New Venture Assignment Example | Topics and Well Written Essays - 2500 words

New Venture - Assignment Example Once the market is there everything can be steamrolled to make the plan work. It would be better if she could conduct market segmentation so as to narrow down her target market to a small niche of consumers who she can supply adequately and profitably, and then slowly expand her clientele. The three points form the first assumption, which is that there is an opportunity which the entrepreneur (Olivia) can take advantage of. There are already plenty of coffee houses in Frankfurt, but Olivia’s decision to focus on flavored gourmet coffee is both strategic and realistic. Does Olivia understand the coffee industry/business well? Does she have a good understanding of the coffee industry in Brazil and that of Frankfurt in particular? These are very important questions because although she may have the capital and the market, the coffee business requires hands-on management and skills. It is not enough to just assemble the materials/resources required for the business. For instance, Olivia needs to understand that just like other industries the coffee retail industry has trends (Langen, 2013). Whether she like it or not those trends will affect her business; this is through aspects like climate changes, demand, market volatility, competition, hoarding, production/supply, and government policies (taxation and regulation). Olivia must have or develop an understanding of these issues because they will have a huge impact (positive or negative, depending on how she addresses them) on the success of her business. As such, we make two assumptions here. One is that she understands how the coffee retail industry works and the dynamics involved. Two is that if she does not understand how it works, she knows people who will support her until she does, and she is willing to learn. It has been mentioned that DC would ship to Olivia on receipt of payment for each order. This comes with its