Impact of Harmful Surroundings on New Venture Opportunities

The assignment focuses on understanding how people prefer natural or organic products for their safe health and skins due to harmful surroundings. It references various books and journals, including institutional polycentrism, entrepreneurs' social networks, new venture growth, international entrepreneurship, shared authentic leadership, new venture teams, preparedness, cognitive legitimacy, and desperation breeding deceiver. The document also includes a Porters Five forces analysis of the cosmetic industry. It provides a detailed summary of the assignment content, highlighting key points and references.

New venture

Table of Contents
INTRODUCTION...........................................................................................................................1
ENTREPRENEURIAL THEMES...................................................................................................2
BUSINESS IDEA DEVELOPMENT.............................................................................................3
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9

INTRODUCTION
For an individual it is required to having new ideas that assist them to becoming an
successful entrepreneur. In this procedure, market research takes a specific place that determine
them customer's requirement, market need and demand as well. By gathering these ideas an
individual can introduce their thoughts in front of target audience through a new venture. This
report is going to introduce a new venture concept of this is to introduce organic cosmetics
product (Batjargal and et.al., 2013). Range these are shampoo, conditioner, hair serum, kajal, lip
balm, lipsticks and so on. Main motive behind this business idea is that people are becoming
more conscious about their health and skin. Uniqueness in this idea is that organiya cosmetic
company is offering organic products which is good for skin as well as health of the people.
Along with the natural these are in the affordance of everyone because they are using moderate
pricing strategy.
Target market is the market to whom an organisation want to sell their goods as well as it
also include set of customers for whom enterprise directs their marketing activity. It is separated
from the market area s whole by behaviour, demographic, geographic and psychographics.
Organiya cosmetics company target entire market of different age group people including
children's also (Davidsson and Gordon, 2012). Because they are offering organic or nature
products which can be utilise by everyone or different age group peoples. Child are targeted
because these products are natural which cannot harm for their skin.
Value proposition is the term which related to the marketing or business statements that
is utilised for summarizing why customers will purchase their products. In simple term it can be
said that VP is the statement that define what benefits will be gained by the customers when they
buy a specific goods or services from particular seller. Value proposition for Organiya cosmetic
company is “The Easiest way to make skin healthy”.
Customer can be individual or an business which buy goods or services produced by an
organisation. It is primary goal of enterprise to attract customers because they are the one who
create demand for products and services in the market area. Several business firms use some
strategies for attracting customers such as low price or advertisements (Fernhaber, Gilbert and
McDougall, 2014). Organiya cosmetic company divide their customers into small groups who
are similar in some ways such as age, gender, spending habits and interest. Respective company
is not only individual customers they are also approaching Business 2 Business. Because
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organiya is new in business environment and for capturing entire market they have to target other
same sector enterprises. Moreover, they are targeting every age group people because it cannot
harm skin of anyone.
Company can reach to their existing and potential customers with the help of several
marketing channels and campaign. Through increasing networks and partnership organiya
cosmetic can different customers (Hmieleski, Cole and Baron, 2012). Here networks are website,
emails etc.. as well as by doing partnership with several other same industry companies they can
approach their buyers. Social media is also an another technique it includes Twitter, Facebook
and LinkedIn for generating new leads and also for engaging their exiting customers. Apart from
this, paid advertisement also assist organiya in approaching a wider people as well as enhance
market reach. It allows company to form custom messages which are unique and attractive for
the targeted customers. Paid advertisement assist in approaching to the customers in easy and
effective manner. Organiya can give free trials to the customers because everyone love free
giveaways such as free trials or gifts, discounts, promotional sales and so on. This is the best
way for approaching customers or target market and free trails is great for nurturing relationship
and help in turning customers loyalty.
For identifying customers wants company have to do market research because it is the
only way through which current trend, taste and preferences of the existing as well as potential
customers can be identified. By offering products as per the taste and requirement Organiya
cosmetic company can provide customer's wants.
ENTREPRENEURIAL THEMES
Entrepreneurial theme is the idea which entrepreneurship included in individual with
unique personality capabilities as well as characteristics. In simple term it can be said that, there
is requirement of some special skills and ability in individual for becoming successful
entrepreneur (Klotz And et.al., 2014). There are several entrepreneurial theme for organiya
cosmetic company such as opportunity creation and discovering.
Opportunity creation simple means respective company can create opportunity for
themselves in the market of United Kingdom. By adding some more range of products in their
list for infants or child. Along with this Organiya is offering organic cosmetic product which is
rare to find in market area as well as good for health of the people. Their value proposition is
also creating opportunity from them because it is attractive “The Easiest way to make skin
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healthy”. Apart from this, by offering goods at moderate price respective organisation create
opportunity because it is hard to find natural product with low price.
Discovery opportunity is also an entrepreneurial theme in this organiya cosmetic
company can find out from market area. They can produce by keeping in mind customers needs
and wants because there are several people who are facing skin problems. Thus, they can
discover opportunity by manufacturing products which can solve their issue. For instance, hair
fall is the major problem facing the the people to come out of this organiya cosmetic company
can manufacture such shampoo which can resolve this problem.
This business idea is came out because now a days people are becoming more health and
skin conscious (Pollack, Rutherford and Nagy, 2012). So for this organic or natural products
introducing is the best business idea. But in this respective organisation face several gap one of
them major is the people don't have much knowledge about such product. So for filling this gap
organiya can conduct customer awareness program in which they can do several activities which
help in providing knowledge about the organic goods. Customer awareness is a part of a
company’s marketing as well as communications plan. It is the procedure which assist an
entrepreneur in educating customers about their organiya cosmetic enterprise. If this program is
designed well then same will help in better customer engagement as well as protects their
welfare.
BUSINESS IDEA DEVELOPMENT
For introducing new Venture with some unique idea in the market area there is
requirement of requirement of going through step by step procedure. There are six steps which
ensure successful start. First is, go beyond the business plan this means preparing plan is not
enough entrepreneur have to gain direct industry experiences well as can consult with the person
who have depth knowledge and experience (Schjoedt and et.al., 2013). Second is, testing idea
which is necessary because several business fail because they launch without testing new ideas.
Thus, Organiya cosmetic company have to test their ideas before launching in market area. Third
is, owner of respective enterprise must known about the market which require proper research of
market including suppliers, competitors, customers and distributors. In fourth step entrepreneur
have to understand their customers because they are the one who determine success or failure of
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Organiya company. Last step is establishing cash resources which is necessary for running an
organisation and there is requirement of good forecasting cash tool.
Operational plan is that which clearly detailed planning including picture of team as well
as sections and department which will contribute in achieving organisational goals. In simple
term it can be said that, operational plan is the blue print of day to day activity which required for
running an business (Jiang, Cannella and Jiao,2018). Moreover, there is requirement of several
resources for starting new venture i.e., Capital, raw material for production, cash for meeting
daily operations (wages, rent, interest payment etc..). Idea of organic cosmetic product is chosen
by me because people are become more health and skin conscious now a days and they need
organic products for them.
Market research is important for identifying current trend, customers needs and
preferences. Yes, I carried out market research for identifying current market and targeting
customers.
Marketing plan is the part of overall business plan and it is the business operational
document which outline strategy for reaching target market or customers. Vision of the organiya
cosmetic company is to continuously grow and create values in the business environment.
Whereas, mission is to create value for stakeholders by delivering profitable values to customers
as well as satisfying them (van Werven, Cornelisse and Bouwmeester, 2016). Objectives of
Organiya cosmetic company are no side effect of their products, innovation in the existing or
bring something new and reach target market.
Marketing mix of Organiya cosmetic company analyse the product, price, place and
promotion as well as its marketing strategy. Product, respective company is offering organic
cosmetic products i.e., shampoo, conditioner, hair serum, lip balm, kajal and so on. Price, same
enterprise use moderate pricing strategy so their goods will be in affordance of everyone. Place,
it is a new venture they sell their cosmetics item through personal selling in the United Kingdom.
Promotion, Organiya company use catalogues for promoting their products in market area.
Porters five force model is created by Porter and it helps in analysing internal as well as
external factors which affecting the competitiveness of a product or industry (Cosmetic industry
Porters Five forces analysis, 2018). There are five factors which assist in analysing competition
for Organiya cosmetic organisation. First is, Threat of new entry is low for respective industry
because of several factor one of them is huge cost required for entering. As well as developing
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unique cosmetic goods needs lot of resources in terms of R&D and also in manufacturing
process (Anglin, McKenny and Short, 2016). Second is, bargaining power of customers which is
high because of increasing competition as well as availability of cosmetic products from several
manufacturers. Customers of Organiya can force them to reduce their product price and they
have to do this because of available substitute in the market and respective enterprise have to do
this otherwise customers will purchase from their competitors. Third is, Bargaining power of
suppliers which is low in the organic cosmetic industry because of numerous market players as
well as large several suppliers of diverse gods in the market area. There are numerous cosmetic
goods produced by large as well as small scale manufacturers. Because of huge supply,
consumers have the power of influencing the market prices as opposed to the suppliers. Fourth
is, Threats of substitute is high for organiya cosmetic company because there are many
competitors (Lohrke,and Landström, 2016). Last is, competitive rivalry is high because several
new companies are entering in market which result in high level of competition.
Financial plan is the the procedure of estimating the capital required and determining its
competitors. It is the process of designing financial policies which is related to procurement,
investment or administration of fund. Their is requirement of funds for Organiya cosmetic
company. Thus, its budget is mention below:
Budget of Organiya Cosmetic company
Particulars Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Cash inflows
Investment 6000
Credit sales 2000 3000 3000 4500 1500 3500 4200 1000 2000 800 1200 1500
Total inflows 8000 3000 3000 4500 1500 3500 4200 1000 2000 800 1200 1500
Cash outflows
Fixed:
Equipment’s 2000 2500 1500 2000 1200 1500 800 200 300 100 600 300
Variable:
Direct material 300 300 200 300 150 500 300 400 500 100 100 400
Total outflows 2300 2800 1700 2300 1350 2000 1100 600 800 200 700 700
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Net cash flow 5700 200 1300 2200 150 1500 3100 400 1200 600 500 800
Opening
balance 0 5700 5900 7200 9400 9550 11050 14150 14550 15750 16350 16850
closing balance 5700 5900 7200 9400 9550 11050 14150 14550 15750 16350 16850 17650
I will make profit in the by offering unique as well as good quality products to the
customers which is cost effective and in affordance of everyone.
Break-even analysis is the technique utilise for management of production. It is the
graphical presentation of cost at several levels of activity shown on the single chart as variations
of income with the same in activity. In simple term it can be said that, break-even is the point
where company neither earn profit nor loss. Formula of BEP is, Fixed cost / Construction
margin per unit or product
Particular Amount
Sale prices per product 8000
Less: Raw material 1200
Contribution 6800
Fixed cost : Production 4000
Total number of
customers 100
Profit for the year 20000
Desire profit 16400
Break even point: Fixed cost+Desired profit/Contribution margin per unit or
product=(16400+4000)/(8000-1200)= 3 units
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From the above given computation, it has been determined that 280000 is the amount of
wanted profit of the organisation which should be considered by the Organiya cosmetic company
for recovering their fixed as well as variable cost. Under this stage, respective organisation is
facing nor profit and loss situation. This can be advantageous for business firm to operate
activities in effectual manner.
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CONCLUSION
From the above discussion it has been concluded that, for starting a new venture there is
requirement of proper idea which can succeed in the market area. Along with this, before its
establishment entrepreneur have to conduct market research for identifying several factors like
current trend, target customers and market, taste as well as preferences of people. Apart from
this, proper budget is necessary for identifying how much fund is required for starting new
venture. Organic cosmetic product idea is choose because now a days people are becoming more
health and skin conscious. This business idea have several opportunities in the business
environment because of harmful surroundings people are preferring natural or organic products
for their safe health and skins.
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REFRENCES
Books and Journal
Batjargal, B. and et.al., 2013. Institutional polycentrism, entrepreneurs' social networks, and new
venture growth. Academy of Management Journal. 56(4). pp.1024-1049.
Davidsson, P. and Gordon, S. R., 2012. Panel studies of new venture creation: a methods-
focused review and suggestions for future research. Small Business Economics. 39(4).
pp.853-876.
Fernhaber, S. A., Gilbert, B. A. and McDougall, P. P., 2014. International entrepreneurship and
geographic location: an empirical examination of new venture internationalization. In
Location of International Business Activities (pp. 94-136). Palgrave Macmillan, London.
Hmieleski, K. M., Cole, M. S. and Baron, R. A., 2012. Shared authentic leadership and new
venture performance. Journal of Management. 38(5). pp.1476-1499.
Klotz, A.C. And et.al.,2014. New venture teams: A review of the literature and roadmap for
future research. Journal of management. 40(1). pp.226-255.
Pollack, J. M., Rutherford, M. W. and Nagy, B. G., 2012. Preparedness and cognitive legitimacy
as antecedents of new venture funding in televised business pitches. Entrepreneurship
Theory and Practice. 36(5). pp.915-939.
Schjoedt, L. and et.al., 2013. New venture and family business teams: Understanding team
formation, composition, behaviors, and performance. Entrepreneurship Theory and
Practice. 37(1). pp.1-15.
Jiang, H., Cannella, A.A. and Jiao, J., 2018. Does desperation breed deceiver? A behavioral
model of new venture opportunism. Entrepreneurship Theory and Practice. 42(5).
pp.769-796.
van Werven, R., Cornelissen, J. and Bouwmeester, O., 2016. New Venture Founder’s Responses
to Third-Party Feedback. In Academy of Management Proceedings (Vol. 2016, No. 1, p.
16343). Briarcliff Manor, NY 10510: Academy of Management.
Anglin, A.H., McKenny, A.F. and Short, J.C., 2016. The impact of collective optimism on new
venture creation and growth: A social contagion perspective. Entrepreneurship Theory
and Practice.
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Lohrke, F.T. and Landström, H., 2016. Young, small, and imprintable: assessing progress and
exploring future directions in new venture and small business research. Group &
Organization Management. 41(6). pp.703-716.
Online
Cosmetic industry Porters Five forces analysis, 2018.[Online]. Available
through<https://www.ukessays.com/essays/marketing/cosmetic-industry-porters-five-forces-
analysis-marketing-essay.php>
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