Entrepreneurship and Business Development

This report covers the description of a new business concept, analysis of industry, market, organizational and financial feasibility, value chain and canvas business model. It also covers identification of risk and ways to mitigate those risks effectively.

Entrepreneurship and
Business Development

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Description of business concept.............................................................................................3
Identification of Industry, Market, Organizational and Financial Feasibility........................4
Description of key components value chain and business model canvas..............................7
Business model canvas...........................................................................................................9
Identification of risks and explanation of risk management................................................10
Conclusion.....................................................................................................................................13
REFERNCES:................................................................................................................................14
Books and Journals:..............................................................................................................14

Introduction
Every company aims to expand their business appropriately by adopting those ways
which will help their business to earn more profit in low cost. Hence, it is essential for them to
analyse their existing business environment appropriately (Goncharov, Sekerin and Akhyadov,
2020). The following file covers description of new business concept, analysis of industry,
market. Organisational and financial feasibility, value chain and canvas business model. This file
also cover identification of risk and the ways to mitigate those risk effectively. This report
describes those factor which will impact a new start-up and their operational activities.
Main Body
Description of business concept
Product description- New start up 'Coolskin Corporation' has launches a new product
which is a body moisturiser cream which is used for all purpose like reducing the order of onion
and garlic from hands of household ladies. It also used in skin infections like rashes, skin damage
by burning and many others. Hence, it is used for various purpose and its name is Calamine
cream.
Special attributes- One of the most special attribute for this cream is that it is made up
of natural herbs which has no side effects (Doh, Jauhiainen and Boohene, 2021). Secondly, its
packaging and labelling is attractive for customers.
Target market- Coolskin company basically introduce their new product by targetting
middle income customers specially for housewives.
Scale of business- It is a small medium scale company which is having almost 120-140
employees. They are working under different departments according to their specialization.
Location- Calamine cream will be sold on the stores of supermarkets and hypermarkets.
It is also sold through official online application of Coolskin Corporation.
Who will be involved- Essential stakeholders of Coolskin corporation will be their
employees, suppliers and investors.
Reason for launching Calamine cream in the market- Coolskin Corporation has
launched Calamine cream which can be used for many purpose like reducing order of garlic and
ginger and it can also be used for burnt skin, rashes and other skin allergies (Umrani,Kura and
Ahmed, 2018). The main purpose of this product is to capture a large market and satisfy

customers by providing them a single cream which can be used for many purpose. Secondly, the
cream is made up on natural ingredients like herbs. Hence, the increase in current trend of using
natural ingredients in manufacturing product is also fulfilled by this cream.
Identification of Industry, Market, Organizational and Financial Feasibility
PESTEL analysis-
Political factors- In context of UK, they are having no trade restrictions for UK based
companies. Hence, it is beneficial for Coolskin Corporation to export their products globally less
export charges and restrictions. On the other hand, UK has recently increased their corporate tax
which impacts negative upon company because they need to pay more tax from their retained
earnings.
Economic factor- UK is having strong economical growth with good condition of
infrastructure (Del Monte and Pennacchio,2020). This is beneficial for Coolskin Corporation to
sell their new Calamine cream with good distribution channels. On the other hand, cost of raw
material is high in UK which plays an negative role for Coolskin company to manufacture their
new product.
Social factors- Population of UK is having high purchasing power and they focus on
quality of products. Hence, it is beneficial for the company to manufacture good quality of cream
and sell it to their target price at an appropriate price.
Technological factor- UK is well known for their advance and modern technology.
Hence, Coolskin company can use advanced tools and machines to manufacture Calamine cream
in low cost and maintain the quality. Secondly, online mode of shopping and bill payment
system also helps the company to gain more customers. They also uses social media marketing to
increase their product awareness in the market.
Environmental factor- UK is the area of large bio-diversity and their large forest covers
many variety of plans and trees as well as herbs (Hosseini and Zialdini, 2019). Hence, it is
beneficial for Coolskin company to use natural and effective herbs for their Calamine cream.
Legal factor- It is essential to follow rules and regulations made by legislation. Hence, in
context of UK, their Health and Safety Act covers all details like labours must be work under
safe conditions, compensation and many others which is followed by Coolskin Corporation, they
provide a safety kit like helmet, leather gloves and shoes to their workers in manufacturing
department.

STP analysis-
Segmentation- This is the process of dividing market into sub parts to make it easy for
companies to understand each segment perfectly and decide their targeting customers. In context
of Coolskin corporation, they segmented their market basically in demographical segmentation
where they segmented age group of their customers like 14- 34, 34- 64 and 64 and above
(Darmanto and Yuliari., 2018). They segmented their market for both make and female and for
occupation they segmented their market for housewives, professional and students. They also
uses behavioural segmentation where they segmented their customers for high purchasing
capacity.
Targeting- This is the process where companies choose one or more segments out of
various segments to set their target market. In context of Coolskin corporation, they targeted
their customers for their new product Calamine cream where they choose 14- 34 year of
customers because they are getting more skin allergies. Secondly, they targeted female and
specially those female who are housewives because one of the main feature of their product is
that it reduces the order of ginger and garlic from hands who cook food on daily basis and this is
the basic issue of housewives.
Positioning- It consist of increasing awareness of customers about the company and
product in the market. Coolskin company can promote their new Calamine cream on social
media where they can reach to more customers as compared to traditional way of marketing.
They can also use TV ads, newspaper ads and many other medium of advertisements to increase
their brand identity among customers (Bislimi., 2020). Price is also a good factor to create high
positioning of product in market. Hence, the prices of calamine cream could be lower then other
creams to attract more customers.
Vision- The vision of the company is to create an organisation which provide safe
working environment to employees and can also help people by providing aid which can help in
providing relief from infections.
Mission- To embrace all the customers by providing them effective personal care
products which can help them in feeling good and will help them in looking good as well as
feeling good.

Porters five forces: To analysis the competitive position of Cool skin company in marketplace
and develop relevant strategies Porters five forces framework is used which helps to analysis the
growth new product in real scenarios (Asfiah, Anshori and Mawardi, 2018).
Competition in industry: The cool company will experience a relatively low competition from
cosmetic industry as the new product that is calamine cream has many curing benefits along with
the fulfilment of basic features of cosmetic like moistening. But still to take advantage of this the
company need to gain trust of customers and make a good perception about its product.
Potential of new entrants: The cream is a very new formula and have a sound research based
which is not easy to be available to any other firm which means potential threat from new buyers
is relatively low.
Power of suppliers: The buying power of suppliers is high as the cream needed raw herbs that
are needed to be aged and cultivated properly and some of them are even very rare all this
contribute to buyers bargain strength(Claure, 2018).
Power of consumers: Since the product is new and unique the consumers and they are not
having any other alternative means there power for this particular product is extremely low.
Threat of substitute: There are a few products offered in cosmetic industry that are scented
enough to remove foul smell and give other features of cosmetics so in this context there is less
chances to be substituted by competitors from existing products of industry. But still there are
brands specific to address the smelling problems can be a easy substitute.
Competitive advantage
The company will be able to have competitive advantage with the help of low prices and
low availability of substitutes in the market (Sohns and Diez., 2018). The company is offering
unique and effective products to its customers at affordable prices and the products of the
company is providing value to the customers of the company which means the company will be
able to capture a wider segment of the market.
Marketing Strategies:
4P's of marketing : This is a tool that has four or in extended form has seven elements that helps
to understand how these are combined to meet marketing goals and objectives (Forcher-Mayr,
and Mahlknecht, 2020).
Product: For the proper and effective marketing it is necessary that the consumers fully
know about the product that is calamine cream which they are selling and must meet customer

needs to stand apart of the competition. In short What,Why and where of product should me
made clear to consumers regarding the new product.
Price: When the product description is made clear to audience then next comes the
pricing strategy that must be according to the monetary value but also include the perception of
customers about the price according to its quality and in this case as the product has unique
feature means the price lies from moderate to high, is thus a skilful art(Hermanto, 2017).
Place: The place where the product is sold and in today's high tech era it is extremely
necessary to sale product online so the Cool skin company need to be online for its sales as it
will be more effective and easy at the same time.
Promotion: If your product is available on website but customers must be aware about
that a new product is launched which is done through promotion(Williams,and Krasniqi, 2018).
It ensures greatest growth and sales opportunities. The social media can be effective promotion
platform for calamine cream by advertising its natural ingredients to target its organic products
lovers.
Description of key components value chain and business model canvas
Value chain components:
Value chain is one of the most important factor in the success of the company. It is a set
of some primary and supporting activities and this method will help the company in analysing
the competitive advantage of the firm. The value chain components consists of some primary as
well as secondary activities which can help the company in reducing costs and will make sure
that the company is having higher profits (Jo’rayevich and et. al., 2020). In case of Cool skin
Cooperation, the company is a start up and wants to make sure that their value chain is effective
and efficient as the resources of the company is limited and they do not want to waste any
precious resources.
Primary activities
Inbound logistics: It refers to the logistic activities through which the company receives
the required raw material on time and in correct quantity. It is important for every organisation
to receive raw material on time as it will make sure that the workings of the company is not
getting interrupted. In case of Coolskin cooperation, it is important for the organisation that they
analyse their economic order quantity and will also be able to receive products on time so that
the workings of the company does not get interrupted.

Operations: It is important for the organisation to make sure that their operations or
processes of the company are going on effectively and efficiently and without any interruptions
so that the company will be able to achieve the set target in order to fulfil the demands and
supply of the market (Sharma., 2021). In case of Coolskin cooperation, It is important for the
organisation to make sure that their workings and processes are effective and efficient so that
they can become more cost efficient.
Outbound logistics: It refers to the activities of transportation through which the
company will be able to make the products of the company available to the customers. It will
help the company in providing their products from the company warehouse to the marketplace
and shops which are selling the products of the company. It is important for the Coolskin
cooperation to make sure that their products are reaching to the customers safely and on time.
Marketing and sales: It refers to the marketing activities of the company which are
needed to be done effectively and efficiently by the company so that they can make sure that
their products is reaching to its potential audience and the correct information is spreading
instead of any rumours (Akinwale, Alaraifi, and Ababtain., 2020). It helps the company in
creating a loyal customer base and will also make sure that the company is having an appropriate
set of information with the help of which the company can make certain minor changes in the
product according to the needs and demands of customers as well as market. In case of Coolskin
cooperation, the company make sure that they are using digital marketing techniques as it will
make sure that the marketing activities of the company is highly effective and does not cost
much to the company as it is a start-up company.
Secondary activities
Human resource management: It is important for the company to understand that
human resource is one of the major resource for the company and without effective workforce
the company will not be able to achieve their goals and objectives (Mitra., 2019). Human
resource management in an organisation will make sure that the employees of the company are
working effectively and efficiently and will also make sure that the workforce or employees of
the company are having job satisfaction which will help the company in reducing the employees
turnover ratio. In case of Coolskin cooperation, the aim of the company is to have talented
employees as the company is a start up.

Technological development: The technological department of the company will make
sure that the the company is having latest and efficient technology without spending much cost
as it will help the company in having competitors advantage in the market (Hang., 2018). In case
of Coolskin Cooperation, it is important for the organisation to make sure that the technical
department of the company is continuously working in order to make the processes of the
company more effective and efficient as it will make sure that the company is having low cost of
products which will provide them higher profits. The technology department of the company will
help in the survival of the company in the market.
Business model canvas
Key Partners:
customers
suppliers
shareholders
Key Activities:
Production
Marketing
Networking
management.
Value
Proposition:
Innovations
Helps in
relieving
pain(Qian
and Liu.,
2018) .
Effective
remedy for
minor
infections.
Customer
Relationships:
personal assistance
self service
communities
co creation
Customer
Segments:
mass market
niche market
segmented
diversified
Key Resources:
machinery
equipments
effective processes
raw material.
Employees
financial
resources.
Channels:
digital marketing
channels through
which the
company will
market their
products (Iazzolino
and et. al., 2019).
Social media
platform and
website of the
company.
Paid promotions.

Cost Structure:
variable costs
administration cost
fixed costs
selling and distribution cost.
Revenue Streams:
sales of the product or any fixed asset
advertising of products
adding of new features through which the sales
of the product increases.
Identification of risks and explanation of risk management
Financial Plan
Budget
Particulars 31/12/18 31/12/19 31/12/20
Implementation
technology cost
16000 15000 -
Advertisement
expenses
8000 9000 8000
Promotional expenses 5000 6600 8000
Training charges 3000 4000 6000
catalogue 7500 7500 9000
Total cost 39500 42100 31000
Cash flow statement
Cash flow statement (FY 20-21)
Cash flow from operations
Net earnings 2000000
Addition to cash
Depreciation
decrease in accounts receivables
increase in accounts payables
10000
15000
15000

increase in tax payables 2000
Subtraction from cash
Increase in inventory -30000
Net cash from operations 2012000
Cash flow from investing
equipments -500000
Cash flow from financing
Notes payables 10000
Cash flow for FY 2021 1522000
Risk register.
Risk Severity Responsibility Mitigation and
contingency action
Score (out
of 10)
Quality issues high It is the responsibility
of the senior manager
and the research and
development
department of the
company to make sure
that the quality of
product is up to the
mark.
It is important for the
organisation to make sure
that they are constantly
checking the quality of
their products and are
taking reviews of
customers so that minor
changes can be made
according to the needs and
demands of the market.
9
Financial
risks.
Moderate Managers as well as the
finance department of
the organisation is
responsible for the
management of funds.
One of the most important
resource for a company is
its funds (Ayob., 2021). In
order to carry business on
in the market it is
7

important for the
organisation to have funds.
The finance department
must make sure that the
funds are allocated
properly to the department
and proper reserves are
made for the case of
contingencies.
Copyrights
and patents
and
trademark
Moderate Top level management
of the company.
It is important for the
organisation to make sure
that their formulas and
packaging and any new
feature is copyrighted
properly (Bobkova and et.
al., 2020). It is important
for the organisation to
make sure that they are
having some unique
feature in the product
which cannot be copied by
the competitors and which
are providing value to the
customers.
6

Conclusion
From the above report, it is concluded that in order to start a new organisation in the
market with a new product it is important for the organisation to make sure that they are
analysing the external factors of the market so that they do not have to face any contingency. It
will help the company in analysing the way in which they can enter the market in the most
effective way and will also make sure that the company is able to survive and is having
competitors advantage in the market. The risk register will help the company in analysing risk
and its severity so that those factors can be taken into consideration carefully.

REFERNCES:
Books and Journals:
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economic growth: Evidence from Saudi Arabia. In Eurasian Economic
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Asfiah, N., Anshori, M. and Mawardi, I., 2018. Analysis of women social entrepreneurship on
micro and small enterprises. Journal of Innovation in Business and Economics
(JIBE). 2(1). pp.1-12.
Ayob, A.H., 2021. Entrepreneurship education, institutions and student entrepreneurship: a cross-
country analysis. Compare: A Journal of Comparative and International
Education, 51(5), pp.745-763.
Bislimi, K., 2020. Determinants of family entrepreneurship in the beekeeping sector. Journal of
Family Business Management.
Bobkova and et. al., 2020. Environmental Responsibility In The Development Of Green
Entrepreneurship. Studies of Applied Economics, 38(4).
Claure, F., 2018. Learning Music Entrepreneurship by Doing: How to Develop Experiential
Learning Opportunities in an Academic Setting. International Summit of the Music &
Entertainment Industry Educators Association March, pp.22-24.
Darmanto, S. and Yuliari, G., 2018. Mediating role of entrepreneurial self efficacy in developing
entrepreneurial behavior of entrepreneur students. Academy of Entrepreneurship
Journal, 24(1), pp.1-14.
Del Monte, A. and Pennacchio, L., 2020. Historical roots of regional entrepreneurship: the role
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Doh, P. S., Jauhiainen, J.S. and Boohene, R., 2021. The synergistic role of academic
entrepreneurship patterns in entrepreneurial university transformation: Analysis across
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Development, pp.1-13.
Forcher-Mayr, M. and Mahlknecht, S., 2020. A capability approach to entrepreneurship
education: The Sprouting Entrepreneurs programme in rural South African
schools. Discourse and Communication for Sustainable Education. 11(1). pp.119-133.
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opportunities for students in the development of the information environment. Revista
Inclusiones, pp.411-421.
Hang, M., 2018. Media entrepreneurship. In Handbook of media management and
economics (pp. 259-272). Routledge.
Hermanto, B., 2017. Entrepreneurship ecosystem policy in Indonesia. Mediterranean Journal of
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Hosseini, S. A. and Zialdini, M., 2019. Social entrepreneurship and sustainable
development. International Journal of Business Management, 4(1), pp.52-59.
Iazzolino and et. al., 2019. University students and entrepreneurship: An empirical analysis on
Italian Universities. Journal of Entrepreneurship Education, 22(5), pp.1-16.

Jo’rayevich and et. al., 2020. The Role Of Regional Governance In The Development Of Small
Business And Private Entrepreneurship. European Journal of Molecular & Clinical
Medicine, 7(7), pp.705-711.
Mitra, J., 2019. Entrepreneurship, innovation and regional development: an introduction.
Routledge.
Qian, H. and Liu, S., 2018. Cultural entrepreneurship in US cities. Journal of Urban
Affairs, 40(8), pp.1043-1065.
Sharma, L., 2021. Exploring entrepreneurship among STEM women with mid-career
break. Journal of Small Business & Entrepreneurship, 33(4), pp.453-474.
Sohns, F. and Diez, J.R., 2018. Explaining micro entrepreneurship in rural Vietnam—a
multilevel analysis. Small Business Economics, 50(1), pp.219-237.
Umrani, W. A., Kura, K.M. and Ahmed, U., 2018. Corporate entrepreneurship and business
performance: The moderating role of organizational culture in selected banks in
Pakistan. PSU Research Review.
Williams, C.C. and Krasniqi, B., 2018. Explaining informal sector entrepreneurship in Kosovo:
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