Launching a New Venture

This report discusses the process of launching a new business venture called The Fortune Shop, which sells retail products online and offline. It covers topics such as target market, competitive analysis, internal analysis, resources, skills and capabilities, and marketing strategy. The report also provides insights into the legal requirements associated with the new business venture.

Launching a New Venture

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Business Plan.....................................................................................................................................3
Competitive Analysis........................................................................................................................4
Internal Analysis of new business venture.........................................................................................5
Resources..........................................................................................................................................6
Skills and capabilities........................................................................................................................7
Marketing Strategy............................................................................................................................8
Cash Budget......................................................................................................................................9
Legal Requirements.........................................................................................................................10
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................12

INTRODUCTION
Business venture is defined as an organisation operates to generate profits out of the
operation function. This report is based on the case study of establishing a business plan in
respect to opening a new business venture. New business venture is call as The Fortune Shop.
Organisation is engaged with selling high quality retail products over both mediums online
and offline. Henceforth, report will emphasis on target market for the new business venture.
Competitive analysis will also conduct in respect to the new business venture. Critical
analysis will also summarise in this report to project the strength and weaknesses associated
with the new business venture. Resources needed to operate the business venture will also
specify in this report. Furthermore, the aim of the report is to demonstrate all the skills
required to launch the successful business venture. Report will also summarise the marketing
strategies require to grow the new business venture. Comprehensive cash budget will also be
a part of this report. The report will also provide a brief overview in respect to the legal
requirements associated with the new business venture.
MAIN BODY
Business Plan
Target Market
The Fortune Shop is a retail organisation established in United Kingdom. The
organisation is engaged in selling retail products such as food products and clothing line over
online and offline modes. Target market fort the organisation can be indicated as the retail
market attached to the business environment in United Kingdom in the initial states of the
new business venture. Retail market has been the major market sector as it caters wide range
of target customer base (Annan, 2017). Product range that deals by The Fortune Shop is also
well diversified that will drive business venture to serve the target market in both segment
food products and clothing products irrespective to any gender and asexuality. Retailing is
among the key businesses as the sector has emerges as the leading market sector due to high
demands of retail products. Organisation will sale all leading food brands. As the new
business venture is also engaged in selling high quality clothing products so the target market
for the new business venture also comprises with the clothing and fashion retail sector. The
organisation is also engaged in selling its products over internet so the target market will also
involve e-commerce trades, websites and all social media channels that consist up the sources

of online retailing. Online retail trade has recently emerged all across the globe which also
expanded the target market secretor for The Fortune Shop. With the support of online
retailing business venture will also cater well established target market of retail over internet
and e-commerce web sites.
Competitive Analysis
Retail sector is among the crucial market sector associated with the business
environment all across the globe. The sector has always been a part of huge demands of retail
products as the sector consisted the routine products such as food items. Due to huge
demands of retail products the sector has been among the major growing sector in the
business environment all across the globe. Retail sector in United Kingdom consist is growth
at the effective rate of 10% (Boddewyn and Rottig, 2017). The entire retail sector is also
contributing effectively in the gross domestic product of the United Kingdom economy at the
rate of 5%. All such figures indicate the high growth rate and demands of the retail products
in the markets of United Kingdom. Due to high demand sof retail products in United
Kingdom the entire sector is among the highly competitive market sector associated with the
business environment of United Kingdom. Big retail multinational companies like Marks and
Spencer, Asda, Wal-Mart, Tesco and other globalised retail companies are engaged in selling
retail products in United Kingdom. The fortune Shop needs to compete with all leading
companies engaged in the retail market of a United Kingdom in order to sustain and grow in
the market. Asda Company has been among the most dominating organisation in the retail
market of United Kingdom.
The Fortune Shop will get huge competition from all leading and dominating retail
companies operate in United Kingdom. Organisation is also aiming to sale its products over
internet at the website of the business venture and other social media channels. As The
Fortune Shop will sale its products at the stores of the organisation and also over internet so
the organisation needs to face competition over both online retail market and offline retail
market also. In case of online retailing companies like Amazon and other e-commerce
companies will also cater the tough competition to the new business venture. E-commerce in
United Kingdom has been the dominating aspects factor for retail market. Contribution of the
e-commerce business in the overall retail outcomes In United Kingdom has recorded more
than 25% as per the recent statistics (Campbell, 2017). Growth rate of the e-commerce
businesses is also registered as the 10% which also indicate about the effective dominance of
the online retail businesses in United Kingdom. Along with big retail companies and e-

commerce entities involves in retail sector trade the new business venture will also face huge
competition in form of small retailers like shops, grocery stores, clothing outlets and other
small departmental stores. Small retail outlets also generate high returns out of the business
operations.
Competition for The Fortune Shop will be a part of both the segment food and fashion
retail for the new business venture. Clothing has been one of the dominating pillars in the
fashion retail. Business venture will face tough competition from big brands like Jockey,
Armani, FENDI and all other top brand involved in clothing.
Internal Analysis of new business venture
Internal analysis of The Fortune Shop wills emphasis on the strengths of the business
venture and also the weaknesses associate with the business venture.
Strengths of The Fortune Shop
The Fortune Shop is engaged with the following strengths that will support the
organisation in getting the effective success in target market.
Diversified products: The product range of The Fortune Shop is well diversified in nature.
Organisation will sale multiple food products like groceries and clothing products for all
gender and asexuality (Derudder and Witlox, 2016). Organisation will serve all top brand sin
clothing and food products. The well diversified products range of the business venture will
provide a complete shopping experience to all its potential customers. This will be among the
key strengths of The Fortune Shop as the business venture will be able to meet up all needs
and demand of the potential buyers with the support of well diversified products portfolio.
Affordable cost: The objectives of the new business venture is to provide high quality
clothing and food products at the most affordable price range to improve the shopping
experience of all retail customers (Lipschultz, 2017). Business venture will contains very low
profit margins to meet up its cost and standard profitability percentage margins for further
growth. Low profit margins will allow The Fortune Shop t keep the selling price of products
low. Product selling price is a key element that put huge impacts over the decision making of
the consumers. Business venture is aiming to attract the buying decision of customers with
the support of low pricing strategy.

Strong supply chain management system: The Fortune Shop has developed strategic
alliance with all distributors of big brands. Supply chain network play an effective role in
availability of all trendy products (O’BRIEN and et.al.,2016). Strong supply chain will
support organisation in ensuring availability of all trendy and fashionable retail products.
Proper availability of the trashy products will drive the growth of the new business venture in
the market.
Weakness of The Fortune Shop
Weaknesses associated with The Fortune Shop can be summarises in the following
manner.
Inexperience in operations: The Fortune shop is the new business venture aiming to
establish the business organisation in the retail market of United Kingdom. As the business
venture is new in the market lack of experience can be indicated as the key weakness of the
organisation (Stone, 2016). In the mid of aggressive market competition to grow and sustain
in the market proper knowledge of the sector is contains as one of the pillars in the growth of
organisation. Due to inexperience the organisation face plenty of plenty of issues in framing
strategies and operational policies.
Limited resources: The Fortune Shop is the new business venture. In the initial stage of the
business the potential resources are limited for organisations. Resources play crucial role in
operating business functions. Limited amount of resources will restrict organisation in
implementing all strategies efficiently.
Aggressive market competition: Aggressive market competition is also the key weakness of
the organisation. Competition will negative affect the sales potential of the organisation. It
can also influence the business growth potential of The Fortune Shop.
All the above internal analysis of The Fortune Shop indicates towards the strengths
and weaknesses of the business venture.
Resources
Resources play huge role in operation business operations. Resources of The Fortune
Ship are segregated into tangible resources and intangible resources. Resources of The
Fortune Shop can be summarises in the following manners.

Tangible Resources: All such resources which can be physically experiences and
channelizes are call as tangible resources. The Fortune Ship is the new business venture so
the organisation is consists up with the limited amount of tangible resources. Tangible
resources can be segregates in different forms like financial resources, human resources,
products, suppliers, infrastructure, information technology system and other tangible
resources such as communication system (Stott, Stone and Fae, 2016). Tangible resources
play an important role in the growth and success of the business organisation especially in
case of new business venture. The Fortune Shop will be able to operate its business functions
efficiently with the support of different tangible resources of the organisation. Among all
tangible resources financial resources will play the most crucial role in improving the growth
potentials of the organisation.
Intangible Resources: Intangible resources are consisted up with all such resources which
can’t be physically verified and experience. Such resources can be observed or feel but can be
seen. Resources like goodwill, brand value, customer loyalty and other intangible resources.
Intangible resources play dominating role in the growth and success of the new business
venture. As the customer loyalty, brand value and goodwill play huge role in entertaining
effective sales and profitability for the business organisation.
All the above elements indicate about the suitable resources needed to The Fortune
Shop to achieve growth in the target market.
Skills and capabilities
In order to achieve growth and suitability business ventures needs to possess skilled
work force. Following methods to develop the skills will play huge role in improving the
capabilities for the work forces associated with the business ventures.
Training: Training like Information technology skills, communication skills, decision
making skills and other associated skills can be catered to all employees associated with The
Fortune Shop can be granted (Szmelter and Woźniak, 2016). Training will grow the
potentials of employees engaged with different functional role in The Fortune Shop. Training
will support employees in achieving high level of efficacy in operations.
Encourage employees: Management of The Fortune shop will also motivate its employees to
grow different skills like communications skill, decision making skill and other associated
skills in order to improve the operational efficiencies of employees. This will improve the

interest of employees in order to improve all such skills. This is an effective method to
develop skills by encouraging employees to put efforts by their own. Management can follow
the strategy to convey different advantages involves in improving professional skills of
employees.
Both the methods are effective techniques to grow skills in employees.
Marketing Strategy
Marketing is defined as a process to promote company’s products and services in
order to improve the sales potential of such products in target market. In the existing business
environment many promotional strategies are available for The Fortune Shop to promote its
products. Marketing in today business environment becomes very professional as it put huge
impacts over the sales potentials of the organisation (Tan and Zhan, 2017). As the retail
sector has emerged immensely marketing becomes more crucial for all organisation in order
to sale its products and services. Following promotional strategies can be channelizes by The
Fortune Shop in order to expand the growth potentials of the new business venture eve at the
initial stage of the business life cycle.
Paid advertising: Paid promotions are among one of the most common practice in order to
promote products of companies in market. Under this promotional strategy The Fortune Shop
will run its promotional video over different communication tools like TV, newspapers,
radio, bill boards, banners and posters so that all potential consumers associated with retail
sector can brief about the products of the organisation. These all platforms are really too
helpful in terms promoting products and services in the market in pre-launch and post launch.
Initially organisation needs to make strategic contracts with advertising agency to develop an
effective promotional video. After ad making process, marketing team should pay decided
amount or fund to that promotional or advertisement platform where it wants to run its paid
advertisement. With the support of this strategic tool organisation can entertain effective sales
turnover even at the initial stage of the business.
Social media marketing: The Fortune Shop will also channelize social media marketing for
its promotion perspectives. In today’s highly competitive, dynamic and modern world, social
media marketing strategy has become one of the major needs of the marketing campaigns of
the organisations. Basically, most businesses are taking huge advantages from this marketing
strategy, because this provides low-cost advertisement facility. In this strategy The Fortune
Shop will channelize its promotional videos ad campaigns over different social media

network such as Facebook, Instagram and Twitter, in which these platforms have large
numbers of users (Turner and Endres, 2017). This is an effective market strategy organisation
can channelize as it will improve the products demands of the organisation. As per the
research conducted by the marketing team of The Fortune Shop almost majority of potential
customers of the organisation in UK are active over all such social media networks. This
strategy will support business venture in both time periods pre-launch and post-launch.
Sponsorship: There is sponsorship marketing strategy will also provide an effective brand
promotion facility to business venture. The Fortune Shop will sponsor different events and
programmes in various market segments to promote its products. In today’s highly
competitive business environment this is an effective marketing strategy that not only
improves the sales turnover of the organisation but it further expand the growth opportunities
of the companies. Currently many businesses and companies choose this marketing strategy
in their promotional activities, because this strategy highly attracts lots of new people towards
brand.
These all are some major marketing strategies that can be channelizes by The Fortune
Shop in its different promotional activities. In business venture’s initial stage, marketing
management should employ these all strategies, because it is necessary for the new business
venture to promote all its products along with the brand promotion. Digital marketing is also
further considers as the trendy promotion strategy all companies channelize in order to
promote its products. The Fortune Shop will use social media as its primary promotion tool in
order to improve the product demands in the market.
Cash Budget
Cash budget is the projection of all the cash expenses that is a part of the launch of the
new business venture. Management of The Fortune Shop has done its financial planning as a
part of its launching of business venture. A productive pre-launch cash budget for the
business venture has been attached below;
Area of expenses Amount (£)
Legal formalities £600
Promotion £2000
Raw material £2700
Salary and wages £1000
Transportation £700

Total £7000
This cash budget includes all such expenses that is associated with the pre-launch
period of the new business venture (Wekerle and et.al., 2017). The organisation needs also
requires funds for the post launch period of business. Cash budget for at least 18 months’ post
launch time period has been attached below;
Area of expenses Amount (£)
Legal formalities £300
Promotion £1000
Raw material £1250
Salary and wages £1500
Transportation £1400
Total £5450
On the basis of the requirements of the business venture in both pre-launch and post-
launch time periods the above cash budgets has prepared. All necessary expenses has
involved in the budget that will play a role in launching of new business venture.
Legal Requirements
Legal requirements associated with the new business venture can be summarises in
the following manners. As per the pre-launch and post-launch of business venture following
legal requirements needs to be fulfilled by The Fortune Store.
Registration: Registration of the business organisation is among the primary legal need
associated with The Fortune Shop. Organisation needs to take the legal license from the
governing body in United Kingdom.
Contract Law: This is another major legal The Fortune Shop needs to engage with. Different
contracts also needs to sign with stakeholders, like; suppliers, investors, advertisement
companies etc (Vardar, 2018). This legal term supports in solving any conflict may arise in
order to operate business functions.

Employment Law: The Fortune shop needs to comply with employment law for both periods
pre-launch and post-launch. In order to conduct different functional roles in the organisation
management needs to hire work force with the support of these employment laws.
The above mentioned points indicate about the key legal requirements needs to follow
by The Fortune Shop.
CONCLUSION
This report has summarised about target market for the new business ventures.
Competitive analysis for the new business venture has also summarised in this report.
Strengths like diversified products range, low cost and weaknesses like inexperience has also
concluded in this report. Tangible and intangible resources require running the business has
also concluded. Methods like training and self encouragement are also specified to grow the
skills of employees involved in different functional activities of the new business venture.
Marketing strategies like social media marketing, holding has analysed in this report. A
comprehensive cash budget is prepared for the new business venture on the basis of different
needs of organisation. Legislative requirements such as employment law, contract law and
other legislative needs have also summarised to launch a new business venture.

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