Business Essentials Introduction

Portfolio Task 1, 2, 3 and 5

Class C
Group Number: 2

Name
Victor Constantin Soroiu
Svetlana Kezun
Kristina Parsenkova
Svetoslav Yordanov
Rokas Lukosius (absent for more than a
month)

Student ID
SOR15415741
KEZ15415650
PAR15415963
YOR15415776
-

Contents

Contents
Task 1..................................................................................................................................... 3
Part A................................................................................................................... 3
Our Idea............................................................................................................ 3
Meeting the needs of our customers......................................................................3
How will operate................................................................................................. 4
Our key competitors............................................................................................ 4
Part B.................................................................................................................. 4
Objectives......................................................................................................... 4
Type of ownership............................................................................................... 5
Task 2..................................................................................................................................... 5
Pestle Analysis...................................................................................................... 5
Political factors................................................................................................... 5
Economic factors................................................................................................ 6
Social factors..................................................................................................... 6
Legal factors...................................................................................................... 7
Task 3..................................................................................................................................... 7
Launch Event and Budget....................................................................................... 7
Task 5..................................................................................................................................... 9
Business Information Systems................................................................................. 9
Strategic Decision............................................................................................... 9
Tactical decision............................................................................................... 10
Operational decision......................................................................................... 10
Bibliography.......................................................................................................................... 11

Task 1
Part A
Our Idea
Hen&Stag Services is a party planning company based in London that will organise
stag and hen events for a range of customers. Our company plans pre-wedding
celebrations on behalf of the brides and grooms working either directly with the
couple to plan individually, or may work with the best mans and bridesmaids that
were given the task to plan the hen, stag parties. We organise parties in clubs, pubs
or more popular this day outdoor activities limited to UK territory.
Product and the justification of our business
Booking a stag do in the UK can be difficult, as many establishments are worry
about allowing entrance. Whether it's a place to stay or entry to a club, many
businesses have been known to highlight their refusal to these groups. Many
different kinds of entertainment can be selected for a hen party, depending on what
the organizers think will best please their guest of honor. For stag party apart from
the night club experiences we can offer many others activities outdoor, sports like
karting, quad biking, paintball and many others. The Hen experience consists from a
variety of services from an afternoon tea party to a lovely pamper day in sauna or a
workshop dance.
According to our research Britons are spending more than 300 million a year on
stag and hen nights. Men spent twice as much as women, with some parties lasting
a week at a cost of more than 500. A survey of 600 people by Teletext Holidays
found that the average cost per person of a stag night was 215, compared with
106 for a hen event. Another survey of stags and hens found that the average
number of people that attend a hen or stag party is 15. In general the total cost of a
stag or hen party attended by 15 people is just over 1,500, with the highest
expenditure being on alcohol. London was the top destination for a pre-wedding
celebration, followed by Blackpool and Edinburgh.
Meeting the needs of our customers
We understand organising a wedding takes time, pressure and effort .Our company
was founded in order to let you focus on that main event and release you from the
stress of organising the pre-wedding celebrations. Therefore Hen&Stag Services
strives to be the best choice of clients by helping to ease their party planning burden.
Through consistent, predictable professionalism, our company will ensure a worry
and hassle-free event at a reasonable price.

How will operate

At the beginning our office will be based at home to keep overheads low. Office
furniture such as desks, chairs, filing cabinets, etc will be required. A telephone,
mobile phone, answering machine and a fax are necessary. A printer, computer and
software will be needed for accounts, a client database, preparing reports etc.A car
will be essential in order to visit our customers and to inspect the venues.
Internet will be very useful by promoting ourselves through the creation of a website
that will include our offers, contact information and of course online bookings
options. It is very important to invest in computer software programs as this will make
it easier for our customers to book and pay online, and include reviews of satisfied
clients on the website.
Our key competitors
The Hen And Stag Experience
It is the current leader of this market with

Freedom
Opened in 1996 they have a diversified

more than 10 years in this field and

choice of activities and hotels across the

consistently provided quality throughout

UK and Abroad. They have a large

the UK and Europe. They have excellent

database of customers which will make

reviews from customers and a good

them a very good competitor for our

flexible payment plan which will make

business.

them our number one competitor.

Part B

Objectives
Our four most important objectives are:
1. Financially protection of customers. In order to do that we have became a
member of ABTA Association of British Travel Agents. This means we are
committed to follow a strict code of rules that will insure you as a customer to receive
a high standard of services. Package holidays will be automatically protected and

entitled to a full refund if the case and also will provide additional entitlement to legal
protection if any problems on holiday.
2. Great value of product, ensuring our customers receive a valuable package for
their money. Our offer consists in quality hotels, clubs, transfers personal security
and more. All of this is part of a party that has a good value for the money customers
are paying. Hen&Stag Services strives to be the best choice of clients by helping to
ease their party planning burden. Through consistent, predictable professionalism,
our company will ensure the clients to get the most reasonable price on the market.
3. Become a prestigious company. In order to do that we will make sure our
customers will leave us great reviews regarding the staff and packages we offered.
This is very important for the future consumers that we will have.
4. Analyze and understand the needs of customers. Each client has a different
view of what party should look like therefore our team of professionals needs to take
in consideration their opinions and create the best event for them instead of just
trying to sell a random service. It is important to understand each individual.
Type of ownership
The most suitable type of ownership for our business will be a limited trade
company. It has a great number of advantages. An important advantage is the
protection given by limited liability. The profits, losses, debts and obligations belong
only to the company itself. Also the business will continue despite the resignation,
death or bankruptcy of management of management and shareholders. It is easy to
set up and affordable with many benefits. (Clayton, 2008)

Task 2

Pestle Analysis
Political factors, the current laws decided by the politicians require a number of
insurance policies that affect our business like:
Public liability insurance, which provides cover against claims from customers,
suppliers and members of the public injured or adversely affected as a result of the
business' activities .Employers' liability insurance, which is mandatory as soon as a
business employs staff and provides cover against claims from employees for
injuries, disease or death sustained by them in the course of their employment

(Anon, 2016). All this laws have a significant impact for business as they require time
and costs money.
Professional indemnity insurance covers a business against claims for negligence
and breach of confidentiality.
Event cancellation and abandonment insurance, that provides cover for expenses
incurred for arranging an event that has to be cancelled, postponed or abandoned
due to circumstances beyond the planner's control, such as adverse weather
conditions.
Cover for any vehicles used for business purposes, which must include third party
cover as a minimum. (GOV.UK, 2016)
Economic factors
One of the economic factors we need to take in consideration is the quality and
living wages of UK residents. U.K Residents have a high quality of living. According
to a report done by ONS the unemployment rate at the moment is 5.1% which is the
lowest in 10 years time. In the same time the report gives us an average of 496 a
week salary, strong increase from the previous years with a consumer spending
increased from 291086 Million GBP to 292838 Million GBP (Ons.gov.uk, 2016) .In a
country like U.K people afford to spend money therefore our business is influenced
positive by this factors.
Another economic factor is the cost of all the insurances policies described in the
above political factors. It will have a negative impact on our business as the costs to
buy them are high.

Social factors
Socially the number of marriages is a key factor that will affect the business.
According to the Office for National Statistics the number of marriages registered in
England and Wales is at its lowest level since 1895. Marriage rates have also
dropped in Scotland and Northern Ireland. The number of UK weddings to be held
this year is estimated at 270,400, with the long-term picture being one of decline.
Civil partnerships have presented an opportunity for stag and hen party organizers
since they were legalized. Although 6,281 civil partnerships were formed last year,
this figure was a 12% fall compared with the year before. Men make up 57% of all
civil partnerships formed (Ons.gov.uk, 2016). The number of hen and stag parties we
can organize is directly proportional with the number of marriages held every year.
Also according to the ONS, approximately 24% of men and 25% of women are
cohabiting in Great Britain. It is now socially acceptable to be unmarried, cohabiting
or to have a family when not married so it is not imperative for couples to marry.
Therefore they will not use our services which will affect the business (Ons.gov.uk,
2016).

Legal factors
Legally all the revenues where we will offer our services have a premise license to
sell alcohol (Anon, 2016). In UK most of the pubs and clubs usually dont have a 24
hour license therefore they need to close their business sooner which will affect the
time that our customers want to spend partying. Our business will take place in the
territory of United Kingdom therefore we need to consider the favorable reasons to
do business in U.K. It is ranking the 6th place in the world to set and run up a
business as a result of the current legislation, taking an average of 15 days
(Doingbusiness.org, 2016). It is advantageous for us because we get a reduced time
to set up the business.
Another legal factor that affects our business in a positive way is that U.K has the
least number of barriers to entrepreneurship in the world.The OECD noted that
is fifth in the world for Product Market Regulation, has the least barriers to
entrepreneurship in the world and has the third least barriers to trade and investment
in the world (Globalsmes.org, 2016). It has a very stable political environment to do
business as according to Transparency International the level of corruption is the
lowest in the world (e.V., 2016).

Task 3
Launch Event and Budget.
The most important promotion of our business will be the Launch Event of our
company. It is a huge opportunity to present future partners what our ideas are and
how we can work together and benefit from each other. Our guest list includes
reputable wedding and event designers from different companies, specialised
magazines journalists and of course a few managers from our chosen locations
where our business will take place. The guest list we made is based on the people
we need to support and strengthen our company in order to become prestigious.
Starting with a glass of champagne and a buffet on a lovely rented boat on Thames
our directors together with the staff are going to present a short but efficient video
regarding our services. As the party will go on future partners from different wedding
planning agencies have the opportunity to discuss further details like benefits of
working together and establish a professional working relationship. At the end of our
party guests will receive brochures that include our detailed services.
In the same time it is very important to leave a great impression for invited journalists
by answering all their questions as this will reflect in the articles written in magazines

read by future customers. By having this launch event we are getting the opportunity
to discuss with owners of different locations where our services will take place. We
have the chance to strengthen our partnership and present them a profitable
business for both sides. The budget allocated for this event will be 5000 pounds
based on a guest list of 50 people. Our budget will leave us a reserve to be used for
unpredictable events. The highest expenditure will be made on renting the venue.
The following table includes a detailed budget of costs for organising this party.
Price per
Person
1

Food Cost

Number of Guests
12

Entertainment
Cost

50

Total cost of drinks.(for

details refer to additional
table below)

1011.5

Revenue Hire

1255 (4 hr hire, additional hour hire at a cost of 260

per hour)

Services Brochures

Free of charge as is going to be produced by the company from our

internal advertisement budget.

Grand Total

Champagne,
House
Prosecco
Bier
Sauvignon
Blanc (white)
Merlot (red)
Coca cola /
Pepsi 330 ml
Juice
(orange /
apple etc) 1
litre
Still Water
(small) 500 ml
Sparkling
water 1 litre
Grand Total

600

290 for 4 hours(additional hour cost 65 per hour)

Total Cost for

guests

3806.5

Quantity in
bottles
20

Price per
Bottle
18.50

Total Cost

370

40
10

3.80
14.50

152
145

5
40

14.50
1.5

72.5
60

10

60

70

1.6

112

20

100

1011.5

420(6hr/progr
1011.5

1775(6hr/progr

Food cost based on a cost of 12 per person. Prices available at http://www.thamescruises.com/wpcontent/uploads/2014/04/Thames-Cruises-Buffets-and-Finger-Food-MENUS-2014.pdf

2

Entertainement prices available at http://www.thamescruises.com/bar-and-catering/entertainment/

Total costs of drinks based on 50 people. Prices available at http://www.thamescruises.com/wpcontent/uploads/2013/07/Thames-Cruises-BAR-PRICES-2013.pdf

Task 5
Business Information Systems
Strategic Decision
Hen@Stag Services has the vision of expanding in the next 3 years by adding other
event planning such as weddings, receptions, birthdays, anniversaries, graduations,
meetings, conferences and any other event that can be planned. For this decision to
be made we took in consideration internal data that we can use like our quizzes
where we saw what kind of services our customers would like in the future from us.
External data had a major influence, as after researching the current market we saw
there are gaps that could be filled in the wedding industry and other types of events.
Also, there were taken in consideration other arguments like:
-gaps in this market industry
-a high demand of wedding planners
-low offer
This decision directly implies getting knowledge in new areas. For example, to be
able to plan a wedding certain key areas need to be considered. This will consists
from the following: bride's outfit and accessories, clothing and accessory hire,
specialty cake makers, jewelers and jewellery designers, photography and video, car
and chauffeur hire, music and entertainment, florists and of course the most
important new suitable locations for a wedding. Therefore, our strategic decision is a

vast and complicated one and its success will depend of the knowledge of all this
elements.
Tactical decision
In order to achieve our strategically decision we need to come with a tactic based on
a series of internal and external information. Checking the current market and its
trends, we will close deals with different venues where our new services will take
place.
To become a successful wedding planner we will take in consideration the gaps
from its industry. This is important as we will have great benefits from it if we carefully
offer what our competitors dont. Therefore our staff will be trained in this new sector
and attend different wedding fairs in order to understand exactly what people would
like. As well all the planning staff will attend courses and instruction at one of the
largest company that offers training in wedding planning such as The Institute of
Wedding Planner. Getting an extended knowledge will give us an increased
efficiency which will allow us to offer better services to the customers.
The most important tactical decision is the creation of an event planning software.
This tool will allow the client to create their own unique party as at the moment there
is a lack of software that does that. Our customers are giving an opportunity to play
with decoration themes ,listen to themes music, design invitations or thank you cards
and most important virtually walk through chosen locations. Our software brings the
event planning into a new era with cutting edge technology designed to save time
and money. It is very important for our company to expand in new events planning
using this new tool that our competitors dont have it.

Operational decision
At last our front line of staff will make sure the events are planned correctly
according to the clients wishes and the sketch made on our software tool. The event
planner takes small decisions and comes with new improvements all related to the
design of the party. One of these decisions could be floral arrangement by advising
the bride and groom on flowers that would most suit a wedding theme and give
guidance on fragrance and colour they can choose. Customers will see
professionalism and feel they have the dreamed wedding they wished and most
important, very likely, are going to hire our services for other events. This is important
for the goal of the company to be achieved as good reviews from happy clients will
bring more customers in the future and conduct to new customers which lead our
company to become a prestigious event planner.

Bibliography
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