BUS020N533A - Launching A New Venture

The purpose of present report is to develop the understanding about the procedure involved in establishing a new business venture. It has focus on identifying the risk involved in launching of new organisations. Study will also include the detail about the promotional activities which can be adopted by new start up for gaining the market share and achieving good position in the market.

TASK 1

P 1 Investing and explaining a new venture

An entrepreneur of new business venture is planning to launch new business first hotel business in domestic market. After achieving the growth and success in local market, business owner will make plans as well as formulate strategies for expanding the business operations in international market. As this strategy will help business owner in gaining the experience which will be beneficial in establishing leading position in an industry and gaining the competitive advantage in the market. When making the plan for starting a new business venture, it is required by an entrepreneur to conduct market research. As this tactic will help business owner in identifying the target market and gaining knowledge or information about the level of competition in an industry. Conducting market research is also important as it will help an entrepreneur in identifying the suitable market for positioning their goods or services. In addition to this, internet can be used as a tool for gathering information about the market situation and competitors (Burns, 2017).

As business entrepreneur is planning to establish near Mall in London. This place has been selected by business owner for opening a hotel, as there is large population visit mall every weekend. So, this demographic strategy will assist business owner in targeting customers. Before establishing a business, an entrepreneur is required to conduct competitor’s analysis, as this strategy will assist an individual in identifying the plans or tactics adopted by its competitors for attracting the customers. Competitor’s analysis will assist an entrepreneur in measuring the intensity of competition. It will also assist manager in identifying the appropriate ways for reducing the negative effect of competition on the customer’s services and other business operations. It is required by an entrepreneur to develop understanding that an organisation might have to face tough competition with internal companies in the market. An entrepreneur is required to analyse markets or market segments served by their competitors etc. Secondary sources of information are recommended as an excellent starting point .

An entrepreneur of Delta hotel is planning to target working men and women. This decision has been taken on the basis of assumption that working men and women generally prefer to buy readymade food items as they do not have time for cooking. This target customers will help an organisation in achieving business objectives and increasing sales as well as profitability. An entrepreneur has planned to position their products or services in niche market in order to reduce the influence of competition.

The Delta hotel has to face stiff competition from following competitors: Park plaza Hotel, Central hotel, Travel lodge etc. These are the giant companies who have captured big market share and gained the customer loyalty (Thomas, 2016).

P2 Determining tangible and intangible resources that would be required for the launch of a new venture.

There are several intangible and tangible business resources are required for starting the new business venture. These resources are essential as it provides firm an opportunity to fulfil the basic needs of business and add value to the company. Some tangible resources which are required for launching of new business includes building, human resource, and finance, machine, documents, equipment etc. Intangible resources include entrepreneur skills, knowledge about business or product etc. Market is also considered as intangible resources which cannot be purchased. It is required by an entrepreneur to utilise both tangible and intangible resources in an efficient as well as effective manner. As this strategy will assist business entity in increasing the profitability. It is need by business owner of the hotel to integrate resources into the business process or system as this will assist firm in accomplishment of objectives. Tangible resources are defined as the business assets which can be observed, touched and quantified. The amount of tangible resources with an organisation indicates the borrowing capacity as well as status of firm business operations. There are certain types of tangible resources which are required to be arranged as well as allocated by business owner for starting up of new business venture as:

• Financial resources- It is considered as an important resource without which an entrepreneur cannot be able to plan for starting or launching of new business venture. These types of resources includes cash in hand, capital, debtors, creditors etc.
• Physical resources - These kinds of resources include infrastructure, production capacity, material, machinery etc. Technology is considered to be effective as well as cost efficient resource which helps firm in reducing the expenses and increasing working efficiency.
• Organisational or business resources: It includes an enterprise reporting structure. In addition to this, formal planning, controlling, and coordinating systems are also recognised as business resources (Down, 2010).
• Human resource – It is considered as another crucial resource which is required to execute several operations and accomplishing business objectives. These type of resource includes employees.

Intangible resources include reputation, trademarks, copyright, patents brand image of an organisation. Goodwill of the company is considered to be the valuable assets on which the success of firm is based. It is required by an Entrepreneur of Delta Hotel to concentrate on the needs of customers and delivering them good quality as well as proper quantity of goods or services. As this will assist an organisation in maintaining the reputation in the market. In context of intangible assets, business owner is required to facilitate proper planning for resources. As this strategy will assist firm in proper allocation of resources and aid business entity in eliminating waste (Doppelt, 2017). 

TASK 2

P 3 Proposal for launching a business

Business proposal is defined as a document which is sent by the business owner to the investors or other stakeholders for seeking support for launching business in successful manner. The business Proposal related to the starting up of new business venture includes the detail about the aims, objectives, mission, vision business operations, employees, marketing strategy, financial information, organisational strength etc. Business proposal can be designed for the completing the project in successful manner, for getting the supplies of material, to be the vendor of a certain product. An entrepreneur of Delta hotel has planned to create unsolicited business proposal with the intention of attracting the investors and influencing them to make investment (Cunningham, Sinclair and Schulte, 2014).

• Going beyond business plan – It is very much important for an entrepreneur to make suitable plan before launching a business. Sufficient amount of time can be taken by an entrepreneur before starting up of new business venture. The formulation of business plan is the valuable and significant activity.
• Testing idea- It includes the analysis of measuring an effectiveness of ideas. Business owner is required to develop understanding about the activities as well as operations which are required to be executed for accomplishing objectives. In this, there is launching of business activities in context of hotel, they should monitor or personally should taste the products and they should give free treat to the people before launching their business activities. Manager in an organisation should be appointed for taking the feedback from clients.
• Development of understanding about market-Before launching business, it is essential to gain information about the type of market. It is very much essential for an entrepreneur to have information about the different important forces including the primal suppliers, distributors, competitors and customers.
• Determining the future customer group- It is very much important for an entrepreneur to develop the understanding about customers’ needs and demand. As this will assist business owner in making suitable decisions related to the development of products or services.
• Identifying the source of financial resources- An entrepreneur should take high initiative in order to adequately capitalise the business and to have sources for capital growth. It will help business owner in having adequate amount of the resources during the time of financial crisis (Mason and Brown, 2013).

P 4 Assessing the skills and capabilities required to launch a new venture

There are various skills and core competencies are required by an entrepreneur for establishing new business venture in successful manner. Small business enterprise can be start with few numbers of workforce, which indicates that the business owner has to facilitate much of the operations as well as task. An entrepreneur has much responsibilities related to business. Some abilities as well as core competencies which are required to be developed by business owner are as follows:

Leadership skills- This is considered as very important abilities which are required to be possessed by an entrepreneur. This quality assists business owner in guiding people and motivating workers to work for benefit of company. It is required by business owner of Delta Company that they should listen to the problems as well as suggestion provides by their employees. As this strategy will assist them in developing as well as maintaining strong relationship with workers.

Project or business management skills- It includes the ability to efficiently manage projects. These abilities are needed for establishing aims and objectives, managing people, operations or resources in systematic manner. In context of establishing new business venture, project includes developing websites, designing customer service policies or schemes etc.

Presentation skills- When implementing the new business ideas, at many phases, entrepreneur is required to give presentations. This types of abilities are helpful in attracting employees, investors, contractors etc.

Knowledge about marketing techniques as well as products -When establishing the business knowledge about the market as well as demand of the product is very much important in order to ensure success.

These type of skills and core competencies can be gained by attending lectures, seminars, training events etc. It can also be developed by working as an employee with big organisations. Knowledge about business can be gained by conducting survey, research, seeking advice from experts etc. (Zortea-Johnston, Darroch and Matear, 2012).

TASK 3

P5 Different promotional activities and channels

There are various promotional activities that can help the Delta hotel in successfully promote the brand and making people aware with the products and services that it is going to offer. Promotion is considered as effective marketing approach that helps the entity in increasing number of consumers in the firm and enhancing revenues of new entity (Bilton and Cummings, 2010). As hotel industry is facing huge competition, there are many big hotels such as Hilton, Marriott etc. those which are running their operation s well and have earned good market reputation. In such condition it has become essential for the Delta hotel that to take support of effective promotional activity so that it can meet with the objective and can gain competitive advantage as well (Clapham, 2015). Promotional activities and channels are as below described:

Advertisement

It is one of the major promotional activity and it is traditional method of marketing. Delta hotel can give news in newspaper or magazines about the new hotel. It can give information about various products and services that it will provide to its consumers. It can advertise its firm through TV advertisement as well (Achrol and Kotler, 2014). By this way information will be circulated to the mass audience.

Sales promotion

It is another promotional strategy in which Delta can promote its brand. In this entity can provide free gift to the consumers, special discounts to the first consumers those who visit the hotel with families. These are effective promotional ways that can attract people towards the brand. It can be done through templates or brochure etc (Athey, Suckling and Rogers, 2012).

Social media promotional

It is another promotional activity in which company can promote its brand in social networking sites. It can develop a website and can send details of the new brand with amazing pictures to the consumers on their social networking sites. Interested people can look upon this brand and they can forward to other friends and relatives. This is online promotional channels that is cost effective for the organization (Bilton and Cummings, 2010). This can support the entity in generating more revenues in the organization.

Telemarketing and email marketing

It is another promotional activity that can be done through telephonic medium. In this entity can communicate to the consumers and can make them aware with excellent products and services. Delta hotel can also communicate through email. Both these promotional activities are effective and can support in circulating the message to the mass audience and influencing their behaviour (Clapham, 2015).

All these promotional activities are effective enough for the Delta hotel because by this way it would be able to promote its brand well and will be able to attract more consumers towards the brand (Athey, Suckling and Rogers, 2012).

P6 Develop appropriate promotional activity plan

It is very important for the new venture that to develop appropriate promotional activity plan that can help in gaining attention of mass audience in London.

• Pre-dispatch planning: It is very important for the company that to design effective plan because there are many other big organizations those which are performing well in the market (Bilton and Cummings, 2010).
• Delta hotel has to assess plan and conduct proper research before propelling it.
• It has take care of budget and available resources.
• It has to develop relationship with suppliers so that when new venture is being launched then it can meet with the deaden of consumers (Clapham, 2015).

Assessment of products

Delta hotel has to take care of proper assessing before launching the venture into the market. It has to ensure market requirements, competitor strategies and needs of consumers. This will help the entity in gaining success and fulfilling its objective effectively (Achrol and Kotler, 2014).

Assessment of market

Once planning has been properly examined then entity has to assess market requirements. It has to decided appropriate advertisement strategy that can be used by the Delta hotel in its launching. Company has to look upon advantage and disadvantage of this strategy before launching it into the market (Clapham, 2015).

Planning for launching

It is next phase and very crucial moment in which Delta hotel has to plan for launching of new venture in the London. In this phase it has to take care of various aspects:

• It is very important for the organization that to look upon market competition in this industry. Hotel industry is facing huge competition, there are Hilton and other big firms that have strong control over the market (Bilton and Cummings, 2010). It has to conduct research about needs of consumers so that it can successfully gain their attention and can influence their mind.
• Develop effective objectives are another major consideration aspect. Delta hotel has to develop clear goal and it needs to be communicated to the employees properly. So that no complication arise during this launching of the venture (Clapham, 2015).
• Company has to create promoting system,. It has to take support of appropriate medium through which it can reach to the mass audience in cost effective manner.
• Execution needs to be done after completing all the phases (Achrol and Kotler, 2014).

Related Sample : Legislation and ethics

TASK 4

P7 Cash Budget

Delta hotel will have to spend some money in pre-launch phase and after launching phase as well (Athey, Suckling and Rogers, 2012). By considering the expenditures and revenues that can be generated cash budget is being prepared as below:

Pre-launching expenditures of Delta hotel

Cash Budget

UPTO50%

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