Launching a New Venture Assignment - Rowlinson knitwear

Launching a New
Venture
Table of Contents

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Investigate and explain a new venture for your chosen organisation, identifying specific
target markets and undertaking competitive analysis.............................................................3
P2. Determine specific tangible and intangible resources that would be required by your
chosen organisation for the launch of a new venture.............................................................5
TASK 2............................................................................................................................................7
P3. Produce a credible proposal to launch a new venture in your chosen organisation.........7
P4. Assess the skills and capabilities required to launch a new venture and how they are
acquired or developed.............................................................................................................8
Abilities:.........................................................................................................................................10
TASK 3..........................................................................................................................................10
P5. Explain the different promotional activities and channels that will support the launch of
the new venture and justify their choice for your chosen organisation. ..............................10
P6. Develop an appropriate promotional activities plan for both launch and pre-launch of your
chosen organisation’s new venture.......................................................................................12
TASK 4..........................................................................................................................................12
P7. Produce an itemised monthly cash budget for the pre-launch phase of the venture and the
first 12–18 months preceding launch of your chosen organisation’s new venture..............12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
A business venture or an entity developed with motive of earn profit, a business venture
is considered a part of small business. In world most ventures developed with motive of earn
profit by evaluating demand and supply in market. In recent world scenario due to globalisation,
lot of opportunities are available to expand market share and it also brings innovation and
technological advancement to give satisfaction to their customers. This report is based on
Rowlinson knitwear which is Small medium enterprise in UK that manufacture apparels and plan
to expand its products in sports apparel and leisure wear at Switzerland in Europe. In deals in
Knitwear and school wear previously. This company planned to expand in international market
to satisfy consumers demand and wants in better manner. This report is based relevant target
market and competitors while expand in new market and start a new venture in international
market. It also elaborates relevant skills and proposals that helps in success of new venture with
essential promotional activities. Further it explains monthly cash budget while launch a new
venture with appropriate skills and capabilities.
TASK 1
P1 Investigate and explain a new venture for your chosen organisation, identifying specific target
markets and undertaking competitive analysis.
Rowlinson knitwear plan to expand its market share in international market by providing
some new and innovative products in clothes. Organisation plan to expand its market share in
Switzerland because by research they find viability in market. To expand in international
market there is need to understand target market and competitors analysis by it organisation can
find their potential customers and by competitors analysis it can find out its major rivals
(Barringer, 2015). By identifying these factors, organisation can eliminate risk at maximum level
and gain profit. Consideration of small business consist of any business which have less than 250
employees are available. In Europe there are 23 million SMEs, that was more than 99% of all
businesses (Bridge and Hegarty, 2013). So small businesses contribute a lot in economic
development and enhancement. There are many strategies that helps while access in international
market in which includes competitors analysis and search out potential target market in
organisation. Organisation aimed to expand its market in sports and leisure wear to expand its
market share.

Target market:
Target market is cluster of customers in a serviceable market in which marketers invest
their efforts and resources to satisfy potential customer needs and wants. There are different
factors that helps to segment proper market to reach at potential consumer base at appropriate
time (Burns, 2017). There target market are sports person and individuals who spend their time
in leisure.
There are different types of factors that helps to find out potential consumers for
organisation and frame products and services according to their choice and preferences. It based
on different basis that are as follows: Demographic, behavioural and psycho graphic are basis
that helps to target potential consumer base.
Behavioural factor:
Behavioural factor helps to bifurcate market on basis of different behaviours such as
buying patterns of consumers, lifestyle and usage of goods and services (Chrisman and et.al .,
2012.). For example in case of Rowlinson knitwear its products are for children and men with
women because it deals in uniforms and corporate wear and plan to expand its market in sports
and leisure wear so it has to adopt new trends according to customer demand because their
consumer base is youngsters.
Psycho-graphic factor:
In psycho-graphic factor consist of dividing market on basis of lifestyle of people, traits
and personalities and values and ethics, opinions, views etc. are important aspects that help to
divide market (Coleman, Dzansi and Rambe, 2015). For example in Rowlinson knitwear all
consumers wants are change frequently for that organisation have to understand their behaviour
and provide clothes according to it. Today most people prefers sports clothing and leisure clothes
when they visit places so according to them Rowlinson knitwear plan to expand market in
Europe.
Competitors analysis:
In competitor analysis consist of understand potential competitors and according to them
moderate in rules and regulation and necessary modification in products and services so that firm
can easily minimize risk.
To understand competitors analysis porter's five force model is best method of evaluation that are
as follows:

Bargaining power of suppliers:
In bargaining power of suppliers consist of no. of suppliers available in market if it is less
in no. then the create pressure by rising prices, low quality and low availability of products.
Suppliers make industry more competitive and it is big threat for Rowlinson knitwear while deal
in international market because at Europe there is supplier power (Fernhaber and Li, 2013).
Threat of substitute:
Another important factor while analysis of competitors in which substitute of products
that deliver by organisation. Substitution create lots of competition in case of Rowlinson
knitwear that produce same goods as that organisation produce.
Bargaining power of buyer:
In that type of threat there are lot of organisation establish in market place so buyer have
lot of choices it directly affects Rowlinson knitwear.
Threat of new entrants:
In that threat due to globalisation day by day new entrants come in market that affects
business of Rowlinson knitwear. After market research it has found that Revenue in apparel
market US$9,296m in 2019 and expected to grow in a year by 1.3%. it has largest segment in
girls wear with volume of Revenue in the Apparel market amounts to US$9,296m in 2019.
P2. Determine specific tangible and intangible resources that would be required by your chosen
organisation for the launch of a new venture.
Resources are important part of organisation that helps to accomplish business objectives
and goals. In resources many parts consist in it such as finance, manpower and physical
resources that are important attributes in organisation growth and planning (Hmieleski, Cole
and Baron, 2012).
Tangible resources:
In tangible resources consist of cash, inventory, equipment’s and investments are
important resources. These resources are clearly visible and there are clear and exact market
value of these resources. It is very important to understand benefits of resources in long term and
it gives important analytics to know about value of organisation and their resources. There are
two types of resources consist in organisation in which includes current and fixed resources. In
fixed resources land, machinery and equipment consist that use by organisation more than a year,
on other hand variable resources that should be use for a year.

Human resources: Human resource also a part of tangible resource that is important part of
organisation and also not imitable resource. It helps to accomplish goals and objectives of
Rowlinson knitwear. In Human resource consist of people at different designations according to
their skills and abilities contributes in development of organisation.
financial resources:
Finance is an important part of every organisation because all activities should be
accomplish with help of finance. Rowlinson knitwear planned to expand its market share in
international market because it is financial stable in market (Hsiao, 2013). Organisation plan
budget and other financial reports to evaluate financial viability so that it can spend it in
necessary spheres.
Physical resources:
In physical resources includes raw materials, building and equipments, machinery and
supplies so that it can easily accomplish their tasks and responsibilities.
Intangible resources:
Intangible resources are not physical in form and consist of factors such as accounts and
receivables, prepaid expenses, patents and good will are main components. These intangible
resources are very important in comparison to tangible resources. Patents and trademarks also
consist in intangible resources that are very important factor in organisation development (Kariv,
2013). In case of Rowlinson knitwear it has brand name in market that is very important factor in
organisation development and reach at large consumer base. While expand in international
market advance technology should be adopted so that it can grab large consumer base.
TASK 2
P3. Produce a credible proposal to launch a new venture in your chosen organisation.
To launch a new product or to start a new venture there is need to build a strong and
viable proposal that give important information and insights. That proposal should be made
under guidance of specialist by consideration of vision, missions and objectives of organisation
So that desirable results should be accomplish (Klotz and et.al., 2014). There are some important
steps that help in produce a viable proposal to launch a new venture that are as follows:
Executive summary Rowlinson knitwear launch a new venture in Europe to properly
satisfy future needs and wants of consumers that are changing

rapidly. It deal in clothes and by evaluating future growth in
international market plan to expand its business.
Company description Rowlinson knitwear is famous brand name in clothes which
basically manufacture uniforms and corporate wears but it
planned to expand its market by offering products in sports wear
and leisure wear in Europe. Their main goal is to give best of
wears by satisfying their needs and wants in better manner. It is
well known brand that plan to expand in new market sphere.
Market analysis Market analysis is an important attribute while launching a new
product or a new venture in different sphere to satisfy needs and
wants of consumers in better manner. There are different ways
to evaluate market conditions in which SWOT analysis,
PESTEL analysis, STP, competitors analysis are important
attributes help to test market scenario and potential
opportunities and threats so that by evaluating all these
Rowlinson knitwear can minimize risk factor and gain high
profitability (Kuratko and Hornsby, 2017). The main motive
and principle behind market analysis is to find out potential
consumer base and major competitors of organisation so that
risk should be eliminate at maximum level.
Financial projection Financial projection is an important factor while launching a
new venture in different market sphere. Financial projection
gives important data and insights so that Rowlinson knitwear
can easily evaluate different factors such as financial position,
viability so that they can know that they are economically sound
or not. If finance is not properly available then they have to
borrow from different sources such as bank loans, borrowings
from financial institutions (Lim, Busenitz and Chidambaram,
2013). So financial projection is very important attribute in
launching a new venture. Financial projection for new launch

requires € 20,000.
Benchmarking Benchmarking is to compare different processes and
performance with other industry. Rowlinson have to compare
different things such as competitors, trends and recent changes
in product of competitor so that they can easily adopt these
changes and build strong brand image in market (Mullins,
2017). While set standards there is need to evaluate results in
proper manner and control it according to situation. Reason and
principle behind benchmarking is to compare best attributes and
functions with other organisations so that best features should
be adopted.
So all these aspects help to evaluate while frame an proposal for new venture in different
market so that desirable results should be achieve.
P4. Assess the skills and capabilities required to launch a new venture and how they are acquired
or developed.
There are some potential skills and strategies that are require in successful launching of
new venture in international market. These skills and capabilities give important insights to
eliminate risk factor and attain potential advantages. some essential skills that are require. These
skills and capabilities are as follows:
Skills:
Skill is abilities to completion of tasks and duties to achieve determined goals and
objectives with pre specified time, resources and energy etc. Skills are very necessary to give
their best to organisation to accomplish targets and objectives (Nagy and et.al ., 2012).
Rawlinson knitwear requires some pre specified skills to launch a new venture in Europe.
Decision making skills:
In Rawlinson knitwear when it planned to expand its market share in international market
it has to take some major decisions to judge market sphere and competitor’s analysis, market
segmentation and other important attributes that are very necessary for an organisation. When it
evaluate all these factors in proper way then higher authority of that organisation takes potential

decisions to expand in that market sphere or not. At that time powerful decision making give
important results and standards.
Risk taking ability:
Another important skill that is very important while launching a new venture is risk
taking ability of organisation. While launching a new venture there is need to take risk because
by taking risk an organisation can also get advantage (Podoynitsyna and et.al ., 2013). So risk
taking ability is very important by identify an appropriate business promotional message/name
/logo for the business factor in organisation to gain potential market share is to take risk and gain
competitive advantage.
Managerial ability:
In Rawlinson knitwear while launching a new venture there is need to use managerial
abilities to avail best resources. To find opportunities and satisfy consumer needs in better
manner there is need to find out well organise resources, employees and other sources in better
manner so that effective results should be accomplish. In that way they have to assign proper
roles and responsibilities so that effective results should be achieve in better manner. So proper
functioning in launch a new venture is very important.
Leadership skills:
Leadership skills are very important while launch a new venture in different market
sphere because there are new employees and environment so they have to use different
leadership styles according to work culture and mindset of employees. Right leadership style
helps to assist employees to understand their work and behaviour in better manner. When an new
venture launch in international market place in that scenario lot of training and development is
require to employees hence leaders have to be able to give proper training and development so
that they get desirable results (Scarborough, 2016 ).
Abilities:
Ability is aptitude, component that create competence to accomplish some tasks and
duties at certain level. Rowlinson knitwear have to require potential abilities and skills for
successful launch of new venture that are as follows:
Marketing and client administration abilities:
At time of launch a new venture there is need to some specific ability of marketing to
reach large no. of consumer base and administration skills to entrepreneurs. In that scenario to

understand right and appropriate promotion activities and taste, preferences of consumers should
be acknowledge by them. This ability is also useful in future because to forecast and build
products according to them.
Time and project administration abilities:
Time and project administration is most important ability that are require to get effective
results at time of launch a new venture. There is proper time for completing a project and some
necessary steps should be follow to get effective results or outcomes in Rowlinson knitwear. So
there are some specific skills and abilities that are require to manage new venture. That ability is
very useful in future to accomplish work and projects in proper time and with resources to get
desirable results in future also.
These skills and knowledge are useful for an organisation because leadership and
managerial are so crucial for any organisation to remain always line up with trends and choices
of customers. It also gives satisfaction to employees when in Rawlinson have good management
and operation abilities so all skills and abilities are useful for life time for both individual and
organisation.
TASK 3
P5. Explain the different promotional activities and channels that will support the launch of the
new venture and justify their choice for your chosen organisation.
Promotion is very important task for any organisation to give appropriate knowledge and
information to their potential consumers about their products and services. There are different
promotional strategies adopted by organisation according to their products and services, budget
and customer background are major factors that helps to organisation to grab attention of large
no. of consumers (Welsh and et.al ., 2014). The best and appropriate promotional activities to
get desirable results that are as follows:
Online marketing:
Online marketing is an effective method of advertise and promote goods and services. It
is a cost effective and easy to reach at large consumers, it is easy for marketers to acquire
potential consumers. In online marketing marketers reach with customer from different sources
in which includes social media by evaluating their choices and preferences they give them offers

and relevant information. In case of Rowlinson knitwear it plans to expand in Europe so online
marketing help them to grab large no. of consumers.
Publicity:
Publicity is another best method of promote goods in new market because it is best
source to grab attention of large consumer. In publicity print and broadcasting media and
interview to media with word of mouth are important sources to reach at masses (Fernhaber and
Li, 2013).
So best method to Rowlinson knitwear is online marketing because it is cost effective and
helps to reach at large no. of potential consumers.
Its Tag line for promotion is “Clothes designed for living”.
Pricing strategies:
Business uses different types of pricing strategies to sell a product or services to their
customer that are as follows:
Pricing at premium:
In premium pricing businesses set prices above from their competitors, it is effective way
according to product life cycle and best for small business enterprises to sell unique goods and
services (Welsh and et.al ., 2014). In case of Rowlinson knitwear it is small business enterprise
so best method for it is premium pricing.
Pricing for market penetration:
This is another strategy to set prices less to attract large no. of consumers and grab
attention of large no. of consumer base. Penetration pricing is not cause of loss in initial stage of
business.

Capital required to start a lean business is € 20,000 and main consideration of lean business is
not to complicate business project, organisation have to focus on product rather than market. In
lean is uses identify value principle in which needs and wants of consumer for particular product
so that marketers have to identify it and then have to provide it in a innovative way.
P6. Develop an appropriate promotional activities plan for both launch and pre-launch of your
chosen organisation’s new venture.
Promotional activities are require for both launch and pre launch of products and services
that are as follows:
Pre-launch:
In launch of new venture in international market there is requirement of promotional
activities before launch of product and services. It helps to customers about new product
launching program with various features of new product so that they become ready to buy
products. In case of Rowlinson knitwear it form a website on which updates about products and
services should be display and existing consumers have to give their reviews so that it
acknowledge by all consumers.
Launch:
It is crucial stage in case of Rawlinson knitwear because at that time product and services
should be in front of consumers. To attract lot of consumers towards their new product and
Illustration 1: Rowlinson Knitwear – premises relocation 2018
(sources: Rowlinson Knitwear – premises relocation 2018)

services there is need to take reviews and feedback of consumers so that necessary reforms
should be adopted (Welsh and et.al ., 2014).
]
TASK 4
P7.Produce an itemised monthly cash budget for the pre-launch phase of the venture and the first
12–18 months preceding launch of your chosen organisation’s new venture.
Cash budget is a plan for total cash receipts and disbursements during a particular time
period. Here an annual cash flow is display of Rowlinson knitwear.

From the above cash budget, it can clearly stated that decision should be right according
to inflow and outlay are liquidate well. So they have to expand their business.

Legal structure of private organisation:
Private organisation follows a legal structure in which following structure are included
that are sole proprietorship, partnership, limited partnership and Limited liability company are
part of legal structure of private organisations. From that Rowlinson is private organisation in
which it is sole proprietor that own by one person that is least regulated organisation structure.
CONCLUSION
From the above report it has been concluded that new venture is develop today with help
of globalisation and to earn profit with grab large market share in competitive scenario it is very
necessary to expand in international market. In that report Rowlinson knitwear aimed to expand
its market in Europe so that it can fully satisfy consumer needs and wants in proper way. To
access large no. of consumers there is need to evaluation about different factors so that
organisation can gain maximise profit share. There is need to segment market by accessing their
needs and wants of consumers. To get results in proper way there is need of potential skill set to
gain advantages and there is also important promotional tools that help to reach at large
consumer base.

REFERENCES
Books and journals:
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Chrisman, J. J.,and et.al ., 2012. Counseling assistance, entrepreneurship education, and new
venture performance. Journal of Entrepreneurship and Public Policy. 1(1). pp.63-83.
Coleman, W.J., Dzansi, D.Y. and Rambe, P., 2015. Enhancing new venture creation success in
South Africa: A project management perspective.
Fernhaber, S. A. and Li, D., 2013. International exposure through network relationships:
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pp.316-334.
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Hsiao, A., 2013. Developing an entrepreneurial mindset in engineering students. Proceedings of
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future research. Journal of management. 40(1). pp.226-255.
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roadmap. Routledge.
Lim, J. Y. K., Busenitz, L. W. and Chidambaram, L., 2013. New venture teams and the quality
of business opportunities identified: Faultlines between subgroups of founders and
investors. Entrepreneurship Theory and Practice. 37(1). pp.47-67.
Mullins, J., 2017. The New Business Road Test: What entrepreneurs and investors should do
before launching a lean start-up. Pearson UK.
Nagy, B. G., and et.al ., 2012. The influence of entrepreneurs’ credentials and impression
management behaviors on perceptions of new venture legitimacy. Entrepreneurship
Theory and Practice. 36(5). pp.941-965.
Podoynitsyna, K., and et.al ., 2013. Improving new technology venture performance under direct
and indirect network externality conditions. Journal of Business Venturing. 28(2).
pp.195-210.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
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Welsh, D. H., and et.al ., 2014. Japanese women entrepreneurs: implications for family firms.
Journal of Small Business Management. 52(2). pp.286-305.
Online
Rowlinson Knitwear – premises relocation 2018. [online].
Available through: <https://www.bellyflop.tv/film/rowlinson-knitwear-premises-relocation-
2018/>.