Unit 19 pitching for a new business final pro PDF

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Hecham alraesMaking a dream realityIntroductionA microbusiness is a small enterprise which operates on a very small scale. The scale is typically measured according to the business’s number of employees, total worth, and occasionally how much money was required to start the business. Micro businesse...

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Unit 19 Hecham alraes

Making a dream reality Introduction A microbusiness is a small enterprise which operates on a very small scale. The scale is typically measured according to the business’s number of employees, total worth, and occasionally how much money was required to start the business. Micro businesses are a subcategory of a small business, with sales and assets valued at less than $250,000 per year and less than 10 employees, including the owner. Furthermore, micro businesses require less capital to start and operate and their business activity is lower than larger businesses. In 2021, there were 5.3 million micro-businesses within the UK accounting for 95% of all businesses. The listed sort of business only accounts for 21% of employment and 14% of turnover within the UK.

5 Main areas of development Technical breakthrough is when a technology overcomes a problem or a barrier, and when it delivers a new capability or performance, accompanied by a growth in knowledge and understanding. An example of technical breakthrough is 3d printing. The following example demonstrates advanced technology and offers individuals and businesses advanced support which can aid them in developing and expanding in their sectors. Non-technical breakthrough is Any form of technical invention or progress. It is frequently important to develop fresh marketing methods to sell new products. If a company's organizational adjustments permit this, productivity will rise. Non-technical breaks are vital as they allow to track and fulfil benefits so that you advance forward. An example of non-technical breakthrough is Pandora, as they implemented a new design in their products. Serendipity is a positive occurrence and development of events by chance. Serendipity aids an individual or business in creating extraordinary innovative ideas unintentionally. An example of serendipity is penicillin as it was a scientific unplanned discovery which supported others significantly proving that it was a successful invention. Purposeful development is when a business or individual heavily invest in their products or services in return for a successful impact. Unlike serendipity, purposeful development is international and planned beforehand meaning that the success relies on the investment and planning. An example of purposeful development is Starbucks where the business heavily invested in their products in return for a higher market share. Idea from another environment/country is where business owners discover new ideas in other countries or outside of their market, develop it and implement it into their products and business to seek a chance for success and development. An example of an idea from another environment/country is sushi. This is where some restaurant owners introduced the listed product which is a type of food into their restaurants in unique ways. 1

Unit 19 Hecham alraes

Business ideas Healthy drinks business A healthy drinks micro business which offers refreshing drinks made with natural components that will be marketed in 500ml plastic bottles. The beverage will be available in multiple unique flavors which are mixed to create and introduce new refreshing flavors to the market. The flavors will be extracted from natural components and fruits which are collected from the supplier’s farm to ensure it looks healthy and tasty. Purposeful development is the type of idea used to generate the listed business idea since I will be investing and planning beforehand therefore, the chances of the business succeeding are higher. Purposeful development is used for the listed business as I will invest in the creation of unique healthy drinks in return for a high number of consumers. The USP of the business will be smoothies and cocktails with an additional mixture of fruit toppings to provide a unique, healthy, and tasty flavor. Resources which will be taken into consideration are human, financial, and physical resources therefore, the business is able to cover all areas effectively. Starting with the human resources, the business will gather no more than 5 employees including the owner since it will be one store for a starter which requires no more than five individuals to function. Secondly, the financial considerations which are taken into plan are the employees’ wages, salaries, the cost of opening a store at a mall and the cost of production. Thirdly, physical resources which will be considered are machinery as the business will provide employees with new modern machinery which supports them in creating the drinks. The business will operate in the secondary and tertiary sectors as the components required for the making will be collected from the suppliers. After this, the components will be used in the production process through the tertiary sector to provide services and sell the drinks to the public. On-site Clothes store/ online On site and online high-quality clothing store where customers have the chance to personalize their clothes online and receive the product within a week or two. Furthermore, like any other clothing store customers can purchase the product they want if their size is available in the store. Customers will be able to create an account and shop with the business online therefore, they are able to access a wider selection of clothes as they will be able to customize their products through selecting the size and color patterns they would prefer on their clothes. In addition, the store will offer the most common sizes of clothes within the clothing market therefore, more customers are likely to make purchases on site. Non-technical breakthrough is the type of idea development implemented to create the listed business idea, as I will embed new designs on my high-quality clothing products therefore, my business differentiates in the clothing market when compared to other brands. The USP of the business is the online sector of the firm. This is because customers will be able to personalize their clothes through a wide range of selection which is rarely offered by other high-quality clothing brands within the market. Human, financial, and physical resources are considered when setting up the listed 2

Unit 19 Hecham alraes

business. This is because 6 employees are required to work on site and 2 are expected to run the online store therefore, the business will have to ensure the right number of employees are heired and equipped with the right equipment to fulfil their tasks and roles for the business to succeed. For the financial considerations, the business will have to ensure they pay their staff wages and salaries, suppliers, and the cost of production/ rent of the on-site store. For the third consideration, which is physical, the business must ensure their staff are equipped with the right machinery to create orders received from their online store. The clothing business will also operate in the secondary and tertiary sectors, as materials for clothes production will be received from suppliers for it to be sold to the public through the online and on-site clothing store. Advertisement business A micro business which is approached by other businesses to promote them through various advertising methods such as creating a website or promotion videos for a business. The firm will not have a physical store as employees will be able to work from their homes alongside the owner of the business. Individuals and organizations will be able to contact the corporation via a phone number or a URL to negotiate a price and service. The business idea is enhanced from another environment/ country. This is because a popular website has conveyed success through embedding the business idea therefore, I believe that it would be successful to implement similar ideas into this business with additional factors such as hiring experienced employees and providing them with modern technology. The USP of the business will be the pricing costs as I will offer high quality work with low pricing costs. By offering lower than average pricing costs, the business will differentiate to their competitors and gather a larger number of consumers which aids the business in expanding. The listed method requires three resource considerations which are human, financial, and physical resources. For human resource considerations, I will ensure the business has a suitable number of employees which is 6 excluding the owner and are equipped with necessary equipment. Moving to the second resource consideration, which is financial, employees’ wages, salaries and price of programs and equipment must be considered. Lastly, physical resources are very important for the advertising business. This is because employees must be provided with modern technology and programs in return for high quality work which is part of the business’ USP. The listed business operates in the secondary and tertiary sector as the technology will be purchased from popular suppliers for the business to offer advertisement services for consumers.

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Unit 19 Hecham alraes Factors

Startup costs

Availability of resources

Health and safety regulations

Target audience

Competitio n

Total scores

Options

Rank= 5

Rank=4

Rank= 3

Rank= 2

Rank= 1

Healthy drinks business

4 x 5= 20

3 x 4= 12

2 x 3= 6

3 x 2= 6

3 x 1= 3

47

Physical Clothes store /online

5 x 5= 25

2 x 4= 8

3 x 3= 9

4 x 2= 8

5 x 1= 5

55

Advertise ment business

4 x 5= 20

4 x 4= 16

1 x 3= 3

4 x 2= 8

4 x 1= 4

51

Scale: 1-5 least to most important factors/ ranks for business ideas are easiest to hardest (lowest score= best option) A decision matrix is a technique for evaluating and selecting the best option from multiple options. This tool is especially beneficial if you're debating between numerous options and need to evaluate several factors before making your final decision. The decision matrix shown above includes five main factors which should be taken into consideration when planning the three business ideas. The factors are ranked from least to most important, and the business with the lowest final score is the most viable choice to undertake. According to the decision matrix above, I can infer that the healthy drinks business achieved the lowest score. Therefore, this conveys it is the most viable option to undertake. Moreover, I will be selecting the three most important factors out of the five to discuss regarding the healthy drinks business. Staring with the first important factor for the healthy drinks business which I believe must be the first factor to consider is the start-up costs (scored rank 4 for the business). This is because the business must ensure they are able to provide the funds needed to cover all areas of the business therefore, the business idea works effectively and succeeds. The listed factor is most important since the business must secure their start up costs before considering any other factors. The second important factor for the healthy drinks business is the competition within the market (scored rank 3 for the business). Due to competition, the business will have to consider where the store will open and what products they must provide to succeed. As a result, this can 4

Unit 19 Hecham alraes

have a huge influence on the business, since if the firm does not explore the stated concepts, it will most likely fail and fall behind the competition. Therefore, this factor is the second most important as the business must ensure it is viable for competition before launching. The third and final important factor for the healthy drinks business is the availability of resources (scored rank 3 for the business). Like any other launching business, the healthy drinks business must ensure the availability of their human, physical and financial resources. One example of this is, making sure the business is equipped with the right machinery to produce their products. The listed factor was ranked third for the business since the start up costs and competition must be taken into consideration before paying for necessary resources. The decision matrix conveys the healthy drinks business as the most viable option. However, the other two business ideas can be taken into consideration. This is because the clothes business idea managed to achieve a total score of 55 which is 8 more than the selected business idea (healthy drinks business). Furthermore, the advertisement business achieved 51 which is 4 more than the selected option. As a result, the listed scores convey that the businesses are close and can be implemented since they are conveyed to be viable through the decision matrix.

Processes Manufacturing is the process of converting raw materials into finished goods that can be sold to businesses or individuals. It can be done by hand, machines, tools, or chemical processes. It is the process of adding value to things that allows firms to offer completed goods at a greater price. The healthy drinks business is going to be manufacturing their products. This is because the business will turn the raw material received from their suppliers into healthy drinks which is the main product sold by the business. The raw materials are fruits and natural components required for the making, the business will receive them from farmers to ensure the drinks are natural and healthy. Furthermore, the products which will mainly be created for a starter are healthy smoothies and cocktails with additional toppings. The beverage requires specific machinery for creation such as capping machines and blenders to ensure the drinks and different flavours are mixed well before being sold to consumers. The blenders which will be used by the business are metal and glass containers which include a metallic blade at the bottom to ensure components are mixed well. Semi-automatic capping machines will be used as they are easier to monitor and correct if any mistakes occur. Moreover, the business will ensure the least amount of waste is produced since they will be offering healthy recycled drinks for a cheaper price. As a result, the business can expand efficiently through an ethical route which can aid their business in gathering a large number of consumers since they are being environmentally responsible from their side.

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Unit 19 Hecham alraes

Sourcing is the process of selecting suppliers, negotiating supply contracts, and overseeing supplier performance to meet cost competitiveness, operational efficiency, sustainability, risk management, and quality objectives. The selected business’s suppliers are local farmers which are sole trades. Therefore, the business is more likely to persuade and build relationships with them since it’s one individual they have to make an agreement with. The business will create a contract with a suitable farmer for the start therefore, they are able to receive raw materials which are fruits when needed. Furthermore, the healthy drinks business will explore other farms; as a result, if the initial supplier no longer meets the needs of the company, they will be able to sign a new contract with a new one. In addition, the business will ensure they work and receive supplies from ethical and well-known suppliers therefore, their brand image is positive in the beverage industry. Outsourcing is the process of contracting a third party to execute services or generate commodities that would otherwise be performed in-house by the company's own employees and staff. The selected healthy drinks business doesn’t provide any outsourcing since it only provides on-site services for consumers.

Channels to market The type of beverage provided for the selected business is healthy smoothies and cocktails sold in 500ml cups. The product will follow a specific channel in order to reach the business’s consumers. The channel consists of the manufacturer, producer, and consumer. The manufacturer is the first sector of the channel since they provide the business with the raw materials required for the production. The manufacturers for the selected business are farmers since they plant the fruits/components, harvest, and sell them to producers which in their part they turn it into their products. The second sector of the channel used for my selected business is the producer. This is because after receiving the components and fruits required, my business will be able to produce smoothies and cocktails from the fruits/components purchased from farmers. Finally, after receiving the necessary products, the business will be able to produce different flavours of healthy refreshing drinks and provide it to their consumers through their services. As a result, this concludes the channel followed by the selected business to reach their consumers from start to the end point.

Organisational form and roles and responsibilities An organisational structure is a system that specifies how specific operations should be directed in order to meet an organization's objectives. Rules, roles, and obligations are examples of these activities. The organisational structure also impacts how information moves within the corporation at different levels. Organisational structures may differ depending on the size and type of the business. For example, a micro business would embed a flat structure as they would 6

Unit 19 Hecham alraes

have less than 10 employees therefore, this type of structure would be most suitable. A flat structure is an organisational structure with only a few layers of management where the manager has a large span of control since they know every employee. On the other hand, larger business would operate in a tall or matrix structure as there is a higher number of employees and managers distributed in diverse departments therefore, they are required to implement the listed types of structures. Tall structure businesses operate nationally using a top-down approach where managers have a narrow span of control since there are more employees working for the business. Furthermore, matrix organisational structure businesses mainly operate internationally, where teams report a number of different supervisors. It promotes teamwork and can help businesses develop more innovative products and services by allowing employees to share ideas from various departments. My selected business will operate using a flat structure. This is because it is a micro-business which includes no more than 5 individuals including me (owner). A flat structure would be the most viable option for my business since it will allow me to stay informed of all factors regarding my business and employees. As a result, embedding the listed structure will support me in creating accurate and beneficial decisions which will aid my business in expanding and potentially embedding a new organisational structure. Furthermore, I will discuss the advantages and disadvantages of a flat structure on my selected business. One advantage of embedding a flat structure into my selected business is higher motivation levels within the employees. This is due to more autonomy and responsibility since there are 4 employees within the business. As a result, employees may feel more responsible and valued which will increase productivity levels within the workforce. Another advantage is that a flat structure embeds less layers within the business since there are less employees leading to better communication. Better communication within the workforce would allow employees to follow clear instructions leading to higher productivity within the healthy drinks business. A third and final advantage of flat structure to my selected business is large span of control. This allows me keep control of all factors within my micro-business since, it is a low income and small workforce business. A disadvantage of implementing a flat structure into my select...