Entrepreneurship and Business Development

This document discusses entrepreneurship and business development, focusing on the rationale for launching a venture, market analysis, competitor analysis, marketing strategy, and market growth strategy. It also covers the resources needed for the venture and risk analysis.

ENTREPRENEURSHIP AND
BUSINESS DEVELOPMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Rationale for launching venture and its mission & vision statement..........................................3
Reviewing of sector and market with better understanding of variables in external
environment including a macro or micro analysis of market place............................................4
Competitor analysis and competitive benefits of new car tracking device.................................5
Segmentation analysis and target consumers .............................................................................6
Marketing strategy in context of new car tracking device by using 4ps of marketing mix........8
Market growth strategy...............................................................................................................9
Resources needed for venture including source of finance.......................................................10
Risk analysis and measures to overcome major risks...............................................................11
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................13
Appendix........................................................................................................................................14

INTRODUCTION
Business development is defined as process of creating value for entrepreneurs and other
stakeholders of a company. It may summarize as creative idea, or initiatives that help to make a
venture successful. The current assignment will be based on new idea in term of technology-
based product, which take forward into a startup venture. The study will explain rationale for
launching new business and its vision as well as mission. It will define review of sector and
market with a clear demonstration of understanding of variables in external environment
including a micro/ macro analysis of market place. Furthermore, the report will justify,
competitor analysis and highlight competitive edge of new product. It will explain the reasons
behind success of new item in market and will also describe segmentation analysis, market size
and growth and target customers. Moreover, the assignment will clarify marketing strategy by
using 4ps and market growth tactic. Lastly, the study will explain key resources required for
business including source of funding and risk analysis.
TASK
Rationale for launching venture and its mission & vision statement
In recent time, many people aspire to launch new and innovative product/ services and to
start up a business, which is quite beneficial for them. Behind the formation of companies or
production of new item, there are particular motivation source available. Here, car tracking
devices is a new idea which may take steps towards converting into a form of startup business.
The main reason or motivational source behind launch of this new business is to satisfy the needs
of car lovers in term of preventing their cars from being stolen by others. Not only because of
this reason, the new business is launch in order to gain competitive advantages and to attract
customers who prefer to purchase tech savvy products.
Vision-
The vision of new business is to gain the attention of profitable customers and support
them in term of preventing their favorite cars from being stolen by the other people.
Mission-

The mission of startup venture is to generate revenue and increase profitability, while
operating business within automotive sector.
Reviewing of sector and market with better understanding of variables in external environment
including a macro or micro analysis of market place
Macro environment analysis it the best way through which a company identifies possible
growth opportunities and threats that may impact on its sector and business as well in two
different manners first one is positive and second is negative (Chaouk, Pagliari and Moxon,
2020). PESTLE is one of the most effective strategic frameworks. Here, it is used to conduct
macro analysis in context of reviewing automotive sector and overall market as well as
comprehending key variables.
Political factor-
Political stability or instability, trade restrictions and tax policy are included in category
of political factors. High tax rate put negative impact on import and export process of business, it
affect the procedure of raw material purchase and supply of new car tracking device in market.
Due to this factor, management feel forced to pay extra charges on each trade activity, which is
not possible for startup business to do.
Economic factor-
Inflation, unemployment rate, income rate of people, and other economic crisis are
included in list of economic factors (Baek and et.al., 2020). In case of startup business, high or
moderate unemployment rate is the key variable or opportunity, which venture may grab while
operating within automotive sector, UK. Due to this force, company is able to hire skilled and
experienced workers who are able to manufacture a car tracking device.
Social factor-
Changing people’s preferences, socio cultural or market trends are the most appropriate
examples of social factors (Ares, 2020). In recent times, instead of visiting door to door, people
are now following trends in term of using technology in context of product purchase or services.
This key trend put positive impact on startup business in term of gaining the attention of

individual buyer, who prefer to use technology to track their own vehicle without going out of
comfort zone or home.
Technology factor-
Technology advancement also put positive impact on automotive sector growth and
success of companies that are operating under this industry or starting a new venture, to fulfil the
emerging needs of customers.
Environmental factor-
Customers and government concern in regard to sustainable environment driving the
attention of automotive sector and its ventures towards reducing their carbon foot print. This key
variable in external environment, put positive impact on progress of startup business as it help to
drive its focus on packaging car tracking device by using recyclable materials such as paper bag
etc.
Legal factor-
Changes in laws related to intellectual property, workers, consumer safety and marketing
operation, may affect negatively upon current management and decision making practices of
automotive sector.
Competitor analysis and competitive benefits of new car tracking device
In order to conduct, competitive analysis Porter’s five forces models is used, as it help to
highlight competitive benefit of new car tracking device as product in market (Chakraborti and
Dey, 2019).
Bargaining power of suppliers-
The degree of this force is low, because number of suppliers are available in the
automotive sector who want to work with new and profitable business. It may define as
competitive benefit of new car tracking device in term of producing it in effective and systemic
manner.
Bargaining power of consumers-

The extent of this force is strong because accessibility of substitute products may give
power to each buyer in term of tracking their vehicles by using mobile applications. It may put
negative impact on success of new car tracking devices.
Threat of new entrances-
Threat of new company’s entrances is low because large amount of capital is required
and a firm need to pay when it wish to enter into automotive sector with new or existing
products, which is not possible for each organization to do. Due to this factor, new car tracking
device may get success in market without facing any major issues.
Threat of substitute products or services-
Threat of substitute items is high because there are many applications in market has been
used by people for tracking cars or other vehicles. Furthermore, it may impact negatively upon
success of new devices in automotive sector in term of limited sales.
Competition between existing organizations-
High competition between existing companies put negative impact on startup business
and its new car tracking device sells in market. Intense rivalry drive the attention of manufacturer
towards conducting creative thing which allow them to produce the top standards devices that
people may utilize to track their cars, without using mobile phones or any application.
Reasons-
The main reason behind success of new car tracking device in automotive sector and
overall market, is its demand and requirement from sides of many people who want to track their
vehicles after parking or in case when they forget where car is parked by them. This product is
produce according to market trend and customers preferences, which contribute to make it
successful in term of increasing sales after-market launch.
Segmentation analysis and target consumers
Market segmentation analysis is defined as study of consumers, which a company or
business conduct in order to identify profitable buyers and divided them into smaller group
(Zhou, Zhai and Pantelous, 2020). In the business world, there are varied forms of models or
frameworks accessible that has been used by many organizations to target potential buyers. STP

is the best model which utilize to conduct market segmentation analysis in systematic and
appropriate manner.
Segmentation-
Segmentation is described as procedure of dividing potential buyers or market into
particular groups by using specific strategies. In context of new car tracking device, demographic
and psychographic segmentation strategies are the best, through which management successful
target consumers who are interested in purchase of this new product and seeks to buy from
longer period of time (Nandapala, Jayasena and Rathnayaka, 2020).
Targeting-
Market targeting is considered as process of determining the most profitable and
attractive segments from above phase of STP model. By using undifferentiated targeting
strategy, administration may target all the people because everyone want to protect their vehicles
from being stolen. Through this tactic, startup business may target entire population, which is
quite beneficial for it in term of increasing sales.
Positioning-
It is one of the best marketing strategies that a company either small or large use.
Positioning also refer to as product positioning which define how an organization perceived in
mind of buyers relative to rivals. Business may influence the mind of its target customers and set
top position in their mind related to new car tracking device, which they manufacture especially
for everyone who have vehicles.
Market statistics (Size & growth)-
The size of market is quite vast in term of number of customers, disposable income level
of buyers etc. All these elements provide demographic information to manufacturer which they
may use in context of manufacturing new car tracking device. By conducting above competitor
analysis, it has identified that there is excellent business growth chances accessible in automotive
sector.
Who will buy device especially produce to track cars-

Car tracking device is useful product for everyone and they will buy it to track luxury and
other types of vehicles as well as to protect it from any ethical activities such as stolen by thief. It
does not require a lot of place to use, people may carry this small device in pocket.
Marketing strategy in context of new car tracking device by using 4ps of marketing mix
Product-
A product is the main source of companies, which they may use to provide value to target
market and retail them for longer period of time. Management in context of new car tracking
device adopt new tactic. For example, they may design new product by considering the comfort
zones of people in term of shaping it in small size, which make it easy for individual customers
to carry. Administration may focus on quality of device and add valuable features within it, like
mini charging point etc.
Price-
Price is the key element of product or service success within any market/ sector. It help in
term of driving the attention of consumers and retaining them with a brand for longer. There are
number of pricing strategy available, which management may use in regard to new car tracking
device before launch (Wu, Liu and Wang, 2020). They may utilize competitive pricing strategy
for new device, which help to gain competitive advantages and build strong customer base,
which in return maximize sales and profitability of startup business within automotive sector.
Place-
In order to gain the attention of profitable buyers and satisfy their needs, management
needs to sell its new car tracking devices by using specific location in the UK. They may
establish outlet, where consumers easily reach and buy a brand new device exchange of money
to track vehicles and protect it from other people. Through own store, administration or startup
business owner may sell its new item in market successfully. Furthermore, they may create an
official online accounts as well to deliver goods at home and to promote it all over the world.
Promotion-
Product promotion is the best and most important marketing activity, which in return
provides a lot of benefits to marketers and owners in term of increasing web traffic, customer

base and sales level. Social media marketing is the most effective and beneficial tactic that
management may use to promote their new car tracking device in market at national to
international level. In today’s period, people prefer to collect any kind of information via social
media sites, because it is cost effective and non- time consuming approach.
Market growth strategy
A growth tactic is a plan of action that permit an owner or entrepreneur to achieve a
higher degree of market share more than other companies. In the business world, there are
several types of market growth strategies available that used by many entrepreneurial companies
while starting their businesses and during time of progress, under performance and consolidation.
Strategic alliance-
It is one of the most effective and commonly utilized market growth tactics, which
management may use while starting up new venture within automotive sector (Ko and et.al.,
2020). It is a kind of legal arrangement or agreement conducted between two organizations either
small or large to undertake a common beneficial project or profit, after selling innovative
products in market. By using this market growth strategy, management may conduct the most
important activity such as business agreement with other firm.
Product development-
Furthermore, along with above market growth tactic, management may consider this one
as well during period of growth because it contributes to increase profits margin and sales level
even better than last years or months. According to this strategy, administration drive their
attention towards produce a new product with more attractive features.
Joint venture-
It is one of the common market growth strategy that many organizations consider under
performance. It a kind of business contract in which two or more parties agree to share their key
resources for aim of accomplishing a particular task or project which in return provide valuable
benefits to both of them.

Resources needed for venture including source of finance
While starting a business or producing a new product, different types of resources are
required, which help to gain competitive advantages and contribute to build strong brand image
in market. In context of venture, skilled employees are required who considered as important and
valuable resource for any firm because they support a company to satisfy consumers and sustain
for long in specific sector or market.
Raw materials such as GPS software, wires, screws, bolds etc. are also included in list of
resources that are required for venture which they may use to manufacture new car tracking
devices for target customers.
For startup venture, intellectual, human, leadership, effective management and financial
resources are also needed along with above elements, which allow an entrepreneur to establish a
profitable business in automotive industry. Administration may consider certain options to get
appropriate amount of money.
Source of funding-
Bank Loan-
It is one of the most common and reliable source of finance, which management may use
in context of starting a new venture that plan to sell car tracking devices in market (Le, 2020).
According to this approach, owner needs to apply for a loan in form of application which get
approve by the Bank manager. This source is appropriate for startup business because it provides
money by following the legal framework which reduce any risk in term of unethical practices.
Angel investors-
An angel investor is also known as private investor who is able to provide financial
support to startup companies which in return cater benefits to them in term of money. Angel
investors may consider as high net worth individual who cater financial support or backing for
many companies especially startup ventures. They may operate successfully from inside a varied
concept, they offer companies capital needed to obtain ball rolling and in exchange, they obtain
an ownership share in net profits.
Family and Friends-

Many people in the world are using this source of funding, because it is easy for them in
context of collecting financial resource in term of money.
Risk analysis and measures to overcome major risks
It is the best and most useful procedure because risk analysis help to identify and manage
potential issues that may undermine key ventures initiatives. It includes activities in term of
examining how work outcomes and objectives may modify due to the effect of risk. Project risk
analysis model is applicable and relevant in regard to start-up business, as it drive the attention of
management towards those common factors that may put negative impact on process of
establishing new venture and launch new car tracking devices in mini version. The model utilize
Monte Carlo simulation to schedule profits margin and generate cost from user input cost, risk,
schedule and uncertainty data.
Through this model, varied forms of risks may determine which negatively impact the
way management take decision and action to start up new venture within automotive sector.
According to concept, financial risk is one of the major challenge that each company has faced
at the mid of production process or other activities. This venture risks include credit extended to
consumers or own organization's debt loan. Another risk that management may face is
operational risk, which may happen externally/internally or include a combination of elements.
It is considered as unexpected act that may natural occur due to mistakes from workers side or
because of time-consuming activities.
Both these risks may treat appropriately, when management take right action. For
example, to overcome financial risk, they may create a schedule in which each activity is
mention with their cost. Furthermore, in order to overcome operation risk, management may
create a pre plan and divided responsibilities between existing responsible people.
CONCLUSION
By summing up above discussion, it has been identified that by launching new car
tracking devices in market, investor has gained a lot of profits in term of increased profitability,
productivity and also obtained competitive benefits as well. It has been identified that by taking
right action and decision, management has sustained in market for longer period of time by
selling devices of car tracking, which is one of the emerging technology-based products that

many people in the world seeking to purchase. Furthermore, from above study it has been
concluded that by choosing the right funding source, administration has manufactured the top
quality devices for people which each of its buyer like the most.

REFERENCES
Book and Journals
Ares, M., 2020. Changing classes, changing preferences: how social class mobility affects
economic preferences. West European Politics. 43(6). pp.1211-1237.
Baek, C. and et.al., 2020. Unemployment effects of stay-at-home orders: Evidence from high
frequency claims data. Review of Economics and Statistics. pp.1-72.
Chakraborti, S. and Dey, S., 2019. Analysis of competitor intelligence in the era of big data: an
integrated system using text summarization based on global optimization. Business &
Information Systems Engineering. 61(3). pp.345-355.
Chaouk, M., Pagliari, R. and Moxon, R., 2020. The impact of national macro-environment
exogenous variables on airport efficiency. Journal of Air Transport Management. 82.
p.101740.
Dalpiaz, F. and Parente, M., 2019, March. RE-SWOT: from user feedback to requirements via
competitor analysis. In International Working Conference on Requirements
Engineering: Foundation for Software Quality. (pp. 55-70). Springer, Cham.
Hatzijordanou, N., Bohn, N. and Terzidis, O., 2019. A systematic literature review on competitor
analysis: status quo and start-up specifics. Management Review Quarterly. 69(4).
pp.415-458.
Ko, W.L. And et.al., 2020. The effects of strategic alliance emphasis and marketing efficiency
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Research. 120. pp.453-461.
Le, T.D., 2020. The interrelationship among bank profitability, bank stability, and loan growth:
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Nandapala, E.Y.L., Jayasena, K.P.N. and Rathnayaka, R.M.K.T., 2020, December. Behavior
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In 2020 2nd International Conference on Advancements in Computing (ICAC) (Vol. 1,
pp. 333-338). IEEE.
Wu, L., Liu, L. and Wang, Z., 2020. Competitive remanufacturing and pricing strategy with
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Zhou, J., Zhai, L. and Pantelous, A.A., 2020. Market segmentation using high-dimensional
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Appendix
Macro analysis Factor
Political factor High tax rate
Economic factor Unemployment rate
Social factor Market trends
Technology factor Advanced technology
Environment factor Carbon foot print
Legal factor Employment and other types of laws
4ps of marketing mix Strategy
Product Focus on product quality and size
Price Competitive pricing strategy
Place Own outlet in UK
Promotion Traditional and digital marketing tools
SWOT analysis
Strengths-
 Company is able to create innovative
ideas.
 Its skilled workforce is capable to
innovate something new and quite
Weaknesses -
 Poor planning is the key weakness of
firm that impact negatively.
 Lack of leadership

different from other brands.
Opportunity-
 Technology advancement is the biggest
opportunity that firm may grab to
design device successfully.
 Business expansion is another chance
that firm may consider to increase
profitability.
Threat -
 Intense competition in automotive
sector is the biggest threat for
organization.