Launching a New Venture: Cafe Kulture

This report discusses the process of launching a new venture called Cafe Kulture, including target markets, competitive analysis, tangible and intangible resources, and promotional activities. It also provides insights into the skills and capabilities required for launching a new venture.

Unit 28

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis....................................................................................................................1
P2. Specific tangible and intangible resources for new venture................................................3
TASK 2............................................................................................................................................3
P3. A credible proposal to launch a new venture........................................................................3
P4 Assessment of skills and capabilities for launching a new venture.......................................5
TASK 3............................................................................................................................................6
P5 Different promotional activities used for launching new Cafe..............................................6
P6 Develop an appropriate promotional activities plan for both launch and pre-launch............7
TASK 4............................................................................................................................................8
P7 Monthly cash budget for the pre-launch phase......................................................................8
P8 Applicable legal form for the venture..................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Launching a new venture is defined as an economic activity which is undertaken by by an
entrepreneur with an aim to fulfil market need or solving an social or economic issue that are
being facing by a society. An entrepreneur is a passionate individual who willingly undertakes
risk in order to develop innovate services and products to customers. They also play key essential
role for a country economic growth (Younger and Fisher, 2020). Main aim of an entrepreneur by
launching a new venture is to provide immense level of satisfaction to customers while offering
them innovative and high quality of products and services.
Present report has been conducted on, new business venture “ Cafe Kulture”. This cafe
will provide customers with different types of exotic range of drinks, coffee, snacks, bakery
items shakes in order attract their attention. In this report formative discussions has been made
on new venture competition and target market. In addition to this report also includes,
informations related to the requirement in context of intangible and tangible resources. Further
discussions upon, capabilities as well as skill that an entrepreneur required to start a new venture
is also included in this report. At last legal form and promotional activities for venture is also
being discussed in present report.
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis
It has been evaluated that individuals within UK is having positive behaviour towards
cafe especially for those who offer high quality services in affordable price range. By taking
advantage of this market opportunity Cafe Kulture entrepreneur will offer qualitative products
like flavoured shakes, coffees, bakery items and more to customers along with free delivery in
the range of 3 kilometres of outlet. It has been evaluated that in order to gain attention of large
base of customer respective cafe will offer their products and services at cost effective price
basis:
Target market:
Cafe Kulture have mainly targeted young individuals of London, as they mainly prefer to
visit cost efficient cafe with colleagues, friends, acquaintances for entertainment and fund.
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Respective cafe will offer different type of food options to them as to attract them towards entity
offerings.
Competitive analysis:
Evaluation of competition in respective industrial sector plays important role for an
organisation as it will allow them to develop strategies against them for more competitive
advancements. By undertaking advantage of competitive analysis Cafe Kulture owner can
acquire information of rivals strategies and can further develop policies against them for more
profitability. In order to have effective competitive analysis entrepreneur of Cafe Kulture
undertakes advantage of Porter five force analysis:
Porter’s Five Forces Analysis
Porter's five force analysis is a strategic model that allows an organisation to have proper
understanding of the competitors prevailing in respective marketplace. With the use of this
model Cafe Kulture can have access of the information related to competition level prevailing in
respective industry in United Kingdom.
Competitive rivalry:
Cafe industry is facing high competitive rivalry as there are numbers of cafes operating
their business operations in UK. They are offering different type of attractive services to
customers in affordable price range. Thus to have success it is essential for Cafe Kulture
entrepreneur to provide customers with innovative offerings in competitive price range as to gain
high success.
Bargaining power of buyers:
It has been identified that there is high bargaining power of buyers in cafe industry due to
the presence of large number of cafes in UK. This makes customers with the access of different
types of options. Thus, it is important for Cafe Kulture entrepreneur to attract customers with
attractive promotional techniques and provide them heavy discounts on initial basis.
Bargaining power of supplier:
According to the evaluation it has been underlined that cafe industry in UK is facing low
bargaining power of suppliers (Domurath, Patzelt and Ganal, 2020). As number of suppliers are
high in this industry. Thus, by taking advantage of this opportunity Cafe Kulture owner can
develop strong network base through which they can negotiate price of raw material. This will
make them to serve their customers with high quality offerings in cost effective way.
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Threats of substitutes:
This has been evaluated that cafe industry is facing high threat of substitution because of
the presence of many rivals or market players. Thus, in order to overcome this threat
entrepreneur of Cafe Kulture can take advantage of differentiation strategy as to have
competitive edge over other rivals.
Threats of new entrants:
As per according to the analysis this has been defined that threat of new entrant is low in
cafe industry. As in this entities does not need high investment for entry. Thus, Cafe Kulture
owner must assure that they retain their customers with regular discounts, vouchers and high
quality food offerings as to retain them for long period of time.
P2. Specific tangible and intangible resources for new venture
In order to conduct daily basis operations or activities in effective manner it is essential
for an organisation have required tangible and intangible resources as they play important role in
increasing workplace efficiency of organisation. Mentioned below some certain for of resources
are defined in relation to Cafe Kulture:
Tangible resources:
This form of resource mainly include equipments and building. However, in relation to
Coffee Kulture important tangible resource of entity includes coffee grinders, ice machines,
microwaves, attractive utensils, refrigerator, coffee makers and more (Oprean-Stan, Stan and
Brătian, 2020). With the help of these tangible resources company will serve their customers
accordingly.
Intangible resources:
Customer relationship, patents, consumer loyalty, brand image, trademarks, brand value
etc. are included in intangible resources (Martin, Javalgi and Ciravegna, 2020). It has been
evaluated in relation to Cafe Kulture that most essential form intangible resources of entity
include goodwill, IPR and brand image, as this is a new venture which is going to initiate their
services in the provinces of UK.
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TASK 2
P3. A credible proposal to launch a new venture
An effective plan proves to be a strong element that facilitate a new organisation to make
their entry smoothly and successfully in market. Mentioned below there is a proposal plan of
new venture that include certain important aspects related to information related to subjected
industry, description of competitors and other important elements. With the help of this entity
can effectively develop strategies for higher growth and success. Mentioned below there is a
proposal plan that will facilitate Cafe Kulture to undertake advantage of efficient strategies and
policies through which they can have access of long term sustainability and profitability in
marketplace.
Executive
summary
Entrepreneur of Cafe Kulture launched their new small cafe business in UK.
In this they will serve customers with different type of exotic bottle drinks,
special coffees, shakes, products and services and more. It has been
evaluated that Cafe Kulture special coffee most important feature is that it
will be served according to personalized demand of customers. In addition to
this, company will also provide facility of free home delivery as to develop
brand image.
Company
description
Cafe Kulture will mainly conduct their business services in food industrial
sector and in small scale. This business is owned by three different partners
and share holding of each for profit and losses is divided effectively in
partnership agreement (Cloughton, 2020). This new venture will be operating
in UK and will conduct their business activities in the nearby are of college
surrounding. This place has been undertaken by company on lease as to
assure higher profitability.
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Vision
Cafe Kulture vision is “ To emerge out as one of the leading and consumer
friendly cafe of United Kingdom”.
Mission
Company is having mission in which they will ensure that customers get
satisfied in best effective manner with innovative products and services.
Along with this Cafe Culture will also serve them with high quality of
services.
Market analysis It is an essential element in which organisation have proper and effective
knowledge of market segment in which they are operating their functions.
With the help of market analysis Cafe Kulture can have information of
different factors prevailing in external market along with their impact on
business operations. In this by taking use of pestle analysis respective
business can formulate new strategies and measures to gain more
opportunities for growth and development.
Benchmarking In this entrepreneur of Cafe Kulture will undertake advantage of various
guidelines as to measure performance of employees. It will not only allow
entity to increase performance of employees but also facilitate them towards
higher productivity and satisfaction of customers.
Financial
projection
Cafe Kulture by making investment of small capital ration will initiate their
business operations. It has been evaluated that profit and loss ratio is divided
equally to all partners (Alinaghian, Kim and Srai, 2020). Along with this,
proper budget is being formulated in order to manage funds in effective
manner as to conduct cost effective operations while assuring higher
profitability.
P4 Assessment of skills and capabilities for launching a new venture
For higher success and profitability in marketplace it is essential for new business venture
to have certain form of skills as well as capabilities. These skills facilitate entity towards
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attaining more share holding in respective industrial segment. Mentioned below there are some
skills that will benefit Cafe Kulture to successfully establish their business in UK:
Leadership:
Leadership plays crucial role in an organisation, as in this process leaders are engaged in
the procedure of leading, guiding and individuals within organisation for more efficient
performance. Effective leadership facilitate Cafe Kulture to offer more satisfactory services to
customers.
Delegation:
It is essential for business owner to delegate work according to capabilities of individuals.
In relation with Cafe Kulture it is essential for owner to allot roles as well as responsibilities to
each and every individual according to their expertise and talent (Chen and Ross, 2020 ). With
this, entity can effectively enhance their workplace efficiency through which higher consumer
satisfaction can be assured. As it will facilitate individuals to perform their roles with more
effectiveness that will further lead towards higher level of customer satisfaction.
Communication skill:
It is an essential skill that facilitate effective flow of opinions, ideas and views within
workplace premises. With the help of strong and efficient communication skill Cafe Kulture
entrepreneur can make strong communication bridge within organisation through which
accomplishment of business objectives can take place in more time effective manner.
Risk taker:
This element makes an individual to have access towards more opportunities and growth. Risk
taking ability will significantly benefit Cafe Kulture owner to serve more customers while
assuring higher profitability (Razmdoost, Alinaghian and Linder, 2020). It will also allow
organisation to become leader in respective industry.
Thus, according to the above analysis it has been determined that new business owner is
required to have proper understanding of skills as well as capabilities in order to gain more
competitiveness in marketplace. Along with this efficient skills also allow entity to serve their
customers with best.
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TASK 3
P5 Different promotional activities used for launching new Cafe
Promotional activities allows an organisation to maximise their sales and profitability at
great extent as in this there are wide range of activities through which company can attract
attention of customers. In this entity can undertake use of measures like promotional techniques,
marketing tool and other elements through which purchasing behaviour of customer can be
significantly influenced. Mentioned below there are some certain form of activities that allows
Cafe Kulture entrepreneur to gain maximum number of consumer attention:
Advertisement:
This is most effectual way that allows an entity to make promotion of their services,
products and business in marketplace. By undertaking advantage of this method, Cafe Kulture
entrepreneur can promote fascinating food offerings among customer with the use of outdoor ads
leaflets, pamphlets and more.
Social media:
It is most admiring platform in today's world. Social media contains large base of
individual who spend most of their time on different platforms of social media. This acts as an
significant opportunity for Cafe Kulture entrepreneur, as with the help of this they can influence
large base of customers attention in cost effective way while assuring successful end results.
Sales promotion:
With the assistance of this measure Cafe Kulture entrepreneur can attract individuals
purchasing behaviour towards venture products and services in effective manner (Hai, Trung and
Huyen, 2020). As this they can offer attractive discounts, loyalty and referral programmes
through which they can assure retention of customers for long period of time.
Thus, as per according to above mentioned discussion it has been evaluated that by taking
advantages of wide range of promotional techniques, tools and measures Cafe Kulture
entrepreneur can effectively increase their overall sales. As promotional activities enhances
company capabilities to earn maximum profitability. Along with this, with the help of this entity
can also assure more competitive advantages comparatively to other rivals. It facilitate venture
towards higher profitability as well as long term sustainability in respective industry.
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P6 Develop an appropriate promotional activities plan for both launch and pre-launch
Promotional activities facilitates organisation to grab attention of large base of customers
towards company services and products. This makes entrepreneur to undertake advantage of pre
and post launch activities for promoting their brand in marketplace. Different types of
promotional activities in context with Cafe Kulture is being elaborated below:
Pre-launch promotion:
It included those activities that has been executed by venture owner before launching of
their new business in respective marketplace. In context with Cafe Kulture there are some certain
form of pre-launch promotional activity is being defined:
Social media:
Nowadays, social media acts as a powerful tool through which instant messages can be
communicated to large base of individuals. By taking advantage of this measure customers can
be communicated with products and services attractive features in effective manner. With the
help of this powerful measure Cafe Kulture can aware consumer about venture offerings. For this
entrepreneur can undertake use of social media measures like LinkedIn, Facebook, Twitter and
more. This will effectively facilitate business owner of respective venture to significantly gain
attention of large base of consumers at great extent and assure high success.
Launch promotion: This promotional method include those activities that duly takes place at
the time period of launch of new business venture. With the help of this organisation aim
towards retaining consumers for long time period and ensure long term sustainability in
respective industry. Cafe Kulture business entrepreneur undertakes use of some certain form of
activities while their launch promotion which is defined below:
Sales Promotion:
It is one of the effective measures in which organisation take use of attractive benefits,
discounts, coupons, loyalty programmes and more in order to attract attention of customers. With
the assistance of this strategy Cafe Kulture entrepreneur aim towards attracting attention of
maximum number of consumer in order to assure high profitability and long term sustainability
in marketplace.
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TASK 4
P7 Monthly cash budget for the pre-launch phase
Finance plays crucial role as acts as lifeblood for any organisation. This makes entities to
utilize their finance in effective manner by framing proper budget with budgeting techniques
(Lin and Varottil, 2020). Mentioned below Cafe Kulture budget is being underline for its pre-
launch phase:
Year 2020 Jan Feb Mar April May
Food Sales amount 42,152 42,563 43,526 43,568 44,124
Beverage Sales 19,751 12,451 12,456 13,452 14,528
GROSS SALES (Total) 61,903 55,014 55,982 57,020 58,652
COGS
Food 14,525 14,046 14,364 14,377 14,561
Beverage 6,515 3,113 3,114 3,363 3,632
GRAND TOTAL 21,040 17,159 17,478 17,740 18,193
GP 40,863 37,855 38,504 39,280 40,459
General and
Administrative
Workers Salaries 15,476 13,754 13,996 14,255 14,663
Management Salaries 3,400 3,400 3,400 3,400 3,400
Employer
Taxes/Benefits (15%
Wages)
2,265 2,058 2,087 2,119 2,168
Employees
Compensation (6%
Wages)
1,133 1,029 1,044 1,059 1,084
Advertisement 800 800 800 800 800
Bookkeeping 150 150 150 150 150
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Credit Card Charges
(1%)
619 550 560 570 587
Insurance 250 250 250 250 250
Legal and Professional
Fees
100 100 100 100 100
Misc. Other 250 250 250 250 250
Office Supplies 175 175 175 175 175
Rent 3,200 3,200 3,200 3,200 3,200
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P8 Applicable legal form for the venture
Legal structure is a most important aspect that facilitate organisation to perform their
business operations in lawful manner (Asamoah and et. al., 2020). By taking advantage of wide
range of legal structures Cafe Kulture can conduct their functioning:
Sole proprietorship: In this legal structure, business operations is being owned, run and
managed by a sole individual. Along with this, they are only responsible for profit and losses.
Partnership: Within this, there are two or more than individual who are associated
through a partnership agreement. In this they are responsible for losses and profit according to
divided ratio.
Thus, as per according to the above mentioned analysis it has been evaluated that
entrepreneur of Cafe Kulture by undertaking advantage of sole proprietorship can perform their
operations in effective manner. In this they are sole responsible for profit as well losses borne by
venture.
CONCLUSION
According to the above mentioned evaluation this has been concluded that, an
entrepreneur undertakes advantage of their skill, capabilities, creativeness and innovativeness to
bring something new and unique in marketplace. Main aim of an entrepreneur is to serve society
and customers with best. However, there is formative requirement of tangible and intangible
resources by an entrepreneur in order to conduct their business operations. Along with this by
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taking advantage of strategies or models like Porter Five Force analysis extent of competition
prevailing in respective industrial sector can be successfully determined. Further it has been
evaluated that y taking use of attractive promotional techniques entrepreneur can attract attention
of large base of customers. All these measures duly facilitate an entrepreneur to assure maximum
success, profitability and long term sustainability.
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REFERENCES
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Cloughton, C., 2020. Investigating the link between innovation and mainstream adoption: How
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Ataei, P., Karimi, H., Ghadermarzi, H. and Norouzi, A., 2020. A conceptual model of
entrepreneurial competencies and their impacts on rural youth's intention to launch
SMEs. Journal of Rural Studies.
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Lin, L. and Varottil, U., 2020. Venture Capital In China And India: Does Business Form
Matter?. Forthcoming, Vanderbilt Journal of Transnational Law.
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