Business Plan Report: Analysis of The Retail Hub New Venture Launch

This report examines The Retail Hub, a new retail business venture operating both online and offline, selling groceries and clothing. It analyzes the target market within the United Kingdom, considering both online and offline retail sectors, and provides a competitive analysis, highlighting key competitors and market dynamics. The report delves into the internal strengths, such as a diversified product range and affordable costs, as well as weaknesses like inexperience and limited resources. It outlines the tangible and intangible resources necessary for the venture's success, including financial resources, IT systems, and brand value. Furthermore, the report explores marketing strategies, a comprehensive cash budget, and legal requirements, and also discusses the skills and capabilities required for the workforce, including training and employee encouragement. The analysis aims to provide a comprehensive overview of The Retail Hub's business plan and its prospects in the competitive retail market.

Launching a New Venture

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Business Plan...........................................................................................................................................3
Competitive analysis................................................................................................................................4
Internal analysis of new business venture................................................................................................5
Resources................................................................................................................................................7
Marketing Strategy for Business Plan......................................................................................................8
Cash Budget for Business Plan................................................................................................................9
Legal Requirements...............................................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Business ventures are the new business entities operate sits business operations by aiming
to earn profits out of the operations. This report is based the case study of new business venture
call The Retail Hub. New business venture is engaged with selling retail products in both
mediums online and offline modes. Henceforth, report will emphasis on specific target market
associated with the new business venture. Report will also demonstrate the competitive analysis
associated with the new business venture. Different strength and weaknesses associated with the
new business venture will summarise in this report. The aim of the report is also to analysis
different resources needed to establish a new business venture. Furthermore, report will also
summarise different skills needed for establishing a new business venture and also the possible
approaches to improve the skills. Different marketing strategies in respect to new business
venture will also demonstrate in this report. A comprehensive cash budget will also discuss in
respect to new business venture. Different legal requirements associated with the new business
venture will also analysis in this report.
MAIN BODY
Business Plan
Target Market
The Retail Hub is initiating its business operations. Business venture is engaged in selling
retail products over internet and offline also on its shop. Business venture offers different retail
products like groceries and clothing line. Retail sector is considered as the dominating sector in
business environment due to high growth rate. Product range in retail sector is also well
diversified that allows The Retail Hug to launch different groceries and clothing products
(Aguirregabiria and Suzuki, 2016). Target of The Retail Hub will be the retail market of United
Kingdom. Business venture will target all people irrespective to any gender for its groceries
products. Company will also target all peoples for its clothing line. The business ventures will
also sale its products over internet. The target market for the venture wills also the online retail
market. Internet has proved as the transformation in the business environment as it has improved
the opportunities to develop the business and make effective revenues out of the business. By
selling its products online business venture will also target customers over different social media

networks. The target market for the Retail Hub will also involve the different e-commerce sites
and internet networks involved in the trading of retail products.
Competitive analysis
Retail sector is among the highly competitive market due to huge growth potential. Over
the period of time retail sector has also witnessed increased demands in the products like
groceries, food products and clothing line. Growth rate of the retail sector in United Kingdom is
also approximately at the rate of 10% (Akhtar and et.al., 2018). Due to high demand in the
market retail sector is also contributing the gross domestic product of United Kingdom at the rate
of 5%. All the growth rate and contribution in gross domestic products has resulted into very
aggressive market competition in retail sector of United Kingdom. In order to operate the
business operations, The Retail Hub needs to compete with all the leading market competitors in
retail sector like Tesco, Marks and Spencer, Asda, Wall Mart and other competitors. All the
above retail sector brands have also consisted with the huge brand value and loyalty of its
potential customers. The Retail Hub needs to compete with all such companies in order to meet
its business objectives. Asda Company is consisted as the leading company in the retail sector
across the globe. The Retail Hub will have to compete with the company in order to entertain
effective profitability in the market.
The Retail Hub is also launching its clothing line for the potential customers. Clothing
line of company will target all genders and age group peoples. Clothing and fashion retailing is
also among the immensely competitive market sector. Business venture also needs to compete
with all leading brands in clothing and fashion retailing industry. Brands like Jockey, Armany,
Reebok, Wrangler and other brands. The fashion hub is selling its products over internet so the
competitors for the company also include the e-commerce websites and applications. E-
commerce websites and applications like Mantra, Amazon and other e-commerce websites
operate its business operations in United Kingdom. In UK e-commerce has also emerged
immensely. The growth rate of e-commerce business in United Kingdom is more than 10%. E-
commerce retailing also contributing 25% in the total retail sector turnover (Chernova, Matveeva
and Mikhalkina, 2018). All such statistics indicates the presence of e-commerce retail
organisations in United Kingdom. The new business ventures will have to compete with both

online as well as off line retail outlets in order to operate its business operations and make
effective revenues out of the business operations.
Internal analysis of new business venture
Internal analysis of The Retail Hub wills emphasis on the strengths of the business
venture and also the weaknesses associate with the business venture.
Strengths of The Retail Hub
The Retail Hub is associated with following strengths that will support the organisation in
achieving all its business objectives.
Diversified products: The product range of The Retail Hub is well diversified in nature.
Organisation will offer different products of retail like groceries and clothing to its customers.
Business venture cater all top brands in clothing products and in groceries to its potential
customers. Well diversified products range of the business venture will provide complete
shopping experiences to its customers (de Jorge Moreno and Carrasco, 2016). The Retail Hub
will give effective deals by offering top brand involved in groceries and clothing products. This
will be key strengths of The Retail Hub as the organisation will be able to meet all needs of its
potential customers. Well diversified products range will support the new business venture in
establishing an effective brad image in the retail sector of United Kingdom.
Affordable cost: The Retail Hub will offer all its products at a very affordable cost structure.
Affordability will be among the key strength of the new business venture. The objectives of the
organisation are to meet the needs of the customers related to groceries and clothing products at
the affordable price structure. Affordable prices of the products will also improve the purchasing
capacity of the customers that will further drive the customers to shop more (Krivosheya and
Korolev, 2018). The new business venture is aiming to make the quality products affordable for
the customers. Business venture will keep its profitability margins low so that customers can
afford products at affordable price range. This will be the key strength of the business venture
that will support the new business venture in establishing a unique brand image in target market
apart from such a huge market competition.

Strong supply chain management system: The Retail Hub has made strategic partnerships with
different supply chain networks and suppliers. Effective supply chain network play huge role in
catering effective products to customers. Strong supply chain management system of the new
business venture will provide huge strengths to the new business venture. This will enable
business venture to ensure proper availability of all retail products. With the support of
productive supply chain network venture will be able to offer all latest fashion in clothing
products and also all the trendy products in groceries to all potential customers.
Weakness of The Retail Hub
Weaknesses associated with The Retail Hub can be summarises in the following manner.
Inexperience in operations: The Retail Hub is the new business venture which will operate its
business operations in retail sector. Management of the new business venture is also new in the
market. Retail market is among the highly competitive market sector and in order to deal with
such aggressive market competition organisation need some strong policies and strategies.
Inexperienced management will be a huge weakness for the new business venture in facing such
a aggressive market competition and also to frame effective strategies (Kurnianto and et.al.,
2019). In order to deal with such high market competition it is crucial for the Retail Hub to have
a specific experience work force. Inexperience of the business venture will leads to plenty of
issues to the business venture that can also causes to failure of the business venture also.
Limited resources: Limited number of financial resources is also the key weakness associated
with the new business venture. In order to sustain business effective resources play the key role.
Limitation in resources will drive plenty of issues of the business venture in respect to
sustainability of the business venture in the market. Resources play crucial role in operating
business operations effectively. Limited resources of the business venture will also opposes
business venture in implementing the strategies also.
Aggressive market competition: Retail sector is consisted with the heavy growth which also
drives to aggressive market competition. Heavy market competition will drive organisation to
face plenty of issues like low market share, low profitability. This is among the key weakness
new business venture is engaged with in its business operations.

All the above internal analysis of The Retail Hub indicates towards the strengths and
weaknesses of the new business venture.
Resources
Resources play huge role in operation business operations. Resources of The Retail Hub
are segregated into tangible resources and intangible resources. Resources of the new business
venture can be summarised in the following manners.
Tangible Resources: Tangible resources are denoted by all such resources can be physically
experiences and channelizes by the business venture. The Retail Hub is the new business venture
and organisation will seek different tangible resources. Tangible resources include all such
resources that can eb physically seen and experienced. Organisation will require tangible
resources like financial resources, human resources, products, suppliers, infrastructure,
information technology system and other tangible resources such as communication system
(Okundaye and et.al., 2017). All such tangible resources will support the new business venture in
order to operate business operations. All tangible resources will have different implications in the
business operations of the new business venture. Information technology and communication
system will be the key tangible resources for the new business venture.
Intangible Resources: Intangible resources are consisted up with all such resources which can’t
be physically verified and experience. Resources like goodwill, brand value, customer loyalty
and other intangible resources. Intangible resources play huge role in improving the sales
potential of the organisation. Intangible resources support organisation in achieving all business
objectives of the organisation (Pantano and Vannucci, 2019). Goodwill, customer satisfaction
directly improves the sales potential of the organisation in target market. All intangible resources
also support organisation in taking competitive advantages in the market.
All the above elements indicate about the suitable resources needed to the new business
venture to achieve growth in the target market.
Skills and Capabilities:
To achieve high success and suitability needs to posses’ skills by business venture in the
workforce. The reason behind is that when ventures are highly skilled then easy to develop

different type of strategy which can helps business to achieve good positioning in the business
market. there are several methods which develops skills and plays important role in improving
their capabilities for the work forces which are associated with business ventures.
Training: Retail Hug’s management can organize professional training for employees which
helps them to improve their skills and learns new skills such as information technology skills,
decision-making skills, communication skills and other skills. These are essential which makes
business venture effective and improves quality in their working. While training class plays
essential role to grow professionals by learning overall skills in staff. By the training can
determine weakness and strength of employee which can improve over the time. thus, it is a
strategic method to develop skills in staff.
Encourage employee: Management of the Retail Hub follows this method for inspiring employee
to develop different skills like decision-making skills and other related skills (Sullivan and Bers,
2018). It improves the strength of employee in respect of working and make them more
responsible for their job responsibilities. It is effective method for developing and improving
skills by inspiring staff to give more efforts in their performance. Thus, management can
encourage staff to improve their capabilities and personality as well.
These both methods are quite effective for growing skills in employees.
Marketing Strategy for Business Plan
The Retail Hub also needs a marketing strategy that would allow it to promote and
advertise its goods and services to the public in an effective manner. For this purposes, The
Retail Hub has access to both traditional and digital channels of marketing which it can make use
of to effectively promote and advertise its goods and services to a large portion of potential
customers around the world (Chaffey and Ellis-Chadwick, 2019). The marketing team of The
Retail Hub also needs to be active during entire operations of the business venture, performing
its key roles and responsibilities both pre and post launch of the business venture. The marketing
strategy of The Retail Hub must include marketing tools which provided by the traditional and
digital channels of marketing such as:
Social Media Marketing: The Retail Hub’s marketers must make use of the social media
platforms to further increase the performance and efficiency of their marketing efforts. As social

media has grown immensely in popularity in the past decades, marketers of The Retail Hub will
be able to promote and advertise to a huge audience at little costs incurred by the business
venture, if they make use of different social media platforms to conduct their marketing
operations. Using the social media platforms to conduct their marketing operations would also
allow the marketers of The Retail Hub to promote and advertise their products to their target
markets instead of all individuals in the society, further increasing the performance and
efficiency of their marketing strategy.
Paid Advertisements: Another tried and tested marketing strategy that The Retail Hub can adopt
is that of running paid advertisements for their goods and services on various traditional
marketing platforms such as billboards, TVs, radios, magazines, newspapers etc. This would
allow The Retail Hub to promote and advertise their products to a very large section of the
society in addition to people who do not have access to the internet (Kingsnorth, 2019). For paid
advertisements, the marketing team of The Retail Hub needs to make sure that their marketing
content is entertaining as well as engaging for the consumers so that they can reap the benefits of
their paid promotion marketing efforts.
Sponsorship: The marketers at The Retail Hub can also make use of the sponsorship marketing
strategy through which they can effectively promote not just their goods and services to the
consumers all around the world, but also their brand name which has added advantages than
other marketing strategies discussed. The marketers of The Retail Hub can sponsor various
programmes, sporting events, reality shows, YouTube channels etc., which tend to attract huge
number of people, who then can be effectively marketed to (Morgan and et.al., 2019). Though
expensive in relation to other marketing strategies, it does provide the business venture with
unique advantages such as this marketing strategy increases the brand value and public
recognition and perception of the business venture which is highly productive for The Retail
Hub.
Cash Budget for Business Plan
The cash budget for The Retail Hub includes all of its operational expenses incurred
during the pre and post launch of its business venture, which its management needs to be aware
of and account for. The pre-launch cash budget plan includes all the operational expenses which

the leadership and management of The Retail Hub would have to incur for its various operations
in the consumer markets such as:
Operational Expenses Amount(£)
Marketing and Promotions 2000£
Procurement of Raw Materials 3000£
Distribution and Logistics 1500£
Legal Expenses 1000£
Employee Wages 2500£
TOTAL 10,000£
Another cash budget also has to be created to account for the expenses incurred by The
Retail Hub after the launch of its business venture into the consumer markets (DeFranco and
Schmidgall, 2017). These include all the expenses incurred by the management and leadership of
The Retail Hub after the business venture has been launched such as:
Operational Expenses Amount(£)
Marketing and Promotions 1000£
Procurement of Raw Materials 2000£
Distribution and Logistics 1000£
Legal Expenses 300£
Employee Wages 1250£
TOTAL 5,550£
The management and administration of The Retail Hub needs to account for the expenses
incurred during both pre and post launch of its business venture in its business plan for the
successful operations of The Retail Hub.
Legal Requirements
The Retail Hub also needs to adhere to various legally mandated rules and regulations
implemented by relevant authorities in order to avoid legal penalties, fines and to maintain its

brand name and reputation in the consumer markets. Major legal laws that The Retail Hub has to
adhere to are as follows:
License and Registration: All owners of business organisations and ventures in the UK are
legally mandated to register their ventures with relevant governing authorities and procure legal
licence before they can operate in the consumer markets (Cox, Hillman and Langevoort, 2019).
The ownership of The Retail Hub also needs to register their venture with the governing
authorities and procure a legal licence in order to legally operate in UK.
Employment Laws: The Retail Hub also needs to adhere to various employee and labour laws
that regulate their health, safety, minimum wages and other operational attributes, in order to
possess a skilled and motivated workforce and avoid legal fines and penalties by relevant
authorities.
CONCLUSION
Based on the findings of the report, it can be effectively concluded that an effective
business plan is necessary for the operational success of business ventures such as The Retail
Hub. This report creates an effective business plan for The Retail Hub by identifying its target
market and performing its competitive analysis. The report also assesses the strengths and
weaknesses of The Retail Hub in consumer markets and identifies the tangible and intangible
resources that are required by The Retail Hub. Then the report also evaluates the training and
development methods The Retail Hub can make use of and provides a marketing strategy for the
business plan. Finally, the report computes a cash budget for the operations of The Retail Hub
and details the legislative requirements The Retail Hub has to adhere to for its successful
operations in the consumer markets.

REFERENCES
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