Entrepreneurship and Business Development: A Case Study of LiquiAgent Ltd.

This report discusses the new business concept of LiquiAgent Ltd. that deals in cleaning products and its feasibility analysis. It includes industry and market feasibility, organizational and financial feasibility, and key components of the value chain. The report also explains the risks involved in launching a new product and measures to manage them.

Entrepreneurship and
Business Development

TABLE OF CONTENT
NTRODUCTION.............................................................................................................................4
1. Explaining new business concept with key components.........................................................4
2. Assessing Industry, market, Organizational & Financial feasibility.......................................6
3. Key components of value chain in relation to LiquiAgent (LA) Ltd-...................................11
Business model canvas-.............................................................................................................12
4. Quantitative and Qualitative Model and Concept-................................................................13
Identification of potential risks and steps to manage those risks...............................................15
CONCLUSION- ...........................................................................................................................17
REFERENCES..............................................................................................................................18

NTRODUCTION
Entrepreneurship is defined as a concept of setting up a new business organization which
provides new product or modification of existing products to its final consumers with an aim of
earning good profits. The present case scenario is based on new business concept generated by a
new company LiquiAgent Ltd. which will operate in Wales, UK and will provide cleaning
products to its customers. The report will outline product offered, its special characteristics,
target market, scale of operations, etc. It will further conduct industry analysis using Porter's five
forces and market feasibility test by means of PESTLE analysis. This report will also check
financial feasibility with the help of projected Cash flow statements. In addition to this, report
will also explain value chain and business model canvas for the proposed business. Furthermore,
report will prepare quantitative and qualitative models and in last, will explain the risks involved
in launching a new product with measures to manage it.
1. Explaining new business concept with key components
A new business concept is developed after brainstorming analysis of market potential of
providing cleaning agents product to the target customers. The name of the proposed company
will be LiquiAgent Ltd. that will deal in all cleaning products like hand wash, dish wash, multi-
purpose cleaners, laundry wash, fabric softeners, etc. Company's production and operation will
take place in Wales, United Kingdom. Company aims to provide cleaning products to each and
every household to remove and clean all dirt and dust from houses.
Products offered:
There will be variety of products that will be offered by LiquiAgent which are as follows:
 Bleaching powder
 Dish wash bars in small & medium size
 Hand wash / Sanitizers with pump and belt clip in lemon and eucalyptus fragrance
 Dish wash liquid and bars in lime and herbal mint smell
 Laundry washing powder, liquid & bars in camomile and sandalwood smell
 Phenyl liquid & cleaner in bottles
 Fabric cleaner and softener in lily fragrance
 Room fresheners with different fragrances of lavender and rose

 Toilet cleaner
 Disinfectants
 Multi-purpose cleaner
 Sponges & cleaning cloths
Target Market:
Maintaining cleanliness at home and office is now a key part of a person's normal life. In
today's time, a person is more aware about hygiene and cleanliness to stay away from medical
problems. Usually, households spend one hour on average basis on weekends to clean their
house including bathrooms. This lead to increase in demand for such products in Wales and
provides an opportunity to company to explore market and tap potential customers who will buy
their products. The target market for LiquiAgent will be middle-class households, rich class,
hotels and restaurants and business offices.
Special Attributes:
 All the products of company comes in a concentrated form and are easily biodegradable.
 Cleaning products are packed in recycled and reusable bottles and containers.
 All products are not based on petrochemical compounds.
 Causes little or no irritation to eyes, skin or respiratory system.
 They are not destructive or highly flammable.
 Product comes with a pH level of 2.5 and 11.
 Works perfectly when mixed with normal water.
 Products not only removes dirt but also kills harmful germs that causes serious illness.
 Toilet cleaner comes with unique fragrances that leaves no odour.
 Products are packed in different size of 100ml, 500ml, 1L & 5L bottles and cans for
convenience and affordability.
Values: Product value basically means how a product or service is viewed or perceived by
ultimate consumers (Alvarez and Barney, 2020). The values associated with LiquiAgent with a
complete new product line of cleaning agents is its convenience to use, excellent cleaning
attribute that leaves no stain, easily available at different locations due to huge demand, a

sustainable product that harms no individual when used with care, comes in easy packaging at
cheaper and affordable prices.
The pricing policy followed by company will be price penetration policy. The focus of
LiquiAgent will be to cover the target market with low price products and no comprise on
quality. It will help in attracting the customers and to survive in competitive market which
further aids in creating demand and building a customer base & brand loyalty.
Scale of Operation:
The business will be operating on a small scale and gradually increasing the production
level. Company operating on a small scale has a close connection and links with workers,
employees and management which can be easily supervised. It is also beneficial because firm
will get to know market demand of their products and production can be increased if demand
increases (Ocheni and Gemade, 2015). Otherwise, working on large scale can sometimes lead to
wastage of resources and time.
Location:
A location of business is affected by different factors like accessibility of basic raw
materials and other resources at low price, workforce availability and most importantly easily
available to consumers. The location of LiquiAgent will be in Wales, UK where company will
have a small production unit for carrying out production activities. Organization will also have a
stores in super markets through which products will be offered to customers. Company also
plans in future to set up a website and provide LiquiAgent products online and make delivery.
2. Assessing Industry, market, Organizational & Financial feasibility
Industry Feasibility:
Industry feasibility of company is assessed by Porter's Five Forces Analysis which is as follows: Supplier Power: The basic raw materials required by company are acids, bleaches,
alkalies, lime powder, methanol, etc. The supplier here, has a huge bargaining power
because it is providing the key components of production process. Buyer Power: Cleaning agents are products that are used by every household. The
customer base is large which means company can charge high prices for it products.

 New Entrants threat: Now-a-days, with new techniques of production, cleaning agents
can be easily produced. It takes lesser time and cost to enter a market and give
competition. Easy entrance of new company in industry weakens the existing company's
position and increases competition. Substitute threats: There are many companies in UK that are selling cleaning products
and consumers have a large variety to choose from. Consumer's can easily switch to other
substitute with low price (Porter's Five Forces, 2021).
 Competition in industry: Company faces a tough competition in industry because there
are many competitors offering similar products to consumers. LiquiAgent need to
produce their product with unique characteristics to have an advantage over other rival
firms.
Market feasibility:
To analyse the market scenario, PESTLE analysis is performed:
Political Factors There is political stability in UK and maintains good relations
with other countries which aids company to operate easily in
market.
Economic Factors Economic condition are stable enough like consistent economic
growth, increment in disposal income of people, nominal interest
rates, etc. which benefits a company to smoothly perform business
activities.
Social Factors Consumer market of UK is big enough to provide lot of
opportunities to organization to come up with new business ideas
and products. People are educated enough to care about hygiene
and cleanliness, so such products are becoming daily needs.
Technological Factors UK, a developed economy uses the advanced technologies for
production processes and invest heavily in research &
development which proves to be beneficial for entrepreneurs.
Legal Factors Various laws and regulations like Employment Act, minimum

wages, maternity leaves, etc. provides healthy legal environment
to work in and protects the rights.
Environmental Factors United Kingdom have taken many imitative to protect and create
environmental awareness which the company need to follow like
corporate social responsibility, restrictions on waste disposal, etc.
(What is a PESTEL Analysis, 2021).
Organizational Feasibility
This feasibility analyses whether proposed company have all the requirements to conduct
its business efficiently (Joseph and Gaba, 2020). The major components will be management
experts, resources to launch business, workers in production units, etc. LiquiAgent requires a
team of quality workforce which will be involved in production process, degree holder
management experts with experience of one or two years who will be handling the strategy
formulation, pricing policies, marketing and promotional practices, etc. Company will follow a
simple organization structure with low departmentalization and centralized authority because it is
operating at a small scale and do not have huge funds. It will not have many hierarchical levels
as production team will report to manager and manager directly to top management experts.
Financial Feasibility
The most important feasibility analysis is of financial feasibility which determines
whether the company has enough cash to start a new business and perform its operation

efficiently. It identifies whether product will be profitable in future or not by calculating cash
flows and analysing return on investment. To conduct a financial feasibility, projected cash flow
statement is prepared quarter wise which is as follows:
PROJECTED CASH
FLOW STATEMENT
PARTICULARS QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4
Opening balance 7000 12500 18132.5 23900.2875
Cash In
Sales 11000 11220 11444.4 11673.29
Other income 2000 2020 2040.2 2060.60
TOTAL 13000 13240 13484.6 13733.89
Cash out
Raw materials 3000 3060 3121.2 3183.62
Labour cost 2500 2537.5 2575.56 2614.20
Selling expenses 2000 2010 2020.05 2030.15
TOTAL 7500 7607.5 7716.81 7827.97
Cash Flow 5500 5632.5 5767.79 5905.92
Closing balance 12500 18132.5 23900.29 29806.21

3. Key components of value chain in relation to LiquiAgent (LA) Ltd-
A value chain in the business model describes a full range of activities that are needed in
creation of a product or service. This involves the various steps from bringing a product from
origin to distribution. In Value chain analysis, the different business activities are divided into 2
main categories- “Primary and Support” (Aldrich, 2017).
Primary Activities- It consists of those activities which directly involve in creation or execution
of products or services. They are divided into the following categories- Inbound Logistics – It includes developing strong relationships with the suppliers of raw
materials as it is necessary for receiving and storing the products. It is manufacturing the
products like dish wash cleaner, toilet cleaner, bathroom freshener etc. and raw materials
needed to produce such as chemicals are purchased from Johnson Matthey which is a
multinational chemical company in UK. Operations – Once the raw materials are arrived, LA is ready to process the raw material
into end products. This involves machining, packaging, assembling and testing. This
process include both manufacturing and service operations. Analysis of the operational
activities is quite important to increase productivity and efficiency of LA. Outbound logistics- It includes activities that consists of delivering the products to
customers by passing through various intermediaries. Eg of outbound logistics of LA are
material handling, warehousing, order processing, transporting and delivering the
products to the desired destination. If outbound activities are managed timely with
optimum costs, put less negative impact on the quality. Therefore, LiquiAgent should pay
attention to the outbound activities. Marketing and sales- LiquiAgent's marketing and sales includes activities such as
advertising, quoting and building relationships with the channel members. The company
uses marketing funnel approach to define its marketing and sales activities. Effective
integrated marketing activities can develop the brand image of LA. Services- The pre and post sale services offered by LA play an important role in
development of customer loyalty. According to the modern customers of LA, post sale
services are as much important as pre sale services such as marketing and promotional
services.

Support Activities- It consists of those activities that help primary activities to become more
efficient and help in creation of competitive advantage. They are classified into various
categories as follows- Infrastructure- It consists of activities such as quality management, accounting and
finance and strategic management. Proper infrastructure management allow LA to
optimize the value chain. LA can control the overhead costs to strengthen the competitive
position in the market. Human resource management- LA can understand human resource management by
analysing various HR aspects including- recruitment, selection, training, performance
management and other related activities. The effective HR management allow LA to
reduce competitive pressure and achieve cost minimization goal by comparing the hiring
and training costs with their returns. Technology development- The product and process technological development activities
of LiquiAgent include automation software, product design, research and analytics and
technology- supported customer service.
 Procurement- It denotes the processes involved in purchasing the inputs which include
equipment and machinery, raw material supplies and other items necessary to produce the
finished product. As there is a good linkage between multiple value chain activities, LA
should consider its procurement activities to optimize the inbound, operations and
outbound value chain.
Business model canvas-
Key Partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
 House
keepin
g
servic
e
compa
nies
 Materi
 Manufacturing
toilet cleaners,
dish washers, etc.
 Providing maid
cleaning services
such as mopping
and vaccuuming
the house.
 Advertising
 Providing a
sample with
every
product
sold.
 Providing
the variety
 Door to
door
selling by
sales
agents
 Taking
regular
feedback
 Hotel
s
 Hospi
tals
 Other
users
such
as

al
suppli
ers
of products
at lowest
price and in
the most
convinient
way.
from the
customers
through
mobile
app of
LA.
home
owne
rs etc.
Key Resources Channels
 Employees
 Production
management
 Mobile
apps
 Digital
marketing
 Retail
outlets
Cost Structure
 Salaries
 Commission to sales agents
 Marketing and development
 Customer service
Revenue Streams
 Customers
4. Quantitative and Qualitative Model and Concept-
The projected cash flow statement shows the cash inflows and outflows of different
quarters. The net cash flow at the end of quarter 1 is 5500 which increased to 5906 at the end of
last quarter. Therefore, there is 7.38% increase in net cash flow. It depicted that the cash inflows
are increasing which shows that LiquiAgent is managing its cash flows in an efficient manner
but the cash outflows are also increasing from 7500 in quarter 1 to 7716.81 in quarter 2. In order
to reduce costs to increase profitability, LA can try to reduce the costs of raw materials, labour
and selling expenses. The company should work on increasing sales by adopting various
marketing strategies. The other does not increase to a great extent as there is only 3% increase at
the end of 4 quarter.
STP- It is a 3 step model that examines the companies' products and services and communicating
their pros to some specific customer segments.

Segmentation Segmentation is the process of dividing the
customers on their various needs and wants.
LA has segmented its customers based on
geographic, demographic and psycho graphic
(Dolnicar, Grün and Leisch, 2018).
 Geographic – As LA caters to both
rural and urban areas, its reach is
excellent.
 Demographic – LA also lays emphasis
on people who could not afford
products at higher prices.
 Psycho graphic- Consumers can relate
to a brand and also have easy access to
rural markets.
Targeting In targeting, the potential customers are
identified who will purchase the company's
products or services. LA targets the markets
where customers of all the economic levels can
purchase. The rural markets, women and
housewives are specially targeted.
Positioning Positioning in the market means where the
company stands in the current market and how
the company's products are unique as
compared to others. LiquiAgent has positioned
itself as an affordable product and has quick
access, its distinct features makes LA products'
customer friendly.
Marketing Mix of LA- It refers to a marketing strategies that an organization uses to promote its
respective brand, product or services in the market (Thabit and Raewf, 2018).

Basis Description
Product Low cost and premium quality products are
offered. Super washing powder, dishwashers
etc. are produced targeting the demand. The
products of LA are bleaching powder, toilet
cleaner, multi sponge cleaner etc. and it is also
proving maid cleaning services to attract the
customers.
Place The products of LA are distributed through
physical stores. In order to cut down the cost,
the company directly supply the products to
distributors for eliminating intermediaries.
Price Mass consumer marketing is targeted that is
related to the economy segment as their target
customers. LA adopted penetration pricing
strategy and kept the prices reasonable.
Promotion The products are promoted through television
channels, leaflets, magazines, billboards, wall
paintings etc. The brand is promoted by
celebrity endorsement. Various ad campaigns
are created on television. Moreover, the
company will also use mobile apps to promote
the products.
Identification of potential risks and steps to manage those risks
Risk Register-
Risk Description Likelihood
of risk
Impact if risk Owner Mitigating

occurring occurs action
Exposure to dust during
the manufacturing
(mixing, packaging or
drying) of detergents.
Medium High Consumers By making
the
customers
aware about
the threats
and
mentioning
the hazards
at the back
of the
product
packages.
Hazardous chemical
substances such as
Sodium Laureth Sulphate,
dioxane etc.
High High Workers or
employees
Providing
workers
with the
protective
equipments
such as
respiratory
masks,
gloves,
goggles,
coveralls
etc.
Workers going on strike
due to some common
problem.
Medium High Company owners By defining
the labour
laws, their
roles and
responsibilit

ies clearly.
Several washing powder,
toilet cleaners etc. have
negative environmental
effects as the nitrogen in
these detergents stimulate
the growth of algae,
ruining ecosystem
High Medium Organisms in water By
producing
various
environment
friendly
products
which will
not harm the
aquatic
organisms.
CONCLUSION-
Entrepreneurship and business development refers to enhancing knowledge and skill of the
entrepreneurs. The above report included a new business concept that is a new company is
launched which deals with cleaning products and accessories. The various products offered are
laundry wash, fabric softeners, dish wash etc. The target market of LA is middle class houses,
hotels and offices. LA is operating on a small scale and the company strong competition as
various competitors are there in such industry. LA has positioned itself as an affordable products
and provide premium quality products at low costs. The various management experts, quality
workforce is employed to conduct the business efficiently. At last the report also highlighted the
risks related to the business such as risks of hazardous chemicals and they can be reduced by
providing the safety equipments to customers.

REFERENCES
Books and Journals
Aldrich, H., 2017. Learning together: National differences in entrepreneurship research. The
Blackwell handbook of entrepreneurship. pp.5-25.
Alvarez, S. and Barney, J. B., 2020. Has the concept of opportunities been fruitful in the field of
entrepreneurship?. Academy of Management Perspectives. 34(3). pp.300-310.
Dolnicar, S., Grün, B. and Leisch, F., 2018. Market segmentation analysis: Understanding it,
doing it, and making it useful .(p. 324). Springer Nature.
Joseph, J. and Gaba, V., 2020. Organizational structure, information processing, and decision-
making: a retrospective and road map for research. Academy of Management Annals.
14(1). pp.267-302.
Ocheni, S. I. and Gemade, T. I., 2015. Effects of multiple taxation on the performance of small
and medium scale business enterprises in Benue State. International Journal of
Academic Research in Business and Social Sciences. 5(3). p.345.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies.4(4).
Online
Porter's Five Forces. 2021. [Online]. Available through:
<https://www.mindtools.com/pages/article/newTMC_08.htm>
What is a PESTEL Analysis? 2021. [Online]. Available through:
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/pestel-analysis/>