Izabela Dobrescu

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University of West London *

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Management

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Nov 24, 2024

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MODUL E: INTROD UCTION TO BUSINES S ASSIGN MENT: 2 Student: Dobresc u Izabela

Executive Summary In the report that I will make, I will present my business idea, which I want to make functional in the future, and for this, I will need certain details about the market, about the customers, about the competition, in order to be able to decide on start-up costs and how to run my business. There are a lot of threats on the market in terms of competition, and to know what my current position is, but also what competitive advantages they can have, I chose to present how Pestel and Porter's analysis can help me in this regard. Introduction The business idea I have chosen is a business idea that deals with the preparation of fresh fruit juice. There is a huge market for juice products and we want to focus on producing specific types of juices, which are made from freshly picked products every day. Many people love to drink fresh juice and for this reason, I believe that we will be successful in the market because the demand is very high and both doctors and the government urge people to use fresh juice instead of carbonated ones. Our store will be set up in the centre, in Nottingham, because it is a very populated area and most universities have access to our store. Juices are the smallest segment of the Non-Alcoholic Drinks industry in the Consumer Market Outlook, defined as juices from fruits or vegetables with a juice content of 100 percent. In recent years, development has been stifled by a general trend toward less-sweetened beverages and a diminishing percentage of youngsters in the population of many developed economies. The non-alcoholic drinks with the most growth are juice combinations and ready- made smoothies, which are consumed for claimed nutritional benefits (Juices - Worldwide | Statista Market Forecast, 2022). Body Internal and External Information Business information plays an important role as it helps the owner to know the environment and the industry they are going to enter. Also, this information, whether internal or external, helps owners to solve problems and strategically plan certain activities, but also to monitor customer attitudes and assess market characteristics (Plares, 1968). Information is essential to take into account the competition, but also the development trends of the industry. For my paper, I chose to present two important aspects from an internal point of view, but also the most important details from an external point of view. First of all, we needed information about the paperwork required for registration, the fees that are required to be paid for the start- up business, for a business that is done in the form of a partnership, but also what are the necessary licenses, because we are a company which deals with the preparation of products that customers consume. This information managed to make us understand the importance with which we have to deal with everything and we decided which juices we will include in our menu, but also how we will get the raw materials. In other words, other information that the owner needs internally refers to the financial information about the start-up costs and all the expenses that he has to cover. The beverage industry is not that expensive, but we found

out that we will need equipment, rent for the chosen location and money to purchase licenses and permits, but also to promote our business. For start-ups, there are a lot of options, and this information has led us to make decisions about the external sources we can turn to for funding there are a few possibilities, but the most advantageous for us would be if we have managed to get some of the money from investors who would be interested in our business. As I mentioned, only internal information is not enough and for external information, I have chosen to present the importance of details about customers, competitors and the market. When we conduct market research, we get all this external information, which will help us to plan marketing strategies, to decide what will be the ways to attract customers, but also which will be the customers we will focus on the most. much, and last but not least, how can we come up with something in addition to the competition, so that our profitability and market share can increase. Pestle Analysis Pestle Analysis It is very important for a company as it can be considered a strategic planning tool that helps the owner to examine various factors that affect the market environment of his business. Through this analysis, I will be able to develop certain strategies to remove potential threats, and to understand the external environment in which I operate (Franklin, 2011). There are a lot of social factors that play an important role in choosing customers when it comes to food and drink. Factors such as lifestyle, level of education, culture, influence consumer choices and the way they make decisions. I believe that people who are aware of the positive impact of the healthy drinks we produce will become our potential customers. More and more people prefer fresh juice, which does not contain sugar, and considering that young people are the people who spend the most time in the city, it is a great advantage for us and will help us focus on strategies. our competitive. With the advent of technological innovations, which are growing by leaps and bounds, this can help us to make products as attractive as possible in terms of packaging, but also to focus more on promotional channels. Most customers nowadays are looking for convenience in shopping, healthy products and home delivery. If we know how to take advantage of technology, then we can meet all these requirements and needs of consumers. We want to increase our sales revenue through these methods, and to do this we will try to implement an application that allows online ordering, directly at home and also an application through which customers can benefit from certain discounts. Legally, the beverage industry is regulated and under the control of several laws in England. There are licensing authorities, the way products should be packaged and labeled, and other permits needed for the location or sale of a particular product. All these elements are legal factors that include laws on consumer health and safety, environmental laws, in short everything related to consumer protection. These must be considered and treated with great care, as it is important to avoid any legal penalties or penalties that may affect our resources and sales. Porter’s Five Forces The bargaining power of customers is an important factor in the success of a business, because from this point you can set prices, offers and services tailored to their needs (Uenlue,

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2018). For the juice industry, this force is quite a threat to us, because at the moment there are many companies on the market where customers can find juices similar to our products. Unfortunately, they are not interested in the way the juices are prepared or the raw materials and that is why they will always choose the place where the price is the lowest. Rivalry refers to the current competition in the market that deals with the marketing of those products and services that we are also going to offer. The hardest part in this industry is dealing with market leaders who have already formed a reputation and have loyal customers. Once we realized that the competition is very fierce, we decided to approach certain marketing strategies to attract customer attention and find some ways to differentiate our products from those already on the market and for this we will try to we have included in the menu very rare fruits and vegetables. The bargaining power of suppliers is another threat, which can affect any business, because most of us are dependent on the raw materials they offer. However, their bargaining power should not be very high, because there are many many producers who want to sell the fruits and vegetables they grow and are looking for an effective partnership for both parties. This threat does not directly affect us. The threat of new entrants should be a factor that scares us, however we do not consider that it will affect us much, because we know how difficult it is to enter an industry and a new life and many will probably be prevented barriers to entry in terms of costs, regulations, distribution arrangements. As a result, the threat of new entrants is reduced. The threat of substitute products is the last factor of the analysis and unfortunately, it has the greatest influence on us, because there are a lot of products that can replace our juices and here I mean the juices sold in stores, people who want to prepare their own juice at home or natural juices from fast food or gas station. Conclusion Sometimes it can be very complicated to make decisions and face the challenges when you want to start a business, but if you use all the information correctly you will be able to plan your activities effectively for your company. There are many risks and threats in our industry that we have to face and we have managed to identify all these obstacles through analysis and we have managed to determine the ways in which we can differentiate ourselves from the competition and gain its power. competitive Reference Franklin, M., 2011. Managing business transformation. Ely, Cambridgeshire, U.K.: IT Governance Pub. Martin, M. (2019). Porter’s Five Forces: Analyzing the Competition. [online] Business News Daily. Available at: https://www.businessnewsdaily.com/5446-porters-five-forces.html. Plares, E., 1968. Differential utilization of information as a function of internal-external control1. Journal of Personality, 36(4), pp.649-662.

Statista. 2022. Juices - Worldwide | Statista Market Forecast. [online] Available at: <https://www.statista.com/outlook/cmo/non-alcoholic-drinks/juices/worldwide#analyst- opinion> [Accessed 4 March 2022]. Uenlue, M. (2018). Strategy: Porter’s Five Forces (with in-depth example Uber). [online] Innovation Tactics. Available at: https://innovationtactics.com/porter-five-forces www.wise-geek.com. (n.d.). What Is a Micro-Environmental Analysis? [online] Available at: https://www.wise-geek.com/what-is-a-micro-environmental-analysis.htm.

Izabela Dobrescu

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