Venture Creation

This assignment discusses the concept of new venture creation in the hospitality industry, focusing on the case study of Sky-fall restaurant. It covers topics such as the business description, marketing plan, financial plan, and industry analysis. The assignment also explores the target market, promotional activities, pricing strategy, and funding sources for the venture.

Venture Creation

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
Marketing plan ................................................................................................................................5
Financial plan ..................................................................................................................................9
Management team and company structure ...................................................................................12
CONCLUSION .............................................................................................................................14
REFERENCE.................................................................................................................................15
INTRODUCTION

New venture creation refers to fostering of new & latest ideas with some innovation and
creation at marketplace. This aids country for developing the economy by offering number of
latest goods so that living standard of people will get improved as well as it offer job opportunity
to individuals and that reduces the rate of unemployment. Apart from this it also gives
contribution to national incomes (Villani, Linder and Grimaldi 2018). The following assignment
is based on new venture which is related with the hospitality industry name as Sky-fall
restaurant. As per current scenario this is widest and growing sector. In context of this, the
mission, vision, USP are describe in this report. Also industry analysis in order to determine the
recent trends and opportunity for company. Lastly, it covers explanation of market analysis in
order to decide pricing strategy as well as for determining the competitor of hotel.
MAIN BODY
Business description
Sky-fall restaurant tends to an hospitality industry which is very broad category within
the service industry and offers services such as lodging, food, drink services, event planning,
theme parks along with transportation. In which the Sky-fall is a new venture related with this
hospitality industry and offers foods and drinks to their consumers. This is very attractive
ambience and offers delicious food to guests (Stayton and Mangematin, 2019). The interior of
this restaurants is fabulous that could grasp more consumers by which the profitability and sales
ration of this restaurant can increased.
Business name
The name of new venture is Sky-fall this is because in this restaurants there are number
of sprinklers is used in order to make attractive as well as to make feel guest comfortable by
providing such kind of facilities.
Opportunity & needs
Opportunity for this new venture could that they are offering product made up of organic
raw material and that is not offered by other restaurants. So it become opportunity for them to
grasp those consumers who are interested in consuming such product or foods. Additional now a
days most of consumers prefer eco-friendly services in order to maintain sustainability of
environment so they understood this needs of consumers and offers services accordingly.
Description of product/services

The services that is offered by this new venture is delicious foods and drinks which is
made of organic raw material as they itself carries out organic farming. As well as they offer
number of other services also to their consumer such as roof top, indoor seating, live sports
screening, table booking recommended, live music, full bar available for above 18 only,
nightlife, home delivery service all these services are offered by this venture to their consumers.
This could become a factor which can influence more consumers towards their offerings.
Unique benefits intellectual property
Unique selling point of this business is that they offers eco-friendly services in affordable
price as well as provides organic food to consumers as they itself carries out organic farming.
This help them to create capture market by grabbing more consumers (Wright, 2018).
Additionally, this provides the opportunity to create competition or others players of market.
Business model – It is generally a new venture which is started in this assignment as it is
only a imaginary not a real based. This is carried with the aim of understanding the whole
concept of new venture. This is started with the aim of growth of economy. In consist number of
departments for the smooth running of business operation according to the requirements and
needs of consumers.
Marketing plan
Marketing plan refers to a report that mainly outline the marketing strategy for future.
Generally it includes an overview of business marketing along with advertising goal. It consist a
discussion about current marketing position of business. Marketing plan is a list of action
without sound strategic foundation. Tit is a part of overall business plan. Solid marketing
strategy is the base of well written marketing plan so that goal will be attained easily.
Chosen market
The chosen market or area for this restaurants will be the isle of sky. It is connected to the
scotland's northern coast of bridge. This has been analysed that it is most beautiful place of
destination where number of tourist visit. As new venture offers number of delicious foods made
up of organic raw material along with beverages to their consumers. This help restaurants owner
to generate more revenue and help nation in enhancing the economy of nation as well as help
itself also in order to make profitability and image of restaurants.
Market research

This tends to a process in order to determine the viability of new services or product that
is offered by the company with the help of investigation& research conducted with potential
consumers directly. This become help full for skyfall restaurants in order to identity the potential
consumers as well as target market (Kuratko and Hornsby, 2017). As well as by taking feedback
from consumers or visitors related with the services or goods they can improved their weakness
and took advantages of opportunities. In context of this they carries out market research in order
to know the existing items of foods that is offered by other restaurants. Entities of this venture
take opinion from number of visitors related with the opening and closing of this restaurants at
the Isle of Skye. This plays vital role in order to start the new venture at new location as it is very
risk to influence new consumers. Additionally, they communicate with other tourist who visits
The isle of Skye. Their main aim is to offer delicious foods made up of organic products to
visitors so that they will attract more consumers towards their offerings. For the same they,
provides offers also to their consumers.
Industry analysis
Industry analysis is a business function that is adhere by the business entities in order to
determine the business environment as well as about existing competition. This aid business unit
to understand the different economic situation of marketplace as well as how they combat with
the competition in order to gain competitive advantage (Sklaveniti, 2017). In order to carry out
industry analysis, the new venture uses porters five forces model. This is a model used for
evaluating the competitive position of firm. Below mentioned is porter five forces model in
context of new venture:
Intensity of industry rivalry- In context of sky-fall new venture, it is related with the
hospitality industry and there is huge competition in this industry. In this industry competitors
are striving to gain large market share within same market as compare to other players by
maintaining the profit flow. It has been analysed that the intensity of industry rivalries for this
venture at Isle of Skye is moderate as they are providing dishes made up of organic product.
Which is nor offer by the other players of market. So this strategy will be helpful for them.
Threat of new entrants- Setting up of new venture required a large investment but in such
industry it is moderate so the threat of new entrant is high. For the same, if Sky-fall restaurants
maintained the quality of product then this threat become moderate. As it is not possible for new
entrant to gain and attain the market shares of well known firm.

Bargaining power of suppliers- suppliers under such type of sector consist companies
which provides raw material to the entities of restaurants. In context of new venture, sky-fall
restaurants, they itself carries out organic farming so the bargaining power of supplier for them is
low (Bruton, Su and Filatotchev, 2018). If the number of supplier will increase that bargaining
power will decreases and vice versa but in present situation they itself carries out farming so they
require only few raw material for for that it is low.
Bargaining power of consumers- Bargaining power of consumer related with the new
venture is low because of their offering made up of organic product. As well as interior of this
restaurants is very much attractive and that influence more consumers. Additionally, they
provides number of offer to their consumers which help them to make more profit. From all
these bargaining power of consumers tends to low for this venture.
Threats of substitute services/ goods- Restaurants sector has number of entities and that
make easiness for consumer to go with other brands or services. Low switching cost is one of the
factor that make consumers to shift their brand from one to another. In context of new venture, if
they offer bad experiences to their consumers then they may shit their choice.
Selected target market
Target market is a group of consumers within serviceable market of business. Basically
target market is a subset of whole market it is carried out on the basis of some factor such as
geographic, behavioural, physiography and demographic. For which they carries out effective
marketing strategy in order to reach out all consumers as well as to increase the market shares
(Anwar, Rehman and Shah, 2018).
The selected target market for new venture, Sky-fall restaurant will be visitors and those who
prefer to have food made up of organic products. As well as they target 15-10 years old age
group for their restaurants who wish to visit The isle of Skye destination place.
Channels to reach out consumers/ promotional activities-
The marketing channels refers to mode by which awareness about product or services are
carried out or in order to transfer ownership of goods from production point to consumptions. It
has been analysed that there are various modes by which companies can carried out promotion
about their services such as personal selling, direct selling, digital marketing, social media
marketing, PPC, SEO etc. all these are considered as the best tool for promotion and for
developing marketing strategy (McGee and Peterson, 2019). In present times most of the

companies are using digital marketing for promoting their services and same goes with the new
venture, sky-fall restaurants. It is a component of marketing and mainly use online and internet
based techniques. For example mobile phones, computer, desktop etc. with the help of these tool
company can promote about services. Promoting about services helps company to create
awareness to consumers related with the restaurants. In digital mode of marketing, the social
media is most effective promotional tool and with the help of this, sky-fall entities can promote
about their offering across the world within a small spam. They can communicate with visitors
with this as well as provide them information related with foods & beverages, location, cost and
about other offerings.
Consumer policies & behaviour
Consumers of new venture sky-fall is tourist of different age group profile. The location
of this venture is the Isle of Skye and that is a destination place for all types of peoples either
children, students business person or others. In which students influence by best interior with
delicious food at affordable cost (Schjoedt and Craig, 2017). As well children affects the buying
decision of parents. They provides wi-fi also for business person in order to carry out work while
eating.
Evaluation of competition
When two or more than that part strives for common objective then competition arises.
This tends to an activity related with the wining and gaining of something by establishing or
defeating the superiority over others. This is one of the most useful tool in context of
management as well important to create plan about marketing strategy.
Sales process
The selling process that can be used by entities of new venture, sky-fall can be internet
media marketing, it is one of the best and better sources of advertising. By taking advantage of
such types of tool, restaurants will able to explore their potential consumers. In which they can
ask to consumers for filling short form as a lottery ticket for wining the chance of free meal
(Shankar and Shepherd, 2019). Once information is collected, new promotions, updates,
marketing endeavours by email is carried out. Developing profile on social networking is one of
the best way of marketing.
Pricing strategy

In context of current situation, sky-fall is a new venture and at initial level they needs to
set cost of services according to the competitors as well as need to follow low cost strategy of
differentiation. As it plays significant role for making profit related to dishes and items included
in menu. By which restaurants can take benefits and make better credits with suppliers as well as
also update menu for seasonal advantages. In relevance to this, the pricing strategy of sky-fall
restaurants will be Cost-plus pricing strategy. In such kind of pricing strategy, selling price is
determined by adding a specific markup to unit cost of goods. This is a common pricing
strategies that is used by the restaurants. The owners of restaurant considered all cost from plate
of food serving to wages of employees.
Financial plan
Source of funding
Funding tends to collection or gathering of resources related with the finances and that is
usually in form of money. A business unit cannot run their business without funding as it require
to make function of company smoothly and that is known as business funds. In relevance to this
there are number of sources of funds by which company can invest on their business operations
(Baron and Markman, 2018). It comprises credits, capital, donations, grants, subsidies & taxes.
With relevance to this two of sources of funds are as follows:
Bank loan- From this a borrower can borrow money for a particular period of time as
well as with an agree repayment of loan. In which the repayment of amount depends on size and
duration of loan for a given rate of interest. This is considered as a best & suitable idea of raising
funds in order to start the business and the same goes with sky-fall restaurants.
Personal saving owners- This is another mode of raising funds. In this an individual can
used their personal saving if they have in old 401(k) and contributes into your business for start-
up. This become beneficial for businessman.
So both option are viable for the new venture in order to start-up the business.
Cash flow forecast-

Cash receipts
Cash in hand 1500
Investment 5000
Estimated sales 35000
Loan 8000
Total cash receipts 49500
Cash payments
Fixed cost
Interest on loan 1500
Rent 3000
Insurance 1650
Salary of employees 10000
Variable cost
Electricity cost 600
Raw material cost 3500
Wages 1500
Total cash payables 21750
Cash flow 27750
Profit & loss statements
Profit and loss statement
sales 35000
Less: cost of sales 2500
Gross profit 32500
Less: operating cost
Fixed cost
Interest on loan 1500

Rent 3000
Insurance 1650
Salary of employees 10000
Variable cost
Electricity cost 600
Raw material cost 3500
Wages 1500
Net profit 10750
Balance sheets for one year period
Assets
current assets
Cash 1500
Investment 5000
Debtors 500
Fixed assets
Machinery 12500
Total assets 19500
Liabilities and equity
Current liabilities
Creditors 500
Long term liability
Loan 8000
Total liabilities 8500

Equity
Reserves 10750
Share capital 250
Total liabilities and equity 19500
From above mentioned/ forecasted table, it can be said that the company will gain net
profit of about 10750 pounds with total assets of 19500 & total liabilities of 8500 pounds. So the
forecasted results give positive outcomes and shows that business will be in profit.
Contingency plan
Contingency plan is devised with the aim of an outcome other than the usual plan. It
includes risk in it and sometimes it is called as a B grade plan as it works as alternative actions, if
the things does not go according to the planning.
Requirement of contingency plan in restaurant- This tends to a process of food business
in order to recover effectively when the planned event goes failed. It is made up of three basic
components, i.e. being prepared, responding to an event, post event recovery (Symeonidou,
Bruneel and Autio, 2017). In context of new venture, their entities need to devised contingency
plan in order to recover event or planned easily with alternative.
Growth aims
The growth aim for new venture, Sky-fall is “to raise the growth rate of restaurants by 7
% within 1 year”
Break even
BEP calculations:
Variable expenses 5600
Fixed cost 16150
Sales 35000
Contribution sales-variable expenses
29400

PV ratio Contribution/sales*100
84 %
BEP in pounds Fixed cost/PV ratio
192 pounds
Management team and company structure
Detailed of ownerships & management of business
The new venture sky-fall is carried out with partnership of two peoples as limited
partnership tends to limited liability partnership. Reason of partnership is, it includes less risk
and require low cost for start-up. As well as the capacity of borrowing is also greater in
partnership. Part from this, they carry out their organic farming itself for proving foods made up
of organic raw material so that more consumer get influence towards their services or offerings.
From this they, reduces the load of buying of raw material.
Management of business refers to planing, organising, controlling and staffing of all
resources of corporation so that profitability will maximized by effectively & optimizing use of
resources. For which the owner on new venture required to hire some candidates so that they will
able to carry out all these function and operation of restaurants (Dai and et.al., 2017). It mainly
consist three main areas that are kitchen where food is being prepared, the food services- where
services related to food offered to consumers and the last is bar or lounge which provides live or
recorded entertainment along with sales of alcoholic beverages & food.
Roles of team members.
With relevance to current situation, the new venture is a small restaurants and that
required less number of candidates in order to operates function function. The chosen venture is
hospitality based and in this the roles of team members of venture are as follows:
Roles of kitchen members- Kitchen includes chief, & cooks who are responsible for
preparing the foods, pantry persons- who prepare foods for cooking, as well keep an inventory of
stock. Stewards who are obliged towards cleaning & maintenances of kitchen.
Food services- It includes personnels related with the dinning room waiters, cocktail
waiter, bartenders, hosts, banquet and bus persons. They all are individual responsible for

serving means & beverages. In addition, shows table to visitors and maintain the cleanness of
dinning room.
Bar & lounge- It tends to a range of size from small club to vast dance entertainment
complex. As the new venture is small and provides entertainment by live performance. For this
they required those peoples who have knowledge of singing and playing of instruments.
Role of general manger – Responsible for day to day operation, including hiring, training
and overseeing as well ensure about maintenance in proper operating condition when restaurant
is open.
Front of house staff- responsible for dining area including setting up services, waiting on
consumers and interacting with them.
Executive chief- Responsible for back of house operations. It includes hiring and training
of kitchen staff, creating menu item.
Required skills, qualification and training
In context of current situation, human resources manager of this restaurants need to
recruit that candidates who have knowledge related with the hospitality services, as well as have
skill related to the same and the qualification that is required for this is BHM ( Bachelor in hotel
management) & MHM ( Masters in hotel management) in order to service services effectively to
consumers. After selecting and analysing the skill of hired employees, it is important to offer
training and development session to them related with the role & obligation or task of restaurant
so that they will able to satisfied their visitors and able to prove them better experiences.
Additionally need to recruit that candidate who have excellent consumer services skills,
commercial awareness, flexibility, good interpersonal skills, communication skill, problem
solving kills, team work skill and organisation skill (Burns, 2017). Qualification required for
working in restaurant is knowledge about food production, servicing, managing consumers and
many more other qualification.
CONCLUSION
From above discussed report it can be concluded that the new venture could help in
growth and development of economy. In present report, sky-fall restaurants is started at the Isle
of Skye, which is a destination place. This restaurants offers product which re made up of
organic material as well as Eco-friendly product to consumers in order to gain competitive
advances. For the same, with the help of porter five forces, entities of restaurants will able to

determine the competition edge and position of itself. For starting a business it is vital to carry
out market research, industrial analysis, finical forecasting and formulate strategies for smooth
running of business operation.

REFERENCE
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