Business Development Proposal

WEB PUBLICATIONS LIMITED (an internet publishing house)

Submitted in fulfilment of the requirements of the Masters’ degree to the University of XXX, for the degree of Master in Business Administration (MBA)

March 2012 WEB PUBLICATIONS LIMITED

Contents

Page Executive Summary

Chapter 1: Introduction 1

Chapter 2: Business Concept 3

Chapter 3: Feasibility 6 3.1 Primary and secondary Market Research 3.2 Feasibility

. Product/service

. Industry/market

. Organisational

. Financial feasibility 3.3 Resource Requirement Evaluation

Chapter 4: Strategic Analysis and Business Model 22

4.1 Strategic Analysis of the business idea 4.2 SWOT analysis and Value Chain 4.2 Sources of competitive advantage and sustainability 4.3 Selection of strategies for success 4.4 Development of appropriate Business Model

Chapter 5: Business Plan 34 5.1 Business Plan outline 5.2 Proposed plan of action 5.3 Critical Success / Failure Factor

Appendices References Bibliography

ACKNOWLEDGEMENTS

I would like to take the opportunity to say thanks to my respected supervisor

XXX class teacher XXX, for their widespread supervision to write my business development project.

I would like say thanks to our entire college librarian who helped me to get all the magazine, journals and text book which assist me to prepare my project.

I would like to give special thanks to my parents who helped with the finance for my studies in the UK. Executive Summary:

The following paper is a business development proposal for establishment of a start-up consultancy company specialising in sustainability consulting, certificate auditing and monitoring in small and medium enterprises (SMEs) in Serbia. The company will offer expert advice in implementation of ISO 14,000 (set of voluntary standards for environmental management) norm and Eco-Management Audit Scheme (EMAS); ISO 50,000 norm for energy management (EnMS) as well as advice in management of Waste; and Stakeholders and Reporting.

The business development proposal contains several chapters. In the first chapter will be described the business idea, while the second chapter will evaluate if the idea is feasible through market research and different external and internal analysis of the market. The financial requirements are estimated at € 45,000 and are planned to be acquired in the form share capital (€30,000) and bank loan (€15,000). The sales, profit and loss forecasts and the cash flow analysis predict positive returns in the fifth year of the company´s operations, while the breakeven analysis sets the breakeven number of customers at 11 and the breakeven value of services at €57,377.20.

The NPV calculation had positive results for the rate of return required by investors (20%) and IRR was calculated at 26.60% thus meeting the requirements of investors. The company-internal factors were assessed using a Value Chain model and a SWOT analysis, while the market was investigated through a PEST analysis and the Five Forces Model. The resource requirements are relatively low since the business is a service provider, with the most resources needed in the financial and training categories, with the latter covering the certificates needed for auditing of the customers.

In the course of our feasibility analysis, the critical success and failure factors for the business will be defined, which are both company’s internal and external, and include the successful acquisition of financial assets, the acquisition of certificates needed and successful contact with our most important national and international partners and, at the end of the start-up phase, customers.

The implementation plan for the start-up phase was designed by first identifying the key events and stages for this phase and then setting out a timeline for the introduction and completion of those stages by determining which events are dependent upon others. This timeline was modelled by using both a Gantt chart and a critical path model. Both models resulted in a minimal start-up phase of 12 weeks, with the critical path including administrative setting up of the business, establishing contact with national and international partners and the first business contact with customers. The start-up phase is represented in the financial analysis as year 0.

The chosen strategy is a hybrid diversification-cost leadership strategy with a slow, progressive growth and a strong connection of the company´s policies and internal culture to sustainability issues. This strategy reflects the choice of a business field and a strong diversification drive from other competitors in the field of business consultancy, while also considering the main characteristics, especially the often limited resources, of our base customers.Exertion of accomplishing business development proposal on online publish shop is to expose the business prospect of publish trade in UK market including domestic and home market. Publishing industry is having a major part of UK economy contribution. It is the second highest value added sector in United Kingdom finance sector and fifth largest publish fabricator in the world. This is a sector contributes in education to government institutions. Chapter 1: Introduction

1.1 Rationale for the business concept:

The publishing industry is experiencing quicker growth of unparalleled environment over the year. Due to development of technology and effective work process publish industry is growing rapidly and contributes a huge amount of funds in UK economy. Nonetheless, United Kingdom is a place of full opportunity for every business sector, each every day a number of businesses launched with different idea. From set up period to end of business operation a organisation require publishing product.

Based on my work experience in publishing sector and current market situation i have planned to start a internet based publish business. It will be able to serve the customer with low cost pricing and customize services. On the other hand background of my education is business studies and my family have business tendency, which also drive me to run a business.

1.2 Selection of a Scenario:

Four scenarios for development of the BDP are available - a new company startup as an entrepreneur - your own company as an existing company owner -your current employing organization -a commercial or not-for-profit organization

From the given scenarios “A New Company Start-Up as an Entrepreneur” has been chosen for development of this project. It will help me to utilize my knowledge and assist me to understand the market situation of desire business.

1.3 Aim and Purpose:

The aim of the project is to test the feasibility of this business idea developed in the proposal. Business development plan is a framework of business development idea. It helps to gain reliability and identify business and finance risk. This is also

6 a tool which helps to make decision and evaluation of a business idea. To conduct this study owner or employee able to match with organisation goals, and informed about strategy and implementation. This report also helps to identify the viability of this business plan, required funds, target audience / market and competitor and able to design the action plan accordingly. Specially, a business proposal helps to generate required funds from the potential investor because investor can see the entire project and probability of success.

Other objectives of this report are- - to understand carefully customer volumes and preferences - to study profitable restaurant operation through research - to study economic and environmental factors which affect profitability

1.4 Structure of the report:

The rest of this report is organised as follows: Chapter 2 depicts the business concept and opportunity including company mission, vision, and proposed product / service; Chapter 3 reviews the feasibility of proposed business concept; Chapter 4 explain the strategy analysis of business idea and explain the development business model; Chapter 5 gives a picture of overall business plan considering marketing plan, organisational plan, operation plan and financial plan.

7 Chapter 2: Business Concept

In UK business place want to introduce a online publishing company name Webpub.co.uk. This company will take a part in publishing industry in whole Europe. It will offer online publish solutions and creative design with low cost to individual and non-profit business organisations.

2.1 Business Opportunity

The Federal trade commission mentioned, “Business opportunity is a pack of trade venture that let the buyer to begin a business”. Today’s business world everyday 118 start-up firms launch in UK market including individual, corporate and incorporate (Irish Examiner Tuesday, May 01, 2012). To run those businesses, owners need to follow all marketing activities to create product or service awareness in customer mind. Nevertheless, introduce a new business in business world require a company business card and to make a sense of professionalism in business have to keep company letter head, which are related to publishing sector. In current competitive market to run a profitable trade have to choose an effective and low cost marketing movement. Publish media is one of them. Using publish media (eg, Flyer, poster, leaflet and brochure) a business can reach to a huge number of potential target customers with low cost.

However, to use publish media people have to find time to make those publishing stuff from a publishing shop. Also they need to design the artwork and visit a publishing shop to explain all to do publish. But now a day all business organisations are trying to reduce cost, saving time and keep more concentrate on customer service with good product. In that situation online shop can help them to maintain all successful steps to make business profitable.

Webpub.co.uk offering all types publishing product with customize design template. As a result an individual can do design according to the product and advertising criteria and can place a order easily on website. Though this business concept is not new in the market, other online publishing shop is not focusing on individual customer with tailor product idea, where a vast opportunity to grow and expansion in this sector. Existing online publish shops are serving high street

8 publishing shop or reseller publishing traders to do publish. They only focus on publish not the design. To do the design general customer need to go to a designing company and pay a amount of money then choose a publisher or press to publish. By bearing in mind all of this scope and demand Webpub.co.uk introduce the service package of design and publish together in local market to whole Europe.

On the other hand, publishing industry offers a massive opportunity for existing and potential investors. For instance, on account of economic recession in 2009- 10 all business organisations had influenced but in publishing industry was not seriously exaggerated, according to industry profile – Global commercial publishing, May 2011, publishing industry revenue turned down with a compound annual rate of 0.9%. In the recession time, all other sectors of business was going down and down they tried to increase sells using promotional activity including leaflet distribution, flyer distribution, sale offer showing posters and delivering booklet to the customer.

2.2 Mission: webpub.co.uk mission is to provide customize and blue cheap quality product with low cost.

2.2 Vision: Utilizing the supremacy of internet and organisation resources become market leader of publish business sector in the UK.

2.3 Product and Services description:

Webpub.co.uk will be an internet based publish shop and business to business (B2B) publish service provider. It will offer customer a one stop service to complete the publish demand. Customer will be capable of making design by our computerized file creating software and able to place order with the accepting of company terms and conditions. With publish production company will offer design including Logo, Menu and promotional items.

. Restaurant relates – Food Menu, Window / Table menu

. Advertising Materials – Pamphlet, Poster, Loyalty card, Flyer etc.

9 . Invoice, Notepad.

. Wish / Greeting Cards – Christmas Card, Invitation Card and Birthday celebration card.

. Calendar.

. Office Stationary Stuffs – Business Card, Letter head and Compliment Slip.

Positioning

Although a few online publishers serve individual customers, they charge them a huge amount of money. Because they know that to serve an- individual customer have to spend lot of time to come up with a fruitful work. To fill up this gap and grab this business opportunity webpub.co.uk will introduce the company in publishing industry with user friendly website and cheap price.

Scale of growth anticipated(example)

The initial investment for this enterprise is to establish one resthouse in Manchester. Once the first has established itself in the industry and becomes profitable the ownership will seek to expand and build more resthousesin the surrounding London boroughs. The following table 2.1 represents the expected scale and growth within a 5 year period from the resthouses’ inception.

Table 2.1 Scale & Growth Anticipation

Year Date Scale Growth 1 January 2013 1 Restaurant 10% 2 January 2014 1 Restaurant 15% 3 January 2015 2 Restaurants 20% 4 January 2016 2 Restaurants 35% 5 January 2017 3 Restaurants 40%

10 Chapter 3: Feasibility study

To operate a new publishing business in UK market it may be face lot of queries from shareholder perspective:

 Unique Selling Proposition of the company.

 Any market in the gap

 Is it profitable and potential in terms of invested in a publishing business?

 Is the market trend growing?

 At last what amount of capital requires starting a publishing business in UK?

In order to find satisfying answer of all question have to conduct a feasibility study with market research including secondary and primary research.

3.1 Market Research:

According to The UK Market Research Society website (MRS 2004) “Market survey is one of the significant tools in business.. It is helping an organisation to identify that what their customers and prospective customers need, desire and care about.” Market research helps a business to reduce risk in market and properly informed about the customer demand and how they will be satisfy. Bradley (2007, p. 4) stated that “Market research take a look at specific marketplaces; it portray consumers in those marketplaces and what amount of product they may use.”

It is necessary to conduct secondary research firstly to establish whether there is a gap in the market and then to conduct a primary research as to whether there is a market in the gap.

11 3.1.1 Secondary Research (example):

The secondary research has also been done by Mr. Robinson. The secondary research data was also very important as primary research data. The secondary research data has been taken C.I.T.E.S. database and its published data. C.I.T.E.S. is a regulation body worldwide by The Convention on International Trade in Endangered Species of Wild Fauna and Flora (C.I.T.E.S.). C.I.T.E.S. has a responsibility and it is an authorised international organisation which is accounted for closely monitoring of stocks of lobster and crab coming from Green Sea sources – the body of fish source, some years ago, responsible for some 90% of the world’s lobster and crab producing oyster fish – in an effort to protect endangered species, especially oyster fish. There is also secondary research data or information is taken from database and published data by DEFRA – Department for Environment Food and Rural Affairs. These both sources and their archives have provided a prolific information for the purpose of secondary research.

The Green area is the world’s main producer of lobster (83% in 2003) and supplies the three largest markets, the European Union, Japan and the USA. The construction of several hydroelectric power plants and dams along the Volga river significantly altered the flow of water into the delta and destroyed about 90% of the sturgeon’s spawning grounds, which can be as far as several hundreds of

12 kilometres upstream. This graphic displays the reported figures for these three markets.

The European Union countries take a huge share of lobster and crab consumption in the world. As shown below, United Kingdom is the second largest country in the European Union for consuming lobster and crab after following France and other EU countries. Source: LEFRD Statistics for ending 2011 year

As the United Kingdom takes its place as second in the Europe, London and its West End plays a key role for lobster and crab consumption in the United Kingdom. This takes place because the awareness of oyster extinction and due to the fact that thanks to fishing farming industry which is booming has been providing an opportunity to catch up the demand. Therefore, as long as the demand is being satisfied, meanwhile the demand is developing and improving.

Therefore, there is a gap in the market because the demand for lobster and crab is developing in daily basis. The answer to the question of if there is market in the gap would be supported by primary and secondary research appropriately. Our goal is to promote the consumption of lobster and crab and its products in order to protect the interest of customers and their consumers. In the market and industry itself, Greek and French lobster and crab takes a huge amount of lobster and crab consumption. According to HMRC (HM Revenue and Customs) statistics for first quarter of the year of 2012, Greek lobster and crab is the most favourable among lobster and crab lovers. There is also a remarkable share of French lobster and crab in the market. As indicated below, statistics on Greek and French in other words Green Lobster and crab is the most favourable against the farming production lobster and crab.

Eg data on statistics:

13 Source.....Internet magazine (2012)..

Having said Greek and French lobster and crab takes a huge share from the market, there is a growing evidence of awareness and ethic issues tend people to consume guilt free oyster lobster and crab such as sustainably grown fishing farms. There are small group of members who involved in the trade of lobster and crab in terms of supply and sales in London.  Lobster and crab House & Prunier  Imperial Lobster and crab Ltd  Mattra Ltd Taking into account that the objective of this proposal is to import canned lobster and crab into the UK and supply to its customers in daily basis and fresh. This allows us to see the gap in terms of differentiation that it is the supplying daily and fresh lobster and crab to its customers.

Primary Research (example)

Sufficient time was spent in ascertaining what the representative sample would be and the primary research was directed toward such a sample of respondents.

Based on the data collected from 55 survey respondents directly from residents of Curepipe City last November 22-29, 2011 (See Appendices A & B), Quality of

14 food still tops the preference when choosing a seafood restaurant. This is followed by cleanliness, price, customer service, ambience, and food choices respectively.

Ranking Result of the Survey Consideration Quality Cleanlines Price Customer Ambience Food s Service Choices Overall Rank 1 2 3 4 5 6 Average Rank 1.60 3.31 3.42 4.09 4.18 4.40

The survey shows that food choices is the least consideration that customers have in choosing a seafood restaurant. As shown in the data below more than a third of the respondents ranked this category last and nearly 70% ranked it below 3rd. On the other hand, the price ranking validates the increasing middle class population in the Mauritius. It shows that nearly 70% ranked it 3rd or below as their considerations for a seafood restaurant. These data confirms that having a good quality seafood restaurant with a few food choices at a reasonable price would be preferred.

Percentage of each Ranking based on Category Quality Cleanliness Price Customer Ambience Food Service Choices Ranked 60.00% 5.45% 14.55% 0.00% 14.55% 5.45% 1 Ranked 27.27% 25.45% 18.18% 12.73% 5.45% 10.91% 2 Ranked 7.27% 20.00% 29.09% 20.00% 9.09% 14.55% 3 Ranked 3.64% 32.73% 10.91% 23.64% 16.36% 12.73% 4 Ranked 1.82% 14.55% 3.64% 32.73% 27.27% 20.00% 5 Ranked 0.00% 1.82% 23.64% 10.91% 27.27% 36.36% 6 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

On the same survey of conducted the following questions were asked to explore the possibilities of having additional facilities in the seafood restaurant:

1. Will you prefer a seafood restaurant with an exclusive videoke room?

15 The result shows that 72% of the respondents would prefer to have an exclusive videoke room and

2. Would you prefer a restaurant with a function room where they can have a company meeting?

82% confirmed they would prefer a restaurant with a function room where they can have a company meeting.

Considering the findings in the research, and using the blue ocean strategy as a strategic approach in entering the food industry specifically the seafood restaurant sector, this business venture will emphasize on the things that the customers prefer and less of the things that are non-essentials for the success of the business venture.

By implementing this concept new market segment’s needs will be addressed and the pain for pricing will diminish by removing the non-essentials that add to the cost like complicated choices. There will also be adjustments in ambience and customer service to add more value to the price of the products served. 3.2 Product / Service Feasibility:

16 Publishing industry takes a great part in UK economy. According to a website (www.keynote.co.uk) published report UK publishers sale in 2009 were £12.07bn. Nevertheless, to bring product variation in existing market with new product idea helps to increase this sales figure in two times. Based on market survey and one to one interview webpub.co.uk find few product gaps in current market, UV varnish product is one of them. Webpub.co.uk would like to introduce this product with innovative concept, which will be used instead of film laminated product as environment supportive.

On the other hand, customers are looking for shiny and quick turnaround product from a publishing company and they ready to spend a high amount of money for a shiny product to attract their company advertisement in extensive competitive market. UV varnish is a kind of material which helps a publisher to finish a publishing job overnight and helps a company to satisfy their customer with low cost. A survey report of publishindustry.com stated that “UV coating product is approximately 30 percent cheaper then film lamination.’’ Webpub.co.uk wants to serve this industry with low price and good quality product.

3.2.1 Services:

As a new publishing company webpub.co.uk will add another value in service. Offering customize design and sizeable publishing materials for the customers who are getting a package price. From the market research company able to find some information about the customers that for publishing their promotional items they need to do design from another company and need to pay fixed amount of money and publish price to other publishing company, which also time consuming for them. Based on that webpub.co.uk want to come up a package of design and publish both with a good price. For instance UK biggest publishing company publishcarrier.com they only focus on publish and charge high price.

3.2.2 Intended for:

17 At the starting period of webpub.co.uk will mainly target sole proprietorship business and reseller publishing business in UK. To diversified company’s income company has identified a number of business sector, which are require publishing services time to time to operate their business in competitive market, namely

 Dance Club

 Advertising firm

 Educational institute (School, College)

 Amusement Park

 Restaurant

 Social care services etc.

Above mentioned individual business do million pound businesses with publishing industry. Thompson (Creativepublisher.co.uk, 2012) mentioned that “each and every month they sell around £40,000 to education sector.”

3.2.3 Novelty Attributes:

As a new venture in publishing industry webpub.co.uk always focus on customer demand and requirement. To satisfy customer demand this company is going start journey with new product value and services. Not only customers webpub.co.uk also keep concentrate on environment and introduce new product UV varnish on publishing product.

Ultra violet varnish (UV) publishing product concept is new in publishing industries, which help customer and a publisher to get good quality product. It’s a kind of liquid coating used to ‘mask off’ any area of a design and enhance it, varnishing text, logos or images help to prevent ink offset (Anthony, January 2011). UV varnish makes a publishing flyer shinier and ink protected then lamination and easily attract customer eye on that. Moreover, UV varnish is environmental friendly and cheaper then film lamination. Any individual business

18 especially amusement park and club do marketing activities time to time to attract people. They usually use publish media (flyer, voucher, coupon etc) to reach customer mind and people are more attractive to colourful things, where UV varnish makes a flyer colourful with glossy outlook. Nevertheless, UV coating helps a publisher to save £1000 loss from a business. It cannot be denied that ink offsetting is a common problem and get so many customers complain with full refund. Sometimes, there have a huge chance to lose a profitable customer. After publishing or at the publishing time press use UV varnish or liquid ink can stop losing business and goodwill. In terms of profit margin publisher can grow up easily, because it’s not costly as like lamination. By offering cheap price publish services webpub.co.uk able to gain a number of market share.

However, as a business to business (B2B) and online publishing service provider webpub.co.uk will focus more on customer service. Company will offer one stop customer service to accomplish customer publishing requirements. Customer will be able to do any artwork using our tailor file creator software and able to purchase any product / service. Webpub.co.uk will be more convenient and cost efficient than other operator serving through traditional publish service.

3.2.4 Key value delivery members:

Focusing on quality and convenient customer service webpub.co.uk set some activities: firstly design a user friendly website, secondly add a number of customize product category, third stage order placing option where offer a customer to design the artwork, in fourth stage customer will be ask to chose UV varnish product with explanation and at last getting thanking email with invoice and take record of this customer for future reference. Entire activities will be accomplished by educated and experienced employee, designer along with maintaining strong and good network with all distribution and delivery channel members.

19 3.3 Industry Feasibility:

Feasibility studies define how the business will operate in the existing market. It helps to show what and which way should apply to run a successful business and help to develop suitable marketing strategy to encourage investor to invest.

To do industry feasibility company able to identify the GAP in the market and market in the GAP.

. GAP IN THE MARKET:

Heidelberg’s Publish Media Academy stated that, “publish is alive, well and continues to be a popular vehicle for marketers to spreadtheir messages.” Publish media always perceived as promoting sales, specifically in Pamphlet. It makes contact rapidly and gives around 22% of punter ideas for purchase. Publish media play a vital role in advertising new products to reach in a large number of potential buyers in a short period of time. Day by day all business becomes more competitive in terms of price, time, service, quality, and profit.

Based on the research programme company found that people demand convenient way to publish and design their promotional items with a one stop customer service, and company proposed online publishing shop will going to fulfil people requirement. Though online publishing service idea is not new to the market, it’s not vastly served in the market.

. MARKET IN THE GAP:

Publishing industry has been taken a great part in UK economy. Without publishing any individual business can’t think, to support this statement need to explain an example of a business, assuming a educational institute (college) at the time of starting journey need to inform people about their new college distributing prospectus, leaflet, and business card. Business cards which help introduce a organisation as well as a responsible person information. So from beginning time of a day to end of a day organisations need publish media. As online publish shop service helps people to save

20 time and cost and assist to spending that time to other concentrate work. Internet makes the world easy and convenient to drive. Now a day’s people become more addicted about online. From a needle to car people use online shop to purchase those items.

3.3.1 Industry Size, Growth and Profitability:

In the business world the UK’s publishing industry is one of the most efficient, pioneering and creative industry. It has one of the highest ratios of gross value added in the total UK manufacturing sector. This associate to a gross value added of £6.4bn in UK economy (British Publish Industry Federation, 2011). The turnover of publishing industry in UK is £14.3bn. It is second highest value added in United Kingdom market and 5th largest publish manufacturer in the world. It created job opportunity of 140,000 people and approximately 5.5% of the whole UK market. In the year 2009 publish industry had a constructive commerce balance of £1bn. Publish industry grabs the major share of advertising budget about 45% (www.webmartuk.com, 20011). Adding new idea and technology in publishing service industry are forecasting revenue of 2% up in 2012-2013.

21 3.3.2 Life Cycle Stage:

The concept of product life cycle (PLC) concerns the life of a product in the market with respect to business/commercial costs and sales measures. The product life cycle proceeds through multiple phases, involves many professional disciplines, and requires many skills, tools and processes.

To get the full project, please buy the Assignment by using this Link http://sampleassignment.com/pay-now.html

Cost - £39