Entrepreneurship and Innovation

This presentation discusses the concept of entrepreneurship and innovation in the context of a smart home technology company. It covers the company description, target customers, solutions offering, objectives, vision, mission, goals, opportunities, industry and market analysis, marketing mix, strategy, SWOT analysis, PESTEL analysis, team structure, marketing plan, financial plan, break-even analysis, cash flow statement, profit & loss statement, and balance sheet.

ENTREPRENEURSHIP AND
INNOVATION

General company description
 Smart home technology makes the life easier and more convenient.
Henceforth, it is equipped with special platform enabling the inhabitant to
control all functions remotely and program an array of automated home
electronic devices.
 Additionally, the major purpose is to serve deeper engagement on term that
how this entity enables safety and security for the connected home that
assists to create the unique user experience.
 Therefore, the major key drivers of the Smart home market are as
enhancement in need of convenience, safety, demand for energy efficient
solutions, to get control over lighting facilities, security with technical
advancement and home entertainment.

Targeted customers-
Targeted customers Functionality Solutions offering
Communication service providers It will assist in providing the one
solution.
The offering will be provide as
single, integrated solution that takes
the advantage of internet of things.
Resell this services to other B2B
customers such as owner of the real
estate etc.
Mobile application and web for
business to business customers.
This helps in order to provide
service to end users.
It aids in making business decision
for the customers.
Corporations and interior designers Interior designers will define that
where to have the use of home
automation tool products and at
which place that needs to be placed.
It will help2. EXECUTIVE
SUMMARY s customers to know
about it usage so that utilization of
the service can be done effectively.
Individual upper middle class Home owners can works as to
association managing the resources
such as gym, library, swimming
with the use of M2M solutions.
Henceforth, it will be supported in
web application and mobile
application.
Real state companies The new houses can be enabled with
the any or all of the offerings such
as safety, energy management,
waste management and security etc.
Solutions support to the any
industry vertical.

General company description
Objective-
 The main objective of the firm is to come up with the innovative services
and to produce the useful commodities that aids to enhance the productivity
and profitability of the enterprise. Hence, innovation and creation is the
two tool that aids to develop the image of enterprise within the market.
.

CONT..
Vision
 To build the largest specialized technological lifestyle network by
providing and innovative solutions for home and building all available in
one roof.
 The vision of the company to make the core functions of the home more
smarter, efficient and more comfortable.
Mission
 To provide the highest standard of living by providing them utmost
concepts and solution using the reliable and renowned commodities while
demonstrating innovative devices to exceed customer expectation.

Cont..
Short term goals-
 To attract the customer with innovative features.
Medium term goal-
 To enhance the sale of enterprise by attracting customer with innovative
facilities.
 To expand the business working by adding new features to product and
services.
 To reach out the maximum customers to enhance the growth within
enterprise.
Long term goal-
 To reach out the customers to develop a system that can be easily installed,
cost efficient and able to provide genuine home automation to consumers.
 To listen the complain of customers so that modification can be done in
commodities.

Opportunity
Why you started?
 Home automation system are designed to integrate all kind of home
devices, lights, heating and security system. Henceforth, connected home
solution consist of set of devices and services that are connected to each
other.
 The most of the individuals are professionally working in this present
scenario so this kind of facilities will be beneficial for them to control the
activities.

Industry & Market
 A- Z smart home solutions gives the opportunity to meet with other local
business owner and the network.
 A-z home solution will select the market that is covering of the number of
customer and local residents.

Geographical segmentation
 It means dividing the groups into the subgroups in the manner as age,
gender, values etc. However, segmentation can be based on the income of
the customer.

Psycho-graphic segmentation
 Innovators- At this, there are number of the influential individuals with
whom the average person can checks out the process of innovation.
 Early majority- Under this group tends to deliberate before adopting the
new commodities. This is very crucial to legitimising an innovation so that
whole process can be conducted effectively.
 Late majority- Under this, new ideas can be adopted after the process of
innovation.

Behaviour segmentation-
 Purchase occasion- It can be differentiated on the basis of product and
services. It is crucial to identified the needs and wants of the customers.
 Benefits sought- The key points that needs to be considered are as high
quality, good taste, speed, sex appeal etc.
 user status- Potential buyers may be classified as regular users, occasional
user and non user.

Marketing mix
 Product- A to Z smart home solutions works towards to full-fill the need
and wants to the customers by providing better home automation tool.
Therefore, unique advantage of the commodities can determine and this
aids to make unique image within the market.
 Price- It is one of the technical advancement in which product offering is
established at the time of making some pricing decision. Therefore, the
price determination has huge impact over the profit margin, supply,
demand and strategy of marketing.

Cont..
 Promotion- In order to promote the awareness of home automation tools it
is crucial to undergo with elements like advertisement, public relation,
social media marketing, email marketing and search engine market etc.
With help of using better advertisement tool the entity can promote its
product and services in better and efficient mode.
 Place- The terms marketing is all about the putting the right commodity for
the right price at the right place at the right time. Henceforth, port-locked
market will be selected so that it can be easy to reach customers, local
residents etc. This aids to gain competitive advantage within the market.

Strategy
 For competing into market A-Z Smart Home Solution use innovative ideas
to gain advantage in the marketplace. Identifying the needs and wants of
customer will help in increasing profit for future.

Long term planning
Goal Strategy Resources Time period
Gaining competitive
advantage
Porter's Five Force
Model
Research and
development
3-4 months
Differentiated
product so that more
customers will attract
Marketing mix Quality and quantity
of product
2 months
Maximizing wealth Swot Analysis
(Madsen and Walker,
2015)
Training and
development
5 months

SWOT Analysis
Strength
 It provides equipment that are of good technology and there is no issue
faced while using that type of equipment in home. Its main strength is it
provides the best quality product and services to its customers.
 As compared to another competitor in the marketplace company is
providing differentiated product that is the another strength of the
company.
Weakness
 The biggest weakness of the company is it cannot invest in research and
development.
 As it is selling product and services that will create difference in quality. It
cannot attract more customers towards it. Due to this it will not be able to
earn more profit and growth cannot be occur in future course of action.

Cont..
Opportunities
 Selling product through different online websites such as Amazon, Flip kart etc. Is
the biggest opportunity for the company to attract more customers towards the
company.
 Online marketing of product is the best selling technique that will attract more
customers towards the company.
Threat
 Competitors of Smart Home Appliances are the biggest threat of the company. As
new entrant enter into the marketplace they will bring new technology into the
market.
 Substitute product also become threat for it as if the product is not liked by the
customer it will searching other product that will satisfy its needs and wants.

Michael Porter's strategy
 Cost Leadership- Smart Home Solutions is providing lower cost product
to the customers that will help in increasing sales of the company
 Differentiation- It sells unique item so that it will attract more customers
towards company that is being provided differentiated product to
customers.
 Focus- This strategy will mainly focus on competitive areas that will help
in improving it for future course of action

PESTEL analysis
Political Factors
 As Smart Home Solutions working will be affected if the country's political
condition is not good. As there are government policy that will affect
functioning of the company.
Economic Factors
 This includes exchange rates, inflation rates, interest rates and
unemployment rates that will affect economic condition of the company.
 These factors affect purchasing power of the consumer as during inflation
prices gets high so consumer will not able to buy product at that price.
Thus, this will decrease flow on money in the market

Cont..
Social Factors
 It includes population growth rate, health consciousness, income
distribution, lifestyle and attitude.
 These will affect the culture of the company as different companies is
having different culture of employees working so sometimes due to conflict
it will affect working of employees in the company.
Technological Factors
 This include innovation, automation, research and development. Adopting
new technology is difficult for Smart House Solutions as it will increase
operation cost of the company.

Cont..
Environmental factors
 This will include weather, climate, tourism, farming and agriculture.
Weather will disturb the functioning of company that will increase
maintenance cost of the company.
 If the climate is not good at the workplace then it will affect functioning of
the company as well as affect employees working in the company.
Legal Factors
 This will include different laws that will affect functioning of the company
such as discrimination, employment, consumer protection laws etc.
 This will affect functioning of and it will difficult to manage all the things
in the company.

The team
Organizational structure
 Therefore, enterprise will follow the line structure in which the president or
CEO is at the top level. This is very rigid structure. Additionally, line
structure has only its direct, vertical relationship between various level in
the firm. In this, there are total of the 3 partners.

Marketing plan
 A-Z home automation tool will enter into the new market or industry in
which the business is currently operating. This form of the strategy will
helps to organizational business to grow.

Cont..
Logo or slogan or both
 A-Z entity will have the use of slogan as “Advanced Home automation
leads to smart saving”.
Competitors of the product
 A-Z smart home automation tools and this firm has number of competitors
within the market as Gulf automation system co., smartGlobeKW and
Aurora Smart home etc.
 This all brand provides the specialize wireless home automation system
that aids to provide good and effective services to the customers.

Operational plan
 Human capital- A- Z entity will take their business activities with the of
four members. Henceforth, staff and skills requires to implement the
process as well as potential sources if these resources. By hiring the
suitable employees the entity can able to undertake the operational
activities effectively.
 Financial requirements- Effective funding leads to carry out the business
activities systematically. By allocating proper funding the needs of the all
resources can be sorted effectively.

CONT..
 Risk assessment- Smart home automation is the one of the tool that need
to get compete with the existing producer of home automation
commodities. Therefore, the competition within the market can be the risk
that can affect the working of enterprise.

Financial plan
 The sources for the medium terms is inclusive of the borrowing from
financial banks, public deposit and to take the loan from financial
institution etc.

Break even analysis
NET SALES 350000
EXPENSE VARIABLE FIXED
COGS 87500
LABOUR 15000 35000
RENT 0 12000
GE 14000
TOTAL EXPENSE 102500 61000 163500
NET PROFIT BEFORE TAX -186500

Cash flow statement
YEAR 1 YEAR 2 YEAR 3
CASH SALES 350000 225000 350000
LOAN 0 100000 0
NEW EQUITY 200000
TOTAL RECEIPT 550000 325000 350000
PAYMENT
Cash purchases 50000 50000 50000
Payments to creditors 60000 60000 50000
Salaries and wages 100000 100000 100000
Employee benefits 70000 50000 50000
Payroll taxes 20000 20000 30000
Rent 40000 30000 40000
Utiltities 17000 15000 25000
Repairs and maintenance 20000 15000 15000
Insurance 20000 16000 16000
Travel 20000 17000 19000
TOTAL PAYMENT 417000 373000 395000
CASH SURPLUS AND DEFICIT -133000 48000 45000

Profit & loss
Particulars Figures (in £)
Sales 350000
Less: COGS 87500
Gross profit 262500
Less: indirect expenses 25000
Selling & distribution expenses 10000
Administration expenses 10000
Other expenses 12000
Total expenses 32000
Operating profit 230500
Less: tax
Net profit 230500

Balance sheet
Opening Year 1: Year 2: Year 3:
ASSETS
Current Assets
Cash 150,000 160,000 170,000 180,000
Marketable securities 60,000 20,000 40,000 50,000
Accounts receivable, net 20,000 23,000 63,000 63,000
Inventory 12,000 22,000 23,000 33,000
Prepaid expenses 30,000 30,000 25,000 23,000
Other 12,000 12,000 12,000 12,000
Total Current Assets 284,000 267,000 333,000 361,000
Long-Term Assets
Property, plant, and equipment 23,000 23,000 25,000 14,000
Less accumulated depreciation 16,000 15,000 15,000 11,000
Net property, plant, and
equipment 7,000 8,000 10,000 3,000
Other long-term assets
Total Long-Term Assets 7,000 8,000 10,000 3,000

CONTINUED…
Total Assets 291,000 275,000 343,000 364,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term debt 15,000 15,000 15,000 14,000
Current maturities of long-term debt 15,000 15,000 15,000 16,000
Accounts payable 11,000 10,000 12,300 19,000
Income taxes payable 15,000 15,600 14,000 18,000
Accrued liabilities 16,001 15,000 14,000 13,000
Other 1,000 1,000 1,000 1,000
Total Current Liabilities 73,001 71,600 71,300 81,000
Long-Term Liabilities
Long-term debt less current maturities 16,000 15,000 23,000 25,300
Deferred income taxes 10,000 45,000 30,000 35,000
Other long-term liabilities 15,000 15,000 20,000 25,000
Total Long-Term Liabilities 41,000 75,000 73,000 85,300
Shareholders' Equity
Common stock 23,000 30,000 36,000 39,000
Additional paid-in capital 36,000 35,000 30,000 40,000
Retained earnings 25,000 45,000 26,000 17,000
Other 10,000 10,000 10,000 10,000
Total Shareholders' Equity 94,000 120,000 102,000 106,000
Total Liabilities and Shareholders' Equity 208,001 266,600 246,300 272,300

Income statement
YEAR 1 YEAR 2 YEAR 3
SALES 350000 225000 350000
COGS 87500 56250 87500
GP 262500 168750 262500
OPERATING EXPENSE

CONTINUED…
Salaries and wages 50000 45000 45000
Employee benefits 15000 10000 13000
Payroll taxes 25500 13000 14000
Rent 12000 12000 15000
Utilities 14000 5250 12000
Repairs and maintenance 18000 10000 8000
Insurance 25000 40000 4000
Miscellaneous 13000 3500 1500
NP 90000 30000 150000

REFERENCES
Books and Journals
 Kumar, V. and Pansari, A., 2016. Competitive advantage through
engagement. Journal of Marketing Research.53(4). pp.497-514.
 Madsen, T.L. and Walker, G., 2015. Modern competitive strategy. McGraw
Hill.
 Meyr, H., Wagner, M. and Rohde, J., 2015. Structure of advanced planning
systems. In Supply chain management and advanced planning (pp. 99-
106). Springer, Berlin, Heidelberg.
 Namada, J.M., 2018. Organizational learning and competitive advantage.
In Handbook of Research on Knowledge Management for Contemporary
Business Environments (pp. 86-104). IGI Global.

Cont..
 Nurmi, J. and Niemelä, M.S., 2018, November. PESTEL Analysis of
Hacktivism Campaign Motivations. In Nordic Conference on Secure IT
Systems (pp. 323-335). Springer, Cham.
 Peter, M.K. and Jarratt, D.G., 2015. The practice of foresight in long-term
planning. Technological Forecasting and Social Change. 101.pp.49-61.
 Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-
performance analysis based SWOT analysis. International Journal of
Information Management. 44.pp.194-203.
 Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–
government innovation and entrepreneurship. Routledge.

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