Managing Entrepreneurship, Innovation & Creativity

This document discusses the concepts of managing entrepreneurship, innovation, and creativity. It covers topics such as market research, target market, marketing strategies, legal issues, and more. The document also includes a case study on introducing a cab services application called 'Cab Way'.

Managing
Entrepreneurship,
Innovation & Creativity

Table of Contents
TASK 1............................................................................................................................................1
My story.......................................................................................................................................1
TASK 2............................................................................................................................................1
Theme – Organisations / Products...............................................................................................1
TASK 3............................................................................................................................................3
1. Introduction..............................................................................................................................3
2. Objectives................................................................................................................................3
3. Market research........................................................................................................................4
4. Target market / customer.........................................................................................................4
5. Marketing.................................................................................................................................4
6. Human resource.......................................................................................................................5
7. Operations – Business Canvas Model......................................................................................5
8. Legal issues..............................................................................................................................6
9. Financial...................................................................................................................................7
10. Risks, contingency and exit strategies...................................................................................8
11. Other issues............................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

TASK 1
My story
Managing entrepreneurship, innovation and creativity can be defined as the process of
developing a new business idea and maintaining it for long run in future. While introducing a
new business concept in the market it is very important for the individuals to make sure that they
focus upon the trends available in the market (Anderson, Potočnik and Zhou, 2014). I am a taxi
driver and currently working myself and I have a dream to own a cab company in future. I am a
disciplined person who want that all the things should be completed on time so that possibility of
error could be ignored. I have good customer service skills which will be beneficial for me in
future to strengthen the client base when I will be able to establish my business successfully. I do
not have an entrepreneurship background because my father does not own a business. It shows
that I am not having a past related entrepreneurship. I am coming from a simple background
where father used to work for a company and my mother is a housewife. While completing this
module I will be bringing different skills and attributes such as entrepreneurial qualities, creative
thinking, IT skills, decision making, competitiveness etc. In this module I will be working on the
theme of organisation / products for which I have planned to introduce an application “Cab
Way” in London which will offer cab services to the individuals and will be linked to google.
While booking cabs from the app the customers can select 2 of their contacts to whom they can
share actual status of their trip. It will be the most important step which will be followed by all
the customers while booking cab.
TASK 2
Theme – Organisations / Products
Entrepreneurship can be defined as the process of formulating an innovative business
idea which can help individuals to generate profit in future by establishing a successful business.
Nowadays most of the entrepreneurs are focusing on the concept of changing social environment
by introducing such products that are made specifically for social issues (Entrepreneurship,
2020).
Innovation is the process of turning converting an innovative concept in the solution of
different problems so that value could be added to the customer's perspective. While planning to
1

introduce a new service or good in the market entrepreneurs try to formulate a unique concept so
that a new start up could be established successfully (Innovation, 2020).
Creativity can be defined as the idea of a unique product or service which has not yet
been used by individuals. It is a quality of human mind which can help them to analyse all the
things critically (Creativity, 2020).
Google was launched in year 1999 and after that life of people had been changed by it
because it provided them different types of services which led the world towards development.
There are various types of facilities which are offered by it to the individuals. These are map,
drive, photos, scholar, online payment system, assistant etc. It is changing the way in which
individuals are living their life as it has benefited them to spend less time to locate a place. After
1999 the way of working of individuals has also been changed because with the help of it they
can find easy ways to perform critical jobs and the way in which they perform all their tasks
systematically. There are various products and services which are launched after 1999. One of
them is Google pay which is one of the finest applications in the world which has enhanced the
standard of living of individuals because with the help of it they can make easy payments. It can
also be connected with watches (Ateljevic and Page, 2017). And this facility is currently
available in Australia, France, Spain, Switzerland, United Kingdom, Poland, Italy etc.
Effective product launch is main driver of the top performance and often sign;e costliest
stage ion the new product development. Before 1999, there was not any search engine and it is
complex to connect with the people to companies and the other people with each other. Post
1999, firms and products are changing their way to work and also do things. The change in the
technology impact on organisational productivity and reputation. Google changes the way of
people and the organisation. This is advertising powerhouse and developing product series that
run the live of people such as Android, Maps, Google Maps etc. These all things change the
working ways of people. After 1999, organisations give the information on google regarding its
products and services so that customers can easily search it and satisfying their requirements.
Through using the social media, firms can connect with the consumers and communicate with
them, determine their demands and fulfil their requirements in an effective manner. The
organisations create website and mention information about the company, products,
specifications, services and many other things (Bilton and Cummings, 2014). In order to aware
the customers about the new products or services, firms use the multi channel advertising to
2

assure that people target the products and company can get the more opportunities. The
customers require the many exposures to advertising message before they take any action. Use
social media accounts on the various platforms, contact the media outlets and also set up mail
lists to attain the reach of message.
On the other hand, customers can search any information regarding their personal things
and about products easily within less time period. Other than this, there are many payment
modes developed such as debit cards, credit cards, E wallets etc. so that customers can payment
easily without carrying money. The online payment modes are easy to pay and also without fear
of theft. There are many different applications which assist the customers about providing
information, purchasing and selling things and some other things. These all are helpful in make
the life of customers easy or simpler (Bilton, 2014). Regarding travelling, customers can find the
different travel places and check the experience of other people regarding the specific
destination. Other than this, customers can book their tickets without going to railway stations
and airports. They can use the online applications and make bookings over internet. In context to
this, it is easy to search about any hotels on various applications like Expedia, Hotels.com. Etc.
and compare the prices and also book so that customers can not face any issue regarding staying
anywhere and at any time.
TASK 3
1. Introduction
A new idea of introducing an application “Cab Way” in the market which could be used
by individuals to book cabs to reach a specific destination. It will be highly secured app because
it will be very important for the customers to share their status of ride with 2 of their contacts. It
will help them to ignore possibility of the issues which could be faced by them while taking a
ride. Now a days cab businesses are having opportunities for growth because demand of such
services is increasing continuously. Main reason for selecting this sector is the current experience
as I am currently a driver who wanted to establish own business in future (Chen, Chang and Lo,
2015).
2. Objectives
There are several objectives of introducing a new cab services application for offering
cabs to the customers. All of them are as follows:
3

 To fulfil demand of individuals regarding fully safe and secured cabs which could be
used by them to travel at late nights also without any hesitation.
 To attain growth and achieve the dream of becoming an entrepreneur by establishing own
cab business.
 Establish the business successfully so that higher profits could be generated by meeting
the market demand of cabs.
3. Market research
Primary research: It can be defined as the research which is conducted for the first time
by an individuals with the help of interviews, observation and other methods. With the help of it,
detailed information regarding present mind sets of customers and market trends. While
formulating the idea of Cab Way it is also used by the founder. Personal interview was
conducted in order to analyse the concerns of individuals regarding present can services and the
modifications they want in them (Chen and et.al., 2015).
Secondary research (Competitors): It is also known as desk research which is used by
individuals to study existing information or already collected data. In order to analyse existing
cab service related application it is used by founder of Cab Way so that estimation of
competition could be performed. It has helped to analyse that there are various organisations
which are operating business in same sector. These are Addison lee, Hailo, Chauffeur Hire, Uber
and Get Taxi. Information regarding them is collected through secondary research which is used
by researcher to differentiate the business concept from them.
4. Target market / customer
While introducing a business in the market it is very important for the owners to make
sure that they select targeted customers properly so that success could be acquired in future.
Target market of Cab Way is men and women of middle and upper class between the age of 18
to 60. There will be different types of cabs which will be offered to them. These are micro, mini,
small, prime etc. They can select any one of them according to their choices and requirements
(Piperopoulos, 2016).
5. Marketing
Marketing can be defined as the process of performing such activities which can help to
establish a positive image of business in mind of customers. With the help of it, Cab Way will be
4

able to aware the target market about all its services that will be offered to them. In order to
market the cab facilities the owner have decided to use social media marketing. For this purpose,
the founder have decided to be active on different websites such as Facebook, Instagram, Twitter
etc. It will be beneficial for the business to attract large number of customers and establish
business successfully (Dawson and Andriopoulos, 2014).
6. Human resource
For all the businesses it is very important to have skilled workforce so that long term
goals such as attaining growth, higher profits etc. could be accomplished successfully. Cab Way
will also require staff members to execute its planned operations. In order to carry out all the
operational activities such as delivering cab services, receiving client's request etc. the
organisation will recruit new employees. For this purpose, advertisement in newspapers will be
given. Apart from this, applications on job portals such as indeed.com will also be allocated.
7. Operations – Business Canvas Model
While planning to execute a business it is very important for all the entrepreneurs to
analyse the operations which will be performed by them in future. For this purpose business
canvas model is used (Dereli, 2015). It is also formed by Cab Way which is as follows:
Key partners
 Drivers
 Payment
processors
such as
Paypal,
banks
 Investors
 Technolog
y partners
such as
SpotnRide
s
Key activities
 Platform
maintenance
 Hiring
drivers
 Customer
support
 Driver
payments
 Balancing
supply and
demand
Value
proposition
 High
security
 Early
arrival
 Easy
bookings
 Simple
procedure
 Easy
cancellati
on if
drivers
Customer
relationship
 Committed
drivers
 High level
of security
 Different
payments
methods
like cash,
online or
processors
Customer
segments
Customers
 Demo
graphi
c
 Micro
geogra
phic
 socio
econo
mic
Drivers
 Behav
Key resources
 Human
Channels
 Word of
5

capital
 Monetary
resources
 Cabs
are late or
not
respondin
g to calls
of
customers
mouth
 Social
media
 Local
campaigns
ioural
 Demo
graphi
c
 Situati
onal
Cost structure
 Technology development
 Legal and settlement
 Cabs
 Salaries to staff
Revenue stream
 Transaction fees
 Receipts from online booking
8. Legal issues
While operating a business organisation may have to face different types of legal issues.
It is very important for the management to make sure that they formulate strategies for them in
advance so that possibility of negative implication of them could be ignored. There are several
legal issues which could be faced by Cab Way while establishing the business in London, United
Kingdom. Description of all of them is as follows:
Licensing: It is one of the major issue which could be faced by Cab Way while
introducing itself in the market. As it is a new company therefore it is very important for it to
make sure that I takes license from governmental parties to operate business properly. It will be
beneficial for it to execute business properly. There will be various issues which will be faced by
the entrepreneur while applying for license because various documents will be required for it. In
order to ignore them the owner will have keep all of them (Edwards-Schachter and et.al., 2015).
Structure: There are various types of legal structures which are sole proprietorship,
limited company and partnership. While selecting one of them it is very important for the
entrepreneur to analyse advantages and disadvantages of them. Cab Way is a sole trader business
in which the owner will face all the risks and in this situation there could be various legal issues
that may affect launching of the business.
Intellectual capital: This issue is related to the uniqueness of the business concept. If an
entrepreneur think that the idea is innovative then it is very important to copyright it so that
6

possibility of fraud in future could be reduced. It may create legal issues for the organisation
because when the owner will apply for intellectual rights then legal authorities may ask for
different documents which are required to declare the property unique. If the owner is not able to
provide all of them then it may result negatively and affect the business (Jones, Lorenzen and
Sapsed, 2015).
Taxation: It is also a legal issue which could be faced by Cab Way while introducing its
business in London, United Kingdom because there are various types of taxes which will be
required to be paid by it. If the owner will get failed in paying the right amount of tax then it may
result in negative image of business in the market. Additionally, it may also increase possibility
of governmental interferences in operations.
9. Financial
While operating a business it is very important for the owners to make sure that they are
having detailed information regarding financials. For this purpose, management should analyse
fixed, variable and other costs. It is also very important for the owner of a business to make sure
that they are having detailed information regarding BEP so that strategies could be formulated by
keeping that in mind. It is also vital for owner of Cab Way to determine all the costs and
formulate a budget for upcoming two years (Kuratko, 2016). All these elements are as follows:
Cost sheet:
Costs Amount
Variable cost
Direct labour 48000
Cost of buying cabs 5000000
Utility cost 150000
Fixed costs
Rent of office 80000
Salaries to skilled staff 250000
Taxation 25000
Total cost 5553000
7

The owner have determined that in first year Cab Way will be able to generate revenues
of 6000000. The calculation of BEP for the enterprise is as follows:
BEP = Fixed cost / PV ratio
= 355000 / 13.37%
= 2655198 (BEP sales)
PV ratio = Contribution / sales * 100
= 802000 / 6000000 * 100
= 13.37%
Contribution = Sales – Variable cost
= 6000000 – 5198000
= 802000
Budget for first two years:
Particulars Year 1 Year 2 Year 3
Opening balance - 447000 4416000
Receipts
Revenues 6000000 6500000 3000000
Total A 6000000 6947000 7416000
Payments
Direct labour 48000 56000 78000
Cost of buying cabs 5000000 2000000 3000000
Utility cost 150000 120000 145000
Rent of office 80000 80000 80000
Salaries to skilled staff 250000 250000 250000
Taxation 25000 25000 25000
Total B 5553000 2531000 3578000
Closing balance (Total A - B) 447000 4416000 3838000
8

10. Risks, contingency and exit strategies
While operating a business it is very important for the management to make sure that
they are analysing all the risks, contingencies and exit strategies for business. All of them could
be analysed from below discussion in context of Cab Way:
Risks: As Cab Way is a new business and there are various successful organisations
which are operating business in same sector therefore there is a risk for the company related to
competition. If it will not be able to attract large number of customers then it may get failed in
establishment of business (Mitra, 2019).
Contingencies: There are several contingencies which could be faced by Cab Way
because it is a new business and it may face the problem of lack of funding from investors. In
order to resolve it, it is essential for it to introduce its uniqueness to the investors.
Exit strategies: When businesses are not able to establish themselves properly then they
can exit from the market to ignore further losses (Perry-Smith and Mannucci, 2015). Some of
the strategies which could be used by Cab Way in such situations are selling business in open
market, liquidation, sell to another company etc.
11. Other issues
There are several other issues which could be faced by Cab Way are as follows:
 Inappropriate financial management is one of the main problem which could be faced by
Cab Way in future because of lack of knowledgeable staff members.
 High level of competition could also be faced by the organisation because the existing
leaders in cab industry are becoming friendly with technology and they can negatively
impact upon the business (Sarooghi, Libaers and Burkemper, 2015).
CONCLUSION
From the above project report it has been concluded that entrepreneurship, innovation
and creativity are interlinked with each other. If an individual is planning to introduce a new
business in the market all of them should be focused. The key elements of a new business are
required to be taken in to consideration by an individual who is planning to establish a new
venture. These are objectives, competitors, targeted customers, marketing, human resource etc.
9

REFERENCES
Books and Journals:
Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal
of management. 40(5). pp.1297-1333.
Ateljevic, J. and Page, S. J. Eds., 2017. Tourism and entrepreneurship. Routledge.
Bilton, C. and Cummings, S., 2014. Handbook of management and creativity. Edward Elgar
Publishing.
Bilton, C., 2014. Manageable creativity. In Creativity and cultural policy. (pp. 31-46).
Routledge.
Chen, M. H., Chang, Y. Y. and Lo, Y. H., 2015. Creativity cognitive style, conflict, and career
success for creative entrepreneurs. Journal of Business Research. 68(4). pp.906-910.
Chen, S. C. and et.al., 2015. Can the entrepreneurship course improve the entrepreneurial
intentions of students?. International Entrepreneurship and Management Journal.
11(3). pp.557-569.
Dawson, P. and Andriopoulos, C., 2014. Managing change, creativity and innovation. Sage.
Dereli, D. D., 2015. Innovation management in global competition and competitive advantage.
Procedia-Social and behavioral sciences. 195. pp.1365-1370.
Edwards-Schachter, M. and et.al., 2015. Disentangling competences: Interrelationships on
creativity, innovation and entrepreneurship. Thinking Skills and Creativity. 16. pp.27-
39.
Jones, C., Lorenzen, M. and Sapsed, J. eds., 2015. The Oxford handbook of creative industries.
Oxford University Press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Mitra, J., 2019. Entrepreneurship, innovation and regional development: an introduction.
Routledge.
Perry-Smith, J. and Mannucci, P. V., 2015. Social networks, creativity, and entrepreneurship.
Piperopoulos, P. G., 2016. Entrepreneurship, innovation and business clusters. Routledge.
Sarooghi, H., Libaers, D. and Burkemper, A., 2015. Examining the relationship between
creativity and innovation: A meta-analysis of organizational, cultural, and
environmental factors. Journal of business venturing. 30(5). pp.714-731.
Online
Entrepreneurship. 2020. [Online]. Available through:
<https://www.oberlo.co.uk/blog/what-is-entrepreneurship>
Innovation. 2020. [Online]. Available through:
<https://www.ideatovalue.com/inno/nickskillicorn/2016/03/innovation-15-experts-
share-innovation-definition/>
Creativity. 2020. [Online]. Available through:
<https://copyblogger.com/define-creativity/>
10