Comprehensive Report: Launching and Managing a New Tea Venture

This report details the process of launching a new tea house venture, named Sunshine Tea House. It begins with a market analysis, emphasizing the importance of understanding the target market and competitive landscape within the UK's tea market. The report explores tangible and intangible resources needed, like equipment and brand image, and proposes strategies for launching the venture, including promotional activities like email marketing and Facebook ads. It also discusses the necessary skills and capabilities, such as decision-making and communication, and outlines the importance of financial planning, including cash flow and legal considerations. Furthermore, it analyzes methods for competitive analysis like SWOT and Porter’s Five Forces, along with the strengths and weaknesses of the new venture. The report concludes with an evaluation of promotional activities and anticipates the outcomes of the venture, providing a comprehensive overview of the key elements required for a successful business launch.

Launching a New Venture

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
LO1..................................................................................................................................................4
P1 Target markets and competitive analysis...............................................................................4
P2 Tangible and intangible resources..........................................................................................5
P3 Proposal of launching.............................................................................................................6
M1 Methods and techniques for competitive analysis................................................................7
M2 Strengths and weaknesses of new venture............................................................................7
D1 Analysis and reflection of competitive environment.............................................................7
LO2..................................................................................................................................................7
P4 Skills and capabilities.............................................................................................................7
M3 Range of skills and capabilities.............................................................................................8
D2 Required supporting costs and timescales.............................................................................8
LO3..................................................................................................................................................8
P5 Promotional activities and channels.......................................................................................8
P6 Appropriate promotional activity plan...................................................................................9
M4 Appropriate promotional activities.....................................................................................10
D3 Evaluation............................................................................................................................10
LO4................................................................................................................................................10
P7 Cash budget and cash flow...................................................................................................10
P8 Appropriate legal form and the reason that it has been chosen............................................12
M5 Justification.........................................................................................................................13
D4 Anticipated outcomes..........................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Launching a new venture is a very important task to a person. A person is always
required for completing many activities toproperly launch a new venture. Nowadays lots of new
ventures or businesses are daily launching within the different market places, in which a person
needs to develop a productive plan while launching a new venture. Sometimes, people face
failure while launching a new venture, because they use poor business strategies or techniques.
That’s why every person responsible for completing full market research before launching a new
business. There are strong or effective marketing research are highly required for successfully
launch a new venture. This report discusses differentstages, techniques, strategies, and laws etc.
which the management of Sunshine tea house high need to consider while launching itstea house
within the selected market place. Some specific promotional strategieshave also involved in the
report which will support to the management of tea house toeffectively promote its different
products and services in its initial stage.
LO1
P1 Target markets and competitive analysis
Target market analysis is very important task to a person while establishing a new
venture. It assists in optimizing different forces of the resources and potential new distribution
chains and regenerate different productive operations through the range of customers can be
developed within the business (Auschraand et.al., 2019). Sunshinetea house is a new innovative
venture that plans for serving customers with tea products, refreshments and different services
for providing comfortability to various customers when they visit to spend the quality time.
Sunshine tea house is high required to use various metrics, charts and paradigm for effectively
optimistic development into the tea market of the UK. For gaining large customer base within the
market, the top-level management of sunshine tea house is highly required to systematically
analyse the existing tea market of UK. According to the different business report and magazines,
currently there are lots of tea businesses or cafes are already running in the UK’s business
environment. In this situation, this new venture can face very tough competition within existing
market segment. The management of sunshine tea house has decided to target all types of

customers, because most people within the United Kingdom like to buy tea products in their
daily life.
There are substitute products may give great challenge to sunshine tea house in its initial
stage, because people like to consume coffee products and as well. For attracting lots of new
customers toward its brand, existing management of this new venture will be highly required to
offer the best quality tea products, because currently this the best way to positively influencing
people within the market. If sunshine tea house will be succeeded in positively influencing
people or customers in its initial stage, then it can easily deal with threat of substitute product.
According to some business experts, day by day there are lots of new entrants coming in the
UK’s tea market on daily basis. In this situation, existing management of sunshine tea house will
need to use some productive marketing techniques and strategies for simply stand against these
new entrants. Of course, currently sunshine tea house is also a new entrant for the UK’s tea
business sector. But it is still required use modern and latest market techniques (Mancha,Gordon
and Stoddard,2019). By taking this step, the new venture can easily deal with existing well-
established tea businesses as well.
P2 Tangible and intangible resources
There are various tangible resources can support sunshine tea house in its business
horizons growth with the high creativity and innovation. Basically, tangible resources include
different machineries, tools, gadgets and equipment etc. which the existing management of this
tea house can implement and use for effectively producing its various tea products. Without
involving tangible resources within own business environment, the sunshine tea house can’t
provide decided products and services to different customers. Various existing tea businesses of
the UK are also taking huge advantages through these tangible resources. In this situation, top-
level management of sunshine tea house has also decided to use these various tangible resources
for boosting its performance in its initial stage. There are tangible resources will give opportunity
to sunshine tea house for producing that king of tea products which can effectively attract lots of
customers towards own brand.
On the other side, upper management of sunshine tea house will be required to use
different intangible resources also while launching its new venture. There are expenses, brand
image, goodwill, patents and copyrights etc. aspects are coming under intangible resources. In

this situation, these resources also will play an excellent role for the sunshine tea house. For
example; currently huge brand image and goodwill is everything for a business or company, in
which existing management of this new venture will be required to put its huge efforts for
increasing the brand value of sunshine tea house in its initial stage (Hart, Sharma and
Halme,2016). On the other side, with the support of patents the sunshine tea house will be able to
protect its new innovated tea products and flavours. When this new venture registered its patents,
then no any other business or venture can copy the products and services of sunshine tea house.
This is the main reason that, the management of sunshine coffee house should take great
advantages through tangible and intangible resources.
P3 Proposal of launching
The proposal of launching Sunshine tea house, a new business serving the quality
products with high class innovative services through which there is a strong competitiveness has
set among the brand products. The proposal of launching will be served potential customers near
the business area where marketing strategies will be able to this new venture for reaching the
large avenues of serving customers widely. The strength of sunshine teahouse that, it is a new
venture which will provide the high-quality and healthy tea products and snacks to different
customers. Another strength of this new venture is the rapid innovation and technology standards
which uses within its internal business environment. On the other side, weakness of sunshine tea
house can be described that there is a high level of competition within the tea business in that
area which has selected by the upper management. Launching of new products and bringing
services to consumers will support customers for getting idea of different activities which
sunshine teahouse will deliver to different customers. The there is also huge competition and
preferences of customers has rapidly changed among the industry which brings the large focus
towards different sources on which there need to be achieved access.
The launching factor generally plays great role in serving customers and improving
promotion tools as it will become easy and detrimental for serving customers ethically and
keenly leverage performance, and also bring an effective technical efficiency (Bernstein, 2020).
Sunshine tea house has the role for launching its products and services to customers in various
markets by leveraging its delivery of services. On the other side, bringing productive marketing
strategies and also research perfectly in different paradigms through which further programming

of operations is developed. Sunshine tea house with launching of tea and proposal operations
will improve its reach of the business plans within customers, technically attract customers close
to the market trends and the different force which has structured in departments of business
(Sherman,2017). Also, it can be described that, generally it becomes ethic to serving customers
based on different parameters for delivering them with effective innovative marketing.
M1 Methods and techniques for competitive analysis
The new venture should conduct SWOT and porter’s five forces for properly analysing
existing competitive environment. This method will defiantly support to company for gaining
huge competitive advantage.
M2 Strengths and weaknesses of new venture
Strength of this new venture is the rapid innovation and technology standards which uses
within its internal business environment. weakness of sunshine tea house can be described that
there is a high level of competition within the tea business in that area which has selected by the
upper management, so to enter in the selected market is something risky to this new venture.
D1 Analysis and reflection of competitive environment
Existing competitive environment will give very tough challenge to this new venture, so
management of this venture should use modern and latest marketing techniques to gain huge
competitive advantage.
LO2
P4 Skills and capabilities
A person is always required to have different skills, competencies and capabilities for
launching a new venture. Basically, launch a new venture is not a small task to a person, in
which this is a very ordinary thing which everyone should be learnt. In this situation, upper
management of sunshine tea house is also required to have different skills and capabilities before
launching its new venture. Some major and important skills and capabilities has been discussed
below;

Decision-making: Effective decision-making capability is highly required for making the
appropriate decisions within the workplace, because there are always many risks has involved
while launching a new venture in the selected market (Li and Dutta, 2018). Sunshine tea house
will need to face a lot of competitors with the UK’s market, but itwill need to take some
productive decisions which can unique in the nature, so that this new venturewill be able to gain
huge competitive advantage.
Planning: The planning for the Sunshine tea house needs to be done effectively, so that it can
achieve the large market share easily, because it is very important for the overall growth of this
new venture. There is a huge competition that’s why produce a proper plan to them for entering
the market.
Communication: All the employees of tea house should have a common vision to the company
so that it will help to the company for having an excellent functioning. Communication within
the company gets in a quality of direction which need to be followed, and this will support the
company for generating huge profit.
M3 Range of skills and capabilities
These all mentioned skills and capabilities can give great contribution in properly starting
new venture. With the support of theses skills and capabilities will help to management for using
various appropriate methods while launching new venture.
D2 Required supporting costs and timescales
There are upper management of company should arrange a specific fund for
implementing these skills and capabilities in its daily operations. On the other side, there are time
period of four months is enough to develop these skills and capabilities for properly starting this
new venture.
LO3
P5 Promotional activities and channels
There are many productive channels available to the new ventures forpromotingitself in
the market. Run different promotional activities through various marketing channels is a very

necessary task to sunshine tea house (Mendoza-Abarca and Gras, 2019). There are some
productive marketing channels has been suggested below for the new venture.
Email marketing: There are e-mails which generally sent to different customers on time to time,
so that sunshine tea house will be able to attract lots of customers towards it brand. In this
dynamic and modern world, e-main marketing is one of the best ways to briefly aware people or
customers within the market. That’s why this promotional channel is very appropriate to this new
venture.
Facebook Ads : There are Facebook advertising is another better channel to sunshine tea
business, because Facebook give facility to different businesses for promoting their products and
services widely and effectively (Altman, 2018).
P6 Appropriate promotional activity plan
Pre launching of Sunshine tea house there will be an online website and handles on social
media platforms so that these can influence people for coming in when sunshine tea house opens.
It is a very necessary factor for this new venture for making a well-balanced work culture and the
company can easily capture the large market share. There have to be events held within the tea
house, so that customers like to visit in this new venture. It is very necessary for tea house for
having an excellent promotional technique, so at the end venture can easily deal with market
competition.
Launching sunshine tea house there will be a free service for customers, so that they will
be able to know attributes of its services (Rodriguez, 2016). The tea house should communicate
effectively within various people or customers in the market, so the venture can easily gain huge
people attention in its initial stage. After launching the venture, upper management should use
productive marketing techniques for highly attracting new people towards its brand. The upper
management should take suggestions for different business consultants to involve appropriate
marketing strategies in its yearly marketing plan while launching and after launching the
sunshine tea house. The venture should take reviews from different customers, so that it can find
out about changes which are currently required and developed upon. With the support of this
action, venture can easily make satisfied to customers. By considering these all factors, existing
management of sunshine tea will easily present an excellent image of its venture in the market.

M4 Appropriate promotional activities
In the pre-launching time period, this venture should use social media marketing to
effectively promote its brand. After launching, venture need to use many other ways of
promotion, like; sponsorship, affilate marketing, web marketing etc.
D3 Evaluation
These all promotional activities which has mentioned above are very supportive in
effectively promoting any company’s products and services, so that these will help to sunshine
tea house as well.
LO4
P7 Cash budget and cash flow
Sunshine Tea House mainly operates in the field of giving healthy drinks to its
customers. Developing a cash budget is necessary in order to ascertain the potential expenses
that will be incurred in the form of cash and also identify the potential earnings (Allen, 2015).
For the phase of pre- launch the budget can be developed in following manner:
Particular Amount (in £)
Technological charges 250
Personnel 300
Marketing 400
Research expenses 250
Other expenses 300
Total £ 1500
The prelaunch asset budget can be prepared in following manner:
Particular Amount (in £)
Raw Material 550

Physical Outlet (On rent) 1000
Cash 1500
Equipments 2000
Other Assets 450
Total £ 5500
Now for a period of 12 to 18 months the expected cash flow can be developed for the Sunshine
Tea House can be ascertained in following manner:
(Amount in £)
Particular Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6
Opening balance 35000 56600 83650 116850 153850 176000
Cash sales 17000 20000 25000 28000 15000 60000
Receivables 16000 18500 19000 20000 20500 21000
Sales of asset 20000 0 0 0 7000 0
Total cash earnings 88000 95100 127650 164850 196350 257000
Cash Expenses
Direct material 2000 2100 2200 2300 2000 3000
Direct labor 1900 2000 1800 1600 1800 1600
Selling &
administration o/h
4500 4200 4000 4100 3600 3900
Manufacturing o/h 3000 3150 2800 3000 2950 2500

Asses purchase 20000 0 0 0 10000 90000
Total Cash expenses 31400 11450 10800 11000 20350 101000
Net cash flow 56600 83650 116850 153850 176000 156000
The above cash flow forecast that has been developed for the Sunshine Tea House clearly depicts
that company is in a profitable situation. This is because of the innovative measures that are
being taken by the management of the company and the prime location at which the venture will
be located.
P8 Appropriate legal form and the reason that it has been chosen
Every venture that is being proposed needs to be set up in a particular format or structure that is
legally recognised and approved (Barringer, 2015). In UK, some of the common structures that
can be legally adopted by the companies can be classified as:
Sole Proprietorship: Under sole proprietorship, there is a single owner of the business and all the
profits and losses are borne by that individual owner only. This is an extremely simple type of
legal form that does not involve any complex paper work or rules but the liability borne by the
owner is too high and risk factor is also very critical.
Partnership: Partnership involves two or more persons running a business together and here the
profits and losses are shared in a profit-sharing ratio that is ascertained at the beginning of the
partnership.
Limited Liability Partnership (LLP): Here the business operates in the form of partnership but
the liability of the partners is limited to the ratio that is ascertained beforehand (Mullins, 2017).
Here the partners have the opportunity to generate profits without incurring any major liability
but it is a very expensive form of partnership.
There are many other forms available such as company etc., but the best type of form that
can be selected currently for Sunshine Tea House is the sole proprietorship form of business