Entrepreneurship and Business Development: Natural Beauty Business Plan

This report discusses the effect of causation and effectuation on innovation and presents a business plan for Natural Beauty, a start-up dealing with organic and herbal skin care beauty products. It also includes a risk mitigation strategy to ensure the success of the new venture.

MODULE TITLE ENTREPRENEURSHIP AND
BUSINESS DEVELOPMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview.....................................................................................................................................1
Presenting causation and effectuation impact on innovation......................................................1
Competitive analysis...................................................................................................................2
STP analysis................................................................................................................................3
Drawing on relevant frameworks and concepts, discuss your proposed business model and
explain how the new venture will work......................................................................................4
Marketing mix.............................................................................................................................5
Risk mitigation strategy..............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business plan can be defining as document that is consisted of idea, market analysis and
strategy that allow organization to accomplish their organizational goals in limited frame of
time. Along with this, it is very important for company as it helps the firm in evaluating and
mitigating the risk before launching new product or services in the market. Moreover, the
present report will be based on new start-up Natural beauty that will be dealing with organic and
herbal skin care beauty product. In addition to this, firm will be operating its business in UK.
Lastly, the report will discuss the effect of causation as well as effectuation on innovation.
MAIN BODY
Overview
Due to pandemic there has been drastic change in taste and preference and it has shifted towards
buying healthy and essential product. Along with this, due to lock down there has been increased
in growth of organic company. So natural beauty has decided to sell herbal skin care to their
customer in order to improve their health.
Vision
To be the most influential skin care company in the world
Mission:
To expand our knowledge in natural skin care, create exceptional products, educate and give
back to the community.
Presenting causation and effectuation impact on innovation
Enterpriser is defined as way of conducting business in order to earn profit. Along with
this, it has to fight for survival as well as with less resources as well as to fulfil the needs of
customer. There are two types of method in entrepreneurship such as causation and
effectuation. The causation method is also known as casual thinking process as in this way
enterpriser focus on predefine goals and then aims to find the means to reach goal (Yan and
et.al.,2018). Whereas, in effectuation a business makes use of the material it has as well as
materialize into one or more goal and predefined them. Although Start-up business that use of
effectuation approach have to share ideas, and they perceive such network resources as having
high value. On the other hand, enterpriser that are using causation approach have limited
resource and share ideas with other company. Along with this, innovation is very important for
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business as it helps the company in increasing overall growth of the firm. It allows enterpriser to
develop new product and services that helps in attracting large customer. Moreover, natural
company has adopted for new idea that is making organic beauty product such as Scrub and
essential oil. Along with this, this innovative idea will be successful for running the company as
such industry is in high demand. Due to this innovative idea firm will be able to sustain in the
business environment as well as innovation contributes in building productivity as well as
performance of form.
innovation as a change that adds value to an existing product or service (Cunningham and et.al.,
2019).
Due to high competition Natural beauty need to make innovative product in order to
sustain in business environment. Along with this, innovation is basically replacing old product
into new by updating them or improving it. This is one of the most important tool for enterpriser
as it helps in meeting the dynamic changes of market. Furthermore, an innovative business has
an ability to handle tough situation and it can easily meet market demands as well as trend.
There is relation of innovation and business as it helps in creating development such as
designing of brand (Namibian, Wright and Feldman, 2019). For example, Natural beauty have
launch new product in order to start their organization. It came up with the idea of herbal and
organic beauty material so that it can meet their market demand. Thus, innovation will give
organization with various opportunity like increasing growth and performance as well as keep
company with meeting needs of market current trends. Along with this, Natural beauty will
make use of social media marketing so that it can create brand awareness in the market. Hence,
it will help the company in building brand recognition. Moreover, it contributes to the current
success by meeting future needs as well as helps in finding solution to make company grow.
Competitive analysis
Basis Natural Beauty Bloom natural Awake organics
Products There are different types
of products offered by
company such as skin
care, hair mask, body
mask and lotion, Night
Handmade Cornish
organic and natural skin
care, on-eyelashes,
botanical extracts.
Some products are
deodorant, vegan skincare,
cruelty-free cosmetics,
sustainable biodegradable
ingredients.
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cream (Li, Zhou and
Xing, 2020).
Pricing
strategy
Cost advantages strategy
will be used by the
company so that it helps
to attract more customer.
Price penetration strategy
used by firm.
Price skimming strategy
used by Awake organic.
Place From the initial stage the
product will be available
at offline store as well as
online stores.
There are stores in UK
and also available at
online sites.
Product will be available at
offline store as well as
online stores (Kaplan,
Natori and Raz, 2020).
Promotio
n
More focus on modern
method of promotion
because it helps to reach
at the large audience like,
Instagram, website, you-
tube, etc.
Traditional as well as
modern method of
promotion strategy used
by the company such as
hoardings, newspaper,
Instagram, etc (He, Gan
and Yuan, 2019).
Modern as well as
Traditional method of
promotion strategy used by
the company such as
hoardings, newspaper,
Instagram, website etc.
USP Good quality of product
so that it helps to attract
more women
More focus on quantity
over the quality.
To attract the consumer by
offering discounts.
Target
audience
The major focus on
women and skincare
products are offered for
men as well.
The major focus on
women and skincare
products are offered for
girls as well.
The major focus on women
and skincare products are
offered for girls as well.
STP analysis
There are three aspects in the STP analysis which are helps to analyse the products offer by
company will have good value to the specific group. Also, this will helps to find the target
audience and markets in which entrepreneur should focus.
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Segmentation- On the basis of demographic the firm target to the luxury customer
because they are more likely to focus on the quality over the quantity. Also, the luxury customer
will more helps to gain more profit (Baleanu, Raza and Ali, 2019). On the basis the company
will more focus on the women but some products are related to the skincare for unisex so men
are also targeting for the same. The geographic regions would be selected in order offering
products online from the website. Offline stores would be London because at that place the
competitions is slightly low.
Targeting- Natural Beauty will target the multi segments market so that it increases the
unique benefits to the different segments. The goal of the organization is to increase the market
sales and share. There will be separate product will be offered for men and women. According to
this strategy Natural beauty targeting for most profitable aspects such as size of the market that
helps to bring growths of the company. It is necessary to targets the market by considering all
the factors that can be affect the demand of the product.
Positioning- This strategy will helps to make positions ins the markets ins orders to more
focus ons the quality. The unique selling propositions is to good quality of organic products
which are helps to attract large numbers of customers. Also, to make the positions in the
competitive market will be helps to increase market share (Sathiyamoorthi and Devarajan,
2021). Also, there will be different strategy used by the company for making position in the
market such as online advertisement on Instagram are help to attracts large of customer. Regular
picture of product and its benefits will helps to attract more followers. On the basis of all this
approach it has been analysed that business will feasible.
Drawing on relevant frameworks and concepts, discuss your proposed business model and
explain how the new venture will work.
Key Partners
Suppliers
Retailers
Manufactures
Logistic
Key activities
Marketing
Production
Consumer
demand
Warehousing
Value
proposition
Good prices
High quality
Online buying
Safety
24/7 shopping
Customer
relationship
Self-service
Community
Brand awareness
Long term
relationship
Customer
segment
Women
Men
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experience (Ma,
Pu, and Wang,
2021)
Internet retailing
Key resources
Information
technology
Website
Digital marketing
Channels
Supermarket
Website
Amazon
Online shop
(Park, Seo and
Han, 2018)
Cost structure-
Cost of goods sold
Staff
Advertisement
Capital expenditure (Kaplan, Naori
and Raz, 2020)
Revenue stream
Online sale
Advertisement
Online sale
Financial income
B2B- The mains focus will be on customer that are target on the basis of gender and
geographical area. For the start-up this strategy wills work betters in order to attract large
number of customer. There wills be more focus on women so that they can expect high quality
products (Baleanu, Raza, and Ali, 2019).
Marketing mix
Product: the organization deliver the wide ranges of the product to the customer in order to
satisfy them and lead the market in an appropriate way. For delivering the right product to the
right customer the organisation determine the taste and preferences of the individual person.
Price: the organization will deliver the medium range of the product to the customers so each
and every potential customers of the organization able to afford the product of the company in
order to meet the demand and needs.
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Promotion: for the promotion of the product ans services of the company the organization will
utilize the digital platforms such as Facebook, Instagram, google, chrome, gmail, etc(Anjani,
Irham and Waluyati, 2018).
Place: the organization launch the product on the online platform in the international as well as
domestic market and make the availability of the online store at every place of the potential
customer.
Packaging: in order to increase the experience of the customer the organization will provide the
standard packing of the product and the services to attract the attention.
People: . Along with that for operating the function the organization will provide training and
development programme.
Physical evidences: The females or the women will be the potential customer of the
organization as they are more obsessed for the beauty as compare to the men. So the company
will provide the organic product to deliver the satisfying services to the customers.
Different strategies the entrepreneur will use for the welfare of the organization. All the plans of
action allow the organization to operate the function of the company in effective as well as
efficient manner at different stages. For instance, during the time of the growth the organization
will use digital marketing strategy in order to attract the customer from different market
segment.
The entrepreneur of the organisation determine the taste and preferences of the customers and
deliver the product as per the needs and wants in an appropriate manner. With the assistance of
the marketing the organization invite the customer to enjoy the services at minimum price.
Along with that the organization will hire the talented staff members that attract the large
numbers of the customers from different market. At the consolidation stage the organization
will decrease the prices of the product and services of the organization. At this stage the
organisation will focuses on improving the quality of the product. At this stage the organization
will remove all this product which are not valuable as per the customers preferences in order to
determine that the organization will conduct the research on the choices of the buyers (Saidani
and Sudiarditha, 2019). Moreover, at the underperformance the organisation will deliver the
discount as well as reward programme as the plans of action to the customers. The organization
will change the packaging of the product and deliver the attracting tag line that create unique
impression on the minds of the customer that they can consider while making the decision of
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buying any product and services. Along with that the organization compare the product of the
company with the commodities deliver by the competitor and try to deliver the uniqueness of
the product in an appropriate way.
Risk mitigation strategy
7

Risk assessment analysis is a long process that is used by organization in order to identify
future and present threat that can create hinder ace while launching new product in market.
Along with this, there are various internal and external factor that creates opportunity and threat
for company. So in order to analysis and manage them company has to make use of risk
management. It is defining as one of the most important part of project and ongoing process that
contributes in responding to the risk that may create hindrance for project. This process mainly
includes few steps such as risk identification, analysing, planning, controlling and monitoring
(Lin and et.al., 2021). However, there are two methods of analysing risk such as qualitative and
quantitative method. Along with this, natural beauty can make use of tools like KPI,
benchmarking in order to evaluate upcoming threat. Although, before launching new product in
market company should conduct market research so that it can know the factors that have
potential of affecting overall growth of firm.
Qualitative risk analysis involves identifying opportunities and threat and how likely it can
happen and their potential impact if it does so. It is consisting of three function such as
prioritizing risk according to its impact, evaluating the area of its impact as well as to improve
the understanding of project risks. Although the main aim of this analysis is to prioritize risk
based on their probity that will allow project manager to focus on risk and finding appropriate
treatment (Gul and AK, 2018). This helps in making effective risks plan and contingent budget
plan.
There are various types of tool that can be used by organization while doing qualitative
analysis. Although availability of resource and personal experience affect decision making of
projects. Probability Matrix is one of the standard method of evaluating threat and it can vary in
size. It provides a partial approach of ranking overall severity of risk by multiplying the
likelihood of risk occurrence against the impact of risk. However, by ranking risk consequence
the company can see main driver of risk severity (Metzler, von Gruelling-Müller and
Bellingrath,2019). Thus, this data helps in identifying suitable treatments to manage threats.
Thus, natural beauty can make a list of what are the potential threat that will affect performance
such as high competition which can create hindrance in launching new product. Along with this,
organization can also make use of Bow – tie analysis that will also help in evaluating threat and
reduce their impact on company. It is also known as practical approach in which risk is mitigated
and divide into two directions. On left company will list all potential cause of event and on right
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consequence of such risk. This method will help in evaluating risk quickly and making use of
appropriate treatments to each of the consequence. Thus, it will help natural beauty in handling
both side of risk mitigation such as probability as well as limiting their impact on company.
Moreover, if natural beauty will use qualitative risk in analysis method then it can easily
identify, analysis, risk treatment and monitoring threat easily. While on other hand, quantities
analysis is a numeric estimate of risk on company like schedule objectives and cost. Thus, it
helps in providing insight of company success in external market and to developed contingent
plan for company. Along with this, contribute in having idea of better overall project risk
analysis and to evaluate individual risk. Along with this, the numeric data allows company to
know about their performance in the market and helps in better decision-making. This type of
risk evaluation is done in project that require contingency reserve for budget, task in which upper
management wants detail about the performance of company. It is commonly used in large
organization that required quick decision-making (Crewmen and et.al., 2018). Moreover, tree
analysis tool is used in quantities analysis and this technique helps in making appropriate
decision. It acts as a decision support as it clearly display decisions and their potential outcomes,
cost and consequences. This technique helps in solving problems, finding appropriate
opportunity as well as making decision regarding cost management, organization strategy as well
as project selection. This model includes five steps in this model such as defining the problem
area so that proper decision making. Thus, natural beauty should make use of this approach so
that it can easily analysis risk as well as to deal with contingency.
CONCLUSION
It has been concluded that the reports concludes with the business on the basis of Natural
because that will offered all category of organic women products. Also, discussed concept of
new venture and then explored the relationship between entrepreneurship and innovation.
Moreover, Conducted a competitive analysis on the basis of Blooms natural and Awake
organics, the STP analysis done ons the basis of demographic approach and mass marketing.
Other framework will be used such as business mode in order to identify the purposes of new
venture. Further, marketing-mix has followed by the entrepreneur in order to evaluate the
strategies during the different phases such as start-up and period of growth consolidation and
underperformance. Lastly, discussed the qualitative and quantitative tools for the planning so that
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it wills helps for mitigate the risk. When the company followed the strategies for risk its wills be
helps for increasing marketings share.
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