Analysis of Start-up Business in UK: Bake Affairs Case Study

This report provides an analysis of the UK start-up business environment, with a specific focus on a hypothetical bakery business, "Bake Affairs." It examines the various forms of governmental support available to start-ups, including financial aid, training programs, and tax reliefs, emphasizing the role of Start-up Britain. The report explores the entrepreneurial opportunities afforded by Start-up Britain, its advantages and disadvantages, and its impact on the UK economy. Furthermore, it delves into leadership theories, specifically the transactional leadership model, and its application to managing a start-up business like Bake Affairs. The analysis covers the practical aspects of business operations and management, leadership strategies, and the development of strategic plans to ensure the success and sustainability of a new venture in the UK market.

INTERNATIONAL
LEADERSHIP AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
To create a sustainable environment for the organisation which would be effective in leading
the firm for retaining success and managing the operational correctively there must be evaluation
of the governmental polices as well as business environment in international segmentations. In
UK there are various governmental agencies such as start-up Britain which has approached
towards supporting the organisations for creating their identity in the market. This campaign has
aimed at facilitating the adequate support and promotional help to the organisation which leads
them in managing operational practices. There will be analysis on the current market preferences
and policies formed by government and the capabilities of business to have a profitable start-up
in UK.
TASK 1
Start-up business is a venture which is established by individuals by creating &
developing new ideas. This business is widely increasing and contributing towards development
of economy of a country. It gives opportunity to individuals to enter in to new business.
Entrepreneurial business is increasing in United Kingdom and it is worlds second most company
in starting new business venture. A new business venture of bakery is incorporated in United
Kingdom named as “Bake Affairs” as UK is best place start a new business. Government of UK
is also helping individuals in establishment of new business by giving them various type of
support which are discussed below-
Financial Support- Government of UK Is providing financial support to this type of
business which in turn promotes individuals to start their own business venture. Start-up Britain
provides funding & give financial support by providing loans at a lower rate and by giving
subsidies to many business. Government also support “Bake Affairs” by giving loan for purchase
of land and machinery through a government bank. Various other financial intermediaries are
also operating in country on the behalf of government which are providing financial assistance to
individuals.
Training Programmes- Government of United Kingdom establishes various committees
who organise programmes in which trainings are given to individuals as what type of business
they need to start, how much investments is required in which business and what type of
techniques can be used for operating & manufacturing products & services of business. Thus,

this support also beneficial for “Bake Affairs” in enhancing its productivity and output as with
this company is enable to use innovative ideas and techniques in business(Chom, 2017).
Tax Reliefs- Government of UK is providing tax benefits to new start-ups which in turn
reduces expenses of business and enhances profits. “Bake Affairs” also does not require to pay
any amount of tax as its business is new and less capital is invested in this type of business.
Helps in development of business plans- Government helps in developing business
plans and also support new business start ups in making investments decisions. Government of
country is also giving continuous support to business firms if is established once in country.
Thus, it is the best opportunity for establishment of new business in UK and government
of UK is giving support with an objective of improving condition of economy and enhancement
of GDP of country.
Entrepreneurial Opportunities Afforded By Start-up
Britain
Start-up Britain is campaign incorporated with the purpose of encouraging & motivating
individuals & business ventures to expand and establish business. This campaign is started in
2014 and after this company is business in United Kingdom is growing at a faster rate. This
campaign monitors and control performance of new business venture and it also helps in
facilitating ideas & innovation (Zhang and et.al., 2016).
Further, start-up business also need support of business firms so that they both
combinably engage in development & growth of business firms. Start Britain is having
opportunity to support past & present business ventures. Companies who are already running
their business to them it can provide financial assistance so that they can expand their business. It
also has opportunity to encourage old businesses to use innovative technology so that profits and
operations of business gets enhanced and that in turn helps in development of countries
economy. It has an opportunity as many big companies are supporting & motivating this
campaign. This companies are Intel, Black Berry, eBay, Deloitte, KPMG and many more other
business firms. It helps 2,70,000 business of United Kingdom to expand & grow their business.
This campaign is operated by private companies with an objective of giving support to
government for business growth in United Kingdom. It also has an opportunity to Influence &

Inspire Young Generation this further helps in improving business operations of present
business. This campaign is also capable to start new business which is new in country by
providing innovative & creative ideas. As there is no barriers in Britain to start a business this
campaign can easily influence individuals and old businesses to introduce new products lines and
incorporate a new business firm. British Government is also providing variety of financial
schemes to individuals of country which is also an opportunity for Start-up Britain campaign as
with this entrepreneurial business can grow easily (Mudambi and Zahra, 2018).
Advantage & Disadvantage of Start-up Britain
This campaign has various advantages which are discussed below-
No Restrictions- Any citizen of United Kingdom can establish a new business. They
does not require to fulfil various formalities. Further no approval is required by government thus,
it is an advantage for Start-up Britain as it helps campaign in fulfilling its objective and it is also
beneficial in providing sustainable growth of businesses operated with in the country. Start-up
Britain also helps in expansion of business of country in global market and it also an opportunity
for business firms & this campaign(Dannberg, 2017).
Taxation Policy- Taxation Policy formed by government of United Kingdom is giving
tax relief to new start ups and it is also understanding benefits of new business which further has
advantage for Start-up Britain in achieving high rate of success as profits of companies are
increasing with the reduction of tax rates. All this further benefits this campaign in providing
potential growth to business firms and this also strengthen various business model such as
revenue model and production model as cost is reduces and profits are increased.
Introduction of Various Financial Schemes- Various financial schemes are offered
which helps companies in making investment decisions. If funding is available than it is easy for
operating a business and Start-up Britain has an advantage thus, it helps companies in
maximising its overall profitability. All this also helps business firms in sustainable growth and
also helps in choosing an appropriate & adaptive business model(Wang, 2016).
Further, government of United Kingdom is providing support to other individuals who
are not citizen of Britain which in turn helps Start-up Britain in expanding their operations &
services in more countries. Thus, this campaign also motivate individuals of other country to start

business in United Kingdom which in turn increases production and employment level of
economy of UK. Campaign has advantage to increase number of businesses in Britain with this
initiative taken by government. This further helps in improving business model of country. New
category of visa is introduced by government with this anyone can enter into business in
country(Jain and Gupta, 2018).
Government Support- It is the biggest advantage for companies operating with in
Britain as government is giving full support to companies. With this Start-up Britain can assist
sustainable development as it is easy for campaign to influence new generation to incorporate a
business. Further, youngsters are more creative and innovative which further helps in creation of
an effective and innovative business model that attracts customers. Government of country is
also providing support by introducing new technology which beneficial for Start-up Britain as
with this advanced technology it can give new ideas and motivate companies to use technology.
With all this advantages Start-up Britain is successful as it is able to incorporate many
new business in Britain and economy of UK is getting stronger day by day with the success of
this campaign. Start-up Britain is also organise many events for giving information about new &
popular businesses which gives higher profits and require less investment. This campaign also
encourage new generation so that they can engage in entrepreneurship business. Various events
are also organised by this campaign in schools to motivate students so that they can engage in
development of business of United Kingdom(Khan and Baarmah, 2017).
But there is also some disadvantage as Employees in United Kingdom charges higher rate
of wages thus, there is a problem for new business as they do not have much capital. This further
de-motivates individuals & companies in expansion of business and establishment of new
business firm. With this Start-up Britain cannot achieve its objective of maximising number of
business in country. It is also a disadvantage as it negatively affects profits growth of business
firms.
Many other countries are also expanding & establishing business in United Kingdom
which reduces growth of businesses as they are not able to adapt all the rules, regulation s and
policies of country. They face many problems related to operations and promotion of their
products & services which is further a disadvantage for Start-up Britain. As the campaign is
unable to provide growth and business model is not adaptive. Changes in technology also

sometimes a disadvantage for new firms as they are not able to invest much in this technology
which in turn reduces profits and declines performance of business. All this factors affects
reliability and objective of Start-up Britain(Burns, 2016).
TASK 2
Start-up Britain as the national campaign in UK which has have impacted on making
adequate changes in the operational practices at the right time. It supports the start-up businesses
which are currently seeking for operating in the new market. “Bake affairs” have been aiming at
operating the bakery services in the organisation which would require a strategic plan for better
leadership and operational management. In approach towards this there has to be ascertainment
regarding the business operations and management of several activities which would lead the
entire workforce in retaining the targeted aims at the right time.
A leader is being entitled with managing the operational activities which are being organised
in the organisation. However, in relation with such aspects where it can be said that there must be
development of strategic policies and plans which would lead the firm in retaining adequate
marketable success.
Transactional leadership theory
The transactional leadership theory assumes that the employees or workers can motivate
by both rewards and punishments. The leader uses exchange principle to motivate their
followers. The leader by application of this theory put forward organizational goal along with
individual goal of leader for which the leader expect employees to achieve it. The leaders ask
employees about their needs and wants which satisfies them and for attaining that need follower
accomplishes the allotted task. Rewards can be extra pay, perks, bonuses or overtime working.
In transactional leadership, followers get motivated by satisfying their needs which is mainly
monetary based. The leader in this theory apply tactics like punishment and reward for
completion of task. Thus, the employees have to follow the order of leaders. The transactional
theory is divided into four different dimensions which are mainly :Contingent rewards – In this dimension of transactional theory, leader gives rewards when
their followers meet their expectation that is attainment of short term goal. The leader
also provides resources like machinery, work force etc. to them for accomplishment of
their targeted goals. After successful accomplishment of these goals the followers get
rewarded by leader which is in form of bonus, incentive, extra pay, etc. In contingent

reward dimensions the leader always set SMART goals. The SMART goals are specific
as well as measurable. Also, these goals are achievable and real. These goals can be
achieved on time.Active management by Exception – In this dimension, the leader monitors the work of their
followers and subordinates. They keep an eye on work performance of employees and
any deviation observed by leaders corrects by them immediately. The leaders measure
their performance by actual with what is expected. This way they make easily correction
when they observe any deviation. Therefore, on an initial stage mistake or errors resolved
which could be problematic if not handled properly. It could lead to failure of task
accomplishment.Passive management by Exception – This dimension is slightly different from active
management because in this leader interfere in the work of followers only when set
standards are not actually met by actual standards. Otherwise, they do not interfere in
work of followers while accomplishing the task. Therefore, they sometimes use tactics of
punishment for unacceptable work performance. It is generally followed in autocratic
environment organizations where leader have rights to make use of punishment for any
error found in work accomplished.Laissez faire – This dimension of theory is best from all other because in this the leader
creates an environment where followers get numerous opportunities for decision making.
The followers have right to make decisions which are related with their task and for
accomplishing it they take decisions. The leader in this dimension fail to take
responsibility of work because in this style of leadership followers are solely taken
decisions and they are responsible for the same. Therefore, the leader in this style of
leadership fails to provide any directions for successful attainment of task.
CONCLUSION
On the basis of above report, it can be said that, there are various legislations and legal
framework facilitated by the UK government in relation with new start-ups in the environment.
Present report has discussed about operational framework of Start-up Britain and various
legislations which helps the start-up businesses in meeting the business objectives at the right
time. There had been discussion based on transaction leadership theory on which adoption of
effective leadership operation would be effective in managing the firm’s objectives.

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