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You are to look at the probability of setting up a new retail outlet in your local area.

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Introduction

Project brief: "You are to look at the probability of setting up a new retail outlet in your local area." My interpretation of this brief is that I am to look at the prospects of success that a new retail outlet has in my area (Cumbria). In order to assess the prospects of a fictional retail outlet it is necessary to create a business plan as would be the case with a real business. A business plan must include information and analysis of the following: ? Location ~I n which Cumbrian town a new retail outlet would have the best chance of success. Including an analysis of the advantages and disadvantages of locating a new retail outlet in a number of Cumbrian towns specific to the market in which the new retail outlet will be in. ? Research ~ the desk and field research that is required in order to assess the prospects of success for the new retail outlet n the Cumbrian town which will have been determined by the location part of the business plan. ? Results ~ an analysis of the information obtained by the research part of the business plan. A breakdown of how this information this information depicts the prospects that a new business would have in the area in which the research was conducted. How they suggest the business would be best market orientated in terms of marketing. ? Competition ~ an analysis of other businesses in the same in the predetermined location and what effect these have on the prospects of the new retail outlet. The conclusion that this part of the business plan will draw will be considerate of both the types of business are and which market is being considered. ? Business Organisation ~ an analysis of the how the business would be best owned, run and controlled. This part of the business plan will consider the advantages and disadvantages of many different business organisations. ...read more.

Middle

The amount of human resource required at first is not high therefore reducing the amount of money which is required to start up the business and maintain it in its first years therefore increasing the chances of success for this business. ? No expensive machinery or equipment is required when the salon is new and simple with further reduces the amount of capital required and therefore the amount that must be borrowed or retained therefore increasing the chances of the business succeeding. ? There is no real established market leader in this market in Cumbria, which is a major boost to the chances of this outlet. ? Due to the fact that there is no real established market leader in this area and the effect that this advantage has on the prospects of the business: a bank, the most probable source of finance is much more likely to invest in this business. With a bank willing to invest in this business the chances are good getting the new outlet established. ? A new business has a better chance of success in a market which is not brand name dominated as it is not at a major disadvantage, in this way, to larger companies it may have to compete against. ? This sort of outlet is such that not all the services it can provide ultimately need to be in the new salon and can be added when enough retained profit or further credit or capital can be raised once the performance of the business has been assessed. This also provides the business with plenty of potential for growth and is less of a risk than setting up a large development all at once in case the venture is a failure as more money has been lost. The disadvantages of entering into this market in Cumbria are: ? Though the human resource required is not large the staff required need to be specialists with some knowledge of music in the field therefore they may be difficult to find in an area with a small population like Cumbria. ...read more.

Conclusion

? Of the markets I have investigated the clothing market is the only market which provides an essential good or service therefore it has the largest target market therefore has the potential to obtain the highest turnover and therefore has the highest chance of success. ? Land is one of the most expensive start-up costs when starting a new business and as the other two markets will ultimately require large premises whereas a clothing outlet does not whereas due to its nature a designer outlet can generate just as high a profit from small premises. ? Specialist staff is not required to run this type of outlet therefore recruiting is easier and a lower wage bill results in lower running costs for the business. ? The least amount of capital is required in order to start this business in terms of land and machinery. ? The market in Cumbria is definitely not saturated with designer clothing retail outlets therefore there is a gap in the market which a new retail outlet has the potential to fill. ? Secondary research can be obtained from the fact that a new similar business, Debenhams, has recently opened in Cumbria. ? Difficulties that may be encountered during the project: As with any mock research there are short falls when it is compared to actual research for a real business. These are caused by the following factors: ? As the research is mock it can be expected that it will not be a priority with businesses approached. ? As the project is on a deadline then the detail in which this research would be conducted for a real new outlet can not be reached. ? Businesses are busy with their own affairs. ? Proper research costs money that has not been invested into this project. ? A lot of the desk research conducted may be from sources right up-to-date. ? Primary research is time consuming and due to a tight deadline on this project the detail which may be required can not be incorporated. ...read more.

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