Unit 1: Enterprise in the Business world
Assignment A
Date submitted: 24/06/2022
Know how trends and the current business environment may impact on a
business
Scenario: The enterprise plan that I have selected to produce in Uxbridge is to start a
burger van where I will sell diverse types of foods such as burgers and kebabs. I will effort
to maintain my food prices as low as £5-£20, as I do not think it is cheap or costly because
we will be using high-quality products. And I choose Uxbridge town because there will be a
huge number of people who are constantly in reason, I chose this idea to sell burgers
because when I explored Uxbridge town, I saw that there are not very many food stalls. So,
if I locate business in that place, I will have a better chance of success because increased
people would buy my stuff. The gap in the market that I identified was a limited supply of
burgers goods at conventional costs. My unique selling point would be to sell as many of the
goods we sell at standard prices as possible so that customers come to my van rather than
KFC or another restaurant.
The current business environment:
Firstly, the attractions of being in Uxbridge. For the businesses to develop, outlining what
local factors should really be evaluated and the implications they might have on the
enterprise. Explaining the national factors that must be considered, as well as the influence it
might have on the enterprise.
National factor:
Customers have additional items available from you that are not direct competitors, which are
considered to as indirect competitors. This involves restaurants, cafes, and those who make
burgers by themselves. To operate a burger van, I will need a registration and a certificate, as
well as to maintain specific food, health, and worker safety while also reflects the current
conditions of the community. Small businesses gain from the possibility for expansion. This
is because Uxbridge has many potential beginnings, is strategically located, has a reliable
system, and is a largest retailer centre. When considering growth, this local dimension must
be recognized. Although the local factors as outlined above may be a beneficial national
factor, they should be taken account when starting or expanding a business. As a result, the
Uxbridge burger van will need to do national factors that may damage their business. These
may include political elements such as a change in government and ability taxation as well as
changes in the economy and the consequence it may have on the business.
The basic taxes that a start-up business would be responsible for the payment under taxation
include tax rate, unemployment insurance, and Value added tax. Her Majesty's Revenue and
Customs would oversee collecting these taxes (HMRC). The effect of a boost in corporation
tax is the same as an increase in business cost. By increasing the amount of expenditure,
lowering tax costs would grow the economy. Taking loans comes with a price, which
includes interest and any additional expenses that might be linked with my business. For
, example, if you borrow £500 from bank, they add £175.18 in interest, meaning that must pay
675.18 more than what you original paid them. A banker may be less likely to approve your
request if your business's credit score drops because of not being able to make loan payments
on time. A greater credit history suggests a decreased interest rate on loans, whereas a low
credit score suggests the opposite.
Exchange rates are the values of one currency in relation to the economies of other nations.
Given their frequent downturns, exchange rates might be profitable for my burger van.
Visitors might pay less than people abroad, depending on where I purchase my products.
Exchange rates could damage my business, though, because if my suppliers are in another
countries, their money might be worth more than the value of the currency in my own,
requiring me to pay more. As a result, it will raise your supply costs and cut into your profit.
The percentage of the labour market that is engaged is known as the employment rate. A
high unemployment rate would negatively impact my business through decreased consumer
spending, cheaper product needs, a potential increase in offending, decreased morale and
demotivation, and a lower probability that staff would be able to find other employment. If
unemployment is low, increasing income increases, it is more difficult to locate and hire
workers without providing a better work environment, and offending rates are lower.
Additionally, if the unemployment rate is high, I can pay them the minimum wage in its
place. I would be able to keep more money for myself or the business, which would influence
my business.
Local factor:
The location is where my business is based in Uxbridge town centre. Being in a high-street
may benefit my business because I get more customers and being in a van may help since I
can obtain more items in my business. However, location may not benefit my business
because my van rent may increase depending on where my van is located, such as a
Highstreet, and being in a Highstreet indicates I have limited access and entrance locations
for goods.
The competition is my local businesses and what they sell, whether it is the same now.
Competitors may benefit my business if there is less competition in the location, which
means there is less competition to obtain customers to come to you. Also, the pricing of my
nearby businesses may be higher than my business. Competition can be damaging to my
business since it implies that there are many other businesses in the location that effect how
many sales I have. Also, if another business is having a deal, they are likely to attract more
attention than yours until you reduce your business expenditures. Competition may generate
new chances for businesses since if there are few businesses in my region, you can expand
and generate more income from sales because more people will visit your stores. Premises,
staff, stock of commodities, location of suppliers, and consumers are all examples of
resources.
Staff are also resources if they live a long distance away, it implies that they will have to take
extra time to travel to work. Also, if unemployment rates in the area are high, they may be
able to reduce labour expenses. Equipment and other supplies are stuff that you may or may
not sell. If the things are considerable, you may need to purchase a warehouse to keep them,
