Entrepreneurship Education Impact and Innovation

This assignment explores the intersection of entrepreneurship, education, and innovation. It requires analyzing the effects of educational specialization and diversity on fostering entrepreneurship (Evers & O'Gorman, 2011). Additionally, it delves into the improvisational internationalization tactics of new ventures, emphasizing the roles of prior knowledge and networks (Evers & O'Gorman, 2011). Furthermore, students are expected to review innovation strategies in start-ups, questioning whether ideas drive voids or lack resources/capabilities (Paradkar et al., 2015), while also examining case studies like Eataly for ethical consumption and new business models (Sebastiani et al., 2013). Lastly, students will analyze a process model of academic entrepreneurship (Wood, 2011) and evaluate progress in photovoltaics research (Paudel et al., 2015).

Launching a New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Identification of target market and understanding competitive analysis...........................1
P2 Tangible and intangible resources required for new venture............................................2
TASK 2............................................................................................................................................3
P3 Business proposal to start new venture.............................................................................3
P4 Assessment of skills and capabilities needed to launch new venture...............................5
TASK 3............................................................................................................................................6
P5 Promotional activities to support launch of venture..........................................................6
P6 Development of promotional activities plan for launch and pre launch of venture..........7
TASK 4............................................................................................................................................8
P7 Itemised cash budget for business.....................................................................................8
P8 Appropriate legal form for venture setting........................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Globalisation highly influence small scale industries by giving them chance of business
expansion so as to attain growth in market. Setting up a new business amid rapid alterations and
increased competition is full of challenges. Firm introduce innovative goods and services in
order to gain competitive edge over competitors (Baum, Frese and Baron, 2014). Before setting
up a new venture, it is very essential for an individual to consider various factors such as
availability of resources, location, target market, skills, manpower etc. Apart from all this, the
main thing that is required for starting any business is a unique idea or concept which helps firm
in attaining success and growth and distinguish it from its rivals. Foodies Point is a new start up
venture which deals in fast food & beverages. The innovative idea behind launching this
business is to serve pizza to customers with customized toppings. This report includes
determination of resources required to launch a new venture and development of a credible
proposal. Assessment of skills and capabilities as well as promotional activities are defined that
supports in introducing new business. Apart from this, cash budget is prepared for pre launch
phase and appropriate legal form for venture is choose in this project.
TASK 1
P1 Identification of target market and understanding competitive analysis
There are different factors which affect business and it is essential to perform task as per
requirement of customer. Restaurant is the sector which is associated with food which is very
demanding sector. Identification of target market is very essential for every business organisation
as it helps firm knowing about their needs and requirements. There are many policies which
management of Foodies Point has to change due to change in business environment. Food
industry is the sector where competition is very huge and hence it essential that company has to
do perform activities which provide edge over other competitors. It is essential that company has
to perform activities which help them to compete with external parties.
Identification of specific target market
There are many restaurants which are essential to perform business and there are different
things which has to be taken care by entrepreneur before starting business. For effective product
and service marketing, it is very essential to tailor sales and marketing efforts in order to
particularly reach the population segment that will more likely to buy that product or service. It
is very crucial for firm to first clearly identify the target market so that efforts, funds and
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resources can be more efficiently spent. These days pizza is very famous among young and elder
generations. These days restaurants are dealing in pizza segment and serving varieties of pizza,
but sometimes there are different demand of customer. In this case company fails to satisfy
customer (Douglas, 2013). So to resolve this issue Foodies Point is coming with customised
topping over pizza base. They get this idea so older people can also enjoy pizza as per their
choice. This idea can be implemented in better way as customer can choice topping as per their
choice. Target customer of Foodies Point is 20-45 year individuals. This age level is chosen
because there is a craze in people in age from 20 to 30, and after that the target is also exceed
from 30 to 45 because people in this age makes choice due to some office meetings, etc. in the
restaurants.
Competitive analysis
These days scope of restaurant is increasing but at the same time competition is also
increasing. In food industry, high competition is exist in market and there are many firm
available in market that offers fast food and beverages. Therefore, it is very essential for foodies
point to properly analyse competition that exist in market place and get proper understanding
about its rivals. So it is essential to perform activities after analysing all related factor. To make
business growing and competitive factor has to be considered. Analysing of competitors policies
can be done through different sources which are useful and effective too (Dutta, Li and Merenda,
2011).
Market analysis
Before entering into new market or launching a new venture, it is very essential to do
proper market analysis. It is a qualitative and quantitative assessment of market. The main aim
behind doing this analysis is to identify market attractiveness and to get proper understanding
regarding its evolving threats and opportunities as they relate to weaknesses and strengths of
company. Foodies Point come with concept of customised topping after analysing market.
Through investigation of market their will be possibilities that management has to frame policies
effectively and then use of various techniques to overcome it. There are different competitors in
industry, where to set up business, complementary services to be offered, etc. can be identified
through market analysis.
PESTLE Analysis:
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This analysis is done for knowing about the effect of the macro environmental factors on
the working of an organisation. For analysing the impact of different environmental factors, this
analysis focuses on six factors and on the very basis the effect is judged which are discussed as
under:
Political Factors: These are the factors which affects the working of a company due to the
intervention of government of the company such as political stability, tax policy, labour law, etc.
are covered under this aspect. As the trends of the food industry regularly changes so it is
important for the company to adopt those policies which can be easily changed and rectified
according to the need of change.
Economical Factors: These are those factors which creates effect on the working of an
organisation because of changes in the exchange rates, currency rates, inflation, etc. all are
covered under this aspect. Food interest rates, taxation policies, and disposable income of the
consumer also affects the demand and opportunities in both a positive and negative ways to the
company.
Social Factors: These are those factors which can be defined as the demographic characteristics,
norms, values of the people living in a society. The choices of people also affects the working of
this restaurant as it needs firstly to know about the needs and wants of the customers that what
kind of products they want such as veg or non veg, etc.
Technological Factors: These are the factors that relate to some or the other technological
advancements which impacts upon the working of an enterprise. Favourable change in the the
technology can create opportunity for the company and adverse change in the technology can
create negative effect on the working of the company.
Legal Factors: These are those factors which affects the working of a company such as specific
laws which every company has to follow. The restaurant can also be effected by this factor as
non fulfilment of these laws will lead to the negative, adverse and more government intervention
in the working of the company. So to avoid this intervention the company is required to follow
all the guidances and rules provided by the government.
Environmental Factors: It refers to those factors such as weather, climate, pollution, climate
change which creates a negative or positive affect on the working of a company are
environmental factors. Companies doing more pollution also have to face more government
intervention than others, many companies also have put pressure on fulfilling the corporate social
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responsibility to avoid government intervention and make their contribution towards the
environment. So the restaurant should also make his own contribution towards it.
P2 Tangible and intangible resources required for new venture
To start a business there is requirement of some resources so this helps company to
achieve business objectives. Proper availability of resources helps firm in attaining high growth
and long term success in market. There are many options through which organisation can
provide growth to its business but it must be used in best way. There is requirement of tangible
as well as intangible resources to start new venture Foodies Point.
Tangible Resources- In this type there are resources which can be touched and seen.
Land, machines, furnitures, manpower, land etc. are included in tangible resources. There is
requirement of financial resources and hence this requirement can be fulfilled by various options
provided by financial institutions. Main objectives while starting business is to place assets
through cheap and easily available resource (Evers and O’Gorman, 2011). Foodies Point need
various its of storage medium to keep their food item useable, so they need to gather those
machines through best alternatives. It is very essential for firm to ensure that adequate amount of
finance and other resources are available to it so that all the business operations can run
smoothly. The tangible which are required in order to start a new business venture are the cash
and cash equivalents, business premises, property or land, machinery and equipment, IT
Equipment, investments, stock in hand, all are considered in tangible assets of the company.
Intangible Resources- These resources are beneficial for company to achieve business
objectives. These are the long term resources of a business enterprise, but they haven't any
physical existence. There are few things which cannot be seen but they are necessary to make
business exist. Good environment, trademarks, patents, etc. are intangible resources which has to
taken care by entrepreneur of Foodies Point. Brand name of company “Foodies Point” is
considered as indefinite intangible asset as it stays with firm as long as it continue its operations.
In initial days of starting there are not many employees in firm so it is essential to perform
activities which create good environment and new employees are also aware of trends
organisation is following. This helps in increasing image of company. In order to start a new
business venture, the intangible assets which are required are technology, engineering processes,
computer software, customer relationships, contracts, franchises, trained and competent workers,
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licenses, permits, goodwill, marketing and advertising campaigns, etc. all are included in
intangible assets of the company.
TASK 2
P3 Business proposal to start new venture
When person thinks to start new business there is requirement of proper planning
regarding future activities. There is allocation of resources which helps in making business idea
come true. Before starting business there is requirement of framing proposal for which business
activities can be planned (Ghimire and et. al., 2015). Business plans helps in setting code and
conduct and there will be possibilities of better results. Business proposal prepared for Foodies
Point is as under-
Executive Summary- Firstly individual has to analyse market to know about what is
missing in society. There are different ideas which is generated in mind of entrepreneur when he/
she thinks to start business. So it is essential to come up with one options which is most relevant
for society as well as earning profit. To overcome this entrepreneur prepare executive summary
of the idea. This helps person to know what are important aspects which has to be taken care.
Executive summary bridges gap between what entrepreneur thinks and how to achieve it.
Identify Product and services- In this step entrepreneur thinks about product and
services which has to be launched in society. There is some specific reason behind this idea.
Foodies Point analyse market and came to know that some customer do not prefer pizza due to
its topping or because of health issues. So Foodies point come with an idea of customised
topping in which they provide pizza as per the requirements of customers. They also add such
toppings on Pizza which do not harm health of customers. They are aware that older people are
health conscious so they keep target to them.
Develop marketing strategies- This is one of the most essential component to make
business growing. Development of appropriate marketing strategy assists firm in gaining high
competitive advantage in market. There are many strategies which has to be farmed by
entrepreneur for market their product and services. Food applications, food bloggers, online
advertisement, etc. are some trendy sources through which company can market their product.
Apart from this, there are some other sources also such as making their own websites, food
application etc. that can help firm in getting more orders from customers. But as in case of
Foodies Point, their is requirement of TV advertisement because they can trap older people their
5

easily. As new business has shortage of funds also it is essential that company has to adopt
sources which are less costly and impactful (Ke and et. al., 2015). They can advertise their
product in exhibitions also.
Set up financial plan- Finance is essential component to start new business. To start
venture entrepreneur must analyse funds requirement and then analyse how to arrange those
funds. This is possible when entrepreneur is aware about costing of different techniques. He/ she
must use emphasise on appropriate expenses, so there will be no wastage of funds. A proper
financial plan needs to be made for Foodies Point before starting business and manager also
requires to formulate a budget in which adequate amount of funds are assigned for each
activity. This will help in performing all the activities in an appropriate manner.
Human Resource: HR department plays important role in growth and success of Foodies
Point. Manpower is the crucial factor that leads firm towards success and growth so, it is
essential for firm to hire skilled and competent employees for performing business operations.
Manager coordinate with all the departments so that activities and operations can be performed
in better and excellent services related to serving of food is offered to customers.
Market: The target market of Foodies Point is all age group of people but they are more
emphasizing on youngsters as they like more to eat pizza or any other new food product. People
now a days are fond of food. They like to eat different kinds of food items of new taste. So,
people of every segment is targeted by firm.
Product: New and innovative product of Foodies Point is customized topping Pizza in
which toppings on pizza are made according to requirements of customers. Along with this, firm
also offer other food items of with good taste.
Service: In terms of services, Foodies Point provide excellent and quick delivery of food
to customers. They also give home delivery services in which food is deliver to customers in
very less time. It assists in reducing waiting time and in attracting large number of people.
P4 Assessment of skills and capabilities needed to launch new venture
There are various skills that are required to launch a new venture. Some skills that are
required by entrepreneur of Foodies Point are defined below:
Decision making skill: Entrepreneurs should have effective decision making skills so
that quick decisions can be taken whenever required. It will assists Foodies Point in identifying
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and exploiting market opportunities to gain high competitive advantage in market. This skill
helps the owner in making effective decisions regarding business activities and growth.
Financial management: Management of finance is crucial for successful running of
business operations. Due to shortage of funds, activities can not be perform smoothly. So, it is
important that financial management of firm should be good (Khan and et. al., 2015).
Entrepreneur requires to ensure proper availability of finance so that all the business operations
can be perform smoothly.
Communication skills: Effective communication is necessary for entrepreneur to
dominate their staff members. It assists in conveying proper information and messages as well as
in understanding business activities properly. This will also helps in maintaining good
relationship with staff members as well as customers.
Strategic planning skills: It is an imperative skill that every business requires. An
entrepreneur should have strategic planning skills so that they are able to develop effective plan
for business. It assists them in defining future course of action and attaining objectives & targets
of firm. Strategic planning helps in leading Foodies Point towards high growth and long term
success in market and also provides it a competitive edge over rivals.
Problem solving skills: There are various issues that occurs in every business. These
influence organisational culture and working. Therefore, it is required by an entrepreneur to have
good problem solving skills so that all issues that may arise in the firm can be resolved. Effective
problem solving skills helps in resolving issues efficiently and maintaining good workplace
environment.
TASK 3
P5 Promotional activities to support launch of venture
Promotional channels are used by firm in order to market their product and communicate
its benefit to customers so that organisational objectives can be meet. It is a set of activities that
are used by firm to convey brand value. Use of different promotional channels helps Foodies
Point in aware customers about their customized pizza and its benefits. For promoting business, a
marketing campaign is conducted by Foodies Point to appeal customers and develop loyalty
among them. Below defined are main promotional activities that firm use to promote its
business:
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Advertising: Effective advertisement can improve brand value of company. It assists in
reaching to large group of audience by communicating message to them (Liao and et. al., 2016).
Television, radio, newspapers are used by Foodies Point for advertisement. This will help in
aware more customers regarding their product.
Sales promotion: Firm use this promotional tool in order to stimulate its sales in market.
Foodies Point offers innovative product so as to gain competitive edge over competitors. This
tool assist company in boosting up sales of their pizza in market place effectively.
Personal selling: For improving public relation and gaining loyalty of customers,
Foodies point use personal selling to sell its products. This promotional tool will help company
in identifying needs and requirements of their potential customers more accurately and satisfying
them by offering what they want.
Online marketing channels:
Social media: Currently, as social media is using by many people, it provides vast reach
of consumers to firm and increase sales rapidly. Today, it is considered as the best source of
promoting goods in market as large number of people use social media sites. This will help
Foodies Point in getting large consumer base.
Pop up advertisement: It is a kind of online advertising on world wide web. It is a
popular way of promotion and put great psychological impact on minds of customers (Paradkar,
Knight and Hansen, 2015).
P6 Development of promotional activities plan for launch and pre launch of venture
Promotion helps Foodies Point in increasing popularity of business and aware customers
about brand. For this, firm needs to prepare a proper plan before launching its products in
market. Formulation of effective plan helps company in promoting its goods and services
appropriately in market place and attaining high sales ratio. It should includes all such activities
that helps in attaining and retaining customers. Some activities that needs to be considered by
firm at pre launching time includes:
Product analysis: Company should know about their goods which they offer to
customers. They needs to carefully analyse the product in which they invest. For instance,
Foodies point require to understand and anticipate future growth of their goods before investing
in them. As the venture is introducing new product so it can improve the quality, features of its
8

products by doing the analysis of its product. This can be done with the help og knowing abouty
the needs and wants of the customers of the company.
Market analysis: Analysis of market trends is very important as it influence sales &
profitability of business. Target audience, competitors, types of products, market size etc. are the
factors that should be considered by foodies point. Assessment of internal and external factors is
also necessary to be done. This will helps management in formulating effective strategies that
assists them in gaining high competitive advantage in market. By doing analysis of the market,
the company, it will come to know about the various segments of the market which will help in
targeting the real and potential customers as both at a single instance.
Financial analysis: Before launching any venture, it is necessary that firm should have
adequate finance so that operations of business can be run smoothly. Budget for each activity
should be clearly mentioned (Paudel, Xiao and Yan, 2015). This analysis assists in completing
all the activities on time and running business operations smoothly. With the help of financial
analysis, the company will be able to assess is current performance and can also find the new
ways of improvement in their working. So this analysis is also very essential and helpful for the
new venture.
Activities considered at the time of launching a venture:
Strategic positioning: While launching a product, it is required by firm to analyse its
strategic position in market & design plans accordingly. In order to take effective decisions,
evaluation of competitors marketing strategy is necessary. This assessment supports in gaining
large market share. Application of this activity will help the company in making the bonds in
between the customers and company better. Another benefit of applying this activity in the new
venture is that it helps in customer retention, satisfaction, and their attraction for a long period of
time.
Brand development: Foodies Point needs to increase their market presence by
developing their brand. For this, firm has to produce hygienic food with low calories and good
taste as people are more conscious about their health so, they prefer to eat such food. This can
proves to be the most effective way for firm in developing its brand. The company can apply
this strategy by making the product of the company different from others such as change in
packaging, and the improved quality products will also help in making the venture stable for a
long period of time.
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Web presence: Foodies Point needs to make their presence on websites and adopt online
delivery system for offering fast services to customers. This will helps them in accessing large
number of people and increasing their sales. The customer base of the company can be enhanced
with the help of web presence such as by providing various online facilities to the customers, it
can be their placing online orders, etc. to their customers.
Digital PR and partnering: Digital tools like blogger sites and social media are used by
firm for making its presence in market (Sebastiani, Montagnini and Dalli, 2013). It increase
popularity of Foodies Point and assists in business expansion. This will also assists firm in
attracting large group of customers.
At the time of launching a product, various promotional activities are used by Foodies
Point like advertisement, sales promotion and public relation. All these activities assists firm in
promoting its products in market and in communicating its value and benefits to consumers.
Main thing that a firm do is to make customers aware about their goods and services. Foodies
point conduct various events and activities that helps in attracting customers more towards the
brand and creating a loyal customer base. Another way to build hype for product launch is that
they offer pre launch orders to customers. It is an inexpensive and effective way to gain attention
of customers. An easy sales of product can make by accepting pre orders of customers. Firm can
also connect with people by social media. It would require to make a eye catching visual content
that facilitates in communicating about value of their food and why it is better than competitors.
Foodies Point also promote special offers, contests on social media, custom graphics and
discount codes in order to attract large group of customers towards their customized toppings
pizza.
TASK 4
P7 Itemised cash budget for business
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
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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
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
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Net Cash Flow (362) 1,429 2,454 3,480 3,993
Accumulated Cash Flow 1,066 3,521 7,000 10,993
Average Daily Sales / 22 days 2,567 2,354 2,475 2,596 2,656
Above mentioned budget depicts expenses of business throughout the year. As per the
above mentioned budget, it can be said that net profit of month January is 7,220 $ and in next
month, the profit is 9,011. It continue to increase in every succeeding month. Cash flow of
organisation is also increase in every month. In first month, net cash flow of foodies point is
comes in negative but after that it comes in positive and then continue to increase in every
month. Average daily sales of firm in month of January is 2,567 and in February, it is decreased
to 2,354. But after that, sales of company is constantly increased which shows that operations of
firm are running successfully and it earns adequate amount of profit.
P8 Appropriate legal form for venture setting
For performing activities and operations in proper way, a firm should have an appropriate
legal structure (Wilson and Post, 2013).
Partnership: It refers as an arrangement where partners or the parties involved in
business agrees to pool their skills, money and resources as well as share equal profit and loss in
company. An agreement known as 'Partnership Deed' is signed by all the partners with their
mutual consent. Foodies Point is a partnership firm in which 3 people invest their capital.
Basically, it is a legal form of business in which all the partners have equal share in profit and
loss. They are also responsible to manage activities and working of firm equally. Among three
types of partnership, Foodies Point run their business under general partnership. It depicts that
every partner have equal liabilities and responsibilities that they should have to follow for
running business operations smoothly & successfully.
The reason behind chosen partnership form of business is that a single individual does not
have adequate capital to start up their own business and risk is also high in running firm solely.
But in partnership, all partners invest some amount of money. They pool resources to provide
funds for starting a venture and the major advantage is that risks are divided among all partners.
No one is solely responsible for any loss (Wood, 2011). Another reason of choosing this legal
12

form of venture is that partnership firms do not require to pay income tax. Profits or losses of
business is file by each partner in their own income tax return. This form of business doesn't get
taxed separately. Partnership firms are easy to establish as funds can be raised easily and wider
pool of skills, knowledge and contacts are available. Management of business entity is also
improved due to involvement of more than one owner.
It is also necessary for a business to get registered under the Partnership Act in order to
start a new Partnership business. The reason behind choosing partnership as an appropriate legal
structure due to its several benefits. These are explained as under:
 It is very easy to form as it does not require much paper work than other legal structures.
 It also increases the amount of funds available to the company as the increase in the
partners will also led to increase in the amount of funds.
 Further the more amount of capital also makes the business to deal with more risky
situations.
 It also improves the management decisions as the business can now take decisions by
consulting to more people.
CONCLUSION
From the above mentioned report, it has been concluded that for launching a new venture,
an entrepreneur should have a creative & innovative idea. Along with this, they need to include
some factors such as start up capital, team size, planning & operating time etc. This will assist
in performing activities systematically and attaining objectives of firm. Various promotional
channels are used by company for promoting its product in market. This will help company in
aware their customers regarding their product and also assists it in boosting up its sales.
Identification of specific target market, competitor analysis and market assessment is necessary
for starting up any new business. Proper analysis of market helps firm in clearly identifying
needs and requirements of customers and enables it to offer products as per their needs.
Availability of adequate amount of resources is also necessary in order to perform all the
business activities and operations in an effective and efficient manner. Different skills and
capabilities such as decision making, communication, strategic planning etc. are required in an
individual for setting up a new venture as it helps in running business successfully.
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