Entrepreneurship and Business Plan

This report explores the relationship between innovation and entrepreneurship, Porter's five forces, STP, business plan for Grab organics, marketing strategies of entrepreneurs, quantitative and qualitative planning tools that entrepreneur could use to mitigate their risks. The report also includes a feasibility study of a new business venture concept and common mistakes that first-time entrepreneurs make.

Entrepreneurship and
Business Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Conduct a feasibility study of new business venture concept, and explore the relationship
between innovation and entrepreneurship...................................................................................1
Porter's five forces ......................................................................................................................2
STP .............................................................................................................................................4
Business plan for Grab organics ................................................................................................5
Marketing strategies of entrepreneurs.........................................................................................6
Quantitative and qualitative planning tools that entrepreneur could use to mitigate their risks. 7
Common mistakes that first time entrepreneurs make................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is the process of developing a new business venture by developing a
new product or a process that is innovative and unique. The entrepreneurs are the people that
indulge into the process of entrepreneurship. Developing a new business venture is complex task
and requires a great business idea in order to have competitive and successful business venture.
Business development requires a deep research and analysis in order to determine the factors that
can build a suitable and needful business that could meet the needs of the society (Bartlett,
Moungkhounsavath and Phimmavong, 2017). In the present report is the study a new business
venture names as “Grab organic” that offers an organic and herbal drinks to the customers. The
business is the UK based new start- up that sells different herbal flavour drinks. The report will
contain feasibility study of new business venture, competitive analysis and Market segmentation
of the new business. Further in the report the business strategies, qualitative and quantitative
business tools used by entrepreneurs are assessed. In the end mistakes that entrepreneurs make
first time are discussed.
MAIN BODY
Conduct a feasibility study of new business venture concept, and explore the relationship
between innovation and entrepreneurship
A feasibility study is the form to evaluate the potential success of the new business venture idea
or project, therefore, in the credibility of this study the perceived objectives is the crucial factor
for lending institutions and potential investors. For the feasibility analysis of the new venture
”Grab Organic” key four areas will be discussed below:
Market analysis: the market analysis is done in order to analyse the idea or forecasting
regarding the supply and demand balance of the product. As per the new business venture the
company has target of selling 100 units of trunks of products each month. The target market for
the product is both B2B and B2C as the company as a retail will sell its products to direct
customers and as an wholesaler sell it to other supermarkets too (Závodská, Šramová and
Konečný, 2019). Among this the potential customers will be the one who are fitness freak and
conspicuous of consuming herbal drinks. As per the competitive analysis there is huge
competition exist in the market with big retail brands like Tesco, Sainsbury, Starbucks etc. but as
the product is unique and herbal it has potential of creating niche market.
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Organisational setup: for the effective business setup the business must choose the right
organisational structure. As the Herbal drink is the product of the Grab Organic brand the
company must opt for the functional organisational structure as the company will have different
functions and operations in producing the product.
Technical issues: as per the business of herbal drinks there is no much requirement of
technology and equipments in the business therefore, the cost of technology and equipments in
producing the drinks is not so vast cost element. Therefore, the business has great profit margin
in less costing.
Financial analysis:
The relationship between innovation and entrepreneurship is very common as both builds and
opportunity for converting new ideas into a product and business venture. Both innovation and
entrepreneurship has a durability of creating valuable opportunity for growth and development.
Porter's five forces
This is the model which is executed by companies to evaluate how their business
functions could be influenced through external forces so that it could take effective measure to
enhance its profitability (Martindale, 2019). In context to Grab Organic, the Porter's Five Forces
has been mentioned below in detail:
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Competitive Rivalry:
This factor of the model describes how the presence of existing companies in the same
industry could impact the market share of other organisations. In case of new business venture
named Grab Organic, the presence of many companies such as Pure Organic Drink, Gusto
Organic Drinks and others influence the market share. The companies enhance threat of
competition in the market for respective company which could impact its functioning.
Threat of New Entrants:
This element of the Porter's Five Forces explains how companies could face a threat of
new entrants and how their business can influence market and customer base of existing
organisations. In case of the selected new business venture, the threat of new entrants is high as
preferences of people is changing and shifting towards organic products. Therefore, many
entrepreneurs are planning to open business ventures based on organic products or services.
Threat of Substitute products:
This component of the model helps in evaluating how presence of secondary goods or
services could impact the market share and choices of customers for existing companies
(Abdelkarim, 2019). In context to selected new business organisation, the threat of secondary
products in organic drinks is low as people who are conscious about their health would not shift
to any other drinks. It could also become moderate as people might change their choices and
could shift or start consuming other drinks.
Bargaining Power of Suppliers:
This factor of the model is associated with power of suppliers and explains how their
actions could influence production of companies. In case of the selected organisation, bargaining
power is low as there are several suppliers present in the market who could supply raw materials
for organic products. The respective company could shift from one supplier to other which
decreases their bargaining power of suppliers.
Bargaining Power of Buyers:
This element of the model defines how preferences and presence of wide or limited base
of customers could impact business operations of companies. In context to the selected
organisation, bargaining of buyers is low as there are limited number of organisations are present
in the market who serves organic drinks.
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STP
This a marketing tool which helps in describing how companies could divide their
customer base on the basis of their preferences. This technique helps them in serving and
meeting demands of customers effectively. In context to Grab Organic, the STP has been done
below in detail:
Segmentation
This is the first step which companies take under which they divide their customer base
on the basis of their age, lifestyle and other factors (Purwanto and Wibowo, 2018). In case of
respective company the segmentation has been explained below:
Demographic: The respective company divide its market on the basis of age or gender.
The target market under this category is people of all age and gender.
Geographical: The selected new businesses venture is opening its store in the market of
UK.
Psycho-graphic: The preferences of people has changed in recent time towards their
health and they are taking healthy products for consumption. The respective company is
targeting those people who are conscious about their health.
Targeting
This factor of the model helps organisations in determining which sector they must target
to enhance their profitability. The respective company is targeting customer base for whom their
health is their main priority.
Positioning
This factor of the model assist companies in placing their products in the market
smoothly through conducting market mix.
Why you are confident that this business is feasible.
The company will make sure that the customers of the company are getting a healthy alternative
which is absolutely missing from the market. The company will provide benefits of herbal drinks
to the users which help the company in capturing the market segment of middle age group as
well as people who are highly concern about their health. The company will provide affordable
drinks which help them in attracting customers from middle income groups who wants to be
healthy without spending much cost on high end products.
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The market segment of the company will be middle age people both males and females along
with middle and higher income groups (Barbini, Corsino and Giuri., 2021). The company will
capture these segments as they are providing healthy drinks which can enhance the health of
their users. The company will choose small and local shops in order to reach out to their
customers. It will help the company in having wider reach and will also make sure that the
company is having profits too. The company wants to stand as a brand which is providing a
healthy drink to people without adding sugar to it. They are providing drinks which are rich in
nutrients and vitamins which will help in keeping the metabolism of people strong.
Business plan for Grab organics
Mission
The mission of the company is to provide best in class drinks to their customers which
are healthy as well as affordable and have the power to refresh the mind and spirit. To provide a
a herbal drink in order to enhance the health of customers and to create value which can make a
difference.
Vision
The vision of the company is to leave a legacy and create a positive impact on the lives of
people. The aim of the company is to provide a healthy working environment to their employees
where they can get inspiration from each other and can create good ideas.
Objectives
 To enhance the sales by 10%
 To create an effective brand image in customers segment
 To create an effective marketing campaign which can enhance brand awareness.
Tactics
The company is going to opt for a strong marketing strategy which can help the company
in attracting customers and in providing information about the product to the customers
(Dushnitsky and Matusik., 2019). The company is going to opt for social media marketing which
will help the company in having a wider reach and will also help the company in attracting
potential customers by providing them information about benefits directly via internet.
Financial requirements
The company will require an amount of $100000 in order to start their workings
according to the plan and to start their manufacturing process.
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Monitoring and controlling
It is important for the company to make sure that the product of the company is reaching
out to the customers and an effective method of doing so is to enhance the marketing tactics of
the company. The company will be able to reach out to their customers with the help of effective
marketing as well as STP strategy. The increase in the sales and ion the customer base of the
company will help them in analyzing their direction.
Marketing strategies of entrepreneurs
There are several marketing strategies which entrepreneurs implement in order to run
business operations smoothly. The following are some strategies which entrepreneurs execute for
different purpose:
Strategies during start-up phase
Understand Target Market
To bring new business venture the first step entrepreneurs take is to examine which
segment they should target so that they could enhance their market share and profitability
(Civera, Meoli and Vismara, 2019). They target those people who share same characteristics,
interest and preferences.
Analysing competition
After examining target market entrepreneurs evaluates the activities of existing
companies in same industry sector so they could offer different from them and could create
competitive advantage over them.
Identify vale proportion
At this phase entrepreneurs examine how their offered products or services would create
value for their potential customers and this helps them in gaining more growth and profit.
Establishing Long-term objectives
Entrepreneurs set their long-terms goals which helps them in getting direction and
encouragement to expand their business in the market.
Strategies during periods of growth
To accomplish growth in the market entrepreneurs implement various strategies which
assist them in gaining more profitability for their businesses. The following are some strategies
which they execute:
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 To increase the market share they apply market penetration strategies for their product or
services and promote them to make people aware about them (Larson, 2020).
 They also execute market development strategy for launching their products in new
market or for new customer base. For promoting their products they utilize different promotional channels which includes
both online and offline platforms.
Strategies during consolidation
Consolidation is the process where entrepreneurs combine two or more business ventures
to make it large organisation. The following are some strategies which entrepreneurs implement
during the phase of consolidation:
 They implement Statutory consolidation under which tow or more companies are
combined before their shutdown to convert them into large organisation.
 The second strategy which they execute is Statutory merger where one company purchase
the other organisation, liquidates its assets and shut it down (Hillman and Baydoun,
2020). Another strategy which is used includes Stock acquisition under which entrepreneurs buy
majority shares of another company.
Strategies during underperformance
Entrepreneurs implement several strategies when they observe their business is
underperforming. Some strategies are mentioned below:
 They take feedbacks from their potential customers in order to understand where they are
lacking in providing quality services or products.
 They analyse the root cause of their underperformance for particular product or services.
Quantitative and qualitative planning tools that entrepreneur could use to mitigate their risks
Quantitative research are those research which consist of numerical data collection and
using graphs and charts to interpretate their outcomes.
Different types of quantitative planning tools-
Survey research- This is a type of quantitative research which can be used by researcher
by distributing their questionnaire through mails or hand over it to their customers and ask them
to fill it so that they can analyse the result like perception of their targeted customers (Feehan
and et. al., 2018). Here, entrepreneurs must choose a appropriate number of customers and ask
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them to fill the questionnaire and at the time of data interpretation, the results are analysed in
percentage like 15% customers out of 250 customers prefer to refuse the discounts which is
offered by company.
Correlation research- Here, researcher establish the relationship between two products
and find out how they impacted each other's sale in case of any change. For example, Grab
Organic is having correlation research to analyse whether their turmeric drink is having any
decline in sales by reducing the production of basil drink. For this research, company can select a
number of customers as well as they use some internal factors like employees performance and
many others to determine the result. Secondly, comparative study's result can be determined by
using charts, tables, statistics and few other forms. This can be used to mitigate the risk of
reduction in sales of one product due to declining in sales of another product.
Qualitative research is that research which consist to measure the outcome in words and
used to analyse the behaviour of customers. Here researcher, observe the behaviour of their
respondents and measure the result in essay format.
Different types of qualitative planning tools-
Individual interviews- In the method of qualitative planning tool where researcher
conduct face to face interview with customers of Grab Organic company and ask questions to
analyse their expressions and behaviour of responding the question. This will help company to
mitigate the risk of understanding customer complaints because here customers can explain the
researcher in detail about their issues and complaints which they face (Lester, Cho and
Lochmiller, 2020). Hence, company can take actions to solve the complaint effectively.
Focus groups- Here, researcher select a small group of customers and ask them to sit in a
observing room where cameras are installed. Then, the researcher ask questions directly to those
customers and observe their expressions as well as their cameras will also record the expressions
and responds of their customers. Hence, this will help companies like Grab Organic to use this
recording at the time of planning for new strategies and tactics for organisational growth. This
method will help them to analyse which product is more preferred by their customers and try to
manufacture that product more and also focusing on promotional activities of that particular
product.
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Common mistakes that first time entrepreneurs make
There are various mistakes are done by the entrepreneur that impacts their business
performance and functionality. It is important for an entrepreneur to analyse these mistakes and
issues and develop effective strategies to avoid them and gain competitive business environment.
Some common mistakes that are done by each and every entrepreneur in the process of stating
new business venture are mentioned below:
Not spending of marketing: It is the basic mistake which is done by entrepreneur such as
they do not pay their attention on marketing activities and allot limited budget for marketing
operations (Mazzarol and Reboud, 2020). It impacts overall business performance because
marketing is important for promoting business products and services in specific market place and
attaining higher market share.
focusing on only growth: In initially stage, entrepreneur only concentrates on the aspect
of earning profits that affect business long-term objectives. Instead of that entrepreneur has to
concentrate on services that are provides to customers, strategical decision-making and the
concepts of sustainability that enable business to gain competitive advantages for longer period
of time.
Ignore customer's responses: In the initially stage of establishing or running new
business venture, entrepreneur ignore feedbacks and responses of customers that directly impacts
on business operations and success. For sustainable growth of business it is important gain
customer responses and involve them in business decisions.
Not spotting target market: It is important for success of new business venture to
understand defined target market that contains similar characteristics, preferences and other
factors. It is the major mistake that is done by the entrepreneur who start new business venture
sue to lake of understanding of target market, business have no clear understanding of customers
that it creates confusion and uncertainty (Budiyono and Setyawasih, 2020).
Not keeping up with marketing trends: Current market trends are changing at fast rate so
it is important for entrepreneur of new venture to analyse these trends and develop effective
policies accordingly. In initial stage entrepreneur do not analyse these trends and start business
on the bases of business plan. It impacts overall business performance and functionality in
competitive business environment.
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CONCLUSION
As per above report. It can be concluded that entrepreneurship is defined as the process of
starting new venture in specific market place through bringing new business idea that is quite
differentiated from other competitors. Before starting business, entrepreneur conduct feasible
market study, select specific market segment and analyse competitiveness within in dusty that
help business to gain competitive advantages over other competitors. Business uses different
marketing strategies for attracting number of customers and attain higher market share. In the
process of developing planning and strategies, qualitative and quantitative planning tools or
techniques are used. These techniques help business to mitigate the risk that are faced by
organisation. In the initial stage, businesses faces various difficulties and risk that impacts
business overall performance and functionality. There are various common mistakes are done by
the entrepreneur in the process of starting business operations so, entrepreneur should analyse
these mistakes and develop policies to gain sustainable advantages.
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REFERENCES
Books and Journals
Abdelkarim, A., 2019. Toward Establishing Entrepreneurship Education and Training
Programmes in a Multinational Arab University. Journal of Education and Training
Studies, 7(1), pp.1-9.
Barbini, F.M., Corsino, M. and Giuri, P., 2021. How do universities shape founding teams?
Social proximity and informal mechanisms of knowledge transfer in student
entrepreneurship. The Journal of Technology Transfer, 46(4), pp.1046-1082.
Bartlett, A., Moungkhounsavath, S. and Phimmavong, B., 2017. Promoting agricultural
entrepreneurship in Laos. Rural 21: The International Journal for Rural Development,
51(3), pp.32-33.
Budiyono, H. and Setyawasih, R., 2020. Entrepreneurial Intentions among Entrepreneurship
Course Students Shaped by Individual Effects and Family Support.
Civera, A., Meoli, M. and Vismara, S., 2019. Academic entrepreneurship: between myth and
reality. In A Research Agenda for Entrepreneurship and Innovation. Edward Elgar
Publishing.
Dushnitsky, G. and Matusik, S.F., 2019. A fresh look at patterns and assumptions in the field of
entrepreneurship: What can we learn?. Strategic Entrepreneurship Journal, 13(4),
pp.437-447.
Feehan, L.M. and et. al., 2018. Accuracy of Fitbit devices: systematic review and narrative
syntheses of quantitative data. JMIR mHealth and uHealth, 6(8), p.e10527.
Hillman, J.R. and Baydoun, E., 2020. Innovation, Creativity, and Entrepreneurship in Academia:
A Review. Higher Education in the Arab World, pp.13-71.
Larson, S., 2020. ENTREPRENEURSHIP AND SUSTAINABILITY IN PRACTICE: TRIPLE
BOTTOM LINE IN THE FASHION INDUSTRY.
Lester, J.N., Cho, Y. and Lochmiller, C.R., 2020. Learning to do qualitative data analysis: A
starting point. Human Resource Development Review, 19(1), pp.94-106.
Martindale, T., 2019, April. Entrepreneurship for the People: Government Resources for
researching, starting, and growing your business. Alabama Library Association Annual
Conference.
Mazzarol, T. and Reboud, S., 2020. Work Book: Planning, Business Models and Strategy. In
Workbook for Entrepreneurship and Innovation (pp. 77-85). Springer, Singapore.
Purwanto, M.I. and Wibowo, F.W., 2018. Motivate students to information technology
entrepreneurship and business development. Advanced Science Letters, 24(7), pp.5478-
5481.
Závodská, A., Šramová, V. and Konečný, V., 2019, April. Developing Entrepreneurship
Education: Case of the University of Žilina. In International Workshop on Learning
Technology for Education in Cloud (pp. 313-324). Springer, Cham.
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