Important Resource Of Environment

Assignment 1 – Individual Report You are required to come up with an idea for a business which forms the basis of your work for the assignment. Once the idea has been established you are encouraged to develop a business model, this can be a simple roadmap for your business and it is only used for you to be able to carry out the following tasks: Task 1 – Business Idea Development The business idea should be something new and your own development. It can be a totally new radical or an incremental innovation on an existing product/services, (Examples may include: Themed restaurants, Platform offering skilled workers for small tasks, online laundry service, News and information sharing app). The key thing to consider if using existing models is your competitive advantage and why customers would buy yours. Task 2 - Business Plan Once you are happy with the idea and the model you wish to develop/ write a business plan 

Running head: GREEN BICYCLES
GREEN BICYCLES
Name of the Student
Name of the University
Author note

1GREEN BICYCLES
Introduction
TASK1:
The environment is the most valuable and important resource that humans have, and
thus it becomes the duty of any individual to save and protect it. One way is, polluting less,
and for this bicycles can be chosen over motorbikes, cars or any electric vehicles (Jacyna, et
al. 2017). There are plenty of reasons as to why one should go for cycling. Cycling boosts our
immune system and helps to stay healthy and fit (one can stay it without trying too hard). It
helps in keeping our heart safe as cycling reduces near about 50% heart attacks. Hence one
can live longer and enjoy life (Götschi, Garrard and Giles-Corti 2016).
There are many environmental benefits that can be procured through cycling. It
reduces pollution, is very convenient and user-friendly as well. Moreover, there is a self-
satisfaction because cycling requires manpower that is driven by self. The more miles one
wants to cover the more efforts has to be put in. Cycles have always proved to be better than
using any motor vehicles. It is convenient, zero-emission, faster than walking, slow down
global warming. The main problem with motorbikes is, one has to pay for parking, fill fuel
and there must be an auto-insurance for them, but in the case of cycling, there are no such
problems. For every congestion and heavy traffic and due to urbanisation, bicycles are a way
better solution to all these problems hence increasing the green transportation (Horton, Cox
and Rosen2016).
This report discusses about the various analysis required for a newly launched
company named ‘Green Bicycles’ and their approach on different market analysis,
operational analysis, industry and SWOT analysis, their financial requirements and the
importance of all these analyses with suitable theories.
TASK2:

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Market Analysis:
Everyone loves it when s/he pays less and gets more. The same thing happens when it
comes to ‘Green Bicycles’ here one has to make a small investment, and many benefits can
be drawn from the same. An online service provider that includes easy, comfortable,
economical and sustainable way of movability. For the countries that are emerging, cycling
has been a major mode of transport both for the poor as well as the rich. Most of the people
prefer to ride bicycles overriding cars as they as easy to use and they are not stuck in jams,
unlike cars. A lot of traffic can be by-passed through cycles. Hence, it has been a major
reason why cycles are at a demand now. Moreover, people of our society have become more
health-conscious and try to remain fit and healthy, and cycling is the best option one can opt.
Cycling also helps to explore many unknown lanes and routes while riding. Hence, there is an
exponential and anticipated growth in the bicycle industry looking at the present demand of
the customers in the market.
Demographic segmentation Age: 13-52years.
The future of any nation is their youngsters, and
hence they should know about their
responsibilities towards the environment as
cycling slow down pollution and there is no
fuel emission which again is good for a healthy
environment. Youngsters nowadays are more
concerned with their health and what better
than cycling, which covers all the requirements.
Therefore, ‘Green Bicycles’ mostly aims at the
people who are agile, young and also the

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middle-aged people finding ways to keep
themselves fit and healthy.
Gender: Since cycling is above all bars and
anyone can do it anyhow and anywhere, hence
there is no gender preference for using ‘Green
Bicycles’ as everyone can use it according to
their comfort zone.
Occupation: ‘Green Bicycles’ is open for all,
whether working or non-working, people can
avail the service of the company as the main
aim is to focus on ease of mobility than
anything else. No occupation bar so as to
restrict the use of the service (Westland, Mou
and Yin, 2019).
Geographic Segmentation The main goal of ‘Green Bicycles’ is to serve
their customers in a way better than others; the
grouping of customers is done on the basis of
where they stay or live. As a result, it becomes
very convenient for them to use this service as
it is located in a prime location that is easily
feasible by everyone both for the 2-tier and 2-
tier cities (Morton 2018).
Psychographic Segmentation People who like adventure or who wants to
explore new areas or lanes would definitely

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enjoy the service of ‘Green Bicycles’ (Ricci
2015).
SWOT analysis:
This technique helps in identifying the strengths, weaknesses, opportunities and threats of any
business or a person and helps in making precise decisions (Sarsby2017). It is also helpful in
making profit for the organisation. This technique becomes very helpful as the threats known
can be resolved preventing inconvenience (Gürel and Tat 2017).
STRENGTHS
 Great connectivity.
 Pocket-friendly.
 Easy go through congested roads.
 Good for health, less carbon content in
the atmosphere.
WEAKNESSES
 Takes time for the user to get familiar
with the system.
 Accidents due to over speeding.
 Increased competition (Mazzocato
2019).
OPPORTUNITIES
 Generation of revenue by using the
cycle’s space (mudguards) for
advertising.
 Uses sustainable technology (Ison and
Shaw 2012).
 Promotes physical activity that leads
to improved health.
 Increasing cost of fossil fuels.
THREATS
 Thefts (Ding et al. 2018)
 Vandalism
 Difficulty in shifting of commuting
patterns.

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STRENGTHS:
It is very important that the service provided by bicycle rentals should have a network
that is well connected, direction-oriented and is feasible for everyone using their service.
Green Bicycles provides greater connectivity of routes and serves the last mile than any of its
competitors; they have a strong route system which many of its competitors fails to provide.
The rent for the bicycles are very cost-effective and can be used by most of the people
be it rich or poor, equal attention and service is provided to both them. As a result, no point of
grievances occurs among the customers.
When stuck in traffic, bicycles are way much better as they can go through congested
roads even and one can reach their destination on time without getting late.
It helps in reducing the carbon concentration as there is no fuel emission by bicycles
and therefore keeps the environment clean, safe and protected. Cycling helps in keeping one
healthy as it reduces many severe health hazards and keeps us fit and away from diseases like
cancer.
WEAKNESSES:
If the rider is new, it becomes difficult to know about the routes and lanes; therefore,
it becomes a bit time consuming for the rider to get accustomed with the different routes that
are routed by Green Bicycles.
When roads or lanes are wider, it fascinates the driver to explore with speed, thus
causing over speeding, which may pose a danger to the riders and sometimes leads to
accidents or severe injuries.

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A huge competition is noticed as the bicycle industry is now at a boom and is
expected to grow more, making it difficult for the company to cope up.
OPPORTUNITIES:
Various industries can use the body space or the mudguards of the bicycle for
advertisement. When a bicycle is used for advertising a high impact impression is delivered,
and it becomes an ideal source for the pedestrian areas.
Cycling is considered as the most sustainable mode of transportation not just for short
trips, but also for medium distance trips. It is economical, does not harm the environment and
takes up a very little space as compared to any motor vehicle. Besides, it requires a very less
maintenance.
Many cardio diseases like heart attacks, strokes, even high blood pressure can be
maintained through cycling. If one needs to be fit and stay healthy, the best option that an
individual can go for would be cycling as it is the most natural way of preventing many
diseases.
The ever increasing cost of fossil fuels has given a rise in the usage of bicycles as an
alternative which has helped the bicycle industry to grow exponentially. Hence, it can be very
useful for the future and will result in sustainable development.
THREATS:
There are many threats associated with the bicycle industry, and the most common is
theft, especially in densely populated areas. It may even occur if the locks of the bicycles do
not work.

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Vandalism is again one of the potential threat associated with the bicycle industry.
When an action involves destruction or damage to any property, be it public or private, it is
called vandalism. It is often seen that people do it intentionally many a time.
Sometimes, it is observed that the rider faces a lot of trouble due to the commuting
patterns or the routes enrooted probably due to lack of knowledge about that particular street
or lane.
Industry analysis: this can be done using Porter’s five force model.
This model helps in analysing and anticipating the competitiveness of any
organisation or business in the market and what further steps can be taken to improve it and
make it better (Dälken 2014). It also helps in determining the strategy that needs to be
developed in order to stay strong and intact in the market (Wang 2014).
INDUSTRY
RIVALRY
THREAT OF NEW
ENTRANTS
BARGAINING
POWER OF THE
BUYERS
BARGAINING
POWER OF THE
SUPPLIERS
THREATS OF
SUBSTITUTES

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Threats of new entrants:
 Production is costly as economies of scale is difficult to achieve.
 Many legal requirements need to be fulfilled before starting the business, due to
which it becomes difficult for the new entrants.
All these factors result in making entry difficult and hence make new entrants a weak
force.
Bargaining power of the suppliers:
 Suppliers present is huge in the bicycle industry.
 The suppliers have a standardised and differentiated product which lowers the
switching cost.
All these factors are making it a strong force for their bargaining power.
Threats of substitutes:
 Substitutes operating are very less and have a low profit earning.
 The available substitutes provide better quality and are very expensive.
All these factors are making threats to substitute a weaker force.
Bargaining power of buyers:
 The income of the buyers is low; hence a pressure to purchase at a comparatively low
price is constantly there.
 Difficulty in switching.
All these factors are making it difficult or the bargaining power of buyer a weak force.
Rivalry among the competitors:
 Competitors present is very few in this industry.

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 Fixed cost is high.
All these factors are making rivalry among competitors a weak force.
Porter’s five model thus gives a complete analysis of the industry
Operations analysis:
The most helpful method to access the performance of any business is through
operational analysis. It helps in determining the cost of production, how much compatible the
performance is with the goals of the organisation.
Operational analysis includes the location where the industry operates, what will be
the medium of distribution, how the customers will reach the store, and so forth.
The location chosen by ‘Green Bicycles’ is exactly in the middle of the city, which is
considered as the prime location of that particular city with a huge footfall everyday flocking
in.
Due to this location, the store will attract a lot of customers towards it, as it would be
very convenient for the customers to visit the store smoothly (Sachdeva and Goel 2015).
Being at the centre of the city it provides a great distribution channel, and people can visit the
store while walking, through public transport or even can use their vehicles. ‘GREEN
BICYCLE’ makes a bulk purchase and then rent it to the customers. Once the customers
reaches the store they will have to make a cautionary deposit of $10 and then they can avail it
by giving a rent of $2.5 per hour. With this, they can make an easy and convienient transport
to wherever they want.
Financial analysis:
GREEN BICYCLES Business Startup
Costs

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FUNDING Estimated Actual Over/(Under)
Investor Funding {42}
Owner 1 10,000 9,600
(400
)
Owner 2 5,000 5,500 500
Other
Total Investment 15,000 15,100 100
Loa
ns
Bank Loan 1 200,000
Bank Loan 2 200,000
Non Bank Loan 1
Total Loans 400,000 - -
Other Funding
Grant 1 25,000
Other 16,000
Total Other Funding 41,000 - -
Total FUNDING 456,000 15,100 100
COSTS Estimated Actual Under/(Over)
Fixed Costs
Advertising for Opening 100000
Basic Website 10000
Brand Development 7500
Building Down Payment 50000
Building
Improvements/Remodeling 10000
Business Cards/Stationery 3000
Business Entity 10000
Business Licenses/Permits 5000
Computer Hardware/Software 10000
Decorating 30000
Franchise Start Up Fees
Internet Setup Deposit
Lease Security Deposit 25,000
Legal/Professional Fees

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2,500
Machines & Equipment 7,000
Office Furniture/Fixtures 6,500
Operating Cash (Working
Capital) 50,000
Point of Sale
Hardware/Software 3,600
Prepaid Insurance 25,000
Public Utilities Deposits 3,000
Reserve for Contingencies 2,500
Security System Installation 2,800
Setup, installation and
consulting fees 1,100
Signage 1,000
Starting Inventory 2,600
Telephone 1,000
Tools & Supplies 1,500
Travel 2,300
Truck & Vehicle 2,800
Other 1 (house keeping) 3,600
Other 2 (maintenance) 5,000
Total Fixed Costs 248,800 - -
Average Monthly Costs
Advertising (print, broadcast
and Internet) 250,000
Business Insurance 26,000
Business Vehicle Insurance 25,000
Employee Salaries and
Commissions 50,000
Equipment Lease Payments 10,000

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Inventory, raw materials, parts 15,000
Franchise Fee 32,000
Health Insurance 16,000
Internet Connection 6,000
Loan and Credit Card Interest
& Principal 6,500
Legal/Accounting Fees 6,500
Merchant Account Fees 1,000
Miscellaneous Expenses 15,000
Mortgage Payments 36,000
Lease Payment 23,000
Owner Salary 35,000
Payroll taxes or Self-
employment tax 38,000
Postage/Shipping Costs 26,800
Security System Monthly
Payment 34,102
Supplies 23,652
Telephone 23,222 65 23,157
Travel 2,600
Public Utilities 2,800
Website Hosting/Maintenance 24 15 9
Other 1 (specify) 8,000
Other 2 (specify) 3,600
Total Average Monthly Costs 715,800 80 23,166
x Number of Months 6
Total Monthly Costs 4,294,800 480 138,996

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Total COSTS 4,543,600 480 138,996
SURPLUS/(DEFICIT) (4,087,600) 14,620 4,102,220
Thus, from the above discussion it can be concluded that many things needs to
analysed and prepared for starting any business. Location of the store, inventories to be
brought, managing staffs, even handling of grievances is important and the business owner
must have these skills intact in order to achieve success of the business.
It is very important to understand that the evaluation of the strategies must be
critically analysed and evaluated in order to achieve effectiveness in the business.
For starting of any business especially a small one, many theories must be taken into
consideration order to access the requirements and performance of the business, and this can
only be developed with various operational models and theories.
The major discussion of this report is how a small business develops and what are the
things that must be kept in mind while starting any business. Here, the techniques used
models followed, strength, weakness and other things are kept in an account and is found that
all the aspects are equally important and needs to be adapted in the way of thinking and doing
a business.

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REFERENCES:
Götschi, T., Garrard, J. and Giles-Corti, B., 2016. Cycling as a part of daily life: a review of
health perspectives. Transport Reviews, 36(1), pp.45-71.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Harding, S., 2017. MBA management models. Routledge.
Horton, D., Cox, P. and Rosen, P., 2016. Introduction: Cycling and society. In Cycling and
society (pp. 17-40). Routledge.
Ison, S. and Shaw, J., 2012. Cycling and sustainability. Emerald Group Publishing.
Jacyna, M., Wasiak, M., Lewczuk, K. and Karoń, G., 2017. Noise and environmental
pollution from transport: decisive problems in developing ecologically efficient transport
systems. Journal of Vibroengineering, 19(7), pp.5639-5655.
Johnson, S.D., Sidebottom, A. and Thorpe, A., 2008. Bicycle theft. Washington, DC: US
Department of Justice, Office of Community Oriented Policing Services.
Mazzocato, S., 2019. The impact of electrification on the bicycle industry.
Morton, C., 2018. Appraising the market for bicycle sharing schemes: Perceived service
quality, satisfaction, and behavioural intention in London. Case Studies on Transport
Policy, 6(1), pp.102-111.

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Ricci, M., 2015. Bike sharing: A review of evidence on impacts and processes of
implementation and operation. Research in Transportation Business & Management, 15,
pp.28-38.
Sachdeva, I. and Goel, S., 2015. Role of Store Atmospherics on Customer
Experience. International Journal of Multidisciplinary Approach & Studies, 2(3).
Wang, H.L., 2014. Theories for competitive advantage.
Westland, J.C., Mou, J. and Yin, D., 2019. Demand cycles and market segmentation in
bicycle sharing. Information Processing & Management, 56(4), pp.1592-1604.
Sarsby, A., 2016. SWOT analysis. Lulu. com.
Dälken, F., 2014. Are Porter’s five competitive forces still applicable? A critical examination
concerning the relevance for today’s business (Bachelor's thesis, University of Twente).
Ding, N., Zhai, Y.M., Hu, X.F. and Ma, M.Y., 2018, October. Crime Prediction of Bicycle
Theft Based on Online Search Data. In The Euro-China Conference on Intelligent Data
Analysis and Applications (pp. 117-128). Sprinsger, Cham.

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