Unit 28: Launching a New Venture - Detailed Business Report

This report details the launch of a new venture, specifically a healthy drink business, addressing key aspects of entrepreneurship. It begins with an investigation of the venture, including identification of target markets (demographic and geographic segmentation in the UK) and a competitive analysis using Porter's Five Forces. The report then determines the tangible and intangible resources required, such as building, investment, equipment, goodwill, and brand image. A credible proposal is presented, outlining clear objectives, target market identification, competitor analysis, a budget, financial projections, a marketing plan, and strategies for maintaining customer relations. Furthermore, the report assesses the skills and capabilities needed to launch the venture, including technical expertise, knowledge of Ayurveda, and the concept of bootstrapping. Finally, it explains promotional activities and channels, like using free or low-cost resources, and develops a promotional activity plan, including a monthly cash budget for the pre-launch phase and the first 12-18 months. The legal form of the venture is also suggested.

Unit 28 Launching a
New Venture
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.....................................................................................................................1
P2 Determine specific tangible and intangible resources that would be required for the launch
of a new venture...........................................................................................................................3
P3 Produce a credible proposal to launch a new venture............................................................3
Task 2...............................................................................................................................................5
P4 Assess the skills and capabilities required to launch a new venture and how they are
acquired or developed..................................................................................................................5
Task 3...............................................................................................................................................6
P5 Explain different promotional activities and channels that will support the launch and
justify their choice.......................................................................................................................6
P6 Develop an appropriate promotional activity plan for both launch and pre-launch...............7
Task 4...............................................................................................................................................8
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the
first 12–18 months preceding launch...........................................................................................8
P8 Suggest an appropriate legal form for the venture stating why it has been chosen................9
CONCLUSION..............................................................................................................................10
REFERENCE................................................................................................................................11
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INTRODUCTION
In changing environment, there are many organisations, selling different types of products
and services that can help to increase the organisational productivity and profitability. Starting a
new venture is an activity which is done by business concern for starting their own organisation
by understanding demand and needs of customer which supports to establish a business
(Busenitz and Lichtenstein, 2019). To increase the insights about new venture started that name
is HEATLHY DRINK that will be beneficial for people and will help to increase the
organisational productivity. The reason behind starting this venture is now a days people are
facing the Pandemic situation that is Covid 19 that is a big diseases and people are dying sue to
low immunity power. This organisation will provide healthy drink which are made of Giloy,
Tulsi, Ayurveda roots and Aloe Vera and others that keep healthy and increase the immunity.
This report covers range of resources that are required to launch a new venture, skills and
capabilities required, justify promotional activities to support to launch, legal form and compile a
budget for launch.
Task 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis.
The venture idea and how it represents a business/social enterprise opportunity
HEALTHY DRINK is a newly venture that is started to sale the healthy juice to
customers which is made of Aloe vera, Giloy, Tulsi and other Aurveda green that will helps to
provide a good life and boost their immunity will help to increase productivity and profitability.
In changing environment, people are health consciousness who wants to live healthy and good
that can help to maintain the good new business and increase the productivity. This is an
opportunity for selected organisation that to increase the number of customers by offering the
best drink and will protect from serious diseases (Zu, Diao and Meng, 2019).
Target market means potential customers who are demanding different types of products
and services, provided by organisation in order to sale their products. For instance, HEALTHY
DRINK is small size venture that is selling the juice for keeping healthy people and protect them
from Covid 19. This organisation is targeting the potential customers that are segmented on
demographic and geographic basis. In Demographic business owners are targeting all ages group
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of people and geographic segmentation covers greater London and may areas of UK by
establishing a small business that will help to increase the organisational brand image (Alexander
and Joe, eds., 2019).
Competitor Analysis
Porter’s five forces – This is framework which is uses by organisation in order to run the
business and increase the organisational productivity. By using this organisation can get
competition in business environment that are as defined:
Bargaining power of buyers – The power of buyers in context to HEALTHY DRINK is
low that will help to provide the opportunity to run the business and increase the organisational
productivity. In UK, all people are health consciousness and wants to get rid of Covid diseases so
they are ready to pay the high amounts for such healthy juices and helps to increase the number
of customers (Weber and et. al., 2019).
Buying power of suppliers – Suppliers are those who are selling the raw material to
manufacturer and business owners at different prices. For making healthy juices the chosen
organisation needed fresh fruits, green vegetable, ayurvedic roots, Giloy etc. which are providing
by suppliers. The bargaining power of suppliers in low because number of suppliers are available
in market who are selling products at different prices. HEALTHY DRINK can select best seller
who can provide raw material at less prices.
Threat of substitutes – This means substitution of product that can help to use instead of
original products. The threat of substitutes in context to HEALTHY DRINK is high because
there are many juices, coffee, dinks and beverages which can be used instead of healthy drink,
this can be challenge for newly organisation to attracts the customers and sale their products.
Competitive rivalry – The threat of competitor in context to HEALTHY DRINK is high
such as Amazon, Tesco, Coca cola, mcdonald etc. who are providing food and beverages as
customers wants with different packages and prices that attracts customers and increase the
organisational productivity. This can help to improve the business and maintain the high
performance.
Threat of new entrants – This means entry of new customers for HEALTHY DRINK is
high as any one are allowed to establish their own venture and can help to increase the
organisational productivity and brand image. For chosen company it becoming a challenging
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point to establish their own business and make the competitive advantages (Abert, Lunderøy and
Radmacher, 2019).
P2 Determine specific tangible and intangible resources that would be required for the launch of
a new venture.
To start a new venture there is need of many resources which are important to run and
can help to increase the organisational productivity. Resources are those needs which can be uses
to maintain and run the business by offering required products and services. This can help to
improve the business performance and maintain the good performance by performing all
functions and increasing profitability. Resources are of two types which are required to launch a
HEALTHY DRINK that are as defined:
Tangible resources – This refers as physical assets by involving cash, inventory,
equipment, land, building and investment that are uses to run business and increase the
organisational productivity. For management of HEALTHY DRINK, is required to have a
building, investment, equipment, working staff and inventory that are uses to made the healthy
juice and increase the business performance (Rossi, Festa, Papa and Scorrano, 2019).
Intangible resources – This means resources and assets that can be feel only and cannot
see are considered as intangible resources. In context to HEATLTHY DRINK, goodwill, brand
image, planning, social needs, fresh environment, feel healthy and marketing activities are
consider as intangible resources that can help management to establish their own business and
increase the organisational productivity in competitive business environment. The management
of such organisation are delivering better quality of healthy drink by considering natural roots
and leaves which help to boost immunity power of their customers.
Therefore, to starting a HEALTHY DRINK, there is need to tangible and intangible
resources that can help to improve the business and boost the immunity power of people. This
will help to increase the brand image and market share by expanding business as customers
would be satisfied from this new drink and business.
P3 Produce a credible proposal to launch a new venture.
Credible proposal is a document of company which is prepared by management in order to
start their own venture and run the activities properly. This can help to increase the
organisational performance in competitive environment establishing all activities properly. In
other words, this is important for organisation to build a customer trust, retaining them and
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increasing productivity is possible through credible proposal that helps to increase the
performance. This plan is prepared by managers of organisation that give full details of activities
which are required to perform a business. To start a HEALTHY DRINK a credible proposal is
defined below:
Having clear objectives: The main objectives of HEALTHY DRINK is to protect the
customers from Covid-19 and other diseases such as diabetes, sugar etc. that can reduce the
death rate (Galli, 2020).
Identify the target market: For making the credible proposal the management of chosen
organisation has identified market as demographic and geographic that can help to increase the
number of customers.
Analyse the competition – HEALTHY DRINK is newly venture which should be analyse
the competitor who are also selling the healthy juice and beverages to customers and increasing
performance (Rottenburger and Kaufmann, 2020).
Budget – For establishing new venture of healthy and Ayurveda drink should be prepared
a budget by estimating the amount. In context to HEALTHY DRINK, managers has prepared a
budget as total estimated amount is 400 GPB that is required to establish a business.
Identifying goals and financial projection – Goals are decided by chosen organisation
who analysis the needs and make financial projects that helps to operate the business and
increase the productivity in competitive business environment.
Discuss the marketing plan – To start and venture and managing activities HEALTHY
DRINK needs to make the marketing plan and strategies which can help to improve the
organisational productivity by attracting customers which can help to increase production and
market share.
Maintaining good relations – HEALTHY DRINK needs to maintain to good relations
with customers and others that can help to retain that can help to start venture and taking
competitive advantages.
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Task 2
P4 Assess the skills and capabilities required to launch a new venture and how they are acquired
or developed.
Skills and capabilities are two thing which is required in people and business concern in
order to establish a new business and running existing one. A person who wants to start their
own business needs to have different skills and capabilities that can help to perform all functions
and managing the activities in context to complete task and attaining the business goals.
Importance of building credibility in starting a venture
Credibility is important in every organisation that can help to increase the number of
customers automatically and maintain the business effectively. In context to HEALTHY
DRINK, credibility is required to start a venture that involves some aspects such as:
Addressing risk factors: This means risk that arises in starting the venture such as
capital arrangement, resources, skilled workers, fresh raw material and trust of customers that
can help to perform all activities (Cavallo, Ghezzi and Balocco, 2019).
Responding change: Thus is another factor that needs to perform by responding changes
properly which can help to bring changes according to customer demand which helps to run
business appropriately.
Concept of Bootstrapping – This termed as business refer to process by using existing
resources such as personal saving, personal computing equipment and garage space to grow the
company. This can help to improve the business performance in competitive environment and
dealing with problems. Booststrapping are as defined such as:
Making use of free or low cost of resources – This means an activity which is run by
business concern in context to HEALTHY DRINK that can to make ready the Healthy juice at
low cost and made of natural leaves that can keep healthy and good performance.
Leasing and renting – To start a business and running it properly there is need of
financial resources that can be arrange by giving property on lease and rent that helps to operate
the business and increase the organisational productivity in competitive business environment.
Skills and capabilities required in starting a HEALTHY DRINK
Technical and intelligence - To make healthy juice and starting a venture there is need
of technical and intelligence that can help to operate the business and increase the productivity.
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Knowledge about Ayurveda and biology – This skills also re4quired to establish a
HEALTHY DRINK that can help to provide the juice according to diseases that can keep healthy
and safe to people (Margrain and Hultman, eds., 2019).
Task 3
P5 Explain different promotional activities and channels that will support the launch and justify
their choice.
Promotion is the activity that performs by a person in order to run and increase the
number of customers by promoting the products. HEALTHY DRINK is newly established
company that is required to use the marketing and promotional channel appropriately that can
help to manage the performance. The chosen organisation is using marketing mix to promote
their products that support them and increase the performance that are as defined:
Product: HEALTHY DRINK is providing natural leaves juices for the purpose of
stopping the Corona virus and other diseases which is a big problems for all countries.
Price: The prices of juice is £ 50 per glass that will help to boost the immunity power of
people and help to fight against problems (Ghezzi, 2019).
Place: The products and services which are providing by HEALTHY Drink are
providing in London, UK that will help to keep safe the people.
Promotion: This is important activity which will uses by management in order to deliver
best quality of products by informing people, The selected organisation is using print media,
social media, magazines, pamphlets etc. that will help to promote the products and services in
certain time.
Process: This organisation is using online process that can help to reach the potential and
targeted customers effectively.
Physical evidence: The structure, sitting arrangement, juice and other activities (Jafari-
Sadeghi, Kimiagari, and Biancone, 2019).
People – Marketing manager, salesman, manufacturer, owners, finance manager,
cleaning people etc. are involved in business activities that helps to operate the business and
increase the profitability.
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P6 Develop an appropriate promotional activity plan for both launch and pre-launch.
Promotional activity plans is refer as activity that is prepared by management in order to
run and increase the business productivity. This can help to manage the activities and make
profits properly by comparing with actual.
Prelaunch promotional plan for HEALTHY DRINK
Understanding the needs Ti start any venture there is needs to understand the
demand of customers. As HEALTHY DRINK analysed
that people are demand natural juice that can keep them
healthy and fit by fighting against diseases.
Using emails and other sources For prelaunch there is need to provide the email that can
help to provide the information and message regarding
juice and maintain the good performance.
Build Buzz with social media The management should build the customer relationship
by using social media and video clips etc. that can help to
operate the business and increase productivity.
Have an event around launching HEALTHY DRNK should organise an event that can help
to prove the information regarding products and services
(Tuomisalo, 2019).
Promotional activities after launching the product such as HEALTHY DRINK
HEALTHY DRINK is established for the purpose of reducing diseases and increasing the
immunity power of people that can help to increase the performance. The manager chosen
organisation are using cost effective promotional techniques such as social media, online
promotion like blogs, Twitter, podcasts, video clips, virtual tours and image caption that can help
to attracts the customers and increase the business performance. This also keep healthy and safe
the people by providing healthy juice.
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Task 4
P7 Produce an itemised monthly cash budget for the pre-launch phase of the venture and the first
12–18 months preceding launch.
Cash budget – This is a plan which is prepare by management in order to know the cash
receipts and payments that can help to run and maintain the business. This is important for
organisation to prepare the cash budget that can help to keep records of cash and its related
activities. HEALTHY DRINK is preparing the cash budget for pre-launch phase that are as
defined:
Cash budget for the year
Break even point – This is a framework that uses by organisation to know the
profitability at a fixed pint. This is beneficial for organisation as it shows no profit and no loss
situation that can help to manage the performance and increase the productivity.
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P8 Suggest an appropriate legal form for the venture stating why it has been chosen.
Legal form of business – A business is established under the legal form that is important to
run and go ahead. This provide a support to run and maintain all activities and increase the
business performance in competitive business environment. HEALTHY DRINK is formulating
the business under the following legal forms that are as defined:
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Sole trader – This means whenever a business is established by single person and have own
control is called sole trader.
Limited company – This means a collection of people who have entered in to business as
per limited liability and performing the activities which helps to operate the business and
increase business performance.
Partnership – This means more than two people are working collectively in order to run the
business and increase business profits .
HEALTHY DRINKS chosen the sole trader legal form that can help to manage the business
and activities and increase the brand image by providing fresh and healthy drinks. This can help
to improve the situation which are facing by people and increasing sustainable advantages.
CONCLUSION
From the above report it can be concluded launching a new venture is a activity which is
run by a people in order to run business and increase the organisational productivity. Cash
budget and break even analysis are uses by company to know the financial position. Resources
such as tangible and intangible are uses to make successful venture and complete the task. To
increase the business performance and satisfaction to customers skills are capabilities are needed
to work well and helps to manage the activities.
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