This report discusses the process of launching a new venture, including identifying the target market and conducting a competitive analysis. It also explores the tangible and intangible resources required for the venture, the skills and abilities needed, different promotional activities and channels, and provides an itemized cash budget and forecasts.
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LAUNCHING A NEW VENTURE
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY..................................................................................................................................3 P1 Explain a new venture identifying target market and competitive analysis...........................3 P2 Determine tangible and intangible resources required for venture........................................4 P3 Proposal to launch a new venture...........................................................................................5 P4 Skills and abilities required to launch a new venture.............................................................6 P5 Different promotional activities and channels to support successful launching....................6 P6 Promotional activity plan for launch and pre launch..............................................................8 P7 Itemised cash budget and forecasts........................................................................................8 P8 Selected venture type............................................................................................................10 CONCLUSION..............................................................................................................................11 REFERENCES................................................................................................................................1
INTRODUCTION Launching of new ventureis a very detailed and comprehensive process where some innovative or new product is launched by a new business organisation (Kuratko and Hornsby, 2017). This report will highlight the new venture idea of Biscuiteers and also assess its feasibility. The target market of the new venture will be analysed and further the different types of tangible or intangible resources that are required will be analysed accordingly. The report will also evaluate the different skills and capabilities that are required by a business and further the promotional activities that the venture can adopt at the time of pre-launch and launch will be presented in the report. lastly the budgets at the time for launch and cash flow forecast will be prepared along with the appropriate venture that can be adopted by the new venture which will be discussed. MAIN BODY P1 Explain a new venture identifying target market and competitive analysis A new business is started Biscuiteers of producing biscuits for diabetes people. It is found that many people are suffering from diabetes. also, due to covid 19 these people are at high risk as well. hence, here a new venture will be established where variety of diabetic friendly biscuit will be manufactured. there will be different flavours and variants of biscuit produced. It will be for those people who are suffering from diabetes. therefore, market analysis done is as (Boso, Adeleye, and Gyensare, 2019) Threat of new entrants It refers to threat of new entrants that brings in innovation in product. So, as in retail industry the threat is high. Many new ventures can emerge and provide new products. Along with it, with lack of entry and exist barriers new entrant can operate in this sector. Bargaining power of suppliers It refers to bargaining power of suppliers. So, there are more supplier than power is less. company can easily switch from one to another. But if supplier are less then power is more. it is because it requires high cost to switch. Also, company has to depend on them. thus, in this bargaining power is less as there are more suppliers available. Bargaining power of buyers It refers to bargaining power of suppliers. So, there are more buyers than bargaining power is less. customer can easily switch from one to another. But if buyers are less then bargaining power is more. it is because it requires high cost to switch from one company to
another. So, here bargaining power is less as customer can easily switch from one company to other as there are variety of options available for them (Michelle, 2019). Buyers generally demands a lot their desire is always like to get the best offerings with the payment of minimum price as possible. Threat from substitute products or services If the new product or services come into the market and meet the similar needs in other alternative ways. However, in case of diabetic biscuits there are few alternative available. so, in this the threat of substitute power is less. Rivalry among the existing players In this it is related to existing competition among companies in the market. It is found that there are certain companies offering diabetic biscuits to customers. but they do not focus on diabetic biscuits. Therefore, it is found that power of competition among existing companies is moderate. so, from market analysis it is found that new companies can easily enter in market. also, there is moderate competition between existing companies. but with this new firm competition may arise. P2 Determine tangible and intangible resources required for venture In order to start a new venture, there are many resources which is required in it. The requirement of resources depends on type of business to be started. Basically, resources are of two types that is tangible and intangible. Therefore, it is necessary to find out these resources so that venture is successfully set up (Morgan, 2019). Besides that, on basis of those resources budget is estimated, and they are allocated. Likewise, in Biscuiteersas well there are several tangible and intangible resources required. It is as follows: Tangible- they are the resources which is seen and touched. it is known as physical items which is having a defined value. Also, they are shown in balance sheet. Land-It is required on which the buildings of Biscuiteers will be constructed. The land will be owned. Labour-they are staff who will be working for company in performing various operations. The labour will work on machines to manufacture products. Building– this will include the manufacturing plan, warehouse, office building, etc. of venture.
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Machinery– the business will require different types of machines that are used in manufacturing products, packaging, labelling, Inventory- It includes raw material that is required for producing products. HR- HR is needed to perform various business operations. in BiscuiteersHR is required for providing training, marketing and other tasks. IT resources– there is requirement of various IT systems such as computer, network, etc. to perform business operations. Intangible- It is resource which can not be seen or touched. they are goodwill, patent, Patent and copyright- The patent are business idea and concept which is followed in it. along with it, copyright is needed for procedure followed in producing products. Trademark- it will be needed to represent sign or symbol of company on product. Thus, these all are some tangible and intangible resources required for venture. It will help in starting business and achieving goals and objectives. P3 Proposal to launch a new venture A proposal is prepared to launch this venture in market. It gives insight on what activities are to be done and how it will be launched (Rippa, Ponsiglione, and Zollo, 2019). Thus, it is defined as below: Business overview– Biscuiteers is a company that will be engaged in manufacturing biscuits to diabetic people. Products offered- here, there be variety of flavours and variants of biscuit that will be offered. along with that, cookies will be offered as well. Benefit of product – the biscuits are made sugar free and is suitable for diabetic people. They can easily consume it as it does not contain sugar. It will help in managing sugar level and are diabetic friendly. Moreover, it is good for health as well. Target people-here, target people are those who are suffering from diabetes. Also, due to covid 19 there is high risk for diabetic people. Price range-It will be of low cost and easily affordable to people. The price will be $ .50. Marketing –there will be various ways through which marketing of biscuits will be done. But focus will be on promoting it via social media so that large number of people are attracted. Then, ads will be given in newspapers as well.
P4 Skills and abilities required to launch a new venture Launching a new product in the market is not an easy task as company has to perform several functions for this such as: hiring skilled workforce, taking better decision, marketing, sales and others. Some skills which are required in successful launching of cookies for diabetic patient include: Time management:Successful launching a new product is when it is delivered and launched in the market as per the set time and planning. As per the current trend and requirements company require launching new product in a timely manner. So, making customers feel valued by providing new product such as: diabetic cookies,Biscuiteerscompany can make it successful (Kirkley, 2016). Decision-making:Taking decision is other main skill which is required in having manager for launching a new product in the market. They need to decide and take decision regarding when to launch, target market, where to launch and others. Communication:It is one of the main skill which include: active listening, body language, oral communication and written communication in order to interact with different nature of customers and stakeholder. Before launching, manager require making plan and for that they need to communicate all strategies and plan with employees so, for making them understand communication is must. Ability of managing staff:After hiring skilled workforce by HR it is important for manger to manage them by motivating them, encouraging them and using effective ways for making them able to support in successful launching. Ability to raise money:After managing money at their own, manager require identifying appropriate sources from where they can get more money as they require investing in resources, technologies, purchasing of raw materials and others (Burns, 2017). So, having ability to select better ways of raising money is other effective skill make manager able in successful launch of diabetic cookies. P5 Different promotional activities and channels to support successful launching After planning, it is important to select promotional channels from whichBiscuiteerscan promote their new product in the market and make people aware about features of new products.
Selection of better promotional channels allow company in attracting target market to the great extent. There are different types of promotional activities and channels as well such as: Personal selling:It is a traditional way in which marketer meet customers directly or personally and make them aware about features of new product. For making, it successful communication, knowledge of product in details, improved relation with customers are required. Advertising:It is also a traditional but the most used way of promotion in which Biscuiteerscan advertise in newspaper, television, magazine and others. It all depends on up to their financial stability. Nowadays, companies are advertising their products by uploading images on social media platforms (Paesbrugghe and et.al., 2018). Publicity:It can be done by creating media, celebrities, broadcasting media and word of mouth by people or existing customers. Online marketing:It is trending type of promotional activity in which companies require making use of technologies, mobile phone and digital tools for uploading images. In this type companies do not require meeting customers directly as they can communicate with them online on social media platforms, websites and others. Here are some channels via whichBiscuiteerscompany can promote its new diabetic cookies such as: Social media:There are several platforms are available such as: p interest, Instagram, Facebook and others which can be used by this company. By choosing one or more than 1 platform company can make a page and upload pictures along with features of diabetic cookies. Newspaper and radio:By advertising using celebrities in newspaper and television, it can make all viewers aware about reasons of buying their new product and successful launching. SEO:It is the best way of launching new product and getting hot customers. In this type, people search what they want and if company has same features of products ad services then customers are more likely to set up consultation (White, 2018). So, from the above discussed all channels and types it is analysed that Biscuiteers will select personal selling and direct marketing because initially company require meeting customers directly. As it is a new product so, for making them aware direct selling will be the best and along with it they can make use of social media platforms as there is no requirement of heavy investment.
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ParticularAmount (in ÂŁ) Technological instruments200 Employeesandexpert personnel 300 Promotions500 Research and development250 Miscellaneous350 TotalÂŁ 1600 The cash asset budget helps in ascertaining the cash that will be required to buy the pre- launch assets that can be further developed in the following manner for Biscuiteers: ParticularAmount (in ÂŁ) Stock/ Inventory600 Cash1450 Equipment2000 Premises/ Store1500 Miscellaneous Assets450 TotalÂŁ 6000 The cash flow forecast predicts the overall income and expenses that is predicted by the company to be earned in the upcoming time period (Kasahun, 2020). The cash flow forecast for the next 18 months can be prepared in following manner: (Amount in ÂŁ) ParticularQuarter 1Quarter 2Quarter 3Quarter 4Quarter 5Quarter 6 Opening b/ f350005660083650116850153850176000 Cash Income Cash170002000025000280001500060000 Asset Sale2000000070000 B/R160001850019000200002050021000 Total inflow8800095100127650164850196350257000 Cash Expenses Direct Material200021002200230020003000 Direct Labour190020001800160018001600
Manufacturing o/ h300031502800300029502500 Selling & distribution o/h450042004000410036003900 Assets brought in200000001000090000 Total outflow3140011450108001100020350101000 Net cash flow5660083650116850153850176000156000 Therefore, the cash flow forecast indicates that the overall cash revenue generation of cash indicates that the net profitability of the Biscuiteers is expected to be very high. P8 Selected venture type There are a variety of legal forms that can be used in order to formulate a suitable venture type so that the business can function profitably and the overall profits that are earned by the venture are higher. The different ventures can be analysed in following manner: Sole Proprietorship: Under this type of venture, there is a single owner who is responsible for all the income and losses that might be earned in the business and also indulges in all the decision making. The sole proprietorship business type is very easy to implement and helps in the retention of maximum profits in the business itself (Lewis and Kaleem, 2019.). The major strengths of this type is that it can be implemented in a very simplified manner and additionally the retained income is also very high. Since the business is operated by a single person mainly, the limitations of this type is that the decision- making might not be done comprehensively. Additionally, the dependency on a single individual is also very high leading to increased risk exposure. Company: The Company form of venture is the one where there are two or more directors of the company that indulge in all the decision making on behalf of company which is treated as a separate legal identity (McMeeking, Baskerville and Sim, 2017). The major strength of this business is that the overall decision making is more comprehensive and the overall liability also gets reduced of individual directors. The limitation of this type of venture however is that the formation of a company is a very complex task which requires too much time and hence the overall delay in the functioning of the company gets expanded. Limited Liability Partnership: The limited liability partnership is the one where the liability of the partners is limited to a certain extent only and they are not liable for all the business decisions. The major advantage of this business type is that the risk gets minimised as the overall
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liability of the partners gets minimised and limited. The overall benefits in taxation etc. are also available to an LLP but the major drawback is that this is a very costly form of venture (Kwon and Lee, 2017). It is not easy to set up a LLP and the amount of regulations that are imposed on this type of the ventures is also very high. The overall benefits of this type of venture can be utilised very well if the overall business activities are implemented at a wider scale. The selected venture type which will be most suitable for the business currently i.e. for the Biscuiteers is the sole proprietorship where the overall profit generation would be more. The shingle owner would reduce the overall expenditures of the company and the maximum amount of profits would be retained in the business itself (Dungan, 2017). This will help in investing the maximum amount back in the business itself. Additionally, the sole proprietor also has the option to convert into any other form of venture so that profitable situation can be created. CONCLUSION The research conducted in the report above helps in concluding that the overall proposed venture of Biscuiteers is a very successful idea. The different resources that are required by the business was evaluated and a proposal was also developed accordingly. The variety of skills such as effective decision- making etc. was identified in the report and a promotional plan detailing the strategies was prepared. The report further prepared a financial projection statement for the venture for a period of 18 months and lastly sole proprietorship was suggested as the appropriate venture type.
Paesbrugghe, B. and et.al., 2018. Personal selling and the purchasing function: where do we go from here?.Journal of Personal Selling & Sales Management.38(1). pp.123-143. Rippa, P., Ponsiglione, C. and Zollo, G., 2019. Do new ventures explore, exploit or both? A case-basedanalysisofsixinnovativeItalianstart-ups.InternationalJournalof Entrepreneurial Behavior & Research. White,C.L.,2018.CommunicationChannel.TheInternationalEncyclopediaofStrategic Communication. pp.1-8. 2