Entrepreneurship in Business: Role of Entrepreneur, Risk Analysis, Innovation, Essential Elements of Entrepreneurial Process and Business Plan

This report discusses the role of entrepreneur, risk analysis, innovation, essential elements of entrepreneurial process and business plan in entrepreneurship in business. It focuses on Richard Branson's Virgin group and how he found opportunities in the market. The report includes a detailed SWOT and PESTLE analysis, marketing mix, STP, and financial plan for a hypothetical company called The Organic Shop (TOS).

Entrepreneurship in Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Q1....................................................................................................................................................1
1)..................................................................................................................................................1
2...................................................................................................................................................1
3...................................................................................................................................................1
Q2....................................................................................................................................................2
Evaluating the essential elements of entrepreneurial process......................................................2
Q3....................................................................................................................................................2
Preparing business plan...............................................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Entrepreneurship is concerned with possessing the ability to take risk for conducting any
innovating practice by creating value. In the current era, entrepreneurship in business is helpful
in gaining the significant capability to overcome peak level of competition. The present report is
based on Richard Branson who has Virgin group. The aim of report is to focus on explaining
role of entrepreneur, risk analysis, innovation, essential elements of entrepreneurial process and
business plan.
MAIN BODY
Q1
1)
There are several roles that are exerted by the entrepreneur which has been taken by
Richard Branson for his group of companies. It comprises taking initiative, organizing
resources, taking risk, identifying opportunities, decision making, innovation, etc. For making
Virgin group successful the one of the significant course of action taken by specified
entrepreneur is finding opportunities prevailing in market so that higher stability has become
possible. He has given emphasis on innovation along with optimum & proper planning to attain
objectives.
2
Risk analysis is related with identifying the lacking areas which can hamper growth &
development of company (Zahra, 2021). Richard Branson as being entrepreneur has given focus
on evaluating risk & threating factor that can negatively impact performance of Virgin Group.
He has analysed the risk before entering into entertainment, airline, etc. sector to maximize
profitability. This aids in eliminating irrelevant factor in turn achieving predetermined objective
of diversifying his action to gain stability & profitability has become possible.
3
Innovation is the practice of executing new ideas in order to offer new goods & services
(Diaz Ruiz and Kjellberg, 2020). Richard Branson is one of the successful entrepreneur who has
taken initiative to offer new services such as entertainment, animation, flights, etc. so that
greater market share in world can be covered. Offering social service has been done by him for
achieving proper capabilities to attain trust & faithful working environment which can contribute
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in enhancing chances of accepting innovation practice of his companies. Innovation has allowed
him to achieve the records in worldwide.
Q2
Evaluating the essential elements of entrepreneurial process
There are basically few steps of entrepreneurial process which includes are as follows:
Idea generation
The process of entrepreneurial begin with creation of any new idea that is helpful in
meeting the needs of customers and helpful in overcoming the prevailing issues.
Opportunity evaluation
In this step much emphasis is provided on having significant evaluation of the
opportunity that can be grabbed with invested capital (Audretsch and Moog, 2020). It allows to
check the cost and benefit associated with it so that further step can be taken if desirable
outcome have possibilities.
Planning
It includes formulation of strategies & operational plan for carrying out the business
activities. This basically provides the road map for moving forward.
Company formulation
In this selecting right for of entity along with making compliance with legal formalities is
exerted to launch the business (5 Stages of Entrepreneurship, 2021).
Growth
After launching company entrepreneur pay attention on formulating products, attaining
greater profitability & establishing sustainability.
Q3
Preparing business plan
Company background & product description
The Organic Shop (TOS) offers the products which are eliminating usage of chemicals
in cosmetic sector. It will focus on developing differentiation through possessing establishment
in domestic market. The products comprise face cream, pack, shampoo, etc.
Mission
To offer organic products by maintaining greater amount of natural resources through
eliminating usage of chemicals.
Vision
Creating good brand image to get stability and higher profitability by selling larger
products to lead in sector.
Objectives
To incline revenue by 10% in every six months
To ensure optimum utilization of resources y declining cost by 25% by the end of year.
SWOT
Strengths
The company possesses strengths like higher
capital, effective market evaluation &
availability of skilled employees (What is a
SWOT Analysis? 2021).
Weaknesses
It has lacking areas such as low technological
implementation, ineffective planning &
forecasting & improper management of
resources
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Opportunities
Emergence of digitalization and higher
awareness of organic goods can incline sales
revenue.
Threats
There are several international players in
sector which can impact company adversely.
PESTLE
Political Factor Trade regulations, political stability, etc. will
not affect largely as will operate in domestic
market.
Economical Factor GDP, unemployment rate, purchasing power,
interest rate, etc. can negatively influence
company’s performance (Bosma, Sanders and
Stam, E.,2018).
Social Factor Changing taste & preferences, attitude,
cultural norms, etc. are positive for organic
products
Technological Factor Inclined availability of internet can positively
affect performance of organization.
Legal factor Health & safety, international standards &
quality measures can affect the organic shop.
Environmental factor Access to raw material, declining pollution,
carbon footprint, etc. are required to be
followed by firm for having smooth
functioning.
Competitors analysis
The Organic Shop (TOS) The Body Shop
Selling price Penetrating pricings strategy Competitive pricings strategy
presence Domestic market International market
USP Higher quality low cost Good brand image due to
higher quality
Marketing mix
Product Offers products for face, body, hair, etc. which involves
cream, pack, soap, shampoo and other goods. These
comprises higher quality.
Price Penetrating pricing strategy to cover good market share.
Place Presence in domestic market & digital platform
Promotion Strategies like print, social media, email, SEO, etc. will be
used to spread awareness of products.
STP
Segmentation On the basis of behavioural & psychology
Targeting Target customer who have health conscious & organic
preference to improve lifestyle
Positioning Quality & ow cost will be used of positioning in market
3

Financial plan
(Forecasted figures)
Particulars Amount
Revenue from sale 100000
salary 2000
raw material 25000
research & development 30000
general & administration 2500
marketing & advertising 3000
total cost 62500
Profitability 37500
Operational plan
It will focus on application of quality measure & significant management strategy
continue operational plan for having profitability via maintaining quality of products
(Chowdhury, Audretsch and Belitski, 2019).
Monitoring & controlling
Variance analysis and KPIs will be used for identifying areas to improve prevail g
performance.
CONCLUSION
From the above report it can be concluded that entrepreneurship is related with having
significant ability to create value. The current report has comprised information regarding h roe
of entrepreneur, risk analysis and innovation. Essential steps like idea generation, opportunity
evaluation, etc. business plan has bene formulated with including SWOT, PESTLE, marketing
mix, STP, etc that crucial to make strategic decision.
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REFERENCES
Books and Journals
Audretsch, D.B. and Moog, P., 2020. Democracy and entrepreneurship. Entrepreneurship
Theory and Practice. p.1042258720943307.
Bosma, N., Sanders, M. and Stam, E., 2018. Institutions, entrepreneurship, and economic growth
in Europe. Small Business Economics. 51(2). pp.483-499.
Chowdhury, F., Audretsch, D.B. and Belitski, M., 2019. Institutions and entrepreneurship
quality. Entrepreneurship Theory and Practice. 43(1). pp.51-81.
Diaz Ruiz, C.A. and Kjellberg, H., 2020. Feral segmentation: How cultural intermediaries
perform market segmentation in the wild. Marketing Theory. 20(4). pp.429-457.
Zahra, S.A., 2021. International entrepreneurship in the post Covid world. Journal of World
Business, 56(1), p.101143.
Online
5 Stages of Entrepreneurship. 2021. [Online]. Available through: <
https://digitalschoolofmarketing.co.za/digital-marketing-blog/5-stages-of-
entrepreneurship/>
What is a SWOT Analysis?. 2021. [Online]. Available through: <
https://www.liveplan.com/blog/what-is-a-swot-analysis-and-how-to-do-it-right-with-
examples/ >.
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