Introduction to Business: BGH Oil Start-Up Plan & Market Analysis

This report outlines a business plan for "BGH oil," a startup focused on CBD oil products. It covers various business structures, selecting a sole proprietorship due to its suitability for a single-owner startup. The report includes a PESTLE analysis, examining the macro environment's political, economic, social, technological, legal, and environmental factors affecting the business. A SWOT analysis assesses the company's strengths, weaknesses, opportunities, and threats. Porter's Five Forces model is applied to analyze the micro environment, focusing on competition, buyer power, supplier power, new entrants, and substitutes. The report concludes with recommendations for business development, emphasizing strategic management and analysis of micro and macro factors.

Title Page
Introduction to Business
Assessment 2 – Individual Report
Start-up Business Type & Business Name
Student Name
Student ID number
Your Lecturer’s Name
Your Cohort /Batch number (class code)
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Table of Contents
Introduction...........................................................................................................................................3
Overview of the Report.....................................................................................................................3
Background of the Company.............................................................................................................3
Main Body (Business Plan).....................................................................................................................4
Different Types of Businesses............................................................................................................4
Your Business Structure....................................................................................................................4
Macro Environment...........................................................................................................................4
Micro Environment............................................................................................................................4
Impacts on your Business..................................................................................................................4
Conclusion.............................................................................................................................................5
Overall argument summary...............................................................................................................5
Recommendations.............................................................................................................................5
References List.......................................................................................................................................6
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Introduction
Business means the process which contains organization and enterprises
making entity engaged within commercial, industrial and professional activities. This
makes profit and revenue generated through conducting business related activities
more effectively. There are various kinds of businesses which conducts through
applying appropriate strategies within them. They are helpful in making business
performed with more effectiveness. Also business has various element which makes
management of business activities done in effective way. In this report new business
idea has been taken. Also PESTLE analysis and SWOT analysis has been covered
in relation to micro and macro factors of business. Further, porters five force in
relation to micro environment. In the end of report impact over decisions making has
been understood in more effective manner.
MAIN BODY
Background of the Company
The new business that has been taken is “BGH oil” within which CBD oil has
been used that has been produced out of cannabis and has lot of potential form
business aspects. In this report various aspects related to different kinds of business
organizations has been covered with business structure.
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Main Body (Business Plan)
Different Types of Businesses
If an and individual has started new business it is required to make acknowledgement
developed over business structure. The kinds business that has been selected in order to commence
has tendency over impacting payment of taxes, personal liabilities, paperwork that must be filed as
well as the ability to raise the funds. The following is the discussion on different types of businesses:
Sole proprietorship: These are those business organizations that has been owned by single owner.
This is an unincorporated organization which is used for commencing new business(Kellermanns and
et. al., 2016). It is referred as simplest form of business organization helping in conducting business
by providing them with legal and financial protection to the person owning business. Also separate
legal identity for the organization and owners shares similar to be identified as business. In this all
management perspective handled by owners themselves. Partnership: These are those business
organizations within which more then two persons come together with common motive to earn
profit. There are two main types of partnership which are general partnership and limited
partnership. In general partnership an individual involves partners through assuming accountability
over debts. Under limited partnership both limited and general partners. The limited partners
involves as an investor and having control upon business with liability to pay over liabilities. The
general purpose owns and conduct business with debts and liabilities. Limited liability company: This
is one of the most effective form of business helping organization tom perform business with more
effectiveness. They hold tax benefits over sole trader ship and limited liabilities of corporations. It is
hybrid business organization which has structure allowing owners and shareholders with partners
limit there liability to protect individual assets.
Business Structure
On the basis of this discussion it has been marked out that new business that has to be set
up is “BGH oil” which is an start up business. The best suited business structure for such kind of
business is sole proprietor since it is owned by an individual and requires investment. In this types of
business structure an single owner is their and all business activities has been handled by them. Also
profit earned from business is kept by the owner and tax liability does not exists which makes
business functioning easy. (Kuckertz and Prochotta, 2018). The new business has been named as
“BGH oil”. The idea is based over selling of oil made form cannabis which has lot of health benefits
and helps in curing diseases in more effective manner. The product includes tablets, capsules, tonic
and syrups which are made using CBD oil. Products that has to be launched is named as “ revile
tables and capsules”.
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Macro Environment
Pestle analysis considered as one of the most effective management tool
which has been used by business in order to keep an eye over macro environment
factors influencing activities and performances of business. In order to set up
business in various ways external factors should be studied with there influence over
decision making. Further, the factors has been explained as follows:Political factor:
The factor is based over various kinds of policies that has been formed by
government. Influence has been created through tax policies, trade restrictions,
tariffs, political stabilities, government influence and so on. In relation to “BGH oil” its
important to follows government polices since its is an new start up business. Also,
political condition of UK attains stability creating opportunities in order to grow
business. This has happened through Brexit which create trade restrictions in UK
impacting business growth for “BGH oil”. Economic factors: It is based over various
elements of economy that are inflation rates, wages rates, cost of living, working
hours and many more. The economic growth specifically making economies creating
over range of new opportunities making business expansion possessing. If inflation
increases then demand for “BGH oil” product “ revile tables and capsules” increases
which helps in increasing profit and revenue for the organization. Social factors: In
this different kind of factors like health and safety consciousness, cultural aspects,
population growth rate and many demographics. The social trends within UK keeps
on changing which impacts business growth. Also this factors impacts expansion of
new business in case business fails to analyse these trends properly. This makes
impact created over “BGH oil” product “ revile tables and capsules” in a way that its
is new product but CBD oil has high demand in market which makes these capsules
and tables become better alternative for other medicines. Technological factors:
This is important over new business that is considered as the factors based over
technological advanced within cut throat competition(Kuratko and Morris, 2018).
Under this “BGH oil” product “ revile tables and capsules” can be popularized
through using digitalization its can reach its customers in better manner. Also shpuld
focus over contact less payment making online payment done effectively. Legal
factors: It is included any kind of law making impact done over operations and
functions of business as employment law, environment laws many more. In order to
avoid any legal issues various steps mentioned within CBD law
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In CBD oil is required to follow various kinds of laws and legislation related to
employees. Environmental factors: It is based over dealing with various kind of
environment factor which makes environment awareness created over customers.
Thus is important for CBD oil to deliver services in effective manner with
sustainability.
Micro Environment
SWOT analysis is a useful framework used to examine the competitive
position of the company. It is also helpful in the creation of strategic plan for the
business. This analysis is consist with internal and external factors where strengths
and weaknesses are considered as internal factors and opportunities and threats are
considered as external factors. The SWOT analysis for the Cup O' Joe Company is
as follows:Strengths:It has wide variety of oils which makes it more effective to
reach customers preferring oil for skincare(Mamabolo, Kerrin and Kele,
2017).Weaknesses: Competitive advantages is very high which makes sales
impacted in more effective manner. Opportunities:It may involves other oils and
edible oils items making more and more market opportunities created. Threats:
Intense price competition reflects fewer margins.
Impacts on your Business
This model is used for making identification with analysis of competitive forces
shapes within various sector and industry ascertaining strength. In relation over CBD
oils it has been discussed as follows:Competition: This is strong force for CBD oils
since there is fierce competition which exists over various competition. It makes
business of oil generated innovative idea making market competition used as
opportunity for its growth. Bargaining power of buyers: The bargaining power of
customers within the oil industry is high as lot of business sell oils having change in
there distinction. This makes customers shift to other brand as per there
preferences(Nikolopoulos and Dana, 2016). Bargaining power of suppliers: This
force have low influence over oil companies having huge number making deal to be
completed. Various organizations are present within market and there own key
ingredients which makes CBD oil have less impact over organization. Threat of
new entrants: The threat of new entrants within oil market if high as barriers for
entry is present within industry. This makes hurdle not have complex impact making
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barriers limited to entry. Threat of substitute: This high in relation over oil industry
as various alternatives are there of oil increasing day by day. It makes serum to be
an substitute for oil.
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Conclusion
Overall argument summary
From the above stated report it can be concluded that, it is essential for a
business entity to focus on certain goals and objectives. This project concludes the
importance of top level and strategic management in order to handle various
operations related to business development. The above stated report concludes the
importance of human resource, marketing and financial management for a business
entity. This project also concludes the role played by employment relationship in
development of productivity and growth of employees. This report also concludes the
significance of SWOT and PESTLE analysis in order to develop a good strategy for
facing business environment.
Recommendations
There are various kinds of businesses which conducts through applying
appropriate strategies within them. They are helpful in making business performed
with more effectiveness. Also business has various element which makes
management of business activities done in effective way. In this report new business
idea has been taken. Also PESTLE analysis and SWOT analysis has been covered
in relation to micro and macro factors of business. Further, porters five force in
relation to micro environment. In the end of report impact over decisions making has
been understood in more effective manner
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References List
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Southern African Journal of Entrepreneurship and Small Business
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