Formation of Business Idea Assignment Example | Topics and Well Written Essays - 4500 words

Formation of Business Idea - Assignment Example One of the strengths generally includes the effective utilization of cost leadership strategy, wherein the company would import products from either India or China due to which the company can tag a lesser price for its backpacks and luggage’s as compared to its customers. Most vitally, the competency level of Pack-a-Stack would be quite high, as it would recruit skilled and experienced employees that will certainly help the company in marketing and sell its broad assortment of product offerings. The initial start-up capital for Pack-a-Stack will be quite high, due to which the company might be exposed to various investments related risk. Likewise, another weakness for the company would be that the customers’ bargaining power would be quite high as the customers might opt for other brands. Pack-a-Stack can expand its market share by entering into a new business market. The company will also have a future scope of diversification by entering into the tourism industry through its brand recognition. Pack-a-Stack while entering the business market of the UK will face a huge threat relating to entry of its competitors. Likewise, change in the economic condition of the UK might result in a reduction of demand for backpacks and luggage’s, which would make quite difficult for the company to sustain in the UK business market. It is expected that the fund for the business will be collected from two sources namely bank loan and owners capital. In order to finance the launching activities such as the creation of infrastructure, purchase of stocks and assets and hire employees among others, a loan amount of  £76, 000 would be required. On the other hand, personal capital of about  £53, 000 will be used in order to spend for the purpose of marketing and other administrative aspects.