Introduction to Business Report

This report analyzes the business plan of Spark and Shine, a new training center for unemployed individuals in Edinburgh. It examines the business structure, target market, marketing strategy, and human resource management. The report also includes a discussion of the 4Ps of marketing and the potential for future expansion. Desklib provides past papers and solved assignments for students.

Introduction to Business

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1.1 Business Types......................................................................................................................1
1.2 Research.................................................................................................................................2
PART 2............................................................................................................................................3
2.1 McCarty's 4Ps application.....................................................................................................3
2.2 Employees / Staff...................................................................................................................5
2.3 Consumers/ Client.................................................................................................................6
PART 3............................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business considered as an organisation or economic system where goods and services are
exchanged for another or for money. Each business is set up based on an innovative idea and that
idea become a business plan after analysis of various factors that affects business activities (Aral,
Dellarocas and Godes, 2013). In this project report to understand how a business is introduce in
the competitive a business plan of training centre for unemployed is established named as Spark
and Shine training centre. This is a new business venture that is going to be established in
Edinburgh. A description regarding services and USP of the organisation and formation of
business structure and 4 Ps is included in this report. Role of human beings and promotions in
business is added to this project report.
PART 1
A new business named as Spark and Shine is established that will provide training to
unemployed to develop their skills and help in getting them most suitable job. This training
centre is inspired by increasing number of unemployed who are educated but lacking that one
skill that makes them unemployed. Services that are provided by Spark and Shine training centre
is educating and generating skills in each individual as per their requirements. Unique Selling
Point of Spark and Shine Company is to provide skills and training to unemployed individuals as
per their requirements (Baden-Fuller and Mangematin, 2013). Together with this each individual
gets personal attention to get personality development.
1.1 Business Types
Sole Proprietorship: When a business is owned and operated by one individual or a
married couple is known as sole proprietor. This is the simplest form of business. ledability is
one of the sole proprietorship organisation that provides payroll services in the UK.
 Benefits: Its simple to form and operate as it does not require much legal formalities and
also gives the tax benefit to the owner.
General Partnership: When two or more people come together to share their resources
and to work as a single party is known as Partnership.
 Benefits: When there is more than one owner the ability to raise funds increases.
Corporation: A corporation is a legal entity separate from those who mange and control
it, created by the individuals who offer the capital. FLAG cooperation is one of the
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organisational type in the UK. Cooperation is organized differently in England, Northern Ireland,
Scotland and Wales - at Regional level in Scotland and England, while Wales and Northern
Ireland leave cooperation up to the FLAGs to organize.
 Benefits: It gets easier to start the business, as there is a pooling of capital from many
investors.
Company: Business structure possess separate legal entity, formed with the aim to
earned profits, and have perceptual succession. JP Morgan, Marks and Spencer and Tesco are
some organisations that works as a multinational organisations considered as a company.
 Benefits: It have separate legal entity the owners and will be sustain for long run and
public can raise funds in the name of company when it is registered as public company.
Business of new training centre will be established as company because it has separate
legal entity, availability of funds will be more and expansion of business for company is quite4
frequent then other business forms.
1.2 Research
After conducting a primary research on the unemployment rate of UK this can be
interpreted through the following graph that after the establishment of the training centres the
rate of unemployment is deceased but it again started to grow after Oct 2018. Which shows that
there is more requirement of the training centre to reduce the unemployment rate. Following
graph shows the unemployment rate.
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Existing competitors are Knowledge Tree, Pitman Training, Pearson Professional Centre. Size of
market is Niche market that is mainly based upon cost and considered effective. By seeing the
above graph the need for the training centre is required and the demand for the same is there in
the market as we can see through the graphs that employment rate has started increasing in Jan
2019.
PART 2
2.1 McCarty's 4Ps application
Jerome McCarthy proposed 4ps of marketing. The purpose of these 4ps to provide
framework in decision making. Each element of these 4ps is important for organisation.
Spark and shine training centre needs to follow these marketing mix elements where 4ps stands
for place, price, promotion and product, which are mentioned below
Place- Place refers the area in which products and company offers services. Selection of
right place is important, because it helps a business to run smoothly without any problem. While
choosing a place it is important to identify factors which may effect a business like location' size,
age group, population, competitors etc. If a company does not choose right place that may effect
negatively. Spark and shine training centre needs to open their training centre in an area where
they can sell their services easily because training centre is important for those who wants jobs .
Therefore, organisation should open their centre in near Royal Mile, Edinburgh, EH1 2PB,
Scotland (Castlehill, Royal Mile, High Street, Canongate) in Edinburgh, because this is the right
area to start a training centre and company can sell out its services effectively.
Product/ Service- Products and services should be designed according to the customers
because customers are the person who will consume it (Blumentritt, Mathews and Marchisio,
2013). This can be done with the analyse of people's need and demand because it will help in
production of right products and services. This is an important element of marketing mix because
without this company cannot match demand of customers and supply of their products/ services.
Spark and shine training centre is a training provider institution so their services will be
accordingly (Zur, Muehlen and Recker, 2013). Installation cost and allocation cost are
considered essential to set up the training centre. The They can provide various services like skill
development, personality development and communication skills etc. These all are the services,
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which a training centre requires in itself. For example, there is a candidate in their area who is
graduate but needs to improve communication skills for jobs so that candidate may go to their
training centre to improve skills.
Pricing- Right pricing for right product is very important. Organisation needs to set the
price of products and services based on various pricing strategies in the market like pricing at
premium, pricing for market penetration, economic price and many more. Companies should
choose right pricing strategy of each product. Pricing at premium means setting the higher price
of products and services in compare to competitors. This strategy is suitable for those companies
whose products and services are unique. For example if an organisation is in market since more
then 10 years with good goodwill then they can adopt this strategy. Pricing for market
penetration means attracting the customers by keeping prices low. It is right strategy for new
companies. For example if a company just entered in the market so they needs to maintain price
low to establish in the market. Economic pricing means setting the price of products and services
low by reducing the cost of marketing or production. For example a company whose plans and
policies are effective then that company can apply this strategy because their production cost will
be low due to effective plans and policies. Spark and shine training centre can apply market
penetration strategy for pricing because company is new and it needs to maintain their pricing of
services unique. Base price of 15000 GBP subject to admission in the training centre for a
particular month. This will help company in establishing in market.
Promotion- Promotion is the last element of the marketing mix. Promotion is very
important for all organisations. It includes marketing of products by various methods like
advertisements, hoardings, events etc. There are many promotional strategies like digital
promotion, direct marketing, trend-show marketing, and social media marketing etc. All these
promotional strategies are important. Spark and shine training centre can adopt social media
marketing because it is the strategy, which is most effective among all strategies. Social
marketing means promotion of products and services through social sites. This is an effective
way to promote the products and services due to less costly, wide platform of promotion, instant
service of promotion etc. So, company can adopt this strategy because of its advantages.
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2.2 Employees / Staff
Establish a business as training centre gives rise to various jobs in the organisation that
needs to be performed by various employees appointed in the organisation. Various job roles in
Sparks and Shine training centre are as follows:
Manager: A person who keeps check on multi-pal activities that are performed in the
organisation and make sure that each task is performed on time is manager in the organisation
(Brocke and Roseann, 2014). Manager plays important role in smooth functioning of Sparks and
shine training centre. Manager appoints employees on various jobs and explain them regarding
their duties and responsibilities. They also keeps check on performance of business.
Trainers: In training centres trainers who are experienced and trained for providing
services to various individuals. Role of trainers in training centre is quite important, as trainers
only will provide core services to unemployed for their skill development. Together with this
trainer only will identify strengths and weakness of consumers. Based on which training will be
provided to them that will help in skills and personality development for getting desired job.
Receptionist: This job profile is quite important for training institutes because when
interested consumers requires any information regarding training programmes then they will get
this information from reception only. Role of person employed at reception is to provide
necessary and correct information that is required to attract more and more consumers and retain
each visitor in the organisation to avail services.
Zero hour contract is a type of contract entered by employer and employee in which
employer is not obliged to provide any minimum working hours (Zur Muehlen and Recker,
2013). On the other hand workers are not obliged to accept any work that is offered to them.
There are various advantages and disadvantages to Sparks and shine training centre by adopting
this contract such as-
Advantages:
 It provides organisation an opportunity to employee more skilled employees as no
employee is permanent and more chances can be provided to new talents.
 It reduces cost of employment that gives competitive advantage to businesses like Sparks
and shine training centre.
Disadvantage:
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 Having no permanent employees in the organisation reduces certainty of having quality
workforce in the organisation, which is essential to establish new business.
 This increases cost of organisation in some situations when demand for employees is
high and more amount is charged by employees in that period.
Agency staff is a process of hiring employees in the organisation through specific
agencies who are specialised in providing employees as per requirement of consumers for
temporary or long-term work (Ehnert, Harry and Zink, 2013). Appointing employees from
agency will provide following advantage and disadvantage to Sparks and shine training centre-
Advantage:
 It will reduce cost of hiring employees in the organisation as agency will incur this cost
not the organisation.
 It will eliminate recruitment work for managers in the organisation and they can give
their concentration to more productive activities.
Disadvantages:
 When employees are hired on more frequent basis then time and cost of training process
will be high for Sparks and shine training centre.
 Employing from staff agencies may diminish moral of permanent employees by having a
fear of being replaced anytime.
2.3 Consumers/ Client
PART 3
Yes business should be successful as the unemployment rate is increasing, this training
centre will give the unemployed people a new opportunity to work and enhance their skills
which are required by an individual to work in a corporate (Galí, 2015). This training institute
will enhance the intellectual skills required by an individual by giving them a theoretical
knowledge in critical thinking and problem solving which is required to work in a corporate, also
the practical skills will be enhanced as they will be given different task to use the real time
practical implementations of their knowledge, affective behavioural skills will be improved as
they will be allowed to use their skills during their training program, working in a group will
help them grow their transferable skills helping them to lead and work effectively in a team.
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Strategies that can be adopted in expansion is that, it can be expanded by giving more
services such as giving them placement opportunities after the completion of their training
courses, it can also be expanded by adding a new service working as a consultant firm providing
the placements to the unemployed people who does not require any kind of training. For
example, providing internships to the people who have completed their training in their
prospective fields and bridging the gap between the placement departments of different
companies and unemployed people (Kandachar and Halme, 2017). This new expansion project
can be promoted through word of mouth publicity, social media promotions by showing their ads
to the people who are looking for job opportunity. With this expansion plan, target audience will
be increased covering all those who are looking for job and does not require any kind of training.
Business should be placed in such areas where the rate of unemployment is high.
CONCLUSION
From the above project report it is been concluded that a new business requires a
described assessment of market condition to make it successful. A new business organisation
needs to pre determine which services and product will be served to consumer and what will be
USP of the organisation to compete. Together with this 4 marketing Ps will be analysed that will
help in establish a business in most productive form. Employee’s plays important role in success
of the organisation and skilled employees will be employed to attract large consumer group and
satisfying needs of targeted consumers.
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REFERENCES
Books and Journals
Aral, S., Dellarocas, C. and Godes, D., 2013. Introduction to the special issue—social media and
business transformation: a framework for research. Information Systems Research.
24(1). Pp.3-13.
Baden-Fuller, C. and Mangematin, V., 2013. Business models: A challenging agenda. Strategic
Organization. 11(4). pp.418-427.
Blumentritt, T., Mathews, T. and Marchisio, G., 2013. Game theory and family business
succession: An introduction. Family Business Review. 26(1). Pp.51-67.
Brocke, J. V. and Roseann, M., 2014. Handbook on business process management 1:
Introduction, methods, and information systems.
Ehnert, I., Harry, W. and Zink, K. J., 2013. Sustainability and Human Resource Management-
Developing Sustainable Business Organizations.
Galí, J., 2015. Monetary policy, inflation, and the business cycle: an introduction to the new
Keynesian framework and its applications. Princeton University Press.
Kandachar, P. and Halme, M., 2017. Introduction. Farewell to pyramids: how can business and
technology help to eradicate poverty?. In Sustainability Challenges and Solutions at the
Base of the Pyramid (pp. 13-40). Routledge.
Zur Muehlen, M. and Recker, J., 2013. How much language is enough? Theoretical and practical
use of the business process-modelling notation. In Seminal Contributions to Information
Systems Engineering (pp. 429-443). Springer, Berlin, Heidelberg.
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