: Entrepreneurship
development programme as an intervention mechanism. African Journal of Business
Management. 4(6). p.831.
Casadesus-Masanell, R. and Ricart, J.E., 2010. From strategy to business models and onto
tactics. Long range planning. 43(2). pp.195-215.
Cooper, R.G. and Edgett, S.J., 2010. Developing a product innovation and technology strategy
for your business. Research-Technology Management. 53(3). pp.33-40.
Doz, Y.L. and Kosonen, M., 2010. Embedding strategic agility: A leadership agenda for
accelerating business model renewal. Long range planning. 43(2). pp.370-382.
Gawer, A. ed., 2011. Platforms, markets and innovation. Edward Elgar Publishing.
Herzog, P. and Leker, J., 2010. Open and closed innovation–different innovation cultures for
different strategies. International Journal of Technology Management. 52(3/4). pp.322-
343.
Leonard, D.A., 2011. Core capabilities and core rigidities: A paradox in managing new product
development. In Managing Knowledge Assets, Creativity And Innovation (pp. 11-27).
Rainey, D.L., 2010. Sustainable business development: inventing the future through strategy,
innovation, and leadership. Cambridge university press.
Rainey, D.L., 2010. Sustainable business development: inventing the future through strategy,
innovation, and leadership. Cambridge university press.
Spieth, P., Schneckenberg, D. and Ricart, J.E., 2014. Business model innovation–state of the art
and future challenges for the field. R&D Management, 44(3), pp.237-247.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range
planning. 43(2). pp.172-194.
Tukker, A. and Tischner, U. eds., 2017. New business for old Europe: product-service
development, competitiveness and sustainability. Routledge.
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Watson, R.T., Boudreau, M.C. and Chen, A.J., 2010. Information systems and environmentally
sustainable development: energy informatics and new directions for the IS
community. MIS quarterly, pp.23-38.
Wheelen, T.L. and Hunger, J.D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Online
What is PESTLE Analysis?, 2017. [Online]. Available through:<pestleanalysis.com/what-is-
pestle-analysis/ >
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