Nicolaie Stelian Introduction to Business NN21SE

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Business

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Nov 24, 2024

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INTROD UCTION TO BUSINES S Nicolaie Stelian

I. Executive Summary The purpose of my paper is to present a business that is about to launch on the market. Any start-up business requires a few details about the market it is about to enter. Not only external information is sufficient, but also internal information is needed, which refers to the company's capital, the products and services sold and the staff employed. All this information has a well-established purpose, it helps the owners of the company to make decisions, to plan and to lead the activities in the company, in an effective way. I will also mention what are the external influencing factors, and here I am referring to political or economic factors and for this I used Pestel's analysis and also the threats from the micro environment, and for that I chose to analyze with the help of Porter's five forces. II. Introduction As I mentioned before, the reason I made this report was to present a business idea that I intend to make known in the current market. The business idea I chose is to set up a store that sells natural juices. We want to know the success and differentiate ourselves from the competition by preparing fresh with healthy ingredients, offering juices that everyone can afford and teaching our customers to adopt a healthier lifestyle. The property will be set up as a partnership and we want to register with the name of Fresh Fruit. Juice and juice drinks, which were traditionally considered a breakfast beverage, witnessed a rebirth after the COVID-19 pandemic hit, as customers sought healthy, immune-supporting items, leading to a resurgence in juice and juice beverages (| Beverage Industry, 2022). Madelyn Franz, the cross-category research researcher at Mintel, describes the almost $19 billion juice and juice drinks business as "sizable but struggling" in Mintel's June 2020 study "Juice and Juice Drink: Incl Impact of COVID-19, US." III. Internal and External Information Because we are in the beginning, we need the information to ensure our success. A combination of internal and external information can provide the background we need to assess our potential and plan our goals for the future (Boiney, 2000). We have chosen some types of information, which I consider to be the most critical for our business and which will help us to plan, analyze and make the most important decisions in the most efficient way. The first source of information we need to use is industry information because each industry has its own requirements. The industry we want to enter is the beverage industry, which is a fairly developed and very competitive industry and this will help us decide the type of drinks we are going to make. Below, we have selected some internal information, and the main information is the sources of funding for our start-up business. We managed to find out about the industry and found out what the start-up costs would be, and unfortunately, we can't afford the capital, but we found out that there are some ways the state can help start-ups by offering them a loan or tax cuts.

This information helped me to decide how the financial and accounting operations will be carried out in our company. Every business owner also needs information on the best marketing strategies on the market today. There are a lot of ways to promote, and we've managed to capture information about their price and decide to choose a few commercials and a partnership with television to have a commercial, because it has a greater impact. on customers and can help us choose a segment of target customers, those who respond to our offer. Because our business idea is closely linked to human health, we will need accreditations and licenses for the products we make, which will ensure that we use fresh products that do not expire quickly and that we comply with all rules and regulations. on health and consumer protection. With this information, the beginning will be easier and we will be able to plan, make decisions and control the various aspects of the business. IV. Pestle Analysis Next, I will analyze the micro and macro environment for the start-up business I have chosen. These methods are also very important in making decisions and help the employer to understand their position on the market, the level of competition, but also what the other threats are (Marmol, Feys and Probert, n.d.). First of all, I will analyze some factors that are also discussed and presented by Pestle. The political factors refer to the commercial laws and the fiscal policy that the government imposes for our store because we are a company that deals with the sale of beverages (pdfcoffee.com, n.d.). I noticed that the Department of Health advises people to use natural fresh foods because they are high in vitamins. We want to follow government rules to keep people healthy and to offer fresh, sugar-free products. Companies like Coca-Cola and Pepsi are strong competitors because they have been in the market for a long time and the government can't stop them from selling unhealthy drinks, but we are trying to stand out and take these regulations as an advantage. The economy affects a lot of businesses and I think the elements of the economy that can influence us in a positive and negative way are people's income, unemployment rate or price inflation. When the unemployment rate rises, people will no longer have a salary and will automatically keep their savings to buy only the basics, without feeling the need to buy juice from our store. This affects us negatively, but we will decide to charge prices so that they can afford to buy a certain category from our menu. Also, all these economic changes can affect the production of the raw material we need from suppliers, because they may not be able to afford to grow fruits and vegetables and then we will have to buy from suppliers who are more they are available, but then automatically they will also increase their prices. We will try to launch products that are as attractive as possible so that we can increase our sales and not be affected by other economic changes. Environmental factors play an important role in the natural beverage industry, due to the fact that we are dependent on the production of fruits and vegetables. If the environment is affected by various natural disasters, people will not be able to cultivate anything and then we will be in shortage of raw materials. It is important to maintain a healthy environment and try

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to reduce the phenomena that have a negative impact on the environment, and that is why we will encourage customers to give more importance to recycling. V. Porter’s Five Forces Just as macro factors affect our industry and our business automatically, I will also discuss the elements in the micro environment that are just as influential and include threats, either from customers or from suppliers or competition. In order to do this, I chose to present the analysis of Porter's five strengths for the juice industry. The bargaining power of suppliers reflects the pressure they can put on our business by adopting various tactics, such as reducing products or quality and especially raising prices. If the supplier had great bargaining power, it would cost us more. The bargaining power of suppliers will be high for healthy foods and their products. Fortunately, there are many local producers in our city, who are just starting out and will be willing to sell us the raw material at a good price for us, so for starters, this threat is not very high for us. The bargaining power of customers is a disadvantage for us because at the beginning we can not differ much from other stores on the market and therefore they have the right to buy juice from anywhere. They will usually look for the places that offer the lowest deals and discounts. Unfortunately, they do not always focus on quality and only enjoy it at a lower price. We will try to prove the quality of our products and justify the prices we have. A threat to new entrants can sometimes be very high or very low, depending on who is going to set up a business. If more technologically advanced product stores come on the market that is able to differentiate themselves and can afford all the start-up costs, then the threat to us will be very high. On the other hand, if they are scared of all the regulations for a new start-up business, the threat will be very low because they will no longer enter the market. Rivalry is a very dangerous and threatening game for our business because there are already many companies on the market that sell natural products and that have formed an image over time. There are restaurants and fast food shops that sell juices under the name of natural juices that people prefer, even if this is not the truth. We must try to approach certain marketing strategies to draw their attention, to prove to them that our products are natural and that our interest is strictly for their health. VI. Conclusion In conclusion, through the arguments presented, I demonstrated the importance of information in making decisions and planning activities. With the help of this information, we were able to choose a segment of customers to serve and we also managed to set some goals to eliminate possible threats and to create a more positive image in the market. There are many factors that influence any business, as we have shown through the two analyzes and for our industry, there are quite high risks, but due to the fact that we have id entified it in time, we will know in the future how to handle any problem.

VII. Reference Bevindustry.com. 2022. | Beverage Industry. [online] Available at: <https://www.bevindustry.com/articles/94256-state-of-the-beverage-industry-juice-category- sees-bump-during-pandemic> [Accessed 4 March 2022]. Boiney, L., 2000. New Roles For Information Technology: Managing Internal Knowledge & External Relationships. Review of Business Information Systems (RBIS), 4(3), pp.1-10. Marmol, T., Feys, B. and Probert, C., n.d. PESTLE analysis. Michaux, S., Cadiat, A.-C. and Probert, C. (2016). Porter’s Five Forces. Namur 50Minutes.com. pdfcoffee.com. (n.d.). pestle dabur. [online] Available at: https://pdfcoffee.com/download/pestle-dabur-pdf-free.html [Accessed 4 Mar. 2022].

Nicolaie Stelian Introduction to Business NN21SE

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