Launching A New Venture Assignment Solution
Added on 2020-10-05
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Launching A New Venture
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 New Venture of chosen organisation and identifying specific target market andcompetitive analysis...............................................................................................................3P2 Tangible and intangible resources that would required for launch of new venture..........5M1 Investigate and explain a new venture for your chosen organisation, identifying specifictarget markets and undertaking competitive analysis.............................................................6M2 Discuss the strengths and weaknesses of the new venture and determine areas of risk.6TASK 2............................................................................................................................................6P3 Proposal to launch new venture........................................................................................6P4 Skills and capabilities required to launch new venture.....................................................8M3 Explore the range of skills and capabilities required for the launch and critically assesshow they might be acquired or developed applying appropriate methods.............................9TASK 3..........................................................................................................................................10P5 Different promotional activities and channel to support launch of new venture............10P6 Promotional activities plan for both launch and pre launch of new venture...................11M4 Evaluate an appropriate promotional activities plan for both launch and pre-launch...12TASK 4..........................................................................................................................................13P7 Monthly cash budget for pre launch and first 12-18 months preceding launch of newventure..................................................................................................................................13M5 Justify an itemised monthly cash budget showing one off costs, on-going costs andanticipated income post- and pre-launch..............................................................................15CONCLUSION..............................................................................................................................19REFERENCES..............................................................................................................................20
INTRODUCTIONIn modern era, a person who is launching a new venture should have knowledge abouttechnologies and tools used by organisation already running their business at national andinternational level. Globalisation is process of integration and interaction among various groupof people, government and companies. With increase in multifaceted and complex phenomenon,globalisation is regarded as form of capitalist that integrate national and local economies intounregulated market and global economy (Barbero and et. al., 2012). This provide helps to smallmedium enterprises to establish new business at market because of support from government andeasy access of loan. Fashion and Trends is planning to start new business of clothing at Englandmarket which deals in cloths for youngster at small level. Here, will be discussing about targetmarket and competitive analysis of Fashion and Trends along with requirement of tangible andintangible resources in business. Proposal is created and skills and capabilities required isanalysed and developed at Fashion and Trends. There are different promotional activities whichsupport both launch and pre launch of organisation. Fashion and Trends have to make monthlycash budget for requirement of money.TASK 1P1 New Venture of chosen organisation and identifying specific target market and competitiveanalysis.Fashion and Trends is planning to start up new venture of clothing for youngsters. Thisis small enterprise which manufacture clothes for both boys and girls. The idea behind suchbusiness is to bring creative and new trends clothes for target customers. This firm will belaunching business at England because it provide lots of benefits to new start up. Company wantsto survive in competitive market of clothing which is already existing in England. As it isdifficult for any company to start up new venture but if they establish at competitive market thenpeople will be aware of it very easily. Clothing retailer is facing challenging operation from pastfew years in England . Price has fallen down due to widespread discounting and competitionwhich resulted into growth of revenue. Retailers have to work hard for retaining and drawingconsumers from department stores, rival supermarkets and online (Barringer, 2015). Marketresearch has been done for survival and sustainability in market.
According to IBIS World report, clothing retailing industry have low barriers for entrantand less capital cost required which leads to higher success. Important cost which incurred forestablishment are wages, rent and purchase. It is difficult for entrepreneur to decide location forfirm which has positive and negative impact. For example, if company located business wherethere is large number of footfalls on daily basis then it is great opportunity for success and viceversa (Burns, 2017). Fashion and Trends is planning to start business in England as it has higheconomy which has confirmed through market research. Due to change in taste, preferences andcompetition market is changing. According to fashion and apparel industry report, it is expectedto rise revenue from $481.2 billion in 2018 to $712.9 billion by 2022. CAGR is expected to settlebetween 2017 and 2022 by 8.8% in US, 8.7% in Europe and 14.1% in China. The Hereidentifying specific target markets and competitive analysis of Fashion and Trends describedbelow:Identifying target marketsIt is very important component which is considered by organisation to decide objectivemarket to achieve end goal for creating bigger benefits. Every firm need to identifies their marketand produce as per need, want and preferences. In this scenario, Fashion and Trends have todistinguish particular target for assembling and delivering quality goods. Target means group ofcustomers within available market which aims to provide resources and marketing efforts. Itconsists of people having similar characteristics such as location, age, lifestyle and income.Fashion and Trends has classified target market on basis of following segment such as:Geographic- The number of people living in area is called geographic factors. Fashionand Trends has target individual of United Kingdom which is largest country assist in increasingsustainability and profitability of firm.Demographic- When market is divided on basis of gender, religion, age is demographicfactors. Fashion and Trends has focused all types of religious, age group of 18 to 25 people whoare college going students or youngster for providing goods.Competitive AnalysisFashion and Trends is engaged in providing variety of products to their target people.There is large competition existing in fashion industry which Fashion and Trends have toanalysed properly. Competitors are Next Plc, Marks and Spencer, Burberry which are providinghigh quality goods (Chrisman and et. al., 2012). Here, it is responsibility of Fashion and Trends
to have unique and differentiate goods from competitors to survive in market. It helsp inknowing everything about parties involved in competition.P2 Tangible and intangible resources that would required for launch of new venture.Fashion and Trends is a new start-up company that designs market and sells apparelmerchandise. This company will be growing industry, producing billions of dresses, suits andother clothing and accessories that customers buy. There are various resources required inbusiness for sustainability and profitability in market. Out of which Fashion and Trends uses tworesources they are tangible and intangible which are described below:Tangible ResourcesTangible resources includes cash, inventory, machinery, land or buildings which can beeasily dissolve and have a set value. These are analytic in accounting as they help a company tounderstand it's financial status when entered on balance sheets and financial statements. Tangibleresources are only assets employees in company that can be seen, touch and can be valued easily.These are of two types that company may own, current(things that the company will use for oneyear)and fixed Assets(things that company will use for more than one year). Fashion and Trendshas marketable securities, cash and inventory as current assets and equipment, building andcomputers as a fixed assets. Company will use fixed assets to produce money as it earns fromselling fashionable clothes called revenue (Ciabuschi, Perna and Snehota, 2012). ThereforeFashion and Trends take great care to track and manage tangible resources that can remainfinancially stable and carry on with operations.Intangible ResourcesIntangible resources are long term resources of a firm but have no physical substance andusually hard to measure. The economic system is based on knowledge which representsintangible assets and form an necessary part of the company’s value. Transformation of theseassets into tangible outcomes is a new way of reasoning and viewing company management andhuman capital. Fashion and Trends has intangible resources as trademark, brand, Knowledge andpatent. This company need to use intangible assets that give individual selling points and impactbusiness worth in away that it wouldn't be used by any other company. These assets play animportant factor in a buyer paying a premium for Fashion and Trends company (Curley andFormica, 2013).It also includes human, financial and physical resources described below:
Human- It include people such as executive, manager, workers and staff required inbusiness.Financial- They make proper budgeting and planning for business to make decision.Physical- It includes machinery, building and land.M1 Investigate and explain a new venture for your chosen organisation, identifying specifictarget markets and undertaking competitive analysisFashion and Trends is new organisation which deals in providing trendy clothes to peoplein order to fulfils their need and requirement. This has focused target market which covers agegroup between 18-25 to provide latest and trendy clothes to individual. It has target whole peopleof United Kingdom for fulfilling their requirement in effective and efficient manner. There aremany competitors of clothing industry in market such as Marks and Spencer, Next Plc and other.The respective firm need to analyse market in effective and efficient manner so that they cansurvive in competitive market.M2 Discuss the strengths and weaknesses of the new venture and determine areas of riskThe strengths and weaknesses of new venture are as follows:Strengths- It can earn maximum profits and gain because it is new venture whichprovide trendy clothes to their consumers in order to fulfils their requirement. This organisationmoves with changing market and world so that both individual as well as organisation can getbenefits.Weaknesses- The main weaknesses of this firm is to survive in competitive marketbecause of huge competition in fashion industry. As it focus on trendy clothes only which is notaccepted by every consumers.The various areas of risk can be in terms of human factor, market change, change inrules, policy, law, cash flow risk and others.TASK 2P3 Proposal to launch new ventureEntrepreneur with helps of other business partner should make credible proposal whichclearly specified actual target that can be achieved through new firm Fashion and Trends. Thisproposal is made under guidance of professional and specialist in order to achieve vision,mission, objectives and clearly communicate with employees of organisation. This proposal can
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