- Internal Code :
- Subject Code : BUS302
- University : Kings Own Institute
- Subject Name : Entrepreneurship
Entrepreneurship
Executive Summary of Business Start-Up
The purpose of the report is to provide a business start-up solution. The report will provide a business idea and complete planning on developing and starting up an advertisement business for online advertisement. The choice of the business is feasible as per the current marketing environment and approval of the advertisement industry in the current market. A business canvas is to be developed for business start-ups, and the feasibly of the business will be tested. The report is to find the possibility of business success.
Table of Contents
Introduction.
Mission.
Goals.
Ethics.
Business model canvas.
Feasibility.
Conclusion.
Reference List
Introduction to Advertisement
Advertisement is one of the major industries and starting a business in advertisement requires a good number of numbers of excellent human resources. In the advertisement business, human resource plays a crucial role in managing the advertisement industry. Business start-up requires a lot of planning, and the report is to present a clear way to start a business model in the advertisement industry. The business will be named as Bellona Advertisement Company. The business model is started with a mission and goal. The entire business structure is laid on the mission and goal of the organization and business model. The business model helps to formulate the way and means to start, grow, and develop. The advertisement industry is emerging like most of the industry. The organization is to focus on the online publication of advertisements.
Developing online content for advertising purposes is the most important means of promotion and marketing, and therefore, the organization will succeed in its business venture. The possibility of the success of the business model is higher, and therefore, the business model was taken into consideration to develop. In the chosen business model, the client pays to the agency or company for developing the advertisement and promoting the brand or product on the online social networking websites and news portals as well as on television. The report is to focus on developing the business model that will help to have fewer expenses on the tangible object. The investment in the company will be made on human resources and virtual networks. Little investment is required in developing and leasing offices and purchasing computers.
Mission
The organization is to provide effective and innovative integrated brand marketing and solution related to public relations. Good public relations will help to provide better service to the client. The organization focuses on the client's business growth and makes them realize the marketing goal of the organization. The company wanted to be a leader in the world of advertisement and provide an incompatible solution to help the companies achieve a competitive advantage to the organization.
Goals
The business is to focus on delivering the results which are brand-oriented marketing programs and help to formulate public relations campaigns. It will help to enhance the client's awareness and foster the company's growth along with the improvement in sales. The client's development and sales growth are to be focussed. The value of the organization lies in success and pride received after the good growth of the client's organization. The service to the client in the best possible way is our basic value to rely on. It is in our DNA to provide the best service to the client. Providing the best marketing solution to the company is the necessary part of the passion and enthusiasm the organization is committed to. Business start-up strategy requires developing passion and commitment to providing the best service and solution to the client through the effective means of quality team and better organizational structure to be a leader in the industry along with enhanced customer satisfaction.
Ethics
The ethical issues associated with the advertisement business are required to be handled carefully as the ethical issues main bring adverse impact to the business and impose the legal actions against the business activities (Jose, and Roy, 2020). The ethical issues associated with the proposed business are the misleading claims the use of sex appeal the manipulative advertisements puffery or reinforcing stereotypes (Hristov, 2017). The ethical issues associated with the proposed business are the misleading claims the use of sex appeal the manipulative advertisements puffery or reinforcing stereotypes. Sometimes to promote their products and make it attractive to the target customers the businesses of the client companies appeal to represent the product attractively (Jose, and Roy, 2020). It could cause ethical issues associated with honesty and integrity. It is the fundamental ethics of a business to promote the integrity and trust within the customers and build a trustworthy relationship with them. However to present the products attractively, sometimes it will be needed to produce some attractive and exaggerated information regarding the products or services.
Hence it will lead to the ethical issues associated with trust and integrity (Pritchard, Avey, Conroy, and Emerson, 2018). Another ethical issue associated with the business will be the violation of corporate social responsibilities. The governments have become more intended to maintain the corporate social responsibilities for the betterment of the society and the environment it is to be strictly and short that none of the advertising components would receive the target customer or bring adverse impact to the community. The study conducted by Rainone, Oodal, and Niederdeppe, (2018) depicts that some of the advertisements could bring harm to the development of child thereby the sensual advertisements are required to be controlled. It is the fundamental ethics of a business to promote the integrity and trust within the customers and build a trustworthy relationship with them (Al-Mazyad et al., 2017).
However to present the products attractively, sometimes it will be needed to produce some attractive and exaggerated information regarding the products or services. Hence it will lead to the ethical issues associated with trust and integrity. Another ethical issue associated with the business will be the corporate social responsibilities. The governments have become more intended to maintain the corporate social responsibilities for the betterment of the society and the environment it is to be strictly and short that none of the advertising components would receive the target customer or bring adverse impact to the community (Dancewicz, and Struve, 2019). The study conducted by Rainone, Oodal, and Niederdeppe, (2018) depicts that some of the advertisements could bring harm to the development of child thereby the sensual advertisements are required to be controlled.
Business Model Canvas
The visibility of a business depends on the market demands to supply the infrastructure technology human resources and financial capability.
Market
The potential market selected for the proposed business is the UK market research suggests that the advertisement industry causes a competitive share in the market of the United Kingdom. The report produced by statistic depicts that the United Kingdom holds the 4th rank among the world's largest advertisement markets. It is the first and most preferable market for the advertising agencies in entire Europe. Various small scale medium scale and large scale businesses are growing in the country which needs the advertisement to promote their products. Not only the small or medium scale or private businesses the Government of UK also spends a significant amount for advertisement. The report produced by statistic depicts that in 2019 the UK Government spent more than 22 billion British pounds for their advertisements on BREXIT (independent.co.uk, 2019).
The statistics depict how much advertisement industry is active and needed for the UK. The business analysis depicts that there are various advertisement companies in the country hence the market competition is also high. However, the demand for advertisement is also high. Thereby it could be stated that the UK market is favorable for the proposed business. In the UK market, the advertisements of traditional way and the advanced way of advertisement both are practiced. Hence the scope for the business is also wide (Witzel, 2019). The client companies promote their business activities through the online advertising channels as well as the offline or traditional advertisement channels such as the magazine's newspapers or banners. Considering the market demand-supply the competitive rivalry and the customer bands' switching power it could be stated that the proposed market is visible for the advertisement business.
Operation and Technology
The country UK is flooring with technological advancements. There are various development tools and technology that allow the advertisers to develop and formulate for effective and appealing advertisements for the television print media radio and the websites. The modern video editing tools allowed them to create the wow factor in the advertisement so that the customers could easily gas the advertisement and get engaged with the same. The AI and the online advertisement tools the omnichannel marketing tools programmatic and connected TV are the most used advertisement rules for the industry nowadays. All the country is advanced with their technology the cost for installation of the technology is comparatively low. The technologies help to create effective advertisements and earn profit for the business which depicts that the infrastructure and technology are favorable for business growth.
Finance
The financial feasibility will be checked through the cost-benefit analysis of the business. In simple terms, the invested amount of the business, and the potential income from the advertisements will be compared and examine which value is more. For the startup of an advertising agency in the UK, there is the cost associated with the infrastructure the legal caused the HR overheads and the administration cost and the machines and purchase of the software required for advertisements. generally for the average startup business in the UK requires £22,750 in the first year. The market research the pets that advertisement companies in UK charges at least $9,000 to $10,000 per month from the clients for the advertisement. If the venture could capture some big contracts and regularly, the company will be capable of you are a considerable amount for the business. Considering the cost-benefit analysis the profit will be higher than the investment hence the business will be feasible in the market in the provided financial conditions.
Human Resources
the advertisement business is not a labor-intensive job it needs the uniform coordination between human resources and the technology hence the specialist the designer's advertisers are required for the business which the business code capture in the UK market. In society, people are skilled and have adequate knowledge of the tools and software required for the advertisement business. Eventually, the proposed business seems to be feasible in context to the UK market.
Feasibility
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Canvas Segments |
Description |
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Customer Segments |
The customer segments would basically consist of details of the customers. In an advertisement company based in London there are various type of customers who want their advertisements according to their budgets and their requirements. First of all, the customers who want TV based advertisements would be separated accordingly (Kreshel, 2017). The customers who want a print based add would be segmented and the employees of the different segments would cater to the specific needs of the customers. |
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Value Proposition |
The value proposition is an important part of the advertising business. This is a service that would require special level of treatment for the customers. The special segments in the advertisements would already have their rates according to the size or the time of the advertisements. However, the advertising company has the right to ask for a higher rate based on the resources used in the job. For that, proper communication is needed for the company (Delener, 2019). The advertisement company needs to set up meetings through which they would communicate about the value to the clients of the organization. |
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Customer Relationships |
The company needs to maintain a high level of customer relationship with the clients. For the small clients who mainly avail the services of the company from time to time, the company needs to implement creative ideas like sending of greetings cards during the holidays. The company would also need to maintain a feedback log book where they would register the feedbacks of the clients on a regular basis. For the bigger clients, the company needs to maintain a high-profile relationship where in there are numerous levels of interactions. For urgent requirements, they need to address them in a skillful manner. |
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Channels |
The channels through which the company needs to communicate also needs to be monitored on a regular basis. For an advertising company, the channels that come into play are print, television and web. The web-based marketing, promotion and advertising channels are the most productive in the new day and age. The company needs to make sure that all the channels are utilized. However, they would require to concentrate on the channels that are the most important in the modern perspectives. That gives them the highest opportunity for growth. |
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Key Activities |
The activities that the company would undertake, to name a few are, meetings with the clients, drawing down the requirements of the clients, suggesting ideas for the clients, making the clients listen to and become agreeable to the ideas of the company and starting the production for the advertisements (Turnbull and Wheeler, 2017). For the print advertisements, it needs to be a simple print out that would be different for newspapers, magazines, posters, etc. For TV advertisements, the production would be extensive and the company needs to make a script that would present the overall idea for the advertisements. |
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Key resources |
The resources that the company has at hand are the employees and the experts who have the ability to bring the idea of the advertisements into a presentable state for the audience. The final presentable advertisement will be exposed the audience to see. To convert the advertisement from the form of an idea with a few papers to a presentable entity, it needs the involvement of many experts. The production house that would make the Television presentation would not be the employees of the company (Jones, Comfort and Hillier 2018). Hence, the company would need a number of contacts and relationships that they would be needing to manipulate according to the requirement of the situation. |
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Key Partners |
The partners for the advertising company would be the production house and the media entities where the advertisement would be showcased. Through these partners, the advertising company operates. Hence, it is essential for the advertising company to make the best out of the situation. They would need to select the companies that would provide them would efficient service. If the partners are found to be lacking in some of the areas in the task requirements, the company might not be able to take on ambitious ventures even if they have the best ideas in the market. |
Conclusion on Business Start-Up
The web-based marketing, promotion and advertising channels are the most productive in the new day and age. The company needs to make sure that all the channels are utilized. For the print advertisements, it needs to be a simple print out that would be different for newspapers, magazines, posters, etc. For TV advertisements, the production would be extensive and the company needs to make a script that would present the overall idea for the advertisements.
Reference List for Business Start-Up
Al-Mazyad, M., Flannigan, N., Burnside, G., Higham, S. and Boyland, E., 2017. Food advertisements on UK television popular with children: a content analysis in relation to dental health. British dental journal, 222(3), p.171.
Dancewicz, B. and Struve, F., 2019. The Influence of MNEs on CSR in Poland. In Corporate Social Responsibility in Poland (pp. 149-165). Springer, Cham.
Delener, N., 2019. Developing Marketing and Advertising Strategies Through Disruption Philosophy. Journal of Marketing and Consumer Research, 54, pp.51-56.
Hristov, A., 2017. Self-regulation in Action: Violations of the Ethical Principles in Advertisement and PR and the Need for Changes. Ikonomiceski i Sotsialni Alternativi, (4), pp.113-126.
Jones, P., Comfort, D. and Hillier, D., 2018. Common ground: The sustainable development goals and the marketing and advertising industry. Journal of Public Affairs, 18(2), p.e1619.
Jose, A.P. and Roy, R., 2020. EFFECT OF SURROGATE ADVERTISEMENT ON CONSUMER RESPONSE IN INDIA. International Journal of Management, 11(03).
Kreshel, P.J., 2017. Introductory Remarks on the Advertising Business and a Community of Feminist Scholars Making Advertising Their Business. Feminists, Feminisms, and Advertising: Some Restrictions Apply, p.1.
Opinion: Boris Johnson spent £100m on a pointless Brexit ad campaign. He could have trained 3,000 teachers (2019). Available at: https://www.independent.co.uk/voices/brexit-preparation-boris-johnson-100m-ad-campaign-teachers-climate-change-a9129171.html (Accessed: 8 May 2020).
Pritchard, M., Avey, J., Conroy, S. and Emerson, T., 2018, June. The Relationship between Worldview and Moral Recognition in Business: Examining Patterns of Ethical Acceptability: An Abstract. In Academy of Marketing Science World Marketing Congress (pp. 553-554). Springer, Cham.
Rainone, N., Oodal, R. and Niederdeppe, J., 2018. The (surprising) impact of televised antidepressant direct-to-consumer advertising on the stigmatization of mental illness. Community mental health journal, 54(3), pp.267-275.
Turnbull, S. and Wheeler, C., 2017. The advertising creative process: A study of UK agencies. Journal of Marketing Communications, 23(2), pp.176-194.
Witzel, T.C., Gabriel, M.M., McCabe, L., Weatherburn, P., Gafos, M., Speakman, A., Pebody, R., Burns, F.M., Bonell, C., Lampe, F.C. and Dunn, D.T., 2019. Pilot phase of an internet-based RCT of HIVST targeting MSM and transgender people in England and Wales: advertising strategies and acceptability of the intervention. BMC infectious diseases, 19(1), pp.1-13.
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