Launching a New Venture in UK: Fresh OrgaFood

Launching a New
Venture

INTRODUCTION
An organisation came into market and expand at global level only when an entrepreneur
have new and innovative ideas which can easily attracts large number of customers across
worldwide. This can be possible through conducting an effective market research where the
business try to expand so that it become to bring demanded products and services with best
quality and pricing policies. Business environment is complex in nature which consists of
influencing factors such as political and economic stability, technological advancement etc. The
present assignment is based on "Fresh OrgaFood" which is new venture going to establish in
Romania after achieving huge success in UK. The company is engaged in producing and selling
organic chocolates, fruits and vegetables, cookies, pastries etc. The project explains the specific
target market, analysis of competitiveness in market, tangible and intangible resources, reliable
proposal to launch a new venture in new market, skills and abilities required to the available in
an entrepreneur while introducing new venture into new market, cash flow and legal forms for
different types of ventures exist in market.
TASK 1
P1:
Venture idea
"Fresh OrgaFood" is well-established venture in UK market which is engaged in
producing and selling wide range of products such as organic chocolates, cookies, pastries etc.
An entrepreneur after getting huge success in UK decide to launch its new venture in the market
of Romania due to having more demand of organic chocolates and other organic products. To
achieve huge customer strength within shorter period of time, Bucharest which is the largest city
of Romania is decided as location for the purpose of establishment. Largest city provides large
number of customers to "Fresh OrgaFood" which ensures them to gain huge sustainability and
profitability within shorter period of time. After investing funds on conducting an appropriate
research regarding analysis of Romania market, it came to know that maximum number of
citizens wants to buy organic products with the purpose of maintaining their healthy lifestyle.
Therefore, such market informations are more favourable for "Fresh OrgaFood" due to which an
entrepreneur decide to grab such opportunities through expanding its venture into Bucharest city
of Romania (Bijker and et. al., 2012).
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An entrepreneur needed an appropriate support in terms of gathering resources that to be
required while expansion of business (Caselli and Negri, 2018). For this, an entrepreneur decide
to expand its business in partnership with their colleagues who are already engaged in other
business activities. Partnering with them maximises the chances of achieving sustainability
through having new and innovative ideas of different partners in order to promote their new
venture into new market. For the purpose of establishment, an entrepreneur buys approx. 1800
square feet in Bucharest with the lease of 7 years so as to run their business more smoothly. The
amount of capital required to be invested is around 350000 to 356800 which can be raised
through partners' capital, loans from Banks etc.
Objectives: An entrepreneur with the consent of its partners set SMART objectives which
are defined as below: Specific: Capturing market share of Bucharest to achieve huge sustainability. Measurable: Achieving 60% market share of 60% Achievable: It can be achieved by offering wide range of organic products. Relevancy: It increases the presence of company in Romania market.
 Time Bound: It can be achieved within 8 months of starting business.
Target market:
The sustainability and profitability depends on the number of customers available to buy
their products and services. For this, market research is suitable to conduct in order to determine
the future sales and revenues generated by "Fresh OrgaFood" in Romania. The number of people
living in Bucharest is segmented on the basis of demographic, geographic and psycho-graphic.
Due to producing and selling organic products, owner of "Fresh OrgaFood" has targeted
Geographic segmentation where huge population are there to buy their products i.e. Bucharest.
Geographic: In this, population is classified on the basis of the area where they lived.
"Fresh OrgaFood" has targeting Bucharest city of Romania which is the largest city providing
huge number of customers for "Fresh OrgaFood". Maximum number of people in Bucharest
increases the sustainability and profitability of company (Cosenz and Noto, 2018).
Demographic: The population is classified into characteristics of persons such as gender,
age, religion etc. It is clearly identified from the research that people of Romania prefer to buy
organic items in order to maintain their healthy lifestyle. Therefore, the requirements of both
men and women are targeted by "Fresh OrgaFood" with their wide range of organic items.
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Psycho-graphic: In this, people of Romania segmented on the basis of their lifestyles.
People of higher and middle income group mainly prefer to buy healthy items instead of
checking its priced first. Therefore, such income group has been targeted by "Fresh OrgaFood".
Competitive analysis:
"Fresh OrgaFood" is engaged in wide range of organic products such as organic
chocolates, fruits and vegetables etc. due to which it gets tough competition from lots of rivals
that are already exists in the market of Romania. Such rivals includes Biofarm Crucea, Eco-fruct,
Biodam etc. which provides more challenges towards "Fresh OrgaFood" to sustain in market for
longer period of time. This requires an effective strategy and suitable plans to compete with them
in more effective and efficient manner (Douglas, 2013).
P2
There are various resources which is needed by the organisation and they have to use it in
effective manner at the time of establishing new venture. Such resources are divided in two types
such as tangible and intangible. "Fresh OrgaFood" is a new venture which provides pastries,
cookies, fruits and organic chocolates etc. The kinds of resources are explained as under:
Tangible resources- It consists description of resources which can be feel and seen by the
individuals as they are physically present and contributed their efforts in effective established of
Bakery shop in marketplace. Tangible assets includes equipment, land and vehicles which can be
described and touched. Also these tangible assets are purchased so there are valuable in terms of
money. Some of the tangible assets, such as buildings and machines degrades over time and
these needs special care and treatment which increases the cost of the firm. These tangible
resources are necessary for starting the venture as without, funds, building and equipments,
production process does not start (Duggal and Sassoon, 2015). It helps organisation in
improvement of strength and also provide guidance to organisation in effective utilisation of
resources. It further classified as under: Physical resources: These are the tangible resources which is essential to have with
"Fresh OrgaFood" in order to operate its business functions. Such resources required
space to store, have a value and used in the operations of company. It includes
inventories, equipments and tools, storage and distribution facilities etc. Human resources: It refers to the employees whose efforts and contributions make new
firms for successful in new market. The physical resources cannot be properly utilised
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without taking support of human resources therefore most essential requirement that to be
acquired by company. For this, "Fresh OrgaFood" is required to recruit and skilled
candidates which are more capable to deal with Romanians more effectively and
efficiently (Gabrielsson, Gabrielsson and Dimitratos, 2014). Financial resources – These are the funds which are procure by the organisation from
external and internal sources to carry on their business activities. These resources are
considered as the base of an organisation. It is very important to acquire relevant
financial resources for a new venture so that they can conduct their operational activities
effectively.
Intangible resources – It is defined as an asset which are not present physically but they
can feel by the individuals it is included such factors manufacturing quality products which helps
organisation in building relationship with the customers. The customers are attracted towards
offering of the organisation. That will also provide advantage to firm and they will take a
competitive advantage in marketplace. It includes goodwill, patents, rights and intellectual
properties which is equally important to sustain in market for longer period of time. These
resources are essential for enhancing the satisfaction and experience of the customers who buys
the product of the firm.
TASK 2
P3
An entrepreneur with the consent of partners should make a credible proposal which
specified the actual target they are willing to achieve through new firm "Fresh OrgaFood". It is
made under the guidance of specialists and professionals so as that actual mission, objectives of
company can clearly communicate with their employees (Gerasymenko, De Clercq and
Sapienza, 2015). It facilitates members of "Fresh OrgaFood" to understand their roles and
responsibilities which makes easy for them to put their maximum efforts in achieving desired
goals and objectives. Here are the credible proposal of "Fresh OrgaFood":
Executive Summary "Fresh OrgaFood" is well-established company of UK which is
decided to further expand to Romania in order to capture huge market
share and profitability. The decision of entering into Romania market
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came through results of research conducted where the large number of
customers prefer to buy organic products to maintain healthy lifestyle.
Company description "Fresh OrgaFood" is small and medium sized company of UK which
deals in producing and selling wide range of organic products such as
organic chocolate. Fruits and vegetables, biscuits and bars etc. It
further expand into Bucharest city of Romania due to getting huge
demand of their offerings.
Market Analysis Market environment is dynamic in nature which brings lots of
challenges and difficulties towards the "Fresh OrgaFood" while
establishment in new market. Presence of various influencing factors
such as political and economical stability, management support etc.
which should be properly analysed in advance. It can be done through
making SWOT and PESTLE Analysis. For example, As per the
reports, the organic market value has been increased upto 30% in the
year 2018 which is a good sign for "Fresh OrgaFood" who is engaging
in selling organic products (Romania’s organic market value, 2018).
Financial projection
An entrepreneur must prepare to make an appropriate cash flow so as
to identify the actual cash the company at present and cash required in
establishment of business. The shortage of funds can be fulfilled by
raising from different sources such as partners' capital, bank loan etc.
An entrepreneur forecast the around 350000 to 356800 to be incurred
in establishment of "Fresh OrgaFood". In Romania EU funds, banks
loans and government schemes are currently available to SME's to
grow their business. According to the research published last summer
by the National Council of Private SMEs, mostly entrepreneurs prefer
to raise funds from bank due to having low rate of interest as
compared with other source of finance (Focus on SMEs: How can
entrepreneurs get finance, 2016). Therefore, the entrepreneurs of
"Fresh OrgaFood" should prefer to raise funds from bank.
Benchmarking It is set of action which is taken after analysing the market
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competition, rivalry strategies etc. It assist an entrepreneur to motivate
its employees to develop new and innovative ideas which brings their
new company ahead than their rivals in competitive market. "Fresh
OrgaFood" can achieve huge sustainability only if the desired goals
and objectives can be clearly communicated to its team mates which
brings motivation and build confidence among them to perform with
more efforts and dedication. For example, the entrepreneurs of "Fresh
OrgaFood" have made benchmark of achieving 60% of sales within 2
months of launching will bring motivation among staff members to
work hard and contribute maximum efforts in achieving desired
target.
P4:
Effective strategies are necessary for any firm to attain growth and success in the market
which can happen only if the entrepreneurs has the required skills and knowledge. So, it is
important for entrepreneurs to have the required skills which are discussed below for the
successful business ventures:
Management skills: These skills are very important for an entrepreneur for managing
and controlling the business operations in an effective manner. These skills are necessary for
managing the allotted workforce and resources in a proper way. With the help of such skills,
entrepreneur can assign the various role and responsibilities to the workers for achieving the
goals efficiently. Through such skills, the entrepreneurs of "Fresh OrgaFood" can easily manage
the resources for accomplishing their goals of introducing organic chocolates to the Romanian
market (Kariv, 2013). Such skill can be acquired through engaging in management programs,
seminars etc. For example: through these skills, the entrepreneur of Fresh Orgafood can manage
their workforce and resources in proper way so that these can be utilised in an effective manner.
Decision making skills: The environment of business becomes very complex due to
various internal and external factors which can harm the judgements taken by the entrepreneurs
for starting a new venture. Strong decision making skills are necessary for the entrepreneurs of
"Fresh OrgaFood" to take effective and suitable decision for the various plans and policies which
should be implemented in the Romania for dealing with these factors easily. Such skill can be
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acquired through performing under complex situations which required immediate action to
tackle. For example: Through these skills, the entrepreneur of Fresh Orgafood can take improved
and suitable decision for their company and its employees so that the employees can work with
the required consistency for achieving the desired organisational goals.
Leadership skills: These skills are necessary for leading the members towards the desired
goals for executing the work easily and also to provide them training for improving their
efficiency. Entrepreneurs of "Fresh OrgaFood" must have these skills for smooth coordination
and communication with their workforce (Kuratko and Hornsby, 2017). It can be acquired
through improving communication skills, maintaining a positive attitude, and have a clear
vision. For example: Through these skills, the entrepreneur of Fresh Orgafood can lead their
workforce in an effective manner and even the issues and conflicts among the employees can be
eliminated or resolved. As a result of this, the employees can perform with the requirede
efficiency.
Risk taking ability: Due to the intense competition in the market, risks are always
involved in the businesses which can effects the productivity and performance of the company.
So, entrepreneur of "Fresh OrgaFood" must have such skills for taking the risks which are
involved in the business. Through these skills, the entrepreneur of "Fresh OrgaFood" can take
their decisions properly in an efficient manner. It can be acquired through indulging in complex
situations where the rare of risk are very high. For example: Through these skills, the
entrepreneur of Fresh Orgafood can take the risk after the analysis so that it will not majorly
impact the business operations of the firm.
TASK 3
P5
For spreading the information in Romania regarding their organic chocolates,
entrepreneurs of "Fresh OrgaFood" must need to adopt several promotional platforms which are
discussed below:
Social media platform: In this, the entrepreneurs of "Fresh OrgaFood" can easily search
and find their potential customers and targets. Even the entrepreneurs can also inform the
customers regarding their organic chocolates for influencing their purchasing behaviour. The
social media platforms includes Facebook, Instagram, twitter etc. by which the entrepreneurs can
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attract the people from Romania towards their organic chocolates (Kuratko, Hornsby and
Hayton, 2015). It consumes less time, efforts and cost due to which it must be adopted by "Fresh
OrgaFood"
Mobile Billboards: It is also an crucial tool which is helpful for attracting the potential
consumers towards their products and services which are provided by the "Fresh OrgaFood" in
the Romania. In this, the entrepreneurs of "Fresh OrgaFood" needs to prepare punch lines, logos,
sticker etc. for getting the recognition in the Romanian market. In modern market scenario, the
buying behaviour of people influencing most towards the catchy punch lines or logos of
company which in results building brand image of company in market. For this, "Fresh
OrgaFood" must appoint a member who bring more attractive punchline or logo so that the
people can be easily attracted and support new venture in building strong brand image in
Romanian market within shorted period of time.
Personal promotions: These tools are more reliable for attracting the customers. In this,
the employees of "Fresh OrgaFood" personally visits the consumers and invite them to taste their
organic chocolates using pamphlets, brochures, catalogues etc. It will positively impacts the
purchasing power and interests of the customers It is useful to adopt in order to achieve trust and
loyalty of customers through meeting them personally and communicate about company's
offerings. People shows less interest and trust towards the products advertised by the company
through using digital marketing tools such as TV advertisement, social media platform etc. Thus,
to gain trust of customers personal promotions is must to adopt by "Fresh OrgaFood" which
indirectly support in achieving strong brand image in new market within limited period of time.
P6:
To introduce new company to enter into other market, business persona should frame an
effective strategies which can easily attract purchasing behaviour of customers. Therefore, an
entrepreneur of "Fresh OrgaFood" should prepare an effective promotional activities plan in
order to spread the new of their entrance into Romania market. It can be further understood as
under:
Pre-launch: This is the time before establishing a new firm into firm at which an
entrepreneur focuses on attracting interest and buying behaviour of targeted people. For this, an
entrepreneur of "Fresh OrgaFood" should prepare their official website through which they can
advertising about their products and services along with the real pictures. It provides an
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opportunity to their targeted people to read the reviews of their past customers which can help
company to achieve trust and reliability of their focused customers (Morris, 2015). In Romania,
there are 11 million internet users due to which advertisements made on "Fresh OrgaFood"'
official website increases the awareness about their entrance into Romanian market. This will
increases their market presence which in results support company in achieving strong market
image within shorter period of time (Romania has 11 million internet users, 2017).
Launch: This the final and crucial stage at which the business owners of "Fresh
OrgaFood" conduct opening ceremony of new firm into new market where the representatives of
different media to capture each and every moment of such ceremony. This is the platform which
also an entrepreneur of "Fresh OrgaFood" to communicate with customers regarding their
offerings along with their benefits. Collected information about company are further telecasting
in TV, Newspapers, social media etc. so that every people of Romania can understood about the
new entering into new market. There were 5 million users for cable TV services in Romania at
the end of year 2017 which facilitates "Fresh OrgaFood" in reaching the information about their
offerings in maximum customer's mind. This will results in attaining brand image in Romanian
market within limited period of time.
Financial consideration to start a new venture:
There are financial consideration that to be focused by the business persons in order to
launch new company "Fresh OrgaFood" in Romania. It includes:
Minimise overhead: An entrepreneur of "Fresh OrgaFood" should try to limit its
expenses in the beginning. It can be possible through cutting out the unnecessary cost which
brings no profitable result to company in the process of its establishment. For example, stop
investing in decorating offices, and over the top amenities which increases expenses of business.
Track and monitor spending: It is essential to track and monitor cost to maximise the
profitability of company. It is done through keeping records of transactions made on daily basis
related with the acquiring assets such as plant and machinery, Land and building etc.
Invest appropriately: An entrepreneur of "Fresh OrgaFood" must first ensure about
return received in future on their investment and accordingly make an appropriate decision. For
example, decision of acquisition of land for establishment of new business in popular area such
as Romania will brings profitable outcome to company.
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TASK 4
P7:
Cash Budget refers to listing out business activities along with their funds requirements
in order to execute in future time period. It reduces unnecessary cost due to which an
entrepreneur of "Fresh OrgaFood" need to prepare cash budget before entering into Romania
market. It is important to prevent the situation of shortage of funds and conduct business
operations more smoothly (Roseno, Enkel and Mezger, 2013). Therefore, it is essential for an
entrepreneur for "Fresh OrgaFood" to form a Cashflow budget at the time of launch and after 12-
18 months which are given as under:
Interpretation:
The pre-launch budget for the Fresh Argofood is discussed here. The closing balance in
January was 0 whereas the closing balance is 7700. In February, the opening balance is 7700 and
closed at 7900. For march the opening balance is 7900 and closed at 9200. For April the opening
balance is 9200 and closed at 11400. For May the opening balance is 11400 and closed at 11550.
For June the opening balance is 11550 and closed at 13000. For July the opening balance is
13000 and closed at 16100. For August the opening balance is 16100 and closed at 16500. For
September the opening balance is 16500 and closed at 17700. For October the opening balance is
17700 and closed at 18300. For November the opening balance is 18300 and closed at 18800.
For December the opening balance is 18800 and closed at 19600. The pre-launch budget is
always increasing through out the year which shows that the company has anticipated profit
throughout the year.
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Interpretation: The post-launch budget for the Fresh Argofood is discussed here. The
closing balance in January was 0 whereas the closing balance is 6350. In February, the opening
balance is 6350 and closed at 5850. For march the opening balance is 5850 and closed at 11600.
For April the opening balance is 11600 and closed at 11950. For May the opening balance is
11950 and closed at 15750. For June the opening balance is 15750 and closed at 20250. For July
the opening balance is 20250 and closed at 19750. For August the opening balance is 19750 and
closed at 22100. For September the opening balance is 22100 and closed at 22650. For October
the opening balance is 22650 and closed at 30100. For November the opening balance is 30100
and closed at 28850. For December the opening balance is 28850 and closed at 30860. In some
months the post-launch budget is decreasing which shows that the company is going in loss but
in the end, the amount is increasing which shows that company's performance is increasing.
P8:
There are number of business structures carrying different legal requirements and obligations
which must to follow in order to sustain in competitive market for longer period of time.
Following are the some kinds of business structures:
Sole trader: It is most easiest form of business due to having limited rules and
regulations framed by governments regarding their smooth operations in market. In this kind of
venture, single person owned and operate the business without getting support from others. Thus,
any profits or losses are shared by himself/herself only.
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Company: It is separate legal entity which indicates that any member of company is not
personally liable for the purpose of paying company's debts. It is classified into private and
public limited company. Private company faces lots of restrictions by government as compared
to the public company. For example, private company doesn't allot shares directly to the general
public whereas the public company does.
Partnership firms: Under this kind of business structure, two or more person join
together to run business in market more smoothly. It is formed through contractual agreement
called as partnership deed which describes all terms and conditions related with partnership such
as sharing profit/loss ratio etc.
In the present report, "Fresh OrgaFood" is a partnership firm which is owned and operate
by many partners in pre-decided profit/loss ratio. To enter into new market i.e. Romania, huge
funds are required to raise which can be possible only through inviting people to get involved in
business through an agreed sharing profit/loss ratio. Thus, the chances of achieving growth and
success of "Fresh OrgaFood" in entering into Romanian market is more due to having maximum
support from number of partners.
CONCLUSION
It has been summarised from the above project report that globalising business is quite
difficult task for an entrepreneur even if they already achieve huge success in one market. It
requires lots of resources such as tangible and intangible, new and innovative ideas to capture
new market share etc. For this, an entrepreneur must have attained different skills and
capabilities such as risk-taking skills, management skills etc. in order to manage and achieve
competitive opportunities of new market. Cash flow budget is also necessarily requited to
prepare in order to operate business functions more smoothly. To operate business more
effectively, it is important for entrepreneurs to understand the legal structures of venture which
they likely decide to start and expand in new market. Before starting a new venture, an
entrepreneur must required to prepare a projection plan consisting of different aspects such as
complexities of market environment, budget allocation, Segmentation of market etc. so that
corrective actions can be taken for the long term survival. Preparation of promotional plans is
also important as it help an entrepreneur to reach its new business to large number of targeted
customers which in results increasing customer base and revenue.
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REFERENCES
Books and Journals
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