(PDF) Launching a New Venture | Assignment

Launching a New
Venture

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
P1 New venture and identification of specific target market.................................................3
P2 Tangible and Intangible resources required by chosen organisation to launch a new venture
................................................................................................................................................5
P3. Producing a credible proposal for launching a new business venture..............................6
P4 Skills and capabilities to launch a new venture.................................................................7
TASK 3............................................................................................................................................8
P5 Different promotional activities and channels to launch a new venture...........................8
P6 Appropriate promotional activities plan to launch both launch and pre-launch ..............9
P7 Monthly cash budget for pre-launch phase of venture......................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In order to launch a new venture it is not sufficient for an individual to limit themselves
only on a business objectives, but it is required to go beyond the business plan and figure out
more ways to achieve rapid growth. In this technological world where everything thing is
dynamically changing it is necessary for an business person or an individual to start their venture
with a uniqueness so to gain financial advantages (Launching a new venture. 2018). Business
person is required to analyse market and acquire different types of skills and knowledge. In
relation with this, present case study, a new venture which is an E-commerce store looking
forward to launch their business in international market, in Europe. In this project a business plan
with action plan is mentioned in formative way along with background of venture. In addition to
this, required skills and capabilities that is needed to launch a new venture and different types of
promotional activities and channels are also mentioned in this report. Lastly, monthly cash
budget for pre-launching phase of venture are included in this present study.
TASK 1
P1 New venture and identification of specific target market
To launch a new venture in any market whether it is national or international, it is
necessary for a business person to build strategies so to expand their operations in effective way.
Globalisation acts as major driver that impact on every business (Read, 2016). With the help of
innovative technologies and distribution channels individual can sell and provide their services
on global scale. 5D Kart, is a new business venture which is an E-Commerce store going to
launch their business operations in international market in France, Europe. In their venture they
provide all products from A to Z to satisfy needs to consumers in effective way. In relation to
this, small plan for venture are described below in detailed manner:
In order to launch 5D kart E-Commerce Store internationally it is essential for a business
owner to re-evaluate their marketing efforts and formulate new strategies with the help of
innovative ideas so to launch their online store's in targeted market (Burns, 2017). As to gain
more rapid growth 5D kart, owner is required to analyse its competitors and big E-commerce
giants to analyse their strategies and improve their current polices. To launch their new venture
international market owners need to allocate fund for around 2,50,00 Euro to 3,00,00 Euro.

Objectives:
Entrepreneur of 5D KART have adopted SMART tool for setting up of their objectives.
Hence the objective will be to enhance their e-commerce sales revenue by 15% in 2 months.
Mission: “One place for all products from A to Z”. Online Stores of 5D kart will remain open
for 24/7 that will satisfy consumers in all possible way.
As there are many competitors already available in international market so, it is essential
for owner to modify their strategies and offer a uniqueness in their venture with the help of
innovative ideas to attract large base of customers towards them (Géraudel and Gundolf, 2017).
Mentioned below there are some important criteria which is required to be taken care of:
Identifying specific target market:
It is one the most important and initial stage which is required for a business person to
consider. In this, a defined targeted area is required to be analyse where a business can acquire
more profit. By identification of target market, business owners can rapidly generate more
profitability. Identification can be done on various basis such as, income level of individuals,
age, taste and preferences, lifestyles and believes. 5D kart business owner analysed overall
conditions of international market and segmented their customers on the basis of demographic in
which the company has targeted their potential customers on age group that is from 16- 60. By
targeting this customer zone, owner of 5D Kart can generate more revenue with less amount of
resources.
Competitive Analysis:
It is most important factor which is necessary for business owner to be taken care of. It is
essential to track negative and positive aspect of competitors to gain more advancement. It will
benefit business owners to modify their policies and strategies with innovative ideas and gain
more competitive advantages and market shares. In this present case scenario, Alibaba,
Amazon.Inc, jingdong and Groupon are some of the well-known brand leader in UK and
international market. In order to set its brand image globally, 5D Kart is required to evaluate and
examine their competitors policies and strategies in systematic way and modify their USP with
more innovate ideas and measures. This will be helpful for them in making right business
strategy by learning from competitors mistake. As a result, it will contribute in attaining their
goals and objective soon.

P2 Tangible and Intangible resources required by chosen organisation to launch a new venture
To launch a new venture it is essential for business owner to formulate systematic plan
and allocate effective resources to establish venture in new market in proper way. To accomplish
this target, it is important for business owner to gather required funds. This will benefit them to
operate their business activities in more effective way and gain more advantages (Liu and Wang,
2018). 5D Kart a E-Commerce Store is looking forward to launch their business in international
market in Europe, for this they have modified their business strategies and offer various benefits
that includes, 5D Kart sell all their products and services from A to Z to anyone around the
world. They provide 24/7 services to their customers. In addition to this, they have a unique
marketing strategy in which they offer rewards like, extra special discounts and surprise gifts for
their repeat customers and a special offer for their first time visitors. To acquire more consumer
base 5D Kart modified their marketing plans in which they offer their products and services in
quite affordable range. For this there are some requirements related to tangible and intangible
resources mentioned below:
Tangible Resources:
It is a physical asset that can be touched. There are different types of tangible resources
which help business organisations to gain more advancements. In this, there are different types of
physical elements like, tools and machinery, labour, plants and lands. In present study, 5D Kart
to launch their new business ventures internationally are required to manpower in order to
manage their websites and financial security and funds to operate their business operations in
formative way. To achieve their predetermined goals and objectives it is essential for 5D kart E-
Commerce store to provide proper guiding to their workforce and assist them in effective way as
to increase their efficiencies.
Intangible Resources:
These are critical assets that can not be touched. Intangible resource include elements
like, trademarks, customer relationship, goodwill, patents and many more. All these intangible
resources aid business to maximise their rate of profitability and become more consumer centric.
In context with present case scenario, 5D Kart require to allocate intangible resources like,
Browsers, Web Servers Software, database system, IP protocols & Ports as to protect personal
information of customers and other programming requirements.

Tangible and intangible resources help business to set their venture in systematic and
effective way. With help of all these resources they can achieve their long term gaols and set
their consumer centric image in global market in best possible way.
P3. Producing a credible proposal for launching a new business venture.
A business proposal assist an organisation in determining production cost and entire
activities which is needed to launch anew venture in a perfect way (Cosenz and Noto, 2018).
Through this, entrepreneurs can take effective decisions regards to run business successfully.
Generally, this type of proposal is made by consultancies which help owners in giving all
information related to business activities, requirement of finance through which they can attain
the set of objectives. In respect of this, a business proposal has been given below for 5D Kart E-
commerce stores.
Executive summary 5D Kart has initiated with new and innovative E- commerce
store which render and supply all products from A to Z to
satisfy needs to consumers in effective way.
Company description 5D Kart is a large E-commerce store that is located in France ,
UK and plans to expand in Europe region. This Store deals in
every field of E-commerce. This render the products related to
electronics, clothes, food products, accessories, etc. Customers
are even given a option where they can get offers and
discounts.
Market Analysis To gain attention of more customers, it is essential for
entrepreneurs to make effective planning and strategies. This
will help in doing work in a profitable manner (McGee and
Peterson, 2017). In respect with this, owner need to properly
analyse condition of marketplace as well as position of other
companies who are dealing in same sector. 5D Kart will robust
customer centric approach to analyse the customer buying
behaviour based upon preferences has helped them to have
competitive edge over their competitors. Company can
conduct PESTEL and SWOT to investigate market conditions

and acquire further knowledge.
Benchmarking In this, owner consider benchmark by setting standards of the
work in an effective way. It will support in ensuring about the
customers or employees that they are performing every tasks
according to set benchmarking with comparing it.
Financial projection 5D Kart has been initiated budget of around €2,50,00 to
€3,00,00. Entrepreneurs have invested in a 50:30 ratio. These
funds are utilised for maintaining effectiveness.
P4 Skills and capabilities to launch a new venture
To open or launch a venture, it is necessary for business owner to implement new
innovative ideas in their business functions to run their operations effectively. In order to
accomplish this, it is essential for business owners to acquire formative skills and abilities and
utilize them in systematic way to achieve more competitive advantages. Mentioned below there
are some elements of skills and abilities with the help of which an individual can launch their
new venture:
Leadership: Leadership is referred to as an ability of people that help them in
influencing or attracting group of people for accomplishment of their own personal motive.
Managers of 5D KART should pursue excellent leadership skills. This will further help them in
influencing and motivating their staff members and also ensuring effectiveness in working.
Leadership also leads to higher improved customer satisfaction. Owners of 5D Kart store should
be able to manage their workforce and provide them direction for enhancement in goodwill of a
firm.
Risk taking: Risk taking is a key function of every entrepreneur. A successful
entrepreneur is one who is capable of involving risk factor in their business. Entrepreneurs
should be able to bear risks as market situations are uncertain. They should be skilled enough to
survive any complex market situations. As this E-Commerce is recently set up, it is not known
that whether results will be positive or negative. So, owners should have ability that they can
face any uncertain situation.

Communication: Communication is lifeblood of every business in today's world. It is a
medium which is used for transferring thoughts and ideas to one another in a relatable manner.
Owners of 5D KART should use a formal communication for treating their customers.
Employees should involve a polite tone with customers and make them feel comfortable. This
will help in attracting customers towards 5D Kart E-Commerce store on a daily basis and
enhance their growth.
Delegation: Delegation means to transfer a certain task to individuals. It is essential that
entrepreneur of 5D KART should be able to delegate his duties to subordinates depending on
their skills. Delegation of tasks makes work easier and quicker as owners have lots of tasks to
perform and one person cannot manage entire operations of business. This reduce work load and
also helps in timely completion of tasks.
Subsequently, above mentioned variables will help business owner of 5D Kart E-
Commerce store to improve their proficiencies and become costumer centric in international
market. This will benefit them to increase their level of brand image in marketplace and gain
more competitive advancements. All these skills can be acquired by indulging self in all
activities. While, delegation can be developed by assigning task to different individuals on
regular basis in effective manner. By doing these actives on contentious basis with the help of
formative leadership skills all these can be acquired in remarkable way that will aid in further
improvement.
TASK 3
P5 Different promotional activities and channels to launch a new venture
It is essential for a business unit to conduct marketing in systematic and attractive way to
acquire attention of customers in effective way (Douglas, 2017). In relation with 5D Kart,
business owner can take advantages of different techniques and tools to promote their venture in
global market and strengthen their position for long run. Business owner of 5D Kart E-
Commerce store can advertise their venture on various websites and social media platforms such
as, Twitter, Facebook, Instagram and other promotional websites. In addition to this, attractive
slogan made by business venture of 5D Kart can also effectively attract attention of customers.
Mentioned below there are some promotional activities and pricing strategies described:
Web based showcasing:

In this type of channel business venture can deal with clients in personal way. This can
be done with the help of official sites, messages and web-based social networking locales. 5D
Kart can take advantages from various social media websites like Facebook, Instagram and
twitter to showcase to promote their venture and attract attention of customers from international
market (Read, 2016). As technology is expanding with rapid phase and covering every part of
individual, this will benefit company to become more consumer centric and build powerful
position in global market.
Publicizing:
It is paid interchanges in which company take advantages of different platforms to
promote their brand and venture. In relation with 5D Kart, it is essential for the owner to
examine certain factors like cash, message, estimation and media. They can promote their
venture on by giving advertisements on television, radio, newspapers, magazines and different
social media websites.
Different Pricing strategies
Market penetration: This strategy focuses on grabbing customers attention by providing
them products and services at lower prices in comparison to competitors. It will be beneficial for
company in keeping them differentiated from competitors.
Economy pricing: In this strategy, organisation is mainly providing low cost products
for Price conscious customers. The main focus of the company in reducing their production cost
so that cost price of their products could be minimised effectively.
From the above mentioned pricing strategies, market penetration is best suitable
strategies for 5D Kart as it will help them in attracting more customers.
P6 Appropriate promotional activities plan to launch both launch and pre-launch
Pre-launch Promotions: In this section, owners are required to develop their separate
individual website of their venture. In relation to this, business owner of 5D kart E-commerce
store made their unique tag line “ Place where something special happen everyday” in order to
promote their brand and acquire attention of large consumer base towards their e-commerce store
website. They also offer their marketing services in other different social media applications.
Launch Promotions: In this, activities are conducted after a venture is launched in
predetermined way in a marketplace (Santos, 2015). In this, business person is required to put

more attention towards attracting large base of consumer base. They can promote their websites
on social media platforms like, Facebook, Instagram, blogging and other social media platform.
Brand Development: It is essential for 5D Kart, to conduct their branding in effective
way so to maximise image of their business in global market. This will help them to gain more
competitive advantages and strengthen their position in global market.
P7 Monthly cash budget for pre-launch phase of venture
Proper formation of budget plan aid business ventures to determine actual requirement of
funds they need to allocate as to operate their business functions smoothly (Kuratko and
Hornsby, 2017). This will benefit them to conduct their day-to-day activities in more effective
manner. In this present case scenario, owner of 5D Kart E-Commerce store are required to
consider basic factors like general cost, liabilities and resources before making a business plan.
Mentioned below there are budget plan of 5D Kart:
Pre launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500
Total inflows 10000 3000 3000 4500 1500 3500
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500
Variable : Direct material 300 300 200 300 150 500
Total outflows 2300 2800 1700 2300 1350 2000
Net cash flow 7700 200 1300 2200 150 1500
Opening balance 0 7700 7900 9200 11400 11500
closing balance 7700 7900 9200 11400 11550 13000
Particulars July August
Septembe
r October November
Decembe
r
Cash inflows
Investment
Credit sales 4200 1000 2000 800 1200 1500
Total inflows 4200 1000 2000 800 1200 1500

Cash outflows
Fixed : Equipment’s 800 200 300 100 600 300
Variable : Direct
material 300 400 500 100 100 400
Total outflows 1100 600 800 200 700 700
Net cash flow 3100 400 1200 600 500 800
Opening balance 13000 16100 16500 17700 18300 18800
closing balance 16100 16500 17700 18300 18800 19600
Post launch cash budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500
Total inflows 9200 2000 7500 3000 5000 6500
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500 1100 1500
Variable : Direct material 350 300 250 150 100 500
Total outflows 2850 1500 1750 2650 1200 2000
Net cash flow 6350 500 5750 350 3800 4500
Opening balance 0 6350 5850 11600 11950 15750
closing balance 6350 5850 11600 11950 15750 20250
Particulars July August September October November December
Cash inflows
Investment
Credit sales 1200 3200 1500 8200 1250 3210
Total inflows 1200 3200 1500 8200 1250 3210
Cash outflows
Fixed : Equipment’s 1200 600 500 500 1200 700
Variable : Direct
material 500 250 450 250 1300 500
Total outflows 1700 850 950 750 2500 1200

Net cash flow -500 2350 550 7450 -1250 2010
Opening balance 20250 19750 22100 22650 30100 28850
closing balance 19750 22100 22650 30100 28850 30860
Appropriate legal form for venture:
Government of every country amended some laws and regulations which is necessary for
all business organisations to abide as to perform their operations in legal and ethical way
(Fisher, 2017). This will benefit business ventures to form their internal and external
organisational structure in effective way. In relation with 5D Kart store which is going to launch
their new venture in E-Commerce Sector, it is necessary for their business owners to have proper
knowledge of governmental rules that include, laws related to shipping restrictions, holding of
substantial inventory, age restrictions, licenses and permits and PCI compliance. Mentioned
below there are different types of ventures:
Sole Proprietorship: In this type of business venture there are sole individual who
undertake responsibility of all risk and profit and run their business organisation individually.
This type of business have flexible and simple legal structure.
Partnership Firms: It is one of the most common business structure in which there are
more than one owner. In partnership, there is a partnership agreement between owners. Partners
are responsible to bring capital, machineries and land as per according to their division of share
(Fisher, 2017). This will aid them to launch ventures with more cost effectiveness.
As per the above specified legal structure, it can be said that sole proprietorship is the
best suitable legal structure for 5D Kart as it will be beneficial for taking instant decisions
without engaging anyone else in it.
CONCLUSION
As per the above mentioned report, it has been concluded that to launch a new business
venture in national and international market, it is essential for business owners to formulate
innovate strategies to generate more efficiencies in their operations. They can accomplish their
goals and objectives by gaining more skills and knowledge of different measures and
innovations. It is necessary for owners to conduct and evaluate all forces in market and then
develop cost effective strategies. In addition to this, they are required to make strategies related
to promotions and marketing of their websites to attract more attention of consumers towards

them. Lastly, with the systematic allocation of funds and resources like tangible and tangible,
business owners can become more customer centric and can acquire more profit in international
market.

REFERENCES
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Online
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