Emerging business opportunities for The Ledbury

Entrepreneur Research
Project
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Executive Summary
Entrepreneurship is the process to start a venture by taking up financial and other risks to
earn huge profits. There are opportunities available in the market which are exploited by the
entrepreneurs to lead the business towards growth. The spread of corona virus impact adversely
on economy and businesses and its profitability. In this situation, it becomes very necessary for
the restaurant to adopt appropriate strategy for leading the business towards growth. Takeaway
service is one of the best way that help business in attaining growth in the situation of
coronavirus spread. Prior to developing a strategy, it is very necessary to properly analyse
internal and external environment of business along with the risks and growth strategies that may
be adopted for leading the business towards growth.
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Contents
Executive Summary.........................................................................................................................2
TITLE: “Emerging business opportunities for The Ledbury’’........................................................5
1. RESEARCH BACKGROUND AND INTRODUCTION...........................................................5
Research Background.............................................................................................................5
2. LITERATURE REVIEW............................................................................................................6
3. RESEARCH METHODOLOGY.................................................................................................6
4. ANALYSIS..................................................................................................................................8
4.1 Internal Analysis...............................................................................................................8
SWOT Analysis......................................................................................................................8
VRIO framework....................................................................................................................9
4.2 External Market Analysis...............................................................................................11
PESTLE Analysis.................................................................................................................11
Porter’s five force analysis...................................................................................................13
4.3 Analysis of emerging business opportunities.................................................................15
4.4 Risk Analysis..................................................................................................................15
4.5 Strategic Analysis/ Growth Strategy..............................................................................16
Porter’s Generic Strategy.....................................................................................................16
Business Growth proposal.............................................................................................................17
5. RECOMMENDATIONS TO THE COMPANY.......................................................................19
6. CONCLUSION..........................................................................................................................19
REFERENCES..............................................................................................................................20
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TITLE: “Emerging business opportunities for The Ledbury’’
1. RESEARCH BACKGROUND AND INTRODUCTION
An entrepreneur is the person who establish a new business by taking up financial and
another risk with the hope of earning high profits. They are seen as innovators as well as source
of new product, ideas, services and business. In today's business environment, the competition is
huge which requires every business to differentiate itself with the rivals by adopting new ways of
doing things. Currently, the spread of corona virus pandemic impacts almost all the businesses in
adverse way, slow down the economy which directly impacts on the profitability and revenues of
firm (Matlay, and et. al., 2015). The restaurant industry is impacted highly by the spread of virus
as due to preventive measures like restrictions on movement and social distancing, it becomes
very difficult for restaurants to operate successfully. So, in order to ensure growth and success of
business, The Ledbury is decided to come up with a strategy of providing home delivery and
takeaway services to customers so that they do not require to move outside for having lunch or
dinner and can order food by sitting in the home only.
The Ledbury is a well-known restaurant of London which perform its operation successfully
from last 15 years in the city. The restaurant ensures to provide high quality food items to
customers along with fast delivery services. The restaurant also provides takeaway services to
customers in order to ensure its growth even during the situation of spread of virus. This report
covers different frameworks for analysing the situation of the external market through using
PESTLE and Porter’s five force analysis. For analysing the internal environment of business,
SWOT analysis and VRIO framework is used. Apart from this, risk is analysed and a growth
strategy is selected for the restaurant by using Porter’s generic growth strategy which help in its
growth and success in the market (Sridhar, and et. al., 2016).
Research Background
A business opportunity can be referred as the packaged investment in business that
enabling buyer to initiate certain business. There are many opportunities available in the market
currently for businesses in order to lead them towards growth and success. The most common
type of business opportunities includes franchising, network marketing, licensing, distributing
and dealing. In the current business environment, all the businesses are impacted because of
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spread of coronavirus pandemic. This resulted into slowdown of economy and ultimately
impacts the profitability and revenues of organisations. This project is based on the title
"Emerging business opportunities for The Ledbury". The main of aim of the project is to
determine growth strategy for business so that it can be able to accomplish growth and success
even in the situation of spread of covid-19 pandemic.
Aim of Research:
“To determine the business growth strategy for The Ledbury by the means of product
development”
Objectives of research:
1. To analyse the internal and external market of organisation.
2. To determine the risks which can be face by organisation while operating its business.
3. To assess the different growth strategies which are available for organisation to grow in
the market.
Research Questions:
1. How to assess internal and external market of organisation?
2. What can be the risks which can be face by organisation while operating its business?
3. What are the different growth strategies which are available for organisation to grow in
the market?
2. LITERATURE REVIEW
Internal and external market of organisation
As per the view point of J. Luty, 2020, the restaurant and food service industry of United
Kingdom had undergone growth period prior to the spread of coronavirus pandemic in year
2020, with revenues depicting an increasing trend over the years. However, before the pandemic,
the restaurants in United Kingdom were struggling to survive as several succumbed to closures
in year 2018 and 2019. Increasing costs, declining customer spending and oversaturated market
from increase in casual dining brands in preceding years, have contributed to insolvencies of
autonomous restaurant and leads to closure of many big chin outlets. Now, due to uncertainty
because of unexpected pandemic and brexit, the future of restaurant industry is less known. It has
been anticipated that the revenues fall by around 33% in year 2020, but the outlook suggested
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