Analysis of Business Essentials and Strategies for Mnaada Company

This report provides a comprehensive analysis of business essentials, focusing on the startup of an e-commerce company named Mnaada. It delves into various aspects of the business, including online marketing strategies, the importance of location, and the competitive landscape. The report highlights the company's unique selling points, such as quality goods at reasonable rates, one-day delivery, and the option to check orders in front of the courier. Furthermore, it discusses the primary and secondary objectives of a business, the most suitable form of business (partnership), and the PESTEL analysis to understand the external factors influencing the business environment, like political, economic, social, technological, environmental, and legal aspects. The report concludes by emphasizing the significance of these factors for the company's success and providing insights into how Mnaada can navigate challenges and capitalize on opportunities.

BUSINESS ESSENTIALS

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
PART A.......................................................................................................................................3
PART B.......................................................................................................................................4
TASK 2............................................................................................................................................5
TASK 4 ...........................................................................................................................................8
TASK 5 .........................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFRENCES ................................................................................................................................11
Books and journals ...................................................................................................................11
Online .......................................................................................................................................11

INTRODUCTION
Business essentials refers to all the necessary elements which are useful in set up of a
business. Along with this all the factors also which affects business directly or indirectly. So,
business essentials are compulsory for starting a business and it helps in providing growth to new
venture(Anderson, 2014). Present report is based on idea development which helps in starting
up a new business venture. Also, it includes that what type of business is, its location and how it
is going to operate. All such things are involve in business essentials. It also helps in establishing
business objectives and targets which company wants to achieve. Budget is also being a
important part of business essentials because it helps in estimating the amount which is going to
invest in start up.
TASK 1
PART A
Online marketing is the one of the modern idea which helps in increasing the profit with
low investment. It can be set up at large scale without much issues. This sector helps in gathering
large number of buyers at one stage. Online marketing is only be successful because of the
technology up-gradation. Vast number of people are using internet in this modern world and this
is the key factor which helps in starting up this type of venture(Wilson, 2014).
It does not need a proper location but it can be operate from anywhere but for consumer
faith and trust entrepreneur have to set up its main office which doe not need to be establish at a
place which is attractive. So, location is not a big factor which is going to affect business so
much.
This is one of the best idea for starting up this type of business because of the large
number of internet users which are increasing day by day. There are many firms which are
already engaged in such type of business like amazon, flip-kart etc. They are already established
name in this sector and they are going to affect business so much. But if idea is innovative and
new, then there is no fear of any competitor. Present report is based on the Mnaada which is
working in as an e commerce company and deal with any type of goods and service. There are
already many e marketing companies establish in competitive market but this company is
providing quality goods at reasonable rates to any group of people. They also work with local
vendors so, they are helpful in earning profit to small vendors. The major thing which

differentiate this company from others is that they provide quality goods whether they are related
with any brand or not on reasonable rates for every group of society(Abramowicz,2012).
On the other hand amazon, flipkart is only dealing with branded goods usually with high
rates. This made quite difficult for lower class people to buy products.
Company also provides facility of placing an order in one day in local and give guarantee
of checking order in front of courier boy which is not given by other companies. This is their
USP and this helps in their business growth.
All such factors like one day delivery, open order in front of courier boy and many
warehouses helps in increasing the growth as well as also helps in taking the consumers in good
faith for their company. These facilities are only provided by them not by other business
ventures. Hence, it may be help them in their business. Another facility is use of Promo-code,
which helps in giving discount or cash back to target customers. This service helps them in
attracting many clients from other countries also due to getting rebate. This is another key
facility by Mnaada which is not giving by other firms. Organisation main motive is to grab
many consumers on the global level(Woiceshyn, 2011).
PART B
A business should have to be run on some objectives which help in it success. There are
basically two objectives of any business:
1. Primary objectives
2. Secondary objectives
These objectives helps in the growth and success of organisation and also leads to keep
their customer satisfied for all the needs.
Primary objectives are those which helps in identify the marketing purpose for your
company. These objectives help in making the presence of a company in the competitive market.
Some of the primary objectives are as follow:
1. Brand building: This ensures that a new brand is introduced in the market. So, Mnaada
have to introduced themselves in the market with a new brand and maintain their brand
name by doing ethical activities.
2. Advertising: This is a type of promotional activity. It helps in getting aware about the
new company of market(Janssen and Tan, 2012).

3. Provide information about product: Cited organisation have to provide necessary
information about their company to the general public. So, that they can believe on that
new venture. It also helps them in getting aware about all the policies and offers which
they are going ton introduce.
4. Provide customer support service: Company have to provide customer support service to
their consumers. So, they can easily communicate about their problems and issues related
to product which they order.
Secondary objectives refers to implement primary objectives and do some activities
through which they can be easily attain. The objectives of secondary objective are as follow:
1. Company have to design their websites attractive and friendly which helps in repeat
traffic.
2. Product are to be managed in design in such a manner so, consumers get facilitated from
them.
3. Convert visitors into potential customers so, that they can purchase easily.
4. Having incorporated e mail facility which helps in converting potential customers into
buyers(Harison, 2012).
There are different forms which can help in starting of a business like sole proprietor,
partnership etc. For e commerce partnership firm is suitable for this type of business. It helps in
distributing the risk and also helps in interacting with sellers. An individual does not have so
much contacts but if they start partnership firm then their contact will also increases.
This form is suitable because it helps in distributing the risk and investment by
incorporating a business. The two best example of this type of firm is Warner Bros. and
MacDonald. Both are the leading firms who earns higher profit. Along with this they also
distribute their risk equally or according to their shares. Warner Bros. Produced movies whereas
MacDonald is the leading food chain organisation. Both of these are referred to as the best
example of running a partnership firm successfully.
TASK 2
Any business can get success if all the conditions are in favour of an organisation. But
sometimes situations got unfavourable which further leads to business failure. Some factors
which are affecting business environment can be political factor like if government introduced
some new laws which are not suitable for business then business got affected.

So like that political factor there are certain more factors which influenced the business
and an organisation have to work on it. Mnaad have to do PESTEL analysis which helps them in
knowing that what kind of environment is suitable for their business and how their firm get
affected by such factors(Hanafizadeh, 2012).
Political: This factor of analysis affects by the government decisions. These decisions may be
affects business or may be plays an important role in its growth. So, this PESTEL analysis factor
benefits and impacts are as follow:
Impacts by political factors are as follow:
1. If there is lack of political stability in a country then it is going to affects the business.
Because every government establish some new rules and regulations for business which
are going to affect business so much.
2. Changes in tax rate also affects the business. If government rise the tax rate of export
then , companies have to sale their product on high rate because if they do not do so then
they will have to suffer loss. Cited organisation already sale such products which are low
range but if government going to take such decision then it is treated as the negative
effect on company.
Significance by political factor are as follow:
1. Political stability helps to cited organisation to establish their warehouse in their country
and provide some rebates on doing business in their country.
2. Stable government will support to e commerce companies because it helps in expansion
of their business(Helander, Jussila and Kärkkäinen, 2013).
Economic factors: Mnaad performance depends upon on the situation of country where they are
operating their business. The changes in the economic trends and conditions are considered in
this analysis.
Impacts of economic factor:
1. At the time of recession, people less engaged in doing exchange activity. They save more
and more amount for their routine activities. This affects the business because their sale
got decreased.
2. Inflation also affects business which can be occurred due to government policies.
Producers will going to sale their products on high rates.
Significance by economic factor:

1. Online business helps in improving economic condition because they helps in
contributing more by using small vendors. Which helps in reducing inflation rates.
2. Disposable income helps in increasing the purchasing power of an individual which helps
in increment of purchase by customers(Smith, Mills and Dion ,2012).
Social culture factors: Impacts of social culture:
1. Some people in society do not prefer online marketing because their thinking is that they
will not going to get appropriate product which they really needed. This affects the online
business in attracting less consumers.
2. On the other hand some consumers have thinking that online marketing is a source of
fraud and cheating. That's why mostly people do not prefer online shopping.
Significance of social culture:
1. Online buying promotes technology. So, it helps in creating more and more attention of
online marketing and technology in people. Another thing it helps in creating online
buying habit in target customers(Zandi Hung, 2013).
2. Social factors also helps in increasing business.
Technological factor: Online marketing is getting place only with the help of technology.
Technology expansion helps to a business in its growth.
Impacts of technology:
1. Mostly people buy online things but sometimes it leads to increase in cyber crime. Some
companies did fraud and not supply order goods to final consumer. This affects the
people preference for choosing online marketing option.
2. Another thing which impacts the business is rapid change in technology. It force
company to use new technology on the place of existing technology.
Significance of technology in online business sector:
1. It helps in increasing IT efficiency.
2. With the rapid change in technology it helps in the more and more production with
quality.
Environmental factor: Company have to take care about the environmental related issues which
affects business more. So, firm have to use such type of technology or methods which do not
spoil the nature(Kock, 2014).
Impacts of ecological factors:

1. If business is using such factors which harm the environment, then many people will
going to boycott their goods. It leads to affects the profitability of business.
2. Environmental crises are also going to affects business because it leads to affect
connectivity, transportation etc. other services on which business is depend.
Significance of ecological factors:
1. It helps in increasing the less carbon used product in the trend which helps in avoiding
such components which affects environment.
2. They have to focus more on sustainability.
Legal factors: These refers to all such activities which legally bounds an organisation to work
freely and enforce then to work in favour of their customers.
Impacts of legal factors:
1. Legal factors bound an organisation to work according to their own will. It leads to affect
many decision taking by a firm(Philippar and Karwowski, 2011).
2. Company can be sued by their customer if they are not going to find appropriate product
which they ordered.
Significance of legal approaches:
1. It bounds a company to sale appropriate product to the final consumers otherwise it may
leads to affect their name.
All such factors affects business externally and enforce them to think about the society and
environment. So, that they can earn more and more profit.
TASK 4
Marketing plans to be maintained according to the competitive market. It helps them to
establish such type of strategies which are useful for an organisation in it success. The 4p's of
marketing are al;so helpful in effective marketing strategies according to the business
environment specially for the new company. Marketing objectives are to be established
according to the nature of business. For e commerce company there are usually two main
objectives which are primary and secondary. These objectives help in establish a brand image
value in the eyes of public(Mosadeghrad , 2014) .
Like company generally offer low rate goods for their customers so, large range of
customers can be achieved with the help of that. Along with that they are also work on quality

which is beneficial for them. Because no one is selling products on low rates with high quality.
But mnnad is doing so, then it can be the major advantage for those.
Also they are working for their customers 24*7 with customer support service. All such
factors are included in the marketing objectives.
Hence, they are electronic marketing company so, they have to work on such issues like
fraud claims etc(Mohammad ,2014).
Company is targeting whole world as their market because it helps them in increasing
their profit. Global market helps them in attain large range of customers with more and more
profit. There are many customers at the international level,so, company have to provide quality
base products for each group of consumers. Also company is focusing on not to spoil natural
things and use green and eco friendly things. Their major work is to target each group of people
whether they are wealthy or lower class.
Cited organisation target each and every segment of market, they offer product which
have a value for each sector. They generally deal with products which are affordable for lower
class segment and branded products for higher class people. Both groups helps in maintain the
profitability of business and helps in providing growth to them.
Strategy is maintained according to both the sector but mainly organisation focused on
high class consumer because their products range is high so profit earning is also high. Company
can communicate with them by advertising and customer support service it helps in knowing
about the product to them easily without any problem. Company can use digital marketing,
online promotion of their product. It helps in attracting large range of customer. Along with that
they can use celebrity for promotion so, it also helps in attracting many target segment
consumers(Malhotra , Birks and Wills, 2013).
Further more by using 4p's of marketing it helps in differentiate company product in
market. The 4p's of marketing are as follow:
1. Product: They are providing high quality products on low rates which help in attain target
market customer. This approach is beneficial for them.
2. Price: The second p of marketing states the price of a product. Company choose low price
scenario for their customers. It helps them in gaining target customers.
3. Place: They usually have their warehouses at every location so, it beacme easy for them
to provide product at right time.

4. Promotion: In their event launching they use international level celebrity which helps
them in their vast promotion at global level.
The 4ps of marketing helps in making the product available to each and every customer.
The strategy formulation have to be based on such customers which are targeted by the firm.
This help them in increasing their sales of products. The objective have to completed in such a
manner in which they formulate(Singhhanduja, 2012).
TASK 5
Business is based on some decisions. A right decision helps in gaining more and more
profit without any risk. So, there are mainly three decisions which are related with business and
helps in operating business properly. The decision making is of three types:
a) Operational decision: These are belong to the day to day operations of business. They are
considered first while taking any grand decisions. Their nature is usually of short term but are
helpful in long term. Company have to conduct a proper communication with all the vendors so
that they can available their products on right time.
b) Tactical decision: Tactical decisions are related with the medium term. One wrong decision or
strategy leads an organisation to failure, a misguide tactical have more limited impact. Tactics
need to be more challenging. So company have to revise their policies and strategy and find out
the deviations and have to work on that(Zand, 2012).
c) Strategic decision: These are the long term in nature and usually made by the senior
authority of an organisation. It leads to affect the whole business because all strategies
are formulated by senior management and can not be challenged. They are complex in
nature and can not be changed easily.
All the three bu8siness decisions affect an organisational efficiency in a positive manner
of might be negative manner. These decisions are based on all the policies and target customers
which they want to target. Like in operational decision it helps in checking the staff regularly and
keep their work in mind that all deliveries are working on time or not. Tactical business
decisions have to be properly managed and management have to work on those by examine any
deviation. Strategies are formulated on such basis which helps in increasing the organisational
efficiency with any risk.

CONCLUSION
From the report it is concluded that changes in business is necessary. And these changes
can be examine in the form of essentials. For any new business it is compulsory for them to
introduce their brand effectively in the market which helps in doping their half work which
means consumer attraction((Hung and Chau, 2013). Also they have to work for each and every
segment of society so their profitability can be increased and they can survive more in market.
Their strategies should be based on target customers. Along with that their business decisions
should be effective.
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