Business Environment Innovation and Entrepreneur

This report elaborates on the business environment analysis of the child care market domain with special emphasis on Langley Child Development Center. It evaluates the factors contributing to the obsolescence of notable companies and discusses the competitive readiness of the company. The report also highlights the opportunities and trends in the market domain.

Running head: BUSINESS ENVIRONMENT INNOVATION AND ENTREPRENEUR
Business Environment Innovation and Entrepreneur
Name of the Student:
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1BUSINESS ENVIRONMENT INNOVATION AND ENTREPRENEUR
Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..........................................................................................................................3
2.1. Market Domain...............................................................................................................3
Historical Significance.......................................................................................................3
Factors that contribute to the obsolescence or dissolution of notable companies in the
selected market domain in the recent past..........................................................................4
Impact of the factors...........................................................................................................4
2.2. Competitive Readiness....................................................................................................5
2.2.1. Internal analysis.......................................................................................................5
2.2.2. External Analysis.....................................................................................................7
2.3. Opportunities and Trends................................................................................................9
a) Intrapreneurial Opportunities for the company..............................................................9
b) Entrepreneurial opportunities for the company...........................................................10
Conclusion................................................................................................................................10
References:...............................................................................................................................11

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1. Introduction
The Business environment in the contemporary world is changing for various
different reasons including technological advancements, digitisation, competition among the
rivalries, political upheavals, changing consumer behaviour and patterns etc. (Teece, 2018)
This is why business managers today need to recognise first and then react to these changes
for ensuring the profitability and survival of their companies. The chosen market domain for
this assignment is child care. This report shall elaborate on presenting a brief environmental
analysis of this domain with special emphasis on the company named Langley child
Development Center, Langley, British Columbia, Canada. Finally, it would evaluate the
trends that are relevant to the business environment of this company and the market domain
from which it belongs. This paper would be divided into three different segments- analysis of
the market domain, competitive readiness of the company where internal and external factors
that are pertaining shall be evaluated and finally, assessment of trends and opportunities.
2. Discussion
2.1. Market Domain
This section of the paper shall evaluate the current business environment of Childcare sector.
Historical Significance
- The very first crèche (program for toddlers and infants) was opened in the year 1844
by Firmin Marbeau in Paris. It was recognised by the French government 25 years
later in the year 1869 (Caroli, 2017). Day cares or child cares were originated in
Europe during the late 18th and the early 19th century. By the end of 1850s, they were
established by the private charities in the United States. One of these private charities
include Charity Organization Society founded by Ansley Wilcox. It is also to note that

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the child care centre called Fitch Creche in the Buffalo city of New York is regarded
to be the first ever day centre for the working mothers in America.
Factors that contribute to the obsolescence or dissolution of notable companies in the
selected market domain in the recent past.
- According to Coontz (2016), about 58% of the families present in United States of
America had both their parents working outside. Although this suggest that there is a
very strong market for child-care industry and companies, still, parents are less
interested in admitting their children in day cares due to the various different cases
like child abuse, health problem etc. seen in America. The factors that are contributing
to the obsolescence or dissolution of notable companies in the selected market domain
in the recent past include staying healthy, trust and incident reporting.
Impact of the factors
- Staying healthy- Small children often carry viruses and germs and they rarely cover
their mouths while sneezing or coughing. This is why companies need to have some
proactive policy against contagious diseases in the centre as this is not only important
for their health but also lose the customers if parents starts perceiving that their
policies fail to decrease the risk.
- Trust- The trust of the parents in the safety of their children under the child care
centres are decreasing. A single incident of failure in locating the parent’s child
during their arrival can cost the centre a customer (Britto et al., 2017). It also have the
potential to damage the business reputation. Also failing to notice the families of lice
and any contagious disease can also hamper the reputation and cause the parents to
question the seriousness of the centre towards the well-being and health of the
children.

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- Incident reporting- In America, most of the day care workers are mandated reporters
of the cases like child abuse, comprising of abuse from guardians and parents
(Mathews et al., 2017). It simply means that any of the suspected incident of child
abuse needs to be reported to the agencies and the childcare centre is criminally liable.
2.2. Competitive Readiness
2.2.1. Internal analysis
a) SWOT Analysis
Strengths Weaknesses
a) It is an air force based centre
b) Langley child Development Center
provides well-balanced and nutritious
breakfast to the children along with
lunch and snacks facilities
(DeVleeschower et al., 2018)
c) Meals are served to the children in
family style for promoting conversation
and encouraging children to try new
foods
d) Parents are allowed to actively
participate in the program activities of
the centre
e) Children are highly valued
f) Has open door policy that allows the
parents to access the LCDC director any
time
g) The programs of the centre acknowledge
that the children are learning through
hands-on, practical and active
involvement with their peers, caring
adults and environment.
h) The curriculum of the centre is based on
well-established “creative curriculum”.
a) Location
b) The centre is not free to introduce new
techniques and procedures of care on the
suggestion of parents
c) Less staff-child ratio
d) Not every staffs and assistants present in
the centre are highly qualified
e) Provides child development services for
the families of permanent badged
contractors and the NASA Langley
Research Centre civil servants only
(D’Souza, Sanchez & Lewis, 2017)
Opportunities Threats
a) Expansion in other locations and
countries
b) Allowing children from the normal
American families as well.
a) The existence of some prominent
companies like pre-nursery schools for
children and primary and secondary
schools for young.

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b) Prioritized List: Based on the SWOT analysis
Strengths to Exploit further Weaknesses to mitigate
a) The company has open door policy that
allows the parents to access the LCDC
director any time. This needs to be
exploited further as it showcase open
communication and encouraging
parents’ involvement
b) The curriculum of the centre is based on
well-established “creative curriculum”.
It should be exploited to make children
gain some effective skills and
knowledge in order to face their future
academic courses easily. This
curriculum provides them with the
developmentally appropriate materials
and activities
a) Provides child development services for
the families of permanent badged
contractors and the NASA Langley
Research Centre civil servants only. The
company should allow the normal
American families as well in order to
increase its market demands.
b) Less staff-child ratio. It could be a
potential risk for the company as in
Australia, there is both staff to child
ration based on the ages of the children
in the care (Perlman et al., 2017). Less
staff child ratio indicates less children
per staff and this proves that there is no
growing demand for the care system.
c) The centre is not free to introduce new
techniques and procedures of care on the
suggestion of parents. It should be
allowed to enhance the system and
service of the centre as per the needs of
the parents.
c) Readiness
NASA Langley child Development Center (LCDC) is a nationally accredited program
since the year 2000. It provides its customer with affordable, top quality developmental child
care services for their children. However, the company is also supportive to the families of
the civil servants of the NASA Langley Research Centre and the permanently badged
contractors. The company is been operated as one of the many non-profit organisations in
America. From the SWOT analysis, it is clear that the company has high readiness to
compete in the business environment of the market domain as of the quality service that it
provides to its customers. It provides them with all the flexibilities right from choosing a full-
time, part-time or even a drop in care. Every classroom in the centre follows a regular
schedule that include a good balance of activities like indoor and outdoor activities, active
and quiet activities, small and large activities, individual and group activities and also the

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staff and child initiated activities as well. With the same, there is full-time teacher who
provide full time teaching assistance to the children. Also the curriculum of the centre is
based on well-established “creative curriculum”. This provides them with the
developmentally appropriate materials and activities. The centre also provide parent
conferences and the nutritionally balanced food services including snacks and meals. It is also
to mention in this context that the PAB (Parent Advisory Board) of the centre allows parents
participation in the program activities (Edmonds et al., 2018). The parents who get involved
in this activities establish partnership in between the programs and the families. However, it
is to mention that the centre is not free to introduce new techniques and procedures of care on
the suggestion of parents. Also, there is less staff-child ratio. Not many children are admitted
in the organisation and this is a challenging factor for the brand awareness and expansion of
the company in the new markets. With the same, not every staffs and assistants present in the
centre are highly qualified. The company also provides child development services for the
families of permanent badged contractors and the NASA Langley Research Centre civil
servants only.
2.2.2. External Analysis
a) PEST Analysis
Political Economic
a) Child Care centres being privatised
b) Government initiatives in USA creates
the risk that the child care centres might
fail for delivering the policy
c) Changes in the curriculum with very
short lead times
d) Requirement for self-managing and
financing.
e) Changes in the skills and knowledge
required to become a teacher or staff in
the child care centres.
a) The decisions of the local and central
government in terms of finding can
influence the centre finances
b) Closure of the local industry can
influence the fund raising plans of the
non-profit sectors (Mwai, Namada &
Katuse, 2018)
c) Rates of interest
d) Shortage of materials on the national
market
e) Need of running after school clubs for
the children
f) Movement of the key staffs to the more

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“up and coming schools”.
Social Technological
a) Declination in the birth rate
b) Changes in local population
c) Demographic changes
d) Closure of the local firms that provide
employment
e) Children of the permanent badged
contractors and the NASA Langley
Research Centre civil servants being
admitted to other day care centres
f) Changes in the expected qualification
g) Integration with the local community
h) Risk of highly valued
i) Not given enough training to the staffs
a) Time to manage the IT systems
b) Illegal images on the internet
c) Risk of choosing wrong technology
during the change
d) Change in the required equipment and
standards
b) Prioritized List: Based on the SWOT analysis
Strengths to exploit Weaknesses to mitigate
a) The decisions of the local and central
government in terms of finding can
positively influence the business
b) Closure of the local firms that provide
employment can increase the hiring of
number of staffs in the organisation
a) Changes in the curriculum with very
short lead times. This would increase the
risk of not coping up with the
curriculum by the children and failure in
proper development.
b) Changes in the skills and knowledge
required to become a teacher or staff in
the child care centres.
c) Declination in the birth rate
d) Children of the permanent badged
contractors and the NASA Langley
Research Centre civil servants being
admitted to other day care centres.
e) Not given enough training to the staffs
a) Readiness
From the PEST analysis above, it is clear that Langley child Development centre is at
high risk. It needs to take proper measure in order to mitigate the risks that is facing in its
business environment. Although there are many positive aspects of this child development
centre, still the instability of the business environment can negatively influence the business
operation. As the company only targets the Children of the permanent badged contractors and

8BUSINESS ENVIRONMENT INNOVATION AND ENTREPRENEUR
the NASA Langley Research Centre civil servants being admitted to other day care centre,
therefore it can be said that it focus on a single market. Therefore, declination in birth rate
can greatly influence the business operation and this is why the staffs could also move to
other potential employers in the market (Wainstein & Bumpus, 2016). With the same, the
company should hire high skilled teachers and educators who are potent enough to cope up
with the changing needs of the environment. With the same, they should also have the
potential of changing with the change in curriculum and could assist student very easily.
2.3. Opportunities and Trends
a) Intrapreneurial Opportunities for the company
- Empowering employees to capitalise on their qualities, skills and talents as a means to
providing their organisations with new and fresh insights
- Using intrapreneurship as a means to better engage employees on a personal level, ensuring
that they can bring their best selves to work
- Generate new ideas, processes, programmes and efficiencies that allow organisations to
'jump the curve' or simply gain incremental advantages in achieving their organisational
strategies
However, one of the chosen intrapreneurial opportunity is that of empowering employees
to capitalise on their qualities, skills and talents as a means to providing their organisations
with new and fresh insights. As it is clear from the SWOT analysis conducted above has open
door policy that allows the parents to access the LCDC director any time. However, it is also
highlighted that not every staffs and assistants present in the centre are highly qualified.
Hence, if LCDC gets engaged in empowering its staffs for capitalising their qualities by
means of training and educating them and improving and enhancing their talents and skills, it

9BUSINESS ENVIRONMENT INNOVATION AND ENTREPRENEUR
would provide a new and fresh insights towards the business from its customers (Loy et al.,
2019).
b) Entrepreneurial opportunities for the company
The entrepreneurial opportunities outside the confines of the company are:
- Ability for the teachers to become the business owners. Supporting the experienced
teachers, educators or child care providers to become the business owners can be a significant
entrepreneurial opportunity for the company as well as its staffs. It would also ensure
attracting more new faced for employment.
- Word-of-mouth- When the entrepreneurs offer tool that creates actual value and solves the
problem that the parents of the children are facing, the customers would become the biggest
promoters of the company.
Conclusion
Hence, from the above analysis it is clear that in order to remain sustained and ensure
profitability within its domain, Langley child Development Centre needs to make several
improvements within its business. It needs to provide its staffs with regular training and
development opportunities and must ensure that there is high level of parents’ involvement.
Also, there needs to be open communication and trust in between the parents and the teachers
in LCDC. Furthermore, the director and management in this company must bring in new
policy and improvement in order to grab the intrepreneurial and entrepreneurial opportunities
that are lying in the business environment.

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