Emotional Attachment Creation with Potential Customers

This assignment content discusses the development of a shopping project in the UK retail sector. The project's business model includes operational and management models, with the owners planning to market the space and manage the building after establishment. The promotional and marketing plan involves ATL (Above the Line) and BTL (Below the Line) strategies to target premium segments and enhance popularity. The financial costing or forecasts consider funding requirements, including worker compensation and hardware costs, with a total project cost of approximately $30,000. Innovation and entrepreneurial focus are also emphasized as key factors in maintaining a successful retail sector. Overall, the project aims to establish a shopping mall that meets consumer demands and tastes, offering profit-making opportunities.

Running Head: Small Business Management
Small Business Management
UK Retail Sector

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Table of Contents
Introduction......................................................................................................................................1
Feasibility Study..............................................................................................................................1
1.1 Critical Analysis and Evaluation of the Macro Environmental Factors...........................1
1.2 The Breadth and Relevance of secondary or primary sources200....................................6
1.3 Overall Case Strength for Opportunity Recognition.........................................................7
Draft of Standard Business Plan......................................................................................................8
2.1 Business Objectives and strategy for Growing Business in the Medium Term.....................8
2.2 Business Model including Operational and Management Model..........................................9
2.3 Promotional and Marketing Planning..................................................................................12
2.4 Justified financial costing or forecasts and consideration of funding requirements............12
2.5 Innovation and entrepreneurial Focus evidence...................................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
The chosen sector for this paper is a retailing sector of UK. Generally, it can be said that retailing
is the economic sectors of the country, employing around 2.5 million people, with retail sales of
£220 billion, and operation more than 300,000 shops. The main motive behind this project is to
identify the business opportunity in the retail sector. This has been done through conducting a
deep analysis of the competitiveness of the sector by using PEST, SWOT, or Porter five forces
model. Apart of this, a standard draft of business also has prepared. Moreover, In UK there are a
large number of retailers and multinational businesses which dominate the whole sector. Thus, it
can be said that retailing is a significant sector due to its social dimension and wide role in the
economy of UK.
Feasibility Study
1.1 Critical Analysis and Evaluation of the Macro Environmental Factors
Critical analysis and evaluation of UK retail sector start with an assessment of the macro
environment within which an organization operates. The framework for analysis used in this
paper is mainly based on three different stages. First is the identification of change influencing or
key drivers of the retail sector which is covered by conducting PEST analysis. Secondly, study
competitive study of UK environment is performed with the help of Porter 5 forces model
(Aguzzoni, 2016). At last, core competencies which contribute to success within retailing is
studied.
PEST Analysis
Factors Agents of Change Future Consideration

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Political Trends and
Structure
 Planning Policy
 Business Regulation
 E-Society
 National Debate
 Land Utilization
policy control over
attitudes and location
to issues of
transportation or
sustainability
 Trading activities
such as employment
and selling practices
regulation (Yu, 2014)
 Awareness or
capabilities, and
infrastructure
development for
business and
customers
 Understanding or
perceptions of the
sector structure, or
behavior and
ownership
Economic Trends and
Structure
 Open Market
 Economic
 Scale at international
or national level; non-

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Performance
 Personal Disposable
Income
UK sector ownership
 Retail property and
investment capacity of
the sector
 Potential pension, role
of interest and credit
rates, confidence of
consumers
Socio-Cultural Trends  Mobility
 Behavior and Beliefs
 Perception of mental
and actual distance
 Conflict between
desire for simplicity
and complexity, or
contradictions in
behavior (Metzger,
2014)
Technology Trends  Change in Business
process
 Product Innovation
 Relationships and
reorganizations, and
alteration in retail
activities
 Durability and
convenience,
customer acceptance

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or adoption, critical to
measure; pressures for
minimization
Porter 5 Forces Analysis
Threat of New Entrants
 Chain Stores
 Reduction in Independent retailers
 Centralized buying competitive
advantage
Power of Suppliers
 Less power
 Historically, relationship exploitation
Threat of Substitutes
 Shifting chances is greater.
 Deal with a large number of products
Power of Buyers
 High-quality products retailer's honest
 Low power of bargaining
Rivalry among Existing organization within industry
 Reduce- Loyalty cards, frequent fliers, membership, etc.
 Cut throat competition (Blackley, 2017)
SWOT Analysis
Strengths Weaknesses

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 Biggest Supply chain of UK
 Ethical reputation
 Powerful card of loyalty
 Own-Label Brands
 Political Uncertainty and Regulatory
requirements
 Poor Infrastructure of supply chain
management (Diaz, 2015)
Opportunities Threats
 Digital Strategy
 R&D or innovation capacity
 Changing Lifestyle
 Growing Competition
 Growing rate of land and real estate
Entrepreneurial focus and evidence of innovation
Entrepreneurial and evidence of innovation can judge by seeing the sector popularity in the UK.
This ongoing popularity gives birth to a customer-centric approach. This approach not only
improves the efficiency of the sector but also helpful in achieving greater effectiveness in the
customer's experience of the retail offer. After this, it becomes popular due to creativity in the
retail job and shopping process (Christina, 2014). This creativity increase quality life of
customers throughout the shopping experiences. After this, various novel disciplinary and wide
range of technology approaches came into existence which plays an effective role in improving
customer's experiences by providing effective services.

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1.2 The Breadth and Relevance of secondary or primary sources200
Generally, secondary and primary research sources prove very effective in conducting a research
study. In a similar manner, primary research and secondary research sources also help a lot in
conducting competitive analysis and strategic analysis of UK retail sector. Primary sources like
questionnaire, observation, and interview prove relevant in collecting following information:
 Overall efficiency and effectiveness of sector
 Consumer buying behavior
 Knowledge regarding fair prices to British consumers
 Effect of political and economic factors
Apart of this, secondary sources also contribute enough to give us knowledge about the strategic
performance and evolution of the retail sector (Cullen, 2013). Secondary sources such as
scholarly paper, articles, magazines, and newspapers prove relevant in collecting following
information:
 Retail sector growth in a particular country.
 Effectiveness of marketing and strategic tools
 The potential for over-regulation of the retail sector and its operations, restricting
innovations and adding to costs.
 Efficiency of different marketing tools
 Competitiveness and strength of the retail sector
 Cost structure of UK which makes it a high-cost place for performing business
 Technological advancement

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Thus, it can be said that primary research sources and secondary research sources make the
research easier and give us significant information in conducting the research efficiently.
1.3 Overall Case Strength for Opportunity Recognition
Nowadays, retailing is considered the most important sector of an economy of a country. It is
crucial to consumers through their day to day interactions, and also economically significant in
terms of contribution to GDP and jobs. Overall it can be said that retail sector is a growing sector
and have enough strength. It produces a large number of opportunities to business organizations.
Retail sector of UK covered circa £ 35 billion in specialist sector (Sullivan, 2015). The increase
in the value segment of retail market enhances the GDP of the country in a significant manner.
On the other hand, the competitive structure of the retail sector is very vast and difficult to map.
Due to this, the retail sector is the focus of every country and business houses. Apart of this, a
combination of different channels as footwear and clothing specialists like grocery chains,
department stores make it more competitive and attractive than other sectors. Thus, it can be said
that the retail sector of UK has a great strength and potential due to the availability of a large
number of growth opportunities. Its strength can understand by the following figure:
(Rothaermel, 2015)

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Draft of Standard Business Plan
2.1 Business Objectives and strategy for Growing Business in the Medium Term
Project Background
It is a plan for construction of a shopping mall in the UK that will be of international standards.
As the retail sector of UK is growing, then there is a good opportunity to develop a shopping
mall there. This mall will provide access to services and goods to local residents and tourists as
well. The UK is endowed with a lot of minerals and huge potential for economic growth. The
concept revolves around the construction of multi-million Euro shopping mall.
Project Objective
 Offer a one stop solution to its target customers and entertainment experience for the
people of the UK or surrounding areas.
 Offer an entertainment experience and modern shopping to international visitors.
 Enhance the value and wealth of stakeholders through giving good quality products and
generating high profit by operating on an efficient basis.
 Contribute in a limited manner towards enhancing the life quality of UK people by
providing international class and quality entertainment or shopping facilities, and
employment.
Strategy for Growing Business in Middle term
In middle term of a shopping mall, the strategy will develop for extending its product line so that
it can attract a large number of customers by providing them a large number of products under a
single roof. On the other hand, clear and precise positioning strategies will develop to establish
the brand of a shopping mall in the eyes of target customers (Hill, 2014). If it is able to do so, it

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can gain a competitive advantage in its potential market than its competitors. On the other hand,
loyalty programs will arrange to create an emotional attachment with potential or target
customers. This will be helpful in gaining the confidence of a large number of people.
2.2 Business Model including Operational and Management Model
Management Model of Project
During the development of the shopping project, the owners will plan on how to market the
space and manage the building after establishment. After this, owners will appoint the managing
agents and letting agents carry out the formation tasks. They both are appointed from one
property organization that offers both services. Overall management model of shopping complex
project can understand with the help of below-mentioned figure:
Operational Model
Development of a shopping project is a combination of a large number of operations and
activities. Below-mentioned work breakdown structure and Gantt chart of the project will give
the overall information about the project operations and its starting and finishing date.

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2.3 Promotional and Marketing Planning
Promotion of the shopping mall will be done by using attractive and effective strategies.
Following strategy mainly utilize for the promotion of shopping mall project:
 ATL: It is known for Above the Line Marketing. With the help of ATL marketing
strategy, broad area of the market can cover easily. ATL strategy enables the marketing
team of the project to target premium segment. This will able to enhance the popularity
of project among people (Bucha, 2015). Furthermore, use of ATL strategies enables the
marketing team of the project to give its ad in the newspaper with interesting taglines.
Ads by using ATL strategy come up with effective or attractive taglines. Thus, by using
ATL strategy promotion of shopping mall can do effectively.
 BTL: Another important strategy is BTL which is known as below the line marketing.
With the help of BTL marketing, promotion can do by using home advertisement with
hoarding or point of sale ads in big functions or events.
Thus, it can be said that the above-mentioned strategies can prove helpful in the marketing of the
project effectively.
2.4 Justified financial costing or forecasts and consideration of funding
requirements
Shopping Mall has different departments with different products and services. It mainly contains
footwear stores, clothing, groceries, electronics and much more. To diversify the project that can
generate profit-making opportunities, the project team can tie up with different brands who deals
in consumer product market itself (Eden, 2013). But, this can be only possible when the

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shopping mall is getting more and more popularity among UK people and tourists. Benefit
analysis of the project is done for the month of July to December for the year 2017 only. Benefit
analysis of next year mainly depends on the number of tourists and people visit in the shopping
mall. So, it is difficult to forecast the profit and cost of another year and so on.
There are few considerations made for the overall project that starts in the month of April and
will be completed by the mid of May. Cost consideration is following:
 Consideration is made regarding the compensation of workers. For complete the project
on timely and required basis hiring of project manager and other supportive staff will be
done on the basis of the hour rather than monthly salary.
 Hardware cost is taken as standard.
Apart from this funding schedule of its above-mentioned activities can understand by the
following figure:

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Above figures indicate that the project requires approximate $30,000 for establishing shopping
mall.
2.5 Innovation and entrepreneurial Focus evidence
Entrepreneurial focus and innovation can judge through measuring the success of the retail
sector. In the same manner, there are huge chances of project success. Innovation and
entrepreneurial focus add new features which make it more attractive and interesting which
attract a large number of people. Moreover, entrepreneurial focus and innovation focus can
maintain only by following all success and failure criteria of the project. So, it is essential for any
organization to follow project principles while conducting the development of a project.
Conclusion
After studying all the facts about the growth of UK retail sector, it can be said that there is a
great opportunity for organization success. Building shopping mall doesn't only get popularity
but also can earn huge profit. But it can be only possible when it develop according to demand
and tastes of consumers so that they can visit and like it in a greater manner.

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References
Aguzzoni, L., Argentesi, E., Ciari, L., Duso, T., & Tognoni, M. (2016). Ex Post Merger
Evaluation in the UK Retail Market for Books. The Journal of Industrial Economics, 64(1), 170-
200.
Bucha, M. H., Rizwan, M., & Shahid, M. S. (2015). Saving the Malls: A Promotion Strategy for
UK Retail Sector. Pakistan Journal of Social Sciences (PJSS), 35(2), 1167-1181.
Blackley, N., Blackley, N., Resnick, S. M., Resnick, S. M., Cassidy, K., & Cassidy, K. (2017).
Improving UK retail academic-practitioner research: insights from relationship
marketing. International Journal of Retail & Distribution Management, 45(1), 4-19.
Christina, S., Dainty, A., Daniels, K., & Waterson, P. (2014). How organisational behaviour and
attitudes can impact building energy use in the UK retail environment: a theoretical
framework. Architectural Engineering and Design Management, 10(1-2), 164-179.
Cullen, J., Tsamenyi, M., Bernon, M., & Gorst, J. (2013). Reverse logistics in the UK retail
sector: A case study of the role of management accounting in driving organisational
change. Management Accounting Research, 24(3), 212-227.
Diaz, A., Hill, J., Jenkins, R., Kay, A., Pye, A., Morley, D., & Tejedor Garavito, N. (2015). A
SWOT (Strengths, Weaknesses, Opportunities and Threats) evaluation of university student-staff
partnerships in co-creating educational resources, peer support and research within STEM
(Science, Technology, Engineering & Mathematics) subjects. Journal of Scientific Research &
Reports, 5(2), 161-170.

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Eden, C., & Ackermann, F. (2013). Making strategy: The journey of strategic management.
Sage.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Metzger, K. (2014). Business analysis of UK supermarket industry.
Rothaermel, F. T. (2015). Strategic management. New York, NY: McGraw-Hill.
Sullivan, R., & Gouldson, A. (2015). How Far Can Corporate Action on Climate Change Take
Us? Reflections from the Retail Sector.
Yu, W., Ramanathan, R., & Nath, P. (2014). The impacts of marketing and operations
capabilities on financial performance in the UK retail sector: A resource-based
perspective. Industrial Marketing Management, 43(1), 25-31.