Entrepreneurship and Business Development

This document discusses the rationale for launching a business, vision and mission, industry and market review, competitor analysis, segmentation analysis, marketing strategy, market growth strategy, resources for venture, and risk analysis.

ENTREPRENEURSHIP
AND BUSINESS
DEVELOPMENT

Table of Contents
Rationale for the launching business along with vision and mission.....................................3
Review of industry and market..............................................................................................3
Competitor analysis................................................................................................................4
Segmentation analysis............................................................................................................5
Marketing strategy by applying marketing mix.....................................................................7
Market growth strategy..........................................................................................................8
Resources for venture.............................................................................................................9
Risk analysis.........................................................................................................................10
REFERENCES.........................................................................................................................12

Rationale for the launching business along with vision and mission
The new business plan is based upon Tesco who open its physical store by offering
organic skin care product to Thailand. The rationale for choosing this business is such that
Thailand is a developing country and there are lot of middle income economy people who
purchase the products offer at low cost. In the same way, population majorly focused upon
organic products such that they prefer cosmetic product which do not cause any skin reaction
and this in turn improve the brand image (McKenzie and Sansone, 2019). Also, Tesco has a
brand image and strong financial performance of a company, therefore, it is analyzed that
there is a high demand of organic product especially in skin care product. That is why, it is
beneficial for the company to launch such product that helps to meet the requirement of a
public.
Vision:“To become the most highly valued business by offering the best products to their
customers in order inspire and increase loyalty of customers as well as communities.
Mission: To become a champion for customers by providing better quality of customers that
leads to offer quality life along with easier way of living.
Review of industry and market
To offer new product in Thailand, it is necessary for the company to review an
industry. Thus, customer prefer to buy health product, herbs, cosmetic product, thus it is
analyzed that it is beneficial for the company to offer organic herbal cosmetic skin care
product to the customers that assist to meet the customer need. Moreover, the industry is
completely based upon the new and advance technology and Tesco also ensure that it offer
the product online that helps to keep align with a trend (McKeever, 2016). Also there are
71% of the population who wants to purchase the product online and focused upon herbal
products, that is why, choosing this type of product will help the company to improve the
brand image.
In addition to this, investing amount in such type of business is more beneficial
because it helps to grab attention of many customers along with sustaining the brand image.
To determine the micro environment, it is suggested to the company to use SWOT analysis
that helps to examine the strength, weakness, opportunities and threat of a company. Thus it
is as mention below:
Strength:

 Quoted firm has a brand image at international level
 Considered the biggest grocery retailer in UK and one of the leading market share in
the world.
 It keep offering new innovative product and diversifying its stores within new market.
 Get different international awards by using the superior technology that helps to meet
the define aim
Weaknesses:
 It failed its operations in US and Japan because of offering wrong product in wrong
market.
 Due to its fraud Trial and accounting scandal, company’s brand image got affected.
 Though Tesco is a price leader in UK market but its low cost strategy may reduce the
profit margin.
Opportunities:
 Company may uses different strategic alliance with other brand in order to attract
more customers
 It may invest amount to offer products online along with home delivery facilities
(McKenzie and Sansone, 2017).
 It may expand the business in emerging countries like South Korea, Indonesia etc.
Threats:
 Strong competition is considered another threat for Tesco.
 Fluctuation in the economy may also affect the overall financial performance.
Competitor analysis
To determine the competitor analysis of a company, it is suggested to use Porter five
force model that helps to examine the competition. Hence, five forces are as mentioned
below:
Bargaining power of buyers (high):Tesco has a strong customer base because it has
number of brands located in different countries. Now to offer the new product in new
country, company has to develop the strong brand image. Currently the company has its
location in Thailand and having a strong customer base that helps to successfully launch the
new product in market (Ivanisevic and et.al.,2016).

Bargaining power of suppliers (high):thousands of suppliers are working with Tesco
and this shows that there is a high bargaining power of suppliers. Company also negotiate
with suppliers and this in turn increase the profit margin. In the same way, to operate the
business in Thailand by offering new organic skin care product, organization should deal with
suppliers and this in turn helps to support the business in term of financial performance.
Threat of new substitute (moderate):Tesco offer its customers a range of product
with low and affordable prices. That is why, company did not face high threat of new
substitute because if high quality product, whereas other firm may compromise with their
product’s quality. Hence, it is analyzed that in Thailand there is no company who offer the
same product with high quality and that is why, Tesco did not face high threat of substitution.
Threat of new entrant (low):In order to establish a new business in new country,
company require enough capital and there is no surety of getting 100% output. That is why, it
is analyzed that the industry face low threat of entrant (Watson, McGowan and Cunningham,
2018). Through its strength, it is also analyzed that company has a strong customer base
because of having high quality and low pricing style that helps to maintain the customers. It
already have a brand in Thailand where people purchase the product without any bargaining,
so it does not have any threat of new entrant.
Competitive rivalry (High):the industry face high competition because every
company wants to stay ahead in the competition and this in turn improve the overall brand
image of a firm in positive manner. For that, companies uses different marketing technique
that draw attention of many customers towards it. For example by offering new organic skin
care product, company tries to offer innovative product and this in turn improve the brand
image and grab attention of many customers.
Segmentation analysis
Through secondary research it has been analyzed that 38% of Thailand’s market is
occupied with skin care products. That is why, it is a good decision to invest in such type of
business that helps to improve the financial performance. This reflect that there is a healthy
market demand for anti0aging product in various styles with low- to premium positioning. On
the other side, the make-up products are valued at $0.7 billion i.e. 11.32% of the market is
engaged with this. Also there is a trend started in which people only prefer organic or herbal
skin care product that do not cause any negative impact upon their skin (Jukova and
et.al.,2019). Hence, it is clearly reflected that in Thailand, this products are high in demand

and that is why, to meet the same, there is a need to open a physical store in which different
products are offered at low cost so that middle class people will easily afford the same.
Segmentation: In order to open a new business, Tesco uses demographic
segmentation style in which only women are uses the products. Along with this, company is
also segment the people on the basis of age in which 21 to 45 years female will be targeted.
Moreover, it is analyzed that income structure is also considered by the company in order to
target the people in which middle class people are targeted that are easily afford the new
product. Through this segmentation style, company is able to meet the define aim and sustain
the brand image of the firm at global level.
Targeting: From its segmentation, it is clear that company target people on the basis
of age, demographic structure (Fichter and Tiemann, 2020). In the same way, it also uses
undifferentiated marketing style in which it ignore the difference between market segments
and treat the entire market as a single one. Therefore, it is analyzed that to offer the new
product in the market, company uses range of marketing style that helps to attract the
customers.
Positioning:The price of the product is quite low as compared to different rivals and
that is why, it positioned itself in the top which helps to meet the define aim. Therefore, it is

analyzed that through effective pricing strategy company sustain the brand image of the firm
at different level.
Marketing strategy by applying marketing mix
To launch a new product in market, Tesco needs to use effective marketing style that
helps to promote the organic herbal skin care product to customers. For that marketing mix is
used in which 7P’s are used, such as:
Product: Tesco majorly deal with many products but for new business, it offer herbal
skin care product which include lotion, make-up product for bridals that helps to prevent
people’s skin from damaging.
Price: To successfully launch the business, Tesco will uses low pricing strategy in
which it offer the product at low price so that people will easily afford the same. Though the
product is newly launched so it is required to lower down the price and once the customer’s
base increases, company uses competitive pricing strategy.
Place: the place being available for the present new product is both the physical stores
and the online option of purchasing the product and services by the buyers. This is majorly
pertaining to the reason that when the consumer will have the option of purchasing the
product online as well then this will motivate them to purchase it continuously.
Promotion: under this Tesco will majorly focus over the promotion of the product
and services with the help of the social media marketing which is the latest trend in the
marketing in the highly competitive world. in addition to this Tesco will majorly focus over
the sales promotion activity as well in order to market the product and services. For the
company to be successful the most important thing for the company is to make the proper and
effective use of the promotion tools of the company.
People: here comes the people being employed within the company and these need to
be very good and well mannered. This is majorly because of the reason that when the people
will not be much acquainted with good skills then this will affect the working of the whole
company. For Tesco to have good operation it is very important to have skilled and
knowledgeable people within the company so that they can handle the consumer in good and
effective manner (Ibrahim, Alkhawlani and Al-shaghdari, 2017).

Process: the process involved in the operations is the standardized product as this
involves the traditional form of business. This involves consumer coming to the place
viewing the different types of product and then purchasing the some type of product.
Physical evidence: for the physical evidence the company is having the product
which they are offering that is the herbal and organic beauty and skin care products. In
addition to this another major thing for this is the good infrastructure of the store of Tesco for
attracting majority of the consumers.
Market growth strategy
This is also a major important decision which the company needs to take in order to
manage the business for a longer period of time. This is majorly because of the reason that
the competition within the business is very high and if the company will not work in
developing growth strategies then this will increase the working efficiency of the company to
a great extent. Thus, in order to have proper and required amount of growth strategy the most
important thing for the company is to make the use of the Ansoff growth matrix. This is a
type of matrix which assists the company by providing some of the growth strategies which
the company can use in order to grow themselves. This matrix comprises of the following
stages which are as follows-
 Market penetration- this is the strategy under which the company try to increase the
sales but by focusing on the selling of the existing product only in the existing market
only. This is majorly essential because of the reason that this will increase the
penetration in the older market only.
 Product development- under this strategy the company tries to focus on the
introduction of the new product but in the existing market only. In this strategy the
total focus is over the development of the new product only (Khanta and Srinuan,
2019).
 Market development- in this strategy the company majorly, focuses over the
development and entering in the new market. But in this strategy the existing product
is only used in order to enter in the new market.
 Diversification- the major criteria for this strategy is to focus on both the new things
that in with the help of the new product enter into the new market.
Out of all these strategies for the growth of the business the most common strategy adopted
by Tesco is the product development. This strategy is being used by the company as they

have developed a new product of herbal and organic beauty products and skin care products
(Rosnizam and et.al., 2020). This product is being brought in both new and existing market as
this will increase the entrance of the company in the new market as well and this will increase
the market share of the company to a great extent. In addition to this the company must
continuously work on growing and developing the operations of the company to great extent.
The major reason underlying this fact is that the competition is very high and for Tesco it is
essential for continuously working over the growth and development of business.
Resources for venture
For the running of the business the most essential thing for the company is to make
the use of the resources in effective and optimal manner. This is particularly because of the
reason that when the companies are having very limited resources and for the better
functioning and working the most essential thing for the company is to optimally use the
limited resources. The major resources for Tesco to use are as follows-
Human resource- this is the most important resource as this involves the human who
are making the use of the resources in such a manner that they are optimally used. for this
company has hired well educated and ethical employees who work in better and effective
manner in the company.
Technical resources- this involves the use of the different types of technical resources
which are essential for the company to follow and make use of it. Under this comes all the
different types of machines and other types of technical equipment which are assistive for the
company in order to complete the operations of the company.
Financial resources- this is the major resource which is very important for the
company to have. This is majorly because of the reason that when the company will not have
well and effective finance then this will result in not good working of the company (Bahl and
Chandra, 2018). The different sources of the finance are as follows-
Loan from financial institution- this is a source of finance through which the company
borrows money from the different financial institution and other banks. Under this the
company has to pay off some of the interest to the bank or the financial institution for the
money borrowed from them.
Issues of shares- this is another major type of source of finance from which Tesco can
borrow the money by the issue of the share to the general public (Zio, 2018). This is also a

good source of finance under which the shares of the company are being issued and against
that money is being borrowed from the general public.
Risk analysis
For the business to be successful the most important thing for the company is to have
a risk analysis. This is majorly because of the reason that there are many different types of
risk which are involved in the management of the business. For this the risk assessment if
being done which is as follows-
Identifying the hazard- this involves the first stage that is identification of the hazard
that is the risk which can occur during the course of the action. Under this business
particularly the major risk involved is the risk of changes in the need and preference of the
consumers.
Deciding who will get harmed- this is the next stage in which the company identify
that with the above identified hazard what will be the major impact and which people will be
harmed with this risk. Under the above mentioned risk the major person affected will be the
company and the owners of the company. This is particularly because of the reason that when
the consumer will not like the product then sales will be decreased and there will be loss for
the company.
Evaluating the risk- this involves the next stage wherein the company tries to evaluate
the risk that is up to what level this risk will hamper the company and the growth of the
company. Further in this stage the recording of the risk that is what precautionary measure
will be taken in order to take care of the risk.
Recording the finding- under this stage the evaluated risk is being recorded and the
precautionary measures are being recorded. This will be helpful for the company as this will
assist the company that what all precautionary measures are being undertaken in order to
manage the risk (Stevenson, 2018). Thus if anything will happen in future then these can be
used as a base for solving and dealing with the risk.
Reviewing the risk assessment- in this stage comes the review of the risk which was
being assessed in the whole working. This is particularly because of the reason that when the
company will effectively manage and access the risk then this will increase the knowledge of
the company (Sadgrove, 2016). This is particularly because of the reason that the company
has assessed any of the risk earlier then the recorded data can be used for the future

references as well. Thus, this will be helpful in future in case the similar or same type of risk
has occurred un future as well.

REFERENCES
Books and Journals
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Purchase intention towards' Green'Products. A Journal of research articles in
management science and allied areas (refereed), 11(1), pp.1-11.
Fichter, K. and Tiemann, I., 2020. Impacts of promoting sustainable entrepreneurship in
generic business plan competitions. Journal of Cleaner Production, p.122076.
Ibrahim, A.A., Alkhawlani, M.A.A. and Al-shaghdari, F.M., 2017. Customers Desires on
Marketing Mix and It’s Impacts on Tesco (Malaysia). International Sciences of
Management Journal, 1(1).
Ivanisevic, A. and et.al.,2016. Business plan feedback for cost effective business
processes. Advances in Production Engineering & Management. 11(3).pp.173-182.
Jukova, E.E. and et.al.,2019. Planning a new business: typical mistakes of a business plan in
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447.
Khanta, F. and Srinuan, A.P.D.C., 2019. The relationships between marketing mix, brand
equity, lifestyle and attitude on a consumer’s private product brand purchasing decision.
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McKeever, M., 2016. How to write a business plan. Nolo.
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entrepreneurs: evidence from a business plan competition in Nigeria. The World Bank.
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Rosnizam, M.R.A.B., and et.al., 2020. Market Opportunities and Challenges: A Case Study
of Tesco. Journal of the community development in Asia, 3(2), pp.18-27.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Stevenson, M., 2018. Assessing risk assessment in action. Minn. L. Rev., 103, p.303.
Watson, K., McGowan, P. and Cunningham, J.A., 2018. An exploration of the Business Plan
Competition as a methodology for effective nascent entrepreneurial
learning. International Journal of Entrepreneurial Behavior& Research.
Zio, E., 2018. The future of risk assessment. Reliability Engineering & System Safety, 177,
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