Launching a New Venture: Coffee House Business Plan

LAUNCHING A NEW
VENTURE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
P 1 New venture identifying specific target markets and competitive analysis..........................1
P 2 Determination of specific tangible and intangible resources that would be required for the
launch of a new venture...............................................................................................................2
P 3 Proposal to launch a new venture..........................................................................................3
P 4 Skills and capabilities required to launch a new venture and ways in which they are
acquired........................................................................................................................................4
P 5 Different promotional activities and channels that will support the launch..........................5
P 6 Promotional activity plan for both launch and pre-launch....................................................6
P 7 Cash budget for the pre-launch phase of the venture and the first 12–18 months preceding
launch...........................................................................................................................................7
P 8 Appropriate legal form for the venture stating and reason because of which those forms
have been chosen.........................................................................................................................8
CONCLUSION................................................................................................................................8
REREFENCES..............................................................................................................................10

INTRODUCTION
Venture is a kind of a project or an activity which is new and risky as it involves risk of
failure (Mullins, 2017). In order to expand a business every organization need to focus on
opening a new venture of their business at another location for the growth of the business. This
report will lay emphasis upon a coffee shop business named ‘Coffee House’ who is finally in a
position to launch a new venture. This report will lay emphasis upon development of a business
plan and action plan for launching of a new venture of Coffee House.
MAIN BODY
P 1 New venture identifying specific target markets and competitive analysis
Coffee House is planning to launch their new venture in the same city. They provide
different types of coffee and related food products to their customers that are available in
different sizes and quantity. Main target customers for new venture will be people up to age
group of 40 who loves coffee and coffee products. Other than this new venture will also have
book shelf for those individuals who come to have their coffee alone for their time pass. New
venture will also provide small fast food items as well with coffee products in order to attract a
greater number of customers.
Competitors Analysis
In order to analyse current competitors and competitive environment of the new Venture
Porters five force model will be used.
Competitive rivalry: Threat of this force is high because competition in this sector is extremely
high. There are various kinds of already established coffee brands such as Starbucks who are one
of the main and most important competitors present in the current competitive environment
(Muegge and Mezen, 2017).
The bargaining power of customers or buyers: Threat of this force is also strong as there are
many other options or substitute products available in the market. Not only this switching cost
from one product to another is also lower for the customers.
The bargaining power of suppliers: Threat of this force is moderate. This is because there re
various kinds of suppliers available in the market in large number who can supply required raw
material for the new Venture but there is no surety that all the suppliers will be providing
required raw material in the same price as others.
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The threat of substitution: Threat of this force is also moderate as there are large number of
competitors who provide similar products to their customers in competitive prices (Kuratko and
Hornsby, 2017). But New venture will be providing various kinds of additional products and
services to their customers because of which threat of this force reduces.
The threat of new entrants: Threat of this force is also moderate as establishment of new business
require large capital investment and various other resources because of which it becomes
difficult for a new entrant to enter in this sector because of which threat of this force reduces.
In order to understand strengths and weakness of the new venture, SWOT analysis will be done.
Strengths:
 Provides different kinds of coffee and
coffee products that are available in
different sizes for the customers.
 Provision of additional services like Books
for the customers.
 Themed decoration
Weakness:
 Limited staff members for production of
products and providing excellent services
to the customers.
 Selling of rare type of coffee at higher price
because of which it is difficult to be sold.
Opportunity:
 Fluctuating prices of coffee products and
providing discounts and various kinds of
offers in order to attract more customers
Threat:
 Increasing competition in the market
 Provision of coffee products in lowest
possible price by the competitors.
P 2 Determination of specific tangible and intangible resources that would be required for the
launch of a new venture
There are various kinds of tangible and intangible resources that will be required for
launching of a new Venture. For launching new venture of Coffee House five (tangible and
intangible) resources have been identified and each of then has their own benefits which will
further help in gaining competitive advantage:
 First resource required is expresso Coffee marker. This equipment ill helps the new venture
to make different kinds of coffee as per the taste, need and requirement of the customers
(Shirokova and et. al., 2017).
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