Royal Bakery: Individual Venture Development Proposal - London

This individual venture development proposal focuses on Royal Bakery, a new bakery venture planned for the London market. The report details the opportunity formation, including the business concept of offering a variety of bakery items from multiple countries. It outlines the business plan, including company description, market analysis (geographic, demographic, psychographic, and behavioral segmentation), and competitive analysis. The proposal also covers the entrepreneurial perspective, emphasizing the importance of identifying economic needs, managing resources, and navigating the stages of venture development. The report includes a SWOT analysis, highlighting the bakery's strengths, weaknesses, opportunities, and threats. Finally, the proposal includes an executive summary and a benchmarking section to guide the business operations and ensure customer satisfaction. The venture aims to provide high-quality bakery items and achieve competitive advantage in the London market.

INDIVIDUAL VENTURE
DEVELOPMENT
PROPOSAL

Table of Contents
INTRODUCTION...........................................................................................................................1
Opportunity Formation................................................................................................................1
Business Plan/ Opportunity development...................................................................................4
CONCLUSION ...............................................................................................................................9
.........................................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
There are several types of venture that is well established in the competitive market and
is engaged in various sectors with the main objective of earning maximum profits. In order to
establish new venture it is important to adopt some effective skills, knowledge and attitude that is
crucial to run the business operation smoothly. Business environment for the new venture is
quite complex that creates many difficulties and challenges for an entrepreneur. There is need of
identification of specific target market and competitive analysis before starting any new venture.
It all depends on the individual as well as market needs who motivate an entrepreneur to enter
into market with an appropriate plans and strategies. Before launching any new venture, it is
essential to explore the opportunities so that proper decision can be taken and implemented while
taking decision.
This report mainly focuses upon the new venture that is Royal Bakery, that serves variety
of bakery items that includes bread, bun, brownie, pastry, pie, custard and cookies etc. The idea
of this main new venture is to serve unique bakery item with good quality and taste in various
regions. Nowadays bakery items are famous among the kids and teenagers and majority of them
are attracted towards bakery shops to consume variety of bakery products. There many
typologies that is followed by new ventures like revolutionary venture, niche venture, hustle
venture and speculative venture(Talebi, 2011).
Conducting and establishing any bakery shop is considered as venture that requires
radical concept to establish well in the market along with uniqueness in quality and taste of the
bakery products. The products and services that is served by the royal are unique and different in
taste. In this report a brief description about the entrepreneurial services, bakery shop process
along with the business plan and opportunity development is discussed.
Opportunity Formation
Royal bakery shop is new business venture that is decided to launch in London market. It
has offered variety of delicious bakery items of various number of countries with a specific aim
to attract maximum number of customers. The main preferred location of starting a new venture
of bakery in London is mainly due to having high number of tourists and crowd. This will
directly help in increasing the sales revenue along with more success. Through proper research,
it is analysed that most of the customers prefer to visit those bakery shops that serves variety of
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unique bakery items of different nations. Therefore, it becomes a great idea to serve bakery items
of multiple numbers of countries in the London market.
An entrepreneur usually works in partnership to establish their new venture. Royal
bakery is incorporated in the London with the capital of £300,000. It has around six competent
shareholders each has invested £50,000. Royal bakery is equally owned and controlled by all the
six partners. As partners, they represent sales, finance, administration and management
respectively. The partners also provides some funds from their own saving that cover start-up
expenses and provide a financial support. Unique ideas of each partner will help the bakery shop
to achieve growth and success within a shorter period of time. Royal bakery has acquired around
1500 square feet at the centre of London on lease with an objective of continuing the business
without facing any issues and difficulties. As the bakery shop is formed in partnership thus can
easily avail the funds from their different sources such as own capital along with various
financial institutions which is around £300000.
Objectives
 To serve customers good quality of bakery items of multiple nations
 To earn maximum benefits
 To maximise level of satisfaction of customers
 To become best and famous bakery shop worldwide
Mission
The mission is to “serve local resident and communities by preparing baked goods of
exceptional quality along with the competitive prices in order to meet the demand of the low-to
middle-to high-income”
Vision
To become best bakery worldwide by creating an exceptional product and customer
service experiences to new and loyal customers.
Target Market
Customers including kids, teenagers and youngster are the main target whose demands
and preferences decides the success and growth of the business, therefore it is important for
entrepreneurs to identify the market and analyse the market conditions carefully so that further
actions and plans should be formulated. Changing in taste and preferences of customers may
affect the success of bakery shop therefore required to consider such changes on regular basis so
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as to make changes in menu card as well in order to attract them towards visiting Royal bakery.
The market is classified on the basis of Geographic, Demographic, Psycho-graphic and
Behavioural.
Geographic: Such type of segmentation is based on the location where the new venture
has been started. As entrepreneurs preferred to choose such location where they get more
customers for Bakery shop. Thus, it an important decision that will be made after analysing
situations exist in locations carefully. For an illustration, Centre of the London will be the perfect
location to establish bakery shop as it will help to attract maximum number of customers. By
selecting appropriate location, chances of achieving growth and success within shorter period of
time will increase.(Talebi, 2011).
Demographic: Such type of segmentation is based on religion, culture, gender, income
level etc. which affects the business activities a lot. Therefore, requires to analyse them carefully
and accordingly make an appropriate decisions and strategies to attract customers towards the
bakery shop. In different regions, the taste and choices also differ. For example, Kids and
teenagers shows more interest in visiting bakery shop and consume bakery items.
Psycho-graphic: Such type of segmentation is based on lifestyle and personality of
people. For example, people of higher income group mostly likely to visit to bakery shop in
order to get taste of different nation’s bakery items.
Behavioural: Such type of segmentation is based on the behaviour, usage and decision
making pattern. For an illustration, teenagers and kids shows more interest in preferring varieties
of bakery items that is offered by bakery shops.
Competitive analysis:
Starting and establishing a new venture is not at all easy due to various existing large
number of competitors that are available in the market and is operating their business from long
time duration. Competition in the bakery shop establishment is very high as there are large
number of bakery shops in London locations that serve varieties of bakery items to the
customers. To attain competitive advantage in the market it is crucial to overall analysis the
strategies that is adopted and implemented by the competitors. To sustain for long time and
retain well in the market it is crucial for the Royal bakery to develop and implement appropriate
plans and strategies that is essentially required by the entrepreneurs.
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There are various large number of bakery shops in London that gives tough competition
to Royal bakery. Competition in the local area is somewhat sparse and does not provide nearly
to the level of product's quality and customer service as Royal Bakery. Local customers usually
looking for a high quality product with a nice taste and affordable prices. Customer desires tasty,
hygienic bakery items at reasonable price. There are various famous top competitor of bakery
items that mainly includes Tan's Donut, Yum Yum Donut, Alberson Bakery, La Perla Tapatia
and San Luis Rey bakery.
Entrepreneurial perspective
To achieve economic development, proper management it is very essential to undertake
some elements that are very necessary that includes human resources, natural resources, capital
formation and technology. As founder entrepreneur and chief executive officer of the Royal
Bakery, there is need of identification of economic needs, considers offering a business solution
and proceed to assemble the resources required and assumes the risk of either succeeding or
failing. By identifying an economic need an entrepreneur can that take effective decision by
establishing standards for bakery items.(Hulbert Gilmore and Carson, 2013).
In order to identify competitive risk it is important as an entrepreneur to prepare project
study, advertise and maintain good relationship with the employees along with the customers and
among others. It is very important to review and assemble various resources that is required in
order to effectively run any new venture. For the entrepreneur of Royal Bakery has to acquire
funds, hire people and construct buildings. For transition from a new venture to a successful long
term enterprise it is important to follow four major stages that mainly includes pre startup, start-
up stage, the early growth stage and late growth stage(Gerasymenko, De Clercq and Sapienza,
2015).
In pre start up stage, some activities are undertaken that mainly includes formation of the
business, generation of the necessary capital, purchase of facilities and equipment, constructing
prototype and testing the market. As a entrepreneur the main role in economic development
includes generation of more employment, formulation of outsourcing culture, lowers down the
load of job market, providing options for job seekers and in balancing regional development.
Business Plan/ Opportunity development
Executive Summary Royal bakery is a new venture which is
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established with an objective of serving
various bakery items that includes bread,
bun, brownie, pastry, pie, custard and cookies
etc. The idea of this main new venture is to
serve unique bakery item with good quality
and taste in various regions(Karadag, 2015).
Company description An entrepreneur has decided to establish
bakery shop in London for serving variety of
bakery items that includes donuts, cake,
muffins, croissants, bread etc. for both low
and upper income markets. The main motive
of the Royal Bakery is to serve unique variety
of muffins and donuts with good taste and
flavour.
Market analysis Business environment is complex and its is
consists of internal and external factors. Such
factors may either make negative or positive
impact on the business operation of Royal
bakery therefore required to conduct
marketing mix analysis along with SWOT by
entrepreneurs in order to analyse such
influencing factors and accordingly make
further plans and decisions.
Financial protection Royal Bakery works in partnership that helps
and financially support the new business
venture. It has six partners that finally support
and manage the bakery business. Resources
are an important element which supports new
venture in achieving growth and success
within shorter period of time. Therefore, it
must required for Royal Bakery to collect and
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raise some financial funds.
Benchmarking Before executing business activities, it is
important to set benchmark for the owners
and employers in order to bring motivation
among them to give more efforts in fulfilling
their commitments. It directs the employees
to perform as per the standards which helps in
increasing satisfaction level of customers.
SWOT analysis
Strength
The main strength for the Royal Bakery as a new venture is that the location of shop is
good . The decorations and atmosphere provided by the Royal bakery is quite good that creates
positivity among the customers. It provides high quality of bakery items along with the good
services. It serves lower employment cost as well.
Weakness
The main weakness of Royal Bakery as a new venture is that it has very confined
resources and limited capital. Along with this it has many competitors in London that offers
similar products and services like Royal Bakery.
Opportunities
The main opportunities for the Royal Bakery is that it can continue the expansion for
online sales. It has advantage of stable politics and good economy in London.
Threats
Similarity in products along with the changes in the regulations can become threat for
Royal Bakery.
McCarthy's 4Ps
Marketing mix is considered as the marketing tools that allows the organisations to
control and monitor various marketing objectives in order to achieve the main market targets
With the help of marketing mix Royal Bakery are able to identify and conduct music festival
event at appropriate location.. The marketing mix generally covers the four wide levels of
marketing decision that mainly includes product, price, promotion and places. While conducting
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music festival event it is important to analysis four parameters that includes prices, product,
promotion and place. Following are the detailed description of 4Ps of Royal Bakery:
Promotion
For promotion Royal Bakery, in the first week of grand opening they provide discount
on each bakery items and beverages that are offered by them. Royal Bakery also implemented a
lucky draw gifts to their customers in order to attract more number of customers. They offer buy
one get one free every evening from 5pm to 7pm. Royal bakery provide a member card to their
customers to get a discount upto 10% in every purchase. In context with the promotion it is very
essential to have proper analysis of demographic profile in order to target the audience. In order
to highlight bakery shop it is very crucial to adopt various promotional strategy to maximize the
benefits(Karadag, 2015).
Royal Bakery promote all the bakery items at targeted locations by providing door to
door services as well. Social media platform is an effective platform where the entrepreneurs can
easily find out and locate to their targeted customers and inform them about the varieties of
bakery items in order to attract and influence their interest and buying behaviour of customers.
Social media includes Facebook, Instagram Twitter etc. through which the entrepreneurs can
easily invite people of different nations To have effective promotion Royal bakery has to
choose appropriate print publications, broad cast stations and websites. In order to attain
effective promotion Royal Bakery has created good public relations along with social media
campaigns to attain competitive advantage in the market.
Place
It is very essential to analysis the location while establishing any new venture like Royal
Bakery. It is important to analysis and select the ideal location to set up the bakery shop to attract
maximum number of customers. Royal Bakery was set up at the centre of the London, which is
one of the competent strength for operating the business well. For establishing such bakery shop
it is important choose such location that is at the centre of the city so that maximum number of
customers can visit the shop easily. It should be nearby the localities. (Duggal and Sassoon,
2015).
Price
It is very essential to fix the prices for each bakery item that can be affordable for all
types of income class from lower to higher. In order to cover the profit margin and budget along
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with proper delivery of item at customer place it is crucial adopt effective pricing strategy. It is
crucial for the Royal Bakery to develop an appropriate budget that includes all the major details
of expenses. Royal Bakery has generated budget that involves cost of planning, advertisement,
lease, set up costs, clean up costs, food and beverages costs, staff costs along with permits and
costs.
Product
The new venture that is conducted and implemented by the Royal Bakery serves variety
of bakery items and beverages. So it is very crucial to attract those customers who loves to
consume bakery items, deserts etc. In order to attract high number of customers Royal Bakery
servers different types of bakery items that mainly includes bread, bun, brownie, pastry, pie,
custard and cookies etc. The idea of this main new venture is to serve unique bakery item with
good quality and taste in various regions. It is very important to overview all the ancillary
activities that usually takes place both before, after and during the operation of bakery business
in order to make modifications according the desires of the customers. In order to highlight the
bakery shop in London, Royal bakery offers stamp card and member card so that customers get
some discount on each bakery item. Royal Bakery also implemented a lucky draw gifts to their
customers in order to attract more number of customers. They offer buy one get one free every
evening from 5pm to 7pm.(Talebi, 2011).
Skills required to launch new venture of Bakery
To successfully launch new venture of bakery it is important to formulate some plans
and strategies. For this an entrepreneurs should have sufficient skills and knowledge. Some of
the skills that is needed to make business successful are as follows:
Leadership skills: Combined efforts always gives profitable result therefore an
entrepreneurs also requires to have leadership skills through which they can easily get work done
from their employees through providing them suitable training on regular basis.
Risk taking ability: Due to high competition in market, risk factor always arises which
affects the sustainability of any business. Therefore, an entrepreneur should required to acquire
risk taking ability with the help of which they can deal with risk factors and uncertainty in more
effective and efficient manner.
Management skills: It is essential for an entrepreneur to acquire management skills in
order to manage and control business activities in more profitable way. For example, allocation
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of resources to specific area of activities where they ensure in getting profitable outcomes in near
future. Assigning roles and responsibilities to employees is also a part of management skills.
Therefore, with the help of such skills, Royal bakery can easily achieve growth within shorter
period of time (Gerasymenko, De Clercq and Sapienza, 2015).
CONCLUSION
It is concluded from the report that business plan act as blue print of step to step process
that mainly followed to covert any business idea into an successful business venture. In order to
organise any music festival event it is crucial to have proper planning that mainly involves the
roles of artists, venue place, ticket sale date, performance date and budget. Royal bakery has to
choose appropriate print publications, broad cast stations and websites. Royal Bakery promote all
the bakery items at targeted locations by providing door to door services as well.
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REFERENCES
Books and Journals
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Effectual entrepreneurship. Taylor & Francis.
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role of motivated reasoning in new product introductions. Journal of Business
Venturing. 27(3). pp.291-309.
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strategic management approach. Emerging Markets Journal. 5(1). p.26.
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Entrepreneurship Journal. 9(1). pp.79-98.
Talebi, A.E.K., 2011. Decision framing and critical success factors of new product development.
African Journal of Business Management. 5(15). p.6233.
Duggal, S. and Sassoon, D., 2015. Crowdfunding: Insights Into The Motives That Influence
Entrepreneurs When Launching A Successful Campaign.
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