Detailed Report: Launching a New Venture - F/508/0564, Nescot

This report details the launch of a new venture, Stroke Grow, focusing on its new product, 'frumpy drinks.' It begins with an introduction and proceeds to analyze the target market, emphasizing behavioral and psychological factors, and conducts a competitive analysis using Porter's Five Forces. The report also examines required tangible and intangible resources, including inventory, human resources, goodwill, and skills. A comprehensive proposal for the new product is presented, including an executive summary, market analysis, and financial projections. Furthermore, the report explores the skills and qualities necessary for launching a new venture, such as communication and decision-making skills, as well as risk-taking and managerial abilities. It then discusses promotional activities and channels, followed by pre-launch and launch plans, and a monthly cash budget. Finally, the report suggests an appropriate legal form for the venture, providing a rationale for the selection.

Launching a New
Venture
Table of Contents

INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Explain new venture identifying specific target markets and undertaking competitive analysis...3
P2 Examine the physical & non-physical resources that require for launch of new venture..............4
P3 Prepare a proposal of the new product of new venture.................................................................5
TASK 2.................................................................................................................................................6
P4 Analyse the skills and qualities needed to launch a new venture..................................................6
TASK 3.................................................................................................................................................7
P5 Discuss various promotional activities & channels that will support the launch...........................7
P6 Briefly describe the plan for pre-launch & launch of the new product.........................................8
TASK 4.................................................................................................................................................8
P7 Prepare a monthly cash budget for pre-launch phase of venture...................................................8
P8 Provide an appropriate legal form for venture and why it has been selected..............................11
CONCLUSION...................................................................................................................................13
REFERENCES....................................................................................................................................14
Books & Journal:.............................................................................................................................14

INTRODUCTION
In this computer world menu business in and on action taken place motive of running
the distance as well as earning profit at higher level. Stroke Grow, a new venture has been
launched by the entrepreneur headquartered in UK. The company provides products such as
kid’s clothes and garments baby food and many more. The new innovative product, which is
also known as frumpy drinks, which is a healthy drink for babies and kids. This report
includes identification of specific target market, tangible and intangible resources, skills and
capabilities, promotional activities and channels, promotional activity plan for launch and
pre-launch and monthly cash budget for the pre-launch. It is important to be aware of in
ocean so that all the goals and objectives as well as vision of the company is achieved within
a period of time.
TASK 1
P1 Explain new venture identifying specific target markets and undertaking competitive
analysis
Stroke Grow, a new enterprise in UK, and is being new option for shopping in
relation with kids as well as babies. Mostly healthy drinks are being need for the address for
teenagers of the elder people. But the specified entity has been able to provide an innovative
product with the help of which kids and babies will remain healthy and fit and drink named
as frumpy drinks has been launched by them. With this trending and emerging market of
retailing sector it is important to target specific market so that products is being used by the
customers in proper manner (Goldenstein, 2019).
Target Market
In relation with stroke grow, chosen entity focus on those customers mostly which
wish to buy the babies product or kids food and beverages. Further, analysis and
characteristics of target market has been explained below-
 Behavioural factors- This is the most effective of selecting the target market because
customers and market behaviour attraction sales process and brand Goodwill at
deeper level. So, the given entity focuses on expanding the market as well as growth
share by merging up with the adopting with the trending and emerging trends as well
as requirements (Younger, 2020).
 Psychological factors- These are also to be conducted as important factors as because
market is being divided on the basis of preferences, requirements, values, culture etc.
In relation with the given enterprise which is Stroke Grow targets and focuses on

middle as well as income group of people and also provide them varieties of
alternatives and options for shopping products.
Competitors Analysis
Competition is also essential part of business because it triggers new changes and
businesses to provide better services as well as products to their customers. Competitive
analysis assists new ventures to understand the markets difference and effectively established
positive relationship with forces that affect the business growth. So, Porter Five Forces
Framework has been used for the computer analysis and is explained below
Threats of substitutes- These are to be considered as those products which satisfy me
total satisfaction of customers as compared to their adopted product from the same brand or
other brands. Range of substitute depends upon the characteristics and value of the product
within the market. In context to Stroke Grow, they also have substitute of other products such
as Mother-care also provide babies food and other services at affordable rate. So, it is
important for company to focus on their new products that customers are attracted at larger
scale (McGee, 2019).
Threats of New entry- With new changing time and emerging market many new
businesses enter into the same business with motive of providing the same products and
services but with some different rates and additional changes entry of new businesses and
their degree is high when there are no rules of government, few suppliers, less resources and
sources for the need and wants etc. In relevance with chosen enterprise, degree of new
entrant is moderate as because there are very few companies and businesses which deals in
baby products as well as kids as compared to other businesses (Rahman, 2019).
Bargaining power of Buyer- It is often seen that buyers are important for new
venture as because they buy the products as well as materials and as enterprises is new;
the bargaining power of buyer is low so that they are able to maximize their profit and
sales revenue in this competitive era.
Bargaining power of suppliers- Vendors are also crucial part of the market because
they are the path or sources through which corporation is able to access the raw materials and
other resources for their products or services and also they help companies to supply their
product to the end consumer. Bargaining power of suppliers in relation with using entity is
basically because they are the new ventures in market and it took time to establish
relationship with the suppliers.
Competition Rivalry- Competition in between the FMCG sector is high, which is a
big challenge for the new venture, Stroke Grow.

P2 Examine the physical & non-physical resources that require for launch of new venture
Resources are important for the organisation functions of functions and activities are
being carried out in most efficient manner. Resources are of two types physical and
nonphysical in every phases of business. The required resources are given below-
Tangible resources- These are to be known as those resources which can be touched
and I use on regular basis such as inventory machinery cash etc. Types of tangible resources
are mentioned below-
 Inventory- These are referred as quantity of products or goods which are owned by
enterprises and this store them in their houses for the sale or resale within the market.
 Human Resource- It includes staff, personnel or labour of given enterprises which
are responsible for managing and maintaining the functions as well operations of the
business.
Intangible resource- These are defined as those which cannot be touched but can
only experience such as goodwill, credibility, skills and knowledge.
 Reputation- This is the type of resource which is needed by every organisation so
that their market share growth increases and attract more customers.
 Skills- These are defined as abilities which are required for the achievement of
positive output (Won, 2016).
Required resources for given entity
Tangible
 Cash- Capital and cash are the most water resources which are to be needed by
the new venture to carry out their activities.
Intangible-
 Goodwill- Another resource required by new venture is goodwill which is
necessary so that people are aware about the brand (Mahat, 2019).
P3 Prepare a proposal of the new product of new venture
Prior to the starting of a new venture it is essential to implement or developer reliable
proposal so that all the information and other sources needed are being analysed
appropriately.
Executive Summary
Stroke grow, enterprise established and
lodging United Kingdom. The firm provides
varieties of products such as food and
beverages, babies and kids healthy drinks and
clothes etc. The entity has been launching a
new product and business by properly
analysing market trends as well as customer

demands.
Description
Stroke Pro going to launch a new business in
UK with the new product frumpy drinks.
Main motive of introducing the new
dangerous to deliver quality of good sand
products to the customers so that profitability
is being in and at higher level.
Market Analysis
To achieve goals and objectives within the
computer market it is also important to
analyse in market solutions and trends so that
resources are used effectively. Through the
use of market analysis it is easier for new
venture to 16 their business for longer period
of time although there are many other ways
through which analysis can be done by the
use of SWOT analysis, competitors analysis,
STP approach etc. (Porcellana, 2016).
Financial Projection
When starting a new venture in new market it
is also essential to have a adequate amount of
capital as well as forms so that all the
functions and operations are carried out
properly. Funds can be raised from various
types of financial institutions such as Banks,
money lenders, private assets etc. Total fund
which will be required by the new venture is
€ 45,000 (Almeida, 2017).
Benchmarking
It is a way of comparing the performance as
well as progress with the one brand to the
similar one through which they analyse the
market and customers ratio. Benchmarking is
needed because it helped them to implement
strategy as well as tactics within the business
to deal with the competitors and rivals. The
chosen enterprise uses Benchmarking so that
it is able to provide more additional services
and products to its and users.

TASK 2
P4 Analyse the skills and qualities needed to launch a new venture
It is not easy to start a new business or operation without adopting the screenshot
activities which are required in various aspects of business. With the help of capabilities and
skills, it is easier to deal with the critical situations and decision making so there are various
types of skills as well as it is return required when launching an event and which are given
below-
Skills-
It is defined as equality of individual to complete the task or receive the objectives
time period. There are various types of skills which are explained as follows-
Communication skills-
This is a most crucial skills which is required to launch new nature as because in
business entrepreneur has to deal with many people and associates for which an effective
communication is required so that all the distance of effectively.
Decision making-Another which is required is decision making which specifies that
in business when problems occur decision making has to be done in such a way that
challenges or risk are not faced by entrepreneur in near future (Dias, 2020).
Abilities-
Risk taking ability- Abilities are also needed when launching a new venture because
without then it is not possible to run the business in difficult situations so turn off the ability
which is required is entrepreneur need to be risk taker as problems are part of the business
and which also results in various types of risk. (Acharya, 2019).
Managerial ability- Further one is managerial ability, which states that functions
such as planning, organising etc. is to be done by the entrepreneur itself as a manager. So, as
a product is related with babies and kids this is required so that operations and other activities
are done properly
Thus, it is essential for an entrepreneur to be aware about the skills as well as
capabilities so that establishment of new venture is it done with correct measures and sources
Furthermore, it will also lead to analysing and examining the positive and negative outcome
of the chosen business.

TASK 3
P5 Discuss various promotional activities & channels that will support the launch
When new companies are established, it is important to create awareness about the
brand and product to the market as well as customers. This is being done by adopting or using
the promotional as well as advertising tools and techniques advertising and marketing the
new product helps the venture to create goodwill and attract more and users. There are
various factors which are being adopted by the managers when planning for advertising for
marketing the product such as time frame, cost, risk etc.
Online marketing- This is the most effectively used of promoting a product Angeles
advertising and is used by many organisations at larger scale. With the help of online
marketing honesty can access the customers at both domestic as well as international market
without facing any issues. There are various social media applications such as Facebook,
YouTube and other E-Commerce sites which are used by customers. In context to Stroke
Grow, they also use online marketing for the product which will help them to attract
customers at wider scale (Reyad, 2019).
Tactics and pricing strategies- Another way of promoting is by using pricing
strategy which can be used by give an entity with proper measures as well as market research.
There are different types of pricing strategies such as skimming price, psychological pricing,
penetration pricing strategy and many more. These are adopted after analysing the
competitors price factors so that decisions are taken in well organised manner.
Publicity or celebrity endorsements- Then comes e publicity which is being also
used as promotion technique by the entrepreneur and organisation. It is a cost expensive
method but is effectively used as in this word of mouth as well as celebrity endorsements are
being adopted as techniques of promoting a product (Gruner, 2019).
P6 Briefly describe the plan for pre-launch & launch of the new product
Planning is required in the business at every phase as because marketing and
advertising the product need a proper plan so that all the activities are carried out accordingly.
So, launch and pre- launch is the essential starting phase of a new venture which have a deep
impact on the Goodwill as well as products.
Pre-launch- Many companies go with the pre-launch the motive of creating and noise
among the market rivals competitors and customers within a short period of time so that
when the action launcher product sale process go with the speed. With the help of pre-launch
it is easier to examine the end users reaction and feedback as well as their opinions about the
new product which also help organisation to make frequent changes after launching a
product.

Launch- After the pre-launch then comes the launch of the actual product in the
market in proper manner. In this procedure actual activities and techniques take place at
broader level. For example- Stroke Grow can offer and provide discounts to the first 50
customers and which will help them to attract customer’s at large quantity. We can also
promote their healthy products by TV commercials and boarding’s so that more and more and
the users are able to be aware about the brand.
Brand development- After a proper prelaunch and launch it is also need to develop
and create the awareness regarding the brand. It is done by providing quality of products as
well as services to the targeted customers so that Goodwill of the brand increases in positive
manner. Moreover, by focusing on brand development it is easier for Stroke Grow to increase
their progress as well as performance level within the market (Rathore, 2020).
After a brief analysis of above matter it has been analysed that it is important to carry
out the pre-launch as well as launch of the new product in well efficiently so that it have a
good impact on customer behaviour as well as goodwill of the entity (Usidame, 2020).
TASK 4
P7 Prepare a monthly cash budget for pre-launch phase of venture
To achieve the goals and objectives, it is important to have a proper knowledge as
well as awareness about the budget which will be needed for function and operations. It is
essential for entrepreneurs to prepare a budget for running the business smoothly and
effectively. In relevance with Stroke Grow, by preparing monthly cash budget it become
easier for them to you have a knowledge regarding the resources or other sources which will
be required during the process. A proper finance and auditing knowledge is to be required to
prepare a cash budget plan so that all the transactions are recorded properly. So, the cash
budget plan is given below-
Cash Flow budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500
Total inflows 10000 3000 3000 4500 1500 3500

Cash outflows
Fixed: Equipment’s 2000 2500 1500 2000 1200 1500
Variable: Direct material 300 300 200 300 150 500
Total outflows 2300 2800 1700 2300 1350 2000
Net cash flow 7700 200 1300 2200 150 1500
Opening balance 0 7700 7900 9200 11400 11500
closing balance 7700 7900 9200 11400 11550 13000
Particulars July August September October November
Dece
mber
Cash inflows
Investment
Credit sales 4200 1000 2000 800 1200 1500
Total inflows 4200 1000 2000 800 1200 1500
Cash outflows
Fixed: Equipment’s 800 200 300 100 600 300
Variable: Direct material 300 400 500 100 100 400
Total outflows 1100 600 800 200 700 700
Net cash flow 3100 400 1200 600 500 800
Opening balance 13000 16100 16500 17700 18300 18800

closing balance 16100 16500 17700 18300 18800 19600
Post launch cash budget
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500
Total inflows 9200 2000 7500 3000 5000 6500
Cash outflows
Fixed: Equipment’s 2500 1200 1500 2500 1100 1500
Variable: Direct material 350 300 250 150 100 500
Total outflows 2850 1500 1750 2650 1200 2000
Net cash flow 6350 500 5750 350 3800 4500
Opening balance 0 6350 5850 11600 11950 15750
closing balance 6350 5850 11600 11950 15750 20250
Particulars July August September October November December
Cash inflows
Investment
Credit sales 1200 3200 1500 8200 1250 3210

Total inflows 1200 3200 1500 8200 1250 3210
Cash outflows
Fixed: Equipment’s 1200 600 500 500 1200 700
Variable: Direct material 500 250 450 250 1300 500
Total outflows 1700 850 950 750 2500 1200
Net cash flow -500 2350 550 7450 -1250 2010
Opening balance 20250 19750 22100 22650 30100 28850
closing balance 19750 22100 22650 30100 28850 30860
By examining the above state in budget plan it is seen that pre launching budget of
Stroke Grow for the month January, February march, April, May and June is specified briefly
stop it is also seen that there is a high increasing cash inflow within the plan which also
results in growth as well as overall development.
P8 Provide an appropriate legal form for venture and why it has been selected
Legislation, laws, rules and regulations are important to be focused by entrepreneur
when starting a new venture because without considering them problem may occur during the
process. There are various types of legal forms and types of ventures which are mentioned
below-
Partnership- This is type of venture in which partnership or agreement is being
carried out buy or in between the two people or more than two parties in partnership profit
and risks are shared by both the parties with equal ratio (Harty, 2019).
Sole Proprietorship- In this, business is run by an individual or the owner who take
decisions independently and also responsible for the risk which occurred. Main benefit of this
venture is that profit is enjoying individually without sharing with anyone.
Merger and acquisition- Merger is defined as joining the two companies to form a
single entity. Acquisition refers to company which is being taken by the other firm. Both
merger and acquisition are also being used by many companies to expand their business at
large level. In this decisions cannot be taken independently (Issa, 2019).

With the above specified types of legal forms it is seen that sole proprietorship is the
most suitable form which is used by Stroke Grow. By adopting the sole proprietorship, it is
easy to run business without consulting with anyone and also orders need not have to be
followed by the entrepreneurs.
SWOT- Sole Proprietorship
Strength
 When going with this venture all
legal forms profit is shared as
individual person by the
entrepreneur.
 Individual is the own boss which
shoes that business is being run
without any fear.
Weakness
 As everything is run by individual
person, it is not easy to make
connections within the market.
 Many channel challenges and
issues are to be faced by
individual and it took time to
solve the problem.
Opportunity
 As a sole proprietorship, chosen
enterprise can make the changes
according to their own by which
they have the opportunity to
increase their critical thinking.
Threat
 As the risk has to bear by single
person degree of closing shutting
down the business is relatively
high(Croce, 2019)
So after going to the above paragraph, it has been stated that legal form of ventures is
essential to be examined with most suitable decision so challenges and issues on not faced by
entrepreneurs. With the help of SWOT analysis, it is clearer that the chosen form is beneficial
for achieving growth as well as development (Goldenstein, 2019).

CONCLUSION
After a brief analysis of above report it has been concluded that launching a new
venture is not easy and require time as well as higher level of skills and knowledge. In this
present report, discussions have been made about planning and other resources which are
needed during the process. Budgets have been prepared so that a deep knowledge regarding
the cash budget is known bus stop moreover to run the business smoothly decision making is
done by the entrepreneur in most effective way. It has been also examine that the help of
proper market research new venture can be started entrepreneur appropriately.

REFERENCES
Books & Journal:
Goldenstein, 2019. How optimal distinctiveness affects new ventures' failure risk: A
contingency perspective.Journal of Business Venturing,34(3), pp.477-495.
Younger, 2020. The exemplar enigma: New venture image formation in an emergent
organizational category.Journal of Business Venturing,35(1).
McGee, 2019. The long‐term impact of entrepreneurial self‐efficacy and entrepreneurial
orientation on venture performance.Journal of Small Business Management,57(3),
pp.720-737.
Mahat, 2019. The competitive forces that shape Australian medical education.International
Journal of Educational Management.
Won, 2016. Competitive advantage in intercollegiate athletics: Role of intangible
resources.PloS one,11(1).
Porcellana, 2016. Socio-Demographic Changes and Transmission of Tangible and Intangible
Resources: Ethnographic Glimpses From the Western Italian Alps.Journal of Alpine
Research| Revue de géographie alpine, (104-3).
Almeida, 2017. The first stage of a proposal of a theoretical model for managing a new
product development process.Product: Management & Development,5(1), pp.57-64.
Acharya, 2019. Entrepreneurship Skills Acquisition through Education: Impact of the
Nurturance of Knowledge, Skills, and Attitude on New Venture
Creation.International Journal of Educational and Pedagogical Sciences,13(2),
pp.186-196.
Reyad, 2019, September. The Role of New Venture Skills Education on Entrepreneurship
Intentions of Accounting Students in Bahrain. InEuropean Conference on Innovation
and Entrepreneurship(pp. 871-XXIV). Academic Conferences International Limited.

Gruner, 2019. Supporting new product launches with social media communication and online
advertising: sales volume and profit implications.Journal of Product Innovation
Management,36(2), pp.172-195.
Usidame, 2020. Retailer Compliance with State and Local Policies on Tobacco
Advertising.Tobacco Regulatory Science,6(2), pp.91-104.
Harty, 2019, May. Google play console: insightful development using Android vitals and
pre-launch reports. In2019 IEEE/ACM 6th International Conference on Mobile
Software Engineering and Systems (MOBILESoft)(pp. 62-65). IEEE.
Issa, 2019. Effect of cash budget efficiency on financial performance: An applied study on
the North Refinery Company in Iraq.Tikrit Journal Of Administrative and Economic
Sciences,12(35), pp.97-108.
Croce, 2019. The role of venture quality and investor reputation in the switching
phenomenon to different types of venture capitalists.Journal of Industrial and
Business Economics,46(2), pp.191-227.