Launching a New Venture

This document provides insights into launching a new venture in the coffee industry, specifically focusing on Coffee Cafe Town in Italy. It covers topics such as target markets, competitive analysis, tangible and intangible resources required, and promotional activities. The document also includes a proposal for the new venture and evaluates the skills and capabilities needed for success.

Launching a New Venture

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain new venture and identify specific target markets and undertake competitive
analysis...................................................................................................................................3
P2 Tangible and intangible resources which required by chosen company for launching new
venture....................................................................................................................................4
TASK 2............................................................................................................................................6
P3 Produce a credible proposal to launch a new venture in chosen organisation..................6
P4 Evaluate the skills and capabilities required to launch a new venture and how a person can
acquire or develop it...............................................................................................................8
TASK 3............................................................................................................................................9
P5 Different promotional activities and channels that will support launch of the venture and
justify it ..................................................................................................................................9
P6 Develop an appropriate promotional activities plan for both launch and pre launch of new
venture..................................................................................................................................11
P7 Produce an itemised monthly cash budget for pre-launch phase of the venture and first 12-
18 months preceding launch of venture................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................17
.......................................................................................................................................................17

INTRODUCTION
When there is need of launching a new business, there is need of conducting market
analysis and research in order to know whether new business can run effectively or not. Any
person can start business by conducting a strong research and analysing the survival of business.
Business venture can be launched in any of the areas like domestic or international market so that
successful business can be conducted. The main objective of any business is to meet the demands
or needs of customers. The company chosen in this report is Coffee Cafe Town which is going to
launch in market of Italy. This report includes research for starting this business venture, market
analysis, competitive analysis, as well as how to develop a new product that is able to meet the
needs and demands of customers. There is description about various promotional activities and
budget of Coffee Cafe Town.
TASK 1
P1 Explain new venture and identify specific target markets and undertake competitive analysis
The new business venture given in the present report is coffee cafe town. This is going to
be launched in Italy. This café provides high quality products and services so that it can attract
lot of customers. Different type of products which are offered by buy this café are are
government coffee, ice coffee, chocolate soaps, choco frappe, etc. There are various type of
services provided by this café such as live music, area for children to play, reading zone, etc.
Some of the services are very attractive that increases the the attention of customers for coffee
cafe town in order to to enhance the profit. this cafe also provides some programs which are
related to poetry, singing, etc. These are helpful in getting attention of lot of customers and
providing them good experience. The café business request to have an effective research before
starting the café. The business managers who are starting this new café have to conduct strong
and effective market research for achieving the the specified targets and objectives. Some of
these factors are given below-
Identify target market- the target market is defined as potential customers who will be
benefiting the organisation by going to café and buying the products. The target market for cafe
are all individuals including males and females who are addicted to coffee. The target customers
are people who loves reading books and they want to enjoy good ambience and live music.

Competitor analysis - this is known as development of effective plans and strategies which
are helpful in conducting business. An organisation has to to identify and evaluate all
competitors and evaluate strength as well as weakness of cafe in order to to achieve success. The
competitor analysis is helpful in in evaluation of needs and demands of customers and also
strategies of other cafes to sustain in market. New coffee café town has to develop effective
strategies in order to to graph success in market.
D1 Develop a detailed proposal that demonstrates critical analysis and reflection of the
competitive environment with supporting contingency planning to minimise risk.
The new business venture given in the present report is coffee cafe town. This is going to
be launched in Italy. Different type of products which are offered by buy this café are are
government coffee, ice coffee, chocolate soaps, choco frappe, etc This café is going to make
more profits in new marketplace.
Reflection – I think the business idea of starting coffee town in café. I am excited for this
business as it is a dream come true. This will be an Italy based café which will be successful. I
have developed and created effective plans for managing financial and environmental factors that
can impact upon my business. I have decided to conduct external and internal analysis for
knowing about different factors that have impact upon business.
M1 Apply a range of methods and techniques for competitive analysis to justify how to achieve
competitive advantage.
Porters five forces model will be used that can help in analysing the market condition for café.
This café provides high quality products and services so that it can attract lot of customers. A
market analysis will enable to invest in best marketplace.
The pestle analysis is a methodology that organizations use to determine the impact of macro-
environmental variables on the company's operations. It is seen below in the setting of a coffee
shop. Political- This refers to the political climate and history of the state in which the company
works. In terms of a coffee shop, the major political issue that can effect it is the COVID-19
epidemic, which led in a national lockdown, causing changes in working methods and rules, as
well as affecting companies. As a result, in today's world, the coffee shop is no longer viable.
Economic- It determines the economy's performance, which can have a direct impact on how a
firm operates. In the case of a coffee shop, any increase in the rate of inflation might effect the

price of the coffee shop's product. This might lead to a loss of clients or even a failure to attract
new ones.
• Social- This category comprises aspects that examine a market's social environment. Because
the coffee shop is one of the most popular hangout spots for millennials, demand for its offerings
may increase, resulting in increased revenue for the coffee shop.
• Technological- This category includes variables relating to technological advancement that
may have an influence on industrial operations. The coffee shop makes use of technologically
sophisticated technology, such as coffee machines, to provide expanded services to its
consumers, resulting in a better customer experience.
• Legal- It encompasses both internal and external variables, as well as legislation that may
impact the corporate environment. The coffee shop must adhere to the food regulation standard
in order to avoid any unpleasant penalties as a result of non-compliance. It must ensure that all
laws and policies are followed prior to its implementation.
• Environmental- This category contains elements that may be impacted by the environment.
When delivering products and services to consumers, the coffee shop must consider the
environment to ensure that no harm or risk is caused to the environment. The coffee shop's
machinery and equipment must not produce additional carbon, which might affect the
environment. As a result, it can be concluded that the coffee shop must consider all of these
external elements in order to operate successfully in the business environment. It must make
judgments while keeping macro environmental concerns in mind.
M2 Discuss the strengths and weaknesses of the new venture and determine areas of risk.
 Strength is the ability to enhance the profits and money
 Weakness is loss of investment if business idea fails
Strength and weakness for the new venture are assessed before for managing the work
effectively. There are different ways for managing business efficiently for conducting all
activities properly.
D2 Critically discuss supporting costs and timescales required for acquiring and/or developing
the skills and capabilities of a launch team
It is essential for the business venture that they are able to achieve needs and demands of
customers. There is need of conducting strong researches so that it can make profits and money.
It is essential to manage the restaurant functioning.

P2 Tangible and intangible resources which required by chosen company for launching new
venture
There are two types of resources which are used while starting a new business. Some of the
resources are those which are tangible and can be seen by clients and customers. On the other
hand, intangible resources are those which can only be felt. It is essential for an organisation to
to develop both the resources and provide them equal importance in order to retain customers.
Both of these resources are described below-
Tangible resources- these are known as those assets which can be found in physical form.
This includes land, machinery, buildings, table, etc. The tangible resources of coffee cafe town
are useful in attracting and convincing the customers for spending money on services and
products. The tangible resources are helpful for this café in order to cook and prepare good
products.
Intangible resources – these are those resources or assets which do not exist in physical
form. This concept of trademark, patent rights, copyrights, franchise rights, etc. Intangible
resources cannot be physically touched by any individual. The intangible resources of coffee cafe
town includes better quality food, pleasant environment, life music, reading section, etc.
TASK 2
P3 Produce a credible proposal to launch a new venture in chosen organisation
There is need of conducting an effective research before starting anew business venture. It
is important for the management that is helpful for reaching target customers effectively and
making them to evaluate the effectiveness of new product or service. The proposal for the Cofee
café town is mentioned below:-
Executive Summary Coffee Cafe Town is a new business venture that is going to be
started in Italy. This will provide effective products and services
to customers. Market analysis is conducted for managing the
target audience effectively and developing strong strategies for
attracting customers. Market strategy is developed for having an
effective promotion as well as advertisement for attracting

customers.
Company Description Coffee Cafe Town is known as a business venture that is
launching in Italy. This is a new café which will provide various
products like gourmet coffee,flavoured coffee, iced coffees,
healthy breakfast, Italian and continental dishes, espresso, hot
chocolates and many more. Other type of services provided in
this café are live concerts, books and magazine area, etc. There
are various type of activities which are helpful for customers to
enjoy their visit. There is also a section in which children can
play games and enjoy.
Market Analysis Coffee Cafe Town conducts the market research for knowing the
target audience effectively and analysing whether target
audiences are easily attracted or not. It is essential or the
marketers to conduct research like SWOT or PESTEL that helps
in knowing what are the factors that have to be considered
before starting new business. SWOT analysis provides
information about the strength as well as weakness of this café
to enter market of Italy. On the other hand, PESTEL analysis is
helpful in knowing what are the factors which are considered
while managing the activities of Coffee Café.
Marketing Strategy Coffee Cafe Town is involved in framing business plan and
making strong marketing strategies. These strategies are helpful
for managing the café business in proper manner. It is important
to prepare proper marketing strategies so that work is done in
proper manner and business is done effectively. There are strong
and proper plans so that they can meet the needs and demands of
customers. It is essential for the new business venture to have
effective and strong plans so that organisation is able to achieve
profits and success in less time. Promotion is the key for
reaching potential customers in less time. Thus, when starting a

new café, it is seen that new marketing strategy is developed.
Financial Status Analysing financial status of a company is very important before
launching a new venture in any country. Coffee Cafe Town do
financial analysis of their company before launching in Italy for
it they evaluate different factors such as financial position,
viability so that they able to know their economical conditions.
The Coffee Café Town can take money from ban loan. The fund
estimated for Coffee Café Town is £100,000.
P4 Evaluate the skills and capabilities required to launch a new venture and how a person can
acquire or develop it
There are various type of capabilities and skills which are used by buy the new business owner
while establishing a business. There are few capabilities and skills which can be learnt but on the
other hand there are some skills which are inbuilt among an individual. This should be used
properly in order to to work effectively. When the business person starting coffee café town is
starting to launch this new café, there is need for having some expertise skills so that work can
be done properly. Some of the skills are mentioned below-
 Marketing skills - new business venture requires and effective and strong marketing so
that new customers can be attracted towards the service or product. It is essential for the
new cafe to launch new marketing strategies so that it is easy to reach potential
customers. The owner of coffee cafe town is using his marketing skills for formulating
various strategies like segmentation targeting customers and positioning of service in
proper manner within market. In order to develop good marketing skills, owner of this
cafe can attend video sessions which provide lessons for digital marketing and
positioning of service in market.
 Public speaking skills - when there is need for succeeding in business, it is required that a
person should have good public speaking skills. This includes having a positive attitude
and this person must be good at interacting with new people. In context of coffee café
town, the new owner should know how to communicate with others and tell them what

are the facilities and services that will be e provided to customers in that café. The skills
can be developed by conducting sessions for public speaking and also telling various kind
of stories to other people.
Capability
 Capability for identifying strength and weakness- when the business owner of a company
is starting a new business, there is need of identifying strength and weakness so that it is
easy to develop strategies and making effective plans for success. The owner of coffee
café town must have capability of analysing strength as well as weakness so that he can
make effective suggestions for increasing profitability and growth of café.
M3 Explore the range of skills and capabilities required for the launch and critically assess how
they might be acquired or developed applying appropriate methods.
Leadership and motivation: Are users able to inspire and encourage people to follow your
lead and carry out their vision. There are different people on whom to rely on by businessman to
get through the early stages of your company – there is far too much for doing around your own.
It is taken care that is he able to communicate well in a variety of situations. There are different
people who have to be managed.
D3 Critically evaluate the different promotional activities to support justifications.
Promotional activities will include social media marketing. This is one of the best and easiest
way to manage the promotion for coffee café bar. Some of the promotional activities for new
café are mentioned below -
 ELECTRONIC NEWSLETTERS - Send out email newsletters to your consumers on a
regular basis to keep them informed. Include menu updates as well as helpful cooking
suggestions and special deals.
 SURVEYS OF CUSTOMERS - It is critical to obtain client feedback. This allows you to
determine how satisfied your consumers are with your offerings. Use the surveys to learn
more about your clients' tastes and to inform them about new menu items.
 CONTESTS BY EMAIL - Encourage your subscribers to read your emails. Inform them
about a future reward program that will only be publicized via email.
 OCCASIONS DURING THE HOLIDAYS - Holiday offers should be communicated
through email. This will keep your clients interested in your cafe's offerings. Third,
introduce a market that is both imaginative and inexpensive.

TASK 3
P5 Different promotional activities and channels that will support launch of the venture and
justify it
Whenever new business is started, there is need for promoting the new service or product
effectively so that more number of customers will be attracted towards new product or service. A
new business should promote its activities and let audience know what are their plan and which
kind of product or service there offering. At the initial stage, new companies can use any right
kind of promotional channel that they can use for reaching potential customers. Some of the
activities of promotion which can be used by coffee café town are mentioned below-
 Social media offers- it is known that most of the people nowadays are using social
media. This is a best way to attract lot of potential customers towards the new product.
Coffee cafe town can offer special kind of contest for games on social media which will
help the users to to grab a free meal. In this way, it will be easy for the new café to attract
lot of customers.
 Website promotion - customers generally visit website before going to a particular cafe
or restaurant. this will help them in knowing all the facilities and services which are
provided by the café. Thus, website should be designed in proper manner and it must
include all the the facilities and services provided by café.
 Print media promotions – this is also an effective promotional activity which will help in
reaching numerous potential customers. A new business venture can be promoted by
using posters, brochures, newspaper ads, etc. This can reach customers of different age
group as well as profession. All the people who can visit café for their leisure time will be
attracted by using this strategy.
P6 Develop an appropriate promotional activities plan for both launch and pre launch of new
venture
Coffee Cafe Town design appropriate launch and pre launch plan which enhance their
business profitability, which are describe below:-

Pre-launch process:-
 Market Analysis:- In this step, it is seen that what are the various strategies and plans
for developing opportunities within market. This consists of managing and dealing with
various plans and procedures that will help in attaining organisational goals. It is
important for the organisations to have proper planning before stating new businesses.
 Product design and positioning:- The owner of Coffee Cafe Town design plans and
strategy for development of products in which they decide products and services which
is going to offer to audiences such as variety of coffee, healthy breakfast, library, playing
zone and many more. They also decide place to display their products and services
which convince peoples.
 Design promotional activities/ Brand development:- Coffee Cafe Town select
appropriate promotional media which help them to enhance their business and
awarenesses. Through this respective company owner do brand promotion and create
brand awareness in market and between audience by using several promotional media
such as social media, print media etc. Implementation:- Coffee Cafe Town implement their strategies regarding market
analysis, promotions, product deciding and so on which they design regarding to achieve
their goal and objectives in effective manner.
Launch process:-
 Product analysis:- It is seen that Coffee Cafe Town has to evaluate a proper product
analysis for satisfying needs and demands of customers.
 Evaluate responses:- In this step, there is analysis of target audience and evaluation of
venture for making and implementing effective plans that will be helpful in reaching
success in business.
 Conduct modification:- In this step, if there is any need of doing changes within café,
then these are executed.
 Execution:- In this step the administration of Coffee Cafe Town , there is execution of
proper plans and strategies that are analysed for achieving goals of business.

P7 Produce an itemised monthly cash budget for pre-launch phase of the venture and first 12-18
months preceding launch of venture and M4 Evaluate an appropriate promotional activity
plan for both launch and pre-launch.
Pre launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 10000
Credit sales 3000 3000 3000 4500 1500 3500 4200
Total inflows 13000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800
Variable : Direct material 500 300 400 300 150 500 300
Total outflows 2500 2800 1900 2300 1350 2000 1100
Net cash flow 10500 200 1100 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9000 11400 11550 13000 16100
August
Septembe
r October
Novembe
r December Jan Feb
1000 2000 800 1200 1500 2600 3000
1000 2000 800 1200 1500 2600 3000
200 300 100 600 300 2000 2500
400 500 100 100 400 300 300
600 800 200 700 700 2300 2800

400 1200 600 500 800 300 200
16100 16500 17700 18300 18800 19600 20900
16500 17700 18300 18800 19600 19900 21100
Mar Apr May June July
3000 4500 1500 4500 7200
5000 4500 1500 3500 4200
1500 2000 1200 1500 800
200 300 150 500 300
1700 2300 1350 2000 1100
3300 2200 150 1500 3100
21100 22400 24600 24750 16250
24400 24600 24750 26250 19350

M5 monthly cash budget.
Post launch cash budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 11000
Credit sales 1200 2000 8500 3000 5000 6500 1200
Total inflows 12200 2000 8500 3000 5000 6500 1200
Cash outflows
Fixed : Equipment’s 2500 1000 1500 2000 2100 1600 1300
Variable : Direct material 3500 300 250 100 100 500 100
Total outflows 6000 1300 1750 2100 2200 2100 1400
Net cash flow 6200 700 6750 900 2800 4400 -200
Opening balance 0 6350 5850 11600 11950 15750 20250
closing balance 6350 5650 12600 12500 14750 20150 20050
August
Septem
ber
Octobe
r
Novemb
er
Decemb
er Jan Feb Mar
3200 2500 8200 1250 3210 1200 5000 2500
3200 2500 8200 1250 3210 1200 5000 2500
600 600 500 3000 500 6000 2500 1500
150 450 450 1500 500 3000 300 200
750 1050 950 4500 1000 9000 2800 1700

2450 1450 7250 -3250 2210 -7800 2200 800
19750 22100 22650 30100 28850 30860 32160 32360
22200 23550 29900 26850 31060 23060 34360 33160
Apr May June July
4500 3500 3500 4200
4500 1500 3500 4200
2000 2500 3000 400
250 360 250 700
2250 2860 3250 1100
2250 -1360 250 3100
33660 35860 36010 37510
35910 34500 36260 40610
It is concluded from the above budget that the idea for establishing new business venture
is a good option as it is beneficial for making profits and money. From the above budget, it is
said that all the organisations are having a good option as the liquidity is apt. According to the
outlay and liquidity, it is seen that this is a good option for them to establish business. Cash
budget of both the situation such as pre launch and post launch is compared then decision seems
to be appropriate.
Legal Structure:-
It is defined as the manner in which business is established and there is a set legal structure
for managing the work. The type of business organised in context of Coffee café Town are
mentioned below -

 Partnership: It is the type of business in which there are two or more organisations
which come together and start a new business. The business partners are involved in
managing the business activities effectively.
 Sole Proprietorship: This is defined as the way of managing the sole trade and
individual entrepreneurship.
Legal structure that Coffee Cafe Town can use is Sole Proprietorship. The business can
use this type of legal structure so that company can share profit and liability.

D4 Create a pre- and post-launch monthly itemised cash budget based on financial resources,
including key budget categories and sub-categories, with contingency measures for
anticipated outcomes.
CONCLUSION
Form the above discussion, it is concluded that for any business men to start a new
business is easy. There is need of analysing the business environment and market before starting
a new business venture. There are various resources like tangible and intangible so that it is used

for running an effective business. There are different skills and abilities that are needed for a
person to start a new business. There are different type of legal structure which can be followed
by business ventures. This is helpful in managing business activities in effective manner.

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