Entrepreneurship and Business Development: Feasibility Study of Royal Shoes

ENTREPRENEURSHIP
AND BUSINESS
DEVELOPMENT

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
Preliminary evaluation of new venture in regard to innovation and creativity............................3
STP analysis-...............................................................................................................................6
Osterwalder's business model canvass-.......................................................................................6
Porter's value chain-.....................................................................................................................7
Business and marketing strategies...............................................................................................9
Financial techniques and decision-making models to assess and mitigate the risk...................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship development refers to the process of strengthening the knowledge in
respect to the management and expansion of business venture by the entrepreneur considering
the risk associated with it. In simple words, it is a method to identify and create new business
leaders with a new business concept supporting through a unique innovation (Leonidou and
et.al., 2020). The report will discuss a feasibility study of a start up business named “Royal
Shoes” which are being manufactured with the help of plastic waste materials. This will explain
clearly explain the relationship between entrepreneurship and creativity in business management.
The case study will further review the market by analysing the macro & micro level to pinpoint
the competitiveness of the industry and with an STP analysis which will assist to figure out the
vision & mission of the venture. The project will evaluate the working of the model with the aid
of Osterwalder's business model canvass and Porter's value chain. It will critically discuss the
marketing and business strategies used for growth, consolidation and performance by exploring
the common mistakes. The project will describe the techniques which can be utilized to
recognize the alternative commercial approaches that help to access and mitigate the financial
planning strategies.
Preliminary evaluation of new venture in regard to innovation and creativity
Entrepreneurship is the act of creation which requires an ability to figure out an
opportunity to shape a unique idea into a new business venture by entrepreneur's plan, capital
and resources. In the given report, it would discuss the concept behind the Royal Shoes which
would implement the innovative technique to manufacture the shoes. The material use in
producing the shoes would be the USP of this company. The fabric of the shoes would not be
made of either leather or rubber rather it includes the recycled components of plastic wastes
which supercede the place of traditional fabric resulting in preventing the ecology of the planet
and protecting the forests, animals and soil. Further, it would analyse the feasibility of the
venture with the help of feasibility analysis which assess the concept of the business on three
grounds:
 Organisational feasibility analysis: This would mainly focus on the resource needs
and management capabilities to physically bring the idea into real (Dixit and Raj,
2018). In this it would critically rank the ability into different non-financial resources
such as assessing the founder's passion along with the professional and educational

background, possibility of registering intellectual property rights, availability of office
space, labour quality etc. This analysis would count on the resources part which plays
an important role while implementing the plan.
 Financial feasibility analysis: This would investigate the venture estimated revenue
and expenses with the help of cash flow statements. It should estimate the sales
projection by targeting the actual customer's and multiplying it with the average
revenue of an individual customer. It is based on the twelve month, three-year or five-
year P&L projection. Another criteria for financial feasibility is to achieving the
breakeven point which means there is neither loss nor profit. The revenue earned by
the Royal Shoes is going to cover the costs incurred.
 Market feasibility analysis: This test enables to figure out the competitors, target
customers and users in the footwear industry by examining the interest towards the
product by focusing on the targetted market. The above relevant information would
help how to be better competitive in the given market. The market could be further
divided in terms of structure, trends, growth, size and sales. This could help in deciding
the total available market (TAM) which would help to figure out the potential users
who are ready to purchase the footwear being made up of plastic wastage. TAM would
further assist to know the portion of the market that would attract to purchase it and is
called as serviceable available market (SAM).
It is clearly visible that creativity and innovation unlocks the opportunity which allows an
entrepreneur to thrive in an ever-changing world. The vision behind the formation of Royal
Shoes start up is concerting a unique idea which positively impact on the individuals and
creating working opportunities by upcycling plastic wastage contributing to the planet as well as
the economy (Bărbulescu and et.al., 2021). The impacts could be measured by the UN's
Sustainable Development Goals showing that the entrepreneurs are the engines of creativity and
innovation in the given industry or market.
Competitive analysis-
Royal Shoes is striving to introduce its new product which is “shoes made of waste
plastic”. There are a number of competitors in the market who may affect the business so with
this regard the analysis is made as-