Feasibility Study and Business Plan: UK Retail Sector Analysis

This report provides a comprehensive analysis of the UK retail sector, focusing on its feasibility for small businesses. It begins with an introduction to the sector's significance in the UK economy, followed by a detailed feasibility study that includes PEST, SWOT, and Porter's Five Forces analyses to evaluate macro-environmental factors, competitive dynamics, and core competencies. The study identifies opportunities for entrepreneurial ventures and innovation within the sector. The report then presents a draft business plan, outlining business objectives, strategies for growth, operational and management models, promotional and marketing plans, financial forecasts, and considerations for funding requirements. The business plan centers on the development of a shopping mall, offering insights into its management and operational models, alongside promotional and marketing strategies, and financial costings. The project emphasizes entrepreneurial focus and innovation, highlighting customer-centric approaches and the use of technology to enhance the shopping experience and generate profit. The report concludes by summarizing the key findings and recommendations for success in the UK retail market.

Running Head: Small Business Management
Small Business Management
UK Retail Sector

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Table of Contents
Introduction......................................................................................................................................1
Feasibility Study..............................................................................................................................1
1.1 Critical Analysis and Evaluation of the Macro Environmental Factors...........................1
1.2 The Breadth and Relevance of secondary or primary sources200....................................6
1.3 Overall Case Strength for Opportunity Recognition.........................................................7
Draft of Standard Business Plan......................................................................................................8
2.1 Business Objectives and strategy for Growing Business in the Medium Term.....................8
2.2 Business Model including Operational and Management Model..........................................9
2.3 Promotional and Marketing Planning..................................................................................12
2.4 Justified financial costing or forecasts and consideration of funding requirements............12
2.5 Innovation and entrepreneurial Focus evidence...................................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
The chosen sector for this paper is a retailing sector of UK. Generally, it can be said that retailing
is the economic sectors of the country, employing around 2.5 million people, with retail sales of
£220 billion, and operation more than 300,000 shops. The main motive behind this project is to
identify the business opportunity in the retail sector. This has been done through conducting a
deep analysis of the competitiveness of the sector by using PEST, SWOT, or Porter five forces
model. Apart of this, a standard draft of business also has prepared. Moreover, In UK there are a
large number of retailers and multinational businesses which dominate the whole sector. Thus, it
can be said that retailing is a significant sector due to its social dimension and wide role in the
economy of UK.
Feasibility Study
1.1 Critical Analysis and Evaluation of the Macro Environmental Factors
Critical analysis and evaluation of UK retail sector start with an assessment of the macro
environment within which an organization operates. The framework for analysis used in this
paper is mainly based on three different stages. First is the identification of change influencing or
key drivers of the retail sector which is covered by conducting PEST analysis. Secondly, study
competitive study of UK environment is performed with the help of Porter 5 forces model
(Aguzzoni, 2016). At last, core competencies which contribute to success within retailing is
studied.
PEST Analysis
Factors Agents of Change Future Consideration

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Political Trends and
Structure
 Planning Policy
 Business Regulation
 E-Society
 National Debate
 Land Utilization
policy control over
attitudes and location
to issues of
transportation or
sustainability
 Trading activities
such as employment
and selling practices
regulation (Yu, 2014)
 Awareness or
capabilities, and
infrastructure
development for
business and
customers
 Understanding or
perceptions of the
sector structure, or
behavior and
ownership
Economic Trends and
Structure
 Open Market
 Economic
 Scale at international
or national level; non-

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Performance
 Personal Disposable
Income
UK sector ownership
 Retail property and
investment capacity of
the sector
 Potential pension, role
of interest and credit
rates, confidence of
consumers
Socio-Cultural Trends  Mobility
 Behavior and Beliefs
 Perception of mental
and actual distance
 Conflict between
desire for simplicity
and complexity, or
contradictions in
behavior (Metzger,
2014)
Technology Trends  Change in Business
process
 Product Innovation
 Relationships and
reorganizations, and
alteration in retail
activities
 Durability and
convenience,
customer acceptance

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or adoption, critical to
measure; pressures for
minimization
Porter 5 Forces Analysis
Threat of New Entrants
 Chain Stores
 Reduction in Independent retailers
 Centralized buying competitive
advantage
Power of Suppliers
 Less power
 Historically, relationship exploitation
Threat of Substitutes
 Shifting chances is greater.
 Deal with a large number of products
Power of Buyers
 High-quality products retailer's honest
 Low power of bargaining
Rivalry among Existing organization within industry
 Reduce- Loyalty cards, frequent fliers, membership, etc.
 Cut throat competition (Blackley, 2017)
SWOT Analysis
Strengths Weaknesses

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 Biggest Supply chain of UK
 Ethical reputation
 Powerful card of loyalty
 Own-Label Brands
 Political Uncertainty and Regulatory
requirements
 Poor Infrastructure of supply chain
management (Diaz, 2015)
Opportunities Threats
 Digital Strategy
 R&D or innovation capacity
 Changing Lifestyle
 Growing Competition
 Growing rate of land and real estate
Entrepreneurial focus and evidence of innovation
Entrepreneurial and evidence of innovation can judge by seeing the sector popularity in the UK.
This ongoing popularity gives birth to a customer-centric approach. This approach not only
improves the efficiency of the sector but also helpful in achieving greater effectiveness in the
customer's experience of the retail offer. After this, it becomes popular due to creativity in the
retail job and shopping process (Christina, 2014). This creativity increase quality life of
customers throughout the shopping experiences. After this, various novel disciplinary and wide
range of technology approaches came into existence which plays an effective role in improving
customer's experiences by providing effective services.

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1.2 The Breadth and Relevance of secondary or primary sources200
Generally, secondary and primary research sources prove very effective in conducting a research
study. In a similar manner, primary research and secondary research sources also help a lot in
conducting competitive analysis and strategic analysis of UK retail sector. Primary sources like
questionnaire, observation, and interview prove relevant in collecting following information:
 Overall efficiency and effectiveness of sector
 Consumer buying behavior
 Knowledge regarding fair prices to British consumers
 Effect of political and economic factors
Apart of this, secondary sources also contribute enough to give us knowledge about the strategic
performance and evolution of the retail sector (Cullen, 2013). Secondary sources such as
scholarly paper, articles, magazines, and newspapers prove relevant in collecting following
information:
 Retail sector growth in a particular country.
 Effectiveness of marketing and strategic tools
 The potential for over-regulation of the retail sector and its operations, restricting
innovations and adding to costs.
 Efficiency of different marketing tools
 Competitiveness and strength of the retail sector
 Cost structure of UK which makes it a high-cost place for performing business
 Technological advancement

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Thus, it can be said that primary research sources and secondary research sources make the
research easier and give us significant information in conducting the research efficiently.
1.3 Overall Case Strength for Opportunity Recognition
Nowadays, retailing is considered the most important sector of an economy of a country. It is
crucial to consumers through their day to day interactions, and also economically significant in
terms of contribution to GDP and jobs. Overall it can be said that retail sector is a growing sector
and have enough strength. It produces a large number of opportunities to business organizations.
Retail sector of UK covered circa £ 35 billion in specialist sector (Sullivan, 2015). The increase
in the value segment of retail market enhances the GDP of the country in a significant manner.
On the other hand, the competitive structure of the retail sector is very vast and difficult to map.
Due to this, the retail sector is the focus of every country and business houses. Apart of this, a
combination of different channels as footwear and clothing specialists like grocery chains,
department stores make it more competitive and attractive than other sectors. Thus, it can be said
that the retail sector of UK has a great strength and potential due to the availability of a large
number of growth opportunities. Its strength can understand by the following figure:
(Rothaermel, 2015)

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Draft of Standard Business Plan
2.1 Business Objectives and strategy for Growing Business in the Medium Term
Project Background
It is a plan for construction of a shopping mall in the UK that will be of international standards.
As the retail sector of UK is growing, then there is a good opportunity to develop a shopping
mall there. This mall will provide access to services and goods to local residents and tourists as
well. The UK is endowed with a lot of minerals and huge potential for economic growth. The
concept revolves around the construction of multi-million Euro shopping mall.
Project Objective
 Offer a one stop solution to its target customers and entertainment experience for the
people of the UK or surrounding areas.
 Offer an entertainment experience and modern shopping to international visitors.
 Enhance the value and wealth of stakeholders through giving good quality products and
generating high profit by operating on an efficient basis.
 Contribute in a limited manner towards enhancing the life quality of UK people by
providing international class and quality entertainment or shopping facilities, and
employment.
Strategy for Growing Business in Middle term
In middle term of a shopping mall, the strategy will develop for extending its product line so that
it can attract a large number of customers by providing them a large number of products under a
single roof. On the other hand, clear and precise positioning strategies will develop to establish
the brand of a shopping mall in the eyes of target customers (Hill, 2014). If it is able to do so, it

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can gain a competitive advantage in its potential market than its competitors. On the other hand,
loyalty programs will arrange to create an emotional attachment with potential or target
customers. This will be helpful in gaining the confidence of a large number of people.
2.2 Business Model including Operational and Management Model
Management Model of Project
During the development of the shopping project, the owners will plan on how to market the
space and manage the building after establishment. After this, owners will appoint the managing
agents and letting agents carry out the formation tasks. They both are appointed from one
property organization that offers both services. Overall management model of shopping complex
project can understand with the help of below-mentioned figure:
Operational Model
Development of a shopping project is a combination of a large number of operations and
activities. Below-mentioned work breakdown structure and Gantt chart of the project will give
the overall information about the project operations and its starting and finishing date.

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