Business Idea in UEA - Coursework Example

BUSINESS IDEA IN UEA     By       Location   Appendix A: PESTLE analysis PESTLE stands for political, economic, social, technology, legal, environmental factors. These are the factors that affect the setup and the operation of a business (Constantinides 2014, p.1) Political factors are the government intervention in businesses such as trade policies and tax laws; Economic factors include inflation rates, interest rates, exchange rates and the disposable income of the consumers; Social factors are the cultural practices and believes of the target society; technological factors are important in production and distribution through marketing; effect of the business activity on the environment constitute the environmental factors while the legal factors comprise of the rules and regulations in the country governing the operation of the business such as consumer rights, health and safety. Taking these factors into account is necessary for success of business. Appendix B: SWOT analysis This is an understanding of the business strengths, weaknesses, opportunities and threats. The business capability in handling and balancing the four factors determine the profitability of the business (Constantinides 2014, p.1). Maximizing on the strength and improving on weaknesses will improve the business performance. Executive summary Given an opportunity to start a business in the University of East Anglia I would start a fruits outlet in the campus. In the surrounding environment, in and outside the campus, there are no fruits outlets to retail fruits to the staff and the students. A market survey will enable me to identify the type of fruits loved by UEA to be able to provide what is needed in the market. Intensive marketing within the institution will aid in pushing my products to the market while a good and reliable supplier will ensure I get the best quality at the best possible price. Background information of the institution University of East Anglia is an English public university in the city of Nowish. Since its establishment in 1968, the university has grown to accommodate both local and international students with the enrolment for 2013 being 14602 students. Students have a variety of courses to choose from in the four faculties and twenty eight schools of study (UEA 2014, p.1). The school caters for diverse culture and is able to attract both local and international enrolments. Through the culture of transparency, the university is able to communicate constantly with students from its various campuses. Business idea UEA To generate a viable business idea in the campus, a study of the available market niche was necessary. A business started from a gap in the market is good as it mostly provides what is not provided in the market (Chantery 2014, p.1). A gap may be in form of providing totally new product in the market or simply putting a personal touch on an existing business, thus having a business that is already in the market but with a different approach to it. This can be through pricing, service delivery as well as product differentiation. This improves consumer satisfaction thus attracting new clients in the business and resulting to good profits for the firm. After a study of the campus and the services provided, I settled on starting a fruit business in the campus. Reason for picking fruit business Fruits are well known country wide for their nutritious and health benefits. Actually, most world ailments can be controlled or avoided through healthy eating. The focus on health in the recent years has increased due to an increase in non-communicable diseases which are mostly associated with the lifestyle adopted by people recently. Dietary recommendations, including those of UK emphasize on consumption of fruits, vegetables and lean meat (Jones, Conklin, Suhrcke& Monsivais 2014, p. 1) Junk are always tasty in the mouth, but nasty to the health of consumers the high chemical content in them as well as excess fat, sugar and salt. A look at the campus catering service provides barista coffee, patisserie and local and international cuisine (UEA 2014, P.1). There is no provision for fruits in the catering service, thus creating a gap in the market. Moreover, the startup capital for a fruit business is considerably low and can be easily accessed by a student. Health benefit is a major catch in this business and with the educated customers in the campus; a fruit business is a viable idea that can be implemented to generate profit for the owner. Increased awareness on healthy eating is also a major factor that will contribute to the success of the business as well as availability of fruits from local suppliers thus making supplies easily available for the business. Requirements for the business The first and the major requirement for any business is the market. The market refers to the potential consumers for the goods and services provided by the business. This market in the campus is available through larger student numbers and the campus staff, both teaching and non-teaching staff. Capital is another basic requirement which in this case is supposed to come from the owner’s personal savings due to the small capital requirement for the business. The capital can be as low as £100. This should cater for the first supply, the labour, transport as well as after sale services such as packaging. The human labour required is just one employee for starters. Sourcing is another major requirement for the business. Dealing with very perishable goods, the source should be within reachable distance to enable restocking as soon as supplies run out and enable business to stock just enough supplies for the day thus avoiding spoilage. An authorization from the campus management for running a business within the campus is also necessary to comply with the campus rules and regulations. Other requirements include a premise which may be a temporary shade within the campus compound put up with the authorization of the campus management, packaging materials as well as water which is widely available within the campus. A refrigerator may not be necessary for starters to cut down on starting expense as well as discourage stocking too many fruits thus ensuring consumers always get the fresh fruits on sale. Background information on preparation of fruit salads as well as storage and handling of fruits is also necessary. This information can be accessed through the internet while the fruit suppliers may also provide some knowledge when consulted. PESTLE analysis of the business The political environment is favourable for the business due to the prevailing peace in the country. This is reflected in the business as usual mood even in the campus and outside. The calm is a good indicator that the political factors favor the establishment of the business. Economic conditions are also going to affect the operations of the business. With the target market being majorly students, the disposable income is limited as most of them are not earning and those earning have a budget to adhere to due to the fee payment as well as other personal requirements. As such, the business should provide fairly cheap but good quality fruits for the consumers. This may be made possible through minimizing operational costs to ensure fairly low prices for the fruits with a good profit margin. The social factors expected to affect the business is the consumer attitude towards the fruits. With increased awareness on the health benefits of fruits and vegetables and the emphasis on healthy living by the society will serve to benefit the business. To ensure maximum social acceptance, the business will focus on educative slogans and providing consumer with the health benefits of the fruits through marketing. Technology is also applicable in the marketing of the business especially through the internet such as in the social networks. There is little government intervention in the operation of the business but the campus rules and regulations will affect the operation of the business. Adherence to the campus rules and regulation on operating a business within the campus will be necessary for successful business. The fruits business does not have negative implications for the environment; on the contrary, the peelings from the fruits if well managed and recycled are a good source of manure. Moreover, to maximize on environmental benefits, the business can obtain supplies from farmers who engage in environmentally friendly practices in production of fruits. SWOT analysis of the business The strengths of the business include providing fresh farm products to the consumers. The fruits are supplied strait from the farm without having to be stored in refrigerators thus preserving maximum nutrients. The business has low operating cost therefore requires little capital to start and operate. Provision of healthy edibles is an advantage that will serve to attract customers’ thus high stock turnover leading to high profits. Customer relation in strength in that being owned by a student within the campus, I will be able to relate with the students personally and attend to their needs. Availability of a variety of fruits will ensure a variety for the customers to choose from. The small size o the business ensures the business is manageable and any move to the wrong direction can easily be corrected. Large numbers of students in the campus provide a ready market for the fruits with there being no competitor in the campus at the time of starting thus providing a chance to create customer loyalty thus becoming a brand of its own. The business also has weak points to be addressed. Due to its small size, it may not be possible to supply the whole campus demand for fruits. The perishable nature of fruits is also a factor to consider since it can lead to great losses. A temporary shelter for operation may be inconveniencing during harsh weather conditions. Despite the weaknesses of the businesses, it has the potential that can be exploited in future. The business has the potential to expand and increase its products to include groceries for the staff. Technology application in marketing is another opportunity to be exploited. Due to the size and the location of the business, the business may be exempted from paying taxes. The business will also face challenges and will need to deal them in order to succeed. Competition is inevitable and the business expects competitors to set up similar business in the campus. Change in weather conditions may affect the supply of fruits especially during winter when the weather is extremely cold. When students are not in session, it becomes a challenge for the business to continue operating. From the SWOT analysis of the business and the PESTEL analysis, the business idea is viable and has the potential for expansion in the future while making profits. This is due to the strengths outdoing the weaknesses. Research before the onset of the business A thorough research on the market demand and supply is the first step before setting up the business. Market research gives entrepreneurs the basic information in business to help them start off well and avoid mistakes (Pyle 2014, p.1) I will conduct a research on the market demand through the use of questionnaires and personal interviews to be able to establish the types of fruits to stock. The questions to be included in the questionnaire include: do you prefer fruits over junk food? If yes, how often do you take fruits? This will have options such as once a day, twice a day, more than twice a day, rarely, any other answer. This will enable me to establish the demand for fruits by the UEA community. What are your favourite fruits? The choice of fruits preferred by the respondents will form a basis for the variety of stock to start with. Open areas for the respondent to write any other comment on the proposed fruit business will enable me determine the taste and preference of the consumer. The respondents will represent the views of the market thus I will ensure that a good number of both students and staff participate in my research. A sample of 30% of the university community is the best to represent the views of the university. The research is fairly cheap and if well managed it can cost a maximum of £50 which is on the higher side (Anderson K. M. 2014, p.1). The cost will include the cost of preparing questionnaires and the cost of analysing the questionnaire. An online questionnaire is the best for a digital institution. A market research on suppliers will also be necessary to get the best suppliers in the market at a fair price. Purchasing fruits from the credible suppliers is the best option as it ensures to eliminate the brokerage cost for middle men as well as get the freshest fruits. A study through the area around the university over the internet reveals several fruit suppliers that can supply fruits to my business. McCathy is my choice supplier for fruits. This is a company located in East Anglia that supplies fresh fruits, vegetables and baked products (Mc Cathy 2014, p.1). The company has been in the business for more than 100 years, thus it is my preferred supplier due to its vast knowledge and experience in the industry. The expert advice offered by the company will be of help to me as I start the business. Marketing Among the marketing strategies I will use is the use of slogans such as ‘fruits for health’. Creating a website for the business will help me market the fruits before and after operation. The campus social media is also my target platform to market my products through informative advertisements that inform the customers of what I have to offer and the health benefits of the fruits. Clips of well displayed fruit arrangement will form part of my marketing over the internet. Printing posters to place on the campus notice board will also increase consumer awareness on the business. Forums for consumer feedback will also be available on my social media platform to enable me receive feedback from them thus improving on the service provision. Participation in various health initiatives in the campus will serve to market my business due to my contribution in healthy living initiatives. Operations Ordering the first supply will be the first step in operating after acquiring a business premise within the campus. When the supplies are received, a good display will work to attract the customers. Additional marketing will be necessary to ensure that the campus society is aware of the opening up of the fruit stall. The specialization in fruits only is my preferred choice due to its edible condition without further preparations apart from cleaning. This is more suitable especially for students since most do not cook in the hostels thus fruits are a ready to eat option for them. With the operations underway, I will make a profit through selling the fruits to the customers at a price higher than my buying price. Bibliography Anderson K. M. 2014, inbound marketing: how to conduct market research on a tight budget. Available from: http://blog.hubspot.com/marketing/conduct-market-research-tight-budget [07 November 2014] Chanteray J.2014, the joy of business: how to spot a gap in the market. Available from: http://www.thejoyofbusiness.co.uk/blog/2010/09/17/how-to-spot-a-gap-in-the-market/ 07 November 2014] Constantinides D. 2014, analyses PESTLE for monitoring your business or organization Available from: http://pestleanalysis.com/analyse-pestel/ [07 November 2014] Constantinides D. 2014, How to provide a SWOT analysis of a business. Available from: http://pestleanalysis.com/swot-analysis-of-a-business/ [07 November 2014] Jones N, Conklin A, Suhrcke M, Monsivais P, 2014, the Growing Price Gap between More and Less Healthy Foods: Analysis of a Novel Longitudinal UK Dataset. Available from: http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0109343 [07 November 2014] Mc Carthys 2014, reselers. Available from : http://mccarthys.co.uk/resellers/ [07 November 2014] Pyle L. S. 2014,Entrepreneur: how to do market research---the basics. Available from: http://www.entrepreneur.com/article/217345 [07 November 2014] UEA 2014, annual report available from: https://www.uea.ac.uk/about/our-university/publications UEA 2014, The campus kitchen. Available from: https://portal.uea.ac.uk/campus-kitchen?_ga=1.27862844.1207846997.1415343403 [07 November 2014] Read More