Planning a New Business Venture Essay - Sellotape

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Added on 2020-07-22

Planning a New Business Venture Essay - Sellotape

Added on 2020-07-22

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Planning a NewBusiness Venture

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Types of business organizations and analysing potential benefits, limitations and risksassociated with each....................................................................................................................11.2 Sources of finance for each type of business........................................................................21.3 Legal considerations required to planning a business venture..............................................32.1 Assessment of market conditions that affects while setting up a new business....................3TASK 2............................................................................................................................................4A) The organization....................................................................................................................43.1 Vision, mission, aims and objectives of business.................................................................43.4 Business structure and systems which will deliver the business aims and objectives..........4b) The product.............................................................................................................................52.2 Analyse the gaps at marketplace for potential products........................................................52.3 Target markets.......................................................................................................................63.2 Interpretation of external factors and market conditions to justify the need for product......73.3 Specification of business products to meet the needs of target market.................................7c) Forecasts..................................................................................................................................73.5 Business planning forecasts based on targets........................................................................73.6 Identification of business responses if targets are not met....................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

Planning a New Business Venture Essay - Sellotape_2

INTRODUCTIONPlanning is an effective process of organizing activities in order to achieve set objectivesor 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 majorrole in serving numerous of customers (Burke, Fraser and Greene, 2010). This assignment issegregated into various sections for understanding the vision, mission and objectives of specificenterprise with the help of different methods. Thus, Sellotape is a manufacturing company whichis 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 newbusiness venture such as; legal formalities, analysis of target market or situation, source ofacquiring fund, external elements and so on. TASK 11.1 Types of business organizations and analysing potential benefits, limitations and risksassociated with eachThere are distinct types of business enterprises identified in the European marketplacewhich are described as follows:- Service business:- According to this, an association is engaged in providing intangiblegoods to their clients such as; offer professional development, hospitality services, advicefrom experience person and other similar products. In fact, in this offered employment orhelp is not seen by anyone whereas it has been measured in experience form. Marriotthotel 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 channelsin order to gain maximum benefits (Brinckmann, Grichnik and Kapsa, 2010). ALDI is amajor example of retail industry.1.Limitation:- Maximization of cost due to presence of various activities. 2.Benefits:- Personal communication with customers. 1

Planning a New Business Venture Essay - Sellotape_3

Manufacturing:- Business involved in producing necessary goods for further distributionand to final consumption falls under this category. In fact, their main motive is to designunique or impressive products as per consumer demand. 1.Limitation:-Chance of price maximization2.Benefits:- Absorption costing and tax advantageous. Hybrid business:- Organization which are involved in more than one kind of business arefalls under this. For example; Marriott hotel is providing staying facilities with foods orbeverages, bar in their basement and various other additional benefits. 1.Limitation:- Chances of conflicts due to availability of numerous small-smallbusiness.2.Benefits:- Permit employees to work on multiple projects.Apart from this, these organization are falls under various types of organization which ishighlighted as follows:- Private :- Non-governmental association which is set by private owned entrepreneur inorder 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 businessCapital acts as the backbone for every organization either small, medium or large becausethey all can run their enterprise with the help of sufficient funds. As a result, business activitiesare accomplished by taking the help from financial department. Thus, various sources of financeare explained as follows:- Long term sources (More than 5 years)Government grants/ loans/ commercial banks: - Governing bodies are allocating fundfor big projects like road construction, infrastructure and for public development whichcontinues 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 adividends but use by an organization for reinvestment in core business. 2

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