Management Skills and Entrepreneurship - of Tech City - Case Study Example

Management skills and entrepreneurship

(Case study on Tech City)

Table of content

1. Introduction3

2. Background of the organisation4

3. Business opportunities5

4. Marketing strategies8

5. Business operations10

6. Financial projection12

7. Conclusion14

Reference List15

• 1. Introduction

In such an era of global competition, the marketing strategies provides an opportunity to the businesses to promote the brand at target market, so that it is possible to retain more potential buyers towards the brand (Tech Nation, 2015). In this regard, it is important to analyse the current market environment of conducting the business as well as internal strength to support the customers. The business plan can be developed through proper process which can be described below:

Figure 1: Business plan

(Source: Created by author)

The main purpose of the assignment is to identify the business opportunities and operations of Tech city UK for developing strategic marketing planning for the organisation. Therefore, the business environment, market structure, target customers and business opportunities are effective to develop proper marketing strategies for the enterprise Tech city agency.

• 2. Background of the organisation
• Mission:

The mission of the company is to accelerate growth in digital economy and improve the factors such as capital investment, international development and leadership, infrastructure and digital skills. The company tries to serve the city, London as well as other cities of UK for fostering economic development of the country. The main aim of the organisation is to maintain standard of business by facilitating more collaboration and communication within the team members of the companies.

• Products and services:

The company tries to attract more business activities towards the brand for making the organisational activities successfully. Policy convening is also another service of the company to help other organisations in the UK for maintaining government policies and legislations. In order to connect the digital sector of London, Tech city tries to serve efficient service such as promotional planning and leadership styles. The company mainly tries to support the digital entrepreneur and help the policy makers to build the business ethically. With the help of government intervention, Tech city focuses on policy work for serving the digital industry through implementing effective policies for finance, visas, research and development, EU (European Union) business rules (Tech Nation, 2015).

The company recently launched upscale program in which almost 30 companies want to join for fostering more sustainable development (Tech Nation, 2015). In addition to these, the programs of the company are efficient to improve digital business and provide an opportunity to the business to consult with the expertise or advisers. The activities of the enterprise including different programs, promotional activities and policy planning are appropriate for sustainable development of the digital industry of UK (Tech Nation, 2015). The organisation receives funding from the UK government through which they try to increase efficiency in supporting the business activities and provide them a suitable way for successful organisational expansion. In recent times, the company gives a wide of range of platform to the today’s businesses by developing software for mobile, desktop and tablets.

• Summary of Tech City:

Tech city agency is an organisation that focuses on improving efficiency in digital business by ensuring high economic growth, regeneration of new business, digital entrepreneurship, regional development and employment generation. The organisation is successful in influencing more sustainable development. As the digital industry is growing approximately 32% rate, the companies are efficient to generate attractive profitability (Tech Nation, 2015). The organisation created almost 1.56 million jobs in the last year in which almost 41% jobs are in non-digital sector of UK (Tech Nation, 2015). It is the employment market is growing approximately 11.2% rate which is faster than the economic growth of UK. The company is successful in generating profitability through advertisement and helping the companies technologically and legally. Therefore, the concept of tech city is effective for the UK organisations to foster growth and secure sustainable development in near future.

• 3. Business opportunities
• Target market:

The company needs to target the potential digital entrepreneurs and delivers quality service and technical support for running their business activities successfully. Moreover, it is also beneficial for the brand to retain the business owners who try to promote their brand in the international market or at target market. As Tech city UK supports the businesses to place it at target market through implementing different marketing mix strategies, it will be profitable for the company to retain the entrepreneurs of the digital businesses. The digital businesses in the recent years require proper promotional channels mainly through social media to support social community events and retain more potential buyers in the international market.

• SWOT analysis:

In the recent era of global competitive market, London is growing rapidly supporting both start-up and scale-up of the businesses in the Europe digital industry. The technological companies were efficient to foster sustainable growth and generate $1.6 billion in 2014 (Tech Nation, 2015). After the launch of Tech city, venture capital is raising rapidly which is approximately 10 times higher than the capital accumulation in 2010. The firms want to grab the market opportunities with the help of the Tech city agency for securing sustainable development. The digital technology industry is expected to grow rapidly in upcoming years creating more than $12 billion (Tech Nation, 2015). The company mainly tries to secure public private partnership by adding value to the digital entrepreneurship. Therefore, the main customers of the organisation are the business entrepreneurs who try to foster more development in digital businesses across UK. The company tries to retain more customers towards the brand for scaling up their digital business successfully. The entrepreneurs who seek proper suggestions are also the main customers of the Tech city UK as it provides qualified expertise to guide the digital entrepreneurs in the country.

High potential to meet the client’s business requirements and organisational capability are the main strengths of the company. However, as there is high competition in the market, one major weakness of the company is its price. Through proper business planning, the company can grab the future market opportunities such as digital industry development and rising demand of the entrepreneurs.

• Competitive Advantage:

The UK industry is totally competitive and the company needs to develop proper planning to gain competitive advantage over other existing software development companies or business consultants. It will be beneficial for Tech City UK to retain the customers who need proper support to start-up a new business or scale-up the existing business. Therefore, it is will be beneficial for the organisation to support the business by developing proper applications or designing proper pages in social media such as facebook, Twitter, Blogs and YouTube to attract more digital businesses towards the organisation. In this regard, advertising and promotional activities are the main source of income and revenue generation of the enterprise. Therefore, the main customers of the organisation are the partners, investors and the entrepreneurs of the digital businesses. The company needs to improve the customer’s service department for delivering quality support and appropriate suggestions to the digital businesses successfully.

The digital communities try to attend the workshop of the organisation for gaining more technical skills and knowledge to start-up a business successfully (Tech Nation, 2015). Therefore, the organisation is looking for partners who need proper support to scale-up and start-up digital businesses. The main competitors of the Tech city UK are the companies in other countries that support the small business activities and guide the digital entrepreneurs.

• Geographical area:

Tech City UK serve a wide range of geographical locations and it is reputed for delivering quality support to the companies who want to scale-up their business and also to the digital entrepreneurs who try to start-up a business (Tech Nation, 2015). The organisations in London prefer more innovations and creativity for achieving something higher in different way. Therefore, it will be helpful for Tech city UK to expand their activities across UK to support a wide range of businesses and retain more digital entrepreneurs.

Tech city UK serves the cities such as Newcastle, Bristol, Leeds, Cardiff, Edinburgh, Manchester and Cambridge. Therefore, the organisation is successful in retaining a wide range of businesses from different cities (Tech Nation, 2015). Through serving in different cities, the organisation is also successful in creating more jobs in UK and increase the wage rate in the digital business sector. Therefore, there are business opportunities for the rising era of technology and innovations. The organisations need to identify the business requirements of the entrepreneurs for supporting them properly and provide them proper solution. The business is reputed for big cloud computing, data analysis, IT security, website development and mobile applications development. Therefore, the services of Tech city UK are efficient to target the potential buyers and help the digital entrepreneurs to place the brand at target market.

• 4. Marketing strategies

It is essential for the organisation to develop effective marketing strategies for promoting the business activities if Tech city UK though which it is easy to target the potential buyers in the market. Technological advancement provides an opportunity to the organisation to place the brand and launch their products and services so that the entrepreneurs find their solution successfully (Tech Nation, 2015).

• Promotional strategy:

Social media marketing strategy provides a scope to interact with the entrepreneurs though which the employees of Tech city can understand the actual needs and preferences of the digital industry. The employees of Tech city UK further utilise the advantages of social media in providing all the relevant information about the service of Tech city to support their ideas to a wide range of business clients (Tech City, 2015). The enterprise ensures the quality of service and proper support to the business entrepreneurs so that the business owners can start-up their business activities in a cost efficient manner. The company ensures that they provide end-to-end solutions to their clients to satisfy them by fulfilling their real business needs.

Therefore, in order to deliver their service and products, it is important to strength their distribution network to support the digital industry in an efficient way. Therefore, quicker and easier solutions to the business are helpful to generate cost saving strategies to run the business activities with more creativity and innovations. As a digital organisation, it is important for Tech city UK to promote the brand through internet to attract virtual business world to strengthen their customer base. As the digital companies are growing rapidly, tech city UK seeks to retain more organisations for supporting the digital industry (Tech City, 2015).

• Operational strategy:

The enterprise tries to build corporate relationship with the distributors and shareholders for strengthening their distribution network through which they can deliver quality service to the clients. It is more important to identify the needs of the digital industries after analysing the market environment and the expertise of the brand is successful of conducting market research and data analysis (Tech Nation, 2015). Therefore, through market communication, the enterprise tries to retain digital entrepreneurs. In this regard, the social media marketing techniques is suitable for Tech city UK to attract more entrepreneurs towards the brand.

• Pricing and products strategy:

The brand tries to deliver the services such as advertising and marketing, data management and analysis, healthcare service, e-commerce, Edtech, Fintech, games and software development, lead generation, networking and telecommunication (Tech Nation, 2015). These wide range of products and services of the company are effective to retain more businesses towards the brand. In this regard, the company needs to focus on costing and pricing their products and services to attract more business entrepreneurs. The brand tries to set competitive pricing to deliver quality service at affordable price. This price and product differentiation strategy will be helpful for the company to promote their business activities in the market and gain competitive advantage in the international market (Tech City, 2015).

• Sales forecast:

The investment and profitability is rising rapidly and therefore, it is expected that the sales volume of the company will rise significantly in the upcoming years.

Number of years

Sales forecast (rise in sales in %)

Year- 1

36%

Year- 2

48%

Year- 3

52%

Year- 4

59%

Year- 5

65%

The organisational sales volume is expected to increase continuously due to rising era of digital industry. Therefore, it is beneficial for the organisation to promote the brand and track market demand successfully so that the expected sales can be achieved. In the recent technical era, high market demand for technological support is helpful for the enterprise to increase their sales volume and promote the brand through social media interaction, developing quality website and product differentiation strategy (Tech City, 2015).

• 5. Business operations
• Operational functions:

The organisation mainly develops strong understanding of the business activities and tries to manage the activities as a team. Proper team work helps the firm to achieve the organisational objective to foster growth of the digital industry of UK. Day-to-day business operations, decision making practice and strategic thinking are the main factors through which Tech city tries to operate their business and help others to improve their efficiency in more innovative and creative way (Tech Nation, 2015). The main function of the operations is to monitor day-to-day business process to recommend some suitable suggestions for successful expansion of the business in the international market.

In this regard, it is important to analyse the revenue growth of the company to acknowledge the market share and customer base of Tech city UK. Revenue growth for advertising and marketing was 72% in the last year as well as it was 67% for data analysis and management and 71% for e-commerce and 55% for Edtech (Tech City, 2015). Moreover, in the gaming industry, the brand was successful in generating 45% higher profit and 88% more revenue came from Fintech. In the last year, the company was successful in generating 59% higher revenue in market place and lead generation and 56% more revenue for health care service (Tech Nation, 2015). Media and entertainment industry was reported for projecting 53% more profit and 68% more revenue came from software development. The company also tries to retain more customers from telecommunication and networking industry as it generated approximately 69% higher revenue in the last year (Tech Nation, 2015). Therefore, the sales projection is helpful for identifying the revenue generation of the company in different digital field.

• Service offered:

The main services of the organisation are business lifecycle program, policy implementation and promotional activities through which the organisations can increase their potential to serve quality service and increase availability of the brand at target market. The organisational service is therefore beneficial for the organisations to retain more consumers in such a technical era. The business lifecycle programmes such as Upscale, Future fifty and northern stars are effective to develop the businesses at maturity stage where they can foster further development (Tech City, 2015). The company provides high level software applications to represent the emerging digital businesses in such an era of global competitive market. Proper representation of the organisation through developing mobile applications increases the availability of the organisational products and services in the international market. Henceforth, through this strategy, the brand provides an opportunity to other digital businesses to retain more potential buyers in the international market towards the brand and increase transparency and accountability of the businesses.

• Personnel plan:

Personnel planning

Year 1

Year 2

President

$65000

$79000

Vice-president

$54000

$74000

Management 1

$36000

$54000

Management 2

$36000

$54000

Staff 1

$27000

$39000

Staff 2

$27000

$39000

Total payroll

$245000

$339000

• 6. Financial projection
• Cost and revenue projection:

The company needs to employ efficient technical expertise who can deliver quality service at affordable price as per the requirements of the clients. This strategy is important for maintaining expenses of the brand and provides proper support in a cost efficient manner (Tech City, 2015). It is also an essential strategy for retaining more digital entrepreneurs towards the brand. Due to these strategies, the company is reputed in increasing sales volume, revenue and investment.

Figure 2: Investment generation of Tech city UK

(Source: Tech City, 2015)

There is sustainable growth in investment by the business partners and shareholders for economic development through supporting digital businesses in the country. Therefore, the brand needs to focus on the strategies of setting affordable price so that it is easy to retain more potential digital entrepreneurs towards the brand. Therefore, high investment further facilitates more opportunities in the market to attract more digital companies as the brand is successful in providing creative ideas, innovative solutions and technological advancement for conducting the business activities in a suitable way. Therefore, the organisational operations and financial projection are helpful to foster more development in the UK digital industry.

Cost and revenue

Year- 1

Year-2

Estimated Cost

$ 229600

$326550

Estimated Revenue

$526220

$745900

Expected Profit

$296620

$419350

• Break-even analysis:

Assuming that the total cost per month is $16,767 and in order to achieve $201204 revenue, the brand needs to sell adequate amount of products and services.

In this regard, the breakeven quantity= 201204/16767=12 units.

In order to cross the breakeven point and achieve approximately $201204 revenue, the brand needs to sell 12 units of organisational products and services.

• 7. Conclusion

Tech city UK tries to meet their organisational objective through supporting their client by delivering quality service and products at affordable price as per their requirements. The company is reputed for accessing technological capabilities and the expertise are efficient to provide full benefits of conducting the businesses in the UK’s digital industry. The main objective of the organisation is to inform policy, investment, promotion and encourage collaborative efforts to provide solutions to the digital entrepreneurs. Therefore, the business activities are helpful for the digital industry of UK to secure sustainable development in near future and retain more business clients to start-up new business activities and scale-up the existing businesses. It will be beneficial for Tech city UK to promote their brand through social media and company’s website to retain more business owners and digital entrepreneurs.

• Reference List

Tech City, 2015. UK tech investment hits record high in 2015. [Online] Available at: < http://www.techcityuk.com/blog/2015/07/uk-tech-investment-hits-record-high-in-2015/> [Accessed 24 June 2016].

Tech Nation, 2015. Powering the digital economy, 2015. [Pdf] Available at: < http://www.techcityuk.com/wp-content/uploads/2015/02/Tech%20Nation%202015.pdf> [Accessed 24 June 2016].