Launching a New Business Venture: Assignment

Launching A New Venture

Table of Contents

INTRODUCTION
New venture or a business is established with a plan or expectation of an investor in
which they have to decide a specific nation where they can increase the profitability. In addition
to this, it is defined as small business which is started with a small amount of funds.
Furthermore, it is usually formed when the need of product or services of the organisation are
high in a specific market. After determination of need entrepreneur will identify the new market
area where they can introduce new venture. Present assignment is based on the New Moonlight
restaurant which is already established in UK and wants to move in the Russian country. This
report will discuss about the background of venture idea, competitor analysis and determination
of target market. Resources for starting the business, essential skills and abilities which are
required for starting a new venture will also include in this report. In addition to this, financial
requirements which are essential for starting the new venture, various promotional activities
along with a budget or legal structure will also covers in this assignment.
TASK 1
P1:
New Moonlight restaurant is a well-established business restaurant in UK market which
provides a wide variety of food and beverages to their customers. After getting huge success and
growth in UK, management of restaurant have decided to introduce new venture in the market of
Russia because the demand of fast food items in that country is very high. For making a strong
customer base within a small period of time Moscow is one of the largest city of Russia is
decided as the location for establish the new venture (Zaremba, 2017). The Speciality of
restaurant is that it provides a good range of fast food products which are liked in across the
world such as paella, French fries, Ful madames etc. to their customers through which they can
easily attracts a large number of visitors towards offerings of the restaurant. Moscow is a big city
in Russia which provides a large pool of customers to New Moonlight restaurant that ensures
them in gaining huge sustainability and growth within a limited time frame. After investing the
funds and conduct an appropriate market research in the Russian market, It has been identified
that a large number of citizens of nation wants good and hygienic quality in fast food products so
that their lifestyle can be maintained. Therefore, it can be said that market informations are in

favourable condition of New Moonlight restaurant through which their management can decide
to grab such kind of opportunities by expanding their venture into Moscow.
In order to successfully expansion of a business, owners have to allocate the resources
which are required by them for expansion. For this, managers of cited firm have decided to
expand their venture in a partnership with other players of food and beverages sector who are
already providing their services in the market of Moscow. With the help of this, the chances of
sustainability will be higher and they will better sustained in that market. For establishing the
new venture, Managers have to buy approx. 1500 square feet in Moscow city with a lease of 5
years so that business operations can be handled in smooth manner. Managers have estimated an
amount of 350000 to be invested for this purpose that can be collected through partners,
financial institutions, Bank loans etc.
Objectives: Managers of New Moonlight restaurant have formulated SMART objectives
through taking support of partners which are given as under: Specific: Grab the market-share of Moscow for achieving huge sustainability. Measurable: Achieve 60% market share through selling new products. Achievable: For achieving this management have decided to offer wide range of products
and services. Relevancy: Through it Market-Presence will be increase in the Russian Market.
 Time Bound: Managers have decided for achieving these objectives within 7 months of
starting enterprise.
Target market:
Sustainability and profitability of new venture is based on the availability of customers in
a specific market. For this, Managers of New Moonlight hotel have decided to conduct market
research so that future sales and revenue can be estimated in proper manner. They have
segmented the market of Moscow city in various parts such as demographic, psycho-graphic and
geographic (Zhu, 2017). Due to producing or selling fast food products, owners of firm have
targetted Geographic segmentation where a large number of customers can buy their products
i.e. Moscow.
Geographic: In it, population of city is sorted on the basis of areas where they are living.
Managers of New Moonlight hotel has targetted Moscow city of Russia which is determined as
the largest city of nation and having large number of customers for the organisation. With the

help of this, owner of new venture will easily gets sustainability and profitability in a shorter
period of time.
Demographic: Under this kind of segment population is divided on the basis of gender,
religion and characteristics of citizen. After conducting market research, It has been clearly
identified that most of the citizens of city likes fast food products so that they can maintained
their busy life schedule.
Psycho-graphic: In it, citizens of Russia are categorised on the basis of lifestyle.
Individuals of middle and higher income group mainly prefers to buy fast food products instead
of its cost or prices. So that targetted customers of firm are such income group.
Competitive analysis:
New Moonlight restaurant offers a large number of fast food products such as French
fries, Paella, Burgers etc. to its customers so that they can face a tough competition from their
various rivals such as Pepsico. Mcdonalds, Sato, Oko etc. who are already existing in the food
and beverages sector of Russia and can provide more difficulties to the New Moonlight
restaurant to sustain in the market for a longer period of time. For this, managers of restaurant
have to formulate effective plans and strategies so that they can compete with the rivals in more
effective manner.
P2
There are a large number of resources that are essentially required by a firm and they
should use it in an optimal manner so that new venture can be established in an effective manner
(Qin, 2017). These resources can be categorise in two parts such as tangible or intangible. New
Moonlight restaurant is a new venture which offers Patties, Burgers, Pizza, Paella, French fries
etc. to their customers. Types of such resources are given as follows:
Tangible resources- It includes those kind of resources that can be feed or seen by the
persons because these are present in real and provides contribution in effectively establishing of
new restaurant in the Moscow. There are several resources that are essential for introducing new
restaurant like real property and office building, Furniture Products, food items etc. Main
tangible resources are funds that are very essential for starting a new venture. It assists the
organisation in enhancing its strength and also provide guidance to firm in optimal utilisation of
resources. It can also categorise in two parts which are given as under:

Physical resources: It includes stock, equipments, tools and machinery etc. that have
physically presence and essentially required by the owners to operate business functions in
smooth manner. Such kind of resources also required a good space and have a value which can
provide help to the owner in optimal utilisation of resources.
Human resources: It includes staff members because without their efforts any firm can't
get sustain in the market. They also provide efforts for firm to make more successful in new
marketplaces. Physical resources of firm can't be utilised in proper manner without taking
support from the employees. So that, it can be said that managers of Restaurant have to consider
the human resources as most essential element while expanding. For this, Business owners of
New Moonlight restaurant can hire local employees with having skills and experienced to deal
with Russian customers so that good sustainability can be achieved within a short time period.
Intangible resources – It can be considered as an essential asset that is not present in real
but it can feel by the persons because it includes various factors such as quality in the products
that will be given to the customers for providing satisfaction to them. With the help of this,
owners of New Moon light restaurant can easily make relationship with their customers. It will
also provide benefit to firm through which they will be able in gaining competitive advantage in
the market (Petkova, 2016). These resources includes goodwill, patent, rights, quality etc. which
is also important for firm in sustaining in the marketplace for a longer time period.
TASK 2
P3
Owners of New Moonlight can make credible proposal through making partnership with
the players of food and beverages sector through which they will determine the actual target
which have to achieved by them. This proposal will be formulated in the guidance of specialised
& professional persons so that real mission or targets of firm can clearly defined to the workers
of restaurant. It also provides facilities to the staff members of New Moonlight restaurant in
understanding their roles and responsibilities so that maximum efforts can be received from
them in the achievement of organisational goals. Credible proposal of New Moonlight restaurant
is given as under:
Executive Summary New Moonlight restaurant is a well-established firm of UK which
have decided to expand its market share in Russia for enhancing

market presence and profitability. The decision is came out through
conducting market research of that market through which it has been
identified that there are a large number of customers who prefers to
buy fast food products due to their busy life schedule.
Company description It is a small or medium size firm of UK which offers a large range of
fast food products such as Paella, French fries, Burger, Patties etc. to
their customers. Owners of restaurant have decided to expand their
market share in Moscow city of Russia due to a high demand of their
products.
Market Analysis Environment of Market is very competitive in the nature that can
provide various challenges or troubles to the operations of New
Moonlight restaurant at the time of establishing new business in new
market. Presence of various factors like stability of government,
support from the management etc. can also influenced the operations
of organisation in positive or negative manner so that owners of firm
have to conduct a PESTLE or SWOT analysis for overcoming
influences of such factors. As these both analysis will prove
beneficial for their new venture through conducting PESTLE
analysis, entrepreneurs will be able in analysing different kind of
environmental factors such as political, legal, economical etc. that can
pose impact on their working or functioning of venture. Whereas,
with the help of SWOT they will be able in determining threat or
weaknesses that have to improve them for getting success and growth
in future period of time.
Financial projection
Owners have to arrange proper funds so that they can successfully
establishing the business in new market areas. Shortage of funds can
also fulfilled by raising funds from different sources like loan from
banks, financial institutions, partner's capital etc. Owners of
organisation have estimated the amount of 350000 for establishing the
new venture in Moscow. For raising funds, entrepreneurs of New

Moonlight Restaurant have to take support from investors and for this
they can offer them partnership or some part of share value of
venture. Whereas, for arranging funds from banks they have to
provide all informations related with the venture to bank authorities
so that they will provide funds for new venture.
Benchmarking Prediction of challenges of market environment encourages the
owners to set proper bench mark that requires to be achieved within
the given time-frame. It also provides motivation among the staff
members through which they will provide their maximum
contribution in achievement of goals. New Moonlight restaurant can
easily achieve good sustainability and growth in the market if the
goals and objectives of firm will be properly communicated to its
staff members. Entrepreneurs of New Moonlight restaurant have
framed an objective of acquiring 60% of total market share of Food
and beverage sector of Moscow. In order to achieving these
objectives they have framed several attractive promotional and
pricing strategies i.e. use of social media platforms, penetration
pricing strategies etc. which will be prove advantageous for them in
future in achieving desired objectives.
P4:
To launch a brand-new set up in the marketplace this is very important to formulate
effective strategies that will help the organisation to grow and in achieving sustainability in
market. For attaining growth and success in market, they should acquire some specific skills and
related data of new market where they will setup the new business. Required skills for the
entrepreneurs are given as follows:
Management Skills: The management ability are very important for any business
venture to commence the functions of business successfully in marketplace with effective
utilisation of resources. These management power are mostly required for managing the

workforce and for motivating them towards completion of task in given manner. This skill will
help the entrepreneur to assign the duties and will be able to define the task effectively in the
organisation. With the help of this skill new moon light restaurant will be able to accomplish the
desired objectives. These competencies can acquired by entrepreneurs through engaging
themselves in different administration programs and seminars that will lead to increase the
knowledge and working efficiency.
Decision making skill: It is a trait which is essential to develop or acquire to become a
successful entrepreneur as it assist in dealing with complexities arises due to fluctuations in
market trends. Taking right decision at the right time enable new venture to achieve competitive
advantage in new market. For example, taking decision of decreasing production of less
demanded products and increasing production of demanded products help in achieving huge
sales and revenue. Such skill can be acquired through engaging in various case studies in which
different complex problems are available to deal (Duggal, 2015).
Leadership skills: This skill is required to maintain the workforce in effective way as it
will lead the worker and will motivate them to work for accomplishing the desired goals of the
business and will increase the productivity level of the employees as well. The entrepreneur of
new moon light restaurant will require these skills to maintain the smooth functioning of the
business and to maintain good relations with the workforce unit. It helps in proper
communication channel within the organisation, positive attitude and clear vision for the desired
objective.
Risk-taking skills: The market situation is rapidly growing it is influencing a strong
rivalry for the organisation and it will include the risk in the business activity that can affect the
proceedings of the venture. Risk can lead the business in positive as well as in negative manner.
The entrepreneur of new moon light restaurant is required to possess these skills so that required
risk can be taken effectively that will result in improving the market share of hosted nation. This
skill can be acquired by dealing with complex situations after acquiring an appropriate
knowledge of market.

TASK 3
P5:
To communicate and aware the people of Russia about the new entrance of Fast food
company, the entrepreneurs of new Moonlight restaurant needs to use several promotional
platforms. Some of these platforms are mentioned underneath:
Social media platforms: In this, the businessperson of new Moonlight restaurant can
search for their targetted customers and target groups which can purchase the food product of the
firm. At present time, the people are more active on social media platform with a motive of
searching information about the company and its products and services. Using of these platforms
will prove beneficial as through it, Moonlight restaurant will be able in spreading awareness
regarding their offering in wide market areas in a small time period. This method not only helps
the New Moonlight Restaurant in increasing their customer base but also supports them in
making working structure as per the market trends which automatically leads their venture
towards growth and sustainability in market. Such social media platform includes Facebook,
Instagram, twitter etc. which can utilise by an entrepreneur in order to spread the awareness
about their new venture in Russia. Using these platforms, the venture can attract a large number
of customers towards the product provided by the company. Also these social media platforms
saves cost and time of the firm.
Mobile Billboards: It is also considered as an important tool through which the new
Moonlight restaurant can attract customers towards the fast food products provided by the
restaurant in Russia (Al Mamun, 2016). The entrepreneurs of new Moonlight restaurant can
develop the punch lines, logo, stickers etc. for getting the brand recognition in the eyes of
customers of Russian market. For e.g. punchline that can be used by Moonlight Restaurant
“Experience the quality of food” as it will prove beneficial for restaurant in making good brand
image in the mindset of customers. This will be advantageous for the restaurant as it will helps
them in attracting large number of customer towards their offerings.
Personal promotions: These tools are considered as the most reliable and suitable tool
through which the entrepreneur of the new Moonlight restaurant can attract the customers. In
this, the workers of the restaurant can visit the customers by using the pamphlets, brochures,

catalogues etc. for making them aware regarding the fast food products which are provided by
the firm in Russia. Through this, the firm can achieve the trust and loyalty of customers.
From the above promotional platforms it has been analysed that entrepreneurs of New
Moonlight restaurant should use social media platforms because this will prove beneficial for
them in covering more market areas in a shorter period of time. Along with it, they should set
effective pricing strategies such as market penetration in starting of their venture because it will
support them in attracting more number of customers towards their offering which will be
advantageous for their new venture in taking growth and success in new market area. With the
help of these promotional tools, Moonlight restaurant will easily enhance their brand loyalty
among the customers. As social media platforms and mobile billboards will be help them in
attracting the customers and personal promotions will assist them in retaining customers of
organisation for a long time period. When customers will be retained in the firm then it defines
that their satisfaction level is increasing which is beneficial for the firm in maintaining their
loyalty towards the brand.
P6:
An businessperson requires to have effective business strategies and plans before starting
up business. Through these plans, entrepreneur can affect their interest and purchasing pattern of
the audiences which are in favour of the company. So the entrepreneur of new Moonlight
restaurant needs to prepare effective promotional and marketing activities plan for increasing the
awareness regarding the food product which will be provided by the firm in Russian market.
Pre-launch: It is the time in which the firm is yet to be established in the market. In this
stage, the entrepreneur is focused on the interest and purchasing behaviour of the targeted
audiences. The entrepreneur of new Moonlight restaurant can advertise the product and services
provided to the Russian people on their website. Through this, the customers can read the
reviews of the past customers of firm which assist the firm in gaining trust and reliability of the
targetted customers.
Launch: It is the final step in which the owners or entrepreneur of new Moonlight
restaurant opens the business through opening ceremony. In the ceremony, the representatives
from the social media are invited by the management of firm in order to capture the every
moment of ceremony. In this ceremony, the management of the firm can also communicate with
the customers regarding their offerings and the benefits. Also, the message of the ceremony can

be telecast on Television, Public press, social media etc. through which people of Russia can
know about the brand.
Financial consideration to start a new venture:
There are various types of financial consideration which must be considered by the
entrepreneur of new Moonlight restaurant in order to successfully launch their new venture in
the Russia. These consideration are discussed below:
Minimise overhead: An entrepreneur of new Moonlight technology needs to reduce their
expenses from the beginning so that the firm can cut their unwanted expenses which occurs in
the company. For example, The firm can stop investing in decorating offices and can use this
extra cost in providing amenities.
Track and monitor spending: The entrepreneur needs to track and monitor the spending
of their business for minimising the wastage and for increasing the profit of the company. This
can happen by managing the record of transactions which are made in the firm.
Invest appropriately: An entrepreneur of new Moonlight restaurant needs to ensure that
the return on investment will be received in future and should make the decisions accordingly.
For example, the decision of acquiring land in Russia for establishing the business will enhances
the profit of the company.
Maintain cash reserves: An entrepreneur can stay dependent upon the credit and loans
but it also must have liquid assets. The entrepreneur needs to maintain their cash reserves in
order to take proper decisions.
TASK 4
P7:
Budget can be defined as an estimation of cash through which owners can decide for
acquiring the funds from different sources as per their needs and requirements of establishing
new venture in the market of Moscow. Therefore, it is very essential to formulate a proper cash
flow budget so that situation of shortage of funds can be handled proper manner (Bijker, 2012).
It also decreases the wastage of funds and prepare the organisation for gaining competitive
advantage in the marketplace. So that, it is very essential for the owners of New Moonlight
restaurant to prepare an effective cash flow budget before launching new venture and after 12-18
months which is given as below:

Cash flow Budget of The New Moonlight Restaurant for the Year of 2018
Interpretation- It has been analysed from the above budget that the sale of firm was
1500 in December month along with a closing balance of 19600 that shows company can
sustained in Russia for a longer period of time.

Interpretation- It has been observed from the above pre and post launch cash budgets
that organisation have managed balance between their cash inflows and outflows therefore, there
is a higher chance for the firm to getting competitive advantage in the marketplace.

P8:
In a market, several organisations are present in market along with different purposes,
nature and size etc. Therefore, it is very important for an entrepreneur to understand legal
structures in effective manner. Some of these ventures are given as below:
Sole trader: It is an easiest form of ownership that follows limited rules and regulations
which are formed by governmental authorities so as to operating business functions in smooth
manner. In it, owners are the one who have responsibility of operating business functions and
taking decisions due to which all the profits or losses are bears by them. For starting venture in
this kind of ownership is very easy because limited amount of funds are needed.
Company: It is also a legal structure of venture in which owners of business have no
liability to pay the debts or liabilities through selling its personal assets. It consists two kinds of
companies like private and public. In which, private firms are owned by private individuals
whose main aim is to earning profitability. Whereas, second one is known as public organisation
which is regulated by governmental authorities and its aim is to improving standard of living of
local residential without focusing on earning profitability.
Partnership firms: In it, two or more individuals are comes together into an agreement
so as to fulfilling their demands and needs. All the norms and conditions are mentioned in the
agreement which is known as contractual agreement.
In this report, Management of New Moonlight restaurant have decided to setup their
venture in partnership form in Moscow. Main reason behind choosing partnership is that, strong
position of firm will be maintained in easy manner because when partners will mutually supports
each others and provide contribution in form of funds and ideas. Then it is beneficial for the
entrepreneur to gain growth and success in a short time period.

CONCLUSION
It has been concluded from the above study that launching a new venture is not an easy
task as it requires lots of study and knowledge about the market situations. For this, an
entrepreneur must have an adequate skills and abilities in order to make an effective plans and
strategies for the growth and sustainability of business. It is very important for the entrepreneurs
who wants to establish their new venture have responsibility to analyse the market conditions
properly so that desired objectives such as market share or customer base can be achieved easily.
Owners have acquire all the skills and capabilities like management and communication skills so
that opportunities of market can easily grabbed. Cash flow budget is also an essential part for
operating the business function in smooth manner. It also requires to make an effective credible
proposal which contains information about the rivalry competition, market situation, financial
projection etc. Along with it, adoption of promotional platforms are very important as they
supports the organisation in covering wide market areas in a shorter period of time. This will
assist an entrepreneur in achieving strong existence for its new venture in new market.

REFERENCES
Books and Journals