Managing Human and Capital Entrepreneurship

This report focuses on managing human and capital entrepreneurship, specifically on a case study of Red Tea Plantation in Malaysia. It discusses the business model, sustainability evaluation, impact of external factors, human resource requirements, and HR strategies. The report also addresses challenges and solutions associated with the new business venture.

MANAGING HUMAN AND
CAPITAL
ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
Business and Business Model......................................................................................................3
TASK 2............................................................................................................................................4
Sustainability evaluation of the business.....................................................................................4
Impact of external environment factors on business...................................................................5
TASK 3............................................................................................................................................7
Human Resource Requirements..................................................................................................7
HR strategies................................................................................................................................7
TASK 4............................................................................................................................................9
Challenges and Solutions.............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurship is defined as converting a idea into a successful business venture. In this
report case study will be taken over Red Tea Plantation planning to launch a new business
venture in Malaysia. Henceforth, reports will emphasis on the precise model for the new business
venture launch. Impacts of various external factors over the operations of new business venture
will also be discussed in this report. Different approaches of Human resources in enhancing the
growth of new business venture will also be discussed. Different success factors will be
analysed. Furthermore, report will also give emphasis on different challenges associated with the
new business venture and to overcome these challenges suitable strategies will also be discussed.
MAIN BODY
TASK 1
Business and Business Model
The business that has been planned for the entrepreneurs is the “Red Tea Plantation” in
Malaysia where the organic tea would be cultivated and grown as the market potential for this tea
is huge but the current competitors and dealers are fewer. The different aspects and features of
the business can be illustratively by using a business canvas model. For Red Tea Plantation, this
can be presented in following manner:
Key Partners Key Activities Value Proposition Customer
Relationships
Customer
Segments
 The tea
distributors,
wholesalers
and retailers
who will act
as outlets of
business.
 Local farmers
and extra
labour
necessary in
order to
engage in
different
activities at
plantation.
 Offline selling
of the organic
tea to
different
consumers
throughout
Malaysia in
the initial
years.
 Online
presence of
the brand
where anyone
can order tea
currently
available in
Malaysia
 The current
prevalence of
the tea
plantations
offering
organic tea to
its customers
is very few and
that too not
properly
placed.
 People are
becoming
more
conscious
about the
products they
 The customers
will be attracted
through online
mediums, B2C
sales, door to
door selling or
personal selling
in the initial
days (Joyce and
Paquin, 2016).
 This will help
in establishing
a rapport with
the customers
and hence
ensure that the
goodwill of the
 The customer
segments that
are mainly
targeted are
based in the
behavioural
tendencies and
the
geographical
boundations.
 People who
want to make
healthy choices
and preferences
over other
products and
the ones who
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 Sponsors and
investors of
the business.
only. are consuming
choosing
health over
anything else
and this can
act as a major
value
proposition.
company is
created.
are based
within the
boundaries of
Malaysia can
be solely
targeted.
Key Resources Channels
 Technical
equipments
and
machineries
 Human
resource
 Physical
resource of
land etc.
 Online
marketing tools
 Online medium
will be used by
creating a own
website and
listing the
products on
various other
websites as will
such as amazon,
e- bay etc.
 Offline
availability will
be through
different retail
outlets,
wholesalers,
malls, grocery
stores etc.
Cost Structure Revenues Streams
 The expense would mainly be in the
purchase of the raw material and packaging
as well transporting of the products.
 The salaries paid to the workers, fixed assets
acquired would also be a major cost avenue.
 The revenue can mainly be earned by the
final product that is being manufactures and
sold (Ojasalo and Ojasalo, 2018).
 The different agencies contacted, the malls
and wholesalers, online retailers, own shops
etc. collectively will help in increasing the
accessibility of the tea and thus profitability
will increase.
TASK 2
Sustainability evaluation of the business
The business idea of developing the Red Tea Plantations is directly associated with the
sustainability aspect as the basic idea is to avoid the use of fertilisers and any kind of chemicals
in the growth of the product. This is exactly what addresses the sustainability aspect because as
per sustainability compliance as well, the business must not cause potential harm to the nature in
any manner (Ansah and et.al., 2016). The business proposed reduces the number of chemicals
that might affect the land of the area and also the promotion of the consumption of the natural
products is a sustainable practice as it is focused towards improvement of the future generation
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with jeopardizing the present. Further the sustainability compliance of the business can even be
evaluated from the fact that the company would be creating employment amongst the local
people as the tea plantation will require the normal labourers and hence the reduction in the
unemployment is another major aspect. All over, it can be said that the Red Tea plantation will
only assist in the improvement of the sustainable plantation farming being implemented in
Malaysia and this in turn will affect positively on the overall activities that are being performed.
Impact of external environment factors on business
The external analysis and the different factors that are associated with it are bound to have
certain degree of impact as well as control on the overall operation of any company. The Pestle
analysis helps in analysis of the six different factors and the impact that they will have on the
business that has been proposed. This can be done in following manner:
 Political Factors: The current political environment of Malaysia is a fairly sable one and
the government has been taking progressive decisions. The country has strong relations
with the other companies as well and is in trading relations with many of them except
China (Holzner and et.al., 2019). This can work in favour of the company because the
organic tea plantation has not yet developed fully and has a clear potential for
development. The stable tax rates implemented by the government, the flexible
opportunities for international expansion etc. all can contribute in the growth of the Red
Tea plantations at national add international level thus acting as a favourable opportunity.
 Economic Factors: The economic growth such as GDP, inflation rate, interest rat4s etc
are the major contributors in the success or failure as these clearly product the expected
sales and profits for a business. Currently, the economic factors indicate that the Malaysia
is a middle income country but the export facilities of the country and the support to
plantations is very huge (Ibrahimy, 2018). Additionally the products of the Red Tea
plantations are also averagely priced and this will help in the attraction of the public and
its customers at large. The common strategies can help in turning this factor also as a
favourable aspect for the company.
 Social Factors: The social factors indicate the approval and support that can be expected
from the local society and people amongst which the business is supposed to be
operating. It is necessary to ensure that the society approves of the business idea and is
ready to support because only then an organisation can function exhaustively. In the
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current case of Red Tea plantations, the idea to grow organic tea is in favour of the
society and its people only as they will be able to live a healthier lifestyle (Alam and
et.al., 2020). Further this creates additionally employment situation as well thus
benefitting the society in multiple aspects and manner. Therefore, this is a favourable
aspect and will help Red Tea plantation in further growth by their support.
 Technological Factors: The technological advancement indicates the potential growth of
the business as well along with the entire economy. At present, the overall technological
growth of Malaysia is excellently well developed where country has been in coalitions
with major technological project between counties. This will help in obtaining the
improved technology for the purpose of accomplishing the business objectives that have
been set up (Perera, 2017). This can significantly reduce the overall time required for a
plantation and hence the overall benefits of these factors are huge. However, this can
create increased costs and investment for the business as after the acquiring of the
technology, it requires trained employees and regular maintenance which ultimately
increases the cost.
 Legal Factors: Legal compliance of a business along with the laws and regulations that
have been developed and operating within those legal boundaries is an essential aspect of
successful and uninterrupted operation. The tea plantation industry is not very strictly
regulated in Malaysia and hence the different business activities can be performed
without many restrictions (SHTAL and et.al., 2018). However the company must always
operate within the limits of the laws and the permissions that have been taken so that no
unnecessary barriers occur in the operation of the company. this can act as a favourable
aspect for the company collectively and hence the operations should always fall within
the limits setup.
 Environmental Factors: The environmental factors basically indicate that how
environment friendly a business and its activities are, what the CSR activities are and
how the sustainability is being promoted by the organisation (Rastogi and Trivedi, 2016).
In the current case, the Red Tea Plantations are completely in accordance with the
support of environmental factors as they are an organic tea plantation which does not use
chemical which cause unnecessary harm and deterioration of the land.
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Therefore all these factors present a positive outlook collectively for the business and hence
the strategies can be developed and effectively implemented.
TASK 3
Human Resource Requirements
The Red Tea Plantations will mainly require the labour as the human resource so that they
can work on the plantation fields performing all the relevant physical jobs and tasks. The
majority of the human resource will be required in this area only however, there will be need to
technical experts who can operate the machineries that are being used and the software or
website developers and online activities are also manager by the additional workforce that will
be required (Anwaar, Nadeem and Hassan, 2016). Therefore these are the three major
categorisations of the human resources that will be necessary for Red Tea Plantation.
HR strategies
The key HR strategies for the Red Tea plantation that will be relevantly required in HR
implementation can be analysed in following manner:
 Recruitment: The respondents will be recruited by company and since the majority of the
recruitment would be for the basic physical work, the company can hire a contractor or
agency for them. It will be their role to decide their per day salary, them their salary and
manager all the menial work that is to be done. In order to hire the professionals, normal
interview method can be used for recruitment (Atena and Tiron-Tudor, 2020). This will
help in evaluating their actual skills and the comparing them with the ones that are
required to complete the job role thus helping in completion of an important task.
 Selection: The selection strategy can be adopted in such a manner that there can be some
critical tests and interviews based on which an employee should be selected. The
labourers will be hired directly by agency through external sources and hence that is not
covered under the purview but for other purposes, the workforce can be selected only
after they create an impression of the HR that they understand their job rile and the duties
that they are expected to perform (Rane, Sunnapwar and Rane, 2016). Therefore,
interview techniques, the use of personality and IQ tests, evaluation of the past
experience and performances etc. are the key attributes that can be adopted for selection
of employees.
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 Training: The training strategies that can be adopted by the Red Tea Plantations can be
both off the job training and on the job training. The training regarding use of different
machineries, equipments etc.cba be given in on the job training method where the
selected employees can be taught how to use such equipments and off the job training can
be used for team work and development and other activities such as giving normal
updates and educating about the current trends, holding workshops etc. These strategies
can help in the fulfilment of the HR duties related to training of an employee.
 Performance Measurement: Performance Management can be adopted and implemented
in the Reed Tea Plantation by using a number of strategies such as the 360 degree
feedback technique, benchmarking method etc. Under the 360 degree feedback the
managers will evaluate the performance of an employee and covey this to them
identifying what are the areas that require improvement and the employees in turn also
given their feedback regarding why their behaviour is not appropriate (Malik, 2016). The
benchmarking technique can also be used where the manager can set some standard
targets that are to be achieved by the employees and these are then compared with the
actual ones.
 Motivation: Employee motivation is one of the key components of success and hence it is
necessary for the managers to increase their overall motivation by adopting different
strategies such as team development and team activities, monetary and non- monetary
rewards etc. (Yue and et.al., 2018). The rewards, appreciation, sense of belongingness
etc. acts as major aspects of increase in the overall motivation level of an employee and
this in turn increases their productivity as well as their loyalty towards the organisation.
Motivation can hence be developed in this manner amongst the overall employees at Red
Tea Plantation.
These strategies will collectively ensure the sustainability in business as well because the
transparency between selections will be very high and the decisions will be taken after proper
deliberation selecting only those who are adequately trained. Also the strategies would be in
favour of the sustainable operation of the organisation rather than giving unnecessary favouritism
to some of the employees in particular.
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TASK 4
Challenges and Solutions
The key strength of the company is that it has ventured into the organic tea market which
has not yet been explored much and the benefits of tapping an industry early are immense.
Challenges are bound to arise but the key is to be prepared regarding how will they be addressed.
Based on the analysis that was done above there are certain challenges that can be anticipated for
the Red Tea plantations in future. The major solutions for the challenges can be developed in
following manner:
 Cost: The organic tea is comparatively costlier than the normal tea because its production
cost is also high. Although there is health conscious people who will be willing to buy the
tea but still its prevalence and popularity might be restricted due to such increased cost.
Therefore, in such a case the company can adopt extensive monitoring stages where the
customers can be educated about the benefits that they will be able to utilise after
drinking the tea even if their prices are a bit higher they are able to exercise them.
 Competition: The competition is bound to increase immensely in the future as this
industry will significantly rise with the increased number of people shifting towards
products that are grown organically. The best solution is to create brand loyalty in the
market as soon as possible so that even if new industries or companies do emerge, they
are not able to capture the market of the plantation. The creation of niche can also act as a
solution but this will limit the market so the company should go for brand loyalty as the
solution.
 Imitation: The technique and technology that the Red Tea Plantations plans on using can
be easily imitated and copied by the other plantations as well because these things cannot
be kept hidden and even of they are hidden, an employee can easily leak the confidential
data and strategies of company. in such cases, the best strategy is to limit the access that
the employees have on the internal planning of the company and focus on the
development of human resource more as compared to physical resources.
Therefore in this manner some of the ley challenges and their solutions have been identified
for the Red Tea Plantation.
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CONCLUSION
Launching a new business is a tough task to do. In order to sustain the business in market
business venture needs to face all the different challenges associated with the market. With the
support of business model all different stakeholders and partners that can contribute in the
growth of the new business venture have summarised. Factors like political, economic, social,
technological, environment and legal factors play a huge role in the sustainability and growth of
the new business ventures. All these factors are the external factors impact over the business
operations of new business venture. Different polices like recruitment, selection, training,
performance management and other relevant strategies HRM can support to enhance the
potential of new business venture. Factors like market share, profitability and other relevant
factors are the factors that indicate the presence of company in market.
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REFERENCES
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Engineering and Operations Management Detroit, Michigan, USA, September 23 (Vol.
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strategies on employees’ performance. Cogent Business & Management. 3(1). p.1245939.
Atena, F.W. and Tiron-Tudor, A., 2020. Gender as a Dimension of Inequality in Accounting
Organizations and Developmental HR Strategies. Administrative Sciences. 10(1). p.1.
Holzner, A., and et.al., 2019. Macaques can contribute to greener practices in oil palm
plantations when used as biological pest control. Current Biology, 29(20), pp.R1066-
R1067.
Ibrahimy, A.I., 2018. A Case Study On Golden Hope Plantations Berhad. UNIMAS Review of
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strategies in modern business (pp. 193-215). IGI Global.
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marketing and entrepreneurship.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
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successful lean implementation. International Journal of Procurement
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Rastogi NI, Trivedi MK. PESTLE technique–a tool to identify external risks in construction
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2016;3(1):384-8.
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SHTAL, T.V., and et.al., 2018. Methods of analysis of the external environment of business
activities. Revista ESPACIOS, 39(12).
Yue, J., and et.al., 2018, December. Effect of treat-to-target strategies on bone erosion
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