Launching a New Business: Coffee World

This report focuses on launching a new business named Coffee World, including target markets, competitive analysis, resources required, proposal, skills and capabilities, promotional activities, and cash budget.

LAUNCHING A NEW
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Discuss about new venture identifying specific target markets and undertaking competitive
analysis........................................................................................................................................1
Identifying the tangible as well as intangible resources that help for launching a Coffee world
enterprise......................................................................................................................................2
Produce a credible proposal to launch Coffee world as a new venture.......................................3
Describe about the different skills, capabilities required to launch a coffee world enterprise....4
Different promotional activities and channel that will support the launch and justification of
choice...........................................................................................................................................4
Development of an appropriate promotional activities plan for both launch and pre-launch.....5
Production of an itemized monthly cash budget for the pre-launch phase of the venture and the
first 12 to 18 months preceding launch........................................................................................6
uggestion of an appropriate legal form for the venture starting and reason because of which it
has been chosen...........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Venture can be defined as a kind of private equity that includes various uncertainties. It is
a kind of strategy used by organizations for business expansion. This report will lay emphasis
upon launching a business named Coffee World. This report will focus upon background of
venture idea, competitor analysis, resources required, proposal for launching new venture, skills
and capabilities required, promotional and pricing activities, promotional activity plan, cash
budget and appropriate legal structure for the business.
MAIN BODY
Discuss about new venture identifying specific target markets and undertaking competitive
analysis
Coffee world is a type of business that will make an effective plan to launch in different place or
area. Due to COVID-19, many people are avoiding to travel from one place to another. So as
great opportunities for this business where they will provide the online delivery services to the
consumers at home (Klyver and Arenius, 2020). Nowadays, it has been rapidly increasing the
demand of online presence. That’s why, using online medium for taking their coffee order and
provide the service at their specific location.
Through this business, it is mainly targeting the potential consumer who’s aged below 40
years who love coffee and their various products. From this type of venture, it will focus on the
specific need, demand of potential consumers. Sometimes, this new venture will include organic
coffee product that will attract more and more consumers towards organization.
Competitive Analysis
Coffee world will concern about the competitive analysis so that they can use Porter’s
five force model to identify the current situation or condition of competitive environment for
new venture.
 Threat of new Entrant- For entering in marketplace, Coffee world need to invest large
capital and include all essential resources. Sometimes, it is very difficult to enter in
competitive marketplace. Threat of new entrant is moderate.
 Competitive rivalry- Nowadays, competition level is extremely high in this coffee world
business. There are already established the multiple coffee brands such as Starbucks. In
this way, it can identify that threat of force is high (Martin, Javalgi and Ciravegna, 2020).
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 Bargaining power of buyers- in context of new business venture, bargaining power of
buyer is moderate. There are lot of substitute products available in market. It is not only
applicable switching cost from one item to another but also considerable low price.
 Bargaining power of Supplier- The bargaining power of supplier is moderate. In this way,
it can be identified the different suppliers that available in marketplace. At certain point,
it also required for Coffee world venture to use raw materials (Barrios, Hochberg. and Yi,
2020). But there will be assurance from supplier side where they can provider or not
within same price rate.
 Threat of substitution- The threat of substitution is moderate, there are various
competitors who have provided the same kind of items within competitive price. In this
way, Coffee world will provide some additional items and delivery service to their client.
That’s why, it can reduce force of threat.
Identifying the tangible as well as intangible resources that help for launching a Coffee world
enterprise
In Coffee world, there are different type of tangible as well as intangible resources required for
launching a new enterprise in marketplace.
Tangible Resources
 Premises- Coffee world enterprise will require to develop or create premises whereas
each and every staff members working together. It is important part of business where all
essential resources setup to make a coffee items for client (Podeschi, 2020).
 Equipment’s- there are various equipment’s essentials that help for Coffee world to make
different kind of coffee according to demand, need and taste of client. In this way, it will
require Coffee markers items.
 IT facilities- Coffee world enterprise will provide the online booking facilities through
application, website. It is also tracking the accurate location of client and delivery within
few minutes.
Intangible Resources
 Skill and capabilities- These are considered as important aspect for new venture
establishment. Owner of coffee world will hire or recruit the talented people, who have
skilled, capabilities to find the specific need or demand of client in proper manner
(Martin, Javalgi and Ciravegna, 2020).
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 Human resource- coffee world business will increase their workforce while assigning the
different tasks so that it can easily fulfil need of consumers.
 Social and financial resources- these are important resources that need to create an
effective plan to identify overall estimation of business development.
Produce a credible proposal to launch Coffee world as a new venture
Business: launching the new venture such as Coffee world business
Problem that will resolve by venture: Nowadays, it has been identified that spreading COVID-19
everywhere. In this way, consumer face problem and not going anywhere due to safety purpose
(TYULIN, CHURSIN and YUDIN, 2017 ). In this way, this type of business will help for
providing delivery service at home. It is totally depending on the online which may increase
visibility through website, application.
Proposed Coffee world (New venture)- this business will provide the different kinds of coffee
and also include herbal or organic coffee that help to protect or secure lives of people. it help to
fight against COVID-19.
Planning resources for Coffee world such as equipment, IT facilities, capabilities, skills and other
premises. There are considered all essential part of new business development. That’s why, it
will develop an effective proposal or plan to include all strategy, financial detailed and
contingency procedures in business (Martin, Javalgi and Ciravegna, 2020). Typically, Coffee
world will use pricing strategy that will attract more and more consumers towards brand.
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Describe about the different skills, capabilities required to launch a coffee world enterprise.
There are different kind of skills, capabilities which require to launch a coffee world business in
marketplace.
Skills and capabilities
 Information technology and network management system- it is consider as essential skill
that support for establishing coordination between IT department and management. in
order to exchange information from one place to another.
 Team work – it is also another type of skill that help for staff members to find out need or
demand of client. Afterwards, employees working together to deliver order, items of
client at their place.
 Marketing and promotion activities- Owner of Coffee world is focused on the capability
of each employee and then try to implement suitable strategy (Klyver and Arenius, 2020).
In order to target more consumers where they can purchase item from Coffee world
enterprise.
The primary significance of building credibility in start-up venture, identifying risk factors or
responding to change. These are different skills and capabilities which is always support for
eliminating any kind of risk, threat regarding business such as competitive (Martin, Javalgi and
Ciravegna, 2020). It also inspiring or motivating the employee to launch venture in effective
manner. this will help for establishing business in COVID-19 situation while gaining more
competitive advantage.
Different promotional activities and channel that will support the launch and justification of
choice
There are many different kinds of promotional channels and activities that can be used by
Coffee World for supporting their launch and promoting the new venture which they are
planning to open. These promotional activities and channel can effectively help Coffee World’s
new venture to reach their target audience.
 Direct marketing promotional activity: It is one of the most common type of promotional
activity which is carried out by SME’s in which pamphlets, broachers distribution is done for
promotion of new business or of new venture (Chen and et.al., 2020). But this activity cannot
be used to reach large number of target audience, it is time consuming and mostly people do
not focus upon broachers, pamphlets etc. and throw it away.
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 Offline advertising: It is another common type of promotional activity in which business
organization in which companies chosen medium such as newspapers, magazines etc. for
promotion of their new business or venture (Waheed and et.al., 2017). Coffee world can use
this activity for reaching their target customers where they can provide all kinds of important
details about new venture.
 Online paid advertisement: Using this promotional activity Coffee World can pay various
online channels for promotion of their new venture which they are going to launch. But they
need to make sure that their online advertisement is quite attractive because if it is not
attractive then people will ignore their online advertisements.
 Social networking sites promotional activities or social media as promotional activity
channel: Today Social media is one of the best promotional channels that can be used by
Coffee world to reach their target customers for lunching their new venture. Today most of
the people uses one or other kind of social networking website so Coffee World can use this
as a promotional channel for promotion of the new venture. But they need to monitor it
continuously in order to identify its success ratio.
Development of an appropriate promotional activities plan for both launch and pre-launch
7 P marketing Mix strategy is one of the best way though which promotion of new venture
for both pre-launch and launch can be launched. 7 P marketing mix strategy for Coffee World is
as follows:
Product: Coffee World will provide different kinds of products to their customers like: hot
beverages, cold beverages, coffee food items, pastries, fast food items etc. Details of each item
will be printed just below the item (Singh, Singh and Kaur, 2020). Not only this all the items
with description and price will also be displayed in front of customers on screen.
Price: Prices of all the products will be according to the size selected by the customers like size
of small cold coffee will be lower than price of medium sized cold coffee. In the first week of
launching new venture different kinds of offers, discount, coupons will be provided to customers
on different items.
Promotion: Promotion methods that Coffee World will be selecting for promotion of new
venture have already been explained that are: direct marketing, offline advertising, online paid
advertising and social media marketing (Park, 2018). In which Pre-launch activities will be
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social media marketing and direct marketing. And launching activities will be offline advertising,
online paid advertising.
Place: new venture will be collated 2 miles from old venture at main market location so that
home delivery to all the customers across city can be done easily.
Process: Coffee World will be using Café management software for recording and managing all
the online orders so that on time customer service can be provided to them.
People: Proper training will be provided to customers so that they can effectively manage all the
home delivery orders and orders of customers vising the venture. They will be wearing uniform
with Coffee World and their name with designation printed on it so that customers can easily
identify whom to contact.
Physical Evidence: recyclable material will be used for packing of products for home delivery
with Coffee World name printed on it.
Production of an itemized monthly cash budget for the pre-launch phase of the venture and the
first 12 to 18 months preceding launch
Cash Budget for pre- launch phase
Jan Feb March April May June July Aug Sept oct no dec
cash inflow
sales 20000 24000 28800 34560 41472 49766 59720 71664 85996 103196 123835 148602
other income 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000
total cash
inflow 25000 29000 33800 39560 46472 54766 64720 76664 90996 108196 128835 153602
cash outflow
salaries 5000 5000 5000 5000 5000 5000 5000 6000 6000 6000 6000 6000
legal
expenses 2000 0 0 0 0 0 0 0 0 0 0 0
infrastructure 4000 0 0 0 0 1500 0 0 0 0 0 0
rent 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
utility bills 1000 1000 1200 1200 1500 1500 1600 1600 1700 1700 1700 1800
inventory
cost 4000 5000 5000 5000 6000 6000 6000 6000 6000 6000 6000 6000
long term
liability 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500
total cash
inflow 19500 14500 14700 14700 16000 17500 16100 17100 17200 17200 17200 17300
net cash 5500 14500 19100 24860 30472 37266 48620 59564 73796 90996 111635 136302
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flow
Above cash budget includes Opening cash budget which is also known as cash outflow
statement, and receipts which is also known as cash inflow. Opening budget includes rent, legal
cost, infrastructure cost etc. Whereas, receipts include: income ways like sales income etc. it
includes ways though which income can be generated.
uggestion of an appropriate legal form for the venture starting and reason because of which it has
been chosen
Some of the main different types of legal forms for business are as follows:
 Sole trader: Person who is self-employed and is solely responsible for business and its
liabilities.
 Limited company: It is a kind of organization that has been set to run a business. In this
business finances and person finances are kept separately (Bublienė and et.al., 2019).
 Partnership: It is a kind of business which is run by two or more than two employees.
 Community interest companies: these are type of businesses that focuses upon social issues
for benefit of society.
 Franchising: It is a kind of business which is used by social enterprises and is operated by
trust.
Coffee world will have sole trader legal form as it will be managed and controlled by a single
person i.e. by the owner of the café.
CONCLUSION
From the above report it can be concluded that it is important for an enterprise to focus
upon various factors before launching a new venture. They need to identify different types of
resources required by them; skills required for operability of new business. For launching new
venture business need to focus upon using different kinds of promotional activities and channel
and then develop a promotion plan in order to reach and attract target audience. It has also been
concluded that before launching a new venture, organization should develop a cash budget for
identification of expenditure and revenue and identify the type of legal form they will be
focusing upon.
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REFERENCES
Book and Journals
Barrios, J.M., Hochberg, Y.V. and Yi, H., 2020. Launching with a Parachute: The Gig Economy
and New Business Formation (No. w27183). National Bureau of Economic Research.
Bublienė, R., and et.al., 2019. Legal form determination for the development of clusters'
activities.
Chen, P., and et.al., 2020. Promotional pricing and online business model choice in the presence
of retail competition. Omega. 94. p.102085.
Klyver, K. and Arenius, P., 2020. Networking, Social Skills and Launching a New Business: A
3-Year Study of Nascent Entrepreneurs. Entrepreneurship Theory and Practice.
p.1042258720967063.
Klyver, K. and Arenius, P., 2020. Networking, Social Skills and Launching a New Business: A
3-Year Study of Nascent Entrepreneurs. Entrepreneurship Theory and Practice,
p.1042258720967063.
Martin, S.L., Javalgi, R.R.G. and Ciravegna, L., 2020. Marketing capabilities and international
new venture performance: The mediation role of marketing communication and the
moderation effect of technological turbulence. Journal of Business Research. 107. pp.25-37.
Park, D.K., 2018. Analysis of a Promotional Plan for Effective Use of Radio Waves in
Japan. The Journal of Korean Institute of Electromagnetic Engineering and
Science. 29(12). pp.953-962.
Podeschi, R.J., 2020. Lessons Learned from Launching and Advising a Student-run Technology
Consulting Venture. INFORMATION SYSTEMS EDUCATION JOURNAL. 18(5). p.5.
Singh, J., Singh, J. and Kaur, A., 2020. Social Media Influences the Promotional Plan of
Organisation (Doctoral dissertation, Tunku Abdul Rahman University College).
TYULIN, A., CHURSIN, A. and YUDIN, A., 2017. Production capacity optimization in cases of
a new business line launching in a company. Revista ESPACIOS, 38(62).
Waheed, A., and et.al., 2017. Is Marketing Limited to Promotional Activities? The Concept of
Marketing: A Concise Review of the Literature. Asian Development Policy
Review. 5(1). pp.56-69.
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