Launching a New Venture

This document provides a comprehensive guide on launching a new venture. It covers topics such as target markets, competitive analysis, tangible and intangible resources, skills and capabilities, and promotional activities. The document also includes a detailed proposal and financial projection for the new venture.

Launching a New Venture

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.....................................................................................................................3
P2 Specific tangible & intangible resources for new venture......................................................4
P3 A credible proposal to launch a new venture........................................................................5
M1 Apply a range of techniques and methods for competitive analysis to achieve competitive
advantage.....................................................................................................................................6
M2 Strength and weaknesses of new venture and analyse areas of risk.....................................7
Strength- It delivers various varieties of coffee along with the consistency of food and is
known to be the powerhouse of Michael's coffee. Strength is its place that helps to attract
young people and improves its level of sales..............................................................................7
D1 Develop a detailed proposal that demonstrate analysis and reflection of competitive
environment with supporting contingency planning to reduce risk.............................................7
TASK 2............................................................................................................................................7
P4 Assessing skills as well as capabilities in order to launch a new venture at the marketplace.
.....................................................................................................................................................7
M3 Evaluate range of skills & capabilities needed for launch of new venture and critically
evaluate how it can be develop by using appropriate techniques................................................8
D2 critically discuss supporting costs & timescales needed for acquiring or developing skills
as well as capabilities of a launch team.......................................................................................9
TASK 3............................................................................................................................................9
P5 Various promotional activities used by an entrepreneur while launching new Cafe at the
marketplace..................................................................................................................................9
P6 Develop an appropriate promotional activities plan for both launch and pre-launch..........10
M4 Evaluate an appropriate promotional plan for both launch and pre launch........................11
D3 Critically evaluate different promotional activities to support justification........................11
TASK 4..........................................................................................................................................11
P7 Monthly cash budget for the pre-launch phase.....................................................................11
M5 Justify an itemized monthly cash budget showing one off costs, opening cost and
anticipated income post and pre launch.....................................................................................14
D4 Create a pre and post launch monthly itemised cash budget based on financial resources,
including key budget a budget categories and sub categories with contingency measures for
anticipated outcomes.................................................................................................................16
P8 Applicable legal form for the venture..................................................................................17

CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Launching a market-based enterprise is one of the most difficult tasks as it requires a lot of
funding, market analysis as well as the capacity to interact with certain uncertainties and issues
suddenly arise (Kirkley, 2016). In addition to this, everyone and every entrepreneur needs some
kind of skills that will help them to identify customers to achieve objectives in an efficient
manner. In this report, Michael's Cafe is selected as the base organization situated in the United
Kingdom consumer market. Michael's Cafe offers high quality coffee drinks, which are available
in various flavours, as well as shakes, beverages and baked goods. This report includes
discussions on the launch of a new market project along with its directed product differentiation.
In contrast to this, there is a need for meaningful as well as intangible resources that can help
small company firms to establish themselves on the market. In addition, the different skills and
capacities of an investor would be discussed in this project. At the end of the report, the budget
also included so that the whole structure of the enterprise can be successfully executed by the
entrepreneur.
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.
Michael's Café is a small café offering bakery products, food products and different flavors
of coffee, brewed drinks and much more. In addition, it also offers facilities such as cooking,
online ordering, and customized baking at the consumer's own premises.
One of Michael's cafes' goals is to provide high-quality food with great taste. The advancement
of its new idea helps bring people to the awareness of the United Kingdom
Target market- Michael's cafés offer both value and service to the client's requirements. Its
target market is young people, as it is determined that these people would prefer to absorb coffee
and spend time in cafes. This target market assists the business to meet its goals and task in an
efficient manner.
Competitive analysis- It is essential for Michael's café executives to assess their competition
and their methods, as well as helping to develop a more effective plan that includes ones views to

coffee and has a positive effect on their sales and profit margins levels (Stayton and
Mangematin, 2019).
Porter’s five forces analysis- It is considered to be an effective tool that helps an entity to
acquire insight of the intensity of play that exists on the market. The higher Michael's cafeteria
officials use this term in order to learn the present business place. It includes, in total, five
strategic powers which are listed out below:
Competitive rivalry- There are a huge amount of cafes in the UK that similar products and
services, and Michael's cafe is at a high risk. It is essential for Michael's cafe managers to focus
on delivering quality products and services and to maintain a good relationship with clients as
they help to maintain them for longer periods of time.
Bargaining power of buyers- In the sense of Michael cafés, the purchasing power of the
customers is evaluated as strong as fresh coffee and provides the commodity according to the
customer's desire. In addition to this, Michael's café needs things distinctive that able to gain
people and improve their sales levels appropriately.
Bargaining power of supplier- It is a modern café where there is a small range of vendors to
provide raw materials such as coffee beans. This risk is high for Michael's café, so it is crucial
for its management to create good relationships with suppliers in order to reduce the shortage of
raw materials.
Threats of substitutes- Michael's coffee delivers various varieties of coffee that are exclusive to
consumers and thus the chance of replacement is low. In order to retain the competition, it is
necessary for managers to provide innovative offerings that contribute to an improvement in
revenue and profitability.
Threats of new entrants- It is necessary to have a strong brand image, which is not easy to obtain,
in order to reach such a form of business. In fact, it is known that the food industry wants further
analysis and knowledge on consumer dynamics in an acceptable manner.
P2 Specific tangible & intangible resources for new venture.
Any new company growing money to carry out its practices and operations in an efficient
manner. There are, in fact, two categories of resources that are concrete and intangible services
that are required to deliver effective service to customers. The resources are defined below in the
context of Michael's café:

Tangible resources- It is defined as a measurable resource that can be calculated in physical
form. This includes, in fact, machinery and building as material commodities. With regard to
Michael's café, the key assets are the microwave, coffee grinder, ice maker, espresso machine,
fridge, cookware and much more that will help to provide excellent customer service.
Intangible resources-It is determined that tangible resources are not purely physical and are
lengthy-term resources for an organization (Adomako, Danso, Boso and Narteh, 2018). It
contains copyrights, brand image, customer connection, intellectual property rights, copyrights,
industrial culture and so many more. With regard to Michael's Café, it is essential for its
supervisors to have their name patented in order to avoid any problems. In addition, it is
important to provide information to staff so that they can serve consumers who directly have a
positive impact on their brand identity and their position in the market.
The intangible and tangible time permits above will help Michael's cafe to accomplish its
intended outcome and attract young people's attention to its item as well as its service providers.
P3 A credible proposal to launch a new venture.
It is determined that any new venture requires the successful functioning of the plan before
enter the business (Villani, Linder and Grimaldi, 2018). A plausible proposition mainly concerns
the client, the analytical sector and its rivals. In addition, involve various tactics that are
constructed following the identification of competing companies. The proposition plan is
analyzed to help relevant powers develop plans and tactics in an appropriate manner. The
following is a concept strategy for the long term production of Michael's cafe:
Executive summary Michael's Café is a small café offering new technologies such as
special types of coffee, wiggles, brewed drinks, and baked goods, and
so on. In addition, it also offers other facilities, such as custom baking,
cooking, and online ordering and so on.
Company description Michael's Café is a small café located in the United Kingdom and is
purchased by four people who share both profit and loss in equal
proportion. The location of the café is close the university and the
owner has been rented.

Vision
To achieve a leadership role in this field by providing exclusive and
reliable service to the consumer, taking into account industry dynamics
and creative technologies as well.
Mission
Create brand identity as a creative café selling various varieties of
coffee and food items in order to become a popular location for young
people.
Market analysis It is essential for Michael's Café managers to analyze the international
market as they help to seize opportunities and reduce the level of
threats related to external variables. For this function, PESTLE
analysis is used to acquire awareness of uncontrollable variables that
have an effect on its operations and results as well.
Benchmarking The rules are established by the middle managers in order to track the
efficiency of the team members. It helps the company to improve its
internal performance and enhance plans and strategies that consider the
strategies of its competing companies. It would help to satisfy
consumer needs and retain them for longer periods of time.
Financial projection Michael's café is a small café and begins business with a total deposit
that is equally decided to invest by number of coffee owners. It is
necessary for owners to allow good use of the funds if they are to
produce improved performance and the required objectives.
M1 Apply a range of techniques and methods for competitive analysis to achieve competitive
advantage
In order to gain a comparative edge, the five-strong configuration of the porter is used by
the owners of Michael's café. It is analyzed that this definition assumes five forces model
consisting of high, low / mid risk. It is essential for an organization and provides products and

great products as well as services on the market. In addition, it is crucial to concentrate on
satisfying consumer demands and to establish a positive partnership with them, because it tends
to improve revenue and also helps to gain competitive edge in the marketplace.
M2 Strength and weaknesses of new venture and analyse areas of risk.
Strength- It delivers various varieties of coffee along with the consistency of food and is known
to be the powerhouse of Michael's coffee. Strength is its place that helps to attract young people
and improves its level of sales.
Weaknesses- There is many competitors that prevail in the global market and impact its
performance. In fact, it is fresh to the industry and thus did not have a strong brand reputation on
the sector.
It is determined that there are different risks associated with the new venture. With respect to
Michael's café, there is a danger that there will be no commercial growth, technological risk,
product risk price and so on.
D1 Develop a detailed proposal that demonstrate analysis and reflection of competitive
environment with supporting contingency planning to reduce risk
It is determined that the creation of a strategy and program allows an organization to establish
innovative approaches to gain a strategic advantage in the marketplace (Géraudel, M., Gast, J.
and Gundolf, 2017). In doing so, proprietors can also learn about the tactic of competing
companies and thus have the chance to develop a more efficient system and reduce the level of
threat and risk associated with new project.
TASK 2
P4 Assessing skills as well as capabilities in order to launch a new venture at the marketplace.
Every business shall be established by an individual with the aim of achieving growth and
efficiency in a competitive market. This is important for an entrepreneur to have any kind of
expertise and qualifications in order to be able to start a new commercial enterprise in an
acceptable manner. In comparison to Michael's cafe, it's been studied that it is important for the

holder of the undertaking to have some skills that will help them capture share of the market.
Several of the skills and knowledge needed by a businessman are as follows:
Leadership- It refers to the capacity of a person to manipulate a broad number of people to
accomplish their own goals or motivations (McGee and Peterson, 2019). In the current sense of
Michael's cafe, the manager of the cafe has to have strong leadership abilities, with the aid of
which they can effectively motivate the members of their staff to increase the degree of customer
service. It has been suggested that the employer has to control the employees and direct them in a
consistent direction so that they can boost their brand identity.
Communication skill- Communication describes a mechanism in which ideas are efficiently
exchanged from one individual to another. In reference to Michael's cafe, the director uses a
friendly approach towards his team members to make them feel relaxed at work. Together with
these administrators, they ought to connect with their staff on a time-to - time basis so that they
will feel empowered and supported, and with the aid of which they can deliver high-quality
service to their clients.
Risk taker- Another main skill needed by an investor is risk-taking, which allows to take risks in
an appropriate way that is possible on the competitive market (Terjesen, 2016). In respect to the
fresh enterprise that is Michael's cafe, the developer of the cafe has the courage to take chances,
and the explanation for that is that the business climate is uncertain. As a result, both positive
and negative changes are emerging in the marketplace that the entrepreneur wants to confront in
order to stay competitive for a longer period.
As per the above described abilities and skills, it is very crucial for a business to have such skills
so that they can accomplish their predetermined goals and objectives in an efficient manner.
M3 Evaluate range of skills & capabilities needed for launch of new venture and critically
evaluate how it can be develop by using appropriate techniques.
Various resources and expertise are needed to develop a business endeavour that involves
strong communication skills, problem-solving skills, time management skills, conflict resolution,
and so on. It can be established by offering training and development sessions in an appropriate
manner. In addition, it will help to provide quality service as well as develop a strong
relationship with suppliers.

D2 critically discuss supporting costs & timescales needed for acquiring or developing skills as
well as capabilities of a launch team
In order to have training and learning opportunities to improve the expertise and strengths of
staff, it costs the business and often takes resources (Anglin, McKenny and Short, 2018). It is
analyzed that a minimum of 25-30 days of practice is required for the proper development of
such skills. It will assist an entity to make sure that the employees deal with client complaints
and reach goals within a set timeline.
TASK 3
P5 Various promotional activities used by an entrepreneur while launching new Cafe at the
marketplace.
Through and every business enterprise is expected to implement various kinds of
marketing strategies to sell their goods on a competitive market. In the current context, it defines
that the advertising manager is responsible for popularizing the offerings of Michael's café on the
industry. According to the cafe, a wide range of advertising methods have been introduced by the
company to popularize sales on the United Kingdom market. Any of the advertising events will
be addressed as follows:
Advertisement- This is one of the most successful advertising practices conducted primarily by
firms with the goal of growing the visibility of their product in the market. Here, the marketing
director of Michael's cafe can essentially make use of a number of forms of advertising, such as
recreational ads, leaflets, pamphlets for the aim of encouraging their cafe.
Social media- This is another form of promotion strategy that is quite common among decades.
It has been discussed here that social networking is one of the cheapest and most successful
means of advertising (McKelvie, Wiklund and Brattström, 2018). With relation to Michael's
cafe, the respective manager of this cafe will easily have made use of this promotional approach
because it is very inexpensive for them and also delivers efficient and useful results that will
improve their sales efficiency.
Sales promotion- In this sales practice, the key goal of the business is to provide consumers in
shops with a stronger supply in several respects. Here, Michael's Cafe Manager can effectively
pursue this key information by merely giving appealing discounts, coupons, display ads and
loyalty incentives to its clients. They can also positively control users by offering good taste

fresh produce at very low prices. It could certainly help them to entice cash-oriented people to
them in the right way.
On the basis of the review given on the above described promotional strategies, it can be
assumed that the marketing director of Michael's Café strongly believes that the use of all these
strategies is price-effective in implementing them. It may also be claimed that making use of
such Michael's whole cafe might quickly affect the interest of prospective buyers to themselves,
which would improve both the sales success and the productivity of the business efficiently.
P6 Develop an appropriate promotional activities plan for both launch and pre-launch.
Marketing campaigns are said to have a very important role to play in the expansion and
development of a business enterprise. These are the tasks used by each corporation to raise
awareness of services and goods in a competitive marketplace and to encourage the brand. With
respect to Michael's cafe, it is said the sales director is involved in numerous marketing events
both in the pre-launch and comment-launch of the cafe. Different sales activities will be
discussed as follows:
Pre-launch promotion: Marketing strategies are claimed to have a very significant role to play
in the growth and creation of a product (Kowalik, Danik and Sikora, 2017). These are the tasks
that each company undertakes to inform people of goods and services in a competitive
environment and to promote the brand. With regard to Michael's cafe, it is mentioned that the
sales director is active in a range of marketing activities, both in the pre-launch and the reply-
launch of the cafe. Various sales actions will be described as follows:
Advertisement: It consists of advertisements composed of print media such as pamphlets,
newsletters, catalogues, and much other (Tracey, Dalpiaz and Phillips, 2018). These kinds of
advertisements are easily accessible to Michael's cafe, as well as promoting them on the industry
before even deploying products.
Social media: This applies to another most powerful method for marketing goods on the market.
In regards to Michael's cafe, the marketing director establishes a presence on various social
networking sites such as Twitter, Face book, LinkedIn and much other. They can comfortably be
run by them. With the help of the adoption of these systems, market knowledge was formed in a
positive way before the item was launched on the market.

Launch promotion- In this sales tactic utilized by the company enterprise to maintain their
existing clients for a longer period. As a result, this will help to increase the total sales of
products on the competitive environment. In this case, the marketing manager of Michael's Café
utilized different strategic marketing methods to entice young customers as well as keep routine
decisions in an effective manner.
Sales Promotion: It consists of various advertising activities within an organization, such as
discounts, vouchers, benefits, allegiance rewards and many more. In the present sense of
Michael's cafe, the brand department of the corporate company adopts subscription services as
well as reward rewards so that they can keep their existing clients for a prolonged period of time.
M4 Evaluate an appropriate promotional plan for both launch and pre launch.
It has been explored that there are different advertising strategies and initiatives embraced
by business projects at all points, such as pre-launch and post-launch (Auschra, Braun, Schmidt
and Sydow, 2019). For the marketing of goods and services prior to the opening of a market
business. In the sense of pre-launch social networks, one of the best strategies is to launch
personal selling, while the most sensible methodology used by Michael's Café's marketing
department is to attract and retain a large number of customers.
D3 Critically evaluate different promotional activities to support justification.
Each operation has a positive and negative effect on the development and performance of
the company enterprise (Paul and Rosado-Serrano, 2019). Similarly, marketing strategies have
both beneficial and detrimental effects which have a significant impact on overall market
performance. The positive benefit is that such methods increase visibility of the consumer over a
short amount of time and are cost-effective; whereas the detrimental impact is that some sort of
harmful affect travels at the pace of light. Due to the adverse news, it was observed that the main
functionality could be negatively affected and that sales and helpfulness on the market could be
reduced.
TASK 4
P7 Monthly cash budget for the pre-launch phase
Cash strategy is a tool for total cash receipts and payments over a given period of time.
This is the total cash balance of Michael's Café.

From the above cash budget, it can be stated clearly that the choice should be correct on
the basis that inflows and outlays are well liquidated. So they've got to grow their business.
M5 Justify an itemized monthly cash budget showing one off costs, opening cost and anticipated
income post and pre launch.
This is important for each and every corporate company to plan a monthly budget that covers all
expenses along with pre-and post-start expenses, so that any operation or task can be carried out
easily (Hale, 2018). By finalizing the expenditure for increasing operation, it allows to produce
successful results and benefits in an efficient way that is capable of drawing a significant amount
of consumers to them.

D4 Create a pre and post launch monthly itemised cash budget based on financial resources,
including key budget a budget categories and sub categories with contingency measures for
anticipated outcomes.

Pre cash budget
P8 Applicable legal form for the venture
Adoption of a proper legal structure is mandatory for every organisation to operate within
the business environment for combining its rules and regulation with the policies and
frameworks of the nation where it is going to work. There are various Type of registration and
legal applicability is which can be used by an organisation to make its identity as an legal entity.
Some of these are sole proprietorship company private company public company and
partnership. In the context of Michael Cafe it is serving high quality coffee drinks which are
available in various flavours so company can opt status of company as a legal structure because
it help Organisation in various ways (Satterwhite, 2018). Autumn company can be described as a
separate legal entity in the eyes of law which separated from its owner and have its own
liabilities and assets. This company have to register itself in a Companies Act where it can work
according to the rules and regulations formed by different Government and legal in the nation
where it is working. There are various benefits of registering as a company to an organisation
which are mentioned below:

Separate legal existence: registering as a company provide a benefit of separate legal
existence within the market where company is also treated as a artificial person who is dealing
with different customers in a particular business environment. This provide different opportunity
to the organisation where it can save itself from corruption and other methods where the owner
of the organisation try to do (Jiang and Tornikoski, 2019).
Liability of owner: founding members as well as other stakeholders within the company
will have no liability because they are separate from the organisation and they are not liable to
the organisation on their personal asset at the time of liquidation evaluation of the company.
Personal Assets and liability: registering as a company also enable organisation to
properly use its Assets and resources by its own function where it can easily work within the
market by reducing its liability and increasing in its assets for retaining in a longer period of
time.
Long run: it is also a profit of the organisation that It can stay for a long even the owner
passes. This is because company is working at larger level where it can easily operate for a long
period of time and it has a corporate legal existence from its owners and founders which make it
easier for the company to stay for a long period even after the owner death for leaving the
company.
CONCLUSION
It can be concluded from the above mentioned report that there are various factors which
have to be before launching a new venture within the market there must be clearly identification
of the strategy as well as porter's five forces model which will help the organisation in
identifying different factors there must also identification of tangible and intangible resources
which will help the organisation in gaining the advantage. It is also analysed that there must be
use of proper skills and abilities which will help in reduction of different kind of threats within
the organisation. Proper use of media channels as well as post and pre-launch programs will help
Organisation in promoting the business as well as launching the venture in easiest way by clearly
identification of the cash budget which is required to formulate.

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