Innovation and Sustainable Business Development

This article discusses the benefits of innovation and sustainable business development for Danfoss, a business organization that produces products for refrigeration, air conditioning, and heating. The article explains how Danfoss is using the Man on the Moon event to gather innovative ideas from employees and implement them in their business operations. The article also discusses the socio-economic and environmental impacts of this strategic response on the business sector in Australia.

Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Innovation and Sustainable Business Development
Name of the Student
Name of the University
Author note

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Table of Contents
Part 1: Problem...........................................................................................................................2
1.1 Background of the problem..............................................................................................2
1.2 Definition of the problem.................................................................................................2
1.3 Evidence of the problem...................................................................................................3
1.4 Timing considerations......................................................................................................3
1.5 Consideration of the broader context...............................................................................4
Part 2: Benefits...........................................................................................................................4
2.1 Benefits to be delivered....................................................................................................4
2.2 Importance of benefits to the government........................................................................5
2.3 Evidence of benefit delivery.............................................................................................5
2.4 Interdependence................................................................................................................5
Part 3: Strategic response...........................................................................................................6
3.1 Method and criteria...........................................................................................................6
3.2 Strategic options analysis.................................................................................................7
3.3 Recommended strategic options.......................................................................................7
Part 4 Project options analysis...................................................................................................7
4.1 Project options considered................................................................................................7
4.2 Stakeholder identification and consultation.....................................................................8
4.3 Social impacts...................................................................................................................8
4.4 Environmental impacts.....................................................................................................8
4.5 Economic impacts............................................................................................................8
4.6 Overall evaluations of socio-economic and environmental impacts................................8
4.7 Financial analysis.............................................................................................................9
4.8 Risk Comparison..............................................................................................................9
4.9 Integrated analysis and options ranking.........................................................................10
Part 5: Deliverability of recommended solution......................................................................11
5.1 Details of recommended solution...................................................................................11
5.2 Commercial and financial...............................................................................................11
5.3. Management..................................................................................................................11
5.4 Delivery..........................................................................................................................11
Reference list........................................................................................................................12
Appendix A..............................................................................................................................14
Appendix B..............................................................................................................................15

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Appendix C..............................................................................................................................16
Part 1: Problem
1.1 Background of the problem
Danfoss producers products that are used for refrigeration air conditioning or heating and
the business organisation currently holds more than 70 factories where more than 20000
employees are working all over the world. Man on the moon is a popular high-profile event
hosted by this business organisation that involves all the employees of the workforce of the
organisation and the mission of this event is to collect the ideas of all the employees of the
company so that new innovative and creative ideas do not stop flowing in making it easier for
the management to continuously develop the business by gaining a competitive advantage in
their market of operation (van Westen & Zoomers, 2016). In this context the challenges the
management will have to exploit the knowledge and the ideas of all the employees in order to
help the radical ideas to get a platform as in most cases it has been seen that innovative ideas
struggle to get through the early stages of the development and the management of Danfoss
clearly realised this challenge and therefore has been hosting an event like man of the moon
in order to negate those issues.
1.2 Definition of the problem
As it has been observed that for long time survival the key is customer satisfaction and
tell lays the importance of innovation. It has been seen that the management of Danfoss
realised that in order to satisfy the changing demands of the customers in order to sustain the
productivity along with the reputation of the business organisation management will have to
introduce numerous innovative ideas frequently so that the management couldn’t sure that
they will be able to satisfy the demands of the customers in the near future also (Grobbelaar,
Gwynne-Evans & Brent, 2016). In today’s world the rivalry in the market is getting fierce
and therefore in order to gain the competitive advantage the management of the organisation

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
has decided to host an event which is named as man on the moon and this event involves all
the employees of the organisation that includes more than 24000 people. The concept of the
event is that all the employees of the organisations will come up with their innovative ideas
for securing the best interests of the company and initiative regarding hosting this event
actually started when the management of the organisation realised that in most cases the new
innovative ideas have to struggle to get through the primary phase is to get established and
therefore man on the moon can become a good platform where the individuals can easily
share their ideas and the best ideas will get recognition and will surely get materialized one
day.
1.3 Evidence of the problem
It has been seen that in today’s world the business organisations are facing issues as there
are a lot of ideas generating among the workforce of the organisations but all the ideas are
struggling to materialize due to the issues they are facing in the early stages of establishing
those ideas as models and theories (Shank, Shockey, & Financial, 2016). There are many
reasons because of these types of challenges that the management of the business
organisations face while introducing new innovative ideas in their operations and those are
lack of exposure of the individuals who have devised an idea that could have been and
innovative and beneficial one for the business sectors. Therefore the management of Danfoss
tried to introduce an event named man on the moon so that this event could become an
effective platform together and materialized innovative ideas collected from all the
employees of the business organisation.
1.4 Timing considerations
It is a matter of fact that if the measures are to be taken to make innovative ideas more
easier way and implement those in the operations of the business organisations it would be
better if all the management of the business organisations can offer a platform so that the

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
employees can work on their innovative ideas to materialize them for the best interest of their
organisations (Busse, 2016). In this regard it can be said that the ideas which are transparent
and innovative for all the stakeholders of Danfoss would be selected in the event named man
on the moon as this event can effectively contribute to simplify the procedure to introduce
innovative ideas in the business organisation in order to satisfy the current and the future
demands of the target customers of Danfoss that are changing rapidly.
1.5 Consideration of the broader context
There are numerous business organisations in the market of operation of Danfoss who has
offered are helpful and transparent mediator for MIT realizing the innovative ideas of the
employees of these organisations and their for the management of Danfoss has major plan to
launch an event named man on the moon so that it could be a platform to help those
innovative ideas generated from the workforce of the company to get materialized for the best
interest of the company.
Part 2: Benefits
It has been seen that the Rapid technological advancement has given a major boost to
almost every business organisations and there have been some significant innovations that
has been contributing significantly to the success of numerous business organisations (Ketata,
Sofka & Grimpe, 2015). Therefore the management of Danfoss has realised that their
program man on the moon can become effective together and materialized the innovative
ideas devised by their employees as the management of the organisation is blessed with a
workforce that involves more than 24000 employees across the world. Therefore it can be
said that the ideas gathered from the event like man on the moon can be beneficial for
securing the productivity and the profitability of Danfoss in a situation where the demands of
the customers are changing rapidly.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
2.1 Benefits to be delivered
The innovative idea of launching a program like man on the moon can benefit all the
stakeholders of Danfoss as it can effectively increase the organisational performance of the
business that can effectively generate more profitability. It has been observed that if the
management of the organisation can effectively create a bank of innovative ideas they can
deploy a team that would evaluate the ideas and choose the ideas that could be beneficial for
securing the productivity along with profitability of the organisation so that they can earn
huge reputation in their market of operation in order to secure the competitive advantage in a
market full of rivalries.
2.2 Importance of benefits to the government
Man on the Moon event provides well designed possibilities and innovative ideas to
the customers of Danfoss that can be adjusted in accordance with their demands. Therefore
introducing this innovative idea to use man on the moon as a launching pad in the business
sector of Australia can also in work significant changes in the industry and these innovations
can be immensely beneficial to the government as these innovations can give a major boost to
the economy of the nation Australia.
2.3 Evidence of benefit delivery
With the innovative ideas and transparent operations Danfoss has brought in
significant positive changes to the individual sellers and apart from that these innovative
ideas are providing benefits to the entire business sector of Australia by giving up major
boost to the economy of the country by increasing greater profitability utilising the innovative
ideas. After launching an event like man on the moon the business industry has been
experiencing drastic changes in materialize in innovative ideas for the best interests of the
companies and Danfoss has achieved huge productivity and reputation in the market of
operation along with all the internal and external stakeholders of the company.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
2.4 Interdependence
There are various interdependent features regarding developing innovative and new
ideas within the Australian business world. For an example it can be said that launching the
event man on the moon successfully can be looked at as related to the action of Australian
government regarding providing relevant and necessary resources and support to downforce
to bring in new ideas for the best interests of the organisation as well as the economic
condition of the country (Marti, Rovira‐Val & Drescher, 2015). It can be said that this idea
will only get make sure if the management of Danfoss can meet realise the creative and
innovative ideas that they will be collecting from the event name man on the moon where all
the employees of the company will participate.
Part 3: Strategic response
The business operations of Danfoss in Australia has received mixed responses from
the stakeholders of the organisation but when the management of the organisation launched a
program named man on the moon where all the employees of the organisation could
participate and shared their ideas the management of the organisation has experienced a
significant boost in their productivity and in their retention in their operational market.
Gathering new ideas and implementing them on the business operations have ensure that the
organisation has been able to reduce the costs of the company and the management has
experienced a boost in the productivity of the organisation and therefore it can be stated that
this strategic idea of the management of Danfoss has been very beneficial for the company as
well as for all the stakeholders.
3.1 Method and criteria
The management of Danfoss will continue gathering new ideas and implementing
them in their business operations in order to sustain their productivity and reputation in there
operational market which is in Australia and they will also deploy a team that will keep the

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
management updated in terms of all the necessary friends and changes in the buying
preferences of the customers so that they can become one of the leading companies in their
operational field.
3.2 Strategic options analysis
 The leaders should emphasize on hiring Employees with good professional skills and
creativity
 The rules and regulations set by the Federal Government of Australia should always
be maintained under any circumstances by the management of Danfoss
 The leaders of the managers of the business organisation should always check on the
ideas which are getting implemented
3.3 Recommended strategic options
 The management of Danfoss can approach the Government of Australia to provide
necessary aid
 The directors of Danfoss can intervene at any time and at any phase of gathering and
implementing innovative ideas
Part 4 Project options analysis
4.1 Project options considered
 The leaders and the management of Danfoss should always intervene in the operations
regarding research and development of the organisation by gathering and
implementing innovative ideas collected from man on the Moon event
 The management of the organisation will abide by all the rules said by the Federal
Government of Australia regarding the operations of the company
 The company will have to increase the effectiveness of the Human Resource
Department in order to hide and recruit Employees with more professional skills and
improved creativity

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
 The company will have to make sure that they have an excellent CSR policy
4.2 Stakeholder identification and consultation
The primary stakeholders of the business organisation are government of Australia
and the investors and the buyers and sellers can be looked at as the most important
stakeholders of the company who will get directly benefited from the profitability of the
business concern.
4.3 Social impacts
The event man on the moon will help to enhance the effectiveness of the business
organisation that can significantly help the organization to get more profitability and that can
directly benefit the economy of the country
4.4 Environmental impacts
 The projects of Danfoss will never affect the environmental balance
 The management of Danfoss always use eco friendly technologies for their operations
4.5 Economic impacts
 The event will create more competition in the market of Australia and can positively
influence the economy of Australia
 The event is highly beneficial for the economy of Australia and it can provide a huge
profitability to Danfoss
4.6 Overall evaluations of socio-economic and environmental impacts
Considering all the above mentioned facts it can be said that the event man on the moon will
be significantly beneficial for Danfoss and as well as the business sector of the Australian
market and for the Australian government also.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
4.7 Financial analysis
Rate Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
AN T I CI P A T E D S AL E S T OT A L $[phone] 750 690 1,200 1,600 2,500 3,600 1,800 3,800 3,900 2,850 24,285
P ERSON N E L (% OF T OT AL SA L ES ) 110% 110% 110% 110% 110% 110% 110% 110% 85% 85% 85% 85%
Human Resources - Headcount 5 5 5 5 5 5 5 5 5 5 5 5 5
Human Resources - Cost 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 300.00
Commission 0.10% 0.90 0.70 0.75 0.69 1.20 1.60 2.50 3.60 1.80 3.80 3.90 2.85 24.29
P ersonnel T otal $(000) 25.90 25.70 25.75 25.69 26.20 26.60 27.50 28.60 26.80 28.80 28.90 27.85 324.29
DI R E CT MA RK E T I N G (% OF T OT A L S A LE S )100% 100% 75% 40% 33% 25% 20% 10% 5% 5% 5% 5%
Telemarketing (% of Direct Sales) 100% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
Human Resources - Headcount 3 3 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 19.50
Infrastructure Support 25 10 25 10 25 10 25 10 25 10 25 10 210.00
Commission 0.10% 0.90 0.35 0.28 0.14 0.20 0.20 0.25 0.18 0.05 0.10 0.10 0.07 2.80
Training 25 10 25 10 25 10 25 10 25 10 25 10 210.00
T elemarketing T otal $(000) 53.90 21.85 51.78 21.64 51.70 21.70 51.75 21.68 51.55 21.60 51.60 21.57 442.30
Internet Marketing (% of Direct Sales) 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
Human Resources - Headcount 1 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 3.00
Website Development (one-time cost) 500 500.00
Hosting 10 10 10 10 10 10 10 10 10 10 10 10 120.00
Support & Maintenance 25 25 50.00
I nternet Mark eting T otal $(000) 535.25 10.25 10.25 10.25 10.25 10.25 10.25 10.25 10.25 10.25 35.25 10.25 673.00
Direct Mail (% of Direct Sales)
Human Resources - Cost 0.00
Material 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12,000.00
Postage 250 250 250 250 250 250 250 250 250 250 250 250 3,000.00
Direc t Mail T otal $(000) 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 15,000.00
Direc t Mark eting T otal $(000) 1,839.15 1,282.10 1,312.03 1,281.89 1,311.95 1,281.95 1,312.00 1,281.93 1,311.80 1,281.85 1,336.85 1,281.82 16,115.30
AG E N T /BR OK E R (% OF T OT A L SA LE S ) 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Communication 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Training 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 7,200.00
Discounts 10.00% 9.00 6.95 7.50 6.90 12.00 16.00 25.00 36.00 18.00 38.00 39.00 28.50 242.85
Commission (% of Agent's Sales) 10.00% 9.00 6.95 7.50 6.90 12.00 16.00 25.00 36.00 18.00 38.00 39.00 28.50 242.85
Agent/B roker T otal $(000) 918.00 913.90 915.00 913.80 924.00 932.00 950.00 972.00 936.00 976.00 978.00 957.00 11,285.70
DI S T R I BU T OR S (% OF T OT AL S AL ES ) 0% 0% 0% 0% 0% 15% 20% 40% 40% 40% 40% 40%
Communication 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Training 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 7,200.00
Commission/Discounts (% of Distributors' Sales)15.00% 0 0 0 0 0 36 75 216 108 228 234 171 1,068.00
Distributor T otal $(000) 900.00 900.00 900.00 900.00 900.00 936.00 975.00 1,116.00 1,008.00 1,128.00 1,134.00 1,071.00 11,868.00
RE T A I L ER (% OF T OT A L S A LE S) 0% 0% 25% 60% 67% 60% 60% 50% 30% 30% 30% 30%
Communication 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Training 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 7,200.00
Commission/Discounts (% of Retail Sales) 10.00% 0 0 18.75 41.4 80.4 96 150 180 54 114 117 85.5 937.05
Retailer T otal $(000) 900.00 900.00 918.75 941.40 980.40 996.00 1,050.00 1,080.00 954.00 1,014.00 1,017.00 985.50 11,737.05
CU S T OME R AC QU ISI T I ON & R ET E N T I ON (CA R)
Human Resources 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Communications 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions/Coupons 600 600 600 600 600 600 600 600 600 600 600 600 7,200.00
CA R T otal $(000) 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 10,800.00
OT H ER EX P EN SE S
Travel 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Infrastructure (computer, telephone, etc.) 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Channel Support 600 600 600 600 600 600 600 600 600 600 600 600 7,200.00
Other E xpenses T otal $(000) 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 10,800.00
T OT A L MA RK E T IN G B U DGET : 6,383.05 5,821.69 5,871.53 5,862.78 5,942.55 5,972.55 6,114.50 6,278.53 6,036.60 6,228.65 6,294.75 6,123.17 72,930.34
4.8 Risk Comparison
Risk Management
Financial risk Management should have a plan for
mitigating all the risks.
More competitors in the market Innovations should be incorporated

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
4.9 Integrated analysis and options ranking
Rate Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
AN T I CI P A T E D S AL E S T OT A L $[phone] 750 690 1,200 1,600 2,500 3,600 1,800 3,800 3,900 2,850 24,285
P ERSON N E L (% OF T OT AL SA L ES ) 110% 110% 110% 110% 110% 110% 110% 110% 85% 85% 85% 85%
Human Resources - Headcount 5 5 5 5 5 5 5 5 5 5 5 5 5
Human Resources - Cost 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 300.00
Commission 0.10% 0.90 0.70 0.75 0.69 1.20 1.60 2.50 3.60 1.80 3.80 3.90 2.85 24.29
P ersonnel T otal $(000) 25.90 25.70 25.75 25.69 26.20 26.60 27.50 28.60 26.80 28.80 28.90 27.85 324.29
DI R E CT MA RK E T I N G (% OF T OT A L S A LE S )100% 100% 75% 40% 33% 25% 20% 10% 5% 5% 5% 5%
Telemarketing (% of Direct Sales) 100% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
Human Resources - Headcount 3 3 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 19.50
Infrastructure Support 25 10 25 10 25 10 25 10 25 10 25 10 210.00
Commission 0.10% 0.90 0.35 0.28 0.14 0.20 0.20 0.25 0.18 0.05 0.10 0.10 0.07 2.80
Training 25 10 25 10 25 10 25 10 25 10 25 10 210.00
T elemarketing T otal $(000) 53.90 21.85 51.78 21.64 51.70 21.70 51.75 21.68 51.55 21.60 51.60 21.57 442.30
Internet Marketing (% of Direct Sales) 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
Human Resources - Headcount 1 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 3.00
Website Development (one-time cost) 500 500.00
Hosting 10 10 10 10 10 10 10 10 10 10 10 10 120.00
Support & Maintenance 25 25 50.00
I nternet Mark eting T otal $(000) 535.25 10.25 10.25 10.25 10.25 10.25 10.25 10.25 10.25 10.25 35.25 10.25 673.00
Direct Mail (% of Direct Sales)
Human Resources - Cost 0.00
Material 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12,000.00
Postage 250 250 250 250 250 250 250 250 250 250 250 250 3,000.00
Direc t Mail T otal $(000) 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 15,000.00
Direc t Mark eting T otal $(000) 1,839.15 1,282.10 1,312.03 1,281.89 1,311.95 1,281.95 1,312.00 1,281.93 1,311.80 1,281.85 1,336.85 1,281.82 16,115.30
AG E N T /BR OK E R (% OF T OT A L SA LE S ) 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Communication 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Training 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 7,200.00
Discounts 10.00% 9.00 6.95 7.50 6.90 12.00 16.00 25.00 36.00 18.00 38.00 39.00 28.50 242.85
Commission (% of Agent's Sales) 10.00% 9.00 6.95 7.50 6.90 12.00 16.00 25.00 36.00 18.00 38.00 39.00 28.50 242.85
Agent/B roker T otal $(000) 918.00 913.90 915.00 913.80 924.00 932.00 950.00 972.00 936.00 976.00 978.00 957.00 11,285.70
DI S T R I BU T OR S (% OF T OT AL S AL ES ) 0% 0% 0% 0% 0% 15% 20% 40% 40% 40% 40% 40%
Communication 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Training 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 7,200.00
Commission/Discounts (% of Distributors' Sales)15.00% 0 0 0 0 0 36 75 216 108 228 234 171 1,068.00
Distributor T otal $(000) 900.00 900.00 900.00 900.00 900.00 936.00 975.00 1,116.00 1,008.00 1,128.00 1,134.00 1,071.00 11,868.00
RE T A I L ER (% OF T OT A L S A LE S) 0% 0% 25% 60% 67% 60% 60% 50% 30% 30% 30% 30%
Communication 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Training 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 7,200.00
Commission/Discounts (% of Retail Sales) 10.00% 0 0 18.75 41.4 80.4 96 150 180 54 114 117 85.5 937.05
Retailer T otal $(000) 900.00 900.00 918.75 941.40 980.40 996.00 1,050.00 1,080.00 954.00 1,014.00 1,017.00 985.50 11,737.05
CU S T OME R AC QU ISI T I ON & R ET E N T I ON (CA R)
Human Resources 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Communications 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions/Coupons 600 600 600 600 600 600 600 600 600 600 600 600 7,200.00
CA R T otal $(000) 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 10,800.00
OT H ER EX P EN SE S
Travel 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Infrastructure (computer, telephone, etc.) 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Channel Support 600 600 600 600 600 600 600 600 600 600 600 600 7,200.00
Other E xpenses T otal $(000) 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 10,800.00
T OT A L MA RK E T IN G B U DGET : 6,383.05 5,821.69 5,871.53 5,862.78 5,942.55 5,972.55 6,114.50 6,278.53 6,036.60 6,228.65 6,294.75 6,123.17 72,930.34

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Part 5: Deliverability of recommended solution
5.1 Details of recommended solution
The innovation of Danfoss will bring remarkable changes in Australian business
sector that will simplify the challenges faced by the business organisation while establishing
the innovative ideas that could have been beneficial for the operations of the organisation.
5.2 Commercial and financial
 The management of Danfoss can personalize each of their customers experiences with
their organisation by incorporating customised aspects like providing 24 hours
Customer services
 The management can also utilise numerous marketing strategies to reach out to their
target customers by using many marketing platforms
5.3. Management
 The board of directors of the organisation should supervise the operations and district
guidance
 The customers of the company should be informed regarding the materialization of
the innovative ideas by the company
5.4 Delivery
 There will be strict performance measurement tools for individual departments of the
organisation
 To carry out any project the management of Danfoss should abide by all the set rules
and regulations by the Federal Government of Australia
 There should be an organised framework to develop all the projects undertaken by the
business organisation Danfoss

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Reference list
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Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to
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Candi, M., Melia, M., & Colurcio, M. (2018). Two Birds with One Stone: The Quest for
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Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Ketata, I., Sofka, W., & Grimpe, C. (2015). The role of internal capabilities and firms'
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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Appendix A
1 2 3 4 5
-$1
$0
$1 Cost Benefit Analysis: Option 1
Present Value of Benefits ($million)
Present Value of Costs ($million)
Cumulative Net Present Value ($million)
Year
Todays Dollars ($ millions)

15
INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Appendix B Rate Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
AN T I CI P A T ED SAL ES T OT A L $[phone] 750 690 1,200 1,600 2,500 3,600 1,800 3,800 3,900 2,850 24,285
P ERSONNEL (% OF T OT AL SA LES) 110% 110% 110% 110% 110% 110% 110% 110% 85% 85% 85% 85%
Human Resources - Headcount 5 5 5 5 5 5 5 5 5 5 5 5 5
Human Resources - Cost 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 300.00
Commission 0.10% 0.90 0.70 0.75 0.69 1.20 1.60 2.50 3.60 1.80 3.80 3.90 2.85 24.29
P ersonnel T otal $(000) 25.90 25.70 25.75 25.69 26.20 26.60 27.50 28.60 26.80 28.80 28.90 27.85 324.29
DI R ECT MAR K ET I NG (% OF T OT AL SA LES)100% 100% 75% 40% 33% 25% 20% 10% 5% 5% 5% 5%
Telemarketing (% of Direct Sales) 100% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
Human Resources - Headcount 3 3 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 19.50
Infrastructure Support 25 10 25 10 25 10 25 10 25 10 25 10 210.00
Commission 0.10% 0.90 0.35 0.28 0.14 0.20 0.20 0.25 0.18 0.05 0.10 0.10 0.07 2.80
Training 25 10 25 10 25 10 25 10 25 10 25 10 210.00
T elemarketing T otal $(000) 53.90 21.85 51.78 21.64 51.70 21.70 51.75 21.68 51.55 21.60 51.60 21.57 442.30
Internet Marketing (% of Direct Sales) 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
Human Resources - Headcount 1 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 3.00
Website Development (one-time cost) 500 500.00
Hosting 10 10 10 10 10 10 10 10 10 10 10 10 120.00
Support & Maintenance 25 25 50.00
I nternet Marketing T otal $(000) 535.25 10.25 10.25 10.25 10.25 10.25 10.25 10.25 10.25 10.25 35.25 10.25 673.00
Direct Mail (% of Direct Sales)
Human Resources - Cost 0.00
Material 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12,000.00
Postage 250 250 250 250 250 250 250 250 250 250 250 250 3,000.00
Direc t Mail T otal $(000) 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 15,000.00
Direc t Marketing T otal $(000) 1,839.15 1,282.10 1,312.03 1,281.89 1,311.95 1,281.95 1,312.00 1,281.93 1,311.80 1,281.85 1,336.85 1,281.82 16,115.30
AGENT /BR OK ER (% OF T OT A L SA LES) 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Communication 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Training 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 7,200.00
Discounts 10.00% 9.00 6.95 7.50 6.90 12.00 16.00 25.00 36.00 18.00 38.00 39.00 28.50 242.85
Commission (% of Agent's Sales) 10.00% 9.00 6.95 7.50 6.90 12.00 16.00 25.00 36.00 18.00 38.00 39.00 28.50 242.85
Agent/Broker T otal $(000) 918.00 913.90 915.00 913.80 924.00 932.00 950.00 972.00 936.00 976.00 978.00 957.00 11,285.70
DI ST R I BU T OR S (% OF T OT AL SAL ES) 0% 0% 0% 0% 0% 15% 20% 40% 40% 40% 40% 40%
Communication 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Training 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 7,200.00
Commission/Discounts (% of Distributors' Sales)15.00% 0 0 0 0 0 36 75 216 108 228 234 171 1,068.00
Distributor T otal $(000) 900.00 900.00 900.00 900.00 900.00 936.00 975.00 1,116.00 1,008.00 1,128.00 1,134.00 1,071.00 11,868.00
RET A I LER (% OF T OT A L SA LES) 0% 0% 25% 60% 67% 60% 60% 50% 30% 30% 30% 30%
Communication 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Training 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 600.00 7,200.00
Commission/Discounts (% of Retail Sales) 10.00% 0 0 18.75 41.4 80.4 96 150 180 54 114 117 85.5 937.05
Retailer T otal $(000) 900.00 900.00 918.75 941.40 980.40 996.00 1,050.00 1,080.00 954.00 1,014.00 1,017.00 985.50 11,737.05
CU ST OMER ACQU ISI T I ON & R ET ENT I ON (CA R )
Human Resources 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Communications 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Promotions/Coupons 600 600 600 600 600 600 600 600 600 600 600 600 7,200.00
CA R T otal $(000) 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 10,800.00
OT HER EX P ENSES
Travel 50 50 50 50 50 50 50 50 50 50 50 50 600.00
Infrastructure (computer, telephone, etc.) 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3,000.00
Channel Support 600 600 600 600 600 600 600 600 600 600 600 600 7,200.00
Other Expenses T otal $(000) 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 10,800.00
T OT A L MA RK ET I NG B U DGET : 6,383.05 5,821.69 5,871.53 5,862.78 5,942.55 5,972.55 6,114.50 6,278.53 6,036.60 6,228.65 6,294.75 6,123.17 72,930.34

16
INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Appendix C
Investment title:
Agency:
Y/N
Is the need clearly established (e.g. investment concept brief)?
Are the links to government policy(ies) and contributions explicit?
Is there a clear statement of the service benefits and project scope
and are future implications noted?
Are cost estimates provided for capital and operational phases?
Have cost and risk estimators signed off on the adequacy of their
work?
Is the project budget including the base cost estimate, risk
assessment, base risk allocation and contingency adequate?
Do cost and benefit estimates and analyses show value for money?
Are the project deliverables clearly stated?
Is a benefit management or evaluation plan included?
Are risk management processes in place and assumptions stated?
Does the proposal assess the project schedule and readiness
(including market appetite)?
Are governance structures identified?
Are stakeholder interfaces detailed?
Are regulatory requirements identified?
Is the project High Value/High Risk?
Have Gateway reviews been undertaken? Gate 1
Gate 2
This model checklist is designed for the project proponent’s endorsement.
Prepared by: ……………………………………………..…… Date:
…………………
Approved by: ……………………………………………..…… Date:
…………………
……………………………………………...
…………………………………………………….
(Name of approving officer or delegate) (Title)
Secretary: ……………………………………………..…… Date: …………………

17
INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Team Charter
Date Task What is Due? Compl
eted?
09/5 Planning stage Team Charter Activities
11/5 Division of work In teams read and review each
submitted idea and business
model
11/5 Best idea from the assignment Select the best idea
14/5 Business model generation Individual tasks divided
15/4 Design your business concept and
business model
Individually think of a business
concept and business model
design and meet for
brainstorming
21/5 Discuss, select and generate the
most suitable business concept
and business model for your
innovation
Type of business innovation
model
22/5 Feasibility of the plan question each assumption in
business model innovation
23/5 Final Draft Prepare the final Draft for part 1
and 2
24/5 Deadline meeting Completed Assignment is due
25/5
Contingency Period
Review and check every step in
the process
26/5 Official Deadline Submission of Assignment