Different Types Of Resources - New Venture

TASK 1

P1: Identification of specific target markets and competitive analysis

Delicious Delictable is a new restaurant which is started in Bermingham city of United Kingdom due to having huge crowd. It has offered multiple number of dishes of different countries with an objective of achieving huge customer strength across worldwide and earn huge profits. The main dishes in their menu list is Thai’s Tom Yum Goong, Spanish’s Croquettes, Chinese’s Kung Pao chicken and Chowmein , Indian’s fish curry and butter chicken. etc. It has been carefully observed by the entrepreneur that the people of UK prefer to eat foreign dishes due to which such foreign dishes are decided to offer by the restaurant. Through conducting research, it ha been found that the main motive of customers to visit at restaurant is to taste different varieties of food at one place (Bijker and et. al., 2012). In order to make decision regarding establishing new venture in which city, Bermingham city is selected as it has been identified that it is one of the popular city where large number of local people as well as tourist are arrived every year. This, it increases the chances for Delicious Delictable to survive in market within short period of time.

In order to make new venture more successful in first attempt, an entrepreneur decide ton run restaurant in partnership so as to get enough knowledge and new ideas to bring restaurant ahead among the existing competitors. Delicious Delictable has acquired approx. 1600 square feet near Bermingham on lease of 5 years with an aim of continuing business more successfully for upcoming years. As a restaurant is run in partnership thus it becomes easy to egt adequate amount of funds from different sources such as own capital and loans from financial institutions which may around 400000 to 490000.

Objectives

• To generate huge income
• To maximise satisfaction level of customers coming from different nations
• To capture huge market share
• To become known in market within short period of time.

Target market

It is essentially required for an entrepreneur to identify the targeted customers which decide the growth and success of Delicious Delictable. For this,it is important to conduct research in order to find out the taste and preferences of customers along with the challenges that may comes in the way of success of restaurant. Information gathered from research directs the management to make an effective decisions and strategies to attract targeted customers through adopting various promotional tools and techniques (Dos Santos, Patel and D'Souza, 2011). For this, market has been segmented in different parts which are given as below:

Demographic:

Under this, the market has been segmented on the basis of characteristics of customers such as gender, caste, religion, income level etc. thus required to be considered and analyse such aspects by the management in order to grab their attention. As it has been identified from the research that mostly young people prefer to visit restaurant with their colleagues with an aim of tasting foods of different nations at one place. Therefore. All the plans and strategies shall required to be made to attract their interest and buying behaviour.

Geographic:

Under this, the market has been segmented according to the locations or places. In order to generate huge income, the management need to identity such location where their restaurant can get maximum crowd. Due to this, Bermingham city has been finalised by the management as large number of local people along with the visitors are visited at such city which increases the chances of increasing sales figure of restaurant (Duggal and Sassoon, 2015).

Psychographic:

Under this, the market has been segmented on the basis of lifestyle, attitude of people etc. which affects the decision making of management. For example, people form medium and higher income group mainly prefer to visit at such places in order to taste foreign dishes at one place. Thus, such income group are required to be targeted by enterprise in order to achieve their loyalty.

Competitive analysis

As in Bermingham city, there are huge number of restaurants exist which may affect the existence of Delicious Delictable. Therefore, it must required for management of Delicious Delictable to make proper analyse of their rivals first and accordingly make competitive plans and strategies that bring them ahead than their rivals. Delicious Delictable is operated it business in Bermingham city where lots of competitors in same field are exist such as Adam’s restaurant, Simpson, San Carlo restaurant etc. which brings lots of challenges and difficulties towards Delicious Delictable to attract people of Bermingham. The only way that such restaurant could compete with such rivals is through offering optimum quality food products at an effective prices with healthy environment and seating arrangements. It will help them in attaining good image in customer’s mind which help management to achieve their loyalty as well (Fernhaber and Li, 2013).

P2: Specific tangible and intangible resources that required for a new venture

Resources are a valuable asset which supports an organisation in running business more smoothly. It can be of different types such as tangible and intangible resources which contributes maximum to the growth and success of an organisation. An entrepreneur if have sufficient resources then only they are able to think about starting a new venture otherwise it is much difficult for them to run business effectively. Tangible resources includes such resources which can be seen and touched such as Plant & Machinery, Land & Building, Employees, funds etc. Whereas intangible resources are such resources which are not visible instead plays a valuable role in supporting organisation to achieve growth and success. Delicious Delictable deals in offering multiple number of dishes of different nations which requires huge amount of human capital, funds and other resources. For this, the management of Delicious Delictable are required to arrange and manage resource in order to operate business in more smoothly manner. For example, recruiting experienced cooks who have knowledge of cooking multiple dishes of different nations (Hird, 2012). Thus, resources are essential need of every enterprise which are further discussed under the below:

Tangible resources:

It is such type of resources which are physically present in an organisation such as Plant & Machinery, Land & Building, Human resources, funds, food items etc. thus essential required to operate business in order to meet customer's needs and requirements. Among various resources, it must required for new venture to have financial resources in order to acquire other resources and execute business activities in an effective and efficient manner. So, it is important for an entrepreneurs of Delicious Delictable to raise funds from different sources such as financial institutions, banks, venture capital, peer-to-peer lending, crowd funding etc. due to which they can financially stable in market. Along with financial resources, human capital is also play an important role in doing all business activities such as producing food items, marketing their products, well treatment to visited customers at their restaurant etc. This will help restaurant to achieve huge customer strength (Hulbert, Gilmore and Carson, 2013).

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Intangible resources:

It includes such resources which has no existence but instead of that playing an important and vital role in growth of business. Such resources includes trademarks, goodwill, customer relation etc. which can be acquired through operating business in more effective and ethical manner. For example, offering quality and healthy food products help in achieving loyalty of customers and establish better relation with them with an expectation of making them regular customers. Through achieving loyalty of customers, Delicious Delictable can easily achieve good reputation and goodwill in market which bring disadvantages to their rivals. The management of Delicious Delictable ned to develop new ideas and concepts on continuous basis with a motive of maximising the satisfaction level of targeted customers. It must also required for entrepreneurs to secure their unique and new ideas that makes their restaurant different from their rivals through using different tools such as copyrights, trademarks, patent etc. This will help Delicious Delictable to make their own identity in market.

TASK 2

P3: Formulation of credible proposal to launch a new venture

To make new restaurant more successful, it should required to have adequate knowledge about market and sufficient skills/abilities in order to formulate an effective plans and strategies for future growth and success in competitive market (Jayawarna, Jones and Macpherson, 2011). Market knowledge can be get through conducting research about market trends and customer's taste and preferences which directs the management to bring out new policies and concepts to maximise the satisfaction level of targeted customers (Kariv, 2013). Such plan can be formulated for the betterment of Delicious Delictable are given as below:

P4: Skills and capabilities required to launch a new venture

There are specific skills and capabilities required to have present in an entrepreneur so as to make Delicious Delictable more successful in market within shorter period of time. Such skills and abilities are listed below:

Management skills:

It is crucial to manage all business activity in effective manner as if any discrepancy are occurred then it may brings big disadvantage to business. Thus, it is important for an entrepreneur to have management skills in order to manage all things in profitable way. For example, allocation of resources to different activities such as production and marketing activities is part of management skills (Klotz and et. al., 2014).

Decision making skills:

Due to high competition in market, every decision should be taken more carefully in order to bring their business ahead than their rivals. Thus, decision making skills is also an important skills to have present in management which help new business to compete in complex market environment.

Leadership skills:

Contribution of employees is must if want to achieve growth and success thus it is essential to have leadership skills in an entrepreneur in order to bring motivation among employees so that they can bring new ideas and concepts in order to maximise the satisfaction level of customers visited at their restaurant.

Risk taking ability:

Business environment is full of uncertainties which brings lots of risk which may affects the existence of Delicious Delictable. As risk also present while grabbing opportunities that brings Delicious Delictable ahead than their rivals. For this, an entrepreneurs must be a risk taker in order to deal with influencing factors in more effective and efficient manner.

TASK 3

P5: Determination of promotional activities and channels for launching a new venture

Promotion is must required to acquire knowledge by the customers about the new restaurant established in market. For this, it is important for management of Delicious Delictable to adopt various promotional tools and techniques in order to grab an attention of targeted customers about the existence of new restaurant and their offerings in market. Such promotional tools includes:

Social media platform:

This is a platform where large number of people across worldwide are available due to which it becomes easy for Delicious Delictable to grab their attention through advertising their offerings and other services on such platforms which includes Twitter, Instagram, Facebook etc. This will bring interest among customers that will motivate them to visit at such restaurant at once whenever come to Bermingham (Marlow and McAdam, 2012.). Choose the best

Mobile Billboards:

Creating unique and creative punchlines, logo etc. can easily grab an attention of customers through out the world thus are more helpful and effective. Through this, the customers can easily recognises their restaurant with their logo or symbol.

Personal promotions:

In this promotional technique, the members of Delicious Delictable personally meet to the targeted customers and influence their decision of visiting at restaurant in favourable manner. It can be done through distributing pamphlets, Brochures, catalogues etc. It takes time but once it came into customer's mind then it will be beneficial for venture for longer period of time. Choose the best assignment help with chat support at an affordable budget.

P6: Formulation of appropriate promotional activities plan for both launch and pre-launch

It is important for management of Delicious Delictable to make a suitable promotional planning before launching and at the time of launch of new restaurant. As first impression in market create permanent image in customer's mind thus it must essential to arrange launch programs in more positive way (Morris, 2015).

Pre-launch promotion:

This is the primary stage before launching new venture in market. At this stage, the business has focused on starting their own restaurant website in order to provide details about the openings to media channels along with the time and venue.

Launch:

This is the stage where the new venture firstly introduced in the market with the required information related with them. At this occasion, all invited media are gathered to cover every information about the restaurants along with their owners which grabs an attentions of large number of customers along with their rivals. In this opening party, the owners or partners of Delicious Delictable are answering the questions asked by the media in order to provide sufficient information in detailed (Read and et. al., 2016).

TASK 4

P7: Monthly cash budget for the pre and after launch phase

Cash Budget is made to identify the cash requirements in order to execute all business activities in an effective and efficient manner so as to achieve desire goals and objectives. Here are the cash flow budget for Delicious Delictable for the launch of restaurant and an after 12-18 months (Robb and Watson, 2012).

Cash budget of Dream Delicious restaurant before launch

Cash budget after first 12-18 months

P8: An appropriate legal form for the venture

There are different types of organisation which need to be followed different legal systems and structure in order to sustain in market for longer period of time. Due to this, an entrepreneur first clearly decide which type of organisation they want to start after analysing all legal structure and systems. Such type of organisation includes sole trader, partnership and companies which are briefly discussed under below:

Sole trader:

This is the business which owned and controlled by single owner without facing any legal distinctions due to which it become easy for an entrepreneur to start such type of company. A single owner has attained unlimited liability towards the business which means his/her personal assets are also be used while repaying debts of company. As a single owner, the invested capital are less due to which company has operated its business at low scale. All the profits and losses are bear by himself only (Song and Vinig, 2012.).

Partnership firms:

In this, two or more partners come together to form a company with an objective to earn profits. In this, the liability of partners is limited up-to the extent of unpaid amount. It is formed with a contractual agreement called as partnership deed which contains al terms and conditions regarding sharing profit &loss ratio, invested capital etc.

Company:

It can be classified into two i.e. private and public which can be established according to their nature of business activities. Private company follow more rules and regulations as compared to public company. For example, private company doesn't allow to invite public to subscribe their shares whereas public company does (Zafar, Yasin and Ijaz, 2012).

In the present assignment report, Delicious Delictable is formed in partnership with an objective of achieving success within short period of time with the help of getting contribution from partners. Due to high competition, it become tough for new venture to exist in new market thus it required to get adequate support from more than one person due to which Delicious Delictable has been formed in partnership. Due to this, the loss can be share equally among partners which reduce burden on single person. Different new and innovative ideas obtained from different partners helps in bringing new concept also increase the chances of sustaining in market for longer period of time (Launching a new venture, 2018).

CONCLUSION

It has been concluded from the above project report that there are lots of challenges and difficulties comes in the way of success of new venture which requires an effective skills and knowledge in an entrepreneurs so that such challenges can be tackled in more effective ad efficient way. Challenges may arises due to high competitions, insufficient resources, inadequate support from employees, changing trends in market etc. which affects the existence of new venture. For this, it is important to invest money on conducting research in order to find out influencing factors and accordingly make a effective decisions and plans to deal with them so as to sustain in new market and earn huge profits. Adoption promotion tools is also taken into account in order to spread information about new venture in market.

REFERENCES

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• Duggal, S. and Sassoon, D., 2015. Crowdfunding: Insights Into The Motives That Influence Entrepreneurs When Launching A Successful Campaign.
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• Marlow, S. and McAdam, M., 2012. Analyzing the influence of gender upon high‐technology venturing within the context of business incubation. Entrepreneurship Theory and Practice. 36(4). pp.655-676.
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