Would it be a sound business proposition to open a cinema in Andover town centre?

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GCSE

Business Studies

Module 2

Would it be a sound business proposition to open a cinema in Andover town centre?

By Alan Tom

Section 1

Would it be a sound business proposition to open a cinema in Andover town centre?

The aim of this assignment is to find out whether it would be a sound business proposition to open a certain shop or business of my choice in Andover town centre. I will collect as much information as possible and then finally answer my title question.

First I will decide what kind of business would work best in Andover town centre by analyzing the advantages and disadvantages of each.

Then I will find out whether or not my chosen idea would be a sound business proposition using a variety of primary and secondary data collection methods, including surveys and internet research.

  • Primary research is research that was done by me, specifically for my assignment.
  • Secondary research is research done by other people that is useful to my assignment.

I will then analyse my results, and use them to help me to make a conclusion.

  • I will also need to consider the location of my proposed business, as this is a very important factor – a shop on a back alley will have less turnover than one on the high street but will also have lower rent, for example.
  • Competition is also an important factor in location – locating your business next door to a similar business might get more people through the door, but it might also force you to lower your prices in order to compete.
  • There is also the issue of promotion and advertising – it is expensive, but it can be essential to a successful business. I need to include it in my costing, which I will use to analyse the profitability of my business.

When I have gathered all of the relevant information that can possibly find, I will be able to make a conclusion. I think that this is an appropriate strategy to achieve my aim.

Section 2

First I need to decide upon a business to consider starting. I have noticed that there is no cinema in Andover town. The cinema would be aimed at all ages. I think there is a market for a cinema selling tickets and food to the different aged people. However I could consider some other options. I also think that there would be a market for an internet café or a club. Andover has a lack of both of these despite the fact that both would be well used. I need to analyse the advantages and disadvantages of all three business propositions.

I have decided that the best business proposition would be the cinema. There is too little potential for profit in the internet cafe and too much risk in the club. There are several ways to approach this.

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My chosen idea is a franchise. The sole trader would not give me enough initial funds and the PLC would be too hard to set up and it would take to long to make decisions. The franchise will give me a good start, it would be low risk and I would not need to worry about advertising.

Location

Now that I sort of understand the nature of my business, I must consider the location in Andover Town Centre. It is set out as one relatively short, but wide street, with the Chantry Centre (a medium sized ...

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