Skills and Capabilities for Launching a New Venture

This document discusses the skills and capabilities required for launching a new venture, specifically focusing on the fast food venture 'The Food Addict'. It covers topics such as financial management, sales and marketing, communication, leadership, planning and project management, and delegation and time management. The document also provides insights on how these skills can be acquired or developed.

ENTREPRENEURSHIP
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Identify and explain the new venture specifying its target market and drawing a
competitive analysis of the venture, “The Food Addict”............................................................3
P2 Explain the various types of tangible and intangible resources that will be required by the
venture during the launch............................................................................................................5
P3 Prepare a credible report for launching a new venture..........................................................6
TASK 2............................................................................................................................................7
P4 Analyse the skills and capabilities that are required while launching a new venture. Also
explain how they can be acquired or developed........................................................................7
TASK 3............................................................................................................................................9
P5 Explain the different promotional activities and channels that can support a venture during
the launch....................................................................................................................................9
P6 Analyse the appropriate promotional activity plan for the launch as well as pre launch of
“The Food Addict” fast food Venture......................................................................................10
TASK 4..........................................................................................................................................11
P7 Draft a monthly analysis of the pre launch stage of the venture along with the phase of 12-
18 months after the launch. ......................................................................................................11
P8 Identify the suitable legal forms that can be adopted by the venture along with the reasons.
...................................................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Entrepreneurship is referred to establishing of a business in an innovative way with an
aim to earn profit it side by side involves financial risk. It is basically an ability of setting up of
business by developing, organizing and operating it with an aim to earn profits in long run. There
are basically four types of entrepreneur businesses such as small business entrepreneurship,
scalable start ups, large scale entrepreneurial businesses and Social entrepreneurship businesses.
Social Entrepreneurship focuses on the production of product and services that foster the social
needs and issues. An entrepreneurship is defined as starting up a venture which involves high
amount of risk. Innovation and creativity is also a part of Entrepreneurship which differentiates
the products and service of the venture from its competitors. An Entrepreneur must possess the
qualities of leadership and vision. The entrepreneur must be open minded and must be flexible in
order to adapt to the changes of the environment effectively and efficiently. An entrepreneur
must be thorough with the products and services which they deal with. Venture is referred to as a
business which involves a high amount of risk with an aim to earn profit (Aldrich, 2017).
The study revolves around the formation of a business plan in order to demonstrate the
vision of the entrepreneur to the investors. The study focuses on the analysis of a venture which
is basically a restaurant venture named as “The Food Addict”. The study is about the various
factors which affect the operation of the venture (Alvarez, and Barney, 2020).
TASK 1
P1 Identify and explain the new venture specifying its target market and drawing a competitive
analysis of the venture, “The Food Addict”
“The Food Addict” is a restaurant venture which deals in Dining and takeaways. It
operates as a fast food chain and offers a wide variety of Italian and American cuisines in its
outlets in London. The target market of a business is referred to a specific segment of the market.
The market is determined on the basis of age, gender, income and geographical location. The
target market of “The Food Addict” is specifically the people of age group between 15 years and
35 years. The reasons for focussing on the specific segment are that the location of the restaurant
is densely populated by the specified age group. Moreover the particular age group is more
active in visiting the fast food restaurant which will increase the footfall at the venture place.
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The competitive analysis of “the Food Addict” venture plays a crucial role in ascertaining
the competition for the venture in an industry (Ateljevic and Page eds., 2017). The competitive
analysis is for “The Food Addict” according to the Porter's five forces model is described below-
 Rivalry among the competitors: The rivalry among the competitors is high in the fast
food chain industry. The reasons behind the high competition for the Food Addict is that
there are various options for the customers to choose from. The next reason for high
competition is that lowering nth prices leads to price wars among the rivals in the
industry. The substitutes are easily available for the venture in the market which increases
the competition in the industry. When it comes to food industry, the focus is more on the
performance according to the availability of the products among the players in the
industry. The advertising strategies also affect the rivalry in the industry. Also, the
ventures in the industry aim at capturing the market share by adapting to the growth
strategies, introducing new products etc. lead to increase in the competition (Burton,
Sørensen and Dobrev, 2016).
 Threat of New entrants in the market: The threats of the new entrants in the market is
less as the there are advantages of the large food chains due to the low cost of buying,
they already have an established name. The large food chains have pre established
supplier for the specialized product already and have have been established in the prime
locations which have high footfall and hence the threat of the new entrants is less. Also
the another reason for low risk of new entrant is that the competitors of new entrants are
already well established. They have a benefit of customer loyalty.
 Threat from substitute product: The threat from substitute product is quite high for
“The food Addict” as it increases the pressure on the venture. The reason behind the
threat is that there are many substitutes for the restaurant and the customers who prefer
full meals are always a threat for the fast food restaurants. Also the restaurants which
offer traditional and proper sitting act as a threat to the venture. The ready to cook meals
available at the grocery stores is a threat which might reduce the footfall in the restaurant.
At present there are many buyers and sellers in the industry which makes it difficult to
capture the majority shares in the market of the industry for “The Food Addict”. The
venture must continue to stand out in the market in order to keep ahead of the market
condition.
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 Bargaining power of the supplier: The bargaining power and competitive pressure is
high for the venture “The Food Addict”. The supplier who will support the rivals of the
venture will rule over the prices and availability of the commodity. As companies and
suppliers go hand in hand or it can said that they are complimentary to each other, they
can benefit both with the help of on time deliveries and reduced costs (Blundel, Lockett
and Wang, 2017).
 Bargaining power of the Buyer: The food Addict venture will pressure from the buyer's
power. There are many fast food chains in the market already and also the switching cost
is low and hence this insists the venture to keep the prices low and offer them incentives
as well. This phenomena gives power in the hands of the customers. The fast food chains
operate as an open book and hence any changes which occur in the venture will affect the
market of the competitors.
P2 Explain the various types of tangible and intangible resources that will be required by the
venture during the launch.
There will be requirement of various tangible and intangible resources during the launch
of the venture. Tangible and intangible assets form a major part of the asset for the venture “The
Food Addict.” Tangible assets are those assets which have a physical existence in an
organization. These assets are very often purchased in exchange of money to invest in the
business whereas the intangible assets are those which do not have a physical existence in the
business but tits presence can be felt and benefits the business as a market value. The various
tangible and intangible assets required during launching the venture “The food Addict” are
following-
A. Tangible Resources
 Land and Building- The most prominent assets or resources when it comes to launching
of a business venture is the land and building as they represent a physical existence of a
venture. So in order to launch the fast food venture “the Food Addict” it will be required
to have a land and building (Fortunato and Alter, 2015).
 Finances- In order to launch a venture, every business is requires to have money as cash.
The finances play a major role in the launching and operation of a business. Hence the
launch of “the Food Addict” will require to arrange for financial resources as they would
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help in gathering other resources. The venture can gather finance from various sources
like loans, partnership and government.
 Human resources- The Food Addict venture will require human resources which is the
most important resource or asset for the organization. All the other resources are useless
in the absence of human resource. The venture can allocate the resource by accurately
predicting the man power demands in the organization (Hjorth, Holt and Steyaert, 2015).
 Furnitures and fixtures- The another tangible resource requires during the launch of the
Venture are furnitures and fixtures. The furnitures and fixtures will facilitate to attract the
customers by the fascinating interiors. The furnitures are requires for addressing the
customers at the restaurant.
B. Intangible Resources
 Goodwill- Goodwill is referred to the image of the organization in the market. The
positive image is considered as goodwill which directly benefits the venture by
promoting them within the industry. Hence “The Food Addict” will require to increase
the goodwill of their venture.
 Trademark- Trademark is a legal safeguard for an organization to safeguard them
against copying of their brand name, logo or the items.
 Patent- Patent is referred to an intangible asset that gives right to the organization for
selling a specific product or service in the market. The venture “The Food Addict” can
either buy the patent from another business entity or can sell it to another as well.
 Copyright- The copyright grants a legal right against the reproduction of their product or
service without permission. The Copyright can help “The Food Addict” in safeguarding
them from the imitation of their product.
P3 Prepare a credible report for launching a new venture.
Th proposal of a credible report is as follows-
 Executive summary- “The Food Addict” is going to establish its fast food chain in
London in order to attract customers with its divine taste (Korsgaard, Müller and Tanvig,
2015).
 Challenges- People have become health conscious and avoid fast food in the present
scenario which can act as a challenge for the venture.
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 Company and product description- “The Food Addict” is a restaurant venture which
deals in Dining and takeaways. It operates as a fast food chain and offers a wide variety
of Italian and American cuisines in its outlets in London.
 Financial projection- In order to launch a venture, every business is requires to have
money as cash. The finances play a major role in the launching and operation of a
business. Hence the launch of “the Food Addict” will require to arrange for financial
resources as they would help in gathering other resources (Kuratko and Morris, 2018).
 Benchmarking- Benchmarking related to showing a comparison between the standard
goal and the actual performance. Benchmarking facilitates achieving the actual targets of
the organization.
TASK 2
P4 Analyse the skills and capabilities that are required while launching a new venture. Also
explain how they can be acquired or developed.
The various skills which are required to launch the fast food venture, “The Food Addict”
are as follows-
 Financial Management- The skills of financial management is very important in order to
manage the finances of the new venture. If the business lacks the skill of managing the
finances then it will be a reason for the downfall of the organization. These skills can be
acquired through education and short term courses.
 Sales, Marketing and Customer services- The skills of sales, marketing and customers
services play a major role in operation of the business in an effective and efficient
manner. Sales and marketing skills are crucial in order to convince customers and
increase their product sales. The skills of customer services play a crucial role in
addressing the customers. These skills can be acquired with the help of training
procedures (Kuratko, Morris and Schindehutte, 2015).
 Communication and bargaining- Communication is the most important skill required in
the launch of new venture. The communication is very important in passing the
information from one person to another. The communication helps in negotiating with the
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customers, investors, employees and suppliers. These can be acquired from peers,
colleagues, lecturers, workshops, regular reading etc.
 Leadership Skills- Leadership is a key skill when approaching individuals for hiring.
These skills help in maintaining the positive aura of the organization as these people
motivate others in order to increase their productivity. Hence this skill is very crucial
while launching a venture. The leadership skills can again be acquired through peers or
even the personality development course available (Liang, Wang and Lazear, 2018.).
 Planning and project management- When a business or venture is launched, there are
variety of tasks or projects that need to be performed. These tasks include setting up of
websites, maintenance of premises, development of policies and procedures. These are
very important in order to achieve goals and manage resources. The skills of planning
and project management can be acquired through peers, colleagues, training procedures
etc.
 Delegation and time management skills- Delegation and time management skills are very
crucial. Delegation refers to reducing the burden of task from superior and sharing it
equally to others. Delegating the task can lead to increase in effectiveness and efficiency
of the work. It also enhances the time management skills at the venture. These skills can
be acquired through seniors, lecturers, peers etc.
 Networking skills- Networking skills play a key role while establishing a business or a
venture. The networking skills help in expansion and growth with the help of building
new relations. This provides support to the business venture and enhances the
performance. The networking skills can be acquired through peers, colleagues, superiors
etc.
 Problem Solving skills- The venture is bound to face problems or challenges despite of
the fact that they are planned well. Hence it is very important for the venture to possess
problem solving skills. These skills can again be acquired through peers, superiors,
colleagues and also experiences.
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TASK 3
P5 Explain the different promotional activities and channels that can support a venture during the
launch.
There are various promotional activities which can be adopted by the venture, “The Food
Addict”. The promotional activities help in convincing and attracting customers in order to get
noticed and out stand from their competitors. The promotional activities help in communicating
the information to their potential customers and access the marketing needs. The promotional
activities which can be adopted by “The Food Addict” are following-
 Advertisement- Advertisement is a marketing promotional technique which helps in
promoting the product and the services of the venture with the help of print media (like
advertising in newspapers), television advertisements, radio advertisements, magazines,
outdoor advertisement. This will help in attracting the customers towards the new fast
food venture (Maritz and Donovan, 2015).
 Direct Marketing- Direct marketing deals with addressing the customer directly in order
to advertise the venture with the help of sending personalised messages, letters,
pamphlets, e mails and brochures. This activity will help in attracting customers and
promoting footfall at the fast food venture.
 Sales promotion- Sales promotion is also a promotional technique which can be utilised
by the venture, “The Food Addict”. The sales promotion techniques refer to marketing
the products and services by organizing different activities like contests, inviting
customers for lucky draw coupons and various competitions.
 Mouth publicity- The mouth publicity relates to the promotion of the products and
services of the venture “The Food Addict” through the person to person. This facilitates
public relations as it is basically a communication of person to another person related to
the experiences of the products and services (Morris, 2015).
 Online marketing- Online marketing is a promotional activity which helps in promoting
the venture through an online platform. This is a cost effective mode which attracts
customers to visit the fast food venture. This will help “The Food Addict” in promoting
their venture through blogs or social media platforms.
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P6 Analyse the appropriate promotional activity plan for the launch as well as pre launch of “The
Food Addict” fast food Venture.
The pre launch process refers to the promotional activity which takes place before the
launch of the venture in the market. Pre launch marketing has two primary goals which are-
Building the customer interest and enthusiasm for future project and pre planning the future
marketing techniques and channels for the venture. The activity plan for “The food Addict” is
explained below-
 The first step in the pre launch activity plan is to build a generation leading pre launch
landing page.
 The next step is to build and enhance interest among the subscribers of the page.
 The third step of pre launch activity is to identify and engage the influencers who will
help the venture.
 After the engagement process the next step must be to draft the calender relate to
activities that will take place.
 The next step in the pre launch activity is to segment the audience of the market with the
help of Facebook advertising campaigns and on site analytics (Olanrewaju and et.al.,
2020).
The product launch is a summary of ideas, activities and processes that is used by a
business venture to introduce the product in the market. The activity plan for the Launch process
that can be utilised by “The Food Addict” is as follows-
 The first step is to figure out the intent of the business. This involves introducing the
marketing strategies related to the venture “ The Food addict”.
 The next step in the launch process is to identify the potential audience that will be
targetted by the business venture.
 The next step after identifying the potential customer is to know the competitors and
draw an analysis of the competitive strategy.
 The next step is to identify the brand positioning of the venture. This can turn into a
strong competitive benefit to the venture.
 After the product is launched and it hits the market, a test or research can be conducted
in order to receive feedbacks from the customers or the consumers of the venture.
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TASK 4
P7 Draft a monthly analysis of the pre launch stage of the venture along with the phase of 12-18
months after the launch.
Cash budget is referred to a document which allows the venture to take important
decisions related to future on the basis of their financial strength. Cash budget consists of data
related to the inflow and outflow of money or the finances for a given period (Pollman and
Barry, 2016). The monthly analysis of the food venture for the pre launch stage as well as launch
phase is as follows-
Month month 1 month 2 month 3
INCOME
Cash Sales 18,000.00 20,070.00 22,378.05
Credit Sales 8,500.00 9,477.50 10,567.41
Business Loans 1,00,000.00
Income from other
sources 5,500.00 6,132.50 6,837.74
Opening balance 0.00
Total £1,32,000.00 £35,680.00 £39,783.20
Cash Purchases 10,500.00 9,500.00 9,900.00
Stock 4,700.00 4,700.00 4,700.00
Drawings 1,300.00 1,450.00 1,990.00
Wages/Sub Con. 6,000.00 6,500.00 6,800.00
Rent 6,500.00 6,500.00 6,500.00
Rates 850.00 870.00 920.00
Light/Heat/Power 1,050.00 1,050.00 1,050.00
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Telephone / Mobile /
Broadband 250.00 250.00 250.00
Stationery & Post 250.00 250.00 250.00
Insurance PL 3,500.00
Advertising & Marketing 750.00 750.00 750.00
Repairs/Renewable 1,120.00 1,120.00 1,120.00
Motor & Travel 3,700.00 3,700.00 3,700.00
Consumables- 1,100.00 1,265.00 1,454.75
Accountancy 4,500.00 4,500.00 4,500.00
Loan Repayments 4,000.00 4,000.00 4,000.00
Miscellaneous 90.00 100.00 80.00
Tools & Equipment
(Capital Items) 95,000.00
Total £1,41,660.00 £46,505.00 £51,464.75
Surplus/Deficit £0.00 -£9,660.00 -£10,825.00 -£11,681.55
Balance @ Start £0.00 £0.00 -£9,660.00 -£20,485.00
Balance @ End £0.00 -£9,660.00 -£20,485.00 -£32,166.55
month 4 month 5 month 6 month 7 month 8
24,951.53 27,820.95 31,020.36 34,587.70 38,565.29
11,782.66 13,137.67 14,648.50 16,333.08 18,211.39
7,624.08 8,500.85 9,478.44 10,568.46 11,783.84
£44,358.27 £49,459.47 £55,147.31 £61,489.25 £68,560.51
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9,300.00 8,300.00
4,700.00 4,700.00
850.00 1,750.00
6,900.00 7,200.00 7,100.00 7,900.00 7,800.00
7,000.00 7,000.00 7,000.00 7,500.00 7,500.00
910.00 820.00 800.00 800.00 800.00
1,050.00 1,250.00 1,150.00 1,150.00 1,240.00
300.00 300.00 450.00 450.00 300.00
300.00 300.00 300.00 350.00 350.00
3,500.00
800.00 800.00 800.00 950.00 950.00
1,120.00 1,120.00 1,120.00 1,120.00 1,120.00
4,000.00 4,000.00 4,000.00 4,000.00 4,000.00
1,672.96 1,923.91 2,212.49 2,544.37 2,926.02
4,500.00 4,500.00 4,500.00 4,500.00 4,500.00
4,000.00 4,000.00 4,000.00 4,000.00 4,000.00
120.00 140.00 200.00 120.00 150.00
10,000.00
£47,522.96 £48,103.91 £33,632.49 £48,884.37 £35,636.02
-£3,164.69 £1,355.56 £21,514.81 £12,604.88 £32,924.49
-£32,166.55 -£35,331.24 -£33,975.68 -£12,460.87 £144.01
-£35,331.24 -£33,975.68 -£12,460.87 £144.01 £33,068.50
month 9 month 10 month 11 month 12 Total
43,000.30 47,945.33 53,459.04 59,606.83 4,21,405.38
20,305.70 22,640.85 25,244.55 28,147.67 1,98,996.98
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1,00,000.00
13,138.98 14,649.96 16,334.71 18,213.20 1,28,762.75
0.00
0.00
£76,444.97 £85,236.14 £95,038.30 £1,05,967.70 £8,49,165.12
47,500.00
23,500.00
7,340.00
7,450.00 8,300.00 7,150.00 8,200.00 87,300.00
7,500.00 8,000.00 8,000.00 8,000.00 87,000.00
950.00 950.00 1,000.00 1,150.00 10,820.00
1,450.00 1,450.00 1,800.00 1,900.00 15,590.00
250.00 200.00 400.00 200.00 3,600.00
350.00 400.00 400.00 400.00 3,900.00
3,500.00 10,500.00
950.00 1,000.00 1,000.00 1,000.00 10,500.00
1,120.00 1,200.00 1,200.00 1,200.00 13,680.00
4,000.00 4,000.00 4,000.00 4,000.00 47,100.00
3,364.93 3,869.66 4,450.11 5,117.63 31,901.83
4,500.00 4,500.00 4,500.00 4,500.00 54,000.00
4,000.00 4,000.00 4,000.00 4,000.00 48,000.00
190.00 150.00 150.00 200.00 1,690.00
1,05,000.00
£36,074.93 £41,519.66 £38,050.11 £39,867.63 £6,08,921.83
£40,370.05 £43,716.48 £56,988.18 £66,100.07 £2,40,243.28
£33,068.50 £73,438.55 £1,17,155.03 £1,74,143.21
£73,438.55 £1,17,155.03 £1,74,143.21 £2,40,243.28
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P8 Identify the suitable legal forms that can be adopted by the venture along with the reasons.
There are various legal forms of businesses that can be adopted by a venture. The forms
of ventures are described below-
 Sole proprietorship: Sole proprietorship is among the most popular categories of
business venture. This type of venture is owned and operated by a single person. Under
this category, the profits and losses are bearded by a single person only. The sole
partnership facilitates easy tax filing and reduced corporate formalities.
 Company: Company is referred to a separate legal entity which has a common seal. It is
formed by a written agreement between the individuals. This business structure offers
various taxation benefits and has a clear distinction between its owners and company. It
is a hybrid organization which is combination of the characteristics of sole proprietorship
and partnership (Zhang and Cueto, 2017).
 Partnership firm: The business structure which is owned and operated by two or more
individuals and operated on the basis of a partnership deed. The individuals who operate
the business together are termed as partners. Each partner contributes in terms of labour,
money and skills. The profit and losses both are shared by each partner in a pre
determined ratio.
The legal forms of venture that can be adopted by the “The Food Addict” are either 'Sole
proprietorship' or the 'Partnership'. Any of the two can be adopted by the fast food business
venture depending upon the each of their characteristics and the requirements of the venture
(Wadhwani and et.al., 2020).
CONCLUSION
It can be concluded from the above report that operating a business and preparing a
business plan is a very hectic task. There are various types of ventures which can be opted from
to establish a venture. The report involves a study of the business venture which deals in fast
food. The various pre launch and launch activities area also explained in the study.
15

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