Entrepreneurship and Business Development

This study material provides insights into entrepreneurship and business development. It covers topics such as the rationale for launching a business, industry and market review, competitor analysis, segmentation analysis, market growth strategies, and resources required for the venture. It is suitable for students studying entrepreneurship and business development.

Entrepreneurship and
Business Development

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The rationale for launching the business.....................................................................................1
Review of the industry and market with a clear demonstration of an understanding of the
variables in the external environment.........................................................................................2
Competitor analysis and highlight the competitive advantage of your product or service.........3
Segmentation analysis, providing market statistics of the target segments. ..............................4
Market growth strategy...............................................................................................................6
Resources required for the venture including the source of finance ..........................................7
Risk analysis and how those risks will be treated.......................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business development and entrepreneurship are two sides of the same coin. Having said
this, it is easy to comprehend the minute difference that exists in the two terms. Business
development is a compilation of various activities like market analysis, risk calculating,
planning, and executing all these tasks. Developing a business through conventional business
practices like building strategies, constantly keeping up with the market competition. managing
sales, marketing, product management are one of the key practices of business development. On
the other side of the coin is entrepreneurship, practices by an entrepreneur who is keen towards
opportunities and risk associated existing in the market (Shadibekova, 2020). An entrepreneur is
always looking at creating a new business by analysing the needs and demands of majority along
with keenly observing the problem faced by them and providing a solution for the success of the
business. Other words for an entrepreneur are innovator, problem solver, risk taker etc. and the
activities performed by an entrepreneur combined all together are constituent of
entrepreneurship. In this report a market analysis is done for a start-up company “Plastecrete”.
The start-up is based on a idea of using the recycled plastic as concrete because of the durability
and similarity in the nature of recycled plastic.
MAIN BODY
The rationale for launching the business
Plastic, in its earlier stages of existence was famous for its multipurpose usage and low
cost production which lead to a boom in its production. Numerous factories and manufactures
found various ways in which the man made material can be used, resulting in the 8.3billion
metric tons of plastic product and almost an estimate of 6.3 billion metric tons ending as a
wasted. Today plastic is also known as the worlds biggest problem as over the last century this
non biodegradable material have neither decomposed not broken down into any other form.
With this durability against all the natural forces the idea of the company Plastecrete is to only
recycle the plastic around world to give a harder form and through its effective usage as the
replacement of concrete the world never have to think about recycling it ever again (Doern,
Williams and Vorley, 2019). The company mission here to offer the world an effective solution
to a problem existing all over the globe. Looking at the ever expanding cities and urbanization of
land, rigidity and solid concrete is the first thing to be observed. Plastecrete is the solution
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through the combination of two problems as there is unimaginable amount of plastic waste
present in the world and also a huge demand for the concrete with the constant increment in the
size of cities.
Review of the industry and market with a clear demonstration of an understanding of the
variables in the external environment
For any business to grow the risk involved in external and internal factors of the company
play a vital role as they not only give a blueprints of the problems that the company will face
from its first day but also give a fair chance to solve them before they come into existence. Such
an analysis becomes extremely important in case of a start up. Hence through the PESTLE
model; following is a brief analysis of factors involved with the Plastecrete,
Political: Entire world currently is dealing with the problems faced due to environmental
issues and plastic is one of the major cause of it (Mitra, 2019). From U.N. to European Unions
every developed country is making efforts to stop the harp caused by man made materials.
Plastecrete being the solution provider to a problem of this extent has a first mover advantage.
This idea not only has acceptance potential in the home country but given the good relation of
UK with US, Japan and European countries after the final agreement of Brexit, other countries
are also expected to support the initiative by the company.
Economical: The economic condition of every nation is heavily impacted due to lock
down and its after effect and UK is no exception to these consequences. But each and every
heavily impacted industry is expected to gain the speed equally as soon as the economic
condition will return to normal.
Social: Societies around the world are becoming more and more environment friendly
and with this change in the mindset the present time seem to be the best for the execution of the
idea buy Plasticrete. As several measure and appeals are in trend among societies not juts in UK
but also around the world, the introduction of the basic idea of the replacing the concrete with the
recyclable plastic is expected to be widely accepted.
Technological: Technology plays the most important role in the success of the business
idea chosen by Plastecrete. With the world growing more in the same direction as the startup,
availability of enough technology for the execution is not a problem (Kraus and et. al., 2018).
This situation of the market and availability of enough resources are just enough for the
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production of the recycled plastic with the characteristics of concrete or Plasticrete as the
company has decided to name it.
Legal: The legislation of the United Kingdom has been actively taking part in the
environment related issues and keeping an eye on urbanization behavior in recent times. In 2018
the UK government Resource and Waste Strategy contained numerous plastic waste recycling
and its management plans. Hence the introduction of this business idea at current time is destined
to become a hit in the market.
Environmental: The success and acceptance of a startup in modern time sis hugely
impacted by the environmental factor. Market all around the world are now more environmental
concerned and in every new startup (Kuzieva, 2020). Plasticrete is as environment friendly as it
could because the production involves recycling of plastic. With a appropriate price and product
quality the environmental concerns are set to play a post rive role in the development of
Plastecrete.
Competitor analysis and highlight the competitive advantage of your product or service
A proper analysis involves how the competition affects the business. To analyse the
market and take benefits through of competitive advantage S.W.O.T. Analysis is conducted. This
analysis involves internal factors of the company which could be either helpful or have a
negative impact if left unchecked. S.W.O.T analysis is as follows,
Strength: The construction and and urban development industry is going through a tough
time in the nation which could prove out to be a huge positive point, as this allows the market
enough reason and thought to reconsider the conventional ways of construction. The nature of
the business idea and its successful execution is the biggest strength. As there are not many
company present with such an innovative solution, Plastecrete has the first mover advantage.
Weakness: The idea is to offer a solution which can only be executed through use of
highly innovative and best in class technology (Ratten and Jones, 2018). But the quality and the
appropriate pricing can be weakness as the manufacturing is done through recycling and quality
of recycled product is difficult to maintain the same. Research and development facilities around
the world are engaged in making the process of reclining more efficient and more of goal
oriented.
Opportunities: The company doesn't necessarily has to force the idea because the present
time is well suited for such a change conventional ways when people and societies in general are
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questioning every conventional method and cross checking its efficiency. With the proper
marketing and business strategies the already existing market leaders make a deal with the
startup for mutual benefits and market growth.
Threats: Due to many positive factors involve in the support of the idea, the biggest
threat that exists in the market is more and more companies opening up with the same idea. The
already established concrete companies have good image in the market and have years of good
business relations which will always be threat for the start up Plastecrete.
Segmentation analysis, providing market statistics of the target segments.
The success of a product or any offered service can only be achieved with a perfectly
analyzed target market and right planning (Galvão, Ferreira and Marques, 2018). It is the target
market that ultimately becomes the customer of the company and hence generates the revenue
and completes the cycle of business that started with the an idea. Start up are no different in
terms of looking at the market, hence this segmentation of the market is done through different
classification.
The construction industry in UK over the years have seen an exponential success. In
recent years the industry was evaluated at an estimate of 125 billion pounds. With over 2500
registered company having revenue of over 5 billion pounds. Through this statistical data of the
industry in UK, a clear vision can be painted of the target customers. The companies with a
fortune are surely impacted due to the negative image of urbanization and the pollution involved
with it. The target of Plastecrete are these various existing companies in the industry for wither a
merger or coexistence. With the already existing data and experience of a construction company
and their need to better their image in the environmental factor. These companies perfectly are
the target customer of the startup. With these big numbers of the already existing constriction
companies and their fortune rather than competing with the vision of Plastecrete is work with
them because it is only the end product that the start up has to offer and not the entire
construction related practices.
Another target customer of the startup is the government itself as the product is an
environmental solution of a serious problem. The estimate costs of the product is around 800
pounds per ton of plastecrete (the product). Comparing the volume of a ton of start up's product
and concrete; plastecrete occupies 10 times more volume. This directly implies to the fact that a
ton of the product can be used at 10 times the places a ton of concrete can be used. In the
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construction of the government there are multiple structure that do not require each and every
quality of concrete (Urbaniec, 2018). Hence at places like footpaths, road dividers, barricades,
road blocks, and metallic structures such as an emergency booth etc. The effective use of
plasticrete can be done. With the hike in the concern of the citizens and the breakout of this idea
the government and its ally construction company is on the main target market for the start up.
Marketing strategy
Marketing is the process of reaching out and attracting the targeted market of the
company. This function of business development plays a vital part in the success of the business.
As without the properly conducted marketing neither the market could be occupied nor the
revenue can be generated. With all the plans and their execution in business development
marketing is where the targeted segment is brought in. Marketing involves 4 Ps that are Product,
Price, Place and Promotion.
Product: This aspect of the marketing focused on offering a service or product it self that
has a good market scope. The startup has decided to call its product by the same name as the
company that is plastecerete. With the growing construction market that had even better
performance during the pandemic year (Nguyen and Pham, 2020). The startup idea is appealing
to the society in general which has a large scope neighboring and other developed countries as
well. All the developed nations have plans and infrastructure for recycling and waste
management particular for the plastic waste, which eases the acceptability and success for the
startup
Price: Price is an amount that customers pays for the product. It is very necessary for
the success of product that its price is found worthy for its quality and services. The calculation
for the prices of plastecrete states that the amount per ton is lower for concrete but when it comes
to comparing the amount per unit volume the amount for plastecrete is much acceptability as it
comes with an impeccable environmental friendly idea.
Place: This point in the marketing is dedicated to finding out the best possible place for
the product launch and idea promotion. Customer's need can be well understood and categories
on the regional basis and this is how the market can be captured. In terms of Plastecrete, the
company is a startup based on the need and ideology of U.K. Considering the fact that the nation
is developed one and has a futuristic approach and long term planning for further development.
U.K has schemes and planning to make the nation plastic free by 2025, with all these progressive
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thinking, the business idea put up by the startup is very well suited to U.K. and goes smoothly
with the vision.
Promotion: This aspect id about making public relation, industrial contacts, advertising
and several other promotional activities through which more and more number of people get to
know about the product or services being offered buy the company (Jones and et. al., 2018).
Plastecrete approach to promotion is more about public excitement and acceptance but its actual
customers would be construction firms and hence a promotion on respective level is more suited.
Market growth strategy
It is the planning and strategic working that decides the success and failure of any
company or even product. Startup is a situation when a company comes with a new idea looking
at the current need of customers as opportunity in the market. In order to analyses the market for
the growth of business.
Market
Penetration
This strategies focuses on increases the sales and ultimately revenue through an
existing product in an already existing market place. Practices like offering
festival offers, attractive discounts, dropped prices and increased quantity etc.
are major practices of this strategy.
Product
Development
Through this strategy the a company in its already existing market comes up
with a new product. When a company has all the essential information of its
existing market which involves the market need as well, hence introducing a
solution is what is done in product development.
Market
Development
The practices involved in this strategy are focused on the success of an existing
product in a new market. It is about using the data and reviews from the old
market about an existing product and simultaneously studying and analysing
the new market (Brush and et. al., 2019).
Diversification This is when a company decides to move to a new market with a new product
based on the need and demands of the customers in the new market. This
strategy requires maximum research because the market and the product
offered is new and company has to majorly rely on it's market analysis.
In case of Plastecrete, Product Development is the business strategy in focus by the
startup. Although the company itself is a new boat in the big sea but the idea of the company is
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to promote the environmental concerns and benefits to nature their product will lead to.
Moreover the startup is targeting already existing construction company fort their product to be
used as a replacement of concrete. For that the startup company has to pitch its product in the
sight of public as well so that it gets all the necessary attention the product deserves
Resources required for the venture including the source of finance
Every manufacturing unit requires numerous different resources for the step wise
completion of the process. This resources can be categorized among services, labor, equipment ,
material, money, space and time. In terms of the plastecrete startup, the company is coming up
with a new product in the market and its marketing strategy being product development and
merger with construction companies, majority of the manufacturing will be done in brought out
in a recycle plant (Aquino, Lück and Schänzel, 2018). The company will merge or collaborate
with a recycling plant in order to use their knowledge and resources for the mutual benefit. By
this merger with companies from construction and recycling sector, the startup will bring
majority of the equipment labor, and space. As the company is offering a new product clearly
there will be differences in manufacturing. This cost of setting up a specialized manufacturing
department will be realized by the money brought in by the investors. For raising the investment,
The company plans on pitching to this idea to construction companies, recycling companies,
government, other multimillionaire companies purely on the basis of a successful vision of the
startup.
Once when the investment is raised, the company can set up their entire site, with trained
professionals, labors, carry out marketing and execute all the necessary business development
process.
Risk analysis and how those risks will be treated.
Risk analysis is the process of calculating risk associated in every step of business
development. The process in extremely crucial for the unhindered growth and success of the
business as with this step involved in planning, the business can be prepares for the unforeseen
dangers of the market. The Process of risk analysis not spots the happening of unfortunate events
that could ever take place and disturb the working of the business. In case of Plastecrete, as the
company involves manufacturing and distribution and primarily the collection of plastics waste
to be used as a raw material. There are many things that a company needs to be prepared for,
from miss happening in a factory to economical imbalances . For the startup the major threat is
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the quality fluctuation as the raw material used will not always be having the same quality.
Hence to always be able to produce the product of the same quality will involve a high level of
supervision.
With the world moving in the direction of environment friendly nature of businesses.
There is a possible threat of reduction in the supply of plastic material and eventually hindering
the manufacture. Though the ethical aim of the company will be very well satisfied with such a
condition, but the business ethics will still be in play and the company will be required to switch
their plan for which it needs to be prepared.
CONCLUSION
From the above report it can be concluded that the start-up is primarily offering a effective
solution to two globally existing issues. The issues being plastic waste unsuccessful
management and urbanisation leading to more and more mining for raw materials. Through the
product named plastecrete the company is offering solution to use plastic at the place of concrete
for its rigidity and low cost. The company focuses on pitching the idea to construction company
and also keeping an eye at the government support for the idea that helps the government
achieving its long term objective. Not only the association of this will help the world but also
build a brand image for the parties associated. The report consist of market strategies and risk
management that has been very carefully considered and brought out keeping the current market
condition along with closely observing the market needs.
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REFERENCES
Books and Journals
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Economics. 53(2). pp.393-408.
Doern, R., Williams, N. and Vorley, T., 2019. Special issue on entrepreneurship and crises:
business as usual? An introduction and review of the literature. Entrepreneurship &
Regional Development. 31(5-6). pp.400-412.
Galvão, A., Ferreira, J.J. and Marques, C., 2018. Entrepreneurship education and training as
facilitators of regional development: A systematic literature review. Journal of Small
Business and Enterprise Development.
Jones, P. and et. al., 2018. Entrepreneurship in Africa, part 1: entrepreneurial dynamics in
Africa. Journal of Small Business and Enterprise Development.
Kraus, S. and et. al., 2018. Digital entrepreneurship: a research agenda on new business models
for the twenty-first century. International Journal of Entrepreneurial Behavior &
Research.
Kuzieva, N., 2020. Kuzieva NR Stimulating the development of small business and private
entrepreneurship through a tax mechanism in the Republic of Uzbekistan. Архив
научных исследований, (24).
Mitra, J., 2019. Entrepreneurship, innovation and regional development: an introduction.
Routledge.
Nguyen, T. and Pham, T., 2020. The effect of corporate entrepreneurship, organizational culture
on supply chain management and business performance in chemical industry. Uncertain
Supply Chain Management. 8(1). pp.67-76.
Ratten, V. and Jones, P., 2018. Bringing Africa into entrepreneurship research. In African
entrepreneurship (pp. 9-27). Palgrave Macmillan, Cham.
Shadibekova, D., 2020. Shadibekova Dildor, Nosirova Na Prospective Development Analysis of
Small Business and Entrepreneurship of Uzbekistan. Архив научных исследований,
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Urbaniec, M., 2018. Sustainable entrepreneurship: Innovation-related activities in European
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