Entrepreneurship and Growth: SWOT and PESTLE Analysis of Mask Business Idea

This report discusses the growth potential of Mask business idea through sources of entrepreneurship, SWOT and PESTLE analysis. It also describes the entrepreneurial idea of making eco-friendly masks and its opportunities and threats.

UNIT 27

TABLE OF CONTENTS
INTRODUCTON............................................................................................................................3
MAIN BODY..................................................................................................................................3
Presenting the sources of entrepreneurship.................................................................................3
Describing the entrepreneurial idea.........................................................................................5
SWOT Analysis...........................................................................................................................6
Pestle Analysis.............................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTON
The present report is based on Mask business ideas and has discussed about its growth in
the market weather it will profitable or not. Moreover, the study will cover about the
sources of entrepreneurship such as past experience and strengths ability that helps in growth
of company. In addition to this, the study will also discuss on the SWOT and PESTEL
analysis that will contributes identifying the external and internal threat of the firm.
MAIN BODY
Presenting the sources of entrepreneurship
Entrepreneurship can be defining as an ability of an individual to run and manage
business in the competitive environment (Aldrich, 2017). There are various sources of
entrepreneurship that are mentioned in detail below:
 Past Experience: This plays major role in running the business. An individual with
work experience is able to deal with the threats effectively. Moreover, it helps in
increasing the growth of the firm by making an appropriate plan because of the
specialization in a particular subject. Along with this, with the help of the past
experience the person can develop an ability to generate the new ideas.
 Strengths and Ability: An entrepreneur can make use of its strengths for building
the company. For instance, if an individual has great communication skill than it can
use that ability to interact with other business partner. As well as to communicate and
share its thoughts and ideas with the employees (Ács and et.al., 2017). Thus, skill
such as communication and technical can be advantageous for increasing the growth of
the company. Whereas, the entrepreneur can work on its weakness through learning
that will help an individual to improve the overall personality as well it helps in
increasing the productivity of the firm.
 Distribution channel: This channels helps the company in selling their products to
the customer effectively. It is one of the most important pasty of the business as it
allows the organization to distribute their products to their targeted customer. Beside
this an entrepreneur should select the appropriate channel as it will allow the
company in identifying the needs of the customer (Doern, Williams and Vorley.,

2019). So that it can make the products according to the needs of them that will
contribute in increasing the sales of firm.
The Ducker Seven Sources of Innovation:
According to Peter Ducker Innovation and entrepreneur goes hand in hand such as it
helps in providing new ideas in the business. Moreover, innovation will help in attracting the
customer as well as increase the growth of the firm in the competitive market. The
systematic innovation means monitoring seven sources for innovative opportunity. There are
four elements that are essential symptoms such as the unexpected success and failure or
outside event. The success of company is mainly depended on demand of the product and
services (Bosma Sanders and Stam, 2018). Moreover, it gives the opportunity to the
organization for increasing the growth.
Furthermore, the second source is the incongruity that is a discrepancy between
what is and what should be. The entrepreneur with modest spending habits will be able to
invest in the other business. Along with this, the third task will be process need is known as
the entrepreneur focus on one task instead of situation. The framework is able to
redesigned the products and services. As well as to replace the weak link that will contributes
in improving the overall performance of the firm in the competitive market. For
instance, if the quality of the manufacturing products is not good than company can make
use of the other advance technology. That will contribute in increasing the overall
demand and supply of the firm. Along with this, the entrepreneur need to choose the
market structure properly so that it can grow faster and significantly in the economy.
Moreover, company can face threat form the external market such as technological
and environmental that will increase the growth (Wadhwani and et.al., 2020). In addition to
this, the other sources are demographics such as change in the population and income of
the customer. However, the organization has to make the products according to the demand
of their targeted audience. As it will allow the company to increase their sales as well as build
the strong relation with them. In addition, to this the entrepreneur has to keep in the mind
change of perception such as the new trends in the market. Moreover, organization has to
make the products according to the new trends in the market as it will allow the organization
to build the brand image in the market. The seventh source is to have a knowledge about

the market as it will allow business in making the strategic plan that will contribute in
increasing the demand and supply of the firm.
Describing the entrepreneurial idea
Innovative ideas help the organization in maintain the sustainability in the competitive
market. The organization has to follow the new trends and digital technology in order to analyse
the market gap. Along with this, covid has allowed many firms to make the innovative
products in order to run their business in the external environment (Drobyazko and et.al.,
2019). Along with this, Mask company will be very profitable a business as it will allow
fulfil the basic needs of the individual. Moreover, the mask has is not only the essential
need but it also the part of fashion industry. This industry will be successful in the market
as there is high demand in the market. In this business idea the enterpriser will make
variety of mask such as printable and decomposable mask so that there is no waste due to it
and the products will be environmental friendly. Along with this, in this business an
individual will make use of cotton clothes as that fabric is suitable for skin and the
customer with sensitive skin will be able to use it. In addition to this, the cotton mask
will be washable and can be reuse thus, it will worth the cost (Kuratko and Morris,
2018). Whereas, the dissemble mask will be made of plastic waste and it will be easily
discompose. Hence, it will contribute in saving the environment and nowadays most of the
people are concern about using the eco-friendly products. It will contribute in increasing
the growth of the firm as the organization will be making the products according to the needs
of the competitive market. Beside this, the entrepreneur can make use of various models
that are explained in details below|:
McKinsey 7 Model: This type of model helps in analysing the organizational design
of the firm. Moreover, the aim of this tool is evaluate the effectiveness of the organization
through the interaction of key elements. Such as structure, system, shared values, staff and
style. This model will help the company to improve the performance of the organization
so that it can make appropriate strategy (Putra and et.al., 2019). Moreover, this tool help the
organization in identify the future threat and align the goal of functional department with
the company objectives. That contributes in increasing the productivity of the firm more
effectively and efficiently. Along with this, the model has 7 elements that are in form of hard
and soft. The three hard model is strategy, structure and systems these elements helps in

inflaming the management directly. On the hand, soft elements are less tangible influence the
culture of the company.
 Strategy: The entrepreneur needs to make the strategy in order to increase the
competitive advantage in the market (Gökdeniz, Kartal and Kömürcü., 2017. 0.
Moreover, the business approach will help the organization in dealing with the external
and internal threat.
 Structure: The organization has make use of functional structure so that work is
divide in the department and it is easy for the company to accomplish the goal.
 System: Enterpriser need to delegate the task and daily activity to the staff ibn order to
maintain the organization.
 Shared values: The organization has top follow the business ethics and core values in
order to avoid the government intervention (Hilorme. and et.al., 2019).
 Style: The entrepreneur has to adopt the leadership style so that it can guide e it’s
employee so that it work more effectively.
 Staff: The business needs to adopt the staff on the basis of their general capabilities.
As it will contribute in improving the performance of the frim in the
competitive market.
 Skills: The company can make use of advance technology in order to enhance the
abilities of the employees.
SWOT Analysis
Swot is a strategic tool that help the organization in identifying the external and internal
environment threat (Dhahri and Omri, 2018). It helps the organization in knowing the
strengths, weakness, opportunity and threat.
Strengths: The strengths of the above mentioned business idea that it is eco-
friendly product that will contribute in increasing the sales of the firm. Along with this,
the company raw material is also easy to manage that will save the operational cost of
the firm. The another strength of Mask business idea is the high demand in the market and
it is according to the trend of the market.
Weakness: The major issue that this business will face is it will require high
research and development (Damasceno and Abreu, 2018). That require high investment in

the research and it affects the overall budget of the firm. Along with this, company can
face weakness such as the organization need more skilled staff thus it has to spend more on
the training and development.
Opportunity: This business idea has various opportunity that will contribute in
increasing the overall growth of the firm. The company can expand their business in to
other market area. That will lead in increasing the brand image of the form. Along
with this, form can deal with the fashion industry that will contribute in increasing the
promotion of the company in the competitive market (Tsangas and et.al., 2019). As well as
helps in attracting more and more customer. Furthermore, the organization has an
opportunity that it is using the eco-friendly products the raw material will be cheap
for the company. Thus, this opportunity will increase the competitive advantage of the
firm in the market as well as helps in building the global presence.
Threat: This business idea can face external and internal threat that can harm the
operation of the company in the market. The organization can face threat such as high
competition that can affect the sales of the firm and company may lose the potential
customer (Islam, 2017.). Along with this, the organization need innovative ideas for running
their business such as the firm has to invest more in the market research. Thus,
organization operational cost will be affected severely and need more skilled labour in
order to make the products according to the market.
Pestle Analysis
It is a strategic tool that helps the company in identifying the threats of external
environment that can affect the growth of the firm. Moreover, the tool that is used by the
firm in order to identify the environment before launching the product and services. It
provide the organization with the bird eye view of the market from every angle
(Sánchez-Cambronero and et.al., 2020). That contributes in tracking the overall market as
well as building the business plan. Along with this, it covers the political, environmental,
legal, social, economic and technological factors that creates positive and negative impact
of the firm.
Political: This factor is consist of rules and regulation that are made by the government
that influence the economy. This includes restriction on the trade that can affect the
expansion of the company. However, the mask business idea is already making eco-

friendly product thus it will get the political support. Along with this, the company has
to follow the norms of the political party in order to sustain in the competitive environment.
In addition to this, this factor also include tax that can affect the business environment.
Economical factor: This factor directly determines the economy performance of the
form the company that can affect in long term. Along with this, the high inflation rate will
affect the cost of the company as well as products and services ( Aldrich, 2017). However,
this business idea is making the products according to the needs of the customer. That
will contributes in increasing the demand of the products in the competitive market as
well as increase the sales.
Social Factor: This is consisting social environment of the market that include
demographics, culture trend, population and buying culture of the customer. The
business has to make the products according to the needs of the targets audience in
order to earn high profit in the market. However, the above mentioned business ideas will
fulfil the needs of the customer as mask is essential commodity nowadays. This business
idea will attract the customer of all the age and every income level will afford the
products (Doern, Williams and Vorley, 2019). As the items will be eco-friendly it will be
easily affordable by the targeted audience. Moreover, the organization has to make
the goods and services according to the market trends in attract more and more
consumer. Along with this, this business needs innovative ideas for sustaining in the market
as it faces high competition.
Legal Factor: This factor include the laws and regulation made by the government in
order to maintain the peace in the society. This rules and regulation allows the company in
following the ethical practice. Along with this, business idea has to make the product
according to the laws as it will reduce the government intervention. In addition, to this,
by flowering the code of ethics it can protect themselves s for the legal suits as it can
damage the overall image of the firm in the competitive market. That will lead in losing
the potential customer as well as the firm has to bear loss (Damasceno and Abreu, 2018).
Moreover, the organization has to follow the Employment Act as it protects the rights
of the employees and employer.
Technological: This factor includes advance technology that contributes in increasing
the growth of the form in the competitive market. The business idea need to use digital

technology as it will improve the efficiency of the firm in the external market. Along
with this, the firm can make use of the social media marketing in order to promote their
goods and services in the market. That will lead in increasing the sales of the firm
more effectively (Tsangas and et.al., 2019). The another tools that can be use by the
firm such as data analytical that will contribute in identifying the need of the customer
that will help in increasing the sales.
Environmental factor: This business idea is already making eco-friendly product that
will contribute in prospecting the environment. Along with this, the firm will follow
CSR policy that result in increasing brand image of the company.
CONCLUSION
From the above the report it has been concluded that entrepreneurship is a skill of
an individual in order to run the business. Moreover, it has summarized about the sources of
entrepreneurship as well as Ducker innovation model. That will help I developing innovative
idea for the business. Furthermore, the study will depict about the McKinney 7
model theta will contribute in designing the organizational idea and implement the strategical
plan. Lastly, it has concluded on SWOT and PESTLE analysis on the mask business idea.

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