Management Research Project & Presentation Unit
Task 1 Develop a business case
Introduction
As a new business project I will be starting up and managing a wine bar outlet which will also provide dining facilities, I have chosen a wine bar because I have recently come upon a passion for wine and would like to own my own business, therefore I will set up the business as a sole trader. I have opted to become a sole trader because I believe that the benefits of sole trading E.g. Having full control over decisions, Low wage bills etc. appeal to me more than that of any other ownership type. After researching certain aspects of wine selling I have decided to set up my business in the queen’s park region, I have chosen this area because I believe it to be an up and coming area, that will attract investments from young up and coming professionals and also established professionals with family’s to accommodate another reason for my choice is that it is relatively close to the city Centre and will attract others who work in the city Centre. I believe that this type of business will be successful because the area that I have chosen to set up my business in attracts the type of people I am aiming my business at, another reason for choosing a wine bar is that wine appeals to numerous amounts of people resulting in me having a bigger target market.
Desk or secondary research is the discovery of available information, therefore information that can be collected whilst seated at a computer or behind a desk. There are two sources for secondary information: ‘External Sources’ and ‘Internal Sources’. An internal source refers to information about the business itself for example, the financial records of a firm or the sales records. An external source on the other hand looks at information from outside the firm such as, census information or published materials.
For the first year my business will strive towards the following objectives:
Survival -I have set this as an objective of my business because I believe that survival is an objective any new business needs aim for as it is a basic need for any business for the first year survival will be the main priority of my business.
Profit Satisficing – This aim is to achieve enough profit to keep the owner comfortable I have chosen this aim because I believe it is too early to be thinking about profit maximization as it is only the start of the business.
Sales Growth – This in simple terms is to make as many sales as possible I have chosen this as another one of my business objectives because I believe that the survival of my business depends on it being large and also I may benefit from economies of scale.
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Task 2 Literature review
Different types of market research:
To conduct market research you have a choice between both ‘Desk Research’ and ‘Field Research’.
� Field Research
Field or primary research requires obtaining new data for a specific purpose; this is mainly done through surveys issued by the company or the invitation of potential customers to come and test the products, the advantage that field research brings is that the firm or company has more control over the whole process but also results in a more time consuming and expensive outcome.
� Desk Research
Desk or secondary research is the discovery of available information, therefore information that can be collected whilst seated at a computer or behind a desk. There are two sources for secondary information: ‘External Sources’ and ‘Internal Sources’. An internal source refers to information about the business itself for example, the financial records of a firm or the sales records. An external source on the other hand looks at information from outside the firm such as, census information or published materials.
When distributing the survey to the public I could have used several different methods;
This method involves sending your questionnaire to houses in hope that the home owner will complete the survey and return it. This method is a relatively low cost way of conduction research and allows you to reach a lot more customers as you don’t physically have to be there. However, mail surveys have a low response rate as most people are not motivated to respond. In addition, you will also need to have a mailing list, which may take some time to compile.
� Telephone
The telephone method requires you to call up your sample rather than speak to them directly or mail them. This allows for easier contact over vast distances. But, in most likelihood you will find that your calls are received negatively and seen as a waste of time.
� Direct interview
This method involves approaching people directly and working through the questionnaire with them. This method is very useful as there is a low refusal rate and you also have the opportunity to demonstrate your product or illustrate your ideas directly to your customer. Although this method seems favorable it can be very time consuming and as direct interviewing is a very skilled technique, it could reap incorrect, false or misleading results if not practiced correctly.
� Internet
A rather modem way of getting your questionnaire filled out, involves either you emailing your questionnaires to your sample or setting up a website for your target to visit, this method is very time efficient and cheap. However you may not get a good response unless you offer an incentive for people to fill in the survey.
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Task 3 Information about market
Factor that influence my competitor:
There are many factors that influence my competitors business. These include:
� Location
My main competition has located itself within walking distance of public transport links and in an area where it has a lot of potential customers
� Market Trends
Market trends play a significant role in my competitors business as there will always be a demand for different types of wine and food’s, this change is something that my competitor.
� The State Of The Economy
My competitors business is somewhat affected by how well the economy is doing but not majorly as it is a big business and can bear losses suffered by economic changes.
Factor that influence in my business
As my business is similar to my competitors we will share the fundamental factors that affect our business decisions. Such As:
� Location
My Wine Bar is located on Salusbury Road, this places it in an area which contains various other popular shops. It is located within 5 minutes’ walk of a high street and it also has various public transport links this location was also chosen because it attracts and is home to the core of my target market.
� Public Transport
The strategic location of my Wine Bar has led to it being serviced by several public transport links; it is located within 30 seconds walk from, Queens Park Station (Bakerloo Line) and Brondesbury Park (National Rail). It is also situated on the 206 bus route.
� Market Trends
Market trends play a significant role in my business as there will always be a demand for different types of wine and food’s, this change is something that my Wine Bar will have to incorporate in its plans.
� The State Of The Economy
My business will be majorly affected by how well the economy is doing as my business is a small business not a large one like my competition for example if the economy is doing well I am more likely to have a higher income as people are more likely to spend money whereas if the economy is not doing so well people will be less likely to spend money and will focus on needs rather than wants.
Competitor will influence my business
� Pricing
Pricing is where I will mostly be influenced by my competition, as I am looking to outdo my competitor by offering cheaper services. This will result in me attracting my competitor’s clientele away from them and towards my wine bar.
� Location
location is also an aspect that is affected by my competitor as I want to make my Wine Bar more accessible so that I get a bigger yield of customers so for example if my competitor was located 10 minutes away from a train station I would try my best to get a location only 5 minutes away.
� Advertising
Because my competition is a bigger, more established Wine Bar I need to place my advertising more carefully and purposefully as my competition have the ability to advertise more extensively than me.
Assignment 2
Task 1 Project resources
To managing wine bar outlet I need necessary resource. Resources that I want nice location outlet, furniture, all require machinery and equipment for wine bar. I need employee to give services to customer. Other resources like advertisement, council license and other license that require for win bar. I need vehicle for transportation which is helping me to product delivery.
To establish wine bar different cost is necessary likewise:
Wine bar outlet rent around �5000 pound in weak and �20000 in month. Wine bar require good furniture to attract customer so furniture cost almost �5000 and other cost like television for entertainment which directly affect the environment of wine bar. This entertainment cost may around � 5000. For wine bar all require machinery cost around �8000. Wine bar shop requires excellent staff to deliver service to customer. This staff estimated cost around �10000 in per month. Wine bar require different types of license to open wine bar which cost around �4000.
Costs of different types of advertising:
� Magazines
The cost of a full page magazine ad in heat magazine is �15000 for one weekly issue. For Sugar magazine it would be �20000 for a monthly issue.
� Flyers
Flyers are relatively cheap to purchase and can be designed to your specification the only problem being that you would have to distribute them yourself. Flyers range from �105 for 500 to 30 00 for �765.
� Television
Cost of advertising on television has to be split in to two categories; the initial cost of producing the commercial and the cost of airing the commercial. The money spent on producing the commercial is solely up to the company but well-made commercials tend to cost more money. The cost for airing a 30 second commercial on ITV ranges from �3000 to E35000. Depending on the desired time of the commercial.
� Yellow Pages
The cost for a, full process color premium double page advert in the yellow pages is approximately �15 000 in an annually. Although cheaper services can be purchased starting off at around �230.
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Task 2 staff cost
Training is the process where employee or customer learn new thing and try to improve skill. It will increased productivity and reduce employee turnover. It increased efficiency resulting in financial gains and decreased need of supervision. It will build a more efficient, effective and highly motivated team. Training provides new skills for the employee and it keep employee up to date. Through training employee improve their efficiency.
Training and development some responsibility likes:
Learning and development activities make a major contribution to the successful attainment of the organization. Personal development processes provide the framework for individual and self-directed learning. Showing a clear understanding of the business drivers in their organisation. Helping their organisation add value and move up the value chain. Establishing a clear vision and strategy for people development. Involving others and engaging shareholders in a transparent and open way. Having both a good overview of what is needed to advance in the long-term and also of the short-term priorities. Using process and techniques appropriately – without being overcommitted to any one method of delivery. Applying metrics to demonstrate value, and above all. Understanding the legacy that learners bring with them and adjusting their interventions accordingly.
Training cost is very important to know that because it require time, training place, trainer and training course. This employee training expanse directly effect on earnings. Training is done after that employee want to develop this skills by getting practical experience. Wine bar require special training to know all the brand of wine and they know about blending and brand various product which directly need to do work in wine bar. Wine bar employee knows their responsibility and their work. Employee learn about better communication and to give better service to their customer. Wine bare employee knows the test of different wine and their uniqueness. Which wine is more appropriate for which occasion that thing employee know in wine bar. Wine samples and different amount of wine in shot detail can develop by training.
TASK 3 Source of resources
Before I conducted my survey I had some idea of what the results I would receive would suggest. When I finally received the results I was quite surprised to see that the want for dining services at the wine bar where rather subdued, I had expected that almost every participant would like to see dining services along with the alcoholic beverages. One thing that did live up to my expectation was the demand for British Food to be served at the restaurant along with foreign dishes; I had suspected this would be the case because the area m which I am situated is a fairly prosperous and people have money to spend trying out new products. Another aspect that I had predicted was the amount of money people were willing to spend on a night out; I had estimated a total of around �25 which is supported by the research. Another thing that I had counted on was the demand for a variety of wines to be sold because I believed that as with the food because of the income received by the people located in the area everyone is looking for new things to experiment along with satisfying there previous tastes.
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My research turned out to be very effective because along with acquiring new information it solidified what I believed to be true. I think this was mainly down to the questions asked me my survey, I believe that there were a reasonable amount of questions without making it too long and that the questions where all relevant giving me the information and answers I needed about my business.
The information I have gathered from the research will help me m making decisions about my business these decisions include things such as:
� Product Range
My research has been a great aid in finding out what products and services the customer would like to see me put into place, for example I have found out that most people would like me to serve a British cuisine and offer an array of wines from all over the world.
� Pricing
The pricing that I will apply to my product has a great deal to do with the market research, from the information I have gathered I now know that most people are looking to enjoy a night out for less than �50, this lets me know that I need to price my products within this range to get the most out of the customer with the guarantee of future business.
� Advertising
My research has given me an idea of where to place my advertisements as I now know where my target market hear about new wine bars, this has been a great aid as without this information I potentially could have wasted lots of time and money.
Assignment 3
Task 1 Implementation of the project
There are a numerous number of ways m which I could represent the information that
I have collated m my results, these include things such as:
* Chart
* Graphs
* Reports/Booklet
I have decided to show my results m chart form as I believe it is easier on the eye and can be understood clearly without further investigation and it also makes it easier form to make conclusions about my work.
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This graph shows the responses given by thee participants when asked what was the most amount of money they would spend on a night out. From the graph we can make out that 65% of people spend from 00 to �50, this gives me a rough idea on what the pricing on my products should be. When applied to my business this graph is hinting towards the fact that I should offer a full night’s services for under �50.
This graph shows the answers given by the public when asked what types of wine they preferred, they were given the choice of selecting more than one option. From this chart we can see that most people opted to select more than one wine as there were only twenty participants and almost triple the amount of responses, this shows that there is no favorite wine and that people have cravings for more than just one type of wine. This is also supported by the end result as the graph is evenly spread out over all bases. This would lead me to believe that I should provide a vast range of wines to accommodate everyone’s taste at my Wine Bar.
Public when asked whether they thought that a wine bar should serve food and provide dining facilities along with its alcoholic beverages. We can clearly see that the majority of the population agreed that it would be a good idea to have dining facilities. This shows me what my target market want to see m my business and seeing as I am trying to accommodate them it would be best to listen to their requests.
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This graph shows the responses given by the participants when asked what types of food they most liked to eat, they were also given the opportunity to select more than one option to which most people took advantage. From the graph we can see that most people take a liking to British food and also there is visible liking for Burmese & Indian cuisine. As a wine bar owner, seeing this I would be swayed to providing traditional British food at my restaurant while having occasional Burmese & Indian nights.
Task 2 Marketing strategy
There are many ways that a business can advertise its products and services, the different types of advertising include:
� Magazines
This is where a business pays for an advertisement within a magazine. The use of magazines for advertising bring about a number benefits such as Allowing for better targeting of audience, as you can choose magazine publications that cater to your specific audience or whose editorial content specializes in topics of interest to your audience.
� Yellow Pages
The yellow pages are a directory-like service which lists companies and business’ details. Advertising in the yellow pages is relatively inexpensive and allows you to reach a vast audience as almost everybody uses the yellow pages. However advertising in the yellow pages does have its downside, along with the fact that you will be listed with your competitors you
Are given limited creativity as you need to follow a pre-determined format.
� Radio
� Television
The television is another way to get to your audience and allows you to reach large numbers of people on a national or regional level in a short period of time. Along with being an image-building and visual medium, it also offers the ability to convey your message with sight, sound and motion.
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Task 3 Monitoring techniques
The aim of advertising is to make customers of your product create demand which will hopefully turn into sales. Every business must sell their product or service to be successful.
Advertising will affect the success of the business and we can monitor success in the following ways:
� Demand
Advertising should create more of a demand for my Wine Bar. With more demand I should get more customers and this should overall help me achieve my business objectives which I set out at the beginning. To monitor demand of product and demand of service will sufficient for the business by reviewing customer and take feedback from customer.
� The Market
Advertising should alert the market to my presence as a new competitor and also inform potential customers of my arrival, this could lead to an increase in clientele and interest from breweries wishing to market their product in my Wine Bar. We can monitor growth by compering competitor by analyzing market share so try to increase market share through this technique.
� Sales
� Revenue & Profit
Although advertising costs will essentially take away from is overall profit, the amount of sales that it will bring will wipe those costs away resulting in a handsome net profit.
Revenue and profit directly give the detail about the success of ratio. Company growth and value as well as potential can be monitoring by analyzing revenue and profit. Revenue and profit is interrelated with each and every cost of company.
� We can monitor by different law which applied in company:
Trade Descriptions Act 1968
This act states that all statements I make about my products in an advertisement must be true. For example if I advertise that all the food I serve in my Wine Bar contains less than 20% fat when it actually contains well over 50%, 1 am breaching the trade descriptions act. This could lead to me being fined or even put in prison.
� Food Safety Act 1990
This act states that that the descriptions I give of food I serve in my wine bar must be accurate and not misleading, once again if I breach this law I could be faced with a hefty fine or imprisonment.
� Sale of Goods Act 1979
This act states that all the wine and food I sell must be as described and if mislabeled or passed off as any other item I could be fined or given a term in prison.
Conclusion
For the advertisement campaign on my Wine Bar I have decided to use Flyers and posters as my main method of getting recognized. The reasons I have chosen this form of advertising is that I am only starting up my business and do not have a huge source of money to spend and flyers and posters are fairly inexpensive. Also as I am not aiming my Wine Bar nationally I believe that posters and flyers would be sufficient in attracting a fair amount of customers from the local area. To accompany the flyers and posters I will place an advert in the yellow pages, I believe this to be a wise decision as the yellow pages allows access to a vast number of people, as nearly everyone uses them for a reasonable price. I chose not to advertise through television, magazines or radio because although they would attract serious attention and provide credibility to my Wine Bar, a business of my size cannot afford such expenses and to do so would be a fatal mistake in terms of survival.
Reference
Stewart T A, 1998, Intellectual capital The New Wealth of Organizations, Nicholas Broarley Publishing Ltd.
Avgrou O, 2003, Information system and global Diversity, Oxford University press.