Launching a New Venture

Launching a New
Venture

Table of Contents
Introduction......................................................................................................................................1
PART 1............................................................................................................................................1
P1. Examine new venture and also discover target market and undertake competitive analysis
................................................................................................................................................1
P2. Examine intangible as well as tangible resources which are necessary to be undertaken by
a new venture..........................................................................................................................2
P3. Construct a proposal for launching a new business venture............................................3
M1. Assess a series of methods and techniques for competitive analysis to rationalize how to
achieve competitive advantage...............................................................................................4
M2. Examine the strengths and weaknesses of the new venture and establish areas of risk. 5
PART 2............................................................................................................................................5
P4. Discuss the skills needed for starting a new venture and the way to attain those skills. .5
M3. Discover the variety of skills and capabilities necessary for the launch and significantly
measure how they might be acquired.....................................................................................6
P5. Examine promotional activities & channels for supporting launch and also rationalize the
choice......................................................................................................................................6
P6. Describe a appropriate promotional activity plan for pre and post launch phase............7
M4. Assess an suitable promotional activity plan for both launch and pre-launch................8
P7. Discuss a monthly cash budget for the time of pre launch of venture and the first 12 to 18
months after the launch..........................................................................................................8
P8. Recommend an suitable legal form for business along with essential justifications.....10
M5. Critically assess monthly cash budget presentating one off costs, ongoing costs and
anticipated income post- and pre-launch..............................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Introduction
The launching a new venture is the process of converting an effective entrepreneurial
opportunity into an venture, it is one of the most essential activity that is carried out by an
individual. A new venture starts with an creative idea that is to be launched in the market
effectively for the purpose of earning profit and satisfying the needs of the community. There are
various steps involved in the process of starting new venture that needs to be considered by the
individual. This report highlights the detained analysis of launch of new venture which is a
Coffee shop named as Espresso Coffee shop near Hounslow Central Underground station.
Offering various types of coffee such as organic and seasonal coffee including excellent quality
of coffee beans around the globe. This report includes the analysis of the target market along
with the tangible and intangible resources needed to starting a business and various skills and
abilities required by the individual is also highlighted. In addition to this various promotional
activity for pre and post launch phase and required budget is also highlighted in this report.
various legal forms required for new business venture is also mentioned.
PART 1
P1. Examine new venture and also discover target market and undertake competitive analysis
“Espresso Coffee shop” is planned to be launched near Hounslow Central Underground
station, will be offering excellent quality of coffee such as organic and seasonal coffee and along
with the great quality of coffee beans around the globe. According to the preference depending
on the seasons the shop will be offering seasonal coffee to its customers keeping the demand and
needs of the customers at the priority list. In order to launch the shop effectively certain factors
and concepts needs to be considered as discussed below:
Target market: The target market chosen segment based on the lifestyle, taste and preference,
income and so on. In case of the chosen venture the target market will be coffee lovers,
millennial group and the group which prefers high quality coffee (Abualbasal and Badran, 2019).
Some of the feature of the target market as chosen base is highlighted below:
Psychographic factors: under this the target market segment is divided on the basis of
their purchasing behaviour, lifestyle as well as income level. The Espresso Coffee shop is
planning to target both middle and high income group.
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Behavioural factors: Under this the market segment is targeted on the basis of their
behaviour, their taste and preferences. As people prefers things according to the seasons so
Espresso coffee shop will be offering coffee according to the seasons.
Competitive analysis: The competitive analysis is an tool used to analysis the competition
available in a particular industry. In order to analyse the competition for the chosen venture the
Porter’s five force analysis is taken into consideration (Bauman and Lucy, 2019).
Porter’s five force analysis: It is one of the essential strategic tool used by the business
organisation used to analyse the competition in the industry, it involves mainly five forces which
helps in analysing the company’s competitive environment. In context to chosen venture the
analysis is highlighted below:
Competitive rivalry: It includes the level of competition present in the market. In case of
Espresso Coffee shop, the venture has to face lot of competition as the level of competition in the
coffee industry is relatively high because of the number of competitors available.
Threat of new entrants: If there are strong barriers on the entry of new firm then it will
create threat for them, in case of coffee industry it is easy for the new firm to enter into the
market. however the chosen venture will face high threat of new entrant because of less barrier in
the industry.
Bargaining power of Buyers: If the number of buyers are less then their bargaining power
will be more. In case of selected venture the bargaining power of the buyer will be high because
of the number of options available so they can easily shift form one brand to another.
Bargaining power of supplier: Under this if the numbers of suppliers are less than their
bargaining power will be high. There are large number of suppliers available from whom
company can buy necessary items.
Threats of substitute: In case of coffee industry the availability of substitute product are
more which will create threat for the venture, company needs to offer unique products in order to
deal with this (Busenit and Lichtenstein, 2019).
P2. Examine intangible as well as tangible resources which are necessary to be undertaken by a
new venture
There are various tangible and intangible resources available which are essentially needed
for the effective launch of new venture as highlighted below:
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