Development of New Business Organisations

Added on - 28 May 2020

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Running head: A NEW TEXTILE BUSINESS VENTURE IN ENGLANDA New Textile Business Venture in EnglandName of the Student:Name of the University:Author Note:
1A NEW TEXTILE BUSINESS VENTURE IN ENGLANDExecutive Summary:Developments of new business organisations create new job opportunities; introduce newproducts and results in generation of more revenue. New companies promote towardsdevelopment of the industries they belong. These factors have made development of newcompanies synonymous to economic advancements. The business organisation irrespective ofsize, industry and tenure comes under the influences of macroeconomic market conditions.These firms have to adopt the market conditions in their policies where attribute them withtheir strengths, weaknesses, opportunities and threats. The paper analyses the how thesemarket conditions influence new firms by taking an arbitrary firm called Great British Cottonbased on London as an example. The firm would produce cotton textile items initially inEngland and later overseas. The company before entering the market would prepare amarketing mix and conduct a feasibility study to estimate whether entry into the marketwould be profitable considering the market conditions. The findings from the analysis showthat the market in Britain in profitable for GBC, the new firm to enter.
2A NEW TEXTILE BUSINESS VENTURE IN ENGLANDTable of ContentsIntroduction:...............................................................................................................................4PESTEL of Britain:....................................................................................................................4Political:.................................................................................................................................4Economic factors:...................................................................................................................6Social:.....................................................................................................................................7Technology:............................................................................................................................8Environmental:.......................................................................................................................9Legal:....................................................................................................................................10SWOT Analysis of Great British Cotton (GBC):....................................................................10Marketing mix of GBC:...........................................................................................................11Product:................................................................................................................................12Pricing:.................................................................................................................................12Place:....................................................................................................................................12Promotion:............................................................................................................................13STP of GBC:............................................................................................................................13Segmentation:.......................................................................................................................13Targeting:.............................................................................................................................14Positioning:..........................................................................................................................14Feasibility study and budget of GBC:......................................................................................14Human resource feasibility:.................................................................................................14
3A NEW TEXTILE BUSINESS VENTURE IN ENGLANDTechnical feasibility:............................................................................................................15Financial feasibility:.............................................................................................................15Business model of GBC:..........................................................................................................16Conclusion:..............................................................................................................................17Recommendations for GBC:....................................................................................................18References:...............................................................................................................................19
4A NEW TEXTILE BUSINESS VENTURE IN ENGLANDIntroduction:Development of new enterprises creates new opportunities in every country. Newbusinesses generate employment opportunities, introduces new products in the market andnew capital generation. All business organisations come under macroeconomic influenceswhich shape their strengths, weaknesses, opportunities and threats or market risks (Roth2015). These risks the market poses to new business require the entrepreneurs to conductfeasibility tests. The researcher would explore a new imaginary business organisation calledGreat British Cotton (GBC)with its headquarters in London, England which wouldmanufacture high quality cotton garments. He would explore the macroeconomic conditionsof the British economy through PESTEL and internal environment of the company throughSWOT. This would be followed by a marketing mix of the new business, STP strategiesfollowed by feasibility studies. The findings from these analyses would be summarised whichwould form the basis of recommendations to the new business organisation.PESTEL of Britain:The following section would explore the macroeconomic conditions of Britain andhow these factors would influence the new cotton textile company:Political:England is a politically stable country under the rule of a parliamentary governmentsystem with the British monarch is her nominal head.The government of England makespolicies pertaining to industries, commerce and all other areas which form the basis ofthe operations of these industries (ons.gov.uk 2017).The country has the advancedtechnology but does not produce cotton fibre, the basic raw material for cotton textileindustry. This is where the political bilateral ties Britain has with foreign countries come into
5A NEW TEXTILE BUSINESS VENTURE IN ENGLANDpower. The government of the country hasstrong bilateral tieswith cotton producingcountries of Asia, America, Australia and Europe (MacDonald 2015). These strong politicalagreements of the British Government with these cotton producing countries allow the cottontextile producing firms in Britain obtain cotton at low costs. This analysis shows that politicaldecisions of the British Government and the foreign ties act as positive catalysts for thecotton textile industry. This means that new firms like Great British Cotton would be able togrow in the market taking advantage of the political ties of Britain (Roth 2015). They firm inits initial can source cotton from the foreign market and manufacture high quality cottontextile.Political factors can also provide challenges to operations of the British cottonindustry. The bilateral ties of Britain with foreign economiesinvite entry of foreign cottonmanufacturerswhich compete with the existing manufacturers. The new cotton textileproducing firms are new in the market are not equipped sufficiently to counteract thisexternal aggression because of their limited resources, market goodwill and knowledge(theguardian.com 2017). A very important political happening which would have strongimpact on the industries in Britain is Brexit. England is a member of the European Union andcan avail the tax free benefits while conducting business within Europe. The industries ofEngland post Brexitwould lose access to the markets of Europewhich would increasetheir cost of obtaining resources like technology from Europe manifold (theguardian.com2017).The new companies like GBC would be affected more strongly because they do nothave the resources to manage this sudden increase in operation cost. This analysis clearlyshows that the political conditions of Britain like a stable government and strong bilateral tiescan encourage development of new enterprises like GBC. However, the political moves likeBrexit, terrorist attacks and sudden change of government policiespose challenges tothese new business firms (Liu, Hodgkinson and Chuang 2014). The new firm GBC should
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