Launching a New Business Venture Solved Assignment (Doc)

Launching a New
Venture

INTRODUCTION
There are numerous types of ventures which are contributing maximum to the GDP of
nation as well as livelihood of business owners. It only requires to have sufficient amount of
new and innovative ideas and skills that to be present in an individual which will make them a
successful entrepreneur. The generation of idea of starting a new venture came through
identifying the needs and requirements of market. This requires to conduct market research that
gave an idea to entrepreneur to launch a new venture in particular field where the demand of
products are more and supply is less. The present project report is based on a new venture named
as Dream Delicious which is engaged in providing wide range of food items and drinkable
products in the London market of UK. The project discusses the determination of specific target
market along with the proper evaluation of rivalry so as to achieve stable position in marketplace
for longer duration. It also describes the ability and promotional tools that are used to make new
venture more successful.
TASK 1
P1:
Dream Delicious is a restaurant which is decided to start in London market with multiple
number of food offerings. It offers wide range of popular dishes of different nations such as Thai,
Spanish, Chinese, Continental, Sea food etc. The London market is decided as primary location
of new restaurant due to having large number of tourists coming every year which indirectly
increases in the demand of products (Bijker and et. al., 2012).
Dream Delicious Restaurant is formed as partnership due to which following legal
structure of partnership. In order to establish Dream Delicious in an effective way, they acquired
a land around 1500 square feet near London Eye on lease of 5 years for continuing its business
operations without any interruptions. In terms of budget, the partners brings on their own as well
as raise funds from different sources which includes capital and bank loans which is around £
360000 to 375000.
Objectives:
 To offer wide range of dishes of different nations in London Market.
 To earn livelihood.
 To increase level of satisfaction of targeted people.
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 To bring their food items to large number of people visited at London Market in UK.
Mission:
The mission is to “ maximise the experience of visitors by providing wide range of dishes
of their home nation in UK”.
Target market –It is very important for a new venture to focus on achieving growth
within shorter period of time which can be possible through identify the needs and demands of
customers and put their maximum efforts in fulfilling them in an effective and efficient manner.
Due to having fluctuations in the needs and demands of customers it may affects the growth of
restaurant. So that it is essential to consider such modification on regularly basis hence, changes
in menu card as well in the result of attracting customers towards Dream Delicious restaurant.
The target market is divided in four types such as Geographic, Demographic, psycho-graphic and
behavioural (Burns, 2017).
Geographic: In this type of segment, entrepreneur has to decide the location where the
new business has been started. Under this type of part, entrepreneur has to preferred such
locations where large number of customers are easily available for their eatery shop. It is
important to make a suitable strategies which is made after measuring situations of locations
carefully. For example, London is the suitable location where any venture can be established
because there are large number of tourists which maximises the chances of build brand image
and achieving growth within shorter period of time.
Demographic- Under this part, it depends on religion, culture, gender, income, level etc.
which gave positive and negative impact on the business activities. So that, it is essentially
required to analyse such things and making strategies according to the demand of customers
which increases the number of customers. Youngsters and families are more preferably to visit at
eatery shop where they get delicious foods at any time in different nations. So that, policies
should also made for them.
Psycho-graphic- In this type of segment owner has to analyse the lifestyle and
personality of people and formulating strategies according them. For an instance, tourist of
higher income group show more willingness to visit a restaurant with a hope of getting multiple
nation's food products and services with best quality.
Behavioural- This type of part is based on behaviour, usage and decision making
pattern. Furthermore, customers preferred the food products which has taste and satisfying their
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taste. For example, youngsters and children shows more interest in offering varieties of food
products which are given by restaurant.
Competitive analysis
Launching a new venture is not a easy task as ti requires lots of resources including
human resources, funds etc. In addition with this, large number of rivals already existed in
similar market brings more challenges towards stability of new restaurants. As Dream Delicious
is engaged in food sector where large number of rivals are present in the market which provides
tough competitions with their competitive strategies and different offerings. To compete with
them in more effective and efficient manner, it required for entrepreneur of Dream Delicious to
make an effective decisions and suitable plans based on the competitive analysis. London is
primary location of UK where large amount of people are gathered due to having various tourist
destinations. Because of this, there are number of rivals such as The Led Bury, Liman Restaurant
etc. Therefore, to compete with them entrepreneur should come with a new and innovative idea
related with their offerings which can be different and far better than their rival's offerings
(Fernhaber and Li, 2013).
P2:
Resources are essentially required to have with entrepreneur before starting a new
venture in competitive market. It depends on the size of business for example large size business
required more resources whereas small-medium sized business requires small amount of
resources. Resources can be further classified as tangible and intangible form. Tangible resources
includes assets which are physically visible such as employees, funds, Plant and Machinery etc.
Whereas Intangible resources includes asset which is physically absent but play equal role in
growth and success of enterprise. It includes goodwill, brand image etc. Dream Delicious serve
wide range of dishes to the people of UK thus needed to have sufficient amount human capital,
funds, land and building etc. For example, serving different dishes required knowledgable and
experienced cook to produce in tasty manner. Therefore, it is essential to perform several
functions such as recruitment, selection, acquiring assets, chosen of suppliers etc. It can be
further described as under:
Tangible resources: It refers to an asset which are having physical existence such as
Plant and machinery, human resource, Land and Building, food products etc. Thus, entrepreneurs
of Dream Delicious should brings capital on their own and even can raise from different sources
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such as Banks, Venture capital etc. Arrangement of resources can assist them in buying sufficient
resources such as recruiting staff to execute different business activities. Among all, human
resource are considered as a valuable asset of company which provides maximum efforts and
contribution in assisting organisation to achieve growth and success. Therefore, it is important
for new restaurant to fill the requirements of workforce through recruiting people of such
location where they are deciding to start business. It makes easy for the employees to deal with
customers due to having proper understanding of their culture and language.
Intangible resources: It refers to an asset which is not physically existence but play
equally vital role in growth of new venture. It consists of customers relations, goodwill,
trademarks etc. It cannot be buy with the money as it can be acquired through performing
business functions in more ethical and reliable way. For an instance, producing quality products
with good behaviour of staff definitely increases the goodwill of restaurant. It requires to use
different tools which can protect new and innovative ideas of entrepreneurs from their rivals, It
includes copyrights, trademarks, patent etc. It restrict rivals to copy their ideas and offerings to
attract customers in the market (Hulbert, Gilmore and Carson, 2013). Therefore, it also play an
important role in assisting company to make their own identify among their rivals in competitive
market. Having different identity and unique dishes makes easy to grab an attention of maximum
number of customers across worldwide.
TASK 2
P3:
An individual can be known as a good enterpriser due to having their new and innovative
ideas which can successfully differentiate its venture than their rivals. It can be done in form of
using new ingredients in their dishes. For this, it is required to conduct market research through
which taste and preferences of targeted people in London market can be easily identified.
Further, suitable plans also required to implement by Dream Delicious in the following way:
Executive Summary Dream Delicious is a new food venture which
serves wide range of dishes of multiple
number of nations. Its dishes includes chicken
rice, tacos, Som Tam, Masala Dosa etc.
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Company description Dream Delicious is located at London with
wide range of dishes of different nations with
a clear aim of attracting large number of
people in London market. The main goal of
restaurant is to generate huge revenue as well
as capturing huge market share.
Market analysis Business environment comprises of internal
and external influencing factors which can
affect the existence of Dream Delicious in
London market. Such factors includes
employees morale, technological
advancement, political behaviour etc. For
this, an entrepreneur must decide to conduct
PESTLE and SWOT Analysis so that
effective decision can be made to deal with
such influencing factors.
Financial protection Resources decided the growth of business due
to which an entrepreneur should have
adequate amount of resources through raising
from different sources such as banks, venture
capital etc. It assist business in performing its
business functions in more appropriate
manner.
Benchmarking Before deciding to execute business activities,
it is required to set goal which must be
achieved with the support of owners and
employees. It also brings motivation among
employees to work hard and give their best
efforts in achieving desired goals and
objective within limited period of time.
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P4:
Separated from the assets, the development and accomplishment of new enterprise
additionally requires a compelling plans and techniques which can made just if an entrepreneur
have adequate aptitudes and information. Along these lines, it is fundamentally required for a
business people to gain following abilities so as to achieve business growth within shprter period
of time:
Management skills: It is compulsorily required for an entrepreneur to obtain managing
abilities in order to oversee and control business activities in more gainful way. For instance,
distribution of resources to specific area of function where they ensure in getting productive
results in near future (Karadag, 2015). Assigning jobs and duties to workers is likewise a piece
of administration abilities. Hence, with the assistance of such abilities, restaurant can
undoubtedly accomplish development inside shorter time-frame. For this, decision-making skills
are essential to have present in an entrepreneur with the help of which they can formulated an
effective plans and policies to run business more successfully.
Decision making skills: Business environment consists of internal as well as extrinsic
element which may hurt the strategies of an entrepreneur to launch a new restaurant. For this,
decision making abilities are required to be available in an entrepreneur with the assistance of
which they can make a viable arrangements and approaches so as to manage such influencing
elements and run business all the more easily.
Leadership skills: Combined efforts gives productive outcome due to which an
entrepreneur likewise requires to have initiative aptitudes by which they can undoubtedly
complete work from their representatives by giving them training programs on continuous basis.
A good leader can effectively guide the employees to perform in a right direction so that the
desired outcomes can be received within pre-determined time period.
Risk taking ability: Due to high rivalry in market, risk component dependably emerges
which influences the profitability and existence of any business. Consequently, an entrepreneur
required to be a risk taker with the assistance of which it is easy to manage risk components and
vulnerability in more compelling and proficient way.
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TASK 3
P5:
In order to communicate information about the food items to most extreme no. of clients
crosswise over around the world, entrepreneurs of Dream Delicious restaurant need to implement
diverse different advertising channels which are given as under:
Social media platform: It is a viable stage at which the business people can without
much of a stretch discover and situate to their focused on clients and communicating them about
the varieties of dishes offered in their restaurant with an objective to pull in and impact their
interest and buying conduct of customers in favourable way. Social media incorporates
Facebook, Instagram, Twitter and so forth through which an entrepreneurs can without much of a
stretch welcome individuals of various countries to visit at their restaurant at whatever point
come to London (Klotz and et. al., 2014).
Mobile Billboards: It is additionally an imperative tool which assist in grabbing an
attention of clients towards the items and services offered by eatery shops. For this, an
entrepreneur set up a turns of phrase, logo, stickers and so forth with the goal that they can
undoubtedly acknowledged in market.
Personal promotions: Such instruments took much time to influence but more
dependable and viable. The workers of Dream Delicious visited personally clients and welcome
them to visit at their restaurant through distributing them leaflets, handouts, indexes and so on. It
will have immense effect on the interest level and purchasing behaviour of clients thus turn into a
gainful apparatus.
P6:
It is basically required for Dream delicious to adopt a compelling promoting instruments
and systems for both pre-launch of restaurant. As because of high rivalry and huge no. of small-
sized eatery shops having good client base due to which it must required for an entrepreneur to
dispersed the news about the existence of new restaurant in market to make enthusiasm among
the clients.
Pre-launch promotion: It is initial stage before propelling an inaugural gathering of new
restaurant. At this stage, an entrepreneur ought to required to put greatest efforts in setting up
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their site because of which adequate data has been provided about inaugural to media and items
and services offered by them in addition with their advantages.
Launch: It is the stage at which an entrepreneur facilitating an inaugural get-together at
which members of all media representatives are gathered at one place with the end goal to
convey the data about restaurant in market. Broadcasting on TV, promotion on daily papers and
so on will help in snatch an enthusiasm of clients to visit at such restaurant immediately. Such
opening gathering is the method for connecting with clients through offering answers to the
media's inquiries (Morris, 2015).
TASK 4
P7:
Cash budget is necessary to prepare so as to direct the members regarding allocation of
funds ton different business functions. It is prepared on the basis of estimation which makes easy
for an entrepreneur to know about the availability of funds at present and needed in future. Thus,
it is more important to make cash flow statement for Dream Delicious Restaurant for the time of
launching and an after 12-18 months.
Particulars July August
Septembe
r October
Novembe
r
Decembe
r
Cash inflows
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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
Particulars July August
Septembe
r October
Novembe
r
Decembe
r
Cash inflows
Investment
Credit sales 1200 3200 1500 8200 1250 3210
Total inflows 1200 3200 1500 8200 1250 3210
Cash outflows
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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
P8:
An authoritative document of an association to work to make vital decision with specific
implications viewing utilization of assets and additionally resources in more accurate way within
an accounting period. A lot of numerous types of authoritative documents in which association is
working by following fundamental guidelines and directions. It is valuable for an association to
assemble more positive based according to the mentioned circumstances under a given lawful
structures (Read and et. al., 2016). As indicated by lawful structures an entrepreneur must having
a lot of alternative to maintain their business functions in different way. For example, sole trader,
partnership and companies. There are specific attributes of every one of these kinds of business
associations. Some of them are specified underneath:
Sole trader: According to this kinds of organization which is owned by a single person or
by normal customer. Under this, there isn't any legitimate qualification towards proprietors and
business associations. It is known as one of the basic organizations that are working to increase
future aims and targets in more effective way. It has been break down that proprietor of any
individual organization have boundless obligations towards its own organizations which is
having their whole control on activities. Extremely minimum level of investment is required to
begin such type of venture using less legal laws and regulations to implement their business
(Robb and Watson, 2012).
Company: It is characterized into private and public which are distinctive with one
another based on their nature of business operations. Business is independent legitimate
substance from their proprietor. There are numerous controls forced by governmental authorities
which are required to follow.
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Partnership firms: It is form of business owned by more than two individuals combined
together to run business commonly with a goal of procuring huge benefits. It is shaped by
framing association deed which specified all details regarding terms and conditions connected
with common understanding, for example, sharing benefit and misfortune proportion, capital
speculation and so forth. In this, the obligation of members are restricted up-to the capital invest
in organization firm.
In the present report, Dream Delicious restaurant begin their start-up in form of
partnership as the huge amount of sources are accessible for funding. Additionally, because of
having high rivalry in market there are substantial number of chances of misfortunes which is
equally burdened by the partners which decrease trouble on single individual. Likewise, unique
thoughts are give by accomplices helps in powerful basic leadership (Launching a new venture,
2018).
CONCLUSION
It has been concluded from the above project report that new venture can achieve growth
and success only if an entrepreneur have sufficient amount of market knowledge and decision
making abilities. There are different types of resources including tangible and intangible which
are equally important for an entrepreneur to acquire in order to make new venture more
successful in the market. Cash budget is also important to prepare which gives an idea to an
entrepreneur about the cost estimation that will be incurred in future period of time.
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REFERENCES
Books and Journals
Bijker, W. E. and et. al., 2012. The social construction of technological systems: New directions
in the sociology and history of technology. MIT press.
Burns, P., 2017. New venture creation: a framework for entrepreneurial start-ups. Palgrave.
Fernhaber, S. A. and Li, D., 2013. International exposure through network relationships:
Implications for new venture internationalization. Journal of Business Venturing. 28(2).
pp.316-334.
Hulbert, B., Gilmore, A. and Carson, D., 2013. Sources of opportunities used by growth minded
owner managers of small and medium sized enterprises. International Business Review.
22(1). pp.293-303.
Karadag, H., 2015. Financial management challenges in small and medium-sized enterprises: A
strategic management approach. Emerging Markets Journal. 5(1). p.26.
Klotz, A.C. and et. al., 2014. New venture teams: A review of the literature and roadmap for
future research. Journal of Management. 40(1). pp.226-255.
Morris, M. H., 2015. Entrepreneurship as experience. John Wiley & Sons, Ltd.
Read, S. and et. al., 2016. Effectual entrepreneurship. Taylor & Francis.
Robb, A. M. and Watson, J., 2012. Gender differences in firm performance: Evidence from new
ventures in the United States. Journal of Business Venturing. 27(5). pp.544-558.
Simon, M. and Shrader, R. C., 2012. Entrepreneurial actions and optimistic overconfidence: The
role of motivated reasoning in new product introductions. Journal of Business
Venturing. 27(3). pp.291-309.
Talebi, A.E.K., 2011. Decision framing and critical success factors of new product development.
African Journal of Business Management. 5(15). p.6233.
Yu, X., Chen, Y. and Nguyen, B., 2014. Knowledge management, learning behavior from failure
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Online
Launching a new venture 2018. [Online]. Available through:
<https://www.exed.hbs.edu/programs/lnv/Pages/default.aspx>.
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