Enterprise & Innovation Assignment Sample

RESEARCH
REPORT

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
PESTEL Analysis............................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFRENCES...................................................................................................................................7
.........................................................................................................................................................7

INTRODUCTION
Entrepreneur is the individual who create new business and take several risk for gaining
future advantages. Although, entrepreneur mainly seen as an innovator as well as source of new
ideas. In this research project interview is conducted by Amalia for analysing overall aspects
related to entrepreneur i.e., Viorel who is owner of car wash business situated within parking of
Tesco. In this report, Innovation and entrepreneur theory will going to be discuss which will help
in analysing how they help in establishing business. Along with this PESTEL will going to
discuss for examining each and every factor along with their impact on respective business.
MAIN BODY
Diffusion innovation theory - This theory was developed by E.M. Rogers in the year
1962 and it is one of the oldest social science theory. Diffusion innovation theory assist a
business in understanding how buyer will adopt as well as get engage with new product and
technologies over time (Nemutanzhela and Iyamu, 2015). Business firm utilise respective theory
while launching new product or services or for introducing their present offerings within new
market. It is not simultaneous when new ideas, product and behaviour adopted. As per research
it has been founded that, individual who adopt innovation easily have different characteristics in
comparison of those who adopt later. Thus, Viorel in bringing innovative business i.e., car wash
in the parking of Tesco as respective entrepreneur implement diffusion theory within their
working. It have mainly five categories through which innovative idea will go after bringing it
within market. Explanation of these are as follows :-
 Innovators – When car wash business was established within market the first individual
person who use this service is innovators. In simple terms, innovators are small group of
people who want to be first for trying car wash services as well as they are taking risk
willingly. Such exclusive users set trend and help in becoming product popular as well as
increasing sales.
 Early Adopters – They are same as innovators, because early adopters are like the one
who want to try new things as well as they don't get afraid of investing in new things. But
early adopter group is large in comparison of innovators and they also have much
knowledge related to car wash business. As they have proper knowledge because of that
such person play important role in mouth publicity and result in increasing sale.
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 Early majority – It is the group of people who love trends but they wait and see
everything related to car wash business before using their services (Dibra, 2015). by this
group people services purchase is in droves and car was services become popular as well
as cause landslide within demand.
 Late majority – This group lags behind and they use services of car was business when
several other people already utilise and its popularity is decreasing within market. Reason
behind not adopting services early is that they are not confident about car was business.
As late majority group don't want to make bad purchases as well within late majority
stage product sold frequently.
 Laggards – This group also lags behind consciously or unconsciously within trend and
they don't like changes as well as any type of innovation. It is not till that product is not
much in demand and when car was services leave market laggards group want to
purchase that product (Oturakci and Yuregir, 2018). In simple term it can be said that
respective group wait for lowered sale and then make it purchase.
Thus, innovation theory help respective entrepreneur in establishing their car wash
business within the parking of Tesco.
Entrepreneurship Theory - There are various theories of entrepreneurship which helps
entrepreneur to guide and start new business in competitive market (Alvarez and Barney, 2017).
Here, the entrepreneur is starting new business where he will be providing car washing facilities
to all the consumers who are parking their cars at TESCO parking area. The theory adopted by
respective entrepreneur is described below:
Behaviour Theory of Entrepreneurship: This theory was developed by John Kunkel
where assumes that development of society and business depends on past and current economic
social aspiration. Here, entrepreneur is starting totally new business for their consumers after
analysing market and behaviour of consumers. For developing such theory, there are different
decomposition such as behaviour of entrepreneur is influenced through various factors of
demand composition, opportunity of competition is decided through different factors like labour
market, training opportunities, production methods and labour composition is operated from
traditional approach, aspiration of life, livelihood. After analysis of such factors, it is very
important for entrepreneur to make changes in their business. This depends different
combination of circumstances where creation is difficult but destruction is easy. For
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establishment of new venture, entrepreneur should be initiator, challenger acceptor, possess
effective monitoring, looking for new opportunity, information seeker and others.
Innovation theory of entrepreneurship: Innovation theory of entrepreneurship is very
much important to bring new ideas and concepts that helps to lead new products and services
into market place (McKenny And et.al., 2017). This concept based on that entrepreneur is born
with the willingness to establish the industry and give new products and services to the
marketplace by reap important benefits. In context of car wash company that their new concept
that they provide washing facility to cars when people park them. For that they have to plan and
bring out desire to do something new. With the help of creativity and experiences to bing new
skills and competencies organisation can be bring innovation in their works and activities to
remain always competitive in marketplace. Behind that the main objective is to enlarge business
opportunities by search of raw material and new sources to give best satisfaction level to
consumers. With the help of innovation theories organisation give opportunity to personnel to
bring innovative ideas and thoughts that proved beneficial in organisational development and
enhancement by apply various kinds of ideas and thoughts to remain always competitive in
marketplace (Lortie and Castogiovanni, 2015). So in context of car wash company it proved
beneficial to think in innovative way and build best products.
PESTEL Analysis
In order to use PESTEL analysis there are numerous factors which influence business
operations and functions in a positive or negative manner. Basically PESTEL stands for Political,
Economical, Environmental, Social, Technological, Environmental and Legal. According to
applying innovative things by using this analysis business can get lots of profit and able to
manage their overall functions within the competitive environment of business. Along with this
an entrepreneur can easily increase their business growth by using these sort of analysis in their
managing functions. On the basis of this they can changes their policies and able to implements
on new things through which they can fulfil consumers demand in a appropriate manner.
PESTLE research is very helpful for each and every business aspects so that they can effectively
adapt new trends in their business for making good impression in front of them. Herein, from this
respective assignment an entrepreneur has been developed effective and creative idea that is Car
Wash concept by using PESTEL analysis in a right manner. It is very much effective and
essential aspect for all businesses so that they can make huge customers by giving them better
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attraction towards their services in an effective way. There are some factors in relation with
entrepreneur's innovative idea, given below:
Political factor: This factor refers to the overall government intervenes within the
economy as well as in a particular company (Alvarez and Barney, 2017). It influences overall
business functions and operations which includes in governmental policies, tax, law, labour,
stability and instability or trade restrictions. Moreover, it also effect the infrastructure of health
regulation in order to make attractiveness for gaining potential market in a perfect way. In
regards with an entrepreneur as he has been developed innovative thing such as car wash which
is the very good idea by this they entrepreneur has received lots of good feedback and able to
manage their work accordingly. For this achievement he has used this political factor by this he
has good knowledge to implements on new ideas within the competitive environment for gaining
good results effectively.
Economical factor: These factors refers to the performance of business within the
economy which generally includes exchange rates, interest rates, inflation rates and
unemployment rates and have some indirect and direct impact in related with income of
employees in the company. In reference with present topic entrepreneur has applied this theory
on their work in order to get good profit for gaining competitive advantages in a perfect way. By
applied this theory he has analysed that car wash concept is very by which people can get better
facility regards with their vehicle and able to give better feedback for this company effectively.
Social factor: It refers to the different kind of characteristics, norms, values, belief,
customs value and so on all these factors are operated by an organization. In context with this
respective business entrepreneur of this business car wash they made their strategies according to
the local culture so that people can easily understand that policy and able to take this effective
services from this car wash organization. On the basis of this entrepreneur is able to take good
response by giving better facilities to employees and people in an effective manner.
Technological factor: This is very attractive factor and based on unique and innovative
technologies by which people can get satisfaction towards the work. These factors can affect
industries operations and management functions in both ways favourably and unfavourably. On
the basis of this respected term companies can apply new and innovative ideas on their business
plan and able to give effective changes in business. In regards with car wash company
entrepreneur bring this innovative idea by applying new techniques on their car washing system
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so that people get influence at higher level and company can easily achieve their goals in a
positive way.
Legal factor: This factor is based on the different kind of government laws and help to
develop new idea by including different laws like employment laws, discrimination law , copy
right law, penetration laws and so on. In the present scenario all of the business industries are
applying this factor for making their overall laws to gain better success in a perfect way. In
regards with, car wash as it is good service by which people get good facility every where. For
this an entrepreneur had applied this factor for running their business successfully.
Environmental factor: These factors generally based on the present situation of business
in this entrepreneurs have different kind sources like raw materials, carbon footprint target which
is made by government. On the other side environment is also based on the climate condition so
that in this company can get affect negatively because during the changing weather they can get
loss in their work and not able to attain goals in a perfect way (Lortie and Castogiovanni, 2015).
In context with car wash company entrepreneur applied this factor on their working condition by
which they can manage their work accordingly and able to achieve their targeted goals by
providing effective services in an appropriate manner.
Alvarez, S. A. and Barney, J. B., 2017
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CONCLUSION
According to the above respective assignment it has been evaluated that innovations is
the best to make any business effective in front of other people by utilising different kind of
functions and objectives in a particular manner. In this respective assignment entrepreneur has
launched their business that is Car Wash which is very unique concept to give good facility to
customers in a perfect way. By using PESTEL analysis they can make their organisation or
business functions better to reach their goals perfectly. With the help of this analysis they made
effective and unique business strategies for betterment of future. On the other side motivation
theories was very helpful for this car wash agency because by this they are able to get effective
innovative strategies and make them effectively. Therefore, innovative ideas always bring
attractiveness within the business work in order to make good facility to work.
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REFRENCES
Books and Journal
Nemutanzhela, P. and Iyamu, T., 2015, July. Theory of diffusion of innovation for analysis in
information systems studies. In 2015 Science and Information Conference (SAI)(pp.
603-608). IEEE.
Dibra, M., 2015. Rogers theory on diffusion of innovation-the most appropriate theoretical model
in the study of factors influencing the integration of sustainability in tourism
businesses. Procedia-Social and Behavioral Sciences. 195. pp.1453-1462.
Oturakci, M. and Yuregir, O. H., 2018. New approach to Rogers’ innovation characteristics and
comparative implementation study. Journal of Engineering and Technology
Management. 47. pp.53-67.
Alvarez, S. A. and Barney, J. B., 2017. Resource‐based theory and the entrepreneurial
firm. Strategic entrepreneurship: Creating a new mindset, pp.87-105.
McKenny, A. F. And et.al., 2017. How should crowdfunding research evolve? A survey of the
entrepreneurship theory and practice editorial board. Entrepreneurship Theory and
Practice, 41(2), pp.291-304.
Lortie, J. and Castogiovanni, G., 2015. The theory of planned behavior in entrepreneurship
research: what we know and future directions. International Entrepreneurship and
Management Journal, 11(4), pp.935-957.
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