Entrepreneurship and Business Development: Herbal Cosmetics

ENTREPRENEURSHIP AND
BUSINESS DEVELOPMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
New business concept .................................................................................................................1
Assessment of industry, market, organisational and financial feasibility....................................1
Key components...........................................................................................................................5
Competitive analysis and its advantages......................................................................................7
Marketing-mix for Herbal cosmetics...........................................................................................8
STP analysis of Herbal cosmetics................................................................................................9
Qualitative and quantitative models...........................................................................................10
REFERENCE.................................................................................................................................12

INTRODUCTION
Business development and entrepreneurship concentrates on venture development. It is
very important to build such environment which is suitable for new venture. Advanced
technology is bringing unlimited opportunities for new company. Entrepreneurial mindset and
creativity is required to bring new ideas and make new markets which provides advantage to the
community and business. Basically business development is the idea or initiative which makes
business deficient and effective or in simple language it makes business better. Business
development bring more profit and revenue in the business. This report will discuss new
business idea, further it will conduct industry, organisation, market and financial analysis. It will
evaluate value chain and business canvas model in relation with new business. It will also
discuss quantitative and qualitative models to manage potential risks.
MAIN BODY
New business concept
New business which is taken in this study is 'Herbal cosmetics'. It includes skin and hair
care products. Skin care range includes cleansing, toner, moisturiser etc. and hair care involves
oil, serum, shampoo, conditioner etc. The reason for selecting this business idea because it is
high in demand. As companies are manufacturing chemical based cosmetics and that is
adversely affecting skin of people. Target market of herbal cosmetics are women of age group
between 16-45 years. Women of this age group uses cosmetics on daily basis so that is why they
require something herbal which do not damage their skin. Using chemical based products are not
good for the skin so that is why the demand of herbal cosmetics is increasing among consumers.
The products of herbal cosmetics will solve problem related to dandruff, hair fall, wrinkles,
acne, sun burn etc. It is better to launch that new product which are demanded by consumers. By
conducting research it is found that the demand for herbal cosmetics are high in the market. This
product will be sold throughout UK. Consumers can buy cosmetics by visiting stores or through
online. This business will involve owner and his team of workforces.
Assessment of industry, market, organisational and financial feasibility.
Industry feasibility:
1

It will be helpful for the company in checking attractiveness and importance of their
products and services. This will be explained through Porter's five forces.
Porter's five forces
Threat of new entry- it is low because initial capital which is required is huge. Although there is
no barrier for new firm but to set this business is complex. It is observed that growth
opportunities for herbal cosmetics are huge.
Supplier bargaining power- it is low because in this industry business will get many suppliers
which supply various range of raw materials (Björk, 2017).
Rivalry- it is high because there are lot of firms which are planning to enter in this industry
because there is lot of scope in this particular industry.
Buyer bargaining power- it is low because consumer does not have multiple options for herbal
cosmetics as there are very few companies which provide such products and then also those
companies are having less product range.
Threat of substitution- this is high because if customers can find herbal products to be expensive
then they can shift towards chemical based products which they were earlier using. As there will
be low switching cost for the consumers.
Market feasibility:
It is the study which involves market prediction, market profiling, market impact,
demographic studies etc. it will be explained through pestle and swot analysis.
PESTLE analysis:
Political factors- this factor have major impact on the business. Government can impose laws in
direct or indirect manner on the business. Herbal cosmetics have to follow consumer protection
stands which is laid by the government (Shadman and et.al., 2021).
Economic factors- these factor includes demand,market trends, currency fluctuations etc. beauty
sector helps in the economic growth of the country. Inflation rate can also affect the profitability
of herbal cosmetics.
Social factors- this factor includes lifestyle, attitude, beliefs etc. products of herbal cosmetics are
cruelty free so that will help them in increasing their market share. Herbal products can be used
by male member of the society also.
2