Skills and Capabilities for Launching a New Venture

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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