Entrepreneurship and Business Development

This document explores the concepts of entrepreneurship and business development. It covers topics such as launching a business, market analysis, marketing strategies, and more. The document provides insights into the rationale for launching a business, macro/micro analysis of the market, competitor analysis, segmentation analysis, marketing strategy, and market growth strategy. It also discusses the resources required for the venture, risk analysis, and concludes with a summary and references.

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 a business conduct in which an individual set up its business by planning
accompanied with limited resources and takes into account all risks and rewards earned. This
conduct involves the development of business venture by evolving new product in the market.
The main aim of this conduct is to achieve high return by equally enjoying the uncertainty.
Whereas, business development led to the formation of strategies, ideas, innovations and other
related activities in order to make business effective and efficient. Thus, developers should be
aware of changing environment and new opportunities in the marketplace. The process involved
in the business development help to achieve profits for long term along with growth and success
(Iacob and Hristache, 2017). The report examines the business plan in respect of new business
venture followed by mission and vision statement. Also appropriate model is used to analysis the
competitive market which includes STP strategy and Marketing tool. Further sources of fund
along with risk analysis is also conducted below.
MAIN BODY
The rationale for launching the business and its vision and mission
The business plan proposed is a new cafe which will be named as Cafe above Clouds. It
will give the experience of hot air balloon. The customer will enjoy their meal in air along with
landscape scenes and beauty of London. As the city of London need to be appreciated from the
sky. The prime area of cafe will be near the river Thames in London, United Kingdom. The
experienced pilots will give the memorable flight of air balloon along with variety of dishes
which will be served to customers. The cafe will be multi cuisine involving numerous dishes that
will give customer a happening joy. The location near holy river Thames will be the place from
where the customer will begin their experience. The small cafe will also be set up on the location
for people to wait for their chance and to enjoy the view. Further other activities like boating,
fishing will also be provided to customer in order to make their experience valuable.
Mission
The mission of this cafe is to provide moment of life experience to customer along with
the proper safety. The cafe also aims to attract customers in order to achieve the desired goals
effectively and efficiently (Petrakis, 2020).
Vision
The vision is to build a customer oriented business and to attain sustainability in the
market by providing valuable experience accompanied by quality services.

Macro/micro analysis of the market place- PESTLE Analysis.
The external environment can be analysed with the help of PESTLE mode of analysis
(Mosbah and et. al., 2020). The model is the acronym of factors Political, Economic, Social,
Technology, Legal and Environmental/Ecological. In context of Cafe above Clouds, PESTLE
analysis is shown below:- Political- The Cafe above Clouds must adhere with the policies and regulations
formulated by the government. Tax reforms and health regulations must be strictly
adhered. The café need to be updated with the regulations in order to sustain in the
market. Economic- There are many economic factors which affects the working of the
organisation. The most important factor are health and inflation in the economy. The cafe
need to employ limited employees in order to maintain minimum wage. Further health
factor need to be determined strictly in this situation of pandemic. The factors need to be
updated to achieve the organisational goals effectively. Social- The changing trends and needs of the customers such as increase in the
consumption of organic food etc. Such needs to be taken care of in setting food menu.
The aim of the cafe is to attract new customer by satisfying their needs. Further the cafe
values the local culture of customers. Technological- The Cafe above Clouds encourages the pace of technology rather than
relying on old approaches. The cafe ensures the customer instant access to menu by
scanning the QR code. Further enables the customer to order instantly. These touch less
menu will help to avoid the spread of Coronavirus. Also will help in increasing the
market share for the business (Öz, 2019). Legal: The Cafe above Clouds is required to follow the regulations formed by
government especially in respect of health and safety and others in order to avoid legal
consequences. For example Liquor licensing etc. Environmental- The Cafe above Clouds must encourage the environment in order to
create positive image in the market. Using biodegradable packaging for food packing
instead of plastic. The pollution level need to be checked while flying hot air balloon.
These environmental regulations need to be compliance to attain growth and success for
long term.

Micro analysis- SWOT
SWOT Model is used to analysis the strength, weakness, opportunity and threat of a
business in order to derive its sustainability and competitive advantage in the market (Fox,
2018). This analysis is used to derive positive and negative impact along with market position in
respect of cafe, which is illustrated below:-

Strength
 The major strength of the company is
its unique experience of enjoying meal.
The restaurant offering air experience
is ne innovation thus causes monopoly
in the marketplace.
 The prestige brand image formed by its
unique feature is its greatest strength.
 Another strength is the audience
mostly the new experience will attract
young generation and even the middle
age because of its multi cuisine food.
Weakness
 The cafe weakness is its air experience.
People will not easily take risk.
 The main negative image is its prestige
image as it may cause a division in
society.
 The limited hot air balloons and
experienced pilots are one of the major
drawback.
 Another is its multi cuisine food which
fails to distinct with other cafes and
restaurants.
 The Cafe is not yet familiar with the
local culture of the customers which is
its weakness.
Opportunity
 The opportunity for the business is to
attract more customers by encouraging
eco-friendly concept and by adding
more adventures activities for the
customers waiting for their turn.
 The Cafe is required to add traditional
food which is not easily available in the
city in order to attract the potential
customers.
Threat
 The competition arises when the other
offers the same.
 Trust and loyalty issue may arise
because of new concept in the market.
 The trendy and changing market needs
and demands can also create threat for
the cafe (Hossain and et. al., 2019).
Competitor analysis and highlight the competitive advantage- Porters' five forces.
Porter’s Five Forces is used to analysis the competitive environment. It helps the
organization to sustain in the competitive market. Further it determines the intensity of market.
The forces determining the sustainability of café in the market are discussed below:- Bargaining power of supplier- This force determines the supplier’s power to drive up the
prices. In context to the Cafe above Clouds, the power of this force is high as the sky
Cafe is a newly launched and unique business which have a limited number of suppliers
and investors. Thus, the café need to build efficient chain in supply management. Bargaining power of buyer- This force determines the power in the hands of buyers. In
context to Cafe above Clouds, the power of this force is moderate as the cafe enables
fixed price for the products and services it offers. The cafe ensures high quality products
and services along with high safety which gives less switching chance to buyers.

 Threat of substitute- This force focuses on the availability of substitutes which means
resembling products or services in the market (Grill, 2019). This increases the influence
power of customer to switch on to the other alternative offering same product or service
at reasonable price. For Cafe above Clouds, the power of this force is low where the
customers will experience the unique feature of having meal accompanied by beautiful
scenery views. This uniqueness will help to lower the switching cost as the valuable
experience can only be enjoyed by visiting this cafe. Threat of new entry- This force focuses on profitable market which enables the
entrepreneurs to enter with their new businesses. In context to Fort cafe, the power of this
force is high as opening a new café with innovative idea does not involve major
resources. Further there is no barrier in respect of entry by opening a new cafe. Thus, the
café need to innovate its products and services in order to attain competitive advantage in
the market.
 Competitive rivalry- This force describes the number of competitors along with their
capability to sustain in the market. In context to Cafe above Clouds, the power of this
force is moderate as the competitors are low in numbers. The cafe offers unique feature
which differentiate it from other businesses and thus attracts customer to try its unique
experience.
Segmentation analysis, providing market statistics (size and growth) to support your selection of
the target segment/s.
Segmentation refers to a process in which the segments to the customers are devised
according to criteria such as age, sex, income etc. (Smaliukiene and Monni, 2020). These
variables helps in determining characteristics of market and it tendency to sustain in the market.
In context to Cafe above Clouds, the market segmentation is done on the basis of demographics
and behavioral factors. The cafe is for all age groups who want to create valuable experience. For
people who do not want to experience sky meal can enjoy the small cafe near river. Further the
café attracts the customer by its unique feature. Youth audience generally attracts to these
features to experience.
Targeting is the process which involves to target the segmented customers in order to
achieve the desired goals. For Cafe above Clouds, the target market of the business is youth and
middle aged people of the age between 18- 45.

This target segment of customer is selected as the cafe provides unique feature along with
delicious food which will be mostly preferred by these generation. These segments believe in
exploring and trying new features which can be exclusively availed in the café.
Positioning involves imprinting of brand image in the minds of customers by creating
awareness. It further helps in attaining competitive advantage in the marketplace. The Cafe
above Clouds can imprint its image by using different marketing tactics such as campaigns,
digital and social media marketing in order to reach the customers (Phan, Rieger and Wang,
2019).
Marketing strategy- marketing mix analysis
Marketing mix is an effective marketing tool used in the organization to meet its
marketing objectives effectively and efficiently. It also helps in formulating marketing strategies
keeping in view the changing environment. It involves 7Ps which provides help in making
effective marketing decisions. The marketing mix tool is used to evaluate the strategies in
relation of the café, are as follows: - Product- Café above Clouds offers differentiated products and services as compared to
its competitors. The café ensures the needs and wants of its customers by offering them
good quality of food. Even the menu is served in a different way. Further the café aims to
give valuable experience to its customers. Price- It refers to the value of product or service the organization is offering. Pricing need
to be effective in order to attract customers. The pricing strategy of the café is premium
pricing so that it can provide high quality of products or services. This strategy will help
to build prestige value at initial level in respect of the product or service offered by the
café. Place- Generally it is the location from where customers can avail products or services of
the company. The experience of café can be availed near the Thames River. Further the
café also offers its food service through one click on mobile app. The café believes in
exclusive distribution of its products and services (Samani and et. al., 2017). Promotion- It is the activities which is required to be conducted in order to create
awareness in respect of its products or services to the customers. The café shall make use
of advertising including the use of newspaper and internet sources. Digital and Social
Media Marketing is the effective way to attract targeted customers. Physical evidence- It is considered as the proof of environment in respect of the products
availed or services offered. The Café above Clouds shall have hot air balloons which will

give customers amazing experience of enjoying meal in sky with scenic beauty of
London. People- Skilled work force helps the organization to gain competitive advantage in the
marketplace. The café provide experienced pilots and other work force who shall interact
properly with the customers. The work force possess effective communication skill
accompanied by knowledge in respect of services offered. Further the staff is trained in
using the safety equipment in case of casualties so as to offer valuable experience.
 Process- It refers to the activities which effects the business performance. Bookings
through online are available along with good discounts in order to attract customers.
Further customers can post their query or complaints or review on its site.
Market growth strategy- Ansoff model
This model is used by the organisation to formulate strategies in respect of market growth.
The model contains four strategies which will help the organisation to expand their distribution.
In context of the 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 focuses on increasing sales of its existing
product in the existing market. The strategy allows the business to expand in the market. Product development- Under this, the company focuses on introducing new products in
the existing market. The strategy is generally used by the company who has complete
knowledge of competitive market. Market development- This strategy focuses on entering a new market by using the
existing products. The company using this strategy aims to expand geographical
segmentation. The business is mainly expanded into the new market.
Diversification- This strategy focuses on entering into new market with the introduction of new
products or services. The strategy is the most risky as the owner lacks the knowledge of market
as well as customer needs and wants (Xu and et. al., 2018).
The Cafe above Clouds shall opt for diversification strategy as it is launching its new
business accompanied by unique features. Although the strategy is risky but the café can achieve
success and growth if it effectively fulfils the need of its customers.
Resources required for the venture including the source of finance.
A new business requires a large number of funding & resources of funding to get
initiated. The larger amount of funding will result in financial stability and chances of
gaining high profits as because it is a big start-up that means profits will be higher in

numbers. So proper and stable resourcing of funds are must for the Cafe above Clouds
project.
 Human resources: For initiating a new business and to make it more sustainable in the
competitive market, proper recruitment of employees with excellent experience and skill
work force are required for this project. Potential and experienced employees play a vital
role in daily business activities and make business more effective in gaining higher
profits. Skilled and expert employees can be recruited through various ways such as
online ads, print ads or recruitment agencies, at initial stage. Before hiring or recruiting
employees in the business, it is must to distribute the departments or tasks in groups
according to their skills and further area of expertise required must be detailed noted.
Thus, led to efficiency in the company in order to achieve the desired goals.
Financial resources: The monetary resources by showing right path helps the organization to
grow effectively and efficiently (Shortridge, Aven and Guikema, 2017). There are many methods
for raising financial resources. Most of the common and effective method to raise fund is through
bank loan at an agreed rate of interest. An appropriate and sufficient security need to be given in
exchange of bank loan. This mode of funding will provide great help in purchasing assets of the
café. Further the best way to finance without interest is the capital or savings provided by the
owner. Such funding will increase the goodwill and devise strong brand image in the minds of
stakeholders.
Risk analysis and how those risks will be treated
Risk analysis is the process of analyzing the uncertainty or unforeseen events in the
business environment accompanied by effective course of actions. The analysis identify the risk
along with the measures and also helps in mitigating contingencies occurred during the course of
business. There are two approaches to analysis risk-
 Qualitative Approach
 Quantitative Approach
Further there are five stages of risk analysis that is explained below:-
Step 1: Identifying the risks
General way to analysis risk is by operating business in a keen manner and using
proper guidelines to eliminate risk. The manager is required to keep a check on business by
identifying risk which he/she suspects. A business should analyse the long term risks that
includes any safety factors.

Step 2: Decide who might be harmed and how
The next step is the evaluation of factors which causes or will cause harm to the business.
Proper evaluation led to effective business accompanied by better performance. The café need to
evaluate risk in conducting its business activities (Sisti and et. al., 2018).
Step 3: Evaluate the risks and decide on precautions
After risk gets evaluated, the management is required to formulate effective course of
actions in order to cope up with the risk. The café need to devise proper guidelines and
precautions before taking the experience of hot air balloon.
Step 4: Record the findings and implement them
The major task is to examine the risks which are coped and further implement the other
factors that will cause the easy conduct of business activities. This will help the café to
implement right business strategies in an effective manner.
Step 5: Review your risk assessment and update if necessary
This is the ultimate step which led the business to review above analysis whether it is
conducted effectively, and if not either to switch on to next alternative or update the former if
seems necessary.

CONCLUSION
It is concluded from the above report that proposed café will create new opportunities in
the marketplace. The report examined the internal and external factors influencing the business
environment. Further appropriate marketing tool is used to attain sustainability in the competitive
market. Also appropriate model is used to analysis the micro and macro environment effectively
and efficiently. The risk analysis is also done above to help the café to cope up in the situation of
loss or contingencies. Thus, the above report provides the idea of formulating effective strategies
and plans in order to achieve the desired goals for long term.

REFERENCES
Books and Journals
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Business Management. Annals of the University Dunarea de Jos of Galati: Fascicle:
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Mosbah and et. al., 2020. The influence of length of stay on immigrant
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Öz, Ö., 2019. The Competitive Advantage of Nations: The Case of Turkey: Assessing Porter's
Framework for National Advantage. Routledge.
Petrakis, P.E., 2020. Entrepreneurship. In Theoretical Approaches to Economic Growth and
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Phan, T.C., Rieger, M.O. and Wang, M., 2019. Segmentation of financial clients by attitudes and
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