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Entrepreneurship Assignment Sample
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Entrepreneurship is defined as the process of setting up new business and take up risks in order to earn profits. Business opportunity helps in successful establishment of new business. Factors of macro and micro market influence the working of the firm and helps in determining strengths and opportunities. Macro and micro industries are categorised on the basis of its investment in plant and machinery and in terms of service, it is based ion the investment on equipments. Cash flow state determines the inflow and outflow of cash of the firm.
Entrepreneurship is a process of setting up a business and taking risk in the hope of earning profit. It is the willingness and capability to create, organise and operate a business firm along with its risk to make profit. Initially these businesses are small in size and the individual who creates it is known as entrepreneur. The present assignment covers business opportunity, macro and micro market, financials and macro as well as micro industry. Macro market determines the impact of marketing strategies and policies on society and economy. Micro and macro marketing embrace what enterprises believe as merchandising in popular sense & how decisions are made by business society on aggregate basis (Barringer, 2012). Macro and micro industries are large and small enterprises which are categorised on the basis of investments that an industry have in its plant and machinery.
Present studies shows that bubble tea shops are more preferred by students as well as professionals as they can sit there not only to drink bubble tea but also for studying and working. Now a days, it is very common to see individuals in bubble teashops sit in at tables and do their work. It might seem as a good idea to open bubble teashop in United Kingdom. For some people, it is a good place for sitting due to easy access to Wi-Fi, snacks, bubble tea and table that makes a substitute for traditional desk (Butler, 2012). In spite of that, regular stores don't possess a healthy surroundings to conduct projects related to work or write a coursework. Charles bubble tea Shop is having their operations in United Kingdom and administer all these facilities to its customers includes professionals and students. It is a comfortable place for them to study or work. In proximity to Middlesex street, it is difficult to find a place where a person can sit and focus on its work. Primary research shows that majority of individual frequently work or study outside of offices and homes. Charles bubble tea shop offer all these facilities to its consumers. In fact, around 63 % of people struggle in the area to find an appropriate spot to do so. It seems that there is no suitable product equivalent to this issue. That is the reason to use Middlesex street area to establish specialist innovative bubble teashop that meets the requirements of both professionals as well as students who looking for a place to work or study and administer them something that is not provided by the competitors (Dacin, Dacin and Tracey, 2011).
Micro market is defined as a small, self contained outlet in an area without an individual to monitor it. It is a custom designed trading mart or market with self checkout kiosk. It administer users a convenience with prices and vending options. They bring a complete new level of satisfaction, selection and service to break campus and work room. Although these markets may have the feel of small convenience store and offer more goods than a trading machine.
Micro market helps Charles bubble tea shop to emphasize on pReferences and needs of selected group of customers such as students and professionals and offer them a wide range of products specially bubble tea and snacks with the facility of Wi-Fi so that they can study or work comfortably. The best attribute of micro market is not only convenience to access bubble tea and snacks, but the fact that all are self serve (Hitt and et. al., 2011). Additional manpower is not required in order to serve tenants and employees. These technologically advanced and convenient market stations take the business trading options of Charles bubble tea shop to a complete new level. In addition with increased product selection, the market also administer:
- Customized set ups and products
- Cutting edge inventory system
- Efficient self checkout capacity
Micro markets are fastest growing retail sector, nearly tied to the trading industry that use automatic self checkout technology to operate in the areas that require an unattended payment experience. These are the stores that administer an enhanced customer experience, increases product variety and sales in a single area while increasing operational efficiencies and keeping down labour costs. As an outcome of increased convenience and efficiency, the channels of micro market has grown exponentially. Micro marketing is a strategy or policy which focuses on generating profit by customer satisfaction. The advertising efforts of these markets are emphasized on small group of targeted potential customers.
Macro market defines as the impact of marketing strategies and policies on society and economy as a whole. Particularly, it refers to how the 4p's of marketing – product, place, price and promotion strategies generate demand for products & services, and thus affect what is manufactured and sold in the economy (Kuratko, 2016). Its scope is large as it put more emphasize on the aspects that goes on the far side measure of micro marketing. It is a system that addresses problems at the nexus of society and market.
(Source: Demand and Supply Curve, 2017)
Marketers view it as a tool that assists them to study the shortcomings and opportunities of marketing. It seeks functional tools that can assist to improve marketing systems and processes. Contradictory to micro marketing, it emphasizes on relationship between process of production and purchase patterns of customers. The concerns of both macro as well as micro marketing is fully different.
On the other hand, macro marketing is concerned with social responsibilities and marketing, market regulation laws., overall behaviour patterns of consumer, socially admirable advertising methods and efficiency of marketing systems. It will target maximum possible consumer base. It is the best method to use if the business of Charles bubble tea shop will consider all aspect of marketing. This concept emphasizes on attributes like product features, availability, packaging and advertising (Neck and Greene, 2011). It examines social impact of marketing and flow of goods and services in economy in the best possible way. It also assess the advantages of these goods to society. Some factors of macro market that influence the firm are:
Political: Various laws and regulations influence the working of firm such as trade restrictions, rental property law, employee law etc. For opening bubble tea shop, licence is required and many other things are needed so it is necessary to follow all the laws and policies made by government. There are various trade restrictions that are exist in the market so, it is necessary to follow appropriate strategies.
Technological: Changes in technology affects the efficiency and effectiveness of production processes. Emergence of new technology helps in creating innovative products. By the use of effective technology in bubble tea shop
Social: As the firm is new and start with innovative idea, the competitors are less. It is the reason to enter in market of United kingdom. On the basis of demographics and marketing segment, it determines development of product, target audience and the quantity of product to be produced.
Economic: Number of bubble teashops are increasing and it will become popular in United Kingdom. Micro market is highly concerned with how businesses make decisions related to production and marketing of product, brand management, distribution channels, pricing decisions, promotional and packaging decisions, buying behaviour of individuals and production processes and methods.
Market analysis of macro industry includes:
Industry growth: There are 2 key factors of bubble teashop: customer sentiment and disposable income. When these increases, demand of bubble tea rises. As per the industry trends, the growth of the firm depends on the number of people who consumes bubble tea on daily basis. If number of professionals and students increase, growth and revenues increase (Sarasvathy and Venkataraman, 2011).
Operating environment: Some facilities are offered by Charles bubble teashop to its customers such as free Wi-Fi facility, tables to sit comfortably to study or work or conduct a short meeting etc. As per the research reports, the competition in the industry is expected to increase. There exists an opportunity to offer products and services in the Middlesex street area to professionals and students so that they will comfortably sit and do their work conveniently. The firm is expected to grow at 3.7 % over five years.
Market opportunity: The target customers of the company are professionals and students. It is an opportunity for the firm to offer good environment to its customer with easy access to Wi-Fi and administer quality products so that consumers feel happy and satisfied and visit the place more and the goals and targets of the company can be fulfilled (Shane, 2012).
Market analysis: There is a clear need for a place where people sit comfortably and do their work as well as drink coffee. The existing facility of firm attracts more customers by its comfortably sitting area, delicious bubble tea and snacks and excellent Wi-Fi facility.
Expansion strategy: Bubble tea shop facilities are necessary in the Middlesex street area to support growing need. The existing firms do not provide facility of Wi-Fi for the students and professionals. The competitors of the firm are Starbucks, Costa, Wasabi, Cha time etc.
Some key success factors of the firm are as follows:
Quality of product: It is necessary for the firm to provide quality products to its customers so that they are more satisfied and chances of success increases.
Customer analysis: It is necessary for the firm to understand the needs of customers and as per the needs provide them products in order to satisfy them.
Competitor analysis: In order to achieve success, the firm needs to identify its competitors and provide better products than its rivals.
Environmental analysis: It is essential for the firm to analyse external as well as internal environment of the firm in order to know strengths, weaknesses, opportunities and treats.
Micro industries are those in which the investment on plant and machinery are is less, i.e., not more then 25 lakhs. When analysing firms at micro level, it is necessary to address the topics that affect profits, growth, market entry and cost of the firm. These industries have less resources so, they are not be able to properly utilized these resources (Storey, 2016). The constraints include supplier frameworks, adequate consumer base, financial investment level and the issues that has impact on short as well as long run costs and revenue of the firm. Its store is different from its competitors in terms of quality, atmosphere, service and delivery option. Every time customer thinks of drinking coffee, they will remember Charles bubble teashop by its original taste and loyalty card. Consumers will be willing to come and have bubble tea due to its taste (Welter, 2011).
As per the given cash flow statement, it has been evaluated that loss is high in month 1 and it has been continuously reduced in second and third month. In month 4, no loss takes place, in fifth month, again the cash flow of the firm comes in negative and in sixth month, the cash flow of the company comes in positive, i.e., that means company earns profit of $ 5,345.05. In micro level industries, the decision makers are concerned about minimizing cost and maximizing revenue. Implementation of proper marketing strategy by Charles bubble teashop helps in reaching out customers indirectly.
The overall business is feasible, after some months, the it is going to make profit. I would personally recommend the business as there is no barrier of entry. The investment in the business is low and the running cost of business is also low. Furthermore, in evidence of changing demands of customers, we could say that the opportunity of growth of business is high.
After carrying out this study, I have realised that lots of things are needed before starting any business. It has been found that financial part is very difficult and rest of the part I enjoyed. The study assists in developing academic skills and consciousness about new business.
From the above mentioned report, it has been concluded that the aspect of micro and macro market are important as they play an important role in assisting businesses to develop an effective marketing strategy. Successful and effective marketing campaigns take business to complete new level and assists in generating higher profits. Proper understanding of macro as well as micro marketing concept makes easy for business to know the best area to focus on. Macro and micro industry defines some factors on which growth and success of the firm depends.
Books and Journals
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
Butler, J. S., 2012. Entrepreneurship and self-help among black Americans: A reconsideration of race and economics. SUNY Press.
Dacin, M. T., Dacin, P. A. and Tracey, P., 2011. Social entrepreneurship: A critique and future directions. Organization science. 22(5). pp.1203-1213.
Hitt, M. A. and et. al., 2011. Strategic entrepreneurship: creating value for individuals, organizations, and society. The Academy of Management Perspectives. 25(2). pp.57-75.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Neck, H. M. and Greene, P. G., 2011. Entrepreneurship education: known worlds and new frontiers. Journal of Small Business Management. 49(1). pp.55-70.
Sarasvathy, S. D. and Venkataraman, S., 2011. Entrepreneurship as method: Open questions for an entrepreneurial future. Entrepreneurship theory and practice. 35(1). pp.113-135.
Shane, S., 2012. Reflections on the 2010 AMR decade award: Delivering on the promise of entrepreneurship as a field of research. Academy of Management Review. 37(1). pp.10-20.
Storey, D. J. ed., 2016. Entrepreneurship and new firm. Routledge.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward. Entrepreneurship theory and Practice. 35(1). pp.165-184.