The Role of Entrepreneurs in Firm-Level Innovation

This assignment discusses the importance of developing innovative ideas to make place into highly competitive working environments. Entrepreneurs need various resources to launch new goods and services, which can be achieved through promotional strategies like social media, internet, blogging, Facebook likings, Twitter, mobile billboards, and more. The document references several books and journals on entrepreneurship, including 'New Venture Creation' by P. Burns and 'The Social Construction of Technological Systems' by W.E. Bijker et al.

LAUNCHING
NEW
VENTURE

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Identification of the target market and competitive analysis..................................................1
P2 Require tangible and intangible assets to start a new venture................................................3
TASK 2............................................................................................................................................4
P3 Formulate a business plan to launching new venture.............................................................4
P4 Skills and capabilities required to launch a new venture.......................................................5
TASK 3............................................................................................................................................6
P5 Different promotional activities and channels for launching new venture.............................6
P6 Develop an appropriate promotional activities plan for both launch and pre-launch............7
TASK 4............................................................................................................................................8
P7 Monthly cash budget for the pre-launch phase.......................................................................8
P8 An appropriate and suitable business legal form for the David's bakery.............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In present market envelopment, new venture has lots of opportunities to grow very fast
and get profitability in short term. In United Kingdom, government has develop policies and rule
related to promote entrepreneurial activities because they know through this they get higher GPD
growth rate as well as increase employment possibility for citizen. Thus help to rise per person
income and living standard. In order to start new business, entrepreneurs are make preparation
related to idea generation, screening, alternative, promotional strategies, capabilities, financial
resources, marketing plan and many more (Baron and Tang, 2011). In this assignment select
David's bakery. Its famous for their pita bread which are made by 100% wheat. Today, David's
bakery is known for their high quality product and it taste their some product are wraps, square,
lavash, pizza dough, tortillas etc. In this report covers target market and segmentation for new
venture with its competitive analysis. It also includes intangible as well as tangible resources and
entrepreneur skills to develop new enterprise plan. Report covers several promotional strategies
with legal structures and all cash flows.
TASK 1
P1 Identification of the target market and competitive analysis
Bakery product estimated market size is around £10, 000 (U.K. organic market report year
2016). The organic food market is continuous increase after year 2000 instead of shown decline
in year 2009 recessionary period. The organic market is main sector is fresh producing and dairy
products. In both categories it’s capture 53% share in overall market. There is tremendous
opportunity in organic food sectors.
David's bakery:- Its provide pita bread which are made by 100% wheat and some others
product are wraps, square, pizza dough, tortillas, milk products, cakes etc.It’s high quality
products makes this small venture different from others (Baron and Tang, 2011).
TheTarget Market:- The market forDavid's bakeryproducts covers a large area of diverse and
different age groups. Although its located at main area London in UK.it is an area where people
travel to eat and hangout one that is also frequented by tourists and students. SoThe customer
base will come from 3 major segments:-
 Local population –Local population of the area this is the main location of London for
shopping, food and entertainment and frequently visited by local customers.
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 Colleges and Universities - this area is the nearby of the several top universities and the
college students are the focused target of the firm (Simon and Shrader, 2012).
 Tourism –this place is highly occupied with the hotels and entertainment facilities and
highly visited by the tourist which gives the opportunity to target diverse of people of
different nation.
 The food concept and product image of David's bakerywill attract 3 different customer
profiles:-
 The students:- changes in lifestyle and health problems and harmful factors of junk food
concern the students to go organic and stay healthy and they change their food habits and
concern about their mental and physical this is consider a favorable factor for the David's
bakery
 The health conscious person of any age or sex - this includes the person which is to
restricted or prescribed diet due to their profession, mindset, social group, health issues or
too much conscious about to healthy diet.
 Higher and Richer class of the society:-people of higher class are too much conscious
about health due to various purpose- environment friendly, better taste, no pesticides, no
side effect, high quality, better for animal welfare, health benefits.
The Competitive Analysis:- There are over too many local bakeries, restaurants and super
market chain at U.K. that sell food at similar prices and lower price. Although at the present an
obvious and big challenge in terms of market share, generate enough margin to operate business
activities.It’s also shows the presence of a large and strong potential of growing in future due to
change in customer attitude (Robb and Watson, 2012). A new venture has made their successful
entry based on an innovative and creative concept or novelty. David's bakery will offer an
innovative product in a familiar style at a competitive price. David's bakeryaggressive products
strategy and plans of take-out and delivery will also give us an advantage to create a good market
share before the competition can adjust or similar concepts appear.
Competitor's Profile :- Competing with David's bakery for the target market are these
categories of organic food providers:- Independent table service restaurants of similar menu and
price structure. Super market Chain like; ALDI, Tesco, Asda, Morrisons, Iceland, ocado, co-op,
Mark & Spencer provide some similar products and strong competitor due to their large
resources and managerial skills. In UK 69% organic sales comes for supermarkets. Commercial
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foodservice companies serving students directly. Other independent retailers Morris, 2015 (Read
and et. al., 2016).
SO David's bakery target market is highly influenced by the super market chain due to
their innovative and cost effective strategy so the David's bakery owner has to design and
effective competitive strategy of marketing to aware people about their offerings.
P2 Require tangible and intangible assets to start a new venture
There are many resources required to start operation of business in smoothly manner.
Resources are not only required to start a business but also present and future activities respect to
operations. David’s Bakery is provide a wide variety of products like:- decorative cake in
numbers of flavor, shakes, beverages, milk products, sandwiches, chocolates,
Tangible assets:- It’s involves moveable and immovable assets which can be touch and
feel and physical assistance. A new venture when starts its business its wants numbers of assets
which depend upon the particular business requirement and financial capacity of the firm
(Caselli and Negri, 2018). These are the following assets which are the start for the new venture
David’s Bakery:-Place, employees, food items, bakery’s infrastructure (furniture), vehicle etc.
For example Premises/equipment where the business will be situated, building to be used and
services that are needed, steps taken to meet health and hygiene laws, equipment and bakery’s
infrastructure.
Intangible resources:- It’s involves the kind of resources which have not any physical
existence but play a pivotal role in success of the any business. This includes following assets
which are trademark, goodwill, copyright, culture of the company, company brand value,
recognition, customer relation etc. This can be help a firm to make a unique identity from their
rivals and give competitive advantage to the firm.
For the firm like David's bakery is to build good customer relation and get their trust and
make them loyal for the company offering and the physical infrastructure and quality of the
products and services are the most valuable tangible and intangible assets to retain the customers
for a long time and compete with their competitors.
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TASK 2
P3 Formulate a business plan to launching new venture
A business plan which can well define the business vision, mission, objective, SWOT and
PESTEL analysis, present and future operation plans, marketing strategy, financial needs,
employee requirement etc. (Burns, 2017). If the business plan is enough effective than it’s
increase the chance of successful implementation of the business before preparing a B-Plan a
firm conducts a feasibility analysis so its can be a measurement to analyze the marketing,
technical, financial, operational, economic feasibility of the business after this an entrepreneur
design and formulate the business plan.
Business Plan of David's bakery:-
Executive Summary David's bakery is a entrepreneur firm which will deal in wide variety
of organic products like are wraps, square, pizza dough, tortillas,
milk products, cakes etc.
Company description Its an Entrepreneurial venture with having an objective of providing
an innovative, healthy and unique organic products.Company deal in
to deliver high quality of new organic and customize product which is
healthy and environment friendly.
Market Analysis For this company conducts a depth SWOT AND PESTAL analysis
through primary and secondary data basis and current market trends
to design and formulate marketing strategies of product, pricing,
distribution and promotional activities for their target market segment
(Bijker and et. al., 2012).
Financial analysis At this step David's bakery analysis the fund needed to start and
running business activities how can be fund raise so company can
smoothly operate it’s business activities.
Technical analysis In this step a firm can analysis the technically feasibility of the firm
offering and which method its cost effective and deliver qulity of
product.
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Its also include the business registration place, products and services characteristics,
industry and business model analysis, intellectual property rights, managerial and personal
requirement etc. For the firm owner David Bakery has to analysis all the factors while
formulating Business plan so it can be clear how to manage the business activities and overcome
through the challenges through making various strategy to compete with the competitors.
An impressive proposal for David Bakery which consist of effective plan or strategy
which needs to followed by an organization is detailed as follows-
David Bakery
Company Overview-
“Producing organic products such as; pizza dough, wraps, goods related with milk
and so on”
Mission statement-
Short term- Fulfils the needs of desired consumers.
Long term- To establish the goodwill of an association at marketplace by acquiring
consumer loyalty.
Company objectives for coming three years are-
 Investing almost 30% of profit in an organization.
 Enhancing succession plan for company in order to ensure long term growth.
 Forecasting to maximize the sales volume by 20% in coming time frame.
According to above diagrammatic representation it has been assessed that major
motive of an organization is to maximize their consumers by taking correct initiatives.
5
Excellent (maximum consumers)
Very good (adequate)
Average (minimum)
0 1 2 3 4 5 6 7 8 9 10
80
15
5
Column B
X Axis Title

Thus, this diagram is representing company goals and objectives in a clear sense.
Budget-
 Initial investment is about 15000 Euros in which 40% is equity, another 30% is
profit earned by company as per shareholder consent and rest 30% is invested are
debentures.
 Estimating to gain almost 25000 euros by conducting various promotional activities
henceforth.
Marketing-
Company is going to use modern methods of advertisement such as; social media,
newspapers, online marketing as well as enforce shareholders to use personal contact also.
Basically, firm is focussing on long term benefits by grabbing the market opportunities
which are identified at marketplace.
[Board of Directors]
[Strategy designer]
[Marketing team]
P4 Skills and capabilities required to launch a new venture
In order to start new business venture entrepreneurs have some skills as well as
capabilities which help them to convert all idea into reality. Owner of the company has some
better quality knowledge which supporting to achieve aim and mission in given time frame.
Therefore, David's bakery is a owned by David Ashtivkar that have number of quality which are
support to open new enterprise related to bakery product. He is produce 100% whole wheat
bread in order to provide healthy food to their clients. There are some skills as well as
capabilities are detail as follows:
Risk taker: David is a highly risk taker entrepreneur, they manufacturing various kind of
product with innovative ideas and launch their goods in very different manner. Before this,
David has identify clients issues related to food commodities and make idea to develop new
product effectively (Bijker and et. al., 2012). Through this, support accomplishment of
predetermine target segment in order to get best possible outcome in significant ways.
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Leadership skills: It is a most important traits of entrepreneur, through this they are able
to influence staff members behaviour, attitude, perception, motivation factors and many others.
By this, all employees are available to achieve their common goals and objectives in limited
period of time. Thus help to operate whole enterprise work in an effective manner in long run.
They are stimulates worker appropriately resulted productivity as well as performance should be
increase.
Presentation of proposal: David have good communicator and interpersonal skills
through this they are able to present their product in an effective ways in front of clients so that
attract large number of consumers toward goods and services in long period of time. Thus help to
individual to learn about anything related to goods quality and features (Burns, 2017). So that,
David's bakery has display their action of plan, ideas, and views in order to achieve competitive
benefits as compare to competitors at market place.
Optimistic and visionary: Owner of the company has required to be optimistic and
confident people for their vision to that they are open new venture in order to compete their goals
and objectives effectively. They must be confident about their action of plan as well as vision
and work accordingly. It is very necessary to entrepreneur adopt change easily so that able to
produce high quality goods and services in long period of time.
TASK 3
P5 Different promotional activities and channels for launching new venture
In present market environment, there are several mode of promotions and advertisement
of product and services. In order to launch a new product and services, management of the
company has develop plan by using gorilla marketing because it should be implemented at low
cost and their effect are positive in their nature. In addition to this, organisation are also work on
marketing mix elements in order to formulating action of plan. Here are explain some
promotional tool for new launching venture are detail as follows:
Use of social media to promote business: Social media marketing is also save time and
resources of firm. Some important social networking site is Email, LinkedIn, Twitter, Facebook,
Websites, YouTube, Instagram and many others. David's bakery has promoting their product
through these mode it help to reach large number of clients resulted gain higher profitability as
well as sustainability in long time period effectively (Caselli and Negri, 2018).
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Articles and Blogging: Internet article as well as blogging has create positive impact on
organisation as well as customer's mind. Through this, firm are share some information with
attractive story so that readers has read its make feel attractions toward David's bakery goods.
People those spend their time on internet more are came under the age of 12 to 50 so that
according to target segmentation they are develop information content and approach them in
appropriate manner.
Mobile Billboards: It is also another one of the important method of promotion. Through
mobile billboards, David's bakery are capable to increase their reachability to each one niche
location so that they are able to expend their market into different area. It covers information in
short form like tag line, logo, image and many more. That help to get high profitability and
create brand awareness at market place.
Personal promotions: By develop strong public relations, firm are able to achieve higher
customer's satisfaction as well as sustainability in long period. It is a very help full method for
small and medium firm because they are personally know their clients and make healthy
relationship with them in order to push them for repurchase existing goods and services
(Fernhaber, 2013). There are several method to interact with social people like email, meeting,
group discussion, social media conversations and many more.
Hence, it can be identify several promotion tool to promote their product and services in
long period of time appropriately thus provide help to increase reachability as well as create
awareness about goods into market place. It best method of promoting commodities is social
media site and guerilla marketing strategies, both are beneficial for achieving predetermine goals
in given time frame.
P6 Develop an appropriate promotional activities plan for both launch and pre-launch
Both product launching a well as pre launching promotional activities are very important
for new venture in order to compete competitors effectively at market place. Management has
develop plan for this program as how it will be go on and what kind of key factor should be
consider by organisation so that get attraction of large number of clients effectively. Both
promotional strategies are explain as follows:
Pre-launch Promotions: In this Process, David's bakery prepare their own website and
several social networking pages in order to provide information related to pre launching product.
Thus help to create awareness about good and increase reachability at low cost (Kariv, 2013).
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There are several other method of promoting goods and services like billboards, mobile
advertisement, hoarding, add on point of purchase materiel etc. David's bakery has make tag line
like ' Healthy food with Taste' and attracting customers those are healthy conscious.
Launch promotion: At this stage, product are already available into market place.
Company may focus on their brand recall activities so that old as well as new customers are
come gain for buying something. Feedback call is a most appropriate are low cost strategy to
new and small venture it help to identify clients thinking about goods and make improvement
according to them, then offer that new product to that consumers to get customer's satisfaction.
Some other method of promotions is YouTube video, blogging, Facebook page and many others.
TASK 4
P7 Monthly cash budget for the pre-launch phase
Here are explain appropriate cash budget in order to launch new business venture and also cover
pre- launch cash budgets are detail as below:
Cash budget of David Bakery
Year 2015 Jan Feb Mar April May
Food Sales amount 42,141 42,679 43,975 43,630 44,345
Beverage Sales 19,741 12,954 12,468 13,996 14,985
GROSS SALES (Total) 61,882 55,633 56,443 57,626 58,330
COGS
Food 14,521 14,864 14,874 14,468 14,947
Beverage 6,678 3,469 3,789 3,468 3,580
GRAND TOTAL 21,199 18,333 18,663 17,936 18,527
GP 40,683 37,300 37780 39,690 76,857
General and
Administrative
Workers Salaries 15,546 13,864 13,853 14,075 14,863
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Management Salaries 3,300 3,300 3,300 3,300 3,300
Employer
Taxes/Benefits (15%
Wages) 2,827 2,575 2,573 2,606 2,724
Employees
Compensation (6%
Wages) 1,130 1,029 1,029 1,042 1,090
Advertisement 900 900 900 900
900
Bookkeeping 160 160 160 160 160
Credit Card Charges
(1%) 617 540 570 550 577
Insurance 150 150 150 150 150
Legal and Professional
Fees 200 200 200 200 200
Misc. Other 280 280 280 280 280
Office Supplies 165 165 165 165 165
Rent 3,100 3,100 3,100 3,100 3,100
Repair and
Maintenance 350 350 350 350 350
Small Equipment 200 200 200 200 200
Telephone [phone]
Garbage 300 300 300 300 300
Utilities 1,100 1,100 1,100 1,100 1,100
Total Gen. and Admin.
(Fixed) 27,648 25,788 25,537 26,022 27,856
NET PROFIT OR LOSS 10,996 10,089 10,443 10,901 11,583
SBA Loan 3,592 3,592 3,592 3,592 3,592
Cash Flow After
Financing 7,782 6,892 6,932 7,973 8,974
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Draw 4,100 4,100 4,100 4,100 4,100
Net Cash Flow 3,892 2,782 2,992 3,892 4,963
Accumulated Cash
Flow 5,892 8,982 12,082 16,074
Average Daily Sales /
22 days 2,804 2,591 2,515 2,542 2,646
Cash budget after first 12-18 months
June July Aug Sept Oct Nov Dec
YTD
2013
44,355 44,702 45,440 45,305 46,931 46,295 47,958 5,39,182
15,974 15,947 19,891 16,251 17,452 17,905 17,845 1,98,913
59,883 60,865 61,951 61,576 63,433 63,890 64,970 7,24,065
-
14,697 14,737 14,939 14,927 15,603 15,977 15,891 1,07,215
3,892 3,872 4,135 4,963 4,369 4,892 4,883 48,936
18,592 18,609 19,025 19,020 19,626 19,599 20,013 2,36,891
-
41,395 41,426 42,966 42,936 44,927 43,992 44,480 4,98,975
- - - - - - - -
14,992 15,036 15,408 15,394 15,926 15,893 16,243 1,91,796
3,300 3,300 3,300 3,300 3,300 3,300 3,300 41,980
2,295 2,202 2,207 2,285 2,399 2,335 2,387 26,988
1,173 1,160 1,193 1,158 1,193 1,189 1,159 13,689
900 900 900 900 900 900 900 9,690
150 150 150 150 150 150 150 1,830
589 651 656 646 697 634 650 7,689
260 260 260 260 260 260 260 3,300
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150 150 150 150 150 150 150 1,300
250 250 250 250 250 250 250 3,500
165 165 165 165 165 165 165 2,400
3,240 3,240 3,240 3,240 3,240 3,240 3,240 38,600
350 350 350 350 350 350 350 3,700
250 250 250 250 250 250 250 2,700
100 100 100 100 100 100 100 1,900
210 210 210 210 210 210 210 2,500
1,300 1,300 1,300 1,300 1,300 1,300 1,300 14,900
29,536 29,831 29,824 29,964 30,953 30,944 30,083 3,39,974
-
12,893 12,834 12,883 12,792 13,324 13,932 14,192 1,74,061
3,820 3,939 3,929 3,084 3,892 3,973 3,593 42,244
8,822 8,903 9,340 9,346 10,349 10,234 10,233 1,72,397
4,500 4,500 4,500 4,500 4,500 4,500 4,500 48,700
4,640 4,843 5,820 5,836 6,999 7,083 6,829 57,977
20,103 25,046 30,295 35,932 41,021 47,944 54,987
2,483 2,294 2,201 2,379 2,486 2,820 2,293
P8 An appropriate and suitable business legal form for the David's bakery
There are many forms available for the incorporation of the business its depend upon the
business vision and mission which form is fulfill the best requirement of the firm to meet its
objective. The entrepreneur has three option to start a business and these are:-
Sole proprietorship:- In this kind form of business a single business can start the firm
with less formalities and less amount of the firm this person consider as the owner of the
business. The owner has to liable to bear all the losses of the firm and benefited by the profit earn
by the firm to its operation activities.
Partnership Firms:- It’s an another form to start a business due to limitation of the sole
proprietorship. In this form business can be start through mutual agreement between two or more
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partners (Baron and Tang, 2011). In this all partners are liable to losses incurred and profit
earned by the firm as per their partnership deed. There are various kind of partnership form
respect to the interest of the partners.
Company:- An entrepreneur can also choose this form to start its business. In this
company is separate legal entity which existence different from its owner. Company can be
incorporate in two forms public and private. In this a large number of documentation required
which is complicated and expensive.
For the entrepreneurship firm David's bakery is better to choose partnership form of its
business activities which can be better fulfill the requirement of the firm in both terms financial
needs and managerial skills.
CONCLUSION
From the above report, it has been concluded that launching a new venture is a very
crucial role in the economy of United Kingdom. It is very important to develop innovative ideas
in order to make place into highly competitive working environment. Entrepreneur wants various
kind of resources to launch a new goods and services whether it is tangible or intangible in their
nature. There are several promotional strategies or mode like social media, internet, blogging,
Facebook likings, twitter, mobile billboards and many others. Through this activities, firm are
able to increase reachability and get large number of clients toward their commodities as well as
services. Thus help to achieve goals and objectives in a appropriate manner in limited period of
time.
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REFERENCES
Books and Journals
Baron, R. A. and Tang, J., 2011. The role of entrepreneurs in firm-level innovation: Joint effects
of positive affect, creativity, and environmental dynamism. Journal of Business
Venturing. 26(1). pp.49-60.
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.
Caselli, S. and Negri, G., 2018. Private equity and venture capital in Europe: markets,
techniques, and deals. Academic Press.
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.
Hmieleski, K. M., Cole, M. S. and Baron, R.A., 2012. Shared authentic leadership and new
venture performance. Journal of Management. 38(5). pp.1476-1499.
Kariv, D., 2013. Female entrepreneurship and the new venture creation: An international
overview. Routledge.
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.
Kuratko, D. F. and Hornsby, J. S., 2017. New Venture Management: The Entrepreneur's
Roadmap. Taylor & Francis.
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.
Online
Launching a new venture 2018. [Online]. Available through:
<https://www.exed.hbs.edu/programs/lnv/Pages/default.aspx>.
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