Innovation and Entrepreneurship: Online Delivery by Drone Technology

This document discusses the new business plan of online delivery using drone technology. It covers the structure of the business plan, executive summary, market analysis, management and operations, financial forecast, and more.

Innovation and
entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
Structure of business plan ...........................................................................................................3
Executive summary .....................................................................................................................3
The business product and service ...............................................................................................3
Market analysis ...............................................................................................................................3
Market research ...........................................................................................................................3
Management and operations ...........................................................................................................4
Financial forecast ........................................................................................................................4
Understand how to choose a capital structure............................................................................10
Understand how to raise funds for firm.....................................................................................10
Explain how to manage working capital and cash flow............................................................10
There are various strategies generally used to assess fixed resources under a conventional
capital planning framework. The more significant ones are: ....................................................14
Explain how to manage current risk..........................................................................................14
Strengths, areas for improvement and what are you going to do improve your leadership......15
Conclusion ....................................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Structure of business plan
According to the new business plan, it is concluded that this organisation is launching the
online delivery by use of drone technology. Before starting the implementation of new business
plan, it is important to manage the different details related to the business plan.
Executive summary
The new business plan is related with online delivery e by using the drone technology.
This is an effective service and there are opportunities within market for managing the different
activities of business and plan the the work in effective manner. delivery through drone will
minimise the human contact and also the time taken for delivering the product or service. This
will help in in increasing the customer satisfaction level. Hence, this business idea will provide
help in in managing the work and achieving success within market.
The business product and service
The drone technology is defined as aircraft which does not require any human to fly it. Is
generally known as unmanned aerial vehicles which are used for managing the work in proper
manner. A drone is useful for the organisation as it will provide the opportunity for contactless
delivery and managing the fast delivery of products and services.
Market analysis
Market research
In the present business plan, drone technology is used for providing online delivery of
products and services. There are drones which are providing delivery and providing passes to
different people. There are various other companies like Walmart, Amazon, Google are working
upon managing the investment in drone delivery projects as it is one of the most essential
projects which will be providing success to the business. The new business plan for the present
organisation is online delivery by using drone as it is a very innovative technology and it will
help in providing the products to customers in very less time. drones are having terrific uses such
as delivering of parcels, cinematography, advertising, environmental projects, mining, etc. These

all are done in proper manner by the drone technology. The business plan chosen is based upon
this technology because it is the future of online delivery. The project when is defined as
autonomous delivery drone service that aims for increasing the axis of goods and minimising the
condition of traffic in cities. It also provides help for eliminating the emissions of carbon dioxide
which attribute because of state transportation of goods.it is important for the business plan that
it is executed properly so that there are no loss while managing the activities of project and the
business plan will succeed within market.
Management and operations
Financial forecast
Market Analysis and Research- This company conducts effective and strong market
researches and analysis before starting nay new project or business plan.
STP Approach- The full form of STP is segmentation, targeting and positioning of
products or brand in market. This strategy is helpful in developing strategies that will help to
grab customers effectively. The STP of this company is as follows:-
Segmentation- The segmentation of the business is mentioned below –
 Psychographic segmentation- The service and product provided to customer depends
upon the thinking and need of people.
 Geographic segmentation- The market segmentation is done on the basis of region like
rural, urban and semi-urban
 Behavioural segmentation- This involves the segmentation of market on behaviour of
people towards using wooden furniture over plastic or glass.
Targeting- A target market is one which is selected for promoting the new product to the
selected target audience. The target market for the present business is people having high
income.
Positioning- This means concept of marketing that outlines what business must do for placing
product in customer’s mind.
SWOT analysis- SWOT analysis is defined as a tool for analysing the strength and
weakness of company in strategic planning tool which help managers to identify their strength,
weaknesses, opportunities and threats which are related to level of business competition.
Therefore SWOT analysis of the business plan is mentioned as follows:-

Strength
 Brand loyalty of the new business
organisation is very high.
 The new business plan for innovating
in online delivery and providing the
products by using drone.
 This is a contact less delivery and it
will be appreciated by the customers.
Weaknesses
 This company has ineffective
distribution channel.
 The market analysis is poor.
Opportunities
 There is an opportunity for expanding
the service in different regions.
Threats
 There are other companies which are
also dealing in online delivery of
products and new innovation in those
companies is a threat for new business.
Budget- It is an essential part before establishing new product or service in market. The
manager of the new business plan has prepared budget which will be helpful for next 5 years
which is shown below:-
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 6000 8500 12000 14500 18350
Investment 12000 14000 25500 32000 13500
Total 6000 22500 37500 46500 31850
Marketing
outlay
Promotion 6500 3200 4300 3300 3250

Sales
publicity 2200 2100 3300 2200 2000
Sample
distribution 4200 2500 6000 3000 4650
Total 12900 7800 13600 8500 9900
It is ensured that the customers are satisfied by the product and service they are receiving. The
new furniture delivery through online medium is helpful for maintain loyal and happy customers.
The furniture will be delivered to customers in the chosen time slot without delay. The amount or
cash is taken through online basis or cash at the time of delivery.
Financial Plan and Risk management
This is very essential and important concept of business plan. It is concluded that there is
need for managing the budgets and funds properly for managing the new business. This is very
important for analyzing the different activities and plans of the business so that all work is done
in effective manner. Different sources used by IKEA to use the money properly for managing
work involved in business plan and strategy. All the business activities are involved in managing
work and achieving success and goals. There are various some aspects which will be mentioned
in proper manner -
Important assumptions: This is very essential for the IKEA company to manage the financial
plan properly before starting any plan. These include plan month, current interest rate, long-tern
interest rate, tax rate and others.

Break-even analysis: This is a financial technique which supports IKEA for managing
the business plan. This is the stage of business in which a new product or services provided
within market is profitable. BEP of IKEA is mentioned below -:

Projected profit and loss: This is an another tool of finance which can be used by the
new business plan for managing the business activities in proper manner. This is helpful for the
company to identify the income and expenses of the firm.
Projected cash flow: It is another main financial tool that is used by new business
organisation for evaluating outflow and inflow of cash. This financial tool will also support the
company in implementing market new products and services in market.

Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 750
Cash sales 3350
Credit card sales 14795
Free issues 575
New kitchen equipments 6540
Food purchase 7900
Beverage purchases 12970

Purchase return 200
Discount received 2300
Credit notes 190
Rent 2850
Utilities 475
Functions and events (Income) 5967
Wages 4590
Debtors 700
Till shortage 152
37502 37502
Maendolows stakeholder analysis
The Mendelow stakeholder analysis is a tool which is used by the companies in order to analyse
stakeholders and the attitudes and beliefs of them. It is seen that there are different factors like
level of interest which are involved within the stakeholder for managing the strategies for the
company. There are basically four quadrants which provide the analysis of stakeholder within the
Mendelow matrix. These are mentioned below
 High interest and high power - this is known as the key player and there is need by the
companies to manage and engage within the work properly. This quadrant includes the
influence of the product on the strategy for organisational change.
 the second quadrant is of high interest and low power and this group is having interest in
the happenings of the new product. These are having more power in order to affect the
organisational change. It is important to keep informed about changes within the quotes
for managing the power.
 Low interest and high power - according to this group, the stakeholders can satisfy the
high interest and high power of customers. Is quadrant reflects that the company is
working properly for managing day work of organisation effectively.

 Low interest and low power - according to this group, there is interest within the
organisation for managing the direction and lacking the power for making the situation.
In this case, there is involvement of accepting position and managing resistance.
Understand how to choose a capital structure.
Capital is the cash organizations use for financing their activities. The expense of capital is
basically the lease, or loan fee, it costs the business to acquire financing. To comprehend the
expense of capital, you should initially comprehend the idea of capital. Capital for independent
ventures may simply be the provider credit they depend on. For bigger organizations, capital
might be the provider credit and longer-term obligation or liabilities, which are the company's
liabilities. in the accompanying field-tested strategy, the capital structure incorporate value
capital or regular stock. Other value records will be held income, paid-in capital, maybe favored
stock.
Understand how to raise funds for firm.
It is concluded that funds are raised by for the new business by by Venture business people
(VCs) normally need to put resources into somewhat more develop organizations than blessed
messenger financial specialists and now and again need to have to a greater degree a state in
dealing with the everyday tasks. Since VCs have an obligation to accomplish certain profits for
the firm or reserve, they need versatile and income positive organizations with demonstrated and
adaptable items and organizations. On the off chance that your organization fulfills these
necessities, you could apply for a venture with a VC firm. It's not the most straightforward thing
to achieve, however a lot of private companies have done it effectively.
Explain how to manage working capital and cash flow.

Severit
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to
mitigat
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Severit
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Contingency Plans S
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F1 Insufficient funding,
contributing to unanticipated
expenditures.
M
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7
A few little sum of
money is secured for
confronting
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• tbc Adopt an
evolving model
2 2 4
By withdrawing funds that
can impact the outcomes of
the event.
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Start-up funds and expenses
could be too high to last.
M
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5
Effective cash flow
analysis and
simulation to inform
investment
judgment, goals and
behaviour. 2 3 6
Turn to small application I
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Proje
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Team

There are various strategies generally used to assess fixed resources under a conventional capital
planning framework. The more significant ones are:
Net present worth investigation. Distinguish the net change in incomes related with a fixed
resource buy, and markdown them to their current worth. Imperative examination. Recognize the
bottleneck machine or work focus in a creation situation and put resources into those fixed
resources that boost the use of the bottleneck activity. Recompense period. Decide the period
required to create adequate income from an undertaking to pay for the underlying interest in it.
Evasion investigation. Decide if expanded upkeep can be utilized to draw out the life of existing
resources, instead of putting resources into substitution resources.
Particulars Debit Credit
Bank loan 12000
Cash in hand 11700
Capital 13000
Rates 1880
Trade creditors 11200
Purchases 12400
Sales 14600
Sundry creditors 1620
Debtors 12000
bank loan interest 1400
Other expenses 11020
Vehicles 2020
52420 52420
Explain how to manage current risk.
Risk Matrix
Negligible Minor Moderate Significant Severe

5 Very
Likely
Low
Medium Medium Medium
High High High
4 Likely Low Low
Medium Medium Medium
High High
3 Possible Low Low
Medium Medium Medium
High
Medium
High
2 Unlikely Low Low
Medium
Low
Medium Medium Medium
High
1 Very
Unlikley Low Low Low
Medium Medium Medium
Strengths, areas for improvement and what are you going to do improve your leadership
Leadership is important for the leaders and it must be managed effectively for achieving the
organizational goals. This is an essential factor that leads to manage the business activities
properly. This helps in managing the work and activities properly and reaching the targets of
company in proper manner.
Conclusion
From the above discussion, it is concluded that project of drone technology will be
successful for the company as this is new technique used within business. It helps to improvising
the delivery process to the customers. Many companies involved in E-commerce will be attracted
towards this product. The planned budget and risk management analysis is analyzed while
working on this project.

REFERENCES
Books and Journals
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development and validation. Journal of Modelling in Management. 9(1). pp.87-117.
Gyung Kim, M. and S. Mattila, A., 2013. Does a surprise strategy need words? The effect of
explanations for a surprise strategy on customer delight and expectations. Journal of
Services Marketing. 27(5). pp.361-370.
Komunda, M. and Osarenkhoe, A., 2012. Remedy or cure for service failure? Effects of service
recovery on customer satisfaction and loyalty. Business Process Management Journal.
18(1). pp.82-103.
Shah, D., Kumar, V. and Kim, K. H., 2014. Managing customer profits: The power of habits.
Journal of Marketing Research. 51(6). pp.726-741.
Spiess, J., and et. al., 2014. Using big data to improve customer experience and business
performance. Bell labs technical journal. 18(4). pp.3-17.
Torres, E. N., Fu, X. and Lehto, X., 2014. Examining key drivers of customer delight in a hotel
experience: A cross-cultural perspective. International Journal of Hospitality
Management. 36. pp.255-262.
Yang, Y., Liu, X. and Li, J., 2015. How customer experience affects the customer-based brand
equity for tourism destinations. Journal of Travel & Tourism Marketing. 32(sup1).
pp.S97-S113.