Entrepreneurship and Business Development: Feasibility Study of Royal Shoes

This report discusses entrepreneurship and business development through a feasibility study of Royal Shoes, a start-up that manufactures shoes from plastic waste materials. It covers preliminary evaluation, STP analysis, Osterwalder's business model canvas, Porter's value chain, business and marketing strategies, and financial techniques. The report also includes a competitive analysis, target market, and pricing strategies.

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-

DC shoes company Levi's plc Royal shoes
Products
and
goodwill.
Footwear, Apparel,
snowboards etc.
It is well diversified
organization so having
higher opportunity to get
bigger market share.
Jeans and sort of other
clothing’s items, footwear.
The organization is offering
clothes too so can use its
brand name to sell out
footwear.
Footwear. So the entity
is planning to come up
with single product
which somehow makes
opportunity gape in the
market.
Current
status
The organization is
owned by Quicksilver and
having great market share.
Having owns subsidiaries
in many other nations.
Now it would be its first
entrepreneurial step.
Revenue Approximately 10 Million
USD.
5.764 Billion USD for the
year 2021 (Kaplan, Naori and
Raz, 2020)
The budgeted revenues
of the organization
would be around 2000 to
30000 Pounds.
Market
speciality
The organization is
known for the lavish
products it offers to its
clients which is mainly
targeting high income
customers.
Levis is known for range of
purposes such as its great
clothes and footwear too.
The organization is offering
vintage products.
The organization is
striving to offer good
quality products on
cheaper prices. Further
the products are
environment friendly
which makes it special in
the market.
Form the competitive analysis above it can be summarized that the organization is having
sort of favourable circumstances which will make it thrive. Royal shoes will be taking
competitive advantages due to its position (Brunner and Wolfartsberger, 2020) Firstly, this is
introducing a unique product which is not being offered by many organizations in the market.
Despite the fact, the organization will be offering it on reasonable prices to the young age group
so it will further help it to pave way for the new product.

STP analysis-
To analyse the market and knowing the factors which may affect or influence the entrepreneurial
activities STP analysis is being carried out.
components
Segmentation The market would be segmented using sort of basis. The key segments are
based on age, gender, income, geography etc.
The main segments are people with lower middle income and lower
income, at the same time people of young age, old age can be furthered
segments.
Targeting With this regard, British boys ranging between 16-24 would be targeted.
As it was found that in the year 2021 as per the research of Mintel around
95% British males bought shoes, so they are offering great market to the
organization (Shah, Sirts and Pfahl, 2019)
The Young boys and girls will buy the products since they are the people
who are ready to accept changes and innovation.
Positioning The vision of business is “We see the world using best out of waste” and
mission is “to reach every person of the nation”
So with this regard “Cost leadership” strategy would be followed in order
to make itself well positioned in the market.
Osterwalder's business model canvass-
The model is used to describe various value proposition elements of the business organization
which are as-
Key partners
The key
partners of the
business
would be
suppliers. at
Key activities
The key activities
will be order
taking, producing
products,
marketing, and
Value
Propositions
The product is
helpful for those
customers who are
looking for higher
Customer
Relationships
The business will
practise a well-
structured
Customer
Customer
segments
The customers
are segmented on
the basis of age
are segregated

the same time
the
procurement
will be carried
out with only
them.
then after selling
receiving
feedbacks.
Key Resources
The most salient
resources are
human resources.
at the same time
finance and
business idea can
be classified as
key resources.
quality on cheaper
costs. the vision
an mission already
stated that the
business is
looking to hike
value of life.
Relationship
Model.
Channels
There will be
two models.
online stores and
physical stores
are those
channels.
and the same will
be followed.
Cost Structure
The cost will be mainly consisting
equipment installation cost. on the
other hands there are some other
elements such as manufacturing
cost, human resource management
cost, social media or other
marketing cost etc.
Revenue streams
The shoes will be made available 10% cheaper than the
key competitors in the market. so Transactional revenue
model will be followed, at the same time Direct sales is
another model which constitutes around 70-80% of overall
revenues of the organization (Kaur and Charan, 2018)
So form the evaluation made above it can be summarized that the organization will be making
great profit by the venture it is planning. since the plan is fully fledged and having sort of
capability to revert positive to the organization.
Porter's value chain-
The model is used to describe external elements which may affect organizational performance.
The elements are as-

Primary activities- these are the activities which are having their great prominence to initiate
the business and carrying out key operations. with this respect these areas are to be given
attention (Anderson, 2018)
1. Inbound logistics- a well-structured logistic system would be followed consists receiving,
storing, distributing of shoes.
2. Operations- the transformation activities will be carried out.
3. Outbound logistics- collection, storage, system of distribution will be made. the
organization will distribute form its stores.
4. Marketing and sales- Social media marketing is supposed to be used and sales would be
taking place form both social media and stores sources.
5. Service- after sales services would be given.
Supportive activities- these are the secondary activities which supports operations and decide
the way forwards.
1. Procurement- the row material will be purchased form the local suppliers.
2. Human Resource Management- There will be a separate department in Royal Shoes,
whose responsibility is to manage human resources.

3. Technological development- The social media practises would be hiked. Search Engine
optimization is also accentuated in order to make strong and wide reach to customers.
4. Infrastructure- there would be a well-articulated infrastructure for the organization. for
example- key areas like Accounting, legal, general management, administration, etc. are
to be taken into consideration.
Business and marketing strategies
The Royal shoes company can adopt the various strategies for the growth and
development of business and become success in the competitive market place. Business and
marketing strategies are important for the enterprise to become success in marketplace. The
Royal company can use the digital marketing strategies (Abbasi, Abbas and Shabbir, 2022). The
company will use the four marketing strategies and marketing mix for estimate the planning for
products and services of company that include the price, place, promotion and products.
 Products: The company will manufacture the products from the waste materials of
plastics into the shoes. The company will also offer the clothes products for the men and
women as well as fulfil the demands of customers in the competitive market.
 Price: The price of products and services will be lowest and affordable for the customers
but the company will establish the strategies for business is they will sales products
according to the standards of customers if they are reach then the product price will be
high and offer the high price products while offer to affordable price of shoes to another
customers (Husin and Zamil, 2020).
 Place: the company will target the urban and rural areas both because the company
manufacture the best quality shoes which can use by the urban and rural area.
 Promotion: the company will promote the products and services with the helps of
advertising and communication process. It will also include the sales, public relations as
well as direct marketing to accomplish the particular marketing goals. The promotion mix
is the important part of the marketing strategies which helps in achieve the entrepreneur
goals (Pal, Sethi and Pal, 2020).
The company will use the many marketing strategies for become success in the future and
satisfied the customers. The company adopt the digital marketing strategies and pricing strategies
for target the customers.

The digital marketing strategies for the shoes products is best as well as effective to build
the brand for the shoes market. The royal shoes company will tell the stories of products and sell
that how they manufacture the products from the plastic waste and why. It will also sell the
products with the stories. The digital marketing strategies helps in set the customers base
effectively with the email marketing, create blogs, etc. it will help in attract the customers and
save the money and time of shoes company (Rautela and Agrawal, 2020). It involves the
branding strategies, distribution strategies, position strategies, etc. The pricing strategies to gain
more customers with the affordable pricing for products and generate the more customers
because every one can afford to purchase the products as well as the low price attract the
customers and success the goal of business.
The entrepreneur avoids the various methods in starting new business which are most
important such as impatience, the company failure in plan, the company also forgets about the
customers which are most important in business, lacking the sales ability in the competitive
marketplace, they take lightly to the competitors of the company, etc. that all are mistakes which
are face by the company and it will not help in growth and development of organization in the
future.
The rivalry strategies is consisted the various strategies such as defensive strategy, re-
marketing strategy, differentiate strategy, etc. for the quality of products and services from the
another company. Growth strategies consists the strategies for the new market, existing markets
and diversification of growth for the products and services of Royal shoes company as well as
adopt the strategies for become success in the shoe's company (Ahuja and Alavi, 2022). It will
also help in gain the competitive advantages in the shoes' industry. The consolidation strategies
involves the pruning, retrenchments and divestment for consider the marketing strategies as well
as divert the business and its core competencies.
Strategies used for underperformance by the entrepreneur in regard to the Royal Shoes
company is by defining the present & future goals with the help of outside resources so to create
a picture of the organisation relating to the market trends. Defining goals is not the exact solution
rather prioritize them in well-defined manner which would assist to create a plan. The most
suitable strategy is to identify the rationale behind the poor performance and addressing the issue
immediately by recognizing the strength's. The quoted company performance could be enhanced

by attracting new generations through social media platforms and encouraging others to shift on
the sustainable products.
Financial techniques and decision-making models to assess and mitigate the risk
The financial techniques to manage the risk with the process of risk management to
analyse and identification of uncertainty in the investment decision (Appelo, 2019). The Royal
company will use the cash budget and cost benefit analysis to assess and manage the risk of
business.
Cash budget July August September
Cash receipts
Beginning cash
balance
£49500 £18000 £18000
Add cash receipts 194000 214000 254600
Total cash available 243500 232000 272600
Cash payments
For inventory purchase 172526 147230 181152
For S&A expenses 61500 67560 68432
For interest expenses 0
Total budget 234026
Financing activities
surplus 9474
borrowing 8526
Ending cash
payments
£18000 £18000 £18000

Cost benefits analysis
The cost benefits analysis of the Royal shoes company is helps in the systematic method
of quantifying and then it helps in comparing the total costs to the total expected rewards
(Ikpesu, Vincent and Dakare, 2019).
Cost benefits 8% discounts 6% discount 4% discount
Total cost revenue -£1330.00 -£1440.00 -£1538.00
Transport benefits £1319.00 £2057.00 £3277.00
Increased productivity
value
£3333.00 £4720.00 £6879.00
Net cost benefit £3322.00 £5337.00 £8618.00
Benefit cost ratio 3.5 4.7 6.6
The decision-making model will also use by the Royal shoes company which helps in
define the problems and identify the solution of problems as well as generate the possible
solutions alternative list and then evaluate and determine the best solution for the company
which will be face problem by company. There are three types of models in the decision-making
process such as rational models, administrative rationality model and retrospective decision-
making models. This model helps in achieve the success in the future and estimate the growth
and development of company.
 Rational model: the rational model is also known as the classic model and it is he first
attempts to know the decision-making process of the Royal shoes company (Ekka and
Jayapandian, 2022). It gave the various features such as clear objective, clear problems,
not biased in recognize the problems , etc.
 Administrative model: it is also known as the bounded rationality model am it involves
the achievements of goals. It helps in understand the problems which helps in take action
to reach the objectives and goals.
 Retrospective decision models: this model focus on the decision maker to make choice
and justify the decisions. The company use the decision-making models to identify the

recruitments and choice process as well as find the some common errors in the process of
decision-making.
CONCLUSION
The report has been concluded with a new business plan of the footwear company named
“Royal Shoes”. Competitiveness was analysed with the DC shoes company and Levi's Plc
resulted in an upper hand due to the unique product being offered in the market with a reasonable
price range. It had evaluated a venture and had performed the feasibility analysis to understand
the nature of macro-environmental market by appreciating the innovation & creativity role
resulting in figuring out that this concept is good or bad for future growth. The case study has
been discussed the quoted company segment, target & the position and being focused on the cost
leadership strategy. Further, various value proposition elements of the company are being
described such as values, customer's relationship, key partners, cost structure, revenue streams
and key activities which resulted in making great profit. The project would discuss the primary
and supportive activities of the Porter's value chain which affect the organisational performance.
The Royal Shoes company has been adopted the marketing mix, digital marketing, defensive, re-
marketing and differentiate strategies to become successful in the competitive market. Report has
been summarized with the cash budget and cost benefit analysis financial techniques to identify
and generate the possible solutions for estimating the growth of the company with the help of
rational, administrative and retrospective decision models.

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