Entrepreneurship and Innovation Assignment 2022

Running Head: Entrepreneurship and Innovation
Entrepreneurship and Innovation
Name of the Student:
Name of the University:
Author’s Note

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EXECUTIVE SUMMARY
In the following report the business plan for a new venture will be discussed. The
chosen organisation for this particular report is Perth Marriott in Australia. The assignment
will focus on the entrepreneurial skills and on the concept of return on investment. The aim
of the report is to illustrate on the entrepreneurship qualities and the four area of innovation
that can be incorporated within the area Perth. The report will further discuss on the venture
description that will state a vivid account of the concept that is conceived with the description
of the venture that is professionally presented in the report. The strategic planning will
discuss on the approach that is identified. The portion of communication strategy will signify
rational demonstrating link between the management and the target audience. It is very
crucial for the new venture to be aware of the competitors in the same market. It is fair to
know the strengths and weaknesses of the rival firm so that the objectives of the firm can be
set accordingly. Further in the section of the financial analysis the details of the Corporate
Venture Capital funding is identified with a logical discussion.

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
Name of the Company- Marriott, Australia.......................................................................3
Company Overview...........................................................................................................3
Venture Description...........................................................................................................3
Management.......................................................................................................................4
Marketing...........................................................................................................................5
Target Market.....................................................................................................................5
Communication strategy....................................................................................................6
Competitor Analysis...........................................................................................................6
Financial Analysis..............................................................................................................6
Risks and challenges..........................................................................................................9
Conclusion................................................................................................................................10
Reference..................................................................................................................................11
Appendix..................................................................................................................................14
SWOT Analysis.......................................................................................................................14
Porters Five Force....................................................................................................................14
..................................................................................................................................................14
Introduction

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The following assignment is based on a venture business plan that is inclined with the
chosen company. The aim of the business plan is to develop a business venture that is
acquired by the company (Burns and Dewhurst 2016). The purpose of the report will clearly
state the particular outcome of being sought in the plan with the client that is the Marriot
Hotel. The venture description will state a vivid account of the concept that is conceived with
the description of the venture that is professionally presented in the report. Further the
management part of the will highlight on the points of legal structure of the Marriot hotel
(Pratheepkantha Hettihewab and Wrightc 2015). The strategic planning will discuss on the
approach that is identified. The portion of communication strategy will signify rational
demonstrating link between the management and the target audience. However in the section
of competitive analysis the different concepts of the competitors are analyzed. Further in the
section of the financial analysis the details of the Corporate Venture Capital funding is
identified with a logical discussion. The key challenges facing the venture are identified,
described and rationale given for how they will be addressed.
Discussion
Name of the Company- Marriott, Australia
Company Overview
The Harbor View Hotel is the heritage that is situated in the heart of the continent in
Sydney which was constructed in the year 1922 and took one year for its completion. The
hotel was funded by Tooth and Company under the clause of 50 year lease. It is a three story
building with its basement with its remnant building and exterior walls (Kam 2016).

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Venture Description
The concept of the business venture is defined as the new concept that is generated
with a plan and expectation that there will be inflow of capital. The concept of a new business
venture with the Marriot hotel can usually form out the needs and services for a product that
is lacking in the market. The emergency of the new venture is planned to set up in Perth,
Australia. The planning can be comprised of new building with the latest technology. The
emergence of the new venture is initiated in Australia because a new venture proves that the
demand of the existing firm was increasing (Singh Corner and Pavlovich 2015). The market
demand of the Marriot hotels in Australia is showing that most of the tourist prefer to stay in
Marriot hotel along with that there are various business meets that place. There is a growing
trend within the people of visiting luxury hotels and Marriot is considered as one of the top
emerging resort and hotel throughout the world.
Management
Legal Structure
One of the most important decision that is taken up by the entrepreneurs is regarding
making a choice for a proper legal structure for their company in Perth. Choosing the most
appropriate legal structure needs to take place in the structuring the management which is
comprised of complexities of their own liabilities and the inherent tax consequences
(Eisenberg 2017). The capital formation will determine the structure that is selected for the
formation of the hotel.
These are few of the following considerations that are the deciding factors of the legal
structure for Marriot Hotel:

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 Recruitment of employees and managers for higher level of management.
 The inclusion of the investors and partners in the new venture.
 The effectiveness of the tax in the business structure
 The exposure of the personal liability.
 The administrative cost that is included in setting up of the business and maintenances
of the same.
Perth Marriot Hotel will be structured as a proprietary limited company within Australia.
A proprietary limited company separate the business legal entity from all aspects. This
particular structure offers the owners the personal prospect of protection of its assets and
liability or debts, in the situation the company’s assets are at a risk in any case of legal action.
The initial administrative cost are considered to be relatively higher than a proprietary limited
company which much more flexible (Kim and Li 2014). It allows the company to enter into
the business which is unrelated for the future course of action. In this case the organisation
should wish to obtain the additional want of capital to expand its business.
Strategic Planning Approach
Strategically there are four types of approach that forms the planning and they are 1.
Top-Down Approach 2. Bottom-Up Approach 3. Mixture of the Top-Down and Bottom-Up
Approaches 4. Team Approach (Albrechts 2013).
For this organisation the best suited strategic planning approach is top down approach
and bottom up approach. In case of top-down approach the organisation will be centralized
such as planning the corporation and the inter department and also the outlying the activities

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that are advised straightaway. In this approach the CEO or the president provides the
guideline and ask its employee for further plan (Papke-Shields and Boyer-Wright 2017).
However, bottom-up approach deals with the top level of management that does not
provide any guideline but ask its employee to submit plans. The plans comprises information
based on major objectives, major opportunities and threats, capital requirements and specific
data on sales/profits/market share sought.
Marketing
Target Market
The target audience is the group of people who have same taste and preference. These
are the people who share the same demographics like race, age and income level. These are
the target audience who make the sub group appeal in marketing and sales (Biddle 2017). The
target audience is the way of dividing the people who are the potential guest like the tourist,
people for business meetings, organizing reception parties and the audience who like to send
their weekends in the luxury report.
Communication strategy
Marriot Hotel is considered as one of the most involved hotel sector in Australia and
segmented in the society. The largest audience is represented in the society to the target
audience who are segmented on a large platform where the advertisement can be displayed on
social media (Wong and Wickham 2015). Before the inauguration of the hotel there will be a
short video clip that will highlight various corner of the hotel and resort.

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Competitor Analysis
The analysis of the competitiveness in the market can facilitate an improvement in the
organization’s business strategy and can enable the hotel to assess the threat from both the
indirect and direct current competitors. The major competitors in the market can be the new
entrance in the same economy. With the help of the SWOT Analysis and PORTER Five
Force Analysis the competitiveness and profitability of the environment can be identified
(Bohari, Hin and Fuad 2017). These include: Competitive Rivalry, Supplier Power, Buyer
Power, Threat of Substitutions and Threat of New Entrants.
Competitive Rivalry
The rival competitor of Perth Marriot can be QT Perth, The Westin Perth, Crown
Towers Perth and Aloft Perth.
Financial Analysis
The corporate venture capital is a form of capital where the corporate funds are
invested directly in the private companies. These funds are arranged and managed by
specialized division of large companies. Hence there are various source to venture the capital
which includes the capital for the purpose of business like equity, venture capital, private
placements, IPO’s, debts, crowd funding, and angel investors (Drover et al, 2017).
According to the financial planning of the new venture in Perth the requirement of
funding is valued of $380000 for phase 1 (in table 1) and $ 6000000 for phase 2 (table 2).
Crowd funding has been chosen as the best vehicle for Phase 1, and angel investors, for Phase
2. The common benefits that can be included in the business venture are:

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 The startup founder is not illegible of giving away the equity share.
 There is no requirement of the collateral record.
 Crowd funding and angel investors allow a wider pool of investors to make small
equity investments in a start-up venture.
Table 1.0, the benefits of crowd funding and angel investors
Crowd funding Angel investors
 There is an advantage of free word
of mouth marketing for theirs
products to the investors.
 It is not comprised of high fee
structure.
 There is less chances of risk
involved.
 There is the presence of flexible
business agreements.
 The dealing with the customer
becomes easy as they are already
linked to investment projects.
 It brings in vast knowledge and
experience to the existing new
venture.
Table 1.1 Phase1- Crowd funding
Phase 1 ( 10 months) Cost
Operation Cost (constitutes the $1,30,000

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administration, legal and accounting
charges)
Construction Development Charges $2,50,000
TOTAL $3,80,000
In the second phase that will be done in table 1.2 can be illustrated by seeing the best funded
by angel investors. Angel investors tends to invest in all stages by the business venture. They
invest in their own capital in the venture that is appealing to them in personally, they provide
expertise and a mentoring relationship which is meddling in the day to day operation of the
new venture.
Table 1.2: Phase 2 – ANGEL INVESTORS
Phase 2 (12 months) Cost
Operational Cost $3,50,000
Transportation development $250000
TOTAL $6,00,000
Return on investment

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Return on Investment
Components required :
Profit earned by the firm
Investment cost
= Percentage of ROI
Risks and challenges
Challenges that can be faced by the new venture are:
 Developing new venture ideas and vision is the first challenge that is faced by the
entrepreneur and it does require a huge amount of creativity. The ability to identify
the challenges is required so that the innovation brings out a solution that the business
can offer (Kitchin 2013).
 Finding the right business location is very crucial for the organisation so that the
requirements can be met. The needs of the new venture can be the requirement of the
market and suppliers.
 The other challenge can originate from the competitors. The necessary challenge will
predict what the competitor in the market is facing and in order to make it more
creative the competitive advantage is on gaining revenue.
The risk that are associated with the new venture are:

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 The first risk that can be associated with the new venture is insufficient funds. The
business is entitled to be reluctant that can lead the money towards the business and
this can eventually lose a track of expenses (Hahne, Moennig and Samol 2016).
 In case of illness the sole trader is starting a business is risky because the entire
operation of the business is dependent on the owner of the property.
 In some case the entrepreneur may not be privileged to arrange the working to get the
startup funding from investors and hence the investment has to be done all by
themselves which can be a factor of risk if the business fails.
Conclusion
Hence it can be concluded the purpose of the business plan is comprised of the
planning of the business in Perth. It is the entrepreneurial skill which is very crucial part for
the leader or the manager to adopt so that proper functioning of the management can be
operated. The chosen organisation for this particular report is Perth Marriott in Australia and
the emerging new venture is planned accordingly. The aim of the report is to illustrate on the
entrepreneurship qualities and the four area of innovation that can be incorporated within the
area of Perth. Hence the venture description is created in the ground of the formation of the
hotel. The management system of the business holds the responsibility of clearing the rational
legal structure. Along with the Strategic planning approach identified and discussed explains
the two different approaches that is best suited for the emerging new venture in the market.
On the other hand, it is very crucial for the new venture to be aware of the competitors in the
same market. It is fair to know the strengths and weaknesses of the rival firm so that the
objectives of the firm can be set accordingly. Hence lastly the financial analysis assist in
analyzing the different methods of investment that can best suit the firm.

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Reference
Albrechts, L., 2013. Reframing strategic spatial planning by using a coproduction
perspective. Planning theory, 12(1), pp.46-63.
Biddle, I., 2017. Target Marketing: Gaining customer details to maximise marketing
strategies. Busidate, 25(4), p.10.
Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of halal food industry in
Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and
Space, 9(1).
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Drover, W., Busenitz, L., Matusik, S., Townsend, D., Anglin, A. and Dushnitsky, G., 2017. A
review and road map of entrepreneurial equity financing research: venture capital,
corporate venture capital, angel investment, crowdfunding, and accelerators. Journal
of Management, 43(6), pp.1820-1853.
Eisenberg, M.A., 2017. Legal models of management structure in the modern corporation:
Officers, directors, and accountants. In Corporate Governance (pp. 103-167). Gower.
Hahne, K., Moennig, G. and Samol, A., 2016. Atrial fibrillation and silent stroke: links, risks,
and challenges. Vascular health and risk management, 12, p.65.
Kam, S., 2016. Australia. In HANDBOOK OF TERRORISM IN THE ASIA-PACIFIC (pp.
581-604).
Kim, P.H. and Li, M., 2014. Seeking assurances when taking action: Legal systems, social
trust, and starting businesses in emerging economies. Organization Studies, 35(3),
pp.359-391.

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Kitchin, R., 2013. Big data and human geography: Opportunities, challenges and
risks. Dialogues in human geography, 3(3), pp.262-267.
Papke-Shields, K.E. and Boyer-Wright, K.M., 2017. Strategic planning characteristics
applied to project management. International Journal of Project Management, 35(2),
pp.169-179.
Pratheepkantha, P., Hettihewab, S. and Wrightc, C.S., 2015. Effects of Board Structure on
Firm Performance: A Comparison between Australia and Sri Lanka. Proceedings of
4th Global Business and Finance Research. Marriott Hotel, Melbourne, Australia
ISBN, pp.978-1.
Singh, S., Corner, P.D. and Pavlovich, K., 2015. Failed, not finished: A narrative approach to
understanding venture failure stigmatization. Journal of Business Venturing, 30(1),
pp.150-166.
Wong, T. and Wickham, M., 2015. An examination of Marriott's entry into the Chinese
hospitality industry: A Brand Equity perspective. Tourism Management, 48, pp.439-
454.

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Appendix
SWOT Analysis
Porters Five Force