Contemporary Issues in Strategy and Entrepreneurship

This report discusses the business concept, entrepreneurial marketing strategy, business risks, and strategic options for Affordable Construction Inc. in the UK. It also covers the resources needed for the business venture and financial plan for the housing project.

Contemporary
Issues in Strategy
and
Entrepreneurship

Table of Contents
INTRODUCTION................................................................................................3
MAIN BODY .....................................................................................................3
The business concept...............................................................................3
The entrepreneurial marketing strategy .................................................4
Business Risks and strategic options........................................................5
Business Operations.................................................................................6
Financial Plan...........................................................................................8
CONCLUSION..................................................................................................10
REFERENCE....................................................................................................11

INTRODUCTION
Business is defined as the legal entity which is engaged in different
industrial, commercial and professional activities with the objective of
attaining desirable profits. It is defined as the efforts as well as activities of
an individual and group members who are involve in producing goods and
services for profit purpose. There are various contemporary issues are faced
by the business, so business develop various strategies to deal with these
challenges in efficient manner (Lounsbury and Glynn, 2019). In this report a
new venture named Affordable construction Inc. is taken which is involved in
developing affordable houses in UK through implementing innovative ideas.
In this report business concept, entrepreneurial marketing strategy, business
risk and strategic options for removing them are mentioned. Furthermore,
resources that are required for business and plans to acquire these resources
as well as financial plan for housing project are covered in this project report.
MAIN BODY
The business concept
Outline ambitious and enterprising business venture for developing
affordable houses in the UK:
Concept of business: The business is based on the concept of
building houses in UK that have all digital aspects and modular equipment
that differentiates them from other organizations which are dealing in same
industry. The main objective of starting new venture is to provide unique and
modern houses to young and adult customers at affordable prices (Martinez
Dy, Martin and Marlow, 2018). Organization uses latest technologies such as
construction robots, modular construction equipment as well as drones that
enable organization to build luxurious and modular houses at affordable
prices because use of these things enable business to reduce cost and
enhance the efficiency of overall construction project.
Clearly highlight the uniqueness of business idea

Affordable construction Inc. in involved in the operations of building
houses. Organization build houses that have all digital aspects that enable
company to attract wide customers base. In these houses adjustable
furniture are established that cover less space which is the requirement of
modern generation. There are latest technologies and equipment such as
construction robots, drones and various modular construction equipment are
used by organization that reduces operational cost as well as enable
organization to complete construction work on time with great efficiency.
These ideas make houses unique than others and make differentiated
positioning in market.
The entrepreneurial marketing strategy
Identify a market segment and target audience of business:
Market segment is defined as the process of subdividing whole market
into small segments on the bases of their similar characteristics and
preferences. Affordable construction Inc. conducts market research and
divide market in smaller parts on the bases of behavioral and demographic
characteristics. Respective organization targets young and adult generation
of UK through providing them affordable houses with various facilities
(Miocevic and Morgan, 2018). Through research organization identifies
needs, demands and preferences of these target customers and develop
plan to build houses accordingly that enhances organizational brand value
and attract more customer base.
Value proposition:
Value proposition is defied as the promises of organization to to
deliver, communicate as well as acknowledge value to its customers. It is the
part of overall organizational marketing strategy. It facilitates business
through provide declaration of intend as well as statement that introduces
business brand to customers through telling them about their business
operations. There are various schemes are developed in the project that
supports the target audience to find house according to their demands

(Nambisan, 2017). As the houses that are build by organization have all
digital aspects that can fulfill requirements of modern generation.
Demonstrate the competitiveness of business venture:
In current business environment, various organizations are conducting
operations in similar line that enhances competitiveness for Affordable
construction Inc. that impacts its market share and profitability ratio. In UK
various constructions organizations such as Balfour Beatty Plc, Kier Group
Plc. Interserve Plc and various other organizations are conducting their
operations in same field that affect business performance in negative
manner.
Business Risks and strategic options
Potential challenges for starting, launching and running business
venture and plans to manage these challenges effectively:
There are various challenges are faced during the process of starting,
launching as well as running business that impacts overall efficiency and
effectiveness of business venture. These problems or challenges are
mentioned below:
Financial management: Finance plays important role in starting new
venture, if business income is increased than expenditure also increased. In
the process of staring and running business operations, Affordable
construction Inc. faces the challenge related to financial management.
Insufficiency of financial resources impacts business operations, for new
venture it is very hard to manage finance. In order to manage this challenge
respective organization takes help of financial consultancy firms to manage
the condition financial crisis.
Cyber security: In current digital age, Affordable construction Inc.
organization saves its information regarding technology and working process
online. So, cyber security is the greatest concern of business because
hackers can take advantages of business loophole within in system which is
installed in business, it impacts business operations in negative way. In order

to safeguard from this challenge, respective organization secure their online
data through implementing robust and military grade security system in
organization (Peters, Kallmuenzer, and Buhalis, 2019). Organization uses
virtual private network that restrict unauthorized access of business
information.
Finding suitable candidates: Acquiring appropriate candidates for
business operations is the most effective challenge in new business venture.
Affordable construction Inc. conducts suitable recruitment and selection
process to hire suitable candidates for defined job role.
Fallback plan given the challenges posed by the corona virus
(COVID-19), economic crisis, Brexit etc:
Affordable construction Inc. organization develops various plans to face
the situations such as Covid-19, Brexit and other economic crisis that
impacts business performance and functionality. Organization create reserve
funds that can be used during the economic crisis and provide fun business
to run operations in efficient manner. Respective organization develops
provides training to local employees that enable them to perform business
functions properly as well as maintains effective relationship with local
suppliers to get quality material on time that help business to deal with the
challenge of Brexit.
Business Operations
Resources needed for business venture and planning to acquire
these resources:
In order to run business operations various resources are required that
enables Affordable construction Inc. to attain defined objectives of building
affordable houses in UK. Some important resources are mentioned below:
Human resources: Workforce is the essential resource for Affordable
construction Inc, that is important for turning projects into reality. Respective
organization requires human resource at different level of business such as
estimator. Supervisor, quantity surveyor, architect, engineer and

construction worker. Organization conducts effective promotions for relative
job role and acquire them through effective process of recruitment and
selection.
Equipment: Affordable construction Inc. requires heavy equipment to
build houses at affordable prices. As the selection of equipment depend on
time as well as cost of project. In organization bulldozers, excavators,
trenchers and other equipment are used to complete projects on time.
Respective organization maintains effective relation with suppliers to acquire
them on time.
Material and financial resources: Affordable construction Inc,
requires material such as wood, metals, bricks, cement, concrete and various
other to complete the project of house building. On the other hand, financial
resources are essential for purchasing material and run business operations
in efficient manner (Sassmannshausen and Volkmann, 2018). Respective
organization estimate requirement of material and financial resources that is
required in future to complete projects on time.
Plan for executing the development of these houses:
Affordable construction Inc, follows systematic planning to develop
houses in UK on time with great efficiency. First of all organization develop
construction plan that includes all information related to project. Then select
technology that would be used in construction and allocate the work among
employees through clearly communicating them the method and information
of construction. After that organization define precedence relationship
among all activities so they can be done in systematic manner. Organization
also estimates the duration that would be taken by each activity to ensure
that project will complete on time. After that resources are estimated that
perform determined activities than performance of workforce is measured to
attain desirable objectives.
Identified the location housing project:
Greater Manchester which is situated in London is the place where
Affordable construction Inc start its housing projects because there is

availability of material and skilled employees that enable business to
complete their projects on time with great efficiency (Zhang and Cueto,
2017).
Financial Plan
Start-up capital is defined as the money that is raised by Affordable
construction Inc, for the purpose of meeting all initial cost requirements.
Startup capital of respective organization is around 2,50,000 £ that is acquire
by organization from financial institutes and through issuing shares.
Cash Flow Statement
For the year ended 31st March, 2020
Particulars Amoun
t
(£)
Cash flow from operating activities
Net profit before tax and extraordinary items 10,000
(+) Adjustment for
Interest on Debentures (10% of 2,00,000) 20,000
Loss on the sale of machinery 30,000 50,000
Operating profit before working capital changes 60,000
(-) Increase in Current assets and decrease
in current liabilities
Increase in stock -40,000
Increase in debtors -50,000 -90,000
Net cash used in operating activities -30,000
Cash flow from investing activities
Proceeds from sale of fixed assets 50,000
sPurchase of fixed assets -
100,00

0
Net cash used in investing activities 50,000
Cash flow from financing activities
Proceeds from issue of equity shares 60,000
proceeds from issue of preferences shares 40,000
Redemption of debentures -20,000
Dividend paid -10,000
Interest paid on debentures -20,000
Net cash flow from financing activities 50,000
Net increase in cash and cash equivalents 70,000
(+) Cash and cash equivalents at the
beginning of period
2,60,00
0
Cash and cash equivalents at the end of period
3,30,00
0

Through this financial projection it is clear that proposed business plan
is scalable as business provides positive outflows. The business ideas is
feasible and facilitates business to sustain in business environment for
longer-period of time.
There are various negative items in cash flow statement that shows
that organisation spend money on purchasing fixed assets and stock
whereas positive items indicates that business sale some assets and issue
equity as well as preferences share in market. These positive as well as
negative cash flows are the cause that fluctuates overall outcome in cash
flow statement.
CONCLUSION
As per above report, it can be concluded that businesses are started
with unique ideas that have value for customers. New startups develop
various marketing strategies to spread awareness regarding organisational
products and services and attract large customer base. There are various
challenges are faced by the organisation in starting and running business, to
overcome these challenges business develop strategies that enhances
sustainability in competitive environment.

REFERENCE
Book and journal
Lounsbury, M. and Glynn, M. A., 2019. Cultural entrepreneurship: A new
agenda for the study of entrepreneurial processes and possibilities.
Cambridge University Press.
Martinez Dy, A., Martin, L. and Marlow, S., 2018. Emancipation through digital
entrepreneurship? A critical realist analysis. Organization, 25(5),
pp.585-608.
Miocevic, D. and Morgan, R.E., 2018. Operational capabilities and
entrepreneurial opportunities in emerging market firms: Explaining
exporting SME growth. International Marketing Review.
Nambisan, S., 2017. Digital entrepreneurship: Toward a digital technology
perspective of entrepreneurship. Entrepreneurship theory and
practice, 41(6), pp.1029-1055.
Peters, M., Kallmuenzer, A. and Buhalis, D., 2019. Hospitality entrepreneurs
managing quality of life and business growth. Current Issues in
Tourism, 22(16), pp.2014-2033.
Sassmannshausen, S.P. and Volkmann, C., 2018. The scientometrics of social
entrepreneurship and its establishment as an academic field. Journal
of Small Business Management, 56(2), pp.251-273.
Zhang, S.X. and Cueto, J., 2017. The study of bias in
entrepreneurship. Entrepreneurship theory and Practice, 41(3),
pp.419-454.