Entrepreneurship and Business Development

This study material provides insights into entrepreneurship and business development. It covers topics such as market analysis, marketing strategy, market growth, resources required for the venture, and risk analysis. Learn about the rationale for launching a business, macro/micro analysis of the market, competitor analysis, segmentation analysis, and more.

Entrepreneurship and
Business Development

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
The rationale for launching the business and its vision and mission..........................................3
Macro/micro analysis of the market place- PESTEL Analysis..................................................3
Competitor analysis and highlight the competitive advantage- Porters' five forces...................5
Segmentation analysis, providing market statistics (size and growth) to support your selection
of the target segment/s................................................................................................................6
Marketing strategy- marketing mix analysis...............................................................................7
Market growth strategy- Ansoff model.......................................................................................8
Resources required for the venture including the source of finance...........................................8
Risk analysis and how those risks will be treated.......................................................................9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship is the activity which involves setting up the business by taking into
account the financial risk with a hope of earning profit. It is a concept which involves
development and management of the business venture. It is commonly called the willingness to
start a new business enterprise. Business development is the activity of pursuing the strategic
opportunity for the particular business (Indrasari and et. al., 2018). This is a thought of a
marketing tactic. The main function of this is to utilise the partners in selling the offering to the
right customers. This report is based on the business idea which includes introduction of a new
business with its vision and mission, porter's 5 forces for market analysis and competitive
analysis. Further it will include segmentation, targeting and positioning, marketing mix, market
growth strategy, sources of funds and the risk analysis.
MAIN BODY
The rationale for launching the business and its vision and mission.
The business plan proposed is Fort cafe, which will be located in London, UK. The cafe
will be rooftop, where the customer can enjoy the fresh environment with beauty of London.
There will be a variety of dishes which will be served in silver service in which guest can order
and a waiter will assist the customer. It will be multi cuisine cafe which offers different type of
food that can satisfy the customer across the London. It offers a mocktail which is infused with
lime juice and mint with the garnish of lemon. This will be the unique product of the cafe and
guide every waiter to offer that mocktail. It will help in increasing the sale of the product.
Mission of this cafe is to attract the large market in the London and earn maximum
revenue in the business. It also aims to provide the better customer service to maintain the good
relationship with the customer (Faghih, 2019).
Vision of this business to build a good customer base and expand their business in large
market and sustain in the market by providing better customer experience and quality services.
Macro/micro analysis of the market place- PESTEL Analysis.
In order to analyse the macro market, PESTEL model is being applied which contains 6
factors which affect the working of the business. In context to Fort cafe, the PESTEL analysis is
illustrated below-

 Political- The Fort cafe must comply with governmental policies and regulations so that
it can avoid any hardships. Further political stability plays an important role for its
establishment in the country. Economic- It is important for the Fort cafe to ensure that there is no inflation in the
economy otherwise the profitability of the business will be affected as purchasing power
of the people will reduce. Social- The changing trends of the customers and the needs and preference of the
customers must be taken into consideration so that the Fort cafe can attract new
customers from the market. Technological- The Fort cafe must ensure that it inbuilts or ensures advance technologies
in to its operations so that it can serve the customers with the best. This will help in
increasing the market share for the business. Environmental- The Fort cafe must ensure that it does not include plastic bags or other
resources which degrade the environment other the business can face hardships.
Compliance with environmental regulation is very important.
 Legal- The Fort cafe must comply with food and safety regulations and other legislations
so that there is legal consequences faced by the business. The compliance with the laws
ensures smooth functioning and attract customers.
Micro analysis- SWOT
It is a model which is used to identify the strength, weakness, opportunity and threat of
the company so that it can use its strength to overcome weakness and threats (Martynova and et.
al., 2019). In context to Fort cafe, the SWOT analysis is illustrated below-

Strength
 The major strength of the company is
the market where it operates. The new
unique item adds a cherry to the cake
for the Fort cafe. Another strength is its target market
which are youth and middle aged
people as business offers multi cuisine
and attract all sectors of customers.
Weakness
 The weakness of the cafe lies in its
limited option in the menu as it does
only offers one item which is
distinguishable from the competitors
and rest are same.
 The Cafe is not yet familiar with the
preference of the customers which is its
weakness.
Opportunity
 The opportunity for the business is to
attract more customers by creating an
environment like adding a live musical
band who can entertain customers. The Cafe must add some new variants
to its menu in order to attract potential
customers.
Threat
 The competition is its major threat who
are well established.
 The changing market needs and
demands is also threat.
Competitor analysis and highlight the competitive advantage- Porters' five forces.
In order to analysis the competition, porter's five forces is being used. It is a model which
consists of five forces which determines the competitive attractiveness and intensity of the
market. The five forces are discussed below in context to the Fort cafe- Bargaining power of supplier- This is mainly concerned with the easiness of suppliers to
drive up the prices (Guerra and de Gómez, 2016). In context to the Fort cafe, the power
of this force is high as the Fort Cafe is a newly launched business which have limited
number of suppliers. Bargaining power of buyer- It is concerned with the easiness of buyer to drive the prices
down. In context to Fort cafe, the power of this force is moderate as the cafe shall have
fixed price for its products which it will be offering. The products will be offered which

shall be of extreme high quality so there are less chances that buyers will switch over to
the other. Threat of substitute- It involves the close substitute of the products which already exist
in the market. This increases the power of customers to switch to other alternative if price
increases. For Fort Cafe, the power of this force is low where the customers will get some
unique items which are creatively made by the team of chef. This uniqueness will not
allow the customers to switch to other as the product shall be exclusively made by the
Fort cafe only. Threat of new entry- It is concerned with the profitable market which attracts the new
entrants and erode profits of the company (Wellner and Lakotta, 2020). In context to
Fort cafe, the power of this force is high as opening a new cafe does not involve major
resources. Moreover there is no entry barrier for opening a cafe so the power of this force
is high.
 Competitive rivalry- It is focused on number and the capability of the competitors in the
market. In context to Fort Cafe, the power of this force is moderate as the competitors
are in numbers. But the element of unique item in the cafe differentiate the business from
its competitors and attract the customers towards it.
Segmentation analysis, providing market statistics (size and growth) to support your selection of
the target segment/s.
Segmentation means a process in which the group of customers are divided according to
the range of variables which determine market characteristics and the tendencies. In context to
Fort cafe, the market segmentation is done on the basis of demographics which includes race,
color, gender, age, etc.
Targeting is the process which involves identification of the most attractive segment
from the segmentation stage (Moreno-Izquierdo, Ramón-Rodríguez and Perles-Ribes, 2016). In
context to Fort cafe, the target market of the business is youth and middle aged people of the age
between 18- 45.
This target market is selected as the cafe provides such food items which are mostly
preferred by these young generation. The products and services are such which are set according
to their needs.

Positioning involves access to the competitive advantage and then positioning the
business in the minds of the customers. The Fort cafe shall position itself by using different
marketing campaigns and social media platform in order to reach the customers.
Marketing strategy- marketing mix analysis.
Marketing mix is a tactic which is used by the businesses in order to pursue its objectives
of marketing in a target market. It involves 7Ps which help in making the marketing decisions.
The 7Ps in context to Fort cafe is discussed below- Product- It is the item which is actually sold by the business. The Fort cafe offers multi
cuisine to the customers keeping in mind the preference of the target customers. Also the
cafe offers unique item which is a mock tail to ensure attraction of large customers. Price- It refers ti the value which is to be paid by the customers in order to purchase the
product and avail the services. The pricing strategy of the Fort cafe is competitive pricing
so that it can offer same items with more or less same price in order to prevent the
switching of the customers. Place- It is the point of sale from where the services will be offered to the customers
(Stoyanova and Harizanova-Bartos, 2017). The Fort cafe shall offer its products and
service through its physical outlet which is going to establish on the streets of London.
Also the cafe shall start the online system to deliver the items at home. Promotion- It includes the activities which is undertaken by the business in order to make
the product or service known to the people. The Fort cafe shall use traditional method of
promotion which includes advertisement on newspapers and digital promotion through
social media platform to make the cafe known to all. Physical evidence- It refers to the environment which is experienced by the customers.
The Fort cafe shall have roof top which will give amazing experience to the customers as
they will be able to have access to natural environment and atmosphere. People- It includes everyone who is involved in the offering of product or service either
directly or indirectly. The Fort cafe have skilled and trained staff who shall greet and
meet customers with full enthusiasm and professional deal with them. The staff is also
trained to manage the technologies (equipment) to offer best experience to all.

 Process- It is the process which affect the performance of the business (Sigcha and et. al.,
2020). The Fort cafe shall serve the customer through physical outlet and online also in
order to ensure best experience to the customers.
Market growth strategy- Ansoff model.
This is a tool which is used by the businesses to analyse and plan their strategies for the
growth. It has four types of strategies through which the product or market can be expanded by
the companies. In context to Fort cafe, the four strategies are discussed below, out of which the
business shall select one to grow its market. Market penetration- Under this, the company uses its existing product in the existing
market. The aim of the business in this strategy is to expand its market share with this
strategy. Product development- Under this, a new product is developed which is offered in the
existing market. It is mainly used by the companies when they have strong understanding
of the current market and are able to come up with innovative solutions to meet the needs
of an existing market (Teoli and An, 2019). Market development- Here the businesses enter the new market with the existing
product. Here the main aim of the company is to expand its geographical region or
customer segment. The business is mainly expanded into the new market.
 Diversification- Under this, the business enter the new market with the new product. This
strategy is the most risky one as owner does not have knowledge of the customer
preference and market so it makes the strategy risky (Cui, Allan and Lin, 2019).
The Fort cafe shall opt for diversification as it is coming up with a new business. It has
new product and the new market where it is launching its business venture. This strategy is
highly risky as there is knowledge of the market either internally and externally. This strategy is
best for the Fort cafe.
Resources required for the venture including the source of finance.
An start-up business require large amount of resources in funding the organisation and
needs proper allocation of the resources. A choice of funding will help the business to achieve
high profit and sustainability in the product. There are various resource which are required for
Fort Cafe.

 Human resources: In establishing a new business. It is required to have the skilled and
potential employees in the organisation that can do their business activity in an effective
manner. Human resource can be acquired by recruiting with the internal and external
sources and then selecting the potential candidate for the business. These are the
backbone of any business (Ndofirepi, Farinloye and Mogaji, 2020). Without contribution
of employees in the organisation, A business can not run properly in an effective manner.
Hence it is concluded that hiring the potential candidate in the business will help in
smooth running of business and leads the business to grow in large market. Fort cafe also
need the work force to establish a strong business.
 Financial resources: These are the monetary resources which help the business to grow
and build and execute the business in a right direction. These can be bank loan by giving
some security or take bank loan on agreed interest rate. This will help in purchasing the
assets of the business and managing all the operations of the business. Business will be
funded by personal saving of the owner and these savings are the best financial support
without interest rate and security (Lahtinen, Dietrich and Rundle-Thiele, 2020). This will
leads to increase the capital of the business and create good brand image that the business
is financially strong and have not any liability or loan to be paid to the bank.
Risk analysis and how those risks will be treated
Risk analysis is the process of analysing the current situation of the business and what
can be the consequences of that business in the internal and the external environment. Risk can
be measured by various approaches which include quantitative and qualitative approaches. there
are five stage of risk analysis that is explained below:
Step 1: Identify the hazards
This can be analysed by keeping eye on business about the business operation and
ask with the other people for the problem and use various guidelines to solve the hazards in the
business and use them in the business. A manger should check the production process and
identify the hazards of business. A business should analyse the long them hazards that includes
harmful substance and level of noise.
Step 2: Decide who might be harmed and how
After identifying the risk, the next step is evaluating the factors that is harming the
business (Dawes, 2018). Always remember the some workers have specific requirement in the

business and It is necessary to check the level of work and them assign them. It can be solve by
proper evaluate the factors of creating risk in the Fort cafe, that will help in getting good
outcome.
Step 3: Evaluate the risks and decide on precautions
After analysing the factors of risk, the manager of cafe should evaluate the factor that hoe
it can be solved and what are the ways that business will overcome from the risk and then decide
the right method to solve the problem that create the risk in the business and leads the Fort cafe
to slowdown (Gardiner and Scott, 2018)..
Step 4: Record the findings and implement them
After evaluating the risk and deciding the methods to solve the problem. The manager
should evaluate the findings and the source from where the problem is getting solved and
measured and then after full surveying the risk then implement the factors that help in solving the
risk in business that will leads to easy conducting of business. This will help the Fort Cafe to
implement the business in a right approach.
Step 5: Review your risk assessment and update if necessary
This is the last step of the risk analysis in which business has to review all the step which
is done in solving the risk and evaluate each factor and can make change if It is necessary in the
process with the motive of managing the risk (Schawel and Billing, 2018).

CONCLUSION
It is concluded from the above report that the proposed business fort cafe will have the
opportunities in the market. It is analysed that this business is futuristic and wants to expand their
business. This report analyse the internal and external environment for the cafe and after
analysing. It can be said that Business will grow in future and earn maximum profit. The
proposed business offerers multi cuisine food with the silver service and pricing strategy will be
nominal with the consideration of personal income of the population. Further more, It also
analysed the competitors in the market and the right strategies to compete with the revivals and
sustain in the market.

REFERENCES
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