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LUBM302- New Venture Creation Assignment Sample

Pages Pages: 22

Words Words: 5536

Introduction Of New Venture Creation Assignment

Business Name and Business Description

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The firm is titled Automobus, a transport service speciality that provides clients with inexpensive transport services. The authorities will choose pleasant food products such as fruit juice, chocolates, and so on throughout the customers' travel. Automobus' objective will be to "provide consumers, in a large section of transportation, the most satisfying options from dawn to dusk." The major strategy of this firm will include uniqueness in its services, which will enhance the competitiveness and efficiency of the company in the UK transportation industry (Fellenstein and Umaganthan, 2019).In order to establish a loyal consumer basis, the firm will concentrate on reliability as well as offer consumers pleasant, inexpensive service costs.

Opportunity being addressed

As a result, in recent years the UK transportation business has developed considerably, which seems to be a huge benefit for the development and rising of cars. Automobus is now in a position to offer a comprehensive range of services in order to carry out its business successfully in the UK market, especially in the London market (Mazzucato, 2018). In comparison, new service enhancers are considered crucial, non-pandemic goods and vital living requirements. The Government's security regulations will allow Automobus to run efficiently and smoothly in a post-pandemic fashion.

Description of Product or Service

A wide range of products is offered by Automobus on all autos or commercial vehicles transported. The variety of services is wide, which meet both customer expectations and wishes from all market groups. Automobus services comprise a wide range of UK-wide travel with a reasonable price for the journey maintained and taken into account by consumers in every area (Hsiao and Chang, 2019). In general, organisations nowadays have focused heavily on the comprehensive development of their services through the implementation and maintenance of various hygienic procedures including wearing masks, hand gloves, face shields, sanitation sprays, etc.Moreover, the epidemic will only diminish customer contact with the usage of AI technologies.

Intellectual Property Details

Automobus acknowledges the intellectual property rights of other companies and aims to guarantee that the intellectual property rights of third parties in their company are not infringed. One of the first things about Automobus is the term "Automobus" in London and the head logo for the buses is in design. This will expense them around £3,000 to register the trademarks under the guidance of a litigator. After negotiating commercial contracts with merchants like London Sovereign Ltd., etc. they will nonetheless be comforted (Basire, 2017). In addition, copyrights on its webpage are protected, which in turn safeguards the integrity and privacy of the business.During the granting of the appellation, the word "pending patent" can effectively discourage the imitators requested.

Implementation of Marketing Plan

Explanation and Justification of Chosen Market, Market Research Conduction and Industry Analysis

Market Research and Industry Analysis

For the opening of the new venture of the company Automobus, the city of London in the UK is chosen.People, organizations, the environment, and the broader economy all benefit from better transportation connections. Good transportation connections can assist people to find work by broadening their job search region. It can also cut down on commute time and also save living costs. Lower-income groups, where 42% lack access to a car or van, rely heavily on external transportation (compared to only 8 per cent of those in the highest income group)(Ramsey and Asmar, 2020). In the United Kingdom, nearly half of city commuters work and live in separate local authorities. This implies that transportation systems such as roads, buses, trams, rail, and bicycle paths should link diverse routes around the city region. From outside London, however, other modes of transportation, such as bus, train, walking, and cycling, are used to differing degrees (Reardon and Marsden, 2020). As per a TripAdvisor study of international travellers, people outside the UK feel that London's public transportation system is among the safest and most effective in the world.

From the above graph, it can be noticed that by 2020, the United Kingdom has reached nearly US$3.86 billion in coach and bus transport market size(Statista. 2021). The bus and transport services and coach charters are offered on the scheduled long-distance trips. The London Underground and the ever-jovial London cabbie are singled out for particular praise. London's public transportation system acts as the United Kingdom's rail, aviation, and road transportation centre. The London bus network is vast, with over 6,800 scheduled services each weekday transporting approximately six million passengers on over 700 different routes, trying to make it one of the world's largest bus systems and by far the largest in Europe, providing ample opportunities for Automobus to acquire high growth and profitStatista. 2021).

Justification of the Chosen Market

London buses transport more passengers than the Underground, but they are primarily used for local travel. In addition to the vast daytime system, there is indeed a 100-route night bus group that offers 24 hours a day. TFL's arms-length subsidiary company, London Buses Ltd, operates the London Buses network and its branded services, as well as the Red Arrow and East London Transit networks (Reardon and Marsden, 2020). Bus operations in London were tendered internationally by privatizing London bus services in the mid-1990s and many private firms ran routes, while TFL was setting routes, schedules, prices and even the kind and type of vehicle employed. Companies may bid for the right to run London bus services for a certain fee above a period of time, with incentives and penalties in place to promote excellent performance against certain criteria (Ghosh, 2020). Since TFL's establishment in 2000, the bus system has seen major investment, with an increase in the proportion of routes (especially night services), frequency, reliability, and the quality of the vehicles utilized.

Marketing Plan

Demonstration of Chosen Target Market

It is clear that there generally are various types of persons in the major organisation. The transport industry in London is changing yet more, with certain types of resorts and certain conventional ones increasing. Over past years, the transit industry has extended over standard supply chains to provide better services in a complex environment of client behaviour and segmentation. The goal is to see how an enterprise shows or emphasises itself on the market(Hirschhorn,Veeneman and van de Velde, 2019). Automobus employs behaviour segmentation as a corporation in order to deceive the targeted strategy of the organisation.A big target basis that would directly link the spectrum and the positioning of the company's supplied services with the restored service is critical for the organisation (Bossink, 2017). Ironically London continues to buy from many buses and quality continues to have a major role in customer service purchases. In specifically, all the elderly, especially those who are engaged in formal employment, would be the major demographic target for Automobus. Furthermore, the middle-class sector is primarily targeted, as the middle-class group prefers to buy bargains.

In particular, when passengers purchase transport services, they aim for excellence. The buying patterns of London customers altered dramatically following the outbreak of the epidemic. The government spending on commercial services decreased considerably due to the loss of jobs and a rise in unemployment. In general, the target client category is a cost knowledgeable consumer with a curiosity in sales and enterprises and a wide variety of automotive products and services qualities (Savan, Cohlmeyer and Ledsham, 2017). Customers in London were extremely aware of many types of new digital services.Transferring to online booking during the outbreak of the COVID-19 pandemic situation, in turn, indicates that the organisation needs to implement an online registration system within its organisational culture in order for further enhancement and improvement.

Identification of Consumer Profile and Behaviour

Digital technology proliferation provides clients with an unparalleled degree of product knowledge in London. Besides becoming more detailed, buyers attempt to learn about this and conduct their own 'research prior to coming into the purchasing area of the business. Cancellations were a regular element of the purchasing procedure and a typical transportation industry, which accounts for little above 6% of transport earnings (Pernot, 2020). As far as exchanges are concerned, discontent is not the only major motivator for other factors such as passenger regrets. Another reason for returns is the fact that consumers often do not assess the product before purchasing.Traffic and sales decline in stores so that merchants may simply choose to adapt to their retail industry consumers' changes in their networked surroundings and aspirations. The KPI monitoring verifies that the company can keep its consumers for a longer length of time and create recurring website traffic.

Gender

Both male and female

Age

All age group

Income

Moderate to high

Language

English and some local languages

Lifestyle and Interest

Forward-thinking, luxurious.

Desire

Innovative quality.

The Utilisation of Porter’s Generic Strategy

Porter stated that a business must develop and adopt a clear plan for conquering competition and long-term survival. The various strategies that could be implemented to gain profit in the new market are discussed below:

  1. Cost Leadership: If the business can produce its products at a low cost in the industry, a cost leadership approach will succeed. This approach is primarily employed in marketplaces with non-differential items. A successful cost management plan needs all facets of business performance to be optimized. A firm strives to achieve the lowest manufacturing cost at the lowest distribution cost in order to offer the cheapest cost in the market (Ali and Anwar, 2021). The firm seeks to encourage the largest number of buying companies and drive competitors out on the marketplace at the lowest price. Given the extremely dynamic transportation business in London, Automobus can apply this approach in order to decrease its price compared to its competitors(Hirschhorn,Veeneman and van de Velde, 2019). In order to decrease financing costs for assets, it could also adopt just-in-time inventory management for primary materials.
  2. Differentiation Strategy:The Company must offer items with distinctive features, which consumers feel have unique worth and are willing and able to pay extra for them, in a differentiation strategy. By differentiating its products with technical innovation, Automobus may include extra value.
  • Cost Focus:A cost-focusing approach focuses on a specific market or a specific niche. It forces the company to grasp the unique demands of these particular clients and the characteristics of that market (Islami, Mustafaand Latkovikj, 2020). While focusing on a certain demographic group, such as London's working population, Automobus may build a devoted client base.
  1. Differentiation Focus: The differentiation focus strategy, just like the cost focus strategy, is targeted at a small niche market. The firm discovers in this situation unique characteristics of its products that appeal to a certain segment of buyers. However, the company's revenues are contingent on the purchasing patterns of a tiny group of consumers (Ali and Anwar, 2021). If this group's tastes change, the company will have trouble pivoting to sell to the mass market. An effective differentiation approach relies on strong consumer loyalty to the brand and on establishing unique characteristics that are always ahead of the competition. Automobus can stay ahead of its competition in the new market by implementing innovative technical features.

Sales Process and Pricing Strategy

Value pricing will be utilised to make the emerging services industry acceptable. Total prices of the goods are calculated. The competitive price structure is examined until price-setting since in Great Britain the number of rivals is considerable. The price structure also takes account of consumer reaction, market need and product flexibility. Consequently, this will involve a low-cost strategy to competitiveness. Online advertising channels are used to advertise the Automobus brand.In order to reach the absolute greatest target range, social media initiatives should be promoted online (Guet al., 2018). To advertise, the business the company's website and the social networks, like Facebook, Twitter, etc. Other digital marketing techniques like Google, AdSense and SEO will be utilised to increase market sensitivity. Local retailers around London may be part of the supply chain network for the new Automobus brand(Hirschhorn,Veeneman and van de Velde, 2019). Automobus operates two primary retailers, online and offline. The local market in London is mostly the supply channel for the brand.

Demonstration of Financial Plan

Identification of the Sources of Funding

In order to pay total expenditures, the requirement for substantial development is a result is crucial. It will finance 50% of the stockholders' total cost, which amounts to around £35,000 (Hirschhorn,Veeneman and van de Velde, 2019). The 30% majority is leased to a bank of approximately £20,000 and the remainder is eventually purchased from creditors, amounting to approximately £ 15 000. In addition, shareholders would pay about £3,000 moreover one year of operations.

Cash Flow Forecast

Automobus focuses on quick development via company progress and inventiveness. At the initial period, revenue growth will obviously be minimal, which will affect total development. After 1 month of the turbo phase, the development percentage will remain to expand. A statement of cash flow includes the sum of revenue generated every year, and increases and drops the sum accessible in cash for the time. A cash flow statement shows how money originates from a company.

£

Beginning of Year

0

Ending of Year

£60,000

Operations

2021

Cash Earnings

Sales

£5,00,000

Other Operations

0

Cash Paid for

Inventory Purchasing

£2,00,000

Expenses for Administrative and General Operation

£28.000

Wage or Salary

£1,50,000

Interest

£4,000

Income Tax

£1,000

Net Cash Flow from Operations

£1,50,000

Investment Activities

0

Cash Earnings

0

Property and Equipment Sales

0

Loans Gathering

£250

Investment Sales

0

Cash Paid for

Equipment of Purchases

£50,000

Other Entities Loan

£15,000

Net Cash Flow from Investment Activities

£70,000

Financial Activities

0

Cash Earnings

0

Insurance

0

Borrowing

0

Cash Paid

Stock Repurchase

0

Repayment of Loan

£23,000

Dividends

0

Net Cash Flow Financing Activities

£23,000

Net Cash Flow

£60,000

Cash End of the Year

£60,000

(Source: As created by author)

Profit and Loss Statement

The aim of an Accounting period is ultimately to calculate a net income or loss. Excellent if Automobus makes a profit. The organisation can invest that money, can save and earn several other decisions. When one fails, it is a direct sign that the company is on an irreversible journey and that one has to find a method to make a difference.

Forecast of Organisational Profit and Loss

2021

Calculated Expenses

£4.40.000

Calculated Earning

£5,00,000

Calculated Profit

£60,000

(Source: As created by author)

Balance Sheet for One Year

Balance Sheet

2021

Current Assets

Cash

£500

Debtor

£5,000

Inventories

£1,500

Total Current Assets

£7,000

Fixed Assets

Computers

£10,000

Other Machines

£9,500

Furniture

£3,500

Total Fixed Assets

£22,000

Total Assets

£29,000

Liabilities and Equity

Current Liabilities

Creditors

£3,000

Short-Term Bank Loan

£5,000

Non-Current Liabilities

Long-Term Bank Loan

£15,000

Total Liabilities

£23,000

Equity

Self-Contribution

£10,000

Total Equity and Liability

£33,000

(Source: As created by author)

Explanation of Contingency Plan and Growth Aims and Break Even

A contingency plan is a strategy of action designed to assist an enterprise to respond effectively to any significant events or events that may or may not happen.

Risks

Policies, Process or Techniques to Reduce the Risk or Tackle it

Lack of Efficiently Workers

The absence of efficient personnel and workers generally hinders the daily servicing of this firm contributes to both a reduction in transportation service and organisational profitability. The HR manager may thereby use efficient hiring techniques to alleviate the risk of lack of competent workers, which in turn boost the profitability of the firm.

Lack of Organisational Resources

Because of the lack of effective resources, the organisational transportation service might lead to significant financial damage. Resources management is the method by which organisations manage their diverse resources effectively. It calls for the proper instruments to be allocated to the relevant activity. Management of resources covers the human resources, programmes, equipment and facilities plans and objectives.

Break-Even Analysis

The Total Cost for the Organisational Start-Up Business of Automobus is £400,000 associating all of its Organisational Assets.

The Organisation will do 12,000 Trips per Year.

The Cost for each Trip is £30.

The Variable Cost for each Trip is £20

This means the Overall Profit Margin from each Trip is (£30-£20) = £10

In order to Reach the Breakeven Point, the Organisation needs to Sell = (400,000/10) = 40000 units.

The Organisational Sales are 1,000 trips per month so for reaching the breakeven point, the organisation should time up to = (40000/1000) = 4 months.

Management Team and Company Structure

Explanation of Business Management Process

The organisational management structure of Automobus has divided into a structural segment. At the top of the organisation, the chief executive officer extremely controls the entire organisational operation. Underneath the chief executive officer, the general manager significantly performs their duty during the organisational business operation (Koh, Dolgui and Sarkis, 2020). In this way, the general manager significantly monitors and control the activities of the finance manager, branch manager, depot manager, customs broker office manager, chief accountant, development manager, trade manager, sales manager and operation manager(Faizah and Indrawati, 2017). Due to having this effective kind of organisational management structure, Automobus will be able to proficiently develop its organisational business in the market.

Discussion of the Roles of Team Members, Skills, Qualifications

Name

Alexander Wilson

Role title

“Operation Manager”

Key responsibilities

“Management of the entire organization”

Qualifications

“Masters of Business Administration”

Experience

“2 years of experience as a manager in London Sovereign Ltd.”

Name

Peter Anderson

Role title

“HR manager”

Key responsibilities

“Making the welfare of the company”

Qualifications

“MBA in Human Resource”

Experience

“6 years of experience as an HR assistant in Global Technologies”

Name

Steven Jonson

Role title

“Implementer”

Key responsibilities

“Offering business ideas”

Qualifications

“MBA”

Experience

“Business advisor at London General Transport Service Ltd. for 3 years”

Track record

Name

Role/Job title

Steve Jonson

The Managing Director's major duty is to manage and complete all requirements essential for the effective management of the firm.

Peter Anderson

The HR Manager's main duty is to strengthen human resources management so that the business has more competent workers and knowledge.

Role title

Key responsibilities

Advisor

The consultant encourages the company to establish a quick organisation in numerous techniques.

Sales Executive

Sales managers are mainly responsible for the number of company sales and strong customer connections.

Description of Training Needs and Interests

In a successful training programme, a systematic step-by-step procedure is developed. Autonomous training programmes, especially, single activities typically fail to meet members' corporate objectives and wishes. A requirement for efficient online training is especially important with today's more and more remote employees. Evaluation and analysis of requirements are the initial part of the improvement programme. Staff development requirements will already be met through the business, human resources or individual development goals of the firm (Faizah and Indrawati, 2017).Any inadequacies in current training and employee abilities are noted in the assessment of development needs of companies, tasks and individuals. The training objectives of the firm must be reviewed, prioritised and addressed.

The major aim is for the development of a training programme to narrow the division between present accomplishment and target performance. Training must be compatible with the fields of transformation at the worker generation, with a definition of 360 inspections and assessments. The next stage is to draw together a complete action plan with philosophies of learning education, knowledge, resources and other instructional components (Sharipov, 2020).Information on assets and methods of distribution must also be given. Throughout the application, of the program, the degree of preparedness and investigation of students must be taken into account.

This is where the course is revived throughout the distribution procedure. Analysis of the internal and outward conducting of the teaching is important. The delivery of the programme must take into consideration the motivations of employees as well as education programme design and other related activities KPI development objectives (McFarlane et al., 2019). The program is then started, published and formally delivered. Advances should be monitored to guarantee an effective program during training. The organisation should modernise the invoicing procedure and you should be able to utilise machinery and administer the hours to staff.

Conclusion

In conclusion, the Automobus Company must take care of the different organisational demands to provide for merchandising demands in London while launching a company enterprise. The company's primary goal would be to innovate in its product range in order for London's transportation business to be successful and lucrative. The firm will focus on quality and provide clients with excellent service in order to build a consumer base. The following section displays the organization's marketing plan and reveals the organization's financial plan, which in turn contributes to the business' profit.

References

Ali, B.J. and Anwar, G., 2021. Porter’s Generic Competitive Strategies and its influence on the Competitive Advantage. Ali, BJ, & Anwar, G.(2021). Porter’s Generic Competitive Strategies and its influence on the Competitive Advantage. International Journal of Advanced Engineering, Management and Science7(6), pp.42-51.

Basire, Y., 2017. Details on the implementation of the right of information on intellectual property rights. La Ley mercantil, (41), p.6.

Bossink, B.A., 2017. Demonstrating sustainable energy: A review based model of sustainable energy demonstration projects. Renewable and Sustainable Energy Reviews77, pp.1349-1362.

Faizah, D.N. and Indrawati, A., 2017. Effect of Learning Achievement of the Eye of Productive Training, Prakerin Experience, and Interests in Student Readiness Entering the World of Work. JPBM (JurnalPendidikanBisnisdanManajemen)3(3), pp.179-191.

Fellenstein, J. and Umaganthan, A., 2019. Digital Transformation: How enterprises build dynamic capabilities for business model innovation: A multiple-case study within the logistics and transportation industry.

Ghosh, A., 2020. Possibilities and challenges for the inclusion of the Electric Vehicle (EV) to reduce the carbon footprint in the transport sector: A review. Energies13(10), p.2602.

Gu, X., Ieromonachou, P., Zhou, L. and Tseng, M.L., 2018. Developing pricing strategy to optimise total profits in an electric vehicle battery closed loop supply chain. Journal of cleaner production203, pp.376-385.

Hirschhorn, F., Veeneman, W. and van de Velde, D., 2019. Organisation and performance of public transport: A systematic cross-case comparison of metropolitan areas in Europe, Australia, and Canada. Transportation Research Part A: Policy and Practice124, pp.419-432.

Hsiao, W.H. and Chang, T.S., 2019. Exploring the opportunity of digital voice assistants in the logistics and transportation industry. Journal of Enterprise Information Management.

Islami, X., Mustafa, N. and Latkovikj, M.T., 2020. Linking Porter’s generic strategies to firm performance. Future Business Journal6(1), pp.1-15.

Koh, L., Dolgui, A. and Sarkis, J., 2020. Blockchain in transport and logistics–paradigms and transitions.

Mazzucato, M., 2018. Mission-oriented innovation policies: challenges and opportunities. Industrial and Corporate Change27(5), pp.803-815.

McFarlane, T.D., Dixon, B.E., Grannis, S.J. and Gibson, P.J., 2019. Research Full Report: Public Health Informatics in Local and State Health Agencies: An Update From the Public Health Workforce Interests and Needs Survey. Journal of Public Health Management and Practice25(2 Suppl), p.S67.

Pernot, D., 2020. Internet shopping for Everyday Consumer Goods: An examination of the purchasing and travel practices of click and pickup outlet customers. Research in Transportation Economics, p.100817.

Ramsey, D. and Asmar, M.E., 2020.Cost and schedule performance analysis of transportation public–private partnership projects. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction12(1), p.04519032.

Reardon, L. and Marsden, G., 2020. Exploring the role of the state in the depoliticisation of UK transport policy. Policy & Politics48(2), pp.223-240.

Savan, B., Cohlmeyer, E. and Ledsham, T., 2017.Integrated strategies to accelerate the adoption of cycling for transportation. Transportation research part F: traffic psychology and behaviour46, pp.236-249.

Sharipov, F., 2020. Internationalization of higher education: definition and description. Mental Enlightenment Scientific-Methodological Journal2020(1), pp.127-138.

Statista. 2021. UK coach and bus transport market size 2017-2020. [online] Available at: https://www.statista.com/statistics/1181823/coach-bus-transport-market-size-uk/. [Accessed on: 30/6/2021]

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