Business Essentials Report

This report examines the feasibility of launching a new Italian food truck named 'Gusto Italiano' in the UK. It covers key aspects like business idea, objectives, PESTLE analysis, launch event planning, marketing strategies, and supply chain management. The report provides a detailed analysis of the target market, competitors, and potential challenges, offering valuable insights for aspiring entrepreneurs.

BUSINESS ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Part A - Business Idea.................................................................................................................1
Part B - Objectives of Business...................................................................................................2
TASK 2............................................................................................................................................2
PESTLE Analysis........................................................................................................................2
TASK 3............................................................................................................................................3
Part A - Launch Event.................................................................................................................3
Part B - Financial Budget for Launch Event...............................................................................3
TASK 4............................................................................................................................................3
Describing marketing and marketing plan for business activity.................................................3
TASK 5............................................................................................................................................5
Business Decisions......................................................................................................................5
TASK 6............................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business is an activity which is operated by a single individual or group of people for
making money by buying and selling products in market. It is basically run by them in order to
make profit from it. Present report will talk about a new business idea, i.e., opening a new Italian
food truck named 'Gusto Italiano' in UK. It will explain about the objectives behind this business
idea. External analysis like PESTLE analysis will be performed on the enterprise. Study will also
produce a budget as well. It will also be explaining about the marketing and it plans which are
essential for them and key factors of supply chain which are required in setting up this start up.
TASK 1
Part A - Business Idea
The business idea is about setting up a new Italian food truck named “Gusto Italiano” in
UK. This startup will be a private business. It will be going to operate offline as this will help in
increasing their sale. This business idea will be a great start up as it will provide food services
focusing mainly students and youngsters, who prefer these type of food items. It will be a great
idea for any start ups by focusing students as they are keen in eating new food items to
experiment. By analyzing the requirement of potential customers and giving them services
according to their needs, it will help them in enhancing the business activity effectively. There
are already so many Italian cafes in United Kingdom that are operating successfully, but this
startup will include several innovative ideas and some fusion italic food in its menu which will
make it different and unique from other cafes.
As it will be a food truck, it's easy to select an appropriate place, such as, near
universities or college, offices, etc. where there are high chances of their sale. Making some
changes in the food items will help in attracting students as they would prefer to try something
new. Some competitors that are present already in the market are listed below in table:
Key Competitors Specialty
 Habaneros Mexican Street
Food
 Seasonal Mexican cuisine specially Burrito and
wine.
 Sud Italia  Authentic Italian Pizza and Pasta. Attractive
sitting area.
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 Pizza Pilgrims Van  Italian chorizo pizza with variety of flavors and
options.
 Stringray Globe Cafe  Known for its thin crust pizzas with amazing
decoration and courtyard sitting.
All these can be as a tough competitor as these are, first, very famous cafes in UK which
has their loyal customers, Secondly, they are offering some different services as compared to
each other. For example, it will fuse Italian dish with Russian to come up with entirely a new and
innovative food item in their menu to attract customers.
Part B - Objectives of Business
The main objective behind starting this business start-up are explained below:
 To provide students and youngsters good food at reasonable price which can be easily
affordedable by them.
 To produce fusion Italic food which is completely a new idea in UK. It can be very useful
for owner than it will help them to generate a good revenue from business activity.
 To help reach maximum number of customers in order to expand their business.
 To explore ideas and experience in enhancing this start-up which can be very useful in
competing with others.
This start-up will be a partnership business which will be operated by 3 people. This can
be very helpful as it will help them in generating new ideas which can be used in this business. It
will also help them financially as well. The focus behind these objectives is to provide healthy
and tasty food to students specially youngsters. This will also help in sharing personal experience
for enhancing the overall performance of this business. The main reason behind the objectives of
this start up is to explore the ideas of introducing fusion italic dishes at reasonable cost and to
expand this business more in country to compete with the competitors.
TASK 2
PESTLE Analysis
This analysis will help in finding all the external environmental factors which can affect
this business in UK. These factors are explained below:
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Political Factor Technological Factor
 It is very important to follow all rules
and regulations that are compulsory for
start up to implement in their business.
 It's essential to take care of hygiene and
food quality (Guffey and Loewy,
2016).
 This factor is very crucial as it has
influenced food industry a lot.
 Customer service and convenience are
also major factors affecting sales.
 These can also affect marketing
strategies of start-up as well.
Economic Factor Legal Factor
 Present economic condition of UK
should be considered very carefully
before starting the business.
 Various economic factors can affect
them, such as recession, inflation,
taxes, etc.
 There are various laws which has to be
followed effectively.
 Food quality and nutritive value are the
major areas affected by law.
 They have to maintain the hygienic
quotient very effectively.
Social Factor Environmental Factor
 These are the most important factors
which has to be taken into
consideration.
 These includes, customers behavior
towards food, their taste, income,
increased health consciousness etc.
 It is important to maintain the waste
management properly.
 Using recyclable plates will be very
beneficiary for this start up to increase
their sales (Guffey and Loewy, 2016).
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TASK 3
Part A - Launch Event
For the promotion of this business, an event will be organized in Westfield Stratford City
mall located in Olympic Park, Montfichet Rd, London E20 1EJ, UK. This social gathering will
be followed by serving some special food items from the menu of 'Gusto Italiano' food truck to
have a taste. Also, there will be a celebrity chef Gordon Ramsay for the ribbon cutting. Event
will take place in the evening in weekend at 7-9'o clock. By organizing this event, it will be very
helpful in attracting more customers. For this event, there is approx. 150 people's vacancy. The
estimated budget for this launch event is calculated approximately £50,000.
Part B - Financial Budget for Launch Event
Budgeted cash flows
Particulars Initial investment amount (In £)
Revenue from Sales 25000
Total inflows 25000
Operating expenses
Charges Payable to Celebrity 4000
Lightening Charges 1500
Staff 8000
Mall charges 7000
Suppliers 2000
Organiser 750
Total Out Flows 23250
Net Cash Flow 1750
Initial Investment 50000
Cash the Beginning 50000 50000
Cash the End 50000 51750
TASK 4
Describing marketing and marketing plan for business activity
It is very important for any business to have an effective marketing strategy and plan
which can help them in enhancing the services and promoting their business in market. This will
also help in attracting more customers and generating a good revenue from it. These objectives
can be achieved by following methods:
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 Marketing objectives: It is very important to have a clear insight of all the aims and
objectives that has to be achieved from this business. As it is a food truck of Italian food,
it can stand near universities, colleges or offices. The main objective is for providing
new, innovative and fusion Italian dishes which are totally different from what existing
restaurants or cafes are offering to customers. Also, it will be at reasonable cost which
will easily be affordable by every individual (Sherry and Canon, 2014).
 Target Markets: The main focus of this business is to target students and youngsters as
they are more prone to use such type of food items. It will also help in increasing their
start up as students are easier to attract towards new and innovative things. Objectives
behind this business is to provide affordable food at low prices to them.
 Marketing strategies for each target market: It is very important to have a strong
marketing strategy in promoting the service to their target customers which is basically
students of university or college. Making effective communication related to their food
preferences and tastes will help a lot in providing best services which is according to their
requirements. Interacting with these students is a useful tactic to enhance their overall
performance of business (Hair Jr and et.al., 2015). For the promotion of this start up,
online marketing will be very effective to apply as it will reach to maximum number of
people in less time.
 Marketing Mix: This process will help in understanding the 4 P's of marketing
which are price, place, product and promotion. Considering all these factors is very
essential for any business to operate successfully and effectively (Hugos, 2018).
Element Description Justification
Price
Providing food items at low cost will
help business to attract more
customers and will generate a good
revenue from it.
There are so many outlets which
offers the same food at high
prices. This will be a great choice
for them to opt for.
Product It will provide Italian cuisine with
some twist in it, i.e. dish will be a
fusion of Italian food (Oraman,
2014).
Offering customers something
new and innovative will help in
gaining large number of
customers.
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Place The business’s product is going to be
sold completely offline via its food
truck on the roads of UK at different
places.
It is easier for the students to have
freshly prepared food on time. It
will also help to have variety of
options in menu.
Promotion Promotion will help in advertising
their business in market. This can use
various modes, such as, offline mode,
online, campaigning, etc. while,
professionals in Gusto Italiano will
promote the business online by using
social platform such as, Facebook,
Instagram, Twitter or even by
creating their own website can be a
good idea.
Using internet and social platform
is chosen as it is widely used by
students and youngsters, which
can be very beneficiary for
promoting services (Oraman,
2014).
TASK 5
Business Decisions
In every business or start up, it is very essential to focus on all the aspects which is
related to it. By doing this practice, it will help in analyzing the business more precisely and
accurately and also help in getting better results. These business decisions can be concluded in
three different ways, as explained below:
Operational Business Decision
In this, it includes all the operational decisions of the business
which has to be performed carefully. It will have all the
employees, chefs, etc. who are linked with this start up to
make it a big success. One operational decision, which is very
essential is to have all skilled employees which can help in
improving their services. For their operational decisions, they
can use transnational processing system in their organization.
Tactical Business Decision In tactical business decision, owner will analyze the sale of its
particular food item. If it is popular among its customers than
he can increase the price of that item as it has made its loyal
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customers who will prefer it anyways (Prewitt and Weil,
2014). This can be great decision in increasing their sale. In
tactical, decision support system can be implemented by
them.
Strategic Business Decision One strategic business decision which can be very helpful for
them is that they can offer them some free side beverages
with their main order such as, a cup coffee, pastry, etc. which
can help them in attracting more customers. Management
support system can be very useful in strategic business
decision.
TASK 6
Supply Chain Management Elements
It is very important for business owner to identify all key elements of supply chain
management and effectively operating all its functions to improve it and increase their
profitability. Several factors that are required for this business is explained below:
Element of the supply
chain
How is this going to be addressed
in the business
Why is this the correct way
to operate?
Raw material supplier Having a good supplier for the
supply of their raw material plays an
important role as it can affect their
food preparation. It is very important
to have fresh and healthy raw
material. Making contacts with some
famous supplier can be very useful
for the business.
For operating business in food
industry, it is very crucial to
offer good and healthy food to
their customers which is only
possible if they have a good
supplier who supply them
fresh material for their
preparation.
Distribution This is also considered as an
important part in business.
Distribution of their food items to
maximum number of customers will
These can be done by studying
their market analysis and
identifying that place which
has their maximum target
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be very beneficial for them in
increasing their business activity
(The Eight Components of Supply
Chain Management, 2017).
customers. Focusing on this
will be very helpful for them.
Process This is the most important task in
this business. It has to be done very
carefully as it is the main process in
the preparation of food. Having
skilled trainer and chef can be very
useful for them in this step.
Maintaining the hygiene
quotient of the food item will
help in proving the best quality
of food to their customers.
CONCLUSION
From the above report it can be concluded that business knowledge is very essential in
starting any start up. It helps in providing all the information which is related to that business.
These information’s will be very useful in improving the overall performance. This report has
explained PESTLE analysis which helped the business to understand its external environmental
factors. It has also produces a marketing plan which includes their objectives and marketing mix
and tactics. In the end, it has explained about supply chain management which is required by the
start up in order to enhance their overall performance.
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REFERENCES
Books and Journals
Guffey, M. and Loewy, D., 2016. Essentials of business communication. Language. p.610.
Hair Jr, J. F. and et.al., 2015. Essentials of business research methods. Routledge.
Hugos, M. H., 2018. Essentials of supply chain management. John Wiley & Sons.
Oraman, Y., 2014. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit
in Turkey: Market Growth, Challenges and Prospects. Procedia-Social and Behavioral
Sciences. 150. pp.1030-1039.
Prewitt, J. E. and Weil, R., 2014. Organizational opportunities endemic in crisis leadership.
Journal of Management Policy and Practice. 15(2). p.72.
Ragas, M. and Culp, E., 2014. Business essentials for strategic communicators: Creating shared
value for the organization and its stakeholders. Springer.
Sherry, C. S. and Canon, C. L., 2014. An Introduction to “Business Essentials”. Journal of the
American College of Radiology. 11(2). pp.110-111.
Online
The Eight Components of Supply Chain Management. 2017. [Online]. Available through:
<http://www.iqualifyuk.com/library/business-management-section/the-eight-components-
of-supply-chain-management/>
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