Innovation and Entrepreneurship: Business Idea Development and Business Plan

This document discusses the significance of innovation and entrepreneurship in developing a business idea and creating a business plan. It covers topics such as market analysis, industry analysis, SWOT analysis, and financial requirements. The case study focuses on Cadbury Dairy Milk.

Innovation and
Entrepreneurship
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Table Of Contents
INTRODUCTION……………………………………………………………………..….. 3
TASK1
Prepare a Business idea development plan which should be new and own development. The
new idea or innovation on an existing product or services and also use it as an competitive
advantage with a reason that why customers should buy this particular product……………3
TASK 2
Create a business plan which includes market analysis, industry analysis, operation detail,
SWOT analysis, opportunities and financial requirements……………………………………5
CONCLUSION……………………………………………………………………………….7
REFERENCES……………………………………………………………………………….8
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INTRODUCTION
Innovation is the tool of entrepreneurs which by means they exploit change as an
opportunity for a different business or a different service. Entrepreneurs need to search for
the source of innovation so that the changes and their symptoms indicate create opportunities
for successful innovation. Innovation should be viewed as an economic and social
phenomenon rather than a technological term. (Minafam, Z., 2019). In this report the
analysis has done on the development of a business idea with the concept of finding out the
reason that why this particular product or service is good for the customers. Also the research
has been done on the business plan which includes market analysis, industry analysis,
operation detail, SWOT analysis, opportunities for the business plan and financial
requirements. The chosen organisation is Cadbury Dairy Milk. Cadbury is a British
multinational confectionary company. It is fully owned by Mondelez International. It is
internationally headquartered in Uxbridge, west London and operates in fifty countries
worldwide. It is famous for its Dairy Milk Chocolate, the cream eggs, Roses selection box
and many other confectionary products. Cadbury was a constant constituent of the FTSE 100
on the London Stock Exchange until the company was bought by Kraft Foods Inc.
TASK1
Prepare a Business idea development plan which should be new and own development. The
new idea or innovation on an existing product or services and also use it as an competitive
advantage with a reason that why customers should buy this particular product
The business idea can be developed into six stages with the very first step generate
some ideas and write the pointers in a proper manner then select the best idea by reviewing
the list. After that do some research on the idea by having an analysis on the current market.
In the next step, refine the idea based on the research with modification as per requirement.
After that test the idea whether the customers have interest in that or not and also identify the
potential competitors. (Farinha, and et.al., 2016). In the last step it is important to analyse that
whether the customers are ready or not by identifying the market.
With reference to Cadbury, the innovation has been done by providing various kinds of
flavours with wide range of products. The flavours which include are: ginger, rose, curry
leaves, cranberries, blueberries, cardamom, coriander, mint, clove, mango, raspberries, litchi
and other various kinds of nuts flavoured chocolates. These flavours not only attracts adults
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but it also included every kind of age group. These kind of chocolates are also healthier for
every kind of person. The company can target Asian countries because the flavours which has
been infused in the chocolates are mostly attracted by the people of these countries. For
expanding the business they can adopt different kind of marketing strategies so that other
American, South Arabian countries, African, Australia and European countries can also take
interest in that. (Chepurenko, A., 2015).
Through different kind of marketing strategies it is trying to show that why the audience
need to buy this particular chocolate with new innovation. This chocolate not only uplifts the
mood of a person but also a solution for small hungriness. These flavoured chocolates help in
leaving the habits of taking tobacco, smoking. It is also healthier and not too much sweet in
nature which is good in terms of health. For making it popular the advertisement by popular
celebrities can also help in supporting for the expansion of business. For making the business
idea development plan perfect it is also important that to do a competitive analysis. It is
necessary for identifying the competitors in the market so that planning and strategies should
be implemented accordingly. (Elia, and et.al., 2017). By identifying the competitors research
can be done on the strengths and weaknesses relative to the brand. The keen eye should be on
the website of the competitor so that analysis can be done where our brand needs
improvement. Competitors market positioning also plays a very important role in finding out
how much work needs to be done to improve the market share for the new innovation. Along
with market share it is also important to take feedback of the customers and also review the
social media on timely basis. Reviews also help in analysing what needs to be improved
according to the market requirements and customer preferences. (Arz, C., 2017).
The innovation which is going to be launched it is important to check on the designing ,
sketch of the packaging and look of the chocolate. Because by the look and the outer design
and packaging of chocolate, customers get attracted towards it. It is important to do market
survey because through market survey it comes to know that how many people are liking the
product and how many persons take interest in that. And the feedback giving back by them
also plays a very important role in making the perfect business development plan. Developing
the final product and innovative product can act as a challenge and also as an opportunity for
creating a different stand in the market. Doing innovation in already established brand or
product is easy for catching the eyes of customers. Customers can easily trust on the brand
and spend their money on it. It’s a very good chance for Cadbury to earn good market share
and large scale business on a wider level. It is important to do innovation over a period of
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time. It helps to remain consistent in the market and audience can also not easily forget it.
Innovation not only increases the value of the company but also increases the trust of people
and employees into the company. Preparing business development plan is not tricky but it
needs lots of planning, strategies, objectives, targets and challenges which needs to be faced
while implementing the new innovation in the market. (Grohs, and et.al., 2015). For creating
a business development plan it is necessary to do lots of research and analysis so that the
desired outcomes can be achieved and expected product can be delivered to the market.
TASK 2
Create a business plan which includes market analysis, industry analysis, operation detail,
SWOT analysis, opportunities and financial requirements
Business plan is very important to launch any product and service in the market.
Because without business plan, the launch can’t be successful. The parameters which are
included in the plan is the basic foundation for the success of any business plan. Before
launching the product, it is important to do market analysis and trying to find out the need of
the market. (Dvouletý, O., 2017). Which sectors and demographics needs to be covered so
that the product development can be done accordingly. Cadbury also do market analysis so
that identification can be done regarding the competitors so that what needs to be done for
further improvement. Its characteristics are that they are good in terms of health and taste.
Under the business plan, it is necessary to do industry analysis. There are many competitors
of Cadbury are Mars, Nestle and Hershey.
It is important to note some points in the business plan so that the competitors can’t beat the
new innovation and have a close eye on the every move of their competitors. The product
can be delivered at the doorstep through online shopping websites and also it is available in
the physical market. (Yoganandan, G. and Radha, M., 2016). On the international level, when
large number of chocolates needs to be exported then through airways the product can be
transported. Within the country it can be transported to different states, cities through road
transport, railways and through other means of transport. For making a perfect business plan
it is necessary to do SWOT analysis so that strengths, weaknesses, opportunities and threats
can be identified. The strength of Cadbury is that it is a world leader, powerhouse brands and
product, positioning as a gift, brand name, brand equity, brand loyalty, promotions and a
good placement and distribution.
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Weaknesses of Cadbury is that it is difficult for the company to distribute in the rural areas.
Opportunities for Cadbury is that weakness can become opportunity for the company.
Penetrating the rural markets and improve the distribution channel can give an opportunity
for the company. The new innovation in the flavours of the chocolate can become an
opportunity for the company to attract more and more customers. Threats for the company
can be in this manner that over a period of time, costing and price of the product can rise
because of the reason that fuel cost has been increasing day by day. Due to which it becomes
difficult to distribute the product on a larger scale. By the time traditional values and value of
festival has been decreasing day by day due to which there has been less chances of
purchasing the product on a larger scale as compared to the previous time. With the rising
demand of people, they do not get satisfied only with chocolates they need some gifts also.
With the adding cost of gift there has been less chances of purchasing chocolate in the
coming period of time.
When every parameter has been considered, last but not the least it is important to analyse
the financial requirements of the company. These financial requirements include the cost for
any equipment, furniture, building work and premise costs. For preparing the product on such
a large scale, it is important that the company should have enough amount of budget for any
kind of requirements and challenges in terms of financial point. (Ramadani, and et.al., 2021).
The company should have budget around twenty five million pounds when they are
launching their new innovation in the market. Such a big amount is required because in case
the product doesn’t work out or company faces some challenges, problems or losses then they
should have proper budget so that they can recover themselves in an effective manner.
Sometimes when the company does not keep proper buffer or corpus for the difficult times
then it becomes a very major task to stand themselves like earlier times with a strong leg in
the market. If company has proper financial requirements then they do not need large amount
of time to recover themselves and they can quickly come with a new plan or idea in the
market. There are lots of touch points which needs to be consider while preparing a business
plan. It is very important to do every minute detailing so that nothing can be remain in the
implementation of the plan. If any single point is not to be considered seriously then after the
launch of the product lots of complaints and problems have been arising on the daily basis.
So it is necessary to take small steps while doing planning for any business plan. If business
plan has been made with full efforts and sincerity then there is less chances of facing fail tag
in it.
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CONCLUSION
Innovation and Entrepreneurship are interrelated with each other. When any company
has done innovation in their products and services then it totally impacts the entrepreneurship
in a positive manner. Innovation not only boost the entrepreneurship but also gives hope to do
continuously their work in a positive manner with over a period of time. The business idea
development is the core seed of any entrepreneurship which reaches out them at a global
level. (Weiming, and et.al., 2016). The idea should be so perfect and strong that no
competitor or any other can beat them. For the success of this new idea or innovation, it is
necessary to create a roadmap so that by walking on this roadmap they can achieve their
target and organisational objectives. For preparing this roadmap it is important to consider the
lots of parameters which includes market analysis, industry analysis, SWOT analysis,
operational detail and the financial requirements of the company. By considering all these
parameters and following these steps, the innovation can be launched successfully. Before
launching the new product, it is important to already think about the pros and cons of this
particular launch so that company can stand strongly in every situation whether it is bad or
good.
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REFERENCES
Books and Journal
Minafam, Z., 2019. Corporate entrepreneurship and innovation performance in established
Iranian media firms. AD-minister, (34), pp.77-100.
Farinha, and et.al., 2016. Networks of innovation and competitiveness: a triple helix case
study. Journal of the knowledge economy, 7(1), pp.259-275.
Chepurenko, A., 2015. Entrepreneurship theory: new challenges and future
prospects. Форсайт, 9(2 (eng)).
Elia, and et.al., 2017. Human-oriented corporate entrepreneurship. European Business
Review.
Arz, C., 2017. Mechanisms of organizational culture for fostering corporate entrepreneurship:
a systematic review and research agenda. Journal of enterprising culture, 25(04), pp.361-409.
Grohs, and et.al., 2015. Social entrepreneurship versus intrapreneurship in the German social
welfare state: A study of old-age care and youth welfare services. Nonprofit and voluntary
sector quarterly, 44(1), pp.163-180.
Dvouletý, O., 2017. Can policy makers count with positive impact of entrepreneurship on
economic development of the Czech regions?. Journal of Entrepreneurship in Emerging
Economies.
Yoganandan, G. and Radha, M., 2016. The role of educational institutions in fostering
entrepreneurship education in India. Shanlax International Journal of Management, 3(1),
pp.342-344.
Weiming, and et.al., 2016. Ten years of entrepreneurship education at chinese universities:
evolution, problems, and system building. Chinese Education & Society, 49(3), pp.198-216.
Ramadani, and et.al., 2021. Entrepreneurship in Kuwait. In ENTREPRENEURSHIP IN THE
GULF COOPERATION COUNCIL REGION: Evolution and Future Perspectives (pp. 25-
44).
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