ITB Report: Analyzing Internal & External Forces on Startup Business

This report provides an analysis of the internal and external forces influencing a startup business, focusing on Foodie, an online food delivery company in the UK. It examines various business types, including sole proprietorships, partnerships, LLPs, and public/private limited companies, detailing their structures and operational models. The report uses PESTEL analysis to evaluate macro-environmental factors like political, economic, social, technological, environmental, and legal aspects affecting the business. Additionally, Porter’s Five Forces model is applied to assess the micro-environment, including the threat of new entrants, bargaining power of suppliers and buyers, the threat of substitute products, and competitive rivalry. The analysis concludes that understanding and managing these forces are crucial for the startup's success and long-term growth, recommending continuous evaluation and adaptation to market dynamics and government policies.

Individual Report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Various types of businesses.........................................................................................................3
Business structure........................................................................................................................4
Internal and external forces analyse for planning and decision-making.....................................5
PESTEL analysis.........................................................................................................................5
Portor’s five forces......................................................................................................................6
CONCLUSION................................................................................................................................7
RECOMMENDATION...................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business start-up concept is all above refers to where one of more entrepreneur decide and create
plan to build business venture for profit generate. This study will provide information of
different size, structure, patterns of business like private limited company, sole trader,
partnership and many more (Sperber and Linder, 2019). Foodie is all above food delivery and
online food booking company which established in UK. And it provides their services in
different place as well. This company entrepreneur analyse from the market research that people
highly attracts with food delivery approach. This study will give proper idea about internal and
external forces influence business activities and from the application of theories and models
easier to manage business activities.
MAIN BODY
Various types of businesses
Sole proprietorship: This type of business mainly develops and creates by individual
entrepreneur who believes in perform overall business tasks with their own decision-making and
planning.
Partnership: It includes business expansion with two or more partners where different
individuals prepare decision-making for business expansion with different thought process and
make single decision (Cardenas-Navia and Fitzgerald, 2019). This type of business mainly refers
to includes structure which is medium or large size where they provide employment as well. But
the major threat and risk is in case one individual not develop interest in decision-making or
other activity it badly affects overall business plan.
LLP: It develops by under the government regulation decision-making when it analyzes that
partnership business influence from various aspects so it decides to develop legal application in
business activities. In this partnership individual partner when do fraud other individual can
easily remove them on business with legal application. It’s very safe and secures aspects when
two individual decide to develop business with partnership so it’s also known as legal entity
concept as well.
Public limited company: In this business company exchange stock publicly which means it
provides their share to others. This company has huge responsibility to perform well for affects
stakeholder’s attraction towards with the business activities (Crick, Crick and Chaudhry, 2020).

Private limited company: This Company mainly provides their share and exchange stocks with
its staff members only.
Business structure
This company entrepreneurs clearly decide to build their business activities and raise
business performance with public limited company expansion with unique and differ t idea
involvement. So it decides that they develop Foodie company which provide good services
throughout online booking services. Foodie business framework is delivery of orders and
manages orders payments. Business structure is useful for define all the activities which mainly
done by company owners. Foodie Company is all above food deliver and food booking service
distributors.
And this business develops by two entrepreneurs who decide innovation expansion in UK. They
analyse market activity that office staff members has not time to go restaurant and eat food. So
from the market research this company entrepreneur decides to use technology tools like develop
mobile application for food booking with any restaurant and from the engagement of employees
they deliver food facilities with fewer time (Voinea and et.al., 2019). So from the innovative
business structure audience get highly influence with it. From the unique idea and effective
position this company directors decides to expand their business activities in other place as well.
This company is public limited company because people highly influence with this start-up and
attract with their services and profit statement. Because it’s get goods position in market it
influences customer attraction so they also believes in invest fund as well.
Business model
Key partners:
Product delivers
Key activities:
Food delivery with fast service
with online booking,
restaurant activities
management
Value propositions:
Discounts on first order and
festival discounts.
Safety and security of food.
Customer segments:
Good quality of food and
restaurant involvement for
food delivery at home or
office.
Customer relationship:
Delivery food on time, make
orders with different
restaurant according to
requirement, online payment
Cost structure:
Cost charge on product
delivery on the basis of
distance.
Salary distribution to deliver

facility. on the basis or hourly work.
Revenue stream:
Transaction of food cost and commissions
from restaurant on orders.
Channels:
Websites and mobile application.
Internal and external forces analyse for planning and decision-making
Macro environment: Entrepreneur mainly concern towards with analysis of external forces for
managing their goods and services with effective manner. Its important for new start-up
expansion. And mainly requirement of evaluation of forces in case they affects on business
activity so company can easily analyse and evaluate (Mostafiz and Goh, 2018). It defines as
proper identification of external forces provides sustainability in risk evaluation and
management. Therefore when entrepreneur or other business developer decides to develop
business they do have duty to apply PESTEL evaluation for government to inivdiual preferences
and risks identification.
PESTEL analysis
Political: From the evaluation of market research it has been identified that UK has stable
government. And UK government highly consider and attracts with online food delivery because
it raises money flow with positive manner. Also it do not highly influence and develop variation
in tax policies or other. From the evaluation of this term this company entrepreneur when decide
to develop business they develop effective cost for customer attraction.
Economic: Variation in transportation cost influence this business activity. Also UK tariff highly
affects from other countries tax charges. So it affects on overall business activity. Idea about this
terms its essential this business develop higher concern and prepares planning on the basis or
identification of transportation cost price.
Social: UK cultural activities highly influence from continues innovation and variation in market
activities. Individual expect when they do online food booking they good safe and clean food.

But multiple UK restaurant concern on it so it affects on Foodie Company. Knowledge about this
term this company management team has duty to evaluate and take review from customer that
which restaurant not provides good services.
Technological: Analysis and application of technology in business very essential to business
expand in UK. Almost people prefer technology tools for buying goods and services. This
business entrepreneurs when they decide to start this business they highly concern towards with
the uses of technology in goods aspects. It identified that almost people uses different mobile
application for online booking so from the evaluation of this activity they decide that food
delivery is best aspects which is useful for inivdiual who not interested to go restaurant and eat
food.
Environmental: From the analysis of market research this company recognize that UK
government highly concern to develop polluted free environment. So from the identification of
this term, this business entrepreneurs decide that they deliver their food with bicycles and scooter
which is eco-friendly tools (Poddar and Agarwal, 2019).
Legal: Government develop rules and regulation on food industry like they do have to concern
safe and secure food deliver to customer. Therefore, its important term to consider so businesses
entrepreneurs inform to restaurant that they provide clean and good food.
Micro environment: Consideration of internal forces identification improvement business
quality and it gives more consistency in decision-making process. Because it has power to
manage multiple aspects with great manner. Having appropriate methods of internal business
forces evaluation is essential approach and it mainly analyze with the uses of porter’s five forces
which are as follows,
Portor’s five forces
Threats of new
entrants
Threat of
Substitute
Products or
services
Competitiv
e rivalry
Bargaining
power of
supplier
Bargaining
power of buyers
From the market Company threat Organization Supplier Buyers

research it has been
identified that this
company treat of new
entrants is higher.
Because other
entrepreneurs or
business easily apply
similar approach.
Therefore idea of this
term this company has
responsibility to
develop variation in
business policies like
innovation, discounts,
safe food, try to
maintain goodwill with
good relation with
customers.
of substitute is
also higher
because on the
basis or recent
market trend one
company can
easily evaluate
other business
performance with
uses of
technology tools.
Evaluation of
company profit
and revenue
other can easily
expand similar
products and
services
(Levenda and
Tretter, 2020).
competitive
rivalry is
low because
other
company not
provide
similar
services to
customer.
Because its
not easier to
manage
similar
activities
like Foodie.
bargaining
power highly
affects on raw
material
involvement.
But this
company
bargaining
owner is law
because
restaurant has
idea that if they
apply this
online delivery
it increases
their selling.
bargaining power
is higher because
of variation in
their preferences
and they believes
in quality of food
so knowledge
about this term
its important to
raise customer
trust for law
bargaining.
From the consideration of different aspects it has been very clear that Foodie business defiantly
reach more success when its entrepreneurs properly consider and prefers managing their business
activities with proper identification of competitive industries identification because it badly
impacts on business growth. Considerations about this term make sure business develop higher
attraction towards with the appropriate business expansion.
CONCLUSION
It has been summarized form the above reflective study that expansion of new start-up is not
easier task, entrepreneurs focuses on multiple tasks for business effectiveness and survives in the
competitive market. It has been identified from the above study that makes sure business team
members evaluate external forces with utilization of PESTEL analyse and internal analysis with
Porter’s five forces it makes more clarity in planning and decision-making for business

expansion and for long term growth. This study also provides information about different types
of business and their effectiveness or quality. Also from the business model it has been clear that
Foodie Company develop effective business model with proper identification of internal external
forces and proper reorganization of essential factors.
RECOMMENDATION
New business start-up when consider and prefers this study tools and different essential
application then business defiantly get high success. It makes more consistency in business
structure. So from the identification of all the aspects of company its essential business develop
proper government policies for long term success and continuously evaluate and identified
external forces for business performance management in competitive market. Also company new
business entrepreneurs have major responsibility to evaluate risk factors from Porter’s five forces
which influence activities of overall business. Foodie business concept is very powerful or new
concept in market so for maintenance of unique structure for long term it’s important to involve
new policies which attract audience attraction. Therefore when business consider appropriate
techniques for long term business growth then it defiantly increases revenues which is most
essential approach and its motivate towards with the involvement and addition of new
approaches.

REFERENCES
Books and Journals
Sperber, S. and Linder, C., 2019. Gender-specifics in start-up strategies and the role of the
entrepreneurial ecosystem. Small Business Economics. 53(2). pp.533-546.
Cardenas-Navia, I. and Fitzgerald, B.K., 2019. The digital dilemma: Winning and losing
strategies in the digital talent race. Industry and Higher Education. 33(3). pp.214-217.
Crick, J. M., Crick, D. and Chaudhry, S., 2020. Entrepreneurial marketing decision-making in
rapidly internationalising and de-internationalising start-up firms. Journal of Business
Research. 113. pp.158-167.
Voinea, C. L., and et.al., 2019. Drivers for Sustainable Business Models in Start-Ups: Multiple
Case Studies. Sustainability. 11(24). p.6884.
Mostafiz, I. and Goh, S. K., 2018. International women entrepreneurs and international
opportunity recognition skills for start-up ventures. Journal for International Business
and Entrepreneurship Development. 11(3). pp.201-220.
Poddar, N. and Agarwal, D., 2019. A comparative study of application effectiveness between
digital and social media marketing for sustainability of start-ups. International Journal of
Business Insights & Transformation. 12(2).
Levenda, A. M. and Tretter, E., 2020. The environmentalization of urban entrepreneurialism:
From technopolis to start-up city. Environment and Planning A: Economy and
Space. 52(3). pp.490-509.