Sound and profitable business decision - Sample Essay
For this piece of coursework I am going to see whether the opening of a new business which serves the passenger community area will represent a sound and profitable business decision. As my business will be located at either Heathrow, Gatwick or Stanstead airport I will have to go there and carry out some research. Once I have done this, I will assess the feasibility of the business in the light of the sort of people who are its main potential source of income.
Furthermore I will also estimate and find out the amount of likely customers, transport links, the availability of parking if relevant and the capability of the environment to support my proposition. Once these observations have been carried out, I will look for a suitable premises as to which I feel will be a good position for me and the venture and then justify my reasons as to choosing 1 premises over the other 2. The type of business venture that I have proposed to set up is a cyber store called ‘Ve – store’ which is run by Virgin.
The reason as to why I have chosen to call my business and have it run by Virgin is because Virgin has an excellent reputation for being innovative. Virgin also specifically aim to maintain the perception of being a customer oriented organisation within the consumer market. In order to uphold this perception, the idea behind Ve store is basically based on a high tech cafi?? including many aspects of the Virgin megastore such as music, movies, magazines and books as an all-in-one cyber store.
I have compared my three proposed business locations and have decided to situate my business at London Heathrow’s terminal 3. The reason being as to why I have chosen this particular area over the other two is because this airport in terms of populations is huge. The airport itself receives well over 64 million passengers per year which means that there is a perfect business opportunity for me because I have a large market surrounding me in terms of consumers.
Furthermore, I have chosen to locate my business in terminal 3 and not the other terminals because this terminal is home to 41 airlines in comparison with terminal 1 which has 13 airlines, terminal 2 which has 28 airlines and terminal 4 which has 6 airlines. This means that there is a larger consumer market available to me and also means that I will have more potential customers. Moreover, terminal 3 has the best crime rate in relation with the other terminals and airports.
The terminal also has 2 items stolen and lost per day which in relation with the other terminals and airports is better off. The availability of transport is also excellent at this airport and terminal as it has more transport links – the London underground and the airport has frequent connection with over 100 buses per day. The competitors that surround my chosen location is also lower than any of the other terminals and airports. This means that I will have to put up with low competition which also means me bringing in more capital and profit.