Launching a New Venture: Cafe Kulture

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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