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CI6410 Apply Appropriate Tools And Techniques To Identify Opportunities

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CI6410 Apply Appropriate Tools And Techniques To Identify Opportunities

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Course Code: CI6410
University: Kingston University

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Country: United Kingdom

Question:

The Executive Summary: Does it contain a short & accurate summing up of the problem, the solution, the investment needs, the Return on Investment (ROI) and the Unique Selling Proposition (USP) of your proposed company. It indicates how many shares or % of the company the proposed investment will buy.

A

A concise summary covering all the relevant points; problem, solution, investment needs (and number of shares involved), the RoI and the USP of your organization.

B

A good summary exhibiting most of the relevant points

C

The summary contains some of the relevant points

D

A poor summary which may have missed some of the major points

MF

A poor summary dodging or otherwise missing the relevant information

F

Not addressed

The process of new venture formation.

A

A good understanding of various business vehicles, business vehicles are compared and the correct one selected; the roles of Companies House, of shares and other means of financing companies is well presented. 

B

A good understanding of the role of Companies House and shares or other means of financing companies

C

A good understanding but some issues are not adequately addressed

D

A basic understanding of how to set up a Limited Company in the UK

MF

A limited understanding of the issues involved in creating new ventures.

F

Not addressed

Background & branch: Understanding of the industry structure, Is there an argument for a solid foundation for the solution? Value proposition: Do the individuals in the team master the techniques involved (or argue how they can gain this)

A

Well argued with the author as entrepreneur at the centre, a competencies matrix of the immediate team supported by a good, well-chosen and relevant Board of Directors.

B

Well argued but the Board of Directors is weak, a competencies matrix may be present.

C

Poorly argued with a weak Board of Directors, a competencies matrix may be present.

D

Poorly argued, perhaps introducing mythical entrepreneurs, misconceptions about the Board of Directors or lacking a competencies matrix for the team.

MF

Poorly argued and missing a Board of Directors, or citing public figures.

F

Not addressed.

Resources: Can the projected company realize its goals and how. Argumentation for the resources and business system/model

A

A clear explanation of the business model with good argumentation for both the business issues involved and the resources needed.

B

Good argumentation for the resources but weak for the business model

C

Adequate argumentation for either the resources or the business model

D

Poor or missing arguments for resources or poor or missing business model

MF

incoherent argumentation

F

Not addressed

Market research: What are the overall perspectives? Has the area been well researched and found interesting. The market description; Market size & Market share.

A

Good use of a range of techniques including competitor analysis by SGM or similar techniques

B

Good use of a range of techniques excluding SGM but may include e.g. Porters and SWOT

C

Use of some of the techniques covered in the module

D

Out of context use of techniques from other modules

MF

Poor use of techniques.

F

Not addressed

Believable marketing: Is the solution (how the customers will be reached) workable in the time frame. Is there a realistic description of implementation, roll-out and initial sales?

A

A detailed customer analysis and justification for reaching primary and secondary segments

B

A good customer analysis but weak implementation of the marketing strategy

C

An acceptable description but missing some important issues

D

A poor customer analysis and weak implementation of marketing strategy

MF

The major factors poorly addressed or missing

F

Not addressed

Planning and Costing: the chronological assignment of tasks and coupling of operations to budget in a believable and quantifiable manner.

A

A good and comprehensive use of Task Matrices enabling a detailed costing to be performed

B

Task Matrices are present but not comprehensive or too coarse-grained

C

Limited use of Matrices.

D

Some argumentation but lacking Task Matrices

MF

Task and other tools enabling costing are missing

F

Not addressed

Budget and sales forecast; investment needed and returns and a description of the overall financial potential

A

Excellent use of new or original spreadsheet software for the budget, a bar chart showing investment needs and offsetting sales per quarter (or similar) is used to prepare a “hockey stick” curve, possibly with best/worse case projections. 

B

Good use of budget software, a “hockey stick” curve is present to illustrate investment needs.

C

Use of the spreadsheets given by the lecturer and a “hockey stick” curve is presented.

D

Use of the budget spreadsheets given by the lecturer only.

MF

Poor description, spreadsheets may be missing

F

Not addressed

Academic: General understanding of the course material and in particular has the person understood Innovation, Creative Destruction & Value Chains.

A

Your work shows that you have been willing to innovate and/or to experiment with some new concepts and to take some well-judged risks.

B

Your work shows some evidence of a willingness to innovate and/or to experiment and explore new ideas.

C

Your work mostly sticks to familiar ideas but you have shown some willingness to experiment.

D

Your work tends to be descriptive, and your analysis is oversimplified. There is some evidence in your work that you have applied the methods and tools covered in the module to resolve straightforward issues.

MF

Your work shows only a limited knowledge and understanding of the material covered in this module.  It shows little attempt to analyse ideas or arguments.

F

Your work suggests that you have not understood the methods and tools covered in the module well enough to apply them to ideas or problems.

Literature, citation, grammar and general presentation.

A

Your work shows that you have followed good academic practice in terms of citation and referencing, presentation format and clear, accurate English.

B

Your work shows good academic practice in terms citation and referencing, presentation format and clear, accurate English.

C

Most of your work follows good academic practice in terms of citation and referencing, presentation format and clear, accurate English.

D

Your work shows some evidence of good academic practice in terms of citation and referencing, presentation format and clear, accurate English, but this is not always consistent throughout.

MF

Your work has not followed good academic practice in terms of citation and referencing, presentation format and clear, accurate English.

F

Your work is very poor in terms of academic practice, citation and referencing. The presentation format and standard of English is poor.

 

Answer:

The main purpose of this assessment is to develop a business plan for starting a new retail business which will be providing a variety of products and will operate as a supermarket. The name of the supermarket will be Sophisticated Market. The assessment will also be containing a marketing plan which will focus on how to promote the products which are offered by the business and also will be showing the financial plan of the business for starting the business (Scarborough 2016). The financial plan and the marketing plan as per the decision of the management will be shown in the next few paragraphs.
Discussion Process of the New Venture
The business plan which is to be developed is a retail business which will be providing a variety of products to the customers and the will be a supermarket form of business (Burns and Dewhurst 2016). The name of the supermarket as per the decision of the management will be Sophisticated Supermarket. The management of the business has decided to register the business as a company so that funds can be procured easily from the issue of shares in present case scenario and also will be helpful when the business further wants to expand in the market.
The reason due to which the founders of the business wants to set up a company form of business and not a partnership or sole proprietorship is because a company form of business enjoys legal existence and can easily draw required funds from the market with issue of shares or even take loans (Schaper et al. 2014). As per the plan of the management, the business will be opening a single shop and focus all the resources in that particular shop to effectively attract customers and also build up a brand name for the shop. The management of the business has decided to offer goods which are mostly used by households in day to day life such as utensils, tools, beverages, FMG products, grocery foods and vegetables. detergents and similar other products (Ross and Byrd 2015).
As per the plan which is developed by the management, the initial fund requirements and start-up costs will be meet with the issue of shares, loan from banks and contribution from the founders of the company. The management expects that the business will be able to procure loans and equity capital which will cover all the initial costs of the business.
Background and Industry Structure
The main reason for opening a supermarket is the recent success of such markets and popularity of the same among the consumers. Such markets provide a one destination stop for a variety of products and thus have the preference of the consumers. The only problem associated with such a business is threat of competition in the industry which is immense (Schneider and Spieth 2013). However, if a business can survive the extreme competition in the industry and establish itself constant revenue can be earned by the business. The industry is competitive in nature but the same is also at the same time growing as well.
The management of the supermarket will be comprised by the top-level management who will be responsible for the overall management of the business and the founders of Sophisticated market will be on the board of directors and the directors will responsible for all important decisions, policy framing of the business. After the directors comes the managers of the shop who will be handling marketing, sales and administration of the shop and business and also be responsible for implementing the decisions taken by the directors of the business (Burns 2016). Then comes the supervisors who will be looking after the services of the employees and also help the customers with advices.
The lower level of management comprises of cash counter clerks and sales personnel. The major role in sales maximization will be played by the supervisors and the sales personnel. The sales personnel of the business need to be trained as to how to treat the customers, educate them, advice the customers. The management of the Sophisticated market has decided to introduce a training schedule for the employee in order to develop a marketing sense and sales maximization capability among the employees of the business.
The value proposition of the business is to develop a business which will be able to meet the day to day requirements of the households in terms of grocery and other requirements of household sectors (Cao 2014). As per the plan of the management, the business model of the shop will be to offer a variety of quality foods at a cheap price. In order to improve the competitiveness of the business, the shop will be offering discounts, exclusive offers, combo offers to the customers.
In addition to this, the management of the company has also planned to incorporate a weekly sales day every week on which day, all products will be very cheap so that the business can get adequate demand and increase the overall sales revenue of the shop (Coombes and Nicholson 2013).  The management of the shop has also plans for customer gift options and special discounts on special occasions such as a festival. The management is of the opinion that the above policies might give the shop some competitive edge and help the business to survive the initial stages of the business.
Competency Matrix

Name of the Director

Project Management

Leadership

Financial Skills and Knowledge

Problem Solving Ability

Software Development and Innovative approach

Forecasting Ability

1.      James August

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ü   

 

ü   

 

 

2.      Will Jones

ü   

ü   

ü   

 

 

 

3.      Alex Heard

ü   

 

 

ü   

 

ü   

4.      Mitch Sheldon

 

ü   

 

ü   

ü   

ü   

5.      Bobby Baxter

ü   

ü   

ü   

ü   

 

ü   

6.      Evan Hopkins

 

ü   

 

ü   

ü   

ü   

The names of the directors represent individual which can be selected for the post of director in the business which is to be established. The tick mark represents skills which can be either basic or critical in different areas of competencies. The competency matrix above reveals the important skills which are present in different individuals and how the same can contribute to the decision-making process of the board of directors of the business.
Objectives and Goals of the Business
The management of Sophisticated market plans to only provide products which are used by household consumers in day to day activities and therefore the target customer for the initial stages of the business will be the housewives and other retail business which require day to day household products. The business model of Sophisticated market is to provide the best quality services at the cheapest price so that the business is able to build itself a niche in the intense competitive environment of retail industry. The management will be offering foods and vegetables which will be fresh as the business is considering a tie up with the local farmers of the area and the contract with such farmers will enable the business to have cheap food products with any middlemen involved which will be reducing the costs of the products of the business.
The business model of the business as per the management is a sound one as the lower price charged will be able attract more customers to the business and slowly help the business to develop customer loyalty and brand image. The objectives of the business as per the management will be to create a niche in the market and survive the initial years while at the same time developing and attaining growth (Tang et al. 2014). Another objective of the business will be to diversify the products which are offered by the shop and move into products such as appliances and clothes and branded products in order to get a status of a proper super market. The goals of the business as set by the management are listed below in point form:

To a build a brand name and image for the company in the market so as to attract as many customers as possible.
To further growth in terms of market and products which are offered by the business so as to increase the overall sales revenue of the business and diversify the risks of the company.
To improve the products and policies of the business and expand the businesses and capture new markets.

Market Research
The management of the company in order to establish a retail business, first needs to analyze the retail market which exists in the area. The management of the company also recognizes that it has to also know about the potentials competitors of the business which can affect the overall business of supermarket. In order to identify the competitors of the business, the business needs to apply competitive analysis and also apply strategic management tools so as to derive a competitive edge over the competitors (Piotrowicz and Cuthbertson 2014).
As per the plan of the management, the company will be adopting benching marking techniques so as to analyze the techniques and policies which are used by the competitors. With the help of this, the management of Sophisticated Supermarkets can develop a strategy to develop competitive edge to face the competitions of the business. In addition to this, the market research which will be undertaken by the management will be very useful to collect information about the taste and preference patterns of the consumers and also enable the management to take decisions about the targeted group of customers of the business and also which products should be more focused on by the sales personnel (Kim and Min 2015).
The location of the business as decided by the management will be near a locality of community of people so that the people living are able to access the products which are offered by the supermarket on a daily basis (Fernie and Sparks 2014). Moreover, the supermarket can create a monopolistic type of environment as most of the major supermarkets are situation in big cities and key areas. The management has decided to open the shop in an area where there is no supermarket close by or it is difficult to access supermarkets as the same are at far distance. As per the business environment scenario of a retail business is quite favorable as major supermarkets are able to earn significant amount of profits. The only concern for the management is the intense competition which exist in the retail market not just by the supermarkets but also by the small retail businesses.
Porter’s Five Forces Model
In order to research and analyze the market, the management will be applying Porter’s Five Force model for analyzing the conditions and the opportunities which the company will be having in a retail industry. The different segments which are covered in Porter’s Five Force Model are explained below:

Competition in the Industry: As per the market analysis, it is clear that the overall competition which exist in the industry is intense. The established players in the industry occupy maximum market shares (E. Dobbs 2014). Therefore, any policy which the management needs to develop policies considering the level of competition in the market.
Potential of new Entrants in Market: The retail business is a popular and diversified business and therefore many of the new businesses are fascinated with the industry. However, due to intense competition which exist in the market, the entry to the new market.
Bargaining Power of Suppliers: The policies and decisions of the management is also affected by the bargaining power of the suppliers. The management needs to consider from where the business will be receiving the products (Marshall 2013). As per the plan of the management, fruits and vegetables will be procured from local farmers. The management will also buy products from other retailers. The bargaining power of such suppliers affect the decisions and policies of the management. In such a industry the bargaining power of the supplier is high.
Bargaining power of the Consumers: The bargaining power of the consumers refers to the ability of the consumers to affect the prices of the products which are offered by the business. The prices of the products as per the plan of the management will be as cheap as possible so that the bargaining power of the consumers can be reduced. The bargaining power of the consumers in such retail industry is normally high.
Threats of Substitutes: In a retail business, the risk of substitute are always high as similar or identical products are also offered by other supermarkets and small retailers. The products are not differentiated and therefore the risks from substitutes are high in such a market.

SWOT Analysis
 The business can apply SWOT Analysis for identifying the potential strengths, weaknesses, opportunities and threats which can affect the supermarket. SWOT Analysis applied by the management helps the business to identify what will be the strengths, weaknesses, opportunities and threats (Suh 2014). This is also considered to be a part of marketing research and this will help the business not only with understanding the business characteristics of its competitors but also understands the strengths and opportunities of one’s own business.

Strengths: The potential strength of the business can be the products which are offered at cheap prices by the business and the initial specialization of the business in household products which will make the supermarket a one stop destination for such goods in the locality in which the shop is established (Bull et al. 2016). The business will also be specializing in one resources which is household products and therefore can make the same strength of the business.
Weakness: The weakness of the supermarket will be the inexperience and no customer awareness for the brand which will be developing overtime. The supermarket will not have any customer base and therefore, in initial stages the business will be facing problems relating to sales maximization
Opportunity: There is an opportunity of establish a business in a locality which suits the business and is able to attract maximum customers. The industry of retail business has been in a growth phase and therefore, there is ample opportunity for development and growth.
Threat: As per the expectation of the management, the threat which looms over the business is that of the competitors who are more than capable of driving a business into non-existence (Ji, Sun and Liu 2014).

Marketing Strategy
The marketing strategy of the business as developed by the management will be focusing on sales maximization in order to ensure that regular revenue flows into the business. The management thus plans to follow an aggressive sales strategy which will also imply that the management needs to invest significantly on the marketing and promotional activities for the business and its products (Varley 2014). The management has planned to arrange for a weekly sales offer on which date all the products which are offered by the supermarket will be excessively cheaper. This will be done on weekly basis so that the stock of goods which are with the supermarket gets cleared out easily and the business is also able to increase the sales of the business. This will also build a good image of the supermarket in the eyes of the public and they will prefer the supermarket for its products (González and Waley 2013).
The management also plans to promote the products of the business with the help of advertisements which will be done on both paper media and television media. The management is also opening an online website for promoting the business after a few months when the overall demand of the business has increased. The management also plans for an online order services which will be implemented with the expansion strategy in future if the business turns out to be successful. In order to further promote the sales of the business, the management has planned to provide delivery services to customers who live in close proximity of the shop so that the overall reach of the business for its customers can further increase.
Believable Marketing Plan
The marketing plan of the supermarket will be including an online sales plan which will be included after 6 months period for the business. The business will be including a provision for delivery services for household products which are offered by the business. These products will mostly include vegetables, fruits and any specific household’s goods as well as per the requirement of the business. The management anticipates that the setting up online sales business will be taking time approximately 3 to 4 months at a minimum. The delivery services can be established within weeks of setting up the business and therefore the business needs to purchase delivery trucks and recruit potential divers for the delivery service of the products of the business.
The business will be implementing the recruiting process for appointing potential delivery services person for the business. The management estimates that the business will be fully operational in a month period and the delivery services will be starting in a week’s time from the start of the business.
Financial Plan
Estimated Set-up Cost Budgets
The expenses of the business which is required to set up the supermarket is shown in the table above. The figures which are taken is on an assumption basis judging the current market scenario. The first major expenses which the management need to incur is the expenses related to the shop which can either be purchased, rented or taken on lease (Hilton and Platt 2013). In the table above, the management estimates that it will be taking a potential shop location for rent of £ 30.000 which is the rent for the year along with expenses which is related to renovations and maintenance. In addition to this, the management also anticipated that basic equipment such as computers, tools and other equipment will also be required in the day to day business operations.
The management will also be requiring office equipment as well so that the business runs smoothly.  The cost for such assets and equipment are also considered to be a part of the start up costs of the business. The above table clearly indicates that the major expenses of the business is undertaken in the setting up the sales and administration and marketing departments of the supermarket. The total cost which is anticipated by the management of supermarket is shown to be £ 3,50,000. The expenses which are anticipated in the above table is for the first year for starting the business of the supermarket. In addition to this, the inventory which reflect the variety or stock of products which are held by the business for the purpose of sale.
Sales Forecast and Estimated Returns
The above table shows the sales forecast of the business for the year along with the forecast of expected return for the business which is anticipated by the company (Ward 2013). The initial costs of the business are meet by the management with the help of a loan taken from bank and also from issue of equity shares and balance amount is contributed by the Founders of the business. The sales are shown in the above taken table taking four months period at a time and the sales is respectively shown for three periods which are £ 3,25,000, £ 4,50,000, £ 5,25,000 respectively

Source: (Created by Author)

 The total variable expenses which is estimated by the business is shown to be £ 10,48,750. The pre-taxed profit of the business which is shown is estimated to be around £ 5,65,750. The profit is appropriate and the management anticipates that the same can be reached due to the aggressive marketing strategy of the business. 
Source: (Created by Author)
Thus the plan of the management seems to be feasible and therefore, the management should implement the plan as soon as possible to get the business up and running.
Reference
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem Services, 17, pp.99-111.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Cao, L., 2014. Business model transformation in moving to a cross-channel retail strategy: A case study. International Journal of Electronic Commerce, 18(4), pp.69-96.
Coombes, P.H. and Nicholson, J.D., 2013. Business models and their relationship with marketing: A systematic literature review. Industrial Marketing Management, 42(5), pp.656-664.

Dobbs, M., 2014. Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.

Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan page publishers.
González, S. and Waley, P., 2013. Traditional retail markets: the new gentrification frontier?. Antipode, 45(4), pp.965-983.
Hilton, R.W. and Platt, D.E., 2013. Managerial accounting: creating value in a dynamic business environment. McGraw-Hill Education.
Ji, S.W., Sun, X.Y. and Liu, D., 2014. Research on core competitiveness of Chinese retail industry based on O2O. In Advanced Materials Research (Vol. 834, pp. 2017-2020). Trans Tech Publications.
Kim, S.K. and Min, S., 2015. Business model innovation performance: When does adding a new business model benefit an incumbent?. Strategic Entrepreneurship Journal, 9(1), pp.34-57.
Marshall, S.J., 2013. Evaluating the strategic and leadership challenges of MOOCs. MERLOT Journal of Online Learning and Teaching, 9(2), pp.216-227.
Piotrowicz, W. and Cuthbertson, R., 2014. Introduction to the special issue information technology in retail: Toward omnichannel retailing. International Journal of Electronic Commerce, 18(4), pp.5-16.
Ross, L.W. and Byrd, K., 2015. Business Plan Competitions: Start-Up’Idols’ and Their Twenty-First Century Launch Pads.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management. Pearson.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small business.
Schneider, S. and Spieth, P., 2013. Business model innovation: Towards an integrated future research agenda. International Journal of Innovation Management, 17(01), p.1340001.
Suh, J., 2014. Theory and reality of integrated rice–duck farming in Asian developing countries: A systematic review and SWOT analysis. Agricultural Systems, 125, pp.74-81.
Tang, C., Liu, Y., Oh, H. and Weitz, B., 2014. Socialization tactics of new retail employees: A pathway to organizational commitment. Journal of Retailing, 90(1), pp.62-73.
Varley, R., 2014. Retail product management: buying and merchandising. Routledge.
Ward, K., 2013. Financial aspects of marketing. Routledge.

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Introduction 
A contract is an agreement between the parties which is enforceable legally in the courts. There are several provisions of law which governs how the terms related to the contract would operate. A contract consists of a set of provisions which are known as contractual terms. The weightage of such terms are not equal as one term may have a more significant consequence as compared to the other in relation to their brea…
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United Kingdom London Economics Management University of London 

TLAW202 Corporations Law
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Course Code: TLAW202
University: Top Education Institute

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Country: Australia

Answers:
1.
If any person wants to carry out his business in the form of a company, then, it is necessary that the registration or incorporation requirements of such country must be met. In Australia, the Corporation Act 2001 and the guidelines laid down by ASIC provides with the steps that must be accomplish in order to establish a corporate entity.  (Malbon & Bishop, 2006).
A company is of great significance as it is treated as a …
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