Planning a New Business Venture: Comprehensive Analysis and Strategy

This report outlines the critical steps involved in planning a new business venture, focusing on Sellotape as a case study. It begins by examining different types of business organizations, their associated benefits, limitations, and risks. It further explores the sources of finance available to each type of business and the legal considerations necessary for launching a new venture. The report then delves into market analysis, including assessing market conditions and identifying gaps for potential products. It defines the vision, mission, aims, and objectives of the Sellotape business, and analyzes the business structure and systems required to achieve these objectives. Furthermore, the report examines the product's target markets, interprets external factors and market conditions to justify the product's need, and specifies how business products meet target market needs. Finally, it includes business planning forecasts and identifies responses if targets are not met. The report aims to provide a comprehensive overview of the strategic planning process for a new business venture.

Planning a New
Business Venture

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Types of business organizations and analysing potential benefits, limitations and risks
associated with each....................................................................................................................1
1.2 Sources of finance for each type of business........................................................................2
1.3 Legal considerations required to planning a business venture..............................................3
2.1 Assessment of market conditions that affects while setting up a new business....................3
TASK 2............................................................................................................................................4
A) The organization....................................................................................................................4
3.1 Vision, mission, aims and objectives of business.................................................................4
3.4 Business structure and systems which will deliver the business aims and objectives..........4
b) The product.............................................................................................................................5
2.2 Analyse the gaps at marketplace for potential products........................................................5
2.3 Target markets.......................................................................................................................6
3.2 Interpretation of external factors and market conditions to justify the need for product......7
3.3 Specification of business products to meet the needs of target market.................................7
c) Forecasts..................................................................................................................................7
3.5 Business planning forecasts based on targets........................................................................7
3.6 Identification of business responses if targets are not met....................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Planning is an effective process of organizing activities in order to achieve set objectives
or goals in a defined time period as well as assist an individuals towards right path. However,
there are various types of business organisation are identified at marketplace which plays a major
role in serving numerous of customers (Burke, Fraser and Greene, 2010). This assignment is
segregated into various sections for understanding the vision, mission and objectives of specific
enterprise with the help of different methods. Thus, Sellotape is a manufacturing company which
is primarily utilized by millions of customers for joining, sealing, connecting and repairing.
Moreover, this project is going to outlined essential steps or factors involved in setting a new
business venture such as; legal formalities, analysis of target market or situation, source of
acquiring fund, external elements and so on.
TASK 1
1.1 Types of business organizations and analysing potential benefits, limitations and risks
associated with each
There are distinct types of business enterprises identified in the European marketplace
which are described as follows:- Service business:- According to this, an association is engaged in providing intangible
goods to their clients such as; offer professional development, hospitality services, advice
from experience person and other similar products. In fact, in this offered employment or
help is not seen by anyone whereas it has been measured in experience form. Marriott
hotel is one of the perfect example of service business. Limitation:- Absence of inventory, problems while valuation and so on. Benefits:- Options to use number of techniques during selling process. Retail: - Their main objective is to distribute goods or services through multiple channels
in order to gain maximum benefits (Brinckmann, Grichnik and Kapsa, 2010). ALDI is a
major example of retail industry.
1. Limitation:- Maximization of cost due to presence of various activities.
2. Benefits:- Personal communication with customers.
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 Manufacturing:- Business involved in producing necessary goods for further distribution
and to final consumption falls under this category. In fact, their main motive is to design
unique or impressive products as per consumer demand.
1. Limitation:- Chance of price maximization
2. Benefits:- Absorption costing and tax advantageous. Hybrid business:- Organization which are involved in more than one kind of business are
falls under this. For example; Marriott hotel is providing staying facilities with foods or
beverages, bar in their basement and various other additional benefits.
1. Limitation:- Chances of conflicts due to availability of numerous small-small
business.
2. Benefits:- Permit employees to work on multiple projects.
Apart from this, these organization are falls under various types of organization which is
highlighted as follows:-
 Private :- Non-governmental association which is set by private owned entrepreneur in
order to gain maximum benefits by satisfying needs of customers (Dimov, 2010).
 Public:- Partially controlled by governing bodies for developing overall society.
 Voluntary:- Social service or charitable institutions.
1.2 Sources of finance for each type of business
Capital acts as the backbone for every organization either small, medium or large because
they all can run their enterprise with the help of sufficient funds. As a result, business activities
are accomplished by taking the help from financial department. Thus, various sources of finance
are explained as follows:-
Long term sources (More than 5 years) Government grants/ loans/ commercial banks: - Governing bodies are allocating fund
for big projects like road construction, infrastructure and for public development which
continues for maximum tenure. Equity shares: - Inventory which shows the interest of entrepreneur and owner’s fund. Retained earnings: - Signify as a percentage of net gaining which is not paid as a
dividends but use by an organization for reinvestment in core business.
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 Preference shares: - Dividends or amount which is invested by shareholders in an
enterprise.
Short term sources (1 year or less than it) Trade credit: - Offered by suppliers in which payment is done in the future. Loan for minimum tenure: - Acquiring fund from commercial banks for minimum
duration with less interest (Davidsson and Gordon, 2012).
 Creditors: - Borrow money from other party for specific time period.
Instead of all these above, there are various types of sources identified which are used by
different organizations as per their requirements.
1.3 Legal considerations required to planning a business venture
Legitimate bodies was designed an effective process which is required to consider while
establishing a new business venture in order to fulfil necessary legal formalities. In fact, it is
essential to consider terms and conditions set by various lawful bodies to run a business entity
towards corrective path. Therefore, some of the legal considerations which is necessary to follow
before starting a new venture is described as follows:- Name of an enterprise:- Initial step is to give a unique or different name of an
association in order to present it in front of public or any other party. Moreover, it
requires for registration process. Structure of an organization:- It determines the kinds and structure of a company
whatever an entrepreneur wanted to create. For example; sole proprietorships,
partnership, corporations and so on.
 Licenses:- It is essential to acquire license from legal authorities before operating
business entity.
2.1 Assessment of market conditions that affects while setting up a new business
Marketplace fluctuated due to changes in micro and macro factors because it influence
the development of an enterprise in various manner. Analysis means identification of current
trends, competitors, alteration in government policies, norms, rules or regulations, increase in
employees expectations demand and various other factors which may hamper the working of a
business entity. In fact, it supports an association during manufacturing process, decision
making, strategy making and so on. Along with this, aids in acquiring necessary information
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about market conditions in order to generate maximum revenue on initial investment (Johnston
and Bate, 2013).
TASK 2
A) The organization
3.1 Vision, mission, aims and objectives of business
Sellotape is a very large enterprise by having its branches in number of countries and
society love to use it for sealing process. Vision, mission, aims and objectives of an enterprise is
going to mentioned underneath:- Vision :- An organization wanted to establish their goodwill across international
boundaries by completing their long term projects. Additionally, they believe in
facilitating customers at minimum price. Mission:- Sellotape is trying to expand their business from one place to another in order
to generate maximum revenue by satisfying consumer needs or demands.
 Aims and objectives:- First and foremost motive is to provide qualitative products
without any cheating or fraudulent activities (Thompson and MacMillan, 2010).
Hence, it has been analysed that Sellotape believes in fulfilling the requirement of local
as well as foreign customers by offering every type of tapes.
3.4 Business structure and systems which will deliver the business aims and objectives
Sellotape is a large enterprise by having involvement of various shareholders due to
broad nature and it requires specialist persons in order to accomplish business operations in more
efficient manner. In fact, selected organization follows the structure of limited corporations due
to having number of locations and subsidiaries in various other nations for gaining maximum
benefits. They need to understand the needs or demands of various customers so that they can
manufacture tapes as per consumer choice or preferences. In fact structure of an enterprise plays
a very eminent role in attaining their set objectives or targets because it shows the corrective path
to them and encourage employees towards attainment of personal or professional goals.
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b) The product
2.2 Analyse the gaps at marketplace for potential products
Assessment of gap is a term which shows the difference between actual performance and
desired or potential. Therefore, if staff members of Sellotape are failed in utilizing suitable
resources then they can't able to attain desired results. Basically, referred organization is
involving in offering various types of tape in different colours with numerous in size (Parker and
Van Praag, 2012). Thus, they are trying to using gap analysis in order to identify what an
enterprise is trying to do in their current time period and where they wish to reach in future by
satisfying needs or demands of local as well as foreign customers. In fact by using systematic
approach an organization may get succeeded in understanding the strategies of competitors and
actual position of a company at marketplace. Generally, it helps overall management by guiding
them while decision making process and during manufacturing new products.
(Source:- Sellotape Original Golden Tape Roll, 2016)
According to above diagrammatic representation it has been analysed that selected
enterprise engaged in designing different size of tape which is used by customers while parcel
process and to connect something. Thus, an enterprise gap analysis process for determining the
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Illustration 1: Sellotape Original Golden Tape Roll

current position of a company at marketplace and direct employees to achieve their set objectives
by showing their future.
(Source:- Bhasin, 2017)
2.3 Target markets
Marketing team of an enterprise is trying to classified their markets into various section
in order to understand the needs or demand of numerous of clients as well as get succeeded in
attaining their set objectives (Hormiga, Batista‐Canino and Sánchez‐Medina, 2011). As a result,
gain maximum return on their investment by satisfying domestic as well as foreign clients.
Therefore, target market is segmented into various parts which is explained below:- Demographic:- According to this term, an enterprise is going to differentiate their
customers on the basis of gender, age, wages, education. It helps them in understanding
taste or preferences of various age group and offers them as per their need. Geographic:- Products distributed by classifying as per different locations, climate,
region and addresses of clients. It means an enterprise need to supply products by
considering demand or supply. Behavioural :- According to degree of trust or loyalty. For example; if an individual are
addicted towards particular brand then they are always prefer the same brand.
 Psycho-graphic:- Depend on customers attitudes and their lifestyles.
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Illustration 2: Process of Gap analysis

3.2 Interpretation of external factors and market conditions to justify the need for product
Macro components plays a very vital role in understanding the market situation in order
to identify the requirement of Sellotape to their customers living in UK. An organization is fully
get influenced by rules or regulations designed by political bodies because company needs to run
their business entity as per government norms. Along with this changes in single factors affects
the choice or demand of individuals. For example; if there is fluctuation in inflation rate then it
affects the sale of an association in various manner (Sellotape Original Golden Tape Roll, 2016).
Generally, market conditions helps in determining requirement of product to different customers
with the use of appropriate tools.
3.3 Specification of business products to meet the needs of target market
Sellotape is a company by having its branches in number of companies and liked by
millions of clients due to its effectiveness and beneficial to common man. An organization is
trying to satisfied their customers of target market by highlighting the speciality of particular
products. Thus specification of organisational goods is described as follows:-
 Availability of maximum colours and provides as per consumer demands.
 Shiner tapes with beautiful or unique shades which is used by students.
 Distinct number of size.
 Useful for parcel during long term route.
In fact, Sellotape is a one of the necessary products which is required by every small or
large enterprise while transferring their goods or services from seller to buyer.
c) Forecasts
3.5 Business planning forecasts based on targets
Forecasting is an appropriate term which is used by company for assuming future in order
to fulfils the demand of targetted customers (Bhasin, 2017). Along with this, it helps in
identifying requirement of different clients with the help of various factors, components,
elements and so on. Managerial team of an association forecast future for attaining set
organisational goals.
3.6 Identification of business responses if targets are not met
If an enterprise get failed in meeting the above needs or demand of customers then they
have to take necessary steps by reforming their current policies and strategies. In fact, they need
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to plan as per consumer taste or preferences as well as current trends which affects success of an
association.
CONCLUSION
From the above report it has been summarised that there are numerous types of
organization are available at marketplace in order to gain maximum benefits. In fact, major
objective of this assignment is to explain the methods of establishing a new venture by
considering necessary information or data. Along with this, how Sellotape which is a
manufacturing company designs different types of tapes uses various strategies to achieve their
set objectives or goals.
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REFERENCES
Books and Journals
Burke, A., Fraser, S. and Greene, F.J., 2010. The multiple effects of business planning on new
venture performance. Journal of management studies. 47(3). pp.391-415.
Brinckmann, J., Grichnik, D. and Kapsa, D., 2010. Should entrepreneurs plan or just storm the
castle? A meta-analysis on contextual factors impacting the business planning–
performance relationship in small firms. Journal of Business Venturing. 25(1). pp.24-40.
Dimov, D., 2010. Nascent entrepreneurs and venture emergence: Opportunity confidence, human
capital, and early planning. Journal of Management Studies. 47(6). pp.1123-1153.
Davidsson, P. and Gordon, S.R., 2012. Panel studies of new venture creation: A methods-
focused review and suggestions for future research. Small Business Economics. 39(4).
pp.853-876.
Johnston, R.E. and Bate, J.D., 2013. The power of strategy innovation: a new way of linking
creativity and strategic planning to discover great business opportunities. AMACOM
Div American Mgmt Assn.
Thompson, J.D. and MacMillan, I.C., 2010. Business models: Creating new markets and societal
wealth. Long Range Planning. 43(2). pp.291-307.
Parker, S.C. and Van Praag, C.M., 2012. The entrepreneur's mode of entry: Business takeover or
new venture start?. Journal of Business Venturing. 27(1). pp.31-46.
Hormiga, E., Batista‐Canino, R.M. and Sánchez‐Medina, A., 2011. The Impact of Relational
Capital on the Success of New Business Start‐Ups. Journal of Small Business
Management. 49(4). pp.617-638.
Online
Sellotape Original Golden Tape Roll, 2016. [Online]. Available
through<http://hdfinch.co.uk/product/sellotape-original-golden-tape-roll-non-static-
easy-tear-large-24mmx66m-ref-1443268-pack-12/>.
Bhasin, 2017. [Online]. Available through<https://www.marketing91.com/process-gap-
analysis/>.
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