Business Plan Report: Analysis of Entertainment Centre Business

This report provides a comprehensive business plan for an entertainment centre, focusing on its establishment in London, UK. The introduction outlines the innovative concept of a multi-activity entertainment hub, aiming to fill a market gap by offering diverse activities such as billiards, bowling, and dining options under one roof. The main body of the report includes a PESTLE analysis, evaluating political, economic, socio-cultural, technological, legal, and environmental factors influencing the business. It also assesses the competitive landscape, identifying potential competitors like existing entertainment venues and online platforms like Amazon and Google, while highlighting the centre's unique value proposition of offering a wide range of entertainment options at competitive prices. Furthermore, the report details the target market, focusing on demographic segmentation to cater to middle- and lower-class populations. The conclusion summarizes the key findings, emphasizing the opportunities presented by political stability and technological advancements, while acknowledging threats such as market trends and legal regulations. The report underscores the potential for success by leveraging government support, technological integration, and a comprehensive understanding of the competitive environment.

Business Plan Report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................4
Evaluation of current external environment................................................................................4
Discussion the competition and competitiveness of the industry................................................6
Target market...............................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The business idea is to open an “entertainment centre”. This idea will launch in a building
wherein people can find number of activities like billiard, darts, bowling, video games, slot
machines, pub, pizzeria and coffee shop. All things will be in the building like mall except shops
and bank branches so that people do not have to face any type of inconvenience. It is quite
innovative business idea as compared other one because it is completely designed for people
entertainment. This business will be succeeded because I have lots of knowledge about the
market whereas I am going to open this business theme. I posses all such skills that are required
for becoming a successful entrepreneur for example I have good communication skills, problem-
solving, decision-making, emotional intelligence, work ethic, ICT skills, business skills and
competencies and always eager and willing to add my knowledge base and skills. So, I think that
these requires to have in a good entrepreneur (Perera, 2017). In my area, I must have good
management skills, time management skills and all above mentioned skills are the personal
expertise which I have in this area and these will make me successful. There is a reason to
proposed this new business theme such as there are too limited entertainment centres which
encompasses all activities. These centres are near bank branches and shops so these centres
become too expensive. Due to this, limited people visit such place. The main goal of the aim is to
fill this market gap by presenting such place or centre wherein people can have more fun with
their family members as well as alone. The charges of the centre are too less as compared others.
this entertainment centre is going to open in London, UK because there is no entertainment
building so people and their family have to go outside city for having fun. This location is quite
nearby to all cities in UK whereas people can easily come and have lots of fun in this
entertainment centre. There is a building that will be use to involve activities which keeps them
safe from climate. At this place, people can spend good time as well by having cup of coffee at
minimum price (Vallati and Grassi, 2019). So, this place is selected for the new business idea. In
this report will discuss about current external environment for the proposed business with the
support of analytical tool i.e. Pestle analysis.

MAINBODY
Evaluation of current external environment
Pestle Analysis
It is a analytical tool that is used to examine external environment of the business. It
encompasses five factors such as political, economic, socio-cultural, technological, legal and
environmental factors that impacts on company’s decision-making process. This analytical tool
is not only supported to analyse external environment of the business but also it supports
company to explore it’s business or product in to the new nation. This model is used for the
proposed to examine threats and opportunity for the proposed business in the selected location.
Factors are mentioned below:
 Political factors
Political stability is the political factor that is one of the great opportunities for the proposed
business because it will not have to change in its policies again and again which will ultimately
save addition cost of the new business venture. It also gets funding support from the UK’s
government because they have goal to enhance employment rate in the nation which directly
improves GDP rate. In addition, UK’s government is exploring number of job opportunities for
those people who do not have such platform whereas they can explore their talent and can earns
their livelihood. It is great opportunity for the proposed business because it is going to open a big
firm in the UK wherein it can recruit number of employees in the workplace. so company will
get government supports as well because it is also putting great contribution in government
initiatives. Thus, proposed business will get positive impact from the political factors.
Economic factors
It includes taxation policy, disposable income, unemployment rate that impacts on
proposed business. Taxation rate is too high in UK as compared other nation so, it can possible
proposed business can get negative impact on its financial infrastructure. It is one of the major
threats for the new business venture (Racz and et.al., 2018).
Socio-cultural factors:

Demographical change is a socio-cultural factor that impacts on organization’s
profitability, operations and operation. Proposed business gets positive aspects from the
demographical changes because it involves different type of features in the building that are quite
enough to attract all type customers. So, new business will easily enable to attract wide number
of people towards it’s product and services in the business market.
Technological factors
Technological development, emerging technology etc. are technological factor that also
impacts on business functioning and profitability (Shtal and et.al., 2018). UK’s people is highly
up to date for the new technology and prefer to buy services through online platform. It is great
opportunity for the proposed business because it can access wide number of customers through
online and offline media. Online platform can be used to create awareness in customers about it’s
entertainment centre and it’s entertainment activities that will ultimately influence customer’s
towards product and services.
Environmental factors
Climate change is one of the major environmental factors that impacts on new business
functioning because if climate will be changed again and again then people will not prefer to go
outside. But proposed business does not get negative impact from the environmental factor
because it is going to open entertainment centre in the building. So, people will not worry about
climate change. they can come and have more fun the business.
Legal factors
There are various legal factors i.e. wages act, discrimination act etc. that affects
business’s productivity and functioning in the business market (Wasilewska and et.al., 2019).
Proposed business can face legal issues on it’s business because accordingly to Wage Act no
company can give salary at low average. For instance, if any company gives low salary to the
staff or workers then it has to pay fine over it. Due to this, proposed business can get negative
impact on employees’ productivity. It is one of the major threats for the company. So, it has to
comply with all legislation which have imposed by UK’s government to maintain wellbeing of

customers, employees and business owners in the nation. Then it will successfully enable to
establish business in the selected location.
Discussion the competition and competitiveness of the industry
The proposed business will going to operate in entertainment industry that is has limited
competitive pressure. The reason behind is that this sector requires huge capital revenue to
successfully establish entertainment company (Dolnicar, Grün and Leisch, 2018). This sector is
quite dynamic as compared others because customers always wants something new and
advanced in entertainment which enhance their entertainment experience. So, it is considered one
of the most revenue generating industry. There are various existing players in UK who have
captured large market share on it’s entertainment gadgets and services and in exchange gain
more commercial benefits. So, proposed business can have competition with local players in
term of innovation and brand image but it can handle by offering different type services to the
customer. In addition, it has added several value-based services like online payment services,
pub, pizzeria, bowling darts clot machines, coffee shops and video games which ultimately
influence customers towards the proposed business because they do not have to switch different
places for having fun. They can have all fun and entertainment in a single place at affordable
prices (Ruiz-Pava and Forero-Pineda, 2018).
Currently in direct competition for the proposed new business is Covid-19. This
pandemic began in increased in 2020 cased by several disruption in the entertainment market,
majorly to the movie theatre market. End of the pandemic will not give immediate relief to this
industry because it has led various changes in consumer’s habits, perhaps for the long time. In
addition, other businesses that have closed due to pandemic may struggle to reopen. So, it is one
of the indirect competitions for the proposed business. there are some potential competitors in
UK i.e. Amazon and Goggle which are putting more contribution to increase level of media and
entertainment industry. these have good global presence in the business market as well so,
proposed business can face tough competition from them in the context of technology innovation
(Camilleri, 2018). But it will going to offer bag of services to the consumer so it may not have to
face high level competition in it’s sector. In addition, it has great opportunity to gain more
competitive advantage in the business market from existing competitors because no company
offer variety of entertainment services for all type customers. There are only limited companies

which offer entertainment product and services to the customer at hike price. So, company will
offer good entertainment experience to the customer at lower price that ultimately puts pressure
on the competitors and influence customers to visit the place and purchase it’s services. Thus,
proposed business will enable to gain more profit in the business market (Fund, 2017).
Target market
Proposed business uses market segmentation strategy to target particular market for the
proposed product segments. Market segmentation strategy supports company to categorise big
market into small segments such as demographical, behavioural, psychographic and geographical
which are further classified customers accordingly their characteristics. For example,
demographical market segment is further subclassified customers based on their age, culture,
sex, gender etc (Centárová, 2020). While behavioural segment subclassifies customers
accordingly their purchasing behaviour, social class, behaviour and attitude. Proposed business
targets demographical market segment for the particular product and services. There is a reason
to select this particular market segment because it involves all product and features accordingly
customer’s need and these product segments will influence this market segments. With support
of demographical segments, it targets middle- and lower-class population for the proposed
product segments.
CONCLUSION
This report has been summarized pestle analysis for the proposed business. This
analytical tool supported new business venture to determine that it has good political advantage
because it will not have to change policy again and again after establish it’s business in the UK
market. economic stability is another advantage for the company because it has economic
exchange rate policy through which it can influence customers to visit it’s centre. With the
support of pestle analysis, there has been identified various opportunities for the business that
can be undertaken in the advantage form like UK’s government has goal to increase GDP rate so
it is exploring job opportunity for the people. This opportunity can become advantage for the
organization because it can recruit wide number of talented staff who can support proposed
business to handle all business activities effectively. UK has good technological performance
that is one of the good opportunities for the proposed business through which it can have more

advantage. For example company can use all highly popular technology i.e. social media, email
marketing to create awareness in customer’s about it’s new product segment through which it
can influence them to buy it’s product services once. Traditional marketing cost is too expensive
as compared digital market and provides limited access but digital marketing offers wide access
to the company to reach wide number of customers. Thus, it has analysed that proposed business
has various opportunities that will support it get lots of advantage in the business market. Market
trends, existing market players and legal regulation are the major threats for the proposed
business which has been determined through analytical tool. So, company requires to pay high
attention on these threats then it will easily sustain in the entertainment industry. Thus, pestle
analysis supported to determined threats and opportunities for the proposed business which it
will get after establishment it’s business in it’s targeted location.

REFERENCES
Books and Journals
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Vallati, M. and Grassi, A., 2019, July. AI to Facilitate Legal Analysis in the PESTLE Context.
In The EMerging Technology conference (EMiT) 2019 (pp. 66-68). IET.
Racz, L and et.al., 2018. Extensive comparison of biodiesel production alternatives with life
cycle, PESTLE and multi-criteria decision analyses. Clean Technologies and
Environmental Policy, 20(9), pp.2013-2024.
Shtal, T and et.al., 2018. Methods of analysis of the external environment of business activities.
Dolnicar, S., Grün, B. and Leisch, F., 2018. Market segmentation analysis: Understanding it,
doing it, and making it useful (p. 324). Springer Nature.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Centárová, J., 2020. Creative economy as a tool of competitiveness. In SHS Web of
Conferences (Vol. 83, p. 01007). EDP Sciences.
Fund, N.I.P., 2017. Business Plan 2017-2018.
Ruiz-Pava, G. and Forero-Pineda, C., 2018. Internal and external search strategies of innovative
firms: the role of the target market. Journal of Knowledge Management.
Wasilewska, N and et.al., 2019. Evaluation of target market segments for enterprises. Scientific
Journal of Warsaw University of Life Sciences-SGGW-European Policies, Finance and
Marketing, (22 (71)).