Assessing the Impact of Globalization on Small Scale Organizations

This assessment evaluates the opportunities provided by globalization to small scale organizations, particularly in the UK due to Brexit. It discusses innovative ideas such as hygienic fast food and how they can aid restaurant growth and success. The assignment references various books and journals on entrepreneurship, new venture creation, and internationalization.

LAUNCHING A NEW
VENTURE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Competitive analysis of new venture in target market...........................................................1
P2 Tangible and intangible resources resources for launching new venture..............................2
TASK 2............................................................................................................................................3
P3 Credible proposal for launching a new venture....................................................................3
P4 Several skills and capabilities for launching new venture ...................................................4
TASK 3............................................................................................................................................6
P5 Promotional activities for launching a new project .............................................................6
P6 Promotional activities plan for launching and pre launching of “ Easy Eat Fast food ”.......7
TASK 4............................................................................................................................................8
P7 cash budget for pre launch phase for 12 months .................................................................8
P8 Legal form of “ Easy Eat Fast food ”...................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Globalisation is a process through which organisation gets an opportunity to show their
influence in new business market. In current trends it has given chances to small scale
organisation to plan and invest their business activities and earn profit. “ Easy Eat Fast food ” is
a small scale business that has concentrated on providing healthy fast food in in London. By
generating innovative ideas and implement them effectively so that they can expand their grass
roots in all UK (Tang, 2011). This assessment focus on company' s strategy on identification of
strategy market, using tangible products, skills and capability required and budget required for
flourishing their business in market. Apart from this this project will also discuss several macro
and micro factor that can affect business activities of organisation.
TASK 1
P1 Competitive analysis of new venture in target market
In current business market globalisation has given opportunities for new entrepreneur and
small scale business to setup their business and earn revenue. This assessment truly focussed on
starting a new business in fast food sector in Islington (one of the most populated area in
London). They are truly focussing on investing in organic food items so that they can provide
better quality of food for people. For successful running of their restaurant called “ Easy Eat Fast
food ” they have to plan better to gain comparative advantage and earn profit by their new
business idea.
Identifying market – Entrepreneur has planned to setup their business in Islington
(considered as the most populated area in UK). They have predicted that being a posh area it will
provide more number of customers for their restaurant. The another factor that has being
analysed is expectation of people in that market (Baron, 2011). It is observed that place is having
lost of fast food restaurant and providing organisation food will help them to increase their
influence in that market
Target market: Easy Eat Fast food provide healthy fast food in London which is their
target market. Along this, company is established near college area, gym and many other places
which have youth which prefer to get healthy food items to remain fit.
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Competitive analysis – By better analysis of competition in market company can make
efficient planning and strategies to increase their productivity in business market. There are
number of restaurant like Little Georgia Islington, Afgan Kitchen Restaurant, Salut! Restaurant,
doing efficient business by putting innovative ideas in their restaurant for getting more profit
from their business activities (Bijker, 2012).
Porters five forces analysis:
It is an efficient tool which help organisation to have knowledge about competition level
of industry in market. In context of manager of Easy Eat Fast food uses this model to have
information about about present position of firm in respect to its competitors. This model
comprises five factors which are described beneath:
Threats of new entrants: This tactic define that new firms increases in sector which is
making profit. This impact on sales of existing firm, as customers options increases. But, as new
entrants require to construct its brand name which takes time. As per current market scenario,
Easy Eat Fast food which is food sector firm has low level of threat of new entrant which is
stated through research conducted by management.
Bargaining power of buyers: It is another aspect which define that customers have
authority to purchase products and services at their rates, if there are small number of firms in
market. Easy Eat Fast food is new firm, so people have power to charge high prices. Customers
prefer to buy products from existing cafe or restaurant, for this, company offers healthy food
items to attract people easily.
Bargaining power of supplier: This is another tactic which specifies that organisation
require material and products to satisfy demands and requirements of people. For this, suppliers
are in power when there are in less number and large firms are present in market. Easy Eat Fast
food require raw material for production of healthy food items. For this, management
responsibility is to maintain relations with suppliers to order things timely and at appropriate
rates.
Threats of substitutes: It is aspect which define that products and services that are of
similar are substitute for each other. For this, people have options to purchase items in according
to their needs, its quality and rates. Easy Eat Fast food is new firm which offer healthy food
products substitute items are rival firms in this sector.
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Competitive rivalry: Every sector have large number of firms which are conducting
business operations to generate profit and sustain their position in market. Easy Eat Fast food has
rival firms that are cafe and restaurant that are providing food items for fulfilment of demands
and needs of people.
For doing better competitive analysis they have to follow specific procedure for better
analysis of their business activities. Process is as follows-
 Conducting research – Analysing different external factors in market will help
organisation to make productive decision (Burns, 2017).
 Gathering information about competitive market – Collecting information about
performance of market will organisation to increase their dominance.
 Strategies used by competitors – Analysis of strategies of competitor will aid
organisation to make efficient planning to grow and sustain in business market.
 Analysis of competitive information – Analysis of competitor's strength and weakness
is necessary
 Determining own strength and comparative position – SWOT analysis of own
business will always be helpful.
 Market structure of place –Structure in market changes regularly it is to be analyse
efficiently n
 Future opportunities provided by market – Determining future opportunities and
factors provided by organisation (Caselli, 2018)..
For performing in business market it is important for organisation to identify market,
competitiveness and opportunity they provide for growth of their business activities.
P2 Tangible and intangible resources resources for launching new venture
A business activities have to capitalise on both tangible and intangible resources that will
aid organisation to execute their planning in business market.
Tangible resources – These are types of resources that can be seen or have physical
existence like table, chairs, land, building, transportation, cooking items, workforce. For example
owner of “ Easy Eat Fast food ” must determine location of their restaurant so that it can easily
be visible. One of the important tangible resource is human resource, the organisation can
efficiently use their human resource to increase their potential in performing their business,
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Intangible resources – These are types of resources that do not have physical existence
but can be termed as resources e.g. skills, knowledge, technology, communication skills, ,
intellectual ability, patents, copyrights and, trademarks e.g. for analysing future prospective and
growth of organisation it is essential for them to analyse opportunities that market provide, for
doing so they require several skill set and knowledge to analyse that market easily. Financial
resource is also called intangible resource and a most important one that gives strength to
organisation to make productive decisions related to investment.
For successful running of restaurant, decision makers have to make strategies for
implementing these factors efficiently for fetching more revenue from their restaurant. For
example putting innovative for making food will help organisation to gather more attention to
their restaurant (Negri, 2018). They must also observe that for getting more productivity in
market they have to legalise their business by providing proper licensing and registering their
restaurant.
TASK 2
P3 Credible proposal for launching a new venture
While launching their new business owners and management should have defined
purpose before starting their hotel. Restaurant business must have purposes and objectives
before starting their business activities. The two main purpose of “ Easy Eat Fast food ” is to
serve healthy food and expanding their fast food business to new market.
They have observed that in many areas of UK people are more entitled to adapt healthy
food habits. So by putting organic ingredients in fast food it will be able to increase their
business. For example while making organic burger they can add herbs, olive oil, fresh
vegetables, black paper etc. By making several hygienic food like this they can be able to
increase their potential to grow in market place and compete in an effectual way.
They have also planned to increase their business activities in different market. The “
Easy Eat Fast food ” have analysed several market that will provide opportunity for growth to
their business activity (Fernhaber, 2013). Some of the major market where restaurant business
have targeted to start their future venture are Hackney, Kensington, Lambeth ( some of the other
populated area in UK). The main reason for expanding business to several geographic reason is
to sustain and dominate their business with new and innovative ideas (Hmieleski, 2012).
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It can be conclude that a business with a purpose will aid any business to flourish and
sustain for longer time in market. “ Easy Eat Fast food ” is having innovative ideas and efficient
planning that has to be implemented efficiently for providing better opportunity for their growth
and development in several business market
Business Proposal
Introduction
It is a fact food restaurant concerted on providing organic fast food. This innovative ides will
be efficient because all the products are healthy and available at a reasonable rate.
About the business
The planned location of business is Islington regarded as most populated area in in UK
It has planned to target most number of people in that area
Company has further planned to increase their business in more geographical area like Chelsea
Cost of production of business
Average daily sales is expected to be 2567 Pounds.
Problem
Easy Eat Fast food is new entrant which is small firm that is providing healthy fast food items.
Company faces problem in respect to people awareness about their existence and food sector
have large number of competitors which effect on its sales.
Solution
Easy Eat Fast food require that manager promote and advertise information to people about
their outlet and food items to attract people. Along this, firm even require to provide quality
products and construct relations with customers to make them recommend it to their relatives
and friends.
Cost/ Price
Easy Eat Fast food offer fast food items to customer at low prices in order to achieve satisfied
customers and build competitive positions at market place.
Future expectation
It is expected that business will expand in new location and generate more profit.
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P4 Several skills and capabilities for launching new venture
For the business to do productive business in market structure it is essential for
organisation to have potential people to make better planning in their business activities. The
location where owners are planning to launch their restaurant is already having many type of fact
food restaurant so they have to make efficient planing to compete in that business market with
their products (Cole, 2012). All the company in small scale business sector including “ Easy Eat
Fast food ” have opportunity in business sector to have profitable business in future market
because before the implementation of Brexit government is planning to give findings to small
scale organisation to grow in marker. Some of the important factors where skills and capabilities
are needed for enhancing their productivity in market.
Financial management – For performing better in market an organisation has to be
financially stable so that they can be able to make efficient planning and execute them. It will
also help them to sustaining against fast moving business environment by better planning
against risk and uncertainty in market place.
Promotion and Marketing – Promotion activity is a crucial factor for increasing revenue
of organisation. By adopting better marketing techniques before and after launching restaurant
will aid organisation to increase their productivity. For example they can use digital medium
like flash messages and e-mails to perform their promotional activities to reach out to more
number of customer through a cheaper promoting medium (Baron, 2012).
Communication – Communicating with customers is necessary to understand behaviour,
attitude and wants of customers. This is also an effective tool to maintain a good business
environment. Through better communication technique a manager can be able to transfer their
goals, planning, views and strategies to their subordinate. A positive organisational culture will
help in increasing resonance between employees and employees that will ultimately help
organisation to grow in market.
Project management – It means handling different activities in organisation separately
that will help in making planning for different activities in organisationv (Kariv, 2013). For
example company want to start parcel service for door to food delivery of their products owners
have to calculate all factors related to that project like vehicles, employees, range of delivery etc.
So by managing each sector separately it will aid them to manage different business activities
efficiently.
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Leadership – For successful running of their business activity is is important factor for
organisation to have a potent management and leading team so that they can be able to manage
several internal and external factors perfectively.
Time management – Time plays a crucial role for success of business in market. By
managing time company can be easily able to execute their business in required time frame. For
example as owner is trying to launch business in market they have to adopt specific time or
occasion to launch their business to get more attention, like launching business at the time of
Christmas will help them to fetch more customer in business market (Klotz, 2014).
Problem solving – Every organisation is facing problem in business activities, so it is
essential for organisation to solve their problem in a better way. Management of “ Easy Eat Fast
food ” must be skilful enough to handle several problems that prevails in business market.
Demand forecasting – Company must have a separate team to analyse several factors in
external market. So owner must have efficient team to analyse different factors in external
market e.g. competitor, market change, government strategies etc. So a better team will aid
business to have a right approach to increase their business activity.
TASK 3
P5 Promotional activities for launching a new project
For launching “ Easy Eat Fast food ” restaurant in market, Owners of company must
adopt several promotional activities that will be effective in maintaining their business in a
productive way (Kuratko and Hornsby, 2017). The organisation can adopt several digital and
printed media to perform promotional activity. Government of UK is also supportive by
providing leniency in marketing and promotional activity of small scale business organisation.
Some of proffered medium for promotion of business activities are -
Direct marketing – Through this marketing technique management of “ Easy Eat Fast
food ” can reach out to maximum people in local market.
Advertisement – Using both digital and printed medium will help restaurant to reach out
to different sectors of market. It will also help them to generate comparative advantage in market
place
Telemarketing –It is marketing and promotional technique through telephone network.
“ Easy Eat Fast food ” restaurant can give contracts to agencies who can do promotion on be
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half of restaurant. By having efficient communication and interpersonal skills they will be able to
fetch customer in local market.
Some potent strategy that will aid restaurant to increase their brand values are as follows.
Social media – Digitalisation has influenced life of people in different way. Almost
every person in world attached to one another through social media. By promoting their business
activities in market, social media will help restaurant to promote their business in faster and
effective way. They can use different social media to increase their reach in different
environment (Morris, 2015).
Pop – Up or flash message – This is a best method adopted by several organisation to
promote their business. For example majority of people in London are using Android and Apple
Ios cellphones, so promoting their business through these platform will aid them to have a
psychological effect on market.
Printed media – Newspaper is always an efficient medium for business to promote their
business. By promoting business through printed medium “ Easy Eat Fast food ” restaurant can
be able to reach out easily to people of different groups.
Sponsorship – By sponsoring local events restaurant will be able to increase their
business values among local people (Read, 2016). For example they can provide food items to
management and athlete in local marathon events, it will be a better platform for them because
they are dealing in providing hygienic food to people.
These are some major tools and techniques so they can be able to increase their business
activities in local market and have opportunity to increase their reach in different market.
P6 Promotional activities plan for launching and pre launching of “ Easy Eat Fast food ”
Promoting business efficiently will aid “ Easy Eat Fast food ” restaurant to expand their
grass root deep in market to generate core competence among their competitors. There are
several promotional activities that will aid organisation to make efficient business planning are
as follow-
Product analysis – For efficient promotion an organisation must know about their
product that will aid them to make better planning for their product
Market analysis – Restaurant has to analyse potential of market before investing to
fetch more profit from that market.
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Financial base – Before entering market they must have financial base, that will help
them to increase their potential to add more feature to business activity and sustain against risk
and and uncertainty from external business market.
Merchandising and sponsoring – Restaurant can plan to increase their potential in
business market by sponsoring local events that make their venture noticeable among people
(Robb, 2012).
Offer Customers an Exclusive Preview – Through banners and templates they can
promote about their products. Adding discounts and offers will have positive psychological
impact on their customers
Social Media Contests – Restaurant can organise several game and activities form
promoting their products. These kind of activities will attract more customers in their
promotional activities
Email Marketing – It is a cheaper source of promoting business activities. Through e-
mail they can increase their potential to increase their business activities.
Share Customer Reviews- The can also share review of of people in different market to
attract more customers for their business activities.
Apter launching restaurant organisation has to adopt different promotional activities to
increase their potential in business market (Watson, 2012).
Brand development - “ Easy Eat Fast food ” has to develop its brand value after launching it. By
implementing different strategies in promotion of business will help restaurant to increase their
popularity in faster way.
Web Presence – Digitalisation is being adopted by many business organisation in an
efficient way to increase their reach in different business market. “ Easy Eat Fast food ” can plan
to put their business on online portal to let people know about their business activity.
Digital PR and partnering – Promoting business on online portal and make people
informed about their business activities through online medium that will help them to increase
their activities in market (Simon and Shrader, 2012).
Newspaper – They can increase their reach in all over London through promoting
business through local newspaper.
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These are some of the important promotional activities that will aid organisation to
promote their business in market successfully. Manager of Easy Eat Fast food advertise
information about firm to communicate to people about variety of healthy food items. For this,
weekly template is given to remind public and attract them to visit store in respect to
competitors. Along this, company have formulated their website to increase their market reach
and market position.
TASK 4
P7 Cash budget for pre launch phase for 12 months
Pre- cash budget is helpful an organisation to develop their business in future venture.
Jan – may
Year 2013 Jan Feb Mar April May
Food Sales 37,820 38247 40203 42160 43138
Beverage Sales 18650 13,650 14,349 15,049 15,399
GROSS SALES 56470 51897 54552 57209 58537
Cost of Sales
Food 14625 12689 13334 13980 14302
Beverage 6,515 3,412 3,587 3,762 3,850
TOTAL COST OF SALES 21140 16101 16921 17742 18152
GROSS PROFIT 35260 35,796 37,631 39,467 40,385
General and Administrative
Employee Salaries 14,118 12,949 13,613 14,277 14,609
Management Salaries 3,400 3,400 3,400 3,400 3,400
Employer Taxes/Benefits (15% Wages) 2,102 1,962 2,042 2,121 2,161
Workers Compensation (6% Wages) 1,051 981 1,021 1,061 1,081
Advertising 800 800 800 800 800
Bookkeeping 150 150 150 150 150
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Credit Card Charges (1%) 565 518 545 571 584
Insurance 250 250 250 250 250
Legal and Professional Fees 100 100 100 100 100
Misc. Other 250 250 250 250 250
Office Supplies 175 175 175 175 175
Rent 3,200 3,200 3,200 3,200 3,200
Repair and Maintenance 300 300 300 300 300
Small Equipment 200 200 200 200 200
Telephone [phone]
Garbage 200 200 200 200 200
Utilities 1,200 1,200 1,200 1,200 1,200
Total Gen. and Admin. (Fixed) 28,210 26,785 27,595 28,405 28,810
NET PROFIT OR LOSS 7,220 9,011 10,036 11,062 11,575
SBA Loan 3,582 3,582 3,582 3,582 3,582
Cash Flow After Financing 3,638 5,429 6,454 7,480 7,993
Draw 4,000 4,000 4,000 4,000 4,000
Net Cash Flow (362) 1,429 2,454 3,480 3,993
Accumulated Cash Flow 1,066 3,521 7,000 10,993
Average Daily Sales / 22 days 2,567 2,354 2,475 2,596 2,656
June – Dec
June July Aug Sept Oct Nov Dec
YTD
2013
43,527 44,016 44,505 43,038 41,570 35,213 37,658 4,90,694
15,574 15,749 15,924 15,399 14,874 12,600 13,475 1,80,694
59,101 59,765 60,429 58,437 56,445 47,812 51,132 6,71,388
-
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14,364 14,525 14,687 14,202 13,718 11,620 12,427 1,63,973
3,894 3,937 3,981 3,850 3,719 3,150 3,369 47,026
18,257 18,463 18,668 18,052 17,437 14,770 15,796 2,10,999
-
40,844 41,303 41,762 40,385 39,008 33,042 35,337 4,60,389
- - - - - - - -
14,775 14,941 15,107 14,609 14,111 11,953 12,783 1,67,847
3,400 3,400 3,400 3,400 3,400 3,400 3,400 40,800
2,181 2,201 2,221 2,161 2,101 1,842 1,942 25,038
1,091 1,100 1,110 1,081 1,051 921 971 12,519
800 800 800 800 800 800 800 9,600
150 150 150 150 150 150 150 1,800
591 598 604 584 564 478 511 6,714
250 250 250 250 250 250 250 3,000
100 100 100 100 100 100 100 1,200
250 250 250 250 250 250 250 3,000
175 175 175 175 175 175 175 2,100
3,200 3,200 3,200 3,200 3,200 3,200 3,200 38,400
300 300 300 300 300 300 300 3,600
200 200 200 200 200 200 200 2,400
150 150 150 150 150 150 150 1,800
200 200 200 200 200 200 200 2,400
1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400
29,013 29,215 29,418 28,810 28,203 25,570 26,582 3,36,617
-
11,831 12,087 12,344 11,575 10,805 7,472 8,754 1,23,771
3,582 3,582 3,582 3,582 3,582 3,582 3,582 42,984
8,249 8,505 8,762 7,993 7,223 3,890 5,172 80,787
4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000
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4,249 4,505 4,762 3,993 3,223 (110) 1,172 32,787
15,242 19,747 24,509 28,501 31,725 31,615 32,787
2,686 2,717 2,747 2,656 2,566 2,173 2,324
This is a 12 month cash budget for pre phase of launching of “ Easy Eat Fast food ”. This
will further help organisation to understand performance of their business and eventually will aid
them in maintaining their business effectively.
P8 Legal form of “ Easy Eat Fast food ”
Every business in market perform their business activities in some legal form for smooth
running of business activities. “ Easy Eat Fast food ” adopt sole proprietorship form of business
activity
Sole proprietorship – It is also called sole trader. This type of business activity is owned
and run by a single person only that means a single person will be responsible for taking decision
of all the activities. Single person have to bear all profit or loss as well all risk and uncertainties
in business activities.
For performing effectively in business activities owner has to take efficient decision for
better flowing of business in market place.
CONCLUSION
From the above factor we have concluded globalisation has given opportunities to many
small scale organisation to launch new business activities by implementing innovative ideas. Due
to Brexit UK government is more focussed on promoting their business activities of small scale
organisation. Owners of “ Easy Eat Fast food ” came to scenario with innovative ides of making
hygienic fast food. It is a very innovative idea hence by adopting different innovative and
marketing technique it will aid restaurant to grow and succeed in business market. This
assessment has pinned down several intertidal and external sector that will aid a company to
grow and prosper in business market.
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REFERENCES
Books and Journals
Baron, R. A. and Tang, J., 2011. The role of entrepreneurs in firm-level innovation: Joint effects
of positive affect, creativity, and environmental dynamism. Journal of Business
Venturing. 26(1). pp.49-60.
Bijker, W. E. and et. al., 2012. The social construction of technological systems: New directions
in the sociology and history of technology. MIT press.
Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
Caselli, S. and Negri, G., 2018. Private equity and venture capital in Europe: markets,
techniques, and deals. Academic Press.
Fernhaber, S. A. and Li, D., 2013. International exposure through network relationships:
Implications for new venture internationalization. Journal of Business Venturing. 28(2).
pp.316-334.
Hmieleski, K. M., Cole, M. S. and Baron, R.A., 2012. Shared authentic leadership and new
venture performance. Journal of Management. 38(5). pp.1476-1499.
Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international
overview. Routledge.
Klotz, A.C. and et. al., 2014. New venture teams: A review of the literature and roadmap for
future research. Journal of Management. 40(1). pp.226-255.
Kuratko, D. F. and Hornsby, J. S., 2017. New Venture Management: The Entrepreneur's
Roadmap. Taylor & Francis.
Morris, M. H., 2015. Entrepreneurship as experience. John Wiley & Sons, Ltd.
Read, S. and et. al., 2016. Effectual entrepreneurship. Taylor & Francis.
Robb, A. M. and Watson, J., 2012. Gender differences in firm performance: Evidence from new
ventures in the United States. Journal of Business Venturing. 27(5). pp.544-558.
Simon, M. and Shrader, R. C., 2012. Entrepreneurial actions and optimistic overconfidence: The
role of motivated reasoning in new product introductions. Journal of Business
Venturing. 27(3). pp.291-309.
Online
Launching a new venture 2018. [Online]. Available through:
<https://www.exed.hbs.edu/programs/lnv/Pages/default.aspx>.
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