Project: Launching a New Venture for LSI Architects in London

This project analyzes the launch of a new venture for LSI Architects, an award-winning architectural practice, focusing on entering the international market by establishing a new venture on Oxford Street in London. The project begins with an introduction outlining the business's objectives and the scope of the venture, followed by an identification of specific target markets and a competitive analysis. It then details the tangible and intangible resources required for the venture's success, including land, labor, capital, goodwill, and intellectual property. A crucial part of the project is a credible proposal for launching the new venture, which includes an executive summary, target market analysis, competitor analysis, resource allocation, financial projections, and benchmarking strategies. The project also touches upon the strengths, weaknesses, and potential risks associated with the new venture, providing a comprehensive overview of the planning and execution required for a successful market entry.

Launching a New
Venture

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INTRODUCTION
Launching a new venture is all about expansion of existing business into new area for
generating more or more revenue by grabbing available market opportunity. Almost each and
every business is coming up with creative ideas for extending their current enterprise for making
it bigger by satisfying consumer needs and demands (Baron and Tang, 2011). In fact, numerous
small firms are aiming to come up with more innovative ideas in order to get involved in several
other sectors also. Therefore, this assignment is going to revolve around the process of launching
a new venture of existing business named as LSI Architects. This organization is currently seen
as an award winning architectural practices by having almost 60 employees includes architects,
technologist as well as supporting staff in London and Norwich. Hence, main objective of the
company is to entered into international market by launching its new venture on Oxford Street of
London which is one of the most famous market. Thus, project will highlight the new venture of
this company by specifying its markets and tangible or intangible resources that are used by
organization for accomplishing their set targets. Moreover, an impressive proposal is also
outlined in the project and methods of developing venture by showing suitable promotional
channel for successful marketing of newly established branch of existing firm.
TASK 1
P1 New venture for LSI Architects by identifying specific markets and competitive analysis
LSI Architects is an award winning business of architectural practice by having almost 60
employees that includes various members such as; technologist, supportive staff team and other
technicians based in London and Norwich. Practice of business always looks for create
sustainable, creative, valuable and impressive architecture which enhance the lives of common
people, build community and improve society. In fact, this organization is having a very vast
experience of tackling several projects of distinct clients from which major contractors are
commercial and for public sector clients across the UK. However, main emphasis of the
organization is on projects of London, Norfolk, and Cambridge and Eastern region. On the other
hand, clients which were connected with the company always appreciate their work and say that
LSI Architects really value their members such as; their professional, collaborative, staff
members and customers with their innovative approach in projects (Bijker and et. al., 2012).
Along with this, make the employees happy and provide highly training system for motivating
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them in order to deliver qualitative work as well as to get committed towards service. Basically,
main target of an organization are businessmen’s, public sector as well as some high income
group of people for engaging in a large contract with them in order to maintain long term
relationship. Therefore, company is focussing on Geo-demographic market segmentation
through which they can focus on two types of customers such as; quantifiable population and
physical location or region.
Now company wanted to launch its new business or venture into selling construction
materials and related equipment’s by establishing their shop on Oxford Street of London which
is considered as one of the most famous market. Basically, this street is one of the busiest roads
of London because large number of visitors is come there for purchasing their desired products.
In fact, this will be beneficial for success of an organization because minimum number of
competitors is available as materials related with construction are mainly selling nearby
residential area or developing region. But at the same time, Oxford Street is fully developed and
well-structured market because number of arrivals comes there for cloth shopping, accessories,
enjoying evening, had dinner, lunch and many more things. In fact, no one can expect the
presence of construction materials and equipment’s shop in this market because consumers came
there for clothing’s and foods. As a result, competition of an organization automatically gets
minimized and company can easily enjoy monopoly at there for few time periods. On the other
hand, if there is a presence of competitors then LSI Architects have an opportunity to offer
combo pack to the new members in which construction of building with its material also
involved. Therefore, customer automatically get attracted because every member will love to
complete their entire work in one place in order to gain more attention of an association as well
as able to acquire heavy discount on best work (Burns, 2017).
Hence, it has been understood that LSI Architects have a great opportunity of launching
their new venture successfully on Oxford Street. But somehow this business will acquire
maximum amount of funds in order to complete the whole project. At the same time, company
have a great turnover of around £3.5m that is really beneficial for success of an organization and
they can easily run extend its operational activities on Oxford street. This is seen as great
opportunity for selected firm to promote dual business through single promotional activity. For
example, LSI Architects is currently engaged in designing creative buildings for society,
commercial and public sector by taking materials from other business but now by offering
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construction materials this association can do these two things with double profit as well as get
succeeded in seeking attention of customers (Caselli and Negri, 2018). In fact, most of the rich
people such as; politicians, celebrities, businessmen’s and various other high income persons
wanted to contact with single party for designing their creative houses instead of meeting with
several distinct contractors.
P2 Tangible and intangible resources that required by company for launching a new venture
Resources are consider as most indispensable aspect for running any business either its
new or old, small, medium or large in order to attain set objectives or goals in a defined time
frame. In business terms, resources are classified into two different ways; one is tangible and
another is intangible. Basically, tangible are those things which can be touch, seen or felt by
business such as; land, labour, capital, stocks and machinery whereas intangible resources are
those things which are used by business while running their organization but these cannot be
touched, felt or seen such as; goodwill, patent right, trade secrets, networks and so on. Therefore,
LSI Architects also wanted to have some tangible and intangible resources for completing the
launch of new venture in Oxford Street (Fernhaber and Li, 2013). Thus, some of tangible
resource which is required to the organization during launch is discussed as follows-
 Land- First or foremost resource which is required by business for launching its new
venture is place means land where they are going to accomplish their various operational
activities. Basically, it’s a piece of property and premises which is used by organization
for carrying out their other activities. Land is also mean that the area where office of LSI
Architects is situated such as; current office of business is situated in Old Drill Hall, 23a
Cattle Market Street, Norwich, Norfolk, NRI3DY. This means, one of the most
indispensable aspects required for operating business.
 Labour- These are the members which are engaged in handling various types of works
by performing their assigned roles and responsibilities in better manner. Mainly, labour
force is a tangible resource that is needed by company for operating machines which
helps in generating input into output and helps in providing high range of profit to the
business. In fact, labours are of distinct types such as; few are skilled, some are unskilled
but some are experienced and very much talented (Hmieleski, Cole and Baron, 2012).
 Capital- It’s a source of income or finance for organization because without the
availability of sufficient funds, company cannot be able to perform its organizational
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operations. For example; heavy amount is requisite for LSI Architects to buy necessary
machines, land for establishing new business of an organization and so on. Mainly, funds
are provided by owner for generating large amount of profits by fulfilling the needs of
desired users.
On the other hand, there are some intangible resources which are also indispensable for
successful launch of LSI Architects that are discussed below-
 Goodwill – Initial thing is that image of an organization is one of the major resource that
is used by newly launched business while establishing their creative products or services
in new market.
 Intellectual property- These properties covers various rights of an organization such as;
patent, copyrights, trademarks and so on for protecting creativity of an association from
various frauds. This will help in maintaining single monopoly of an enterprise at
marketplace.
Apart from these, company is required to identify the target market, competitive analysis and
strength, weaknesses of their new venture which are mentioned below:
Target market- It means companies should choose a particular market in which customer
demand is high. Due to this organisations can get higher profitability can be achieved. Like for
new venture of above company first they should find out the market in which demand of
construction material is high.
Competitive analysis- It is a kind of analysis which is related to the evaluating the level of
competition in the market. Companies should establish their new venture in area wherein
competition is low. Same as to the LSI architects company should launch their new entity in the
low competitive market.
Strength and weaknesses of new venture-
Strength- The strength for newly launched business of LSI architects is that they have
good opportunity to grow in the market.
Weakness- The weak point is that there is huge competition in the market that can impact
their profitability.
Area of risk- The area of risk of new venture is the possibility of lower sell in the initial
stage and it can impact their sustainability. As well as due to less goodwill, it can be difficult for
the company to invest money in the promotion.
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TASK 2
P3 Credible proposal for launching a new venture
LSI Architects is moving towards plan of launching new venture in order to attain their
set objectives by fulfilling the requirements of distinct clients. Along with this, it plays a very
crucial role in launching a new venture at new marketplace by designing an appropriate proposal
for representing it in front of various shareholders. However, planning is really indispensable for
the success of overall strategy because it aids in controlling probabilities of mistakes or errors
(Kariv, 2013). Thus, LSI Architects design an impressive proposal while launching a new
venture which covers several necessary elements that are described as follows-
LSI Architects
Executive Summary
This company is dealing in architecture field by designing various types of creative
buildings for commercial and public sector in order to enhance the communities and
buildings. Main objective is to come up with innovative ideas for making the building more
attractive and impressive.
Target Market
Oxford street is one of the busiest roads of London as number of visitors comes there for
shopping purpose, enjoying the evening and so on. In fact, this market helps in attracting
large number of consumers by offering them with best combo offers and additional
discounts by entering into certain contract.
Competitors/Market Analysis
An appropriate model is used for assessing external and internal market such as; SWOT &
PESTLE. In fact, this will help an enterprise in understanding competitors available at
market in order to design organizational strategy in better manner for seeking the attention
of desired consumers.
Human resources
Skilled employees, creative designer, management team, labour and many other staff for
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proper accomplishment of business operations.
Financial Project
Accurate funds are really indispensable and sufficient capital for smooth functioning of an
enterprise. Along with this, finance is initial step of every organization in order to
accomplish set objectives. However, company have an option of raising funds through
distinct sources such as; equity, preference shares, debentures, bonds and bank loans.
Benchmarking
By setting benchmark, an organization needs to set target for motivating employees
towards goals and complete the project in a defined time frame.
P4 Skills and capabilities required for launching a new venture and way of developing it
Employees are playing major role in success of an organization because all the business
activities are managed and regulated by them only. Therefore, it is essential to hire skilled and
knowledgeable staff members for managing all the business activities of an organization as well
as perform several functions to develop it in proper manner. However, LSI Architects are
engaged in designing various creative buildings for whole society in order to enhancing
community (Klotz and et. al., 2014). Thus, some of the essential skills and capabilities requisite
for launching a new venture are discussed as follows-
 Risk taker- First or foremost person who is requisite in business is risk taker who is
mostly entrepreneur because owner of an organization always comes from distinct
projects and ideas in order to generate maximum revenue by satisfying consumer needs.
In this process risk is needed to be evaluated very keenly so that so that an organisation is
bale to over come risk which is associated with business operation. Such as investment,
financial, marketing risk and technical risk etc.
 Manager- Management is most indispensable person for success of an organization
because they are responsible for managing things in suitable manner. This thing helps
staff members in attaining set targets in a defined time frame. Herein, it is necessary for
mangers of a particular venture to evaluate business operation and function effectively so
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that they can plan strategies according in order to achieve its goals and objectives
effectively.
 Creative person- Person is full of innovative ideas aids in enhancing business
performance by coming with unique thoughts for designing impressive buildings. In an
organisation, it is necessary to have a creative person that effective and useful ideas and
innovation can be attained. With the help of creative evaluation an organisation can have
attractive ideas in their product and offerings in competitive marketplace.
 Leadership skills- Staff members are having distinct minds and opinions towards certain
subject due to which conflicts might incurred between employees. Therefore, it is
essential to hire one person or leader for resolving issues which incurred between various
members while performing business activities (Kuratko and Hornsby, 2017). Moreover,
with the evaluation of various leadership skills an individual can deal with various
problems or unexpected situation in an attractive manner. Thus, such skills are necessary
as it help an organisation to achieve its targets within stipulated period of time.
 Networking- This is very essential to launch a new business that responsible person
should have good networking skills. It means he/she should be able to make relations
with the external stakeholders.
 Problem solving skills- It is also important that, all the members should have problem
solving skills so that they can not stop due to any critical issue. Like in the above
respected company, they should have the skills to resolve any issue.
Apart from this, various members are identified at workplace which are playing crucial
role in success of an organization. All the individuals of an association are having their own way
of working and perform their assigned job role in better manner.
TASK 3
P5 Different promotional activities and channels as well as justification of selected channel
LSI Architect is a new venture which is going to be launched in the market. For the
organization it is very important to use effective marketing and advertising techniques and
channels so that large number of people get aware of the company. Promotions can help to Some
of the selected promotional activities and channels are described below that can be used by LSI
Architect:
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Newspapers: As the business is a new venture hence the organization may choose
newspapers to promote itself. It will cost less and result in awareness of large number of
customers. Newspaper promotions result positively for LSI Architect by providing information
of new business to large number of people.
Television: It is an easy and effective method of promotion in which large number of
customers can be targeted by the organizations in order to promote themselves. It cost high but
results in large number of customers for the businesses. This option can also be adopted by LSI
Architect to promote itself (Morris, 2015).
Online promotions: In such type of promotions business create their own website and
attract customers by providing them impressive deals. Interested individuals may visit sites and
then they can gather appropriate information form that website that can be used by them in future
to make buying decision. This type of promotional activity can also be used by LSI Architect in
order to promote the new venture which is going to be launched in market.
Social Media: It is the most effective and cheap method of promotion in which
organizations do not have to make investment and it helps to promote business easily. It is the
best way to attract customers by providing them appropriate and accurate information of
business projects. This method can be used by LSI Architect for promotions as it is a new
venture and the main requirement of the business is to attract large number of customers so that
success can be achieved easily (Read and et. al., 2016).
Justification: From all the above described methods LSI Architect can choose social
media as a promotion channel and technique because it does not cost for the company. It is also
very beneficial for the organization to directly contact to the individuals who are sowing interest
in business projects that are offered by LSI Architect. It will result in large number of customers
in future because it is the most effective and easy way to reach people. Social media is used by
most of the people in current hence it is the best technique for a new business to aware customer
about itself.
P6 Promotional activities plan for both launch and pre-launch of LSI Architects
It is one of the crucial aspects for LSI Architects to make an appropriate design of their
promotional activities for both pre and post launch of the business. It significant for the company
because of attaining high competition is exist in the market and just like this firms plenty of other
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are also present in the market with good customer base. Thus, launch events tend to provide
latest opportunities to create interest of client towards starting of their new business.
Pre-launch promotion: This would consist of effective process under which all the
activities are designed before the opening of the business. It consists of formulation of
networking websites through which company can easily communicate their operations with the
customers and provide all their essential information regarding their products and services, prices
and other facilities those are available with the LSI Architects company. By the help of this LSI
Architects company can easily be able to organise their resources and determine their risk factors
those are coming at the time of launching their business into the market (Robb and Watson,
2012).
Launch: During the time of making decision to host opening ceremony in which all the
media representative and celebrities are invited to garb maximum attention of public are also
planned by the company. With the invitation of media person the news is being published in
various advertising mode such as newspaper, TV and radios. It would create maximum changes
of popularities among the people regarding the services that are offered by the LSI Architects.
By the grand opening parties, it could tend to deliver opportunities to bring effective ideas with
client to make their intention among this particular company (Launching a new venture 2018).
Promotional activities for launch and pre-launch- This is necessary to conduct various
kind of promotional activities before launching any kind of product. Like in the above context
they want to launch a new business for which below promotional activities are necessary:
Organise a pre launch- It is very necessary to organise a pre launch programme for all the
internal stakeholders. This is why because it can help in communicating the awareness about the
newly launched business.
Increase organic visibility- It is a kind of activity which is related to the creating a brand
image in the mind of customers so that goodwill can increase. Like in above respected company,
they are required to increase popularity of new business as much as possible.
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TASK 4
P7 Itemised monthly cash budget for Pre-launch phase of venture and first 12-18 months
preceding launch of venture
Cash budget covers all the information related with expenses which is incurred by
business while launching a new venture at Oxford Street. In fact, this will help an organization in
performing smooth functioning of a company by allocating sufficient amount of funds to distinct
business activities of an association. However, this will provide an appropriate opportunity to
management of company in order to manage their day to day cash in suitable manner by
considering necessary facts or figures (Simon and Shrader, 2012). Therefore, it is essential for
LSI Architects to design an effective cash budget in appropriate manner by considering relevant
facts or figures.
Cash budget of LSI Architects before launch
Year 2015 Jan Feb Mar April May
Raw material sales 42,152 42,563 43,526 43,568 44,124
Machinery Sales 19,751 12,451 12,456 13,452 14,528
GROSS SALES (Total) 61,903 55,014 55,982 57,020 58,652
COGS
Raw material 14,525 14,046 14,364 14,377 14,561
Machinery 6,515 3,113 3,114 3,363 3,632
GRAND TOTAL 21,040 17,159 17,478 17,740 18,193
GP 40,863 37,855 38,504 39,280 40,459
General and
Administrative
Workers’ Salaries 15,476 13,754 13,996 14,255 14,663
Management Salaries 3,400 3,400 3,400 3,400 3,400
Employer
Taxes/Benefits (15%
2,265 2,058 2,087 2,119 2,168
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