Digital Concepts for Business Growth and Development - Desklib

This report explores how businesses can use digital concepts to keep growing and developing. It covers industry analysis, organizational and market assessments, key value chain, and business model canvas. It also explains how to apply qualitative and quantitative models and manage potential risks. The report focuses on Herbal beauty cosmetics, an online store for herbal beauty products. It discusses the company's new business concepts, customer segments, and marketing mix. It also examines the company's organizational and financial feasibility, and its key value chain and business model canvas. The report concludes with recommendations for businesses looking to grow and develop using digital concepts.

Entrepreneurship And Business

Executive summary
While this report will examined about how the business will keep their business through
using various digital concepts. Along with this also help for knowing about what types of things
must be important and make sure for having the high growth and developed. Industry analysis,
organization and market which help the organization for knowing which help them for taking the
high potential things and also make sure for having their system.
TABLE OF CONTENTS

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
New business concepts................................................................................................................3
Assessments of industry, organizational, market and financial feasibility..................................4
Key value chain and business model canvas...............................................................................7
Applying qualitative and quantitative models and how potential risks can be managed..........10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Herbal beauty cosmetics store have taken the huge places for which high profits and
huge amount of customer have selected for shopping with online sector. While selling such
products the business have set up their high range of products and services for which they can
keep their customer with long term. Along with this also make sure for having those effective
segments which might be important for promotional activities in business. The business will take
the huge steps about for developing and make their more customer. While this report will explain
about the business concepts, assessments with various organizational, marketing, financial
feasibility and industry in which they are working. Moreover, examined about the key value and
canvas model for business. Furthermore. Determined about the qualitative and quantitative
models and potential risk managed by the business.
MAIN BODY
New business concepts
Herbal beauty cosmetics segment works for their targeted segments as women. As herbal
business also take place within the online sales for the products. As well as set up more high
targeted for business through having various types of herbal products through which this could
easier for business in taking some measure steps. While having such things this could also make
sure for having some better estimation about those activities which could work with having the
market identification (Krisjanous, Allayarova and Kadirov, 2021). This could also help for the
business and keeping their high process for working with many effective things for which the
process about the customer can developed. While having such things this could also keep
designing about various products and services in cost-effective manner. Being more successful
fashion in market this could led with having or keeping blend with prices. While having such
kind of activities this could help the people for knowing about various things for which customer
can easily buy the products and services.
The goal was not above just to distinguish an apparel thing that should exist, yet
additionally the objective market while for purchasers various other products and services
(Nissilä, 2021). Think about the advantages and disadvantages of focus on specific
socioeconomics. For example, youngsters will in general style-cognizant and might be more
open to web based promote and verbal, they additionally may have restricted assets. Moderately

aged clients might have option to manage cost greater cost point, however they might be less
worried about style and right faithful current brand character. The main assortment delivery to
the market will say an incredible arrangement regarding fashioner, so ensure are creation
something that glad to use calling card going ahead. Whatever planning should be delivered
within or savvy way. Being an effective style planner is consistently a mix between the ideal and
the achievable.
In such kind of things Herbal beauty cosmetics can be conduct through having the
activities which could keep the employee for working with high effective. As business can also
conduct the leverage technology through which they can easily get target customer with having
products such as face cream, Lotus Herbals White glow Skin gel, Vaadi Herbals Tulip Oil and
so on (Moorthi and et.al., 2021). Through which the high segments of the people are keeping
their attraction and make sure for having their major steps. While having such things this could
also essential for taking the support from the online market promotional activities.
Assessments of industry, organizational, market and financial feasibility
There are many assessments that could help the business for taking their growth and
development about the targeted market. This will keep the customer and market with high
position and this will help those various activities about how they will usually deals and make
sure for having high growth and developed with business activities.
Porter five forces
Industry competition:-
It is one of significant determinant intensity inside the business. As quantity of major
parts in the market are rising and there accessibility of reasonable dress brands just as grounded
brands, the opposition from industry very high (Goyal, 2020). Therefore, Herbal beauty
cosmetics needs to zero and use more on promoting just as conveying separated item to its
subject fragment.
Bargaining power of customer:-
It is characterized as force that purchasers hold over market party on accessibility of
choices that the client holds. For our situation, because of huge arrangement of major parts on
lookout, clients have a wide scope of brand to browse. A client has the alternative option but
Herbal beauty cosmetics have set up their online business and make their customer with large
segments.

Bargaining power of suppliers:-
This force that market holds over its providers relying on quantity of provider nearby
inside the business (Adebayo, Okeowo and Adebayo, 2020). Attire industry is a soaked industry,
thus the quantity of providers accessible are huge. All things being equal, many brands have
followed a retrogressive settlement and begun their own back end work.
Barriers to entry:-
It alludes to how effectively Herbal beauty cosmetics organization or generally settled
organization can go into specific industry, for situation, the apparel business. In event that could
led with investigate the business, there are no significant limits that are confronted while
entering, with exception of the way that this manufacturing is capital-serious one.
Threats of substitutes:-
There are consistent changes in patterns of design commerce and the accessibility of
modest apparel from disorderly area, however danger that they there is extremely less.
Subsequently the threat from substitute is low (Kanishchenko and Kuznetsova, 2020).
Marketing mix
Products:-
The item, as far as advertising, alludes to everyone components that go into making the
genuine item attractive. A portion of these configuration, bundling, quality, marking and worth.
while having such kind of products as face cream, Lotus Herbals White glow Skin gel, Vaadi
Herbals Tulip Oil and so on
Price:-
This could keep them for working with reasonable price through which everyone in
connection they can buy any products and services (Išoraitė, 2020). While this will also help the
customer for buying any products and services for which every level of the customer can easily
make their order.
Place:-
As Herbal beauty cosmetics have their lace within retailing sector through which they
can easily make this connection with various customer. Along with this will be easily
communication for taking feedback and placed order.
Promotions:-

Herbal beauty cosmetics can make the use of highly promotion activities through which
they can easily come to know about some of new trends and make sure about various types of
products and services for their customer (Purohit, Paul and Mishra, 2021). As they make their
connection through social media, emails, word to mouth, newspaper and so on.
Organizational feasibility
Herbal beauty cosmetics will make the highly use of proper management for their
organization through which they can easily come to know about how to manage and whom they
are required to keep connection. Autocratic and democratic leadership styles can followed by
Herbal beauty cosmetics fashion (BAHAR and KÖROĞLU, 2020). That might be keep them for
working with high estimation about those process which will help them for knowing about how
usually they are working and keeping more high condition. As Herbal beauty cosmetics make
the effective team working through which they can make their customer high range and easily
make sure for which they are usually dealing. While having such kind of things this cold led
them for working with high estimation about those activities which keep them for having their
further process. While such kind of activities this could be helpful for them in keeping those
team working with proper communication. In following up the leadership styles Herbal beauty
cosmetics can work proper and among them for having their communication from their customer
can be easier. While having such things this could be understandable about various situation that
will make sure about their high estimation and also keep them for having proper working process
(Tefera, 2021). This make them for taking proper decision making and that might keep them for
working with high and special concepts. While many things are to be required for them should
be completed while by managing their work.
Financial feasibility
(in %)
Assets Liabilities
Current
assets
Current
liabilities
Total cash 10.27 10.24 9.34 Short term-
debt
5.97 7.27 7.70

Receivables 10.55 10.87 10.52 Accounts
payable
6.88 7.31 6.67
Inventories 2.16 2.23 1.92 Taxes payable 3.72 2.85 4.15
Deferred
income taxes
1.38 1.38 1.19 Accrued
liabilities
8.98 8.27 8.05
Prepaid
expanses
3.72 4.51 3.38 Deferred
revenues
10.21 10.48 10.03
Other
current
assets
14.33 14.51 15.13 Total current
liabilities
35.75 36.15 36.59
Non-current
assets
Long term
debt
19.26 19.63 20.21
Property,
plant and
equipments
Deferred
revenues
3.23 3.32 3.77
Gross
property,
plant and
equipments
35.51 34.46 33.97 Pension and
other benefits
14.08 15.78 17.13
Accumulated
depreciation
-23.09 -22.54 -22.23 Other long
term liabilities
7.25 7.73 6.38
Net property,
plant and
equipments
12.42 11.92 11.74 Total non-
current
liabilities
43.93 46.53 47.59
Equity and 5.09 4.20 4.21 Total 79.69 82.70 84.18

other
investments
liabilities
Good will 22.16 22.51 24.53 Stakeholder
equity
Intangible
assets
3.07 2.91 3.18 Common
stock
40.03 41.34 42.03
Deferred
income taxes
2.84 3.01 3.33 Retained
earnings
81.56 90.06 98.68
Other long
term assets
12.00 11.70 11.54 Treasury stock -84.76 -95.30 -103.29
Total non-
current
assets
57.59 56.26 58.53 Accumulated
other
comprehensive
income
-16.52 -18.80 -21.61
Total assets 100.00 100.00 100.00 Total
stockholder
equity
20.31 17.30 15.82
payback period:
initial investment 100000 with having the annual payback of 20,000. so this could be calculates
such as 100000/20000 = 5 years.
Key value chain and business model canvas
Herbal beauty cosmetics will have the sustainability partner, ecosystem partner and
technology partner. This could having their rights for which the partners can keep their working
process and make sure about their various activities which could keep them for working things.
Key activities developing about the community building, brand network, partnership
development. While having such things this will help the business for knowing about their

community building and make sure that will help Herbal beauty cosmetics will take place about
their high business and helping out to their customer (Ambari and et.al., 2020). Key resources
online community, brand network, scalable platform while this will help Herbal beauty
cosmetics for taking their measure steps about their hard-work. This will come to know about
their high satisfaction for their customer and that could help them for knowing about how usually
they will deal with any situation. Value preposition about creative outlet for fashion that could
be create more high styles and connect more people. While having their more facilities about
various things and make sure for having their more concepts and connecting more people.
Business model canvas-
Key partners
cosmetic and supply
companies.
Social media
beauty magazines
Key activities
fulfilling customers
demand.
Providing
personalised services.
Value proposition
personalised products
and beauty experts on
which customer can
trust
Customer
relationships
online
community
interactive
service.
Custome
r
segments
women of
age group
between
16-50.
Key
resources
industry
experts
Channels
website
retail store
social media.
While this could help the business with selling out some profits. Key partners for herbal beauty
which could keep increasing connection through using social media and beauty magazines. Key
activities which keep customer demands and keeping them with some personalized service.
Value preposition which could keep business products and services for some better experts
beauty cosmetics products. Customer relationship for the purposed business that could keep the
customer using online community. Channels have been used for the business which could keep
the service towards the retailing store.
As Herbal beauty cosmetics also required for understanding about the better customer
relationship while through which they will easily make social engagements, brand support and
content about their styling sourcing. Alongside, this organization used their various channels
such as social media, partner programs, online networks and words of mouth. While this will

help the organization for working with high estimation and try to keep them for working with
many concepts (Carvalho, Galina and Sánchez‐Hernández, 2020). Customer key trend, sellers,
every day shoppers about the targeted customer in market. Herbal beauty cosmetics will make
sure about selling their brands products and services along with this selling their keeping high
strength about their products. Cost drivers while working with global expansion, customer
services and community management for which they can work and keep out their customer target
completed. Revenue streams taking their sponsorships, ads, data and analytics for having the
high sources and make their sources about various terms. While this could also led them for
working with high process and that could led them for having their proper estimation.
Value chain model
Value chain is a business model which describe the activities required to make product or
services. It has five components which are as follows:
Inbound logistics:
It involves functions like managing inventory, warehousing, receiving etc. Herbal beauty
cosmetics which is the cosmetic brand manage, receive, shelf and take inventory in regular
store hours only. This can help company in saving cost in terms of employee salary
(Faroukhi and et.al., 2020).
Operations:
it consists of process in which raw materials are transferred into finished goods. Herbal
beauty cosmetics should bring unique product in the market so that can attract more
customers. Proposed business select good quality of raw material and have experts which
convert those raw material into herbal cosmetics. Company manufacture such products
which cannot be find easily in other stores because in stores mainly chemical based products
are available .
Outbound logistics:
It means distributing products to its end users. As it is offline and online store, so they
provide home delivery to the customers. Customer can place online order and company will
deliver products at customer's place. They also does in store tastings.
Marketing and sales:
It involves those activities which can create visibility of the company and will be helpful to
company to target their customers easily. It can be done through advertisement, pricing,

promotion etc. for promotion company do not rely on traditional marketing because they
hardly does this. Herbal beauty cosmetics is using social media and digital marketing in
order to promote their products. Company very well knows the power of social media
marketing. As this marketing is cheap and also helps company in targeting its potential
customers. Users on social media is increasing so company will get chance to attract more
customers (Chen, Liu and Zhu, 2018).
Service:
It includes activities which improve customer experience like customer service, refund,
exchange etc. Herbal beauty cosmetics should focus on providing good quality customer
service because when customer will get good after sale service then only there are high
chances that they will retain with company and will also bring new customers.
Applying qualitative and quantitative models and how potential risks can be managed.
There are various manner in which business risks can be managed. Some of them are as follows:
Prioritize:
This is the initial step of risk management plan which is prioritizing risks or threats. Start
up company like Herbal beauty cosmetics can prioritize risk by using universal scale. And those
risk which have identified and given top priority then their prevention plan should be made (Jobe
and Goldenberg, 2018). Those risks which are causing financial damage they should be written
on priority basis and also measures should be taken in order to avoid such risks.
Buying insurance:
Purchasing insurance is the safest way which business can use so that they can get
financial coverage when there is any mishappening. Every business chose insurance as per their
needs and it is based on its liabilities and legal requirements. Some of the insurance which start
up companies must take are professional insurance, disability insurance, operations insurance
etc. if the proposed business will buy insurance then it risk will get transfer to insurance
companies which can be for small or big costs. Insurance will also provide some sort of relief to
the company that they are safe in terms of finance as there is insurance company which will
provide them security.
Limiting high risk customers:
Every start up must have implemented this rule that those customers who have poor
credit should give payment before time. Taking advance from such customers will provide safety

to company. As it will be helpful in reducing complications. For this start up company should
have come with procedure so that they can identify poor credit risks in advance. Once company
will identify such customers then it will easy for employees to identify that which customers
pays in time and which do not. So those customers which delay in payment company can take
advance payment from them (Munoz and et.al., 2018).
Appointing risk management team:
This is one of the important thing which should be done by start up so that risks can be
managed. Rather to appoint employees from outside company can appoint current employees to
manage risk management team. It will benefit to the company as there is no need to give salary
which they has to give if they will appoint new employee. Risk management team will have
knowledge to identify risk before it will cause massive destruction to the company. Once risks
are identified then solutions can be drawn to avoid such risks.
Control growth:
It is very important that start up companies should give training to their employees. As
newly joined employees are highly motivated so they can take unnecessary risk and that can hurt
company's reputation. Despite of that company should train their employees and ask them to not
concentrate on quantity but on quality. By doing this organisation can save themselves from the
risk of reducing sales which company can experience from various sales tactics which customer
does not like. It is said that innovation will be helpful in company's growth but innovation should
not be too fast. As it is not essential that the new products or services which company will bring
will be always successful (Werning and Spinler, 2020).
Implementing quality assurance program:
If company is dream for sustainable business then good company reputation is very
important. It has observed that customer service is important and rather it is key to success.
While launching any products or services in the market company have to ensure that their quality
has tested so that high quality of products must be delivered to the customers. If company will
analyse products carefully then they will get chance to do adjustments. When each and every
product will get tested before launching in the market then it will be easy to identify defected
products. Defected products should not be reach to customers because it can damage company
reputation and also company can lose that customer.
Value tree model- it is the quantitative model.

costs- The costs which is required to start online business is £ 50000. as new business has to
select e- commerce platform from where they will sell clothes. When online business register
themselves at any e commerce platforms then these platforms charges money from them which is
estimated £ 8000 . Listing every product on e commerce platform is not free. It will comes with
charges. Marketing costs will also applied which is estimated as £ 10000. As every business
whether online or offline required marketing. So this will helps in managing finance related
risks.
Benefits- online selling increases visibility of the products among customers. Customers can
conveniently purchase clothes from anywhere. Estimated revenue of business is £ 20000.
Market survey-
Market survey is the qualitative model which new business can use after lunching their products
in the market. It should be done after few months in order to check the awareness of customers
about the newly launched company.
CONCLUSION
From the above report it had been concluded that, new business set up must be required
with having the better investment and that financial support. As they can easily take their various
arrangement and also set up with online business. Qualitative and quantitative research that could
help the business for knowing about how they can easily managed the risk and make their
customer for long term keeping. In such kind of things this might be also important for taking the
high effective process and make sure for having their better estimation about those terms which
could make the customer attraction. Business canvas model and value chain help the business for
knowing about the market position and keeping them their employee for working with more
effective manner. Industry and organization feasibility must be important for taking their high
potential terms and make sure for having their some better growth and developed.

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