Analysis of Entrepreneurship and Business Models

The provided document is an assignment that delves into the psychology of entrepreneurship, covering topics such as predisposition for growth, fostering entrepreneurship through education, and improvising internationalization in new ventures. It also explores the concept of social business and business models for people, planet, and profits. The assignment includes references to several books and journal articles that discuss these concepts in detail.

LAUNCHING A NEW
BUSINESS VENTURE

INTRODUCTION
The process through which any business wishes to expand its product or services in other
foreign country with an aim of capturing large market share known as Globalisation. With the
help of this, firm can gain high competitive advantage over their rivals. The impact of
Globalization can be viewed on every single business (Baum, Frese and Baron, 2014).
Launching a new business venture means when an entrepreneur aims at earning adequate anount
of profits in return of fulfing diverse needs and desire of consumer. The chosen organization for
this report is Foodies Corner which is UK based new business venture, mainly deals in selling
large variety of healthy foods. The main purpose of this report is to undertake all crucial aspects
that needs to be taken into account by entrepreneur for successfully launching new business
venture. It covers determining target market, competitive analysis, different channels of
promotion, producing yearly budget, identification of tangible and intangible resources, skills
required for setting up new business and lastly select appropriate legal form of new business
venture.
TASK 1
P1 Identify specific target market and undertaking competitive analysis
For successfully launching a new business venture there are various factors that need to
be taken into consideration such as target market, competitive analysis, market analysis etc. In
modern era, demand for fast food is growing rapidly in every country. Considering the growing
demand of fast food in UK, it has been examined that if any one is launching new business
venture in fast food sector in United Kingdom than as a result it will save both money & time
while empowering entrepreneur that he/she has made profitable decision. It a sector where there
are large number of opportunities present only one can know how to exploit it effectively. At the
same time, there is strong competition prevailing in this industry. Since our venture is new so the
entrepreneur needs to first determine its target market, do competitive and market analysis. Identification of target market:- “Deliver your message to the consumer who want and
need what you want to offer”. This will take business to go through step by step
procedure of determining its target market (Douglas, 2013). It encompasses identifying
the reason why customer would want to buy new company's product or services,
segmentation of overall market and then lastly research about market. In the given case,
Foodies Corner is going to launch veg mix fruit kebab which is a kind of healthy dish as
1

made up of organic fruits and vegetables. Today people are becoming very particular
about their health. Taking the advantage of this, Foodies Corner has decided to create a
unique dish which is a combination of both fruit and kebab i.e. veg mix fruit kebab. It can
be consume by people of any age group. Since it is a healthy dish as made up of fruits
and organic vegetable. But they mainly focus on targetting consumer of age ranges
between 20-45 year. Competitive Analysis:- It is consider as a critical part of company's marketing plan. With
the help of this, entrepreneur can easily determine what are the core factors that makes
their product different from that of competitor's one (Dutta, Li and Merenda, 2011).
Thus, what attributes entrepreneur needs to taken into account while attracting large
number of customer. Foodies Corner is gaining high competitive advantage for serving a
first ever combination of veg mix fruit kebab. Though the venture is new but still they
have some rivals who are giving them strong competition. So the respective firm is
require to formulate plans and strategies accordingly.
 Market Analysis:- It aims to identify market attractiveness both in current and future
time period. Business analyse future market attractiveness by knowing evolving threats
and opportunities related to it. Since the company is going to introduce veg mix fruit
kebab, they need to investigate all possible opportunities concerned with it and tries to
exploit in best optimal manner. There are distinct competitors that are available in market
and serving similar sort of products. Thus, before launching its venture one needs to
thoroughly examine all related aspects properly.
P2 Determine tangible and intangible resources required for launching new business venture
Every business has different types of assets and resources some are visible while some
are not. Resources are crucial for carrying out all business activities and operation in an effective
manner. Classification of resources are discussed below:-
1. Tangible Resources: Such type of resources can be seen or touched such as land,
building, machinery, equipment, inventory etc. These kind of assets are usually owned by
business and own monetary value & is materially present. In addition to that, value of
such assets reduce over the time period (Evers and O’Gorman, 2011). Since Foodies
Corner is a new business venture, so its tangible resources mainly covers attractive
furniture, equipments for preparing food, land which is easily accessible to all, sort of
2

warehouse where they can keep their processed food. The main objective of Foodies
Corner is to get all these resources at minimal rate and tries to utilise in an optimum
manner. In order to mix fruit kebab, there is requirement of fruit mixer and grinder. This
requires cost of around £ 50. There is requirement of crockery such as cup plates, cutlery,
etc. which are required by consumers while dinning at restaurant. This costs around £ 25
per month.
2. Intangible Resources: There are some non-physical resources that cannot be seen or felt
but still affect affect overall functioning and operation of business activities. Such kind of
intellectual assets are having certain economic life & value (Ghimire and et. al., 2015).
Some of the common example of these resources cover goodwill, patent, trademark,
customer relation etc. These resources also play key role in generation of idea or
embedding new technology. As it is a new business venture, the company needs to be
very particular about handling its brand image in the market. All the items used in
preparation of food must be fresh and hygienic that indirectly build good brand image of
the company in the eye of customer. Along with this, Foodies Corner can choose
attractive symbol or logo for its brand that usually distinguish them from that of other
competitors goods available in the market.
TASK 2
P3 Produce credible proposal to launch new business venture
For successfully setting up a new business venture, it is primarily important to first
produce a credible proposal so that all activities can be formulated properly and strategies are
framed accordingly. Owner of Foodies Corner believes that with effective business plan, defined
goals and objectives can be achieved easily. In addition to that with proper planning all task can
be carried out smoothly. Initially it is difficult for a new venture to perform all task
systematically but however with the help of planning chances of mismanagement reduces and
possibility of success increases (Ke and et. al., 2015). Following are the series of steps that is
undertake by Foodies Corner to produce incredible proposal are listed below:
Executive Summary Foodies Corner is a UK based fast food restaurant that
specifically deals in providing different or unique combos of
vegetarian dishes. One of its innovative dish is veg mix fruit
3

kebab made with fresh and organic fruits & vegetables.
Company Description The main objective of owner of Foodies Corner is to serve fast
food dishes with a touch of healthy ingredients. Owner was
aware of the fact that it is little difficult for people to avoid junk
food, thus he/she decide to make a unique dish that is completely
healthier for consumer in terms of calories, fat. Company has a
unique product in its menu naming “veg mix fruit kebab”. It will
be going to open in Oxford Street, London.
Market Analysis For running business smoothly, it is necessary for every business
enterprise to examine the requirement of market first. There are
various tools through which market analysis can be done such as
PESTLE, SWOT, PORTER'S FIVE FORCES etc. Owner of
Foodies Corner needs to investigate the market first by using any
of these tool.
Financial Projection Once the company is done with studying market environment,
next step is to arrange adequate amount of fund for carrying all
business operation in a cost effective and timely manner. Since it
it's a new business venture adequate funds can be gathered
mainly through external sources such as angel investors, bank,
creditors, individual donor etc.
Benchmarking By setting benchmark, it has become much easier for the owner
of Foodies Corner to perform out all specified task accordingly
and within its time period as well. When all activities carried out
as per the set or defined standard chances of accomplishing
business goals and objectives tremendously increases.
P4 Skills and capabilities required for launching new business venture
There are different abilities that are required for successfully launching a new business
venture in the market place. In-fact the entire success of a company depend upon how its owner
manages all activities in a proper manner and achieve desired goals and objectives within
4

specified time frame (Khan and et. al., 2015). Some of the common attributes and skills needed
for setting up new business venture are discussed below:-
 Financial Management skills: Management of fund is critical for smooth running of
business activities. Because of lack of assets, tasks can not be carried out in a proper
manner. One of the crucial asset of any company is “money”. Thus every single
entrepreneur must have a deep knowledge regarding utilization of money in an
appropriate manner. In this way, it is imperative that financial management of the
respective firm must be good.
 Communication Skill: Effective communication is essential for business person to
command their staff individuals. It helps with passing on appropriate data and messages
and additionally in understanding business exercises legitimately. Since it's a new firm it
is primarily important for the company to interact effectively with its employees (Liao
and et. al., 2016). This help in building great relationship between employee and
employer.
 Decision making skills: Entrepreneurs ought to have impelling decision making abilities
that help them in taking quick and justified decision when required. It will helps Foodies
Corner to exploit opportunities in best possible manner. At times owner of respective
firm need to involve its employees in decision making process which makes them feel
valued and important.
 Strategic Planning Skills: It is a basic skill that every organization requires. A business
owner ought to have abilities related with strategic planning so they can create effective
business plan. It helps them in characterizing future strategy and achieving goals and
objectives in a better manner.
 Critical thinking aptitudes: There are different issues that happens in each business.
These issues or problems impact company's culture and employee's working.
Consequently, it is required by a business person to have great critical thinking abilities
with the goal that all issues that may emerge in the firm can be settled in an appropriate
manner.
5

TASK 3
P5 Different promotional channels for promoting new business venture
Marketing communication are done by the different firms to inform, persuade, remind
their product or services in the mind of consumers. The success and growth of any company
depend upon how effectively they promote its respective product or service in the market and
that too with unique or distinct feature (Paradkar, Knight and Hansen, 2015). It done through
directly or indirectly and for this new venture uses different channels like sale
promotion,advertisement, online marketing, social media marketing etc. Foodies Corner are
using different techniques to promote their product that is given below:
 Pay-Per click : It is a digital technique in which company have to register yourself on
google and than pay for every click. Google AdWords is help in displaying the ppc ad. on
screens. It gives the information regarding the performance of the company while doing
campaign. But in case the performance is not according to desires than they apply for re
creation because ultimate objective is to make an image about the product in the mind of
consumer (Paudel, Xiao and Yan, 2015).
 Social media marketing: It is one of the most popular approach in the ad industry. in
which firm do ad on Instagram face book , what's app, Pinterest, twitter and other social
media. This technique is very effective in youths and through which consumer can share,
link with their friends and relatives etc. regarding to new offers in the market. For
example: Foodies Corner can take the help of Instagram and promote their product over
their. The company can create its own page and keep posting the pictures of their dishes
on it. Today most of the customer gets attracted only seeing pictures.
 Sales promotion: This technique is basically useful for initial period while launching a
new product. Coupon, contest, premium, are the examples of this. They capture the
attention of consumers by providing such type of information. This is kinda traditional
but very effective method in terms of attracting large number of customers. Since it's a
new business venture so their owner can initially give some discount to its first 50
visitors. Also now a days there are various online food application like Zomato with
which Foodies Corner can tie up and take order through an intermediary channel. For
6

instance: If any person order food from Foodies Corner via Zomato, he/she will get extra
20% off on its products (Sebastiani, Montagnini and Dalli, 2013).
 Personal selling: It is communicating channel which helps in promoting the product
through live,immediate, or interaction with people. Through this firm can create a
personal relationship with them so they can maintain a long-lasting relationship. This is
also one of the oldest and traditional way of promoting company's product or services
among target customer. Since it is a new business firm so it is really important for them
to build strong customer relationship with its potential customers. This promotional
channel lasts long term impact on customer mind.
P6 Produce an appropriate promotional plan
Various promotional channel has been used by Foodies Corner with a motive of
promoting its product or services in the marketplace. For this, firm needs to set up a legitimate
arrangement before launching its items in the market. It ought to incorporates every such
movement that help in achieving and holding clients (Wilson and Post, 2013). A few exercises
that should be considered by company before and after pre-launch of product or services
includes:
 Product Analysis: Company should think about their merchandise which they offer to
clients. They needs to painstakingly break down the item in which they contribute. For
example, Foodies Corner require to comprehend and foresee future development of their
merchandise before putting resources into them.
 Market investigation: Analysis of market patterns is essential as it impact deals and
productivity of business. Target gathering of people, contenders, sorts of items, market
size etc. are the variables that ought to be considered by foodies point. Appraisal of inner
and outer variables is likewise important to be finished.
 Financial analysis: Before launching new busness venture it is important that firm ought
to have sufficient fund so tasks of business can be run easily. Financial plan for every
action needs to clearly and accurately represented.
Following are the activities consider at the time of setting new business venture:-
 Strategic Positioning: While propelling an item, it is required by firm to dissect its key
position in advertise and configuration designs as needs be. With a specific end goal to
take compelling choices, assessment of contenders showcasing procedure is fundamental.
7

 Brand Development: Foodies Corner needs to expand their market nearness by building
up their image. For this, firm needs to deliver clean nourishment with low calories and
great taste as individuals are more cognizant about their wellbeing thus, they want to eat
such sustenance (Wood, 2011).
 Digital Public Relation: Digital devices like blogger sites and various social networking
sites that help in promoting goods and services among target customer on vast level in an
appropriate manner.
TASK 4
P7 Produce monthly cash flow budget
Pre launch
cash budget
Cash Flow
budget (£)
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500
Total inflows 10000 3000 3000 4500 1500 3500
Cash outflows
Fixed :
Equipment’s 2000 2500 1500 2000 1200 1500
Variable :
Direct material 300 300 200 300 150 500
Total outflows 2300 2800 1700 2300 1350 2000
8

Net cash flow 7700 200 1300 2200 150 1500
Opening
balance 0 7700 7900 9200 11400 11500
closing balance 7700 7900 9200 11400 11550 13000
Particulars July August September October
Novembe
r
Decembe
r
Cash inflows (£)
Investment
Credit sales 4200 1000 2000 800 1200 1500
Total inflows 4200 1000 2000 800 1200 1500
Cash outflows
Fixed : Equipment’s 800 200 300 100 600 300
Variable : Direct
material 300 400 500 100 100 400
Total outflows 1100 600 800 200 700 700
Net cash flow 3100 400 1200 600 500 800
9

Opening balance 13000 16100 16500 17700 18300 18800
closing balance 16100 16500 17700 18300 18800 19600
Post launch cash
budget (£)
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500
Total inflows 9200 2000 7500 3000 5000 6500
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500 1100 1500
Variable : Direct
material 350 300 250 150 100 500
Total outflows 2850 1500 1750 2650 1200 2000
Net cash flow 6350 500 5750 350 3800 4500
Opening balance 0 6350 5850 11600 11950 15750
closing balance 6350 5850 11600 11950 15750 20250
Particulars July August Septembe October Novembe Decembe
10

r r r
Cash inflows (£)
Investment
Credit sales 1200 3200 1500 8200 1250 3210
Total inflows 1200 3200 1500 8200 1250 3210
Cash outflows
Fixed : Equipment’s 1200 600 500 500 1200 700
Variable : Direct
material 500 250 450 250 1300 500
Total outflows 1700 850 950 750 2500 1200
Net cash flow -500 2350 550 7450 -1250 2010
Opening balance 20250 19750 22100 22650 30100 28850
closing balance 19750 22100 22650 30100 28850 30860
Above mentioned is annual budget of Foodies Corner.
P8 Appropriate legal form for the venture
For performing exercises and tasks in legitimate way, a firm ought to have a proper lawful
structure.
Partnership: Foodies Corner is an organization firm in which 4 individuals contribute
their capital. Fundamentally, it is an authoritative document of business in which every one of
the accomplices have level with share in benefit and misfortune. They are likewise mindful to
oversee exercises and working of firm similarly (Paradkar, Knight and Hansen, 2015). Among
11

three sorts of organization, Foodies Corner maintain their business under general association. It
delineates that each accomplice have rise to liabilities and obligations that they ought to need to
take after for running business activities easily and effectively.
The purpose for picked organization type of business is that a solitary individual does not
have sufficient money to fire up their own particular business and hazard is likewise high in
running firm exclusively. In any case, in association, all accomplices contribute some measure of
cash. They pool assets to give assets to beginning a wander and the significant preferred
standpoint is that dangers are isolated among all accomplices. Nobody is exclusively in charge of
any misfortune or loss.
CONCLUSION
According to the above mentioned report it can be concluded that for launching a new
business venture in market, entrepreneur must have innovative or creative idea which gives them
high competitive edge over existing rivals. There are various factors that needs to be taken into
account while setting up new business like target market, competitor analysis, promotional
channel, preparation of budget etc. that have a extensive impact on overall operation and
functioning of the business. Addition to that tangible and intangible resources are also
determined, business proposal is produced and lastly appropriate legal form for launching new
business is selected and further plans are formed accordingly.
12