Entrepreneurship and Business Success Factors

This assignment explores the crucial elements contributing to successful entrepreneurship. It delves into the impact of social and human capital on entrepreneurial ventures, analyzes risk management strategies, and examines Porter's Five Forces model for understanding industry competitive dynamics. The analysis draws upon scholarly research and practical examples to shed light on the multifaceted nature of entrepreneurial success.

MANAGING HUMAN
CAPITAL AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of company and explanation of new product and service development concept. 1
TASK 2............................................................................................................................................2
Evaluation of macro, industry and micro environment of company to identify the proposed
opportunities for products and services..................................................................................2
TASK 3............................................................................................................................................6
Critical evaluation of requirements of human resource and HR strategies ...........................6
TASK 4............................................................................................................................................8
Evaluation of potential risk in business idea and ways to manage the risk...........................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
This report is based on the introduction of new product by the existing international firm
in European market. It also provides a clear understanding of micro, macro and industry
environment affect the business of operations of organization named RAMLY group which is
frozen and fast food company. Managing human capital provides a clear understanding about the
strategies which are applied by the organization to manage its human resource at workplace. It
clearly determines the risk which are associated with the introduction of new product in
hospitality sector. Analysis of various HR strategies have been provided an understanding about
various practices roles and responsibilities which are accomplished by human resource
department in organization to gain qualified employees at workplace.

INTRODUCTION
Managing human capital is most significant activity accomplished by the
management of every organization to make effective utilization of human resource
that exist in the organization. It is also recognised as significant aspect of
management that concentrates on increasing the abilities, skills and knowledge of
individuals so that they can perform effectively within the organization. In this
context, analysis of Ramly group is done which an international frozen and fast
food brand of UK and also has its business operations across some other countries.
This reports provide an understanding about opportunities available for the cited
organization for the introduction of new product in market.TASK 1
Overview of company and explanation of new product and service development concept.
Management of human capital is recognised as most important activity which is
accomplished by the management of every organization for effective regulation of existing
business activities as well as introduction of new products and service to expand the business. In
this context, analysis of RAMLY group is done which is a Malaysian frozen and fast food
company which was founded by an individual named Haji RAMLY Mokhni 1984 with the aim
of development of clean and good quality halal western food chain in Malaysia. The main
products and services delivered by the company are burger, fried chicken, frankfurters and other
fast food products as well as also operates its burger stall widely in Malaysia. It also owns a
processing plant located in SME Industrial Park, Mukim Batu, Kuala Lumpur offering job
opportunities in management, production to product marketing and distribution. RAMLY is
presently recognised as a household name in Malaysia and international markets.
Apart from this, the company also has the plan to expend its business operations in new
markets like the Middle east, Japan and Korea. In order to expand its sales and capture market
share firm should introduce a new product of chicken nuggets like keropok lekor. Apart from
this, company will provide this product at reasonable prices to increase its customers in target
market segments. They have also applied various channels of marketing for the promotion and
also establish its branches at prominent places of middle east, Malaysia other countries. Along
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with this, the quality of their product and services is also considered as unique which supports
them in expanding the sale of their products.
TASK 2
Evaluation of macro, industry and micro environment of company to identify the proposed
opportunities for products and services.
For the implementation of new product development idea, it is essential for the firm to
analyse the opportunities for products and services to influence people and achieve the desired
sales and growth in market (Unger and et.al., 2011). In this context, for analysing the
opportunities for product of RAMLY group to achieve good response and desired sales growth,
its macro, industry and micro environment is analysed. PESTLE analysis will help in identifying
macro environmental factors to gain understanding of opportunities available for the firm to
achieve growth in market.
 Political environment: From the research, it has been recognised that legislation of
political parties and government also affects the sale of products and services of firm. It is
considered essential for the firm to analyse the legislation of government in particular
country or region related to introduction of new products and services. In this context,
government of Malaysia has supported the RAMLY group in its strategic expansion plan
outside the domestic market (Barringer, 2012). They have also developed an objective to
expand its business operations in middle east, Japan and Korea where they will have no
restrictions on the sale of non-vegetarian products. Therefore, they will have a great
opportunity to expand their products in target market segments.
 Economic environment: Continuous rise in the economic growth of countries has also
provided major impact on sales of company's regulating their business operations in fast
food or service sector (Minichilli, Corbetta and MacMillan, 2010). In Malaysia, income
level of people has been increased which has changed their focus towards consumption of
quality products available in market. In present scenario, RAMLY group should also
provide its new product in appropriate quality and adopt effective pricing strategy by
analysing the purchasing power of its customers.
 Social environment: Apart from other factors, social factors are related to the perception
and thinking of consumers which influence the sale of products in market. It is essential
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for the firm that products which are introduced should create value among the people and
also satisfy their demands. In this context, there is huge market of non-vegetarian fast
food products in Malaysia (Marvel, 2013). Therefore, products of RAMLY group will
also get great response from customers. Apart from this. Price factor also affects the
perception of customers towards the purchase of products and services in market.
Moreover, by providing the products at competitive prices firm will be able to attract
customers and achieve the desired sale in market.
 Technological environment: Rapid increase the technologies for the promotion of
business has provided great opportunities for RAMLY group to expand the marketing of
its new products and services among the customers in different countries. Various
communication channels have been adopted by the firm to promote its new products and
services like social media, digital advertising, pamphlets, online order facilities etc.
 Legal factors: For the expansion of business operations, it is also essential for firm to
follow all the policies and rules which are established government related to selling of
food products in service sector like health and safety act, employee compensation act,
environment act etc. Company has achieved success in its business operations as it
following all the rules and providing healthy and quality products which will affects the
health of people (Stokes, Wilson and Wilson, 2010). Other than this, they are also
providing fair compensation to its employees. Thus, the company has strong brand image
in industry which differentiate them and provide support in achievement targeted sales
and profitability.
 Environment factors: By using appropriate packaging raw material, they are not
providing any harm to environment of country. With effective waste management
system, they have also supported the government to keep healthy and pollution free
environment within the country. Moreover, it is has become a strength of organisation to
implement its strategic expansion plan and attract people in host countries towards their
new product.
In addition to this, SWOT analysis of RAMLY group is done to analyse the Micro environment
for the survival of its new product in domestic market.
Strengths Weaknesses
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 Good exposure and knowledge of the
local markets and that of the product.
 Good market position and brand
recognition
 Broad network of portfolio services.
 New infrastructures and technological
aspects being customized as per the
needs of customers.
 Geographical focus with its presence in
various locations.
 Lack of effective marketing strategies
 Lack of experts and qualified
employees.
 Manufactures fast food which is
considered as unhealthy for customers
and increases fat.
Opportunities
 Expansion in different markets.
 Export of products to other countries
china, Gulf countries (Payne and et.al.,
2011).
 Online shopping with various models
which could be introduced to suit
different customer requirements
Threats
 Compliance with Government rules in
terms of sales.
 Major preserved products which might
enter the local market and those which
are of an international brand. There
could be fear of losing market control
for the local products from the local
vendors.
 High competition in market from other
competitors.
Thus, it has been observed that the firm has great opportunities to introduce its new product and
establish subsidiaries other geographical areas of domestic market.
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Porter's five forces model is applied to analyse the opportunities for the new product of
RAMLY group to achieve desired response from customers in industry and firms strategic
position to expand its business in service industry of other countries.
 Competitive rivalry: This force analyses that the intensity of competition presently in
marketplace which has been determined by number of competitors in market. In this
context, Rivalry in competition is high for RAMLY group as there are just few business
firms equally selling a product in market.
 Bargaining power of suppliers: This force analyses power of suppliers within industry
to bargain with the company related to prices of raw materials. It is mainly based on the
number of suppliers existing within industry (Kwon, Heflin and Ruef, 2013). In this
context, business of RAMLY groups is in better position as there are multitude of
suppliers in industry which provides high quality of raw material at reasonable cost.
 Bargaining power of customers: In this, influence of power of customers has been done
which affects the pricing and quality of products. Cited firm has analysed that bargaining
power of customers is strong as there are lot of sellers in market which provides
substitute products of RAMLY group.
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Illustration 1: Porter's five force model
(Source : Porter's Five Forces, 2017)

 Threat of new entry: There is no threat of new entry of competitors for RAMLY group
as their position is very strong in market. New competitors will require high amount of
funds and period to capture the market of firm.
 Threat of substitute products: This force studies how easy it is for consumers to switch
from a business's product or service to that of a competitor (Gao, Sung and Zhang, 2013).
In present scenario, there are many competitors which provide developed substitute
products to influence the customers of RAMLY group. Therefore, consumers have
various choices but the quality and taste of products of cited organization will provide
them growth in market as compared to rivals.
TASK 3
Critical evaluation of requirements of human resource and HR strategies
For expansion of business operations, there is great requirement of effective human
resources in every organization to introduce new products and services among the customers in
domestic market or in other countries. In present scenario, organization has provided significance
to HR department as they help in attracting and hiring qualified employees on job profile. It is
also recognised that there are great requirements of effective human resource for the
implementation of strategic expansion plan (Slotte‐Kock and Coviello, 2010). It is also analysed
that the firm has an objective to establish its business subsidiaries in other countries like Middle
east, Japan and Korea etc in the span of five years. Further, they will hire employees from the
same country in which it has established its business or exports products. There are some
practices which are applied by HR department cited organization to hire effective employee at
workplace such as:
 Job description: In order to get qualified employees at workplace, they will develop an
appropriate job description which consist of all the qualities and skills which required for
the job positions.
 Appropriate selection practices: For getting qualified employees at workplace, cited
firm will apply an appropriate selection procedure for the screening of appropriate
candidate and analysing its potential to work under competitive situations. It is essential
for them to analyse the thinking of candidate to provide innovative ideas, experience and
communication skills to influence the customers.
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 Training: In order to increase the competencies and potential of employees, it is essential
HR department of cited firm to organize various training programs in which employee
will be guided to accomplish the job and also the way of communicating with customers.
Apart from this, there are various HR strategies have been applied by the RAMLY group in
order to implement new product idea which is described earlier. HR strategy connects the
business strategy with the effort of human resources to develop a better and competitive
advantage for the firm in appropriate marketplace. In this, there are some effective strategies
have been determined below:
 Strategic planning: It is most effective strategy of human resource department in which
they will analyse the Mission, vision and objectives of company in the future and develop
strategic plans to achieve those objectives (Warner, 2013). In this context, A strategic
tool which is used by the HR to retain the talent is employee’s satisfaction survey.
Employees are asked their opinions regarding various policies, amenities, benefits and
career development. Conducting customer interviews is another possible tool to
determine satisfaction.
 Hiring qualified employees: It is also most significant strategy of human resource to
hire qualified employees at workplace which develops the products as per the demand
and taste of customers. Other than this, it will also require the employees should possess
an innovative thinking to support the firm in decision skills. Thus, for hiring qualified
employees, they have to develop various plans like poaching, providing benefits etc.
 Cost cutting: It is also most effective strategy of HR to reduce the cost of company by
developing various plans to reduce the waste of raw materials, appropriate use of
resources to develop the products. In this context, HR department of organisation will
develop effective plans to reduce the cost and expenditure of firm on raw materials as
well as hiring of new employees at workplace.
 Performance management: It is also an effective strategy of HR which describes the
importance of improving and managing performance of employees in organization to
develop and implement new products and services. In RAMLY group, It is important to
increase the performance of employees by providing effective training, motivation and
compensation. Thus, with this strategy they will be able to influence the employee to
work for accomplishment of goal of introduction and promotion of new products in
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market. They will determine the responsibilities to employees they have to complete in
order to accomplish the job.
 Conflict resolution: It is also an effective strategy of human resource to resolve the
problems of employees related to employment or conditions of employment. In this
context, it has been determined that organization has to apply effective measures like
recognition, promotions, rewards, compensation and developing flexible working hours
for employees to work within organization. In RAMLY Group, they will also apply this
strategy to provide motivation to employees and resolve their problems at workplace.
 Development of compensation plan: It is also an effective HR strategy in which the
cited organization will develop an effective plan to provide consideration for employees
so that they will get motivation and it will also not affect the profitability of organization.
 Perform a gap analysis: A gap analysis help the firm in identifying the availability
resources y and also determines need in the future. It is also considered as essential for
firm to analyse the problems which arise in implementation of new products. This
strategy of HR will support the firms in analysing the gap between the target and actual
sales of organization.
Thus, these are some effective HR strategies which helps the firm to implement its new
products and services in other countries within the service sector.
TASK 4
Evaluation of potential risk in business idea and ways to manage the risk.
In implementation of every business idea, there are always various types of risks involved
which the organisation has to consider and have to apply effective policies in order to manage or
reduce the impact of risks on business operations as well as profitability (Sánchez, 2013.). It is
considered as essential to maintain its brand image in market and achieve the objectives which
are developed. In this context, there are also potential risks which have been identified which
affects the firm in the process of implementation of new product idea. These potential risks are
determined below:
 Strategic risk: It is well known fact that successful business requires a comprehensive,
well-thought-out business plan. It is the risk that if the strategies of company become less
effective and it does not become able to reach the goals. This type of risk can be
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occurred to technological changes, shift in demand of consumers, entry of new powerful
competitor, rise in cost of materials or other large-scale changes. In this context, Changes
in the demand of consumers and entry of new rival can also be a risk for the RAMLY
group in implementation of new product and services across other countries.
 Compliance Risk: This is also major risk for the firm which is related to the compliance
of business operations with laws and regulations. It clearly determines that changes laws
of government can also provide impact on the sale of products of cited firm in other
country. These changes in regulation may include rise in taxes, rules related to safety and
health of consumers, duty on import of raw materials, rules for employee compensation
etc. it will also affect the profitability of firm and causes rise in prices of product.
 Operational risk: It is considered as an unexpected failure in firm's day-to-day
operations (McKeever, Anderson and Jack, 2014). It could be failure in process of
development of product, promotion or appropriate packaging of products caused by
employees or processes. In this context, this type of risk can also be faced by the
RAMLY group in its process of implementation of new business plan which will create
problems for them and provide dissatisfaction to consumers. Apart from this, It can also
be considered as risk which is related to the development and sale of product in market. If
the firm will not provide the suitable and quality product, it will have to face the issues
and its products sales will start declining in market.
 Financial risk: Most categories of risk have a financial impact, in terms of extra costs or
lost revenue. But the category of financial risk refers specifically to the money flowing in
and out of your business, and the possibility of a sudden financial loss. In this context,
decline in sale or less outcome of marketing strategies will provide an impact on the
revenue of firm (Brunold and Durst, 2012). Rate of currency exchange rates will also be
considered as major risk for the firm in implementation of new product in other country.
 Reputation risk: It is most important risk for every brand in market as it causes a major
loss to their financial position and sales of products in market. Providing ineffective
products to customers will also create problems for firm and reduces its brand image in
market among the customers.
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Apart from this there several effective ways are determined which the RAMLY group can use to
manage the risk and resolve the problems in implementation of new product development
policies. Basically, there are five main ways to manage the risk which are determined below:
 Acceptance: It means that when the firms has identified the risk then it should accept
that and apply effective methods to analyse their effect in the future. It is a good strategy
which is used by every firm (Bosma and et.al., 2012). It could take a lot of time to put
together an alternative risk management strategy or take action to deal with the risk, so
it’s often a better use of your resources to do nothing for small risks.
 Avoidance: Sometimes avoidance of risk can also be an effective strategy for the firm in
resolving the problems in the future. It can provide a suitable competency to firm in
facing challenges and achievement of various business objectives. In this context, risk of
currency fluctuation can be avoided by the RAMLY group as it can be favourable in
future and changes in to opportunity for the firm to achieve growth in market.
 Transfer: It is also a most effective way to manage the risk in implementation of new
product development process and establishment of business operations in other countries
(Bosm and et.al., 2012.). In this, it has been recognised that the cited organization will
manage its risk by transferring risk to its other subsidiaries or partners or insurance
companies.
 Mitigation: It is the most common risk management techniques which is used by every
business firm in its expansion plan to resolve the problems (5 ways to manage risk,
2017). In this context, In order to reduce the operational risk of improper development of
product or ineffective marketing will be managed by providing training manufacturing
staff as well as sales team. This will reduce the problems of firm and supports in
achievement of desired sales in market.
 Exploitation: This is also a risk management technique which is applied after the
implementation of all the strategies. In some cases, the risk can be positive as there is
huge demand of product and firm doesn't have the appropriate distribution channels or
resources to meet those demands then it will affect it sale (Karahanna and Preston, 2013).
Therefore, in these cases this strategy is applied by firm and look for ways to risk happen
so that they will be able to analyse the ways through which they will manage such risk in
the future.
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CONCLUSION
In this report, it has been concluded that managing human capital is considered as very
important for the organization as it provides major benefits in introduction of new product in
market. It is also recognised that there are various opportunities for the Ramly group to introduce
their new product in market and also expand its business operations across the countries. Internal
analysis of firm has provided an understanding that the firms has its strong brand reputation in
market which provides them benefits to increase the sale of their new product in domestic as well
as international market. Apart from this, external analysis of firm has provided an understanding
that their huge impact of social factors on the business operations of firms and they have to
provide quality products at reasonable price in order to satisfy the needs of their customers.
Analysis of HR strategies have also provided an understanding that the Human resource
department plays a significant role in providing qualified employees to the organization.
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REFERENCES
Books and journals
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capability building in SMEs: A social capital perspective. International Small Business
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Karahanna, E. and Preston, D.S., 2013. The effect of social capital of the relationship between
the CIO and top management team on firm performance. Journal of Management
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Kwon, S.W., Heflin, C. and Ruef, M., 2013. Community social capital and entrepreneurship.
American Sociological Review. 78(6). pp.980-1008.
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477.
Minichilli, A., Corbetta, G. and MacMillan, I.C., 2010. Top management teams in family‐
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