Entrepreneurship and Business Development: A Case Study of Beauty Organic Hub in London

This report focuses on the entrepreneurship and business development strategies used by Beauty Organic Hub in London. It includes an outline of the new venture concept, competitive and STP analysis, SWOT and PESTLE analysis, and marketing strategies for success. The report also discusses quantitative and qualitative planning tools that entrepreneurs could use to assess and mitigate their risks, common mistakes that first-time entrepreneurs make, and the business model and new venture will work.

ENTERPRENEURSHIP
AND BUSINESS
DEVELOPMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Outline the new venture concept ................................................................................................3
Conduct and competitive and STP analysis to evaluate the opportunity gap.............................4
Business model and new venture will work................................................................................5
Analysing strategies should entrepreneurs follow to find success..............................................8
Explaining quantitative and qualitative planning tools that entrepreneurs could use to assess
and mitigate their risks..............................................................................................................10
What are the common mistakes that first time entrepreneurs make? .......................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business plan is consists of written document which comprise of core business activities
and objectives that help to meet the defined aim. The entire project helps to shed a light upon
different tools and techniques used to meet the business plan that assist to acquire new business
skills. The new business plan is related to opening an organic beauty store in London to meet the
requirement of females. For that the report will outline the new venture and also conduct
competitive and STP analysis that help to evaluate the opportunity gap. In addition to this, study
also use concept to identify how new venture will work and describe marketing strategies should
entrepreneur use. Along with this, it describes the qualitative and quantitative planning tools that
an entrepreneur could use to mitigate their risk.
Outline the new venture concept
The new venture concept is related to new organic beauty store in London where
company offers all type of beauty product to their customers so that effective results are
generated in term of financial performance. The name of a company is ‘Beauty Organic Hub’
whose main purpose is to meet the demand of females by offering customized beauty products.
In this, company will develop its store by analyzing the need of customers so that effective
product with different range of prices are offered to their customers (Usry Abdullah, 2019). In
addition to this, the relationship between innovation and entrepreneurship is such that innovation
is all about creating something new whereas entrepreneurship determine the opportunities in
innovation and then create opportunity so that business can use the same to improve the brand
image.
Moreover, entrepreneurship is all about applying innovation to bring the ideas into reality
that create an opportunity to company so that the brand image of a firm can established. Also, it
has been identified that through innovation, company keep move ahead and derive better results
in term of customer satisfaction and financial performance. With the strong relationship between
innovation and entrepreneurship, company is able to gain a high competitive advantage and
brings sustainability in its business. That is why, companies and quoted business need to focus
upon innovation that assists to create a better outcome.
Vision: To be a first choice and preferred supplier of top quality of beauty product
Mission: To offer the best variety of product to their customers and satisfy the need as well.

Rationale: The reason of choosing this business over other is such that people are more aware
with regard to harmful effect of artificial ingredients used in beauty product. This in turn affect
their skin and that is why, people shift towards herbal beauty products. In 2020, the revenue
gains from such product reflected that it was amounted to around 221 million British pound
(Natural and organic cosmetics in the United Kingdom (UK) - Statistics & Facts, 2020). Almost
all the top company are also focused upon this such as Lush also sell green products to their
customer,
Conduct and competitive and STP analysis to evaluate the opportunity gap
Competitive advantage:
Particulars Beauty Organic Hub O4U Organic beauty
shop
London Organic
Beauty
Product It offer customized
organic beauty product
which include
moisturizer, Sun cream,
Facepower, Primer, Liner
and many more.
It offer online organic
beauty product to their
customer such that skin
care cream, makeup
removal, cream and
powder.
It uses effective face
care product at online
mode which includes
primer, foundation,
Moisture creams, tan
removing cream and
other make-up item
completely include
organic ingredients.
Price The price of the product
should be cost effective
and that is why, it uses
low price product
strategy in which
company offer product at
low rate initially
(Bismala, Andriany and
Siregar, 2020).
It uses penetration
pricing strategy that
helps a company to
attract customers
towards it. It is actually
involve low price of
product so that
competitive advantage
gain.
It uses competitive
pricing strategy in
which the price of
product changes after
identify the pricing
strategy of a rivals.
Promotion It uses only modern form
of promotional tool. In
this, social media
marketing is used where
Facebook, Twitter used.
Also, the company will
use influencer that help
to attract customers.
It uses both traditional
and modern form of
marketing where
company let people
know about new offers
and discount. This
further involves use of
newspaper, magazine
and different tools.
It uses only modern
form of marketing that
involves digital
marketing tool and SEO
that help to grab
attention of many
customers.
USP It’s customized product
is considered as a USP of
a company in which it
The company’s USP is
its discount strategy that
help to improve the
The USP of Beauty
Organic Hub is to offer
high quality of product

keep satisfy the need of
customers by offering the
range of product.
overall strategy (Turner
and Endres, 2017).
Along with this,
company’s pricing
strategy is another USP
that help to attract.
in its beauty product so
that it create a better
outcome and draw
attention of customers.
 Segmentation: Company will use demographic segmentation in which all the
characteristics considered in which on the basis of gender where female are targeted
whose age is fall under 25 to 50. All medium class people also targeted.
 Targeting: Mass marketing as a target strategy will be used in order to attract the range
of customers.
 Positioning: It offer high class beauty product to their customer with affordable price
assist company to improve the overall brand image (Kurnianto and et.al., 2019).
Business model and new venture will work
SWOT analysis
Strength:
 Company offer high quality of product with an aim to increase the brand image.
 It will have a strong customer base because it offers discount and different promotional
strategy.
 Beauty organic Hub will offer customized product that help to attract customer.
Weakness:
 The company does not involve within innovation process and this might affect the brand
image.
 Company require enough resources and time to sustain the brand image.
Opportunity:
 Beauty Organic Hub will provide effective product and that is why, it has an opportunity
to invest into emerging market (Suharlim, H. and Kristianti, 2018).
 The company can invest into online mode of business so that effective results can be
gain.
 It can also invest into new stores that help to increase the number of customers to visit
shops.
Threats:

 High competition in the market is considered regarding offering organic product is
considered one of the biggest threat of a company.
 Customer might also choose conventional over responsible product that help to improve
the overall product brand image. Changes in the political and economic stability of a country affect the entire business in
negative manner and this in turn affect performance in negative manner.
PESTLE analysis Political factor: Due to strict guideline by government also assist company to improve
the overall brand image. However, the changes in tax rate also raise the product price that
affect business performance because customers are not ready to accept the product and
cause negative impact. Economic Factor: It deal with economic factor in which recession, inflation rates are
considered some common factor that affect the business performance (Blackwell, 2017).
UK has a stable economy and after pandemic, people become more health conscious and
this in turn assist to encourage business to invest in organic beauty product. Social factor: It is deal with perception of people towards a brand and it has been
analyzed that their views keep changes and this might affect the results in negative
manner. That is why, there is a need to conduct market research so that company like
Beauty Organic Hub is able to meet the demand of customers. Technological factor: Advance technology plays an important role in the company’s
success and that is why, there is a need to offer product though online mode. This in turn
assist to attract the customer and smoothen the business operations. Along with this,
company should also offer product by considering the data privacy act so that it does not
cause any negative impact. Legal factor: It is deal with all the laws and regulation that help in smooth functioning
such that employment act and equal opportunity act that helps to provide effective
working environment. Also, company must follow Drug and Cosmetic Act with Fair
Packaging and Labelling Act that help to provide better economic product (Kusuma,
Syah and Indradewa, 2021).

 Environment Factor: It is all about offering product that do not cause any negative
impact over environment and that is why, Sustainability act needs to be complied by the
company so that it will contribute towards environment.
Business canvas model
Key partner
 Content
contribu
tors
 Partners
hip
 Extende
d
partners
Key activities
 Experien
ce of
custome
rs
 Advertis
ing
selling
 Grow
local
commun
ities
 Manage
daily
operatio
ns
Value
Proposition
 Local
business
in which
traffic
increases,
targeted
advertise
ment
 Users
that help
to
discover
new
place
 By
engaging
in fun
social
interactio
n
Customer
relationship
 Brand
reputation
 dedicated
sales
 Communic
ation
Customer
segments
 Loca
l
busin
ess
 User
s
Key resources
 Employe
es
 High
quality
content
 brand
reputatio
n
 Partners
hip
Channels
 Website
 App
channel
 Social
media
pages
Cost structure
 Cost of revenue
 Sales and marketing
 Product development

Analysing strategies should entrepreneurs follow to find success
This is important to use proper marketing strategy in order to introduce the product in the
market, growing a business is not easy it needs variable ides related to the strategies. There are
several strategies which are need to follow for success such as:
Social media- This is the most important strategy which are need to identify for
promoting the product as a start-up, nowadays people are more depend on the social media so
that they are active on social media in order to check regular updates reading the new products.
There are so many women and girls are stuck at social media for seeing the ads, blogs, post
related to the beauty products (Aldrich, 2017). Also, it is important to create
video tutorial related to make-up and how to use the organic beauty products.
Developing a diverse set of skills- For an entrepreneur it is very necessary to adopt set
of skills which can enhance and develop the related skills. Beauty Organic Hub offers various
kind of product so the employees should know about the weakness and strength of the company.
Then they can attract the customer accordingly. All the products offered by the company is
related to customize which can help all the women and men's skin care products because people
are more conscious about their health.
Study the competition- There are various competition in the market but it is important to
adopt social media strategies which can attract more and more customers. The competition has
power to copy the strategy but organization have to provide all the products which can offer the
product at good rate (Ács, Szerb and Lloyd, 2017).
Target the specific market- The target market for the organization is high class women
and men who are looking for good skin. In UK there are many companies which are offer
organic beauty product. But this company offers the product on the basis of customer's opinion
and ask the related questions such as about there skin type, complexion etc. These all question
are attracted the customer for thinking about the special attention given by organization.
Evaluate the different strategies that are used by entrepreneurial organizations
Start up phase- At the time of start-up there are several strategies which are need to use
at the initial stage related to concept and research. Proper research about the market and
product is very important to identify because it helps to gain proper knowledge about the product
(Landström, 2020).

During periods of growth- When the product launch in the market it is important to
identify the target market and change the strategy accordingly. For example, if the organization
feels that there is some point where the product is lack at that time they will change the strategy
and promote the product on the social media.
Consolidation- At this stage it will increase the market share on the basis of innovation
in the product such as launch the product in the online sites. So that it can help to attract more
and more customers and share the feedback of existing customer (Kozubíková and Balcerzak,
2017).
Under performance- To complete all the expectation are not necessary because there is
some point where the growth are decline. It needs to check the availability of employees and
how they work on it while attend the customer.
Marketing strategy on the basis of 4P's
Product- The company offers all the products such as skin care, hair care, organic
cosmetics, night cream, sunscreen etc.
Price- The strategy chosen by the firm is price penetration in order to attract the customer
and it helps to stand in the competitive market.
Place- It has offline store in UK as well as online selling it helps to increase the reach of
the product (Cusin and Maymo, 2019).
Promotion- The promotion strategy used by the company is online with the help of social
media and offline techniques will be used as roadside posters etc.
Financial plan

Explaining quantitative and qualitative planning tools that entrepreneurs could use to assess and
mitigate their risks
Qualitative methods of risk assessment-
Competition- There are very high competition in the beauty products and it is very
important to offer unique customize product in order to attract the customer. Also, it is also
possible that people can copy the idea. To mitigate this risk organization will offer only
customize product in a wide range.
Financial constraints- At the time of start-up there are risk faced by the company which
is related to the financial constraints because it needs high investment but that is why they collect
the amount from the bank because it has low rate of interest (Suliswiyadi, Kurnia and Nugroho,
2020).
Cyber security risk- It refers to the risk where anyone can hack the data regarding the
personal information as well as it impact bad on the reputation of the company. Also, hacker can
misuse the data including the all type of data. To mitigate this risk organization use the security
so that no one can hack the data.
Economic risk- The economy has changed accordingly in order to change in policies and
regulation sometimes in laws. Because of the changing in laws affect the strategy and heavy
losses due to fluctuation in the market. In order to mitigate this risk organization help the
government support that can help in order to change the strategies.

Reputational risk- Good reputation of the organization is very important and the risk is
related to the people who are sharing their bad comment on the social it affects the brand image
of the organization. That is why organization prepare all the post and stories which included
blogs that attract the customer.
Quantitative method of risk assessment-
This risk is related to numerical value of the company and it is very important to
analysing the affect of identifying the risk of the overall business projects.
Break-even point- At the point of sometime where company's revenue and expenses are
equal in the specific accounting period. It is calculated on the basis of dividing the fixed cost for
the production and minus with s the variable cost of product. It is the level of production on
which production cost are just equal to the revenue.
Better business decision- All the related decision are based on the desirable data, it
provides critical decision for quantitative risk analysis the provide for get the objective
information. It helps in determining all the related factors on the basis of decision making
process.
What are the common mistakes that first time entrepreneurs make?
There are some mistakes which are faced by the representment such as follows:
Picking the wrong co-founder- For the choosing the right partner is very important
because it divides all the responsibilities and decision are also taken by both in all aspects. There
are different skills that of a person and work accordingly so pick the person who are already used
to with similarity of skills (Smith, 2019).
Trying to make product for everyone- It is not possible to make product for everyone,
it lost the specificness of the product and customer confuse about the speciality of the
organization. That is why Beauty Organic Hub focus on the women organic beauty products and
only offers skin care products for all categories.
Not learning every side of the business- Every aspect of business is important such as
marketing, finance, operation and production etc. All the factors are related to the company is
need to focus for considering the aspect and take the decision accordingly.
Not hiring the right fit- At the point of hiring organization should hire those employees
who are good at bringing the attention and influence the customer in a positive-way. Manager of

the company should maintain the good relation with the employees because toxic relation affect
the productivity of the business (Sekliuckiene, Vaitkiene and Vainauskiene, 2018).
CONCLUSION
It has been concluded that it is necessary to use different marketing strategies while start-
up the business. This report is based on Organic Beauty Hub which is newly introduced in the
market for offered customize beauty product in UK. The study covered all the related concept of
new venture and explored the relationship between entrepreneurship and innovation. Also,
discuss the STP analysis for evaluating the opportunity gaping market. Moreover, used the
relevant framework related to the business model. Also, explained the different marketing
strategies for particular situations. Further, used the qualitative and quantitative planning tools
for mitigate the risk. Lastly, identified the common mistake which are made by entrepreneur.

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Online
Natural and organic cosmetics in the United Kingdom (UK) - Statistics & Facts. 2020. [Online].
Available through: <https://www.statista.com/topics/4708/natural-and-organic-cosmetics-
in-the-united-kingdom-uk/>.