HND Business: Launching a New Venture Report - Seven Spice Cafe

This report meticulously outlines the process of launching Seven Spice Cafe, a new venture in the UK marketplace. It begins with an introduction detailing the cafe's offerings and the challenges faced by entrepreneurs. Task 1 delves into market analysis, identifying the target market, conducting competitive analysis using Porter's Five Forces, and assessing both tangible and intangible resources. The report also presents a credible proposal, including an executive summary, company description, market analysis, and financial projections. Task 2 focuses on assessing the skills and capabilities required for a successful launch, and then evaluating how these skills can be developed. Task 3 explores promotional activities for both pre-launch and launch phases, and develops a promotional plan. Finally, Task 4 presents a detailed monthly cash budget for the pre-launch phase, along with the applicable legal form for the venture. The report provides a comprehensive overview of the key elements needed to successfully launch a new business venture.

Launching a New Venture

Contents
INTRODUCTION...........................................................................................................................5
TASK 1............................................................................................................................................5
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis...............................................................................................................5
P2 Specific tangible & intangible resources for new venture...............................................6
P3 A credible proposal to launch a new venture...................................................................7
M1 Apply a range of techniques and methods for competitive analysis to achieve competitive
advantage................................................................................................................................8
M2 Strength and weaknesses of new venture and analyse areas of risk................................9
D1 Develop a detailed proposal that demonstrate analysis and reflection of competitive
environment with supporting contingency planning to reduce risk.......................................9
TASK 2............................................................................................................................................9
P4 Assessing skills as well as capabilities in order to launch a new venture at the marketplace.
................................................................................................................................................9
M3 Evaluate range of skills & capabilities needed for launch of new venture and critically
evaluate how it can be develop by using appropriate techniques.........................................10
D2 Critically discuss supporting costs & timescales needed for acquiring or developing skills
as well as capabilities of a launch team................................................................................11
TASK 3..........................................................................................................................................11
P5 Various promotional activities used byan entrepreneur while launching new Cafe at the
marketplace...........................................................................................................................11
P6 Develop an appropriate promotional activities plan for both launch and pre-launch.....12
M4 Evaluate an appropriate promotional plan for both launch and pre launch...................13
D3 Critically evaluate different promotional activities to support justification...................13
TASK 4..........................................................................................................................................13
P7 Monthly cash budget for the pre-launch phase...............................................................13
M5 Justify an itemized monthly cash budget showing one off costs, opening cost and
anticipated income post and pre launch................................................................................17

D4 Create a pre and post launch monthly itemised cash budget based on financial resources,
including key budget an budget categories and sub categories with contingency measures for
anticipated outcomes............................................................................................................17
P8 Applicable legal form for the venture.............................................................................18
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
Launching a venture at the marketplace is one of the toughest tasks because it needs lot of
funds, market research as well as ability to deal with some uncertainty and issues arise on a
sudden basis. Along with this each and every entrepreneur needs some sort of skills which help
them in order to target customers and for attaining goals in an effective manner (Barringer,
2015). Seven Spice cafe is chosen as the base organization in this report located at the
marketplace of United Kingdom. Seven Spice cafe provides high quality of coffees which are
available in different flavours along with this they also offer shakes, drinks, bakery products. The
present report includes discussion about launching a new venture at the marketplace along with
its targeted market segmentation. In addition to this, necessities for tangible as well as intangible
resources which assist small business enterprises in order to establish at the marketplace.
Furthermore, various sort of skills as well as capabilities of an entrepreneur are going to be
discussed in this project. At the end a budget is also going to be prepared in this report so that
whole functionality of the organization can easily be performed by the entrepreneur in an
effective manner.
TASK 1
P1 Investigate and explain a new venture identifying specific target markets and undertaking
competitive analysis
Seven spice café is a small café that offers bakery product, food items and different
flavours of coffee, bottled drinks and many more. Along with this, it also give services such as
catering, home delivery, personalised baking at customers own place (Bridge and Hegarty,
2013). One of the objectives of Seven spice café is to provide quality food along with good taste.
Development of its new idea helps in gaining attention of people in UK
Target market: Seven spice café is providing good as well as services as per the needs
of customer. Its target market is youth as it is determine that this people mostly prefer to
consume coffee and spent time on cafes. This target market helps company to meet with its
target and objectives in an effective manner.

Competitive analysis: It is important for managers of Seven spice to evaluate its
competitors and their strategies also as it help in developing more effective strategy, which grab
the eyes of people towards café and has positive impact on its sales and profitability level.
Porter’s five forces analysis:
It is considered as an effective tool that help an entity to gain knowledge about level of
competition exist in marketplace. The higher authorities of Seven spice café is using this concept
in order to know its current position in market. It mainly involves five competitive forces that is
given below:
Competitive rivalry: There are lot of cafes in UK that offer similar product and this threat
is high for Seven spice. It is important for managers of Seven spice to focus on providing quality
product and service and to maintain good relationship with customers as it help in retaining them
for longer time.
Bargaining power of buyers: In context to Seven spice café, bargaining power of buyers
is analysed high as it is n new café and offer product as per customer demand. In addition to this,
it is essential for Seven spice café to something unique that help in attracting people and enhance
its sales level appropriately (Burns, 2017).
Bargaining power of supplier: It is an new café where limited number of suppliers is
exist for providing raw material such a coffee beans. This threat is high for Seven spice café so it
is essential for its managers to develop good relations with suppliers in order to decline shortage
of raw material.
Threats of substitutes: Seven spice offer different flavours of coffee that is unique for
customers and therefore threat of substitute is moderate. In order to sustain in market, it is import
for managers to offer unique services that leads to rise in sales and profitability level as well.
Threats of new entrants: In order to enter in such type of market, it is important to have a
good brand name, which is not easy to gain. In addition to this, it is determine that food industry
needs more research and information about market trends in a proper manner.
P2 Specific tangible & intangible resources for new venture.
Every new business requires resources in order to implement activities and operations in an
effective manner. There are mainly two types of resources that is tangible and intangible
resources, which is needed in order to provide good service to customers. the resources is
defined below in context to Seven spice café:

Tangible resources: It is defined as a resource that is visible and can be measured within
physical form. It mainly involve equipment and building as tangible resources. In relation to
Seven spice café, the tangible resources are microwave, coffee grinder, ice machine, coffee
maker, refrigerators, utensils and many more that will help in providing better service to
customers.
Intangible resources: It is determine that tangible resources are not physical in nature
and is long term resources for an entity. It includes trademarks, brand image, customer
relationship, copyrights, patents, culture of industry and many more. With reference to Seven
spice café, it is important for its managers to take patent of their name in order to avoid any
issues (Chrisman and et.al ., 2012). In addition to this, it is significant to provide training to
employees so that they can make customers satisfied which directly has positive impact on its
brand image and market position as well.
The above mentioned intangible and tangible resources will aid Seven spice café to
achieve its desired goals and gain the attention of youth towards its product as well as services.
P3 A credible proposal to launch a new venture.
It is determine that every new venture require an effective development of plan before
entering into market. A credible proposal mainly involve about company, analytical market and
its competitors as well. In addition to this, in include different strategies that are formulated after
identifying competitors. It is analysed that proposal plan help higher authorities to formulate
strategies and policies in a proper manner. The proposal plan is given below for log tern success
of Seven spice café:
Executive summary Seen spice café is a small café that offer innovative product such as
special types of coffee, shakes, bottled drinks, bakery product and so
on. In addition to this, it offers other services also such as personalised
baking, catering, and home delivery and so on.
Company description Seven spice café is a small café that is located in UK and is owned by
three partners that share profit as well as losses in equal ratio. The café
location is near college and an owner has taken place in lease.
Vision

To gain leading position in this sector by offering unique and quality
service to customer by considering market trends and innovative
technology as well.
Mission
To develop brand image as an innovative café that offers different
types of coffee and food products in order to become favourite place
for youth.
Market analysis It is important for managers of Seven spice cage to analyse external
market as it help in grabbing opportunity and decline the level of
threats associated with external factors (Coleman, Dzansi and Rambe,
2015). For this, PESTLE analysis is used in order to gain knowledge
about uncontrollable factors that has impact on its activities and
performance as well.
Benchmarking Herein, guidelines are developed by mangers in order to monitor
performance of staff members. It aid company to improve internal
performance by developing plans and strategies considering
competitors strategies. It will help in fulfilling customer requirements
and retain them for longer time.
Financial projection Seven spice café is a small café and is started business with minimum
investment that is equally invested by three owners of café. It is
important for owners to make proper use if funds in order to gain better
results and to achieve desired goals as well.
M1 Apply a range of techniques and methods for competitive analysis to achieve competitive
advantage
In order to attain competitive advantage, porter’s five force model is used by owners of
Seven spice café. It is analyse that this model involves five competitive forces that consist high,
low and medium risk. It is important for an entity to provide quality and unique products as well

as service in market. in addition to this, it is important to focus on fulfilling requirements of
customer and maintain good relationship with them as it help in increasing sales and also aid in
attaining competitive advantage at marketplace.
M2 Strength and weaknesses of new venture and analyse areas of risk
Strength: It offer different flavours of coffee along with food quality and is consider as
strength of Seven spice café. Another strength is its location that help in attracting youngsters
and enhance its sales level.
Weaknesses: There are lot of competitors prevailing at marketplace and influence on its
overall performance. In addition to this, it is new in market and thus did not have high brand
image at marketplace.
It is determined that with the new venture, there are various risk associated with it. In
relation to Seven spice café, it involve risk that is not getting success in market, technical risk,
quality of product risk and so on.
D1 Develop a detailed proposal that demonstrate analysis and reflection of competitive
environment with supporting contingency planning to reduce risk
It is evaluated that development of a proposal and plan help an entity to make effective
strategies in order to achieve competitive edge at marketplace. By this, owners can also get to
know about competitors’ strategy and thus company have the opportunity to develop more
effective plan and decline the level of threats and risk associated with new venture.
TASK 2
P4 Assessing skills as well as capabilities in order to launch a new venture at the marketplace.
Each and every business establish by a person with the aim of getting profitability and
success at the competitive marketplace. It is necessary by the entrepreneur to have some sort of
skills & capabilities so that they can effectively launch a new business venture in an appropriate
manner. In reference to Seven Spice cafe, it has been analysed that for the owner of the venture
it is necessary to have some capabilities which assist them in grabbing market share. Some of the
skills and capabilities are as follows required by a entrepreneur.
Leadership: It refers to the ability of a person which helps in influencing large number of
individuals for attain their own targets or motives. In the present context of Seven Spice cafe, the

owner of the cafe needs to have effective leadership skills with the help of which they can easily
influence their staff members for improving level of satisfaction of customers. It has been said
that the owner needs to manage the workforce and guide them in a single way so they can
enhance their brand name.
Communication skill: Communication defines as the process where ideas are being
shared from one person to another in an effective manner. In relation to Seven Spice cafe, owner
use polite tone with their staff members so that they feel comfortable at the workplace. Along
with this managers need to communicate with their workforce on a time to time basis so that they
can feel motivated and encouraged and with the help of which they can provide high quality
service to their customers.
Risk taker: Another essential capability which is required by an entrepreneur is risk
taking which help in taking risk in an effective manner available at the competitive marketplace.
In reference to the new venture which is Seven Spice Cafe, owner of the cafe requires having
risk taking capability and the reason behind this is that the market environment is unpredictable.
Therefore, both positive and negative changes arise at marketplace which needs to be face by
entrepreneur in order to remain sustain at the competitive environment for a longer period of
time.
As per the above stated skills as well as capabilities it is very necessary for a entrepreneur
to have these skills so that they can attain their predefined targets and goals in an effective
manner.
M3 Evaluate range of skills & capabilities needed for launch of new venture and critically
evaluate how it can be develop by using appropriate techniques
There are various skills and capabilities is required in order to develop new venture that is
effective communication skills, problem solving skills, time management skills, conflict
management and so on. It can be developed by providing training and development session in a
proper manner. In addition to this, it will help in providing quality service and to develop good
relation with customers.

D2 Critically discuss supporting costs & timescales needed for acquiring or developing skills as
well as capabilities of a launch team
In order to provide training and development session for developing skills and capabilities
of employees, it occurs cost to company and also consume time. It is analyse that minimum 25-
30 days of training is required for developing such skills in a proper manner. It will help an
entity to make employees deal with customer issues and achieve targets within stipulated time
frame.
TASK 3
P5 Various promotional activities used byan entrepreneur while launching new Cafe at the
marketplace.
Each and every business organization required to adopt different sort of marketing tools in
order to promote their products at the competitive market place. In reference to the present
context, it defines as the marketing manager has the responsibility to popularise offerings of
Seven Spice Cafe at the market. As per the cafe it has been identified that there are ample
number of promotional tools adopted by organisation in order to popularise offerings at the
marketplace of United Kingdom. Some of the promotional activities are going to be discussed as
follows:
Advertisement: This is the one of the effective promotional activity that is mainly
adopted by the businesses with the motive of enhancing awareness of their company at
marketplace. Here, marketing head of Seven Spice Cafe can effectively make use several forms
of advertisement such as outdoor ads, leaflets, pamphlets with the motive of promoting their
cafe.
Social media: This is another form of promotional method that is quite popular among all
generations. Here, it has been analysed that social media is one of the cheapest and effective
method of promotion. With reference to Seven Spice Cafe, the respective manager of this cafe
can easily make use of this promotional method as it is quite economic for them and also
provides effective and valuable results that would maximise their sales performance.
Sales promotion: In this promotional activity main focus of the company is on providing
heavier to customers in store customers in the many ways. Here, the manager of Seven Spice

Cafe can effectively go for this promotional method by simply offering attractive discounts,
coupons, referral programs and loyalty incentive to its customers. Also, they can easily influence
customers by providing good taste food at very lower prices. This would definitely help them out
in attracting money oriented people towards them in rightful manner.
On the basis of the discussion provided on the above specified promotional methods, it
can be said that marketing manager of Seven Spice Cafe clearly believes making use of all these
methods as their incorporation is cost effective for them. Therefore, it can be said that by making
use of all these Seven Spice Cafe can easily influence attention of potential customers towards
themselves that would raise sales performance as well as profitability of the company effectively.
P6 Develop an appropriate promotional activities plan for both launch and pre-launch
It is said that for the growth and development of a business venture, promotional activities
plays very crucial role. These are the activities used by every business entity in order to create
awareness about the products and services at the competitive marketplace and to promote the
brand name. In reference to Seven Spice Cafe, it is said that the marketing manager adopts
various promotional activities at both pre-launch and post launch of cafe. Various promotional
activities aregoing to be discussed as follows:
Pre-launch promotion: It define as the process used by business ventures to promote their
brand at the competitive marketplace before even entering at the market. In relation to Seven
Spice Cafe, the marketing manager adopts affordable promotional tools with the help of which
they will be able to grab attention of large number of people. Some of the activities are going to
be discussed as follows: Advertisement: It consists of the promotions which consist of print media like pamphlets,
leaflet, catalogues and many more. These sorts of the advertisement are easily affordable
for the Seven Spice Cafe as well as create promotion at the marketplace before even
launching of products at the marketplace.
 Social media: This refers to another most effective tool for promoting products at the
market. In relation to Seven Spice Cafe, marketing manager create page on different
social media platform such as Twitter, Facebook, LinkedIn and many more. as they can
easily be operated by them. With the assistance of adopting these platforms awareness at
the marketplace created in a positive manner before launching product at marketplace.