Entrepreneurship and Innovation Studies

This assignment explores various aspects of entrepreneurship and innovation through a collection of research articles. It covers topics such as female entrepreneurship, new venture teams, perovskite solar cells, and ethical consumption in the food industry. The papers provide insights into different perspectives on startup creation, resource allocation, technological advancements, and the impact of business models on society.

Launching a New Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determining target market for new venture and undertaking competitive analysis..............1
P2 Identification of tangible and intangible resources required to launch new venture.............2
TASK 2............................................................................................................................................3
P3 Development of credible proposal to start a new venture......................................................3
P4 Assessment of capabilities and skills required to launch a venture.......................................4
TASK 3............................................................................................................................................5
P5 Various promotional channels and activities that will support in launching new venture....5
P6 Development of promotional activities plan for pre launch and launch of new venture.......6
TASK 4............................................................................................................................................7
P7 Development of monthly itemised cash budget ....................................................................7
P8 Suggested appropriate legal form of Venture........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Globalization is one of the major factor that highly affect small scale businesses by
administering them chance of expansion. In order to attain high market growth, a company
introduce innovative products and services. This provides competitive edge to firm over its rivals
(Baum, Frese and Baron, 2014). Launching new venture emphasizes on overcoming common
obstacles which are facing by entrepreneurs in start up. Booker Tea is a new venture which
offers variety of tea, coffee and other beverages. Innovative idea behind this start up is to serve
fusion tea to customers with 2 or 3 flavours. This report includes explanation of new venture,
determination of target market and tangible as well as intangible resources that are needed to
start a business. Along with this, a credible proposal is developed and required skills are
assessed. Moreover, promotional activities plan is formulated for pre launch and launch of new
venture. At last, itemised monthly budget is produced and an appropriate legal form of venture is
suggested in this project.
TASK 1
P1 Determining target market for new venture and undertaking competitive analysis
Business and its activities are influenced by various factors from which customers are
one of them. So, it is necessary to consider taste & preferences of customers and develop product
accordingly. Tea is an aromatic beverage which is prepared by pouring boiling water over leaves
of camellia sinensis. There are various types of teas available in market such as astringent
flavour, slightly bitter, Chinese green, cool tea etc. Booker Tea is the chosen new venture which
is set up in United Kingdom. Firm offers variety of innovative fusion teas with 2 or 3 flavours.
Along with this, it also provides coffee and other beverages with some snacks. Variants of tea
includes nutty, sweet, floral, salty, fruity etc. In competitive business environment of UK, there
are various policies made by government which needs to be followed by management of Booker
Tea. High competition is prevailing in beverages sector market so, it is necessary to analyse
market trends on regular basis and consider preferences of customers while producing product. It
is also required by firm to perform such activities which assists in competing with rivals and
maintaining position in market (Douglas, 2013).
Determination of specific target market:
An entrepreneur requires to first analyse market and select target audience before setting
up a new venture. Tea is very popular beverage among people and is intake by around 75% of
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population. It is more consumed by elder and younger generations. As there is any change takes
place in market, needs and preferences of consumers also change. Now a days, different variety
of teas are available in market which people like to drink more. But, sometimes customers want
to have such kind of tea which is different from available one. This change in demand of
consumers needs to be fulfilled by company. So, Booker Tea emphasize on needs of people and
offer fusion tea to people with some flavours in order to satisfy them. The reason behind
implementing this idea is to offer consumers a completely new flavour of tea which satisfies
their needs. The target customers of Booker Tea are individuals who aged between 22 to 80
years (Dutta, Li and Merenda, 2011).
Competitive analysis:
In present business environment, there is high competition exist in beverage sector
market. As the scope of business increases, competition also increases. So, firms needs to assess
all those factors which influence performance of company. In order to grow and maintain
sustainability in market, firm needs to do its competitive analysis. It assists Booker Tea in
attaining its set targets and objectives. Strategies and policies of competitors are also needs to
keep in view. It assists in formulating effective plans that provides competitive advantage to firm
in market of United Kingdom.
Market Analysis:
After doing proper market analysis, Bookers Tea come with the concept of fusion tea
with 2 or more flavours. This assessment of market assists management of firm in framing
effective policies and strategies that facilitates in performing smooth operations of business.
Market assessment helps in determining competitors, their strategies, pricing policies as well as
needs and preferences of customers. Identification of such factors assists Booker Tea in
satisfying customers in more better way.
P2 Identification of tangible and intangible resources required to launch new venture
Before starting any business, some resources are required which supports in attaining
goals and objectives of company. There are various sources by the use of which firm can attain
high growth and success in market place. Some tangible and intangible resources are required by
Booker Tea at the time of starting their new venture (Evers and O’Gorman, 2011). These are
defined below:
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Tangible resources: These are the physical resources such as furniture, machines, capital,
manpower etc. All such resources are very essential for setting up a business. One of the crucial
requirement is finance without which no operations of firm can be performed. So, it is necessary
for Booker Tea to have adequate amount of tangible resources so that activities of business can
be run in effective manner (Ghimire and et. al., 2015). It is also required to have high end
machineries in company so that best quality tea can be prepared with good taste.
Intangible resources: In order to attain business objectives, these resources are
necessary. There are some resources which can not be seen but, these are very important for the
survival of business in market for longer period of time. Patents, trade marks, healthy
surroundings of business, strong organisational culture etc. are all included in intangible
resources which needs to be considered by manager of Booker Tea for its long term growth and
success in market. Healthy environment at workplace helps in motivating and encouraging
employees to perform their responsibilities in an effective and efficient manner. It also assists in
improving brand image of firm.
TASK 2
P3 Development of credible proposal to start a new venture
Before thinking about starting a new venture, it is necessary to analyse market properly
and formulate a proper plan related to all the future activities of firm. This plan provides
guidance or direction to manager of Booker Tea to perform activities in systematic manner.
Proper allocation of resources assists in making business operations successful. Before starting a
venture, a proposal is prepared in which business activities are prioritized and planned
accordingly. It helps in creating a proper sequence of activities to gain better results. Business
proposal of Booker Tea is prepared under following points:
Executive summary: Market analysis is the initial step by which opportunities are
identified and exploited (Ke and et. al., 2015). An entrepreneur thinks about various things and
they have many ideas. Among all those ideas, they select best one and set up a venture with that
idea. An entrepreneur thinks about each aspect which is associated with starting a business. They
measure feasibility and viability of an idea before turns it into reality. This helps in earning high
growth and profits. An executive summary is prepared by entrepreneur in which information
regarding business is include. It facilitates in knowing important aspects that needs to be taken
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care of. It bridges the gap between what an individual think and the ways to attain it. Booker Tea
is new venture which offers fusion tea with 2 or 3 flavours to customers.
Determine products and services: Under this phase, an entrepreneur is thinking about
goods and services which would be launched and offered to society. Behind every idea, there is a
particular reason (Khan and et. al., 2015). Booker Tea done market analysis and analysed that
customers are not preferring to have ordinary tea. So, the firm come up with new concept in
which they offer fusion tea to consumers with several flavours. They are aware about changing
needs of customers which assists them in serving them better products and satisfying their needs.
Develop marketing strategies: It is an essential factor that helps in growth and success of
business of Booker Tea. In order to market goods and services in better way, an entrepreneur
needs to formulate various strategies and policies. Online advertisement, application, bloggers
etc. are several trendy sources by the help of which, an organisation can market its products in an
effective and efficient manner. Booker Tea needs to advertise their product on television in order
to gain attention of large number of customers towards their innovative and new kind of tea. At
initial stage of business, a limited amount of funds are available. So, manager of Booker Tea
needs to ensure that such marketing tools are used for promoting product which are effective as
well as cheaper. Exhibitions are the best place to advertise product and communicate its value
and benefits to people.
Set up financial plan: For starting any new venture, the very first and basic requirement
of firm is finance. It is the factor without which no organisation can run. So, before starting a
venture, an entrepreneur needs to anticipate requirements of fund and then arrange sources by
which funds gets accumulated. Requirements are determined by assessing the amount needed in
every activity (Liao and et. al., 2016). A financial plan should be made by manager of Booker
Cafe which includes the information regarding the funds required in each activity. It should
include all the expenses that firm bear in order ton eliminate wastage of money.
P4 Assessment of capabilities and skills required to launch a venture
There are various skills that are needed to launch a new venture in the market. Some sills
that are required by an entrepreneur of Booker Tea are defines as below:-
Decision making skill: Entrepreneur should have effective decision making skill so that
they can take more decisions at the time when they required. This skill is also followed by
management of booker tea.
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Financial management :Management of finance is very important to any manager for
successful running of any business. Due to shortage of funds, sometimes business cannot run
properly. So it is important for every management to make proper financial planning.
Communication skill: Effective communication skill is very necessary for entrepreneur
to connect with their employees. It helps in conveying proper information and message to its
subordinate (Paradkar, Knight and Hansen, 2015).
Negotiating skill:It is very important for entrepreneur for having proper negotiating
power so they can easily negotiate with other people related with salary etc.
Planning skill:An entrepreneur is always having a good planning skill so that they can
make plan in advance about the future. So it is easy for them to achieve objectives at time anf
they can easily predict about future losses.
Problem solving skill:There are various issues that occurs in every business. These
influence Organisational culture and working . So, it is required for every entrepreneur to have
strong problem solving skills So that they can easily make the solution on time at time of
requirement.
Technical and knowledge skill:An entrepreneur is always having proper knowledge
related to its business .So, that they can easily apply their thought according to their knowledge
in their business.
TASK 3
P5 Various promotional channels and activities that will support in launching new venture
Promotional channels are used by firm to make people aware, attract, and induce to buy their
products, in preference of others .These are set of activities which are used by firm in the market
to convey their brand. For promoting business, marketing campaign is conducted by Booker Tea
to appeal more customers and develop loyalty among them. Their are various promotional
activities that firm use to promote its business (Paudel, Xiao and Yan, 2015).These are mention
below:-
Personal selling:-It is one of the most effective ways of customer relationship. This
selling works best when a good relationship has been built up over a period of time. This can be
time consuming one.
Sales promotion:-This include contests, offers, discount, passes, tickets, and so
on .Company used this method for giving extra benefits to their customers .
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Public relations:-It is planned and sustained effort to establish and maintain mutual
understanding between company and public.
Advertising:-Effective advertisement can improve brand value of company. It help in
reaching to large group of audience by communicating message to them (Sebastiani, Montagnini
and Dalli, 2013). This can be done through television , radio, newspaper which can also used by
Booker Tea for advertisement.
There are various online marketing channels which help the company in connecting
with many people .It includes-
Social media:-Currently it was using by many people , it also provide vast reach of
consumers to firm and it also help in increasing sales rapidly. By using this customers can easily
purchase any thing on time.
Video marketing:-It is one of most loved types of internet marketing channels due to
variety of various components. Many companies are using this kind of channel to attract more
people towards their products
P6 Development of promotional activities plan for pre launch and launch of new venture
Promotion is an important activity that helps in aware consumers about brand and
increase business popularity (Wilson and Post, 2013). Before launching and pre launching of
any product, company needs to develop a proper promotional activities plan. This plan involves
all those activities that facilitates in attaining large group of customers and retain them for longer
period of time. Some activities which should be considered by company at then time of pre
launching of new venture
involves:
Product analysis: It is required by firm to have proper knowledge about products which
it offers to consumers. Manager of Booker Tea needs to analyse their products carefully before
investing in that. For example, Booker Tea needs to understand as well as forecast future growth
of their fusion tea before investing in it.
Market analysis: For attaining high profitability and growth, market analysis is very
necessary. It helps the firm in determining marketing trends which assists in identifying taste and
preferences of consumers (Wood, 2011). This market analysis put direct impact on profitability
& sales of business. Market size, competitors, target customers, types of products etc. are the
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components that needs to be considered by Booker Tea. It is also required by firm to assess all
internal and external forces that directly or indirectly influence functioning of business.
Financial analysis: It is required by company to have adequate amount of fund before
launching a new venture. Financial analysis is very important in order to ensure smooth
operations of business. Manager of Booker Tea is needed to clearly define the budget of every
activity that is performed in firm (Klotz, Bradley and Busenitz, 2014).
Activities considered at launching time:
Web presence: It is required by Booker Tea to make their existence on websites as well
as adopt the system of online delivery so that quick services can be offered to customers.
Brand development: It is necessary for Booker Tea to increase its market presence by
developing brand. For doing this, it is needed by firm to provide hygienic tea with good taste
and low sugar so that it may not harm the health of people who consumes it. It will help in
attracting large group of customers.
Strategic positioning: At the time, when a new venture is launched, firm needs to assess
its strategic position in market and develop plans according to that. For taking effective
decisions, marketing strategy of rivals must be evaluated (Burns, 2017).
Digital PR & partnering: Social media, blogger sites etc. are the digital tools which are
utilized by company in order to make its existence in market. Use of this tool assist in increasing
popularity of Booker Tea and supports in its business expansion.
TASK 4
P7 Development of monthly itemised cash budget
Jan – may
Year 2013 Jan Feb Mar April May
Food Sales 37,820 38,147 40,103 42,060 43,038
Beverage Sales 18,650 13,650 14,349 15,049 15,399
GROSS SALES 56,470 51,797 54,453 57,109 58,437
Cost of Sales
Food 14,525 12,589 13,234 13,880 14,202
Beverage 6,515 3,412 3,587 3,762 3,850
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TOTAL COST OF SALES 21,040 16,001 16,821 17,642 18,052
GROSS PROFIT 35,430 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
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
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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 58437 56,445 47,812 51,132 6,71,388
-
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
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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 3582 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
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
P8 Suggested appropriate legal form of Venture
In order to perform operations and activities of business in an appropriate way, an
organisation must have a proper legal structure (Hoskisson, Volberda and Johnson, 2011). Good
organisational structure helps in proper functioning of business.
Partnership: It is one of the popular business form that are owned, operated and
controlled by group of people for the purpose of earning profit. These firms are easy to start and
is prevalent among medium and small sized business (Fernhaber and Li, 2013). Booker Tea is
one of the partnership venture in which 2 people are invested their capital. It is a legal business
form in which each member have equal share in losses and profits of company. The business of
Booker Tea runs under general partnership. It shows that all partners are equally responsible for
operations and activities of business and its success.
The major reason for choosing this form of business is that it is difficult for single
individual to invest large amount of capital for starting a business. So, if firm is operated in
partnership, the amount required in business is divided among partners and all of them invest
some percentage of money to start and run business (Kariv, 2013). They pool their resources so
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that funds can be arranged for starting a firm. Other major reason is risk which is also distributed
among partners if business is run under partnership. All the loss of venture are divided equally
among all, no one is solely responsible.
CONCLUSION
As per the above mentioned report, it has been concluded that an innovative and creative
idea is required for starting a new venture. An entrepreneur must have appropriate skills and
abilities which assist in running operations of firm smoothly. It is required by manager of
company to consider those factors which are necessary to start up a business such as resources,
capital, manpower, etc. Consideration of these factors helps in attaining objectives of company.
By the help of various promotional activities and tools, firm can easily communicate value and
benefit of product in market and enhance their brand image.
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REFERENCES
Books and Journal
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Psychology Press.
Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
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growth. Journal of Business Venturing. 28(5). pp.633-651.
Dutta, D. K., Li, J. and Merenda, M., 2011. Fostering entrepreneurship: impact of specialization
and diversity in education. International Entrepreneurship and Management Journal.
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Evers, N. and O’Gorman, C., 2011. Improvised internationalization in new ventures: The role of
prior knowledge and networks. Entrepreneurship & Regional Development. 23(7-8).
pp.549-574.
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.
Ghimire, K. and et. al., 2015. Optical properties of single‐crystal Gd3Ga5O12 from the infrared
to ultraviolet. physica status solidi (b). 252(10). pp.2191-2198.
Hoskisson, R. E. and et. al., 2011. Revitalizing entrepreneurship: The search for new research
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Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international
overview. Routledge.
Ke, W. and et. al., 2015. Efficient fully-vacuum-processed perovskite solar cells using copper
phthalocyanine as hole selective layers. Journal of Materials Chemistry A. 3(47).
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medicinal chemistry. 90. pp.124-169.
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Liao, W. and et. al., 2016. Lead‐Free Inverted Planar Formamidinium Tin Triiodide Perovskite
Solar Cells Achieving Power Conversion Efficiencies up to 6.22%. Advanced
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Sebastiani, R., Montagnini, F. and Dalli, D., 2013. Ethical consumption and new business
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Wilson, F. and Post, J. E., 2013. Business models for people, planet (& profits): exploring the
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