Business Development Proposal In Smart Building

Business Development
Proposal

Executive summary
In this business proposal it has been described about a business that is based on building
smart homes. Technology has significant impact on operations or activities of each and every
business, no matter the size of the organisation. This business will target all people regardless on
basis of their age, gender or demographic segment and firm has targeted hotel that is having
more than 50 rooms. The smart buildings are considered as highly preferred approach to
conserve the energy in construction activities. The market for smart homes is increasing every
year with more and more people getting aware of the smart technologies. At initial level, the
concept followed in this is moderate and then it will be high with growth and development in
business. Qualitative analysis was conducted to evaluate the feasibility of smart building and for
this several sustainability reports, journals and articles were analysed and reviewed.
Further, different secondary sources it has been analysed that certain features of smart
buildings are found to be attractive to almost all types of buildings. Moreover, there are several
competitors which were identified are V&C contractors, Schneider, Miema and Vassallo.
Company has innovative and advanced ideas to make buildings more smart and energy efficient.
The management and staff members of the company have good experience which can help them
to develop more effective and qualitative projects. But on the contrary, at present, company is
providing same services there is not innovation or differentiation. Further, in construction
industry, the entry cost is too high which is one of the benefit for the organisations as they did
not face the threat of competition. There are some success factors is discussed as well which
show how business will operate in the market of Malta. In addition to it, segmentation, targeting
and positioning of business has been explained in report.
Construction industry does not suffer from the threats of substitution in terms of any
product. The buildings cannot be replaced by any other product and the bargains power is also
limited to 10 percent. Moreover, it has also been analysed that project will start with an initial
investment of £50000. The cash flow will continue as 25% of amount will be received as
advance from the clients and it is estimated to have 16% return on investment within one year.
Vodafone telecommunication, Green Homes Limited and construction company are the key
partners in the construction industry.

Table of Contents
Executive summary.........................................................................................................................2
Chapter 1..........................................................................................................................................1
Introduction..................................................................................................................................1
1.1 Background............................................................................................................................1
1.3 Rationale for business idea....................................................................................................1
1.5 Methodology and sources of information..............................................................................2
1.6 Business proposal structure...................................................................................................2
1.8 Timescale...............................................................................................................................2
1.9 Structure of report..................................................................................................................2
Chapter 2..........................................................................................................................................4
Business concept..............................................................................................................................4
2.1 Segmentation, targeting and positioning...............................................................................4
2.1.1 Geographical segmentation................................................................................................4
2.1.2 Demographic segmentation................................................................................................4
2.2 Special features......................................................................................................................5
2.3 Critical success factors..........................................................................................................5
Chapter 3..........................................................................................................................................7
Feasibility research..........................................................................................................................7
3.1 Product feasibility..................................................................................................................7
3.1.1 Data collection..........................................................................................................8
3.1.2 Results....................................................................................................................10
3.2 Industry feasibility...............................................................................................................10
3.2.1 Competitors............................................................................................................11
3.2.2 Industry competitors...............................................................................................12
3.2.3 Entry cost................................................................................................................13
3.2.4 Entry barriers..........................................................................................................13
3.2.5 Substitutes...............................................................................................................14
3.2.6 Bargain power.........................................................................................................14
3.3 Market feasibility.................................................................................................................15

3.4 Organisational feasibility....................................................................................................16
3.5 Financial feasibility.............................................................................................................16
3.6 Ambition Vs Ability............................................................................................................17
Chapter 4........................................................................................................................................19
Business Model..............................................................................................................................19
4.1 Core strategy........................................................................................................................19
4.1.1 Differentiation basis and identifying competitive advantage.................................19
4.1.2 Sales and marketing................................................................................................19
4.1.3 Services...................................................................................................................19
4.1.4 Competitive positioning and Porter Generic strategy.............................................20
4.2 Competitive advantage and self evaluation.........................................................................21
4.3 Mission................................................................................................................................21
4.4 Core competencies and resource requirements....................................................................21
4.5 Ways to connect customers groups and partnership network..............................................21
4.6 Deliverable values to customers..........................................................................................22
4.7 Improvements in business model.........................................................................................22
Chapter 5........................................................................................................................................23
Business plan.................................................................................................................................23
5.1 Executive summary.............................................................................................................23
5.2 Industry, company and product...............................................................................................26
5.3 The product / service concept..................................................................................................27
5.4 Key success factors..................................................................................................................28
5.5 Market, market analysis and research......................................................................................28
5.6 COST / VOLUME / PROFIT ANALYSIS.............................................................................30
5.10 Marketing plan.......................................................................................................................30
5.10.2 Customer relationship management...................................................................................31
5.12. Management Team...............................................................................................................31
5.13 Operation plan...................................................................................................................32
5.13.1 Business location..................................................................................................32
5.13.2 Supply chain management....................................................................................32
5.13.3 Operating cycle.....................................................................................................33

5.13.4 Facilities and equipment.......................................................................................33
5.14 Sustainability.....................................................................................................................33
5.14.1 Critical success factors.........................................................................................33
5.14.2 Risk assessment....................................................................................................33
5.14.3 Future sustainability issues...................................................................................34
5.16 Business controls...................................................................................................................35
5.17 Financial projections..............................................................................................................35
5.18 Viability.................................................................................................................................37
Research reflection report..............................................................................................................38
REFERENCES..............................................................................................................................43

Chapter 1
Introduction
1.1 Background
With frequent technological advancement it is necessary for country to improve their
infrastructure so that economic growth can be boosted. Also, it has become essential to maintain
sustainability in building homes so that green atmosphere can be developed. In recent times,
there has been transformation in construction sector. Now, technology is been used by
companies in every industry. This has resulted in rise in competition due to emerging of new
business concepts and ideas. Moreover, companies are finding out new market to expand their
operations.
Technology has significant impact on operations or activities of each and every business,
no matter the size of the organisation (Hardin and McCool, 2015). Technology has tangible as
well as intangible benefits that will assist the organisation in making money and produce the
outcomes that are demanded by customers. Technological infrastructure influences the
efficiency, culture and relationships of an organisation or business. The development in
technology had a great impact on the growth of business as it helped in bringing and
implementing new & unique ideas.
1.3 Rationale for business idea
Malta is tourist place where there is large number of hotels. The ease of doing business is
also easy with few laws and legislation to be followed.
The business idea is to convert and built smart homes in Malta. The company emphasis on
converting hotels, lounge, resort, etc. into smart homes by installing advance technological
devices (Adams and et.al., 2017). Besides this, goal of business is to provide smart homes to
tourist and local people. This will enable in improving the infrastructure in Malta.
Mission – To become recognized and reputed company in Malta for developing smart homes.
to increase life span of building by installing technology
to become a leader in maintaining sustainability in smart home industry
Vision- to provide highly advance smart homes and to make living beautiful
Aims
 To convert traditional buildings and hotels into smart homes.
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 To create a business that provides solution to use and implement technology in homes
 Making a difference in building homes and hotels in Malta.
1.5 Methodology and sources of information
The data is been collected through secondary method. In this books, articles, etc. are
searched and analyzed (Javed and et.al., 2016. ). This has helped in gathering relevant data and
information regarding previous ventures, number of buildings constructed, market condition, etc.
here, data is been gathered through energy efficiency, statistical information, etc.
1.6 Business proposal structure
The overall report is divided into five chapters that are as follows :-
Description of business concept – In this chapter it will be described about what business idea
is and why it has been chosen. Also, it will be discussed about types of service provided by
business.
Feasibility research – this chapter relates to feasibility of business idea and concept. It means
that what are various aspects related to market, services, industry, financial feasibility, etc. It will
give insight about what
Development of business model – In this chapter it is described about competitive advantage a
business idea and how it has lead to development of model.
The business plan – this chapter describes overall business function and how operations will be
done in 5 years. Moreover, what are the factor which makes this business successful. Also, what
are the risks and challenges involved in it. The chapter also contains detail about goals and
objectives of business.
1.8 Timescale
After report is been developed the business operations can be started. The report provides
brief information about business concept and plan. Also, it is important that business should
commence as soon as possible. Therefore, in this business operations are planned to start within
3 months.
1.9 Structure of report
In present report, there will be five chapters and each one will be based provide a brief
description (Ok and et.al., 2015). The chapters are as follows :-
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Introduction – It consists of introduction of business that include background of industry and
brief description of Green Homes limited. Also, it will include mission and vision of business
along with aims. The rationale and scope of business is also defined in it.
Business opportunity – In this chapter there will be entire information what are the features of
Green Homes limited products and services. Moreover, how different factors will impact on
growth and development of business in industry.
Feasibility research- This is the third chapter which contain secondary data and information
about industry and product feasibility, market and financial feasibility. By this it will be easy to
analyse business idea and its growth.
Business model – The fourth chapter contains theories and models related to business. In this
strategy and plans of differentiated factors of product is included.
Business plan – The chapter contains all information from executive summary to business
opportunity. Furthermore, the information related to HR, financial analysis, marketing, etc. are
included in chapter as well.
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Chapter 2
Business concept
2.1 Segmentation, targeting and positioning
As stated by (Jia and et.al., 2018) the main purpose of business is to identify targeted
market so that their needs can be fulfilled. Moreover, it enables business to focus on specific
people and they are able to market products in effective way.
2.1.1 Geographical segmentation
It refers to segmenting on basis of geography of country. Here, the business will be
started in the capital city of Malta that is Valletta. It is a major tourist destination for people
where large number of hotels and buildings exists. In addition to it, company will expand its
services in St. Paul’s Bay which is the largest town. These both places are best for company for
initial start up. In addition to it, there are many hotels and buildings as well.
In future business will focus on other towns and city of Malta. Beside this, services will
be provided in neighbouring countries as well such as Italy and Tunisia. By this it will be easy
for people to make convert homes into smart ones. With this it there will be other potential areas
open for company to expand.
2.1.2 Demographic segmentation
The services of company offer people to use technology and modify their homes. It also
provides consultancy to people who are willing to implement technology (Vanus and et.al.,
2016). Thus, services are available for those who want to build smart homes.
Demographic segmentation refers to segment market on basis of criteria that is age,
gender, sex, etc. Thus, this business will target all people regardless on basis of their age, gender,
etc. Here, services will be offered to all those who want to convert traditional into smart homes.
Targeting
After segmentation, businesses have to determine targeted people. Here, company will
target those people who are high class. It means people whose income level is high and they are
easily able to built smart homes. Furthermore, firm will target hotel that is having more than 50
rooms.
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Positioning
It refers to positioning of product and services which means that how its identity and brand
image will be developed in the mind of consumer. For this company will position it by showing
3 –D model of smart homes. Alongside it, people mind set will be developed by promoting
services.
2.2 Special features
There are some special features of services of Green Homes limited which are described below :-
Latest technological devices
The company will provide latest technological devices to customers. It will help in
building of smart homes. Also, converting old homes into smart one will help in generating
value.
Smart homes solutions-
The business will provide smart solution to convert buildings into smart homes. The
solutions are installing software, etc.
2.3 Critical success factors
There are some success factors of business which is described below :
 The consultancy will support people to implement technological tools and devices in their
homes. This will help in conserving energy and maintaining sustainability.
 Building smart homes will assist contractors and engineers to adopt a new concept and
model of infrastructure. It will attract people to built smart homes. In that hotels and
resorts that are yet to be constructed can also be developed as smart hotels.
 By providing consultancy services will attract in transforming homes and building into
smart ones. So, it will help in generating awareness among them to get an idea about new
concept.
 The neighbouring country such as Italy is also a tourist destination. So, in that nation as
well company can expand its operations.
 By taking people feedback after installation of technology company can make changes or
improvements in their services and products (Vanus and et.al., 2016). It will help them to
retain customer and built a strong customer base in Malta.
 The business can earn commission from by collaborating with construction companies.
Hence, extra income can be generated from it as well.
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Therefore, these are the success factors through which Green Homes limited can be
successful in Malta. It will allow them to become a leader in smart home industry. Also, firm can
maximise their revenue. They can also develop relationship with hotel chain which will allow
them to expand operations in other countries. In such a competitive business environment it has
been difficult for companies to survive. There are many businesses expanding in other countries
due to which competition level as risen. The main purpose of this business is to convert
commercial and residential buildings into smart ones by installing devices and technology (Kiel
and et.al., 2017). The devices and appliances will be installed in homes as well. It will also offer
consultancy and services to home owners and helping for best automation system. By this energy
consumption will reduce which will support in sustainability of building. It will be easy for
business to provide services to build smart homes.
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Chapter 3
Feasibility research
3.1 Product feasibility
The market for smart homes is increasing every year with more and more people getting
aware of the smart technologies. The smart building appliances provide smart household utility
and monitoring devices The smart technology in buildings is not only limited to commercial
buildings instead it is also possible to implement in residential, manufacturing, public
infrastructures and all other types of building. The key drivers which encourages the use of smart
technologies is advanced technologies, easy availability of support services and smart household
applications (Madani, Daim and Weng, 2017). The increasing role of government towards
sustainability, increased awareness and anticipation of the electricity cost are also making the
services popular among people. However limited training and low penetration of the service
providers are barriers for the services.
Similarly, in order to become market leader it is important to use technology. There are
organisations which is offering services via internet. The use of technology has ease business
operations. Green Homes limited has come up with same concept in which they offer service of
installing application and software in buildings. This is done to bring sustainability in
construction sector and efficient utilisation of energy. Apart from it, any issues related to
buildings are been solved.
In addition to it, Malta is a developing country where large number of tourist visit every
year. Also, infrastructure of country is developed and it is connected to other parts of world as
well. With technological development the government has supported by reducing tax rate. Apart
from it, local people are using smart phones (Ness and et.al., 2015). The telecommunication
companies having strengthened their network and improved infrastructure.
These changes has enabled in using technology in building smart homes. They are able to
monitor homes and reduce use of energy consumption. The concept followed in this is moderate
at initial level and then it will be high with growth and development in business.
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(Source: Philpott., 2017)
3.1.1 Data collection
To evaluate the feasibility of the smart buildings a qualitative analysis was conducted.
For this purpose various sustainability reports, journals and articles were analysed and reviewed.
The smart buildings can affect the quality of life of service users (Javed and et.al., 2016). This
can be understood by analysis of following example of a particular day in smart building.
8
Illustration 1: Drivers promoting smart buildings

(Source: Gilliam., 2018)
From the analysis of different secondary sources it has been analysed that certain features
of smart buildings are found to be attractive to almost all types of buildings. For example the
switching control of lights by automatic detection of an individual, light dimming through
daylight harvesting and temperature adjustments depending upon the number of users in any
room. Though these attributes are mostly preferred by the hotels in Malta but some economically
capable groups are also influenced by these types of features in their house or commercial
buildings. Under the smart city development plan for Malta various construction projects are
adopting integrated building energy management system (BEMS) (Ahvenniemi and et.al., 2017).
The aim of these project is to develop buildings which are highly efficient in terms of energy
consumption. Several non government organisations such as Intelligent Energy Management
Agency of Malta (Miema) is also undertaking multiple projects which promotes the use of
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renewable energy sources. The smart buildings are considered as highly preferred approach to
conserve the energy in construction activities. The agency has been planning to enhance its
projects in Valletta so that environmental issues can be addressed.
3.1.2 Results
From the collected data it has been found that among common public still there is less
awareness regarding energy conservation and smart buildings but there are lot of changes going
on in construction procedures. It has been analysed that small initiatives such as use of solar
panels on roof tops or sensor based lights for the electricity conservation is becoming common
trend among people. The trend is not only limited to hotels or commercial buildings but people
are also incorporating these advancements in the development of their houses or offices. Though
in terms of energy and cost saving smart buildings services can be considered as efficient but
most of the people in Malta are still less interested in using these services. The first concern is
related to awareness.
People in targeted destination believes that these services are for enhancing the interior
only. However, more than interior these services are for energy efficiency (Ok and et.al., 2015).
In addition, people also assumes that implementation of such services will not bring any
significant change to the electricity or energy consumption. The agencies which are working for
promoting smart building projects are trying to increase awareness among people so that these
cost and environment effective models can be expanded all over the city. In addition to the ease
and efficiency of services it has been also analysed that people also prefer smart buildings from
the security concerns.
The use of technology allow service providers to have continuous monitoring and CCTV
surveillance of the building. Thus, even though people may not desire to incorporate advance
lighting systems but there is need to provide such features in the building. From this analysis it
can be concluded that organisation will have great opportunities to get success in the market.
However, for this purpose it need to effectively identify the potential customers and their needs.
It will be helpful in elimination of the potential barriers.
3.2 Industry feasibility
Green Homes Limited is part of construction industry which is undergoing into rapid
improvements and advancements in terms of sustainability. There has been high demand and
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necessity that construction practices must be made more energy efficient and sustainable so that
energy consumption of the buildings and construction processes (Jia and et.al., 2018). Various
technologies such as remote monitoring, adaptive energy systems, energy efficiency measures,
assistive and network technologies are implemented in significant number of buildings for
security purpose as well as for improving the quality of life.
Increasing cost and needs of electricity, global warming has made it essential for the
construction industry to provide building solutions so that energy wastages can be reduced and
electricity needs can be fulfilled. Various non government organisations as well as regulatory
authorities are also emphasising on making legislations so that energy efficiency of buildings can
be controlled. Thus, to cope up with the environmental changes constructional improvements are
mandatory so that both sustainability and cost aspects can be improved. There is also change in
some trends which allow industry to develop new products and services. Furthermore, in Malta
there is no such business concept that exists. Only one or two companies are operating which is
engaged in smart homes industry. Besides this, there is much feasibility for company to become
successful in Malta.
3.2.1 Competitors
The Green Homes Limited face competition from private as well as public sector
organisation. Among private companies Vassallo group is the biggest competitive threat for the
organisation. Vassallo group is well known construction organisation in Malta and has very high
brand value. On the basis of huge brand value and contacts the company is capable to approach
more potential clients. In addition to this it also has more resources in comparison to Green
Homes Limitation. Thus, Vassallo can be considered as the biggest competitor for the
organisation in terms of market capture as well as service quality.
Apart from this several other small organisations such as V&C contractors, Schneider
also have potential to deliver more effective smart building solutions (Turgut, Aydin and Sertbas,
2016). With the increasing impact of environment needs and regulations Miema is also
constructing smart buildings at low cost. Thus, on the basis of cost strategy it can also challenge
the company. Malta and its capital have been tourist destinations and thus it also acts as good
attractive source for the investors. There are several foreign construction companies who desire
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to invest in properties in Malta. Thus, company must also investigate the local as well as foreign
competitors in the market.
3.2.2 Industry competitors
Along with the major competitors in the Malta cities the organisation have to experience
the common trends of construction industry. This can be evaluated by performing the SWOT
analysis.
Strength:
The organisation has innovative and advanced ideas to make buildings more smart and
energy efficient. The management and staff members of the company have good experience
which can help them to develop more effective and qualitative projects. Along with the technical
skills the organisation also focus on developing leadership and management skills so that better
decisions can be taken and profitability goals can be achieved (Vanus and et.al., 2016). As
compare to other competitive organisations Green Homes has planned to work on the strategic
locations which are highly appreciated by tourists. Thus developing good building's
infrastructure is priority of all the hotels and local people. This will add benefits to the
organisation as more and more people will easily agree to adopt energy efficient construction
models.
Weakness:
Since most of the individuals who work in construction practices are not much skilled
and aware in the technological updation. Thus, it may be hard for the staff members to
understand the implications of construction and technology (Corna and et.al., 2015). The project
may also need additional training and changes to organisational architecture. In short term it can
affect the overall performance of employees as well as organisation. At present the services
provided by the company are not differentiated. It can influence the responsiveness of the
customers. The organisation is not familiar with the targeted market thus its low awareness can
have adverse impact on the project outcomes. The construction activities are easily influenced by
the environmental conditions. Thus, it can be challenging for the company to sustain its
efficiency during natural hazards (Rocha, Siddiqui and Stadler, 2015). In order to deal with such
situations company must also try to use techniques and materials which are effective enough to
retain productivity and quality in adverse conditions as well.
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Threats:
Being the tourist destination the business in Malta will have possibilities of experiencing
threats from both local and international competitors. The political changes and the local
regulations of the region can also influence the operational continuity of the organisation. There
may be difficulties in terms of raw material availability and security (Jadhav, 2016). For instance
due to huge number of tourists there are also risk of terrorist attacks. Thus, such type of risk
vulnerabilities or the price hikes in the construction raw material can also act as threat element
for the industry.
Opportunities:
The most influential opportunity for the company is to use technical innovations which
can help to improve its operational efficiencies. When company will provide services in tourist
spots of Malta then it will also get an opportunity to promote its services and brand value to
international market. After the successful projects in Valletta and St. Paul's Bay company can
also expand its services to other parts of Malta and the neighbouring cities (Lu, Chen and Yu,
2019). The growth in the market and increasing concern of people towards sustainability will
bring huge opportunities for the organisation to grow in the market.
3.2.3 Entry cost
At first the organisation will require establishing its infrastructure so that it can show its
presence to the potential customers. The company will also require following advertisement
strategy so that it can promote the smart services provided by it. In addition to this company
must also try to create awareness among the people so that customers can understand the
difference between normal construction practices and smart sustainable practices. To incorporate
the technological advancements in the practice there is also need to upgrade the technology used
by the company and the skills of human resources (Smith and et.al., 2017). For instance for the
project organisation will not only need the experts who are efficient in construction practices but
who can easily integrate building infrastructure with the advanced and modern technologies. The
additional changes to skills and equipment will add extra cost the company.
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3.2.4 Entry barriers
There are some entry barriers which will restrict company to enter and operate in Malta.
So, it is necessary to identify those barriers so that appropriate measures can be taken. This will
also give an insight on determining barriers. It will not be easy for the Green Homes Limited to
provide smart building construction services. The foremost challenge towards organisation will
be the resource availability. The company will require assuring that it has all necessary
technological and information resources so that it can provide sustainable building solutions
(Jang, Nam and Jung, 2016). Since Valleta and St. Paul's Bay are famous tourist places the
hospitality services are already using smart constructions. In addition, there is already plenty of
construction companies which can act as a barrier to the smooth working of organisation.
Thus, competitive threats can also act as barrier to entry in the market. Another critical
factor which can act as barrier to the organisation is legislative frameworks. Along with the
construction legislations Green Homes will also require permissions from the environmental
boards and city board. Since construction companies need permission for the smart buildings in
the smart city it can also act as barrier. On many occasion company may also face difficulties
due to availability of human and financial resources (Volkov and Batov, 2015). Thus, in order to
avoid such barrier organisation must try to assure that it recruits the best skilled resources so that
work can be managed and operational activities are not restricted. The lack of funds and
resources is also critical factor for the operational continuity. Thus, company must have back up
resources so that due to sudden event's resource availability is not affected.
3.2.5 Substitutes
In particular the construction industry does not suffer from the threats of substitution in
terms of any product. The buildings cannot be replaced by any other product. However, the
operations and functions of Green Homes can be affected by the rivals or the new market
entrants. The construction industry especially sustainable buildings are assumed to be very
prosperous and growing segment (Hui, Sherratt and Sánchez, 2017). Thus, there are continuous
trends of new market entrants. The low cost competitors can substitute the dominance of
organisation. Along with the new emerging competitors the existing competitors can also
substitute the organisation in the operations.
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3.2.6 Bargain power
To promote the products and services and for developing a strong customer base
organisation will also provide bargaining power to multinational hotel chains. Such type of
international hotels and large residential complexes will be allowed to bargain up to a limit of
10%. When such customers will be provided the power to bargain then, there will be high
possibilities for such clients to provide repeated orders for their project. The promotion through
such high profile clients can also attract the residential customers (Fernandes and et.al., 2018).
However, since small residential customers are not the major targeted segment for the
organisation they will not be provided any significant bargaining power.
3.3 Market feasibility
St. Paul Bay and Valletta have been very popular tourist destination and thus it is
expected to have services which can meet the international standards and expectations. The
technology based application such as sensor based controlling devices, remote controlling of air
conditioners and smart appliance based kitchens are well known to people. However due to cost
considerations these appliances and smart devices are used by only high income population and
in hotels. Since large size hotels are required to serve excellent services to their customers they
have services such as audio and visual control of appliances as well as other smart applications
for the building (Rocha, Siddiqui and Stadler, 2015). Thus, project can be easily adopted by rich
and influential people who desire to make their living more luxurious and comfortable. Along
with these people the hotels can also use the services provided by organisation. For this purpose
the geographical segmentation and targeting is chosen. However, it will allow business to
provide services to people outside the country as well. moreover, there will be change in things n
15

(Source: Energy Efficiency Solutions And Reviews New Low Cost, 2018)
Most of the people are not aware with the sustainability needs but when they are
informed regarding cost savings then there is wider adaptability of the project and services.
During market research it is also analysed that even if hotels and buildings does not make
complete shift to smart buildings then also they can choose for specific solutions (Madani, Daim
and Weng, 2017). For example organisation will provide smart construction services in PEHV
charging, fire, lighting, water, energy conservation, security monitoring as well as maintenance
of elevators. Thus targeted users can contact organisation for installation of any of these services.
In market there are already such types of services available but most of the people are not aware
regarding the actual utilisation and scope of these services. Thus, company must use appropriate
promotional and marketing strategies so that it can approach to large segment of the customers
and its market share among similar industries can be increased. A growth in market will
automatically improve economic condition of Malta. This will also attract other companies to
enter in Malta and compete with Green Homes Limited.
3.4 Organisational feasibility
Green Homes Limited can be considered to have organisational feasibility as all
necessary resources and management expertise are available within business context. The
directors of company have an experience of 10 years in the construction industry and thus they
16
Illustration 3: Preferred services in smart building by customers

are well aware with the needs and changing pattern of the industry (Fernandes and et.al., 2018).
The shareholders of the company has highly expertise construction and software engineers who
are capable to provide automation solutions. The shareholders have 4-5 year experience of
working in the smart building projects. Along with the technical experts there are several
management leaders who have expertise in managing business and to make proper decisions on
the basis of market analysis and needs of business (Ahvenniemi and et.al., 2017). To accomplish
project successfully and to overcome project risks the organisation also has necessary
technological support, systems and resources.
3.5 Financial feasibility
Financial feasibility emphasis on analysing and expecting the financial performance of
the project. It is done by estimating the profitability of the project through its successful
implementation. The return on investment and capital sources are also analysed in this
feasibility. The project will start with an initial investment of £50000. The cash flow will
continue as 25% of amount will be received as advance from the clients and it is estimated to
have 16% return on investment within one year. The potential investors of the project will be
investment institutions and share holders of the company who will gain 15% of their investment
amount in any of the quarter within one year when desired profits will be earned. It is analyzed
that there will be high growth in Malta n future due to use of technology. So, it is expected that a
rise in 13% in use of internet will be useful for business to generate revenue. Thus, there will be
frequent cash flow and increase in GDP.
3.6 Ambition Vs Ability
In order to achieve the desired profits it is essential for the organisation to develop a team
which is capable to meet the project needs. Green Homes Limited has outstanding teams which
are efficient in advanced information technology and devices. The entrepreneurial management
skills of the company are integrated into the practices of employees. Thus, to enhance the
capabilities and ability of the construction industry members organisation will have a fix amount
of investment for capability fund and productivity. With this fund workforce will be provided
training so that sustainability goals of the company can be integrated with the technology.
17

(Source: Construction productivity and capability fund (CPCF), 2019)
Along with the training programs company will also encourage the development of
construction engineering capabilities and adoption of new technologies so that buildings can be
made more sustainable. The adoption of technologies such building information model and
productivity improvement project will help to identify potential buildings which can be
converted into smart homes (Madani, Daim and Weng, 2017). These development strategies will
help organisation to not only increase the constructional capabilities but also to enhance the
managerial skills, contextual knowledge, job related, behaviour skills as well as technological
capabilities. However, the limited technical skills can influence the overall quality of services.
Thus, there may be need of training and market research. There are continuous possibilities of
the treats form the competition. Thus, to overcome the competitive threats company must adopt
suitable strategies which can provide competitive advantage. In addition to the substitution
threats there are huge opportunities in smart building projects. It will also help to deliver quality
buildings to the customers. To manager the partnerships and relations feedbacks and market
surveys are also analysed by the organisation so that decision making can be improved.
18
Illustration 4: Capability development program

Chapter 4
Business Model
4.1 Core strategy
The core strategy of the company was to provide low cost construction services.
However, with the market analysis it was found that smart buildings have huge potential of
growth and company can use new technological solutions for differentiating their construction
practices from other service providers (Fewings and Henjewele, 2019).
4.1.1 Differentiation basis and identifying competitive advantage
To achieve the operational excellency in Valletta one of the key attribute which makes
the Green Homes Limited unique form the organisations is that it incorporates the sustainability
principle into its practice. Most of the customers believe that such smart technologies can be
used for high profile applications only and it cannot be linked with the household applications.
4.1.2 Sales and marketing
Marketing strategies are important part for the success of business. The organisation can
use websites, email marketing and other promotional events so that it can promote its services
among customers. To make its services impressive the organisation will use three dimensional
models so that people can actually understand the real nature and quality of services. To analyse
the growth and performance sales analysis and feedbacks from customers can also be used.
4.1.3 Services
In order to deliver the sustainable and quality buildings the service strategies of the
organisation will be based upon differentiation and pricing. The engineers and developing team
will provide building solutions in a way such that it can satisfy the needs of building owners as
well as primary users. The excellent operational activities will help company to meet the
outstanding service quality (Angelidou, 2015).
19

(Source: Miller, 2019)
4.1.4 Competitive positioning and Porter Generic strategy
The Porter's Generic strategy can be used to analyse the competitive forces so that
suitable positioning can be adopted which is as follows:-
Cost leadership: With this approach organisation will follow the aggressive practices so that
excellent services can be provided by cost reduction. For this purpose organisation can lower the
expenses involved in marketing, research, inventory and other operational aspects. The cost
leadership will also be helpful in minimising the operational errors and deficiencies (Grover and
Froese, 2016).
Differentiation: To enhance the responsiveness of people towards services and products
company will provide the unique buildings in terms of design, smart features, applications and
integration of the technology. This approach is also helpful in enhancing the customer loyalty so
that company can experience the long term success and competitive advantages with minimum
threats of substitution.
Focus: For the new project especially when competitors are present it is beneficial for the
organisation to initially serve only a narrow segment of customers. It assists company in
understanding the purchasing behaviour of the people as well as marketing trends of the
construction industry. Contrary to this direct exposure to broad geographical segment can be
complex and expensive (Ness and et.al., 2015). Due to this reason the organisation must have
well defined criteria for serving desired geographical segment and target population.
20
Illustration 5: Supply chain of construction industry

Though differentiation will be the fundamental approach used by the organisation to
promote its services but for the first few years company will be using focus approach. Through
focus attitude organisation will initially provide services to medium and large size hotels and to
upper class residential buildings.
4.2 Competitive advantage and self evaluation
Since most of the people are not aware of the smart building concepts the practice is
limited to only upper class and hospitality service providers. However, the leading construction
companies in Malta capital and major towns have various construction companies providing such
services (Ashworth and Perera, 2018). The effective promotional strategies can be used by the
Green Homes Limited to encourage communities and hotels to convert their buildings into smart
services.
The management skills and well defined strategic plans are considered as the strength
factors of the company. The increasing awareness for sustainability, energy conservation,
technological improvements and globalisation gives great possibilities for the company to
explore the new market segments in other countries.
4.3 Mission
On the basis of marketing analysis and competitive advantage Green Homes emphasis on
differentiation and cost leadership. Thus, its improved mission objective is to establish itself as a
leading construction service providers which provides sustainable building with smart
applications.
4.4 Core competencies and resource requirements
The technical expertise and professional skills can help organisation to encourage people
to transform their buildings into smart infrastructure. Along with the specific job skills there is
also need of management skills so that time, resources as well as work place relationships. Along
with the financial and knowledge resources organisation is also required to have complete
knowledge of licensing, competitive environment and regulations related to construction and
organisational practices.
4.5 Ways to connect customers groups and partnership network
For the successful business organisation must collaborate with several partners as well as
customers. In order to deliver services Green Homes must collaborate with the efficient technical
service providers so that advanced smart solutions can be integrated in the construction
21

operations. Similarly, the company must also have good partnership with the suppliers so that
raw materials are supplied on time and projects can be accomplished on time (Zhong and et.al.,
2017).
4.6 Deliverable values to customers
The smart features in the building will give consumers an opportunity to enhance their
living experience. The use of advanced technologies, remote controlling of various appliances
will make life of people quick, advance and highly comfortable (Kiel and et.al., 2017). Thus,
smart buildings will bring significant transformation in quality of life as well as environmental
sustainability.
4.7 Improvements in business model
(Source: Orgler., 2016)
For promoting the improvements in business model organisation must focus on several
attributes of the model. For example the strategies must be developed in alignment with the
interest of business partners and customer segments. It will help to build better professional
relations and profitability will be easy to achieve for the company. For the regular improvement
in the operational activities company must also monitor and adopt suitable suppliers and
distribution channels.
22
Illustration 6: Business model attributes

Chapter 5
Business plan
5.1 Executive summary
5.1.1 Business opportunity
The advancement in technology has allowed business and people to use it for their own
benefit. Technology has ease and improved life of people. The use of IT is allowing people to
make generate employment and enhance social life. Now, technology is used to communicate
with others by connecting devices and application. Another benefit is it is used to maintain
sustainability and reduce energy consumption in buildings. There are many companies that is
using technology to built smart homes (Larimo and et.al., 2018). It has benefited in controlling
and regulating homes. Smart homes industry has recently emerged in developed countries. As
Malta is tourist destination there are many resorts and hotels. Moreover, people are highly using
technology to communicate. Thus, there exist vast opportunity to design smart homes. Moreover,
telecommunication companies have improved network infrastructure. So, it offers a new market
for Green Homes limited to become successful. The concept for smart homes is basically to
bring technological advancement in infrastructure. But here many challenges exists such as high
cost, inadequate infrastructure, ineffective rule and legislation, etc. so, due to this the idea is not
been executed at earlier stage. A business requires proper idea and resources to start. Moreover, a
smart business requires effective strategy and set up which is flexible. On other hand small
venture require unique concept so that it compete in the market and provide different types of
products and services. However, it requires an experience person to handle and manage business
operations effectively. However, having proper resources helped in execution.
Here, the promoter identify this opportunity and execute this business idea. This is because
of rise in infrastructure and increase in use of technology. There are many factors due to which
this business idea can be successful. They are described below :-
 In recent times there has been high rise in tourist.
 Increase in building of hotels, resorts, etc.
 Technological advancement
 Use of technology in homes
23

Besides this, communication market is growing rapidly in country. More and more
companies are entering into it and offering variety of services.
5.1.2 Market and customer acceptance
It is stated that in Malta in recent times smart homes are been designed. There is high rise
in smart buildings and hotels. Since, past 2 years telecommunication network has improved.
Furthermore, there are many key developments occurred in Malta such as expansion of LTE
network, government is supporting 500mb\s fibre based service, €100 million investment by GO,
etc. So, these all are the developments which is transforming Malta into developed country.
However, it has provided a platform through which company can grow and developed. So,
people are also able to communicate easily. Apart from it, hotel and resort are constructed in
numbers. It is allowing people to install application and devices in homes to convert into smart
ones.
5.1.3 Strategies for competitive advantage
It is important for company to gain competitive advantage in the market. This is because
it enables in generating huge profits and creating large customer base. Every company follow a
different strategy in order to gain competitive advantage (Zietlow and et.al., 2018). It also
depends on market situation and target customer. There are different strategies which can be
followed by Green Homes Limited. They are explained below :-
Technology based competitive strategy – In this strategy company can highly focus on
technology. Through advance use of technology strong culture is developed. The resources are
utilised in effective way. They can offer advance technological products and services to
customers. Besides this, business gain competitive advantage on basis of using technology.
Innovation based strategy – This strategy is based on innovation. Here, organisation innovate
its methods and process to gain competitive advantage. The innovation is done in any aspect
which enables business to establish a strong customer base and offer new products and services.
The strategy is completing based on innovating services.
Cost leadership- It is a strategy in which company reduces production cost and gain competitive
advantage. Through this, business is able to sell products at lower price as compared to
competitors. The emphasis is on lowering cost to sell goods at lower price in the market. It
support in earning more profits.
24

Thus, Green Homes Limited. can develop and implement innovation based competitive
strategy. In this innovation can be taken as aspect for gaining competitive advantage. In addition
to it, frequent innovation in products and services makes it easy to retain customers. Beside this,
new services can be offered to customer and how to use them. Moreover, it is analyzed that
Green Homes Limited is technology based organisation. So, it can be easy for them to gain
competitive advantage through innovation. Furthermore, by cost differentiation company can
gain competitive advantage. It will create an image of how cheap and unique products can be
offered in the market.
5.1.4 Revenue and profit forecast
CASH FLOW
Year 0 Year 1 Year 2 Year 3 Year 4
Opening Balance £0.00 -£1,597.48 £15,073.85 £34,865.19 £58,088.52
Initial Investment -£1,597.48
Sales Revenue £40,000.00 £44,000.00 £48,400.00 £53,240.00
Variable cost -£8,800.00 -£9,680.00
-
£10,648.00 -£11,712.80
Fixed cost
-
£14,528.67
-
£14,528.67
-
£14,528.67 -£14,528.67
Closing Balance -£1,597.48 £15,073.85 £34,865.19 £58,088.52 £85,087.05
Margin % 17.68 27.24 31.02 40.82
Total Cash Flows -£1,597.48 £15,073.85 £34,865.19 £58,088.52 £85,087.05
Discount Factor 10% 1 0.909 0.826 0.751 0.683
Present Value -£1,597.48 £13,702.13 £28,798.65 £43,624.48 £58,114.46
5.1.5 Capital required and timing
This business required initial capital of £25000. Also, the time in which business will
start operating is within 1 year.
5.1.6 The team
The business will comprise of 5 members at beginning. In the future more people will be
hired with growth in organisation. The roles and responsibility of each one will differ. However,
25

there will be 1 operational manager, finance, HR manager, etc. there will be on technical
operator and IT expert. They will handle and manage overall technological and R&D
department.
5.1.7 Key partner
There are different partners in business. It depends on nature and size of business and
sector in which they operate (Blut, Teller and Floh, 2018). Generally, there are 2-3 partners in
a business. In Green Homes Limited there will be three partners with which company will work.
First is Vodafone telecommunication company that offers services to people. It will beneficial
for company to use company services in smart homes. The second partner will be a technology
company that develops and design software and application. Hence, by working with it Green
Homes Limited can use their devices in smart homes. The last partner will be a construction
company that builds and construct homes. It will allow business to collaborate with them so that
smart homes can be built and design.
Green Homes Limited offers services to built smart homes. It also provides consultancy
services to customers. Moreover, company offers services for maintaining of devices and
applications. At last there will be shareholders of company. It will depend on owner and
members.
5.2 Industry, company and product
5.2.1 Company and its location
Company is located in the capital city of Malta that is Valletta. In this city there are many
homes and buildings. Thus, starting will be from capital city and then it will be expanded in
other cities. The city is appropriate to do business and also St. Luis which is populated city in
Malta.
26

5.3 The product / service concept
Green Homes Limited will offer variety of services to people. The services vary on basis
people needs. However, each service will carry unique and distinct features.
5.3.1 Building smart homes
The main product or service offered by company will building smart homes. Here, the
target market will be high class people who want to build smart homes.
5.3.2 Offering consultancy services –
The company will offer consultancy services regarding how to use device and software in
homes. Moreover, what are the use of device and software and how traditional buildings can be
converted into smart homes. The services will be offered to hotel, resorts, apartments, etc.
5.3.4 Installation of smart devices -
Green Homes Limited will also offer services related to use of technological tools and
devices that are used in smart homes. The business will install and implement devices into smart
homes or to convert any building into smart home (Stead and Hastings, 2018).
5.3.5 Latest technological devices
27

The company will provide latest technological devices to customers. It will help in
building of smart homes. Also, converting old homes into smart one will help in generating
value.
5.4 Key success factors
 The consultancy will support people to implement technological tools and devices in their
homes. This will help in conserving energy and maintaining sustainability.
 Building smart homes will assist contractors and engineers to adopt a new concept and
model of infrastructure. It will attract people to built smart homes. In that hotels and
resorts that are yet to be constructed can also be developed as smart hotels.
 By providing consultancy services will attract in transforming homes and building into
smart ones. So, it will help in generating awareness among them to get an idea about new
concept.
 By taking people feedback after installation of technology, company can make changes
or improvements in their services and products. It will help them to retain customer and
built a strong customer base in Malta.
 The neighbouring country such as Italy is also a tourist destination. So, in that nation as
well company can expand its operations.
 The business can earn commission from by collaborating with construction companies.
Hence, extra income can be generated from it as well.
5.5 Market, market analysis and research
5.5.1 The market size and trends
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From above table it can be analyzed that in Malta there is high growth in use of hardware,
software and IT services. Since, 2016 and 2017 IT services has grown 5.3%.
5.5.2 Customer by market segment
The target market for Green Homes Limited are high class people who want to built
smart homes. Also, they target hotels that are having more than 50 rooms in Malta.
5.5.3 Competitors
There are 1-2 competitors of Green Homes Limited in Malta. Thus, the company can
operate easily in the market. ESI Malta is the main competitor (Gilligan and Lowe, 2018).
5.5.4 Competitive positioning
It is based on two crucial factors that are price and product differentiation.
Hence, it is necessary for Green Homes Limited to focus on price and quality of product so that
competitive advantage can be gained. By this they can compete with them. However, following
29

of cost differentiation strategy will enable in offering services at low cost. Apart from it, unique
services can be provided to target market. It will be useful to generate sales in Malta.
5.5.5 Value proposition
The company can generate value from its products that are as follows :-
 By offering advance technological products and services to customers. The IT expert will
offer after sales services which will help in maintaining devices and applications.
 The use of latest technology will attract more customers. They will be easily able to
monitor and control their home.
5.6 COST / VOLUME / PROFIT ANALYSIS
Gross Margin
Gross Margin: 78%
Operating Margin
Operating Margin: 51.68%
5.10 Marketing plan
5.10.1 The marketing plan of company is focused on diversification. Here, product is promoted
through various strategies. The marketing plan of Green Homes Limited is explained below :-
Product – Here, the main product is to install technological devices and software to built smart
homes. Also, to convert traditional buildings into smart homes.
Process – To ensure that smart homes are built on time and generating value by offering
consultancy services on time.
Partnership- By developing close relationship with contractors and construction companies,
Green Homes Limited will offer services to people (Foley, 2018). Alongside it, working closely
with customers will enable in developing strong customer base.
Presence – It will result in converting traditional and old buildings into smart homes. By this
business can create a sustainable environment.
30

Price- It refers to the price at which product and services will be offered. Here, main purpose of
company is to become market leader by creating a mind set in customer mind as lowest cost
services.
Place – It is already stated that company headquarter will in the capital city of Malta, Valletta.
With this services will provided to customers.
People – The members of company will develop strong relation with customers. This will be
done by taking their feedback via e mails.
Promotion – In marketing mix it means to promote goods and services to generate awareness.
Green Homes Limited will promote services on social media. Also, they will use e mails to
promote services. The ads will be posted in newspapers as well. It will benefit in attracting
people and generating awareness in the market.
5.10.2 Customer relationship management
5.12. Management Team
5.12.1 Organisational chart
31

5.12.2 Key personnel
The company will contain 5 members at beginning. Here, there will be operational
manager, finance, HR manager, technical operator and IT expert. These all will be responsible
for different roles and tasks. In future more people will be hired.
5.13 Operation plan
The operational plan helps organisation to effectively execute the operational activities in
a proper sequence so that tasks can be completed on time. The operational plan includes the
details of business locations, facilities and supply chain. It also contains process of how services
are delivered and devices are installed. In addition to it, the homes will be monitored constantly
within specific time period so that device maintenance is done.
5.13.1 Business location
The location for the project will be Valletta which is capital of Malta. In addition to this St. Paul'
Bay will also act as the business location for the project (Wei, 2018). Both of these locations are
very significant from the business perspective as number of tourists visit theses places to hotels
and residential buildings are equipped with the advanced systems and technology.
5.13.2 Supply chain management
The organisation need to emphasis on making strong supply chain network so that raw
material issues do not cause any barrier in timely completion of the project (Hardin and McCool,
32

2015). The company must have good relations with the contractors, subcontractors, architects
and raw material suppliers.
5.13.3 Operating cycle
In the construction industry the organisation is required to first assess the requirements of
the clients and then site investigation is carried out. The investigation helps to prepare suitable
design solutions for the building. On the basis of design raw material is collected and
construction process is started. During the process it must be assured that all safety and
constructional needs of clients are considered into the design.
5.13.4 Facilities and equipment
The initial investment will be on developing a well furnished office so that clients can
discuss their needs. The office will also have three dimensional models of services provided by
company so that people can easily choose their requirement (Clough and et.al., 2015). The
construction site will be different so all necessary equipments will be directly send to the work
site.
5.14 Sustainability
One of the major objective of the organisation is to develop buildings which are
sustainable and which helps in energy conservation and environment protection. For achieving
this goal along with the smart building company also assure that is operational functions causes
minimum wastage and pollution.
5.14.1 Critical success factors
The use of good quality material and proper construction techniques will help to avoid
the failure risk and to increase the success factors (Li and et.al., 2018). In addition to this
effective leadership and management skills will also act as critical factor in the success of
operational activities.
5.14.2 Risk assessment
Along with the supply issues several environmental hazards or accidents on construction
sites are the major risk factors for the project completion. Thus, company must assure that all
necessary work place safety techniques are used and good quality raw material is used. In
33

starting this business there are some risk as well which can occur. First risk is advancement in
technology that can be a threat to business in providing services and maintaining of devices.
Another risk is to regulate and maintain devices that are installed in homes. It may be difficult
for business to do this.
5.14.3 Future sustainability issues
The pollution and environmental harm are the critical issues related to sustainability in
the construction industry. These issues can be reduced by using sustainable raw materials and
proper waste management techniques (Borlase, 2017). The company will try to improve its CSR
report so that these issues can be overcome.
There are various assumptions followed in order to develop business and financial models.
This is because it will contain information through which report is been developed. The
assumptions are as follows :-
 Sustainable home will emerge a new concept in construction sector.
 The demand for smart homes and buildings will tend to increase in the future.
 Smart home helps in reducing energy consumption and saving
 Change in market trends and demands of customers
34

5.16 Business controls
The business efficiency is identified by its KPI’s. They are the areas known as key
performance indicators. The main objective of business is to measure and control KPI’s so that it
can be improved. Thus, the KPI’s of Green Homes Limited are mentioned below :-
 Satisfaction level of customers
 Use of technological tools and software
 Customer base and number of converted houses into smart homes
 Timeline within which smart homes are built.
5.17 Financial projections
5.17.1 Assumptions
It can be observed from the secondary data and information that there is continuous
growth in IT industry. In future estimated growth is 13% in next 3 years. So, it will be highly
beneficial for company to operate there.
5.17.3 Balance sheet
A business requires having an estimate of balance sheet up to five years. This is because
it gives an insight of income and expenses from various sources. The balance sheet of Green
house limited is as follows :-
Balance Sheet - Summary of Years 1
to 5
Opening Year 1: Year 2: Year 3: Year 4: Year 5:
ASSETS
Current Assets
Cash 150,000 160,000 170,000 180,000 190,000 438,000
Marketable securities 60,000 20,000 40,000 50,000 80,000 70,000
Accounts receivable, net 20,000 23,000 63,000 63,000 40,000 45,000
Inventory 12,000 22,000 23,000 33,000 40,000 56,000
Prepaid expenses 30,000 30,000 25,000 23,000 20,000 40,000
Other 12,000 12,000 12,000 12,000 12,000 12,000
Total Current Assets 284,000 267,000 333,000 361,000 382,000 661,000
Long-Term Assets
Property, plant, and equipment 23,000 23,000 25,000 14,000 25,000 21,000
Less accumulated depreciation 16,000 15,000 15,000 11,000 10,000 14,500
Net property, plant, and equipment 7,000 8,000 10,000 3,000 15,000 6,500
Other long-term assets
Total Long-Term Assets 7,000 8,000 10,000 3,000 15,000 6,500
35

Total Assets 291,000 275,000 343,000 364,000 397,000 667,500
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
Short-term debt 15,000 15,000 15,000 14,000 14,000 145,000
Current maturities of long-term debt 15,000 15,000 15,000 16,000 14,000 15,000
Accounts payable 11,000 10,000 12,300 19,000 20,000 40,000
Income taxes payable 15,000 15,600 14,000 18,000 17,000 17,500
Accrued liabilities 16,000 15,000 14,000 13,000 15,000 13,000
Other 1,000 1,000 1,000 1,000 1,000 1,000
Total Current Liabilities 73,000 71,600 71,300 81,000 81,000 231,500
Long-Term Liabilities
Long-term debt less current maturities 16,000 15,000 23,000 25,300 35,000 30,000
Deferred income taxes 10,000 45,000 30,000 35,000 38,000 25,000
Other long-term liabilities 15,000 23,400 116,700 116,700 127,000 26,000
Total Long-Term Liabilities 41,000 83,400 169,700 177,000 200,000 81,000
Shareholders' Equity
Common stock 23,000 30,000 36,000 39,000 38,000 270,000
Additional paid-in capital 36,000 35,000 30,000 40,000 40,000 45,000
Retained earnings 25,000 45,000 26,000 17,000 28,000 39,000
Other 93,000 10,000 10,000 10,000 10,000 1,000
Total Shareholders' Equity 177,000 120,000 102,000 106,000 116,000 355,000
Total Liabilities and Shareholders'
Equity 291,000 275,000 343,000 364,000 397,000 667,500
5.17.4 Forecasted cash flow
CASH FLOW
Year 0 Year 1 Year 2 Year 3 Year 4
Opening Balance £0.00 1500 15000 25240 31420
Initial Investment -7500
Sales Revenue 30000 40000 55000 75000
Variable cost 15421 14720 15411 12451
Fixed cost 15000 15000 15000 15000
Closing Balance -7500 -421 10280 24589 47549
Margin % 37.68 79.24 120.02 159.82
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Total Cash Flows -7500 31500 55000 80240 106420
Discount Factor
10% 3 2 1 1.5 2.5
Present Value 7500 £13,702.13 £28,798.65 £43,624.48 £58,114.46
5.17.5 Calculating the Return of Investment
According to the return of the investment can be calculated using payback period.
5.18 Viability
It can be evaluated from proposal that Green Homes Limited can start business in Malta.
The country is known as famous tourist destination. In the next 5 years it is expected that there
will be high growth in technological sector in Malta. By building smart homes in nation
sustainability can be maintained.
Secondary research has been conducted to analyze market condition of Malta. Moreover,
with help of it, competitors are identified and opportunities are searched. It is also identified that
what is the taste and preference of customers.
In proposal it is shown about 5 years of cash flow statement and estimated balance sheet.
Also, the overall management team and marketing mix of Green Homes Limited is described.
37

Research reflection report
It can be evaluated from above report that the proposal is regarding about starting a new
business in Malta. The business is of building green homes and converting traditional buildings
into smart ones. In order to develop a proposal the main task for me was to decide mission,
vision, aims and objectives of business. This is because on these elements proposal is based. For
this I started collecting information related to other companies operating in building smart
homes, their aims, etc. Then, I gathered data about market condition of Malta in order to develop
business mission and vision. The data helped me to evaluate things in depth. Furthermore, before
developing aims and objectives I gathered secondary data that how in future smart homes will
emerge as new concept in industry. Also, what technological advancement may occurs and how
it will benefit. So, the main task in proposal is to develop mission and vision. On basis of it
objectives are made. I evaluated that if aims and objective are not proper it can lead to failure of
proposal.
The first thing that I did is develop schedule. It gave me insight that what daily activities
is to be done, in what time it will be completed, etc. then, I assigned roles to others and started
gathering data. First of all I collected info on Malta and then on technology. I also communicated
with stakeholders as well to analyze market condition of Malta. I realised that the nation is a
tourist destination where large number of people visit every month. So, I felt hesitated at starting
to interact with people. Also, I was not able to speak English so fluently. This affected my
performance. Thus, I took help of local guide. I visited local markets of Malta and several hotels
and resort. By this I got data of market and other companies. It was useful for me to identify
target customers and how product can be positioned. Then, I realised that it would be a unique
concept to build smart homes in Malta. However, I visited many other cities of Malts as well to
identify its geography. In order to determine what local think about technology and smart homes,
I collected secondary data from various sources. I visited a library and searched articles, journals,
etc. from this I was able to get theoretical and statistical data of use of technology by people in
country. In addition to it, first of all I segregated data in three categories that is past, present and
future. By doing this it was easy for me to analyse data. I searched journals and articles to collect
data. Furthermore, I visited several website for it as well. It provided me with variety of data.
Then, I analyzed it and took only accurate data. Initially, it was difficult for me to analyze data as
there was a lot of information included in it. So, I was not able to find out which one is relevant
38

or not. For this I used my experience and first of all segregated data. Alongside it, I got
information that what present condition is and how telecommunication companies are
transforming infrastructure. Here, I used my critical thinking skills to evaluate data. So, with this
I gained knowledge and improved my personal skills.
Now, in next chapter that is business feasibility I analyzed overall industry, market,
product, etc. feasibility. Here, I gathered secondary data. This is because it gave me insight on
competitors, their services, price, etc. I searched on internet and got statistical data. Then, I
collected facts and figures about telecommunication industry. For this I read articles, journals,
etc. published in newspaper. It was very useful for me to include all details in proposal. Apart
from it, to identify industry competitiveness I applied porter five force model. This simplified my
work in proper way. I also gathered information about Malta to determine rules and regulations
of doing business. I read business cases and books related to business laws and regulations.
The main challenging task for me in this proposal was to calculate financial data. This is
because I am weak in maths. Moreover, I was not having any idea that what elements are to be
included in developing balance sheet. Also, what are asset and liabilities of this type of business.
In addition, how much capital is required to start this business. In order to include these all in
proposal I took help of an expert. He guided and supported me in making financial projections of
business. From this I got to know what elements are to be included in balance sheet. What are the
asset and liabilities of business. I understood that balance sheet must always be matched, if not
then it is incorrect. Thus, I require a lot of improvement in maths and accounts. This will enable
me to identify what capital is required, how balance sheet is developed, etc.
I realized that I need to enhance my communication skills so that I am able to interact with
other. As in this I did not communicated in effective way with others. This resulted in increasing
time in completing project. So, improving this will enable me to learn different ways of
communication. Here, in business case I improved my writing skills. I get to know how to write
business proposal. By this I got an overview on what types of technical words to be used, how to
work in systematic way, etc. I learnt about what chapters are included in proposal. As I was
developing business proposal for the first time I need to analyze each element. This is because it
helped me to gather precise data and info and complete proposal. I realised that if any of the
element is not included in it the proposal is not accepted. So, I took help of expert so that
proposal is developed effectively.
39

While developing business plan I faced many problems. As I was not having experience in
it. Also, my lot of time got wasted in this task only. In this firstly I determined all crucial
elements required in it. The, gathered data and info about it. By this it was easy for me write.
Here, I took help of consultant who guided me in writing entire business plan. From this I
learned about it and improved my intellectual skills. However, my performance was not so good
in business plan. Thus, I need to learn about more on it so that it will help me in future. I first of
wrote about business products and services. Thus, I was not able to exactly identify what will be
smart homes services, but as I possess in depth knowledge about technology I specified it
correctly. I clearly identified key success factors as well which are based on technology. In order
to write market, I conducted research in Malta. The marketing plan was written by getting an
overview of Malta market, people trends, etc. For that I analyzed those articles in which survey
or interview was done. So, it consumed lot of time. Other than this I asked market experts,
economists, etc. I conducted an interview based on specific questions.
I effectively identified management team as I know that in small business who are at
members involved in it. In past I have already made such type of teams. But I was in dilemma
here as I this proposal was of smart home business, so it required more staff in IT. Therefore, I
searched solution and then evaluated each one on basis of certain criteria. With this my problem
solving got sharpen. I took help of my friend who possess knowledge on HR. He assisted me in
developing management team. Further, in developing operational plan I used my logical thinking
skills. I only included those areas which can be crucial. So, here I covered my time and managed
my work to some extent. It was useful for me to proceed further in smooth way. Furthermore, I
realised that I need to practice a lot to by writing more research proposal. I can use samples and
other materials available for it. This will help me to increase my knowledge and skills. Then, I
can prepare complex proposals as well. I need some training sessions to make proposal. In
addition to it, I should improve my accounts so that I am able to do calculations. My financial
knowledge is weak. Due to this, I am not able to successfully develop proposal.
The easiest task for me was to write chapter 2 that is business concept. It is because it
required only particular data and info. As I have done it previously it was easy for me to analyze
about industry and market. The data was gathered quickly and written. The business plan was
difficult chapter as it contained many categories. So, for each one I have to separately search data
and analyze it. The executive summary was written by me at last as I have to include all things of
40

report. Hence, it was not difficult but time consuming. But I did it in quick time and in effective
way.
From the above I evaluated my performance; I got to identify my strengths and weakness.
So, my strength that I identified from it is that I was good in critical decision and problem
solving skills. In that I analyzed data and information and then took an effective decision. By this
it easy for me to do things in right way. I used my critical thinking skill and gathered data from
various sources easily. I possess high and in depth knowledge related to technology. I have to
develop schedule and then work. It will help me to manage my time and complete task in
specified time. Alongside it, I am having ability to manage work but I get failed if any problem
occurs. Another strength of mine is I did my work efficiently even I took time. This means that I
maintained quality in my work. So, it shows that I am quality conscious.
My weakness was that I was not able to manage task on time. As I was not having
experience in it. So, I need to develop this skill so that I am able to handle and manage complex
project. If I can two or more proposal to be developed within 1 month I will not be able to do it.
Thus, it shows my weakness in particular area. It hinders my productivity as I am not able to
things properly. Hence, for my personal growth and development in future I need to improve my
skills. It will be beneficial for me to learn more about different types of business plans. Then, I
can easily develop plans accordingly. Apart from my growth I can learn many other things as
well. I can also work on dissertation and research project. It will be added in my academic skills.
By developing 7-8 proposal I can gain experience. It will be a great achievement for me.
Therefore, I came to a conclusion that I successfully developed proposal but I got late due in
doing so. Here, I identified many things. I gathered data in depth to do market analysis. I
communicated with local people to gather data on market. I identified competitor on internet and
collected data about their services, targeted market, etc. it simplified my work and segregated it
easier way. I communicated with team members in efficient way. So, we were able to do divide
roles and complete proposal on time. I lead my team by applying leadership style. It was my first
experience. I learned about certain formulas as well which is used in accounting. Moreover, I
gained knowledge about Malta and its culture. Also, I got know how nation is transforming
through use of technology. The background of people, types of hotels, etc. I learned that smart
41

homes requires maintaining of tools and devices. It is necessary to do so because it helps in
energy efficiency.
42

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