Innovation and Entrepreneurship: A Business Plan for an Advanced Car

This report focuses on the concept of innovation and entrepreneurship, with a detailed business plan for an advanced car. It covers market research, target customers, marketing strategies, human resources, and operations.

Managing
Entrepreneurship,
Innovation & Creativity

EXECUTIVE SUMMARY
Present report is based upon the concept of innovation and entrepreneurship. There are
three different tasks in it. First one is based upon personal detail of the writer. Second task is
based upon the theme of social entrepreneurship and the last task is focused with establishment
of a new business with innovative concept. There are various elements that are required to be
focused while designing business plan. These are objective, operations, marketing, research,
target customers, funding etc.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
Table of Contents.............................................................................................................................3
TASK 1............................................................................................................................................1
My story.......................................................................................................................................1
TASK 2............................................................................................................................................1
Research questions.......................................................................................................................1
TASK 3............................................................................................................................................3
Introduction..................................................................................................................................3
Objectives....................................................................................................................................4
Market research...........................................................................................................................4
Target market / customer.............................................................................................................5
Marketing.....................................................................................................................................5
Human resource...........................................................................................................................6
Operations – Using the business model canvas...........................................................................6
Legal issues..................................................................................................................................7
Financial......................................................................................................................................8
Risks, contingency and exit strategies.........................................................................................8
REFERENCES..............................................................................................................................10

TASK 1
My story
I am a small-town person who belong to Romania and for a person like me it is very
difficult to become an entrepreneur. I am not from an entrepreneur family may father is a simple
person and my mother is a housewife. Both of them take care of me and my siblings so that we
can accomplish all our career goals. I am mainly focused with establishing my own business so
that I can help my family to live a better life. In order to get some extra money, I started to work
with me studies so that I can help my parents and help them to escape from poverty. When I was
18, I passed the high school and lived in several countries and it helped me to determine the
major requirements of people in current era. Currently I am living in UK and worked in several
automotive entities while completing the studies of business management in the University of
Sunderland. It made me realise that I have ability to start my own business as my entrepreneurial
skills are very strong. As I have work experience of working in automotive industry and I have
creative mind I am planning to develop an innovative idea of a car which will be highly
advanced and filled with various innovative features. I have various attributes and skills that
could be used by me while establishing my own business. These are creative thinking, effective
leadership, proper communication, advanced knowledge of technological development and latest
trends. All of them will be beneficial for me to establish my own business and attain growth in
future.
TASK 2
Research questions
The theme which is selected to answer this part of the report is social entrepreneurship. It
can be defined as an approach which is focused by individuals to find a solution for the cultural,
social and environmental issues so that a successful business could be established. It is mainly
focused with introduction of a business idea which is a solution for all the issues that are faced
by society nowadays (Aquino, Lück and Schänzel, 2018). A person who is having ability to
solve the community-based problems is known as social entrepreneur. Main purpose of them is
to fund a business idea which will benefit the society and help to deal with all the issues that are
faced by it.
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According to Dwivedi and Weerawardena, (2018), there are various types of social
entrepreneurship these are community project, non-profit organisation, cooperative businesses,
social enterprise, social purpose business etc. All of them are mainly focused with finding
solution for social, cultural or environmental issues so that standard of living of individuals could
be improved. While developing a business concept it will be very important for all the social
entrepreneurs to make sure that they are addressing a global issue so that they can provide
benefits to society. Such types of individuals motivate youth to initiate for societal development
and bring positive changes at social level. They are focused with addressing the global problems
such as poverty, unemployment, increasing pollution, inadequate education, inefficient
governance, gender inequality, health facilities and policies etc.
In views of Gabriel and Drayton, (2016) social entrepreneurship is the process of carrying
out business for social cause so that the factors that are affecting standard of living of all the
individuals could be dealt systematically. With the help of all the businesses that are established
for the purpose of welfare of society are focused with improvement in the life of people who are
connected with the societal development. Main objective of such businesses is not to generate
profits but help the world to deal with all the issues. Main goal of social entrepreneurs is to
achieve large scale social change and focused on the ecological change so that they can support
the development of society while earning money. Apart from this, all the individuals who are
establishing business for social cause pay attention towards innovation so that a new business
with an innovative idea could be established and solution for the societal issues could be figured
out.
One of the main motivations which can help to establish a social enterprise is providing
employment. It is one of the major challenges that are affecting the global economy. The social
entrepreneurs establish their business to make sure that they provide employment to the
individuals who are not able to get a job because of very high competition at global level. It is
one of the main motivations which help the social entrepreneurs to establish their own business
(Motivations for social entrepreneurs, 2013).
Another motivation which guides individuals to establish social enterprise is support to
disadvantaged group. Social entrepreneurs launch a business with innovative concept so that they
can support the society to deal with all the challenges that are faced by the individuals living in
it. The businesses that are focused with development of society are introduced with the concept
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of creating such products or services that are able to fulfil societal needs or requirements of the
community. Fulfilling social needs is also a motivator which is taken in to consideration by the
social entrepreneurs while establishing their own business (Kraus, Ribeiro-Soriano and
Schüssler, 2018).
According to Mthembu and Barnard, (2019), bringing change in the community is also a
motivation which inspires social entrepreneurs to introduce an innovative business concept in the
market which will help to respond the issues at cultural or social level. All the social enterprises
which are planning to launch themselves in the market wish to make changes in standard of
living of individuals so that they can deal with all the all the global issues. It is focused by them
as it can help to establish the business successfully and the items that will be introduced with
innovation will also help to attract large number of individuals.
All the social entrepreneurs get motivated with different factors and it inspire them to
introduce an innovative business idea and establish the business successfully. One of the factors
which are focused by all the social entrepreneurs is making sure that their business idea is able to
deal with any of the social challenge which is affecting the society. Apart from this, they also
make sure that they are contributing in the development of a well-developed economy. All the
individuals planning to establish social enterprise try to formulate the innovative business
concept so that a creative idea could be used to respond the societal issues. They are working for
welfare of others rather than generating profits (Peris-Ortiz, Llera and Rueda-Armengot, 2017).
One of the main, objective of social enterprises is to provide such products or services to the
society which can help to improve their standard of living and ignore the problems that are faced
by them. Unemployment, pollution, inadequate education, gender inequality etc. are some of the
main problems that are focused by the social entrepreneurs while launching their business in the
market. They want that all these problems should be resolved as due to this the issue of poverty
is increasing world-wide.
TASK 3
Introduction
Business plan is a type of detailed document which covers detailed information of the
business idea and essential elements of it such as mission, visions, objectives etc. It is very
important for all the new businesses to make sure that they are developing a business plan as it
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can help to summarise the key points of business. This business plan is focused with the idea of a
new car which will be launched with touch sensor and other innovative features such as no harm
to environment. The owners have decided that the car will be launched in London at initial level
and then it will be introduced in other areas of UK if it will be able to attain success in London.
The idea of the new car is highly innovative and it will be very advanced as it will be operated
with the help of finger prints of the owners or the driver (Ratten and Ferreira, 2016). The main
feature of it is that finger prints of five individuals could be registered with it and all the
individuals can operate it. If the owners want to register more individuals then it would be
customised up to 10 users. Thee idea of the new car is very innovative and it will also not have
any type of negative impact upon the environment because its engine will not create any harmful
substance for the environment.
Objectives
Objective: The main objective of the new car is to introduce itself in the market
successfully and capture a larger market area in upcoming five years and generate profits of at
least 200000 in first year with increment of 20% every year.
Mission: Mission of the new car venture is to attract larger number of customers and
work for welfare of environment by ignoring any type of negative impact of it on the
environment.
Vision: The new car venture will be established with the vision of becoming the market
leader in upcoming years by satisfying the clients with the best services and the legal authorities
with the positive impacts upon societal development.
Market research
While establishing a business it is very important for all the organisations to conduct
market research. It can help to analyse the market situations which can help to formulate
effective strategies for successful business. The new car venture will also be required to conduct
the market research and for this purpose primary and secondary mode will be required.
Discussion of them is as follows:
Primary research: It is mainly focused with collecting information from the market with
the help of various medias. If it will be used by the new car venture then the managers could use
questionnaire, survey, personal interview etc. methods could be used. It can help the enterprise to
determine the views and thoughts about the new business idea (Satar, John and Siraj, 2016).
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Secondary research: When already gathered information is used to formulate business
decisions then it is known as secondary research. The new car venture can use it to determine the
level of competition in the market. There are various luxury car sellers in automotive industry
and to gather information them it could eb used. Some of the main competitors for the new
venture will be Jaguar, Range Rover, Tesla etc. In order to sustain in the market, it will be very
important for the new business to make sure that effective strategies by keeping all of them in
mind are formulated.
Target market / customer
All the buyers are the customers for an organisation and it is very important for the
entities to make sure that the item which is sold to them is able to meet their needs. As the new
car venture will be launching an innovative in the London so it will be very important for it to
identify the target market. The features of it are very advanced and the concept of it is innovative
so the price of car will be very high because of its luxury nature. The target market for it will be
the upper class of the customers as for middle and lower-class individuals it is not affordable.
Most of the individuals are loyal to their current seller and in order to attract them to inspire to
buy the new car it will be very important for the car vendor to aware them about the new
business idea (Silveira and Zilber, 2017). Apart from this, the targeted customers will be between
the age of 25 to 50 as these are the individuals who are focused with latest technology and use
the advanced gadgets.
Marketing
Marketing is the process of spreading awareness regarding the products that are sold by
an organisation. With the help of it, the information about the item could be shared with the
targeted clients. As a new car will be introduced by a new car vendor with innovative technology
which is touch sensor so it will be very important to market the business. One of the best
platforms for marketing the new business is social media. As the customer group which will be
targeted by the car venture is between 25 to 50 so social media marketing will be the best option
for it because all the individuals of this age group use social media. Some of the main websites
which could eb used to market the business are Facebook, Instagram, Pinterest, Twitter etc. By
making efforts to market the products the organisation will be able to meet its long-term
objectives.
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Human resource
All the individuals who are working within an organisation are known as human resource
as they are responsible to carry out all the operational activities properly. For the new car
venture, it will be very important to hire skilled workforce so that it can meet all its future goals
(Surie, 2017). Some of the main members of the entity are as follows:
General manager: Emily Watson
Design Director: Edison Adewole
Branding design director: Michael Cole
Human resource director: Diana Pista
Marketing director: Samuel Shah
Web developer: Samet Manole
Operations – Using the business model canvas
All the activities that are performed by an organisation to reach all its predetermine goals
are known as operations. In order to analyse different operations of the new car venture business
model canvas is used. It is a combination of nine different elements. It provides information of
business activities. The model is as follows:
Key partners
 Employees
 Directors
 Suppliers
 Marketers
 Design
director
 Managers
Key activities
 Marketing
 Selling
 Promotions
 Advertising
Value
proposition
 The car
with
touch
sensor
and
innovat
ive
feature
s will
be sold
to the
clients.
Customer
relationship
 Online
bookings
 Good
service
 After sales
service
Customer segment
 Individuals
between the
age of 25 to
50.
 Upper class
customers
Key resources
 Human
resource
 Monetary
resources
 Raw material
Channels
 Physical
stores
 Website
Cost structure Revenue stream
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 Cost of recruitment
 Cost of raw material
 Cost of marketing
 Cost of advertisement
 Salaries and wages
 Online bookings
 Sales from physical stores
Legal issues
While establishing a new business different types of issues could be faced by the entities.
As the new car venture will be launching a new car with touch sensor and innovative features so
it will be very important for the owners to make sure that they are following all the rules and
regulations imposed by the government. If they will not eb able to follow the legislation then it
may leave negative impact upon the functionality of business. Some of the legal issues which
could be faced by the new car venture are as follows:
Legal interference in business because of ignorance of governmental policy: It is one
of the main issues which could be faced by the new car venture while establishing business in
London. If the organisation will not be able to comply with all the rules and regulations which
are imposed by the government then it will be very difficult to sustain in the market as it will
result in legal interferences (Urban and Kujinga, 2017). It may also create the issue of weak
market image because when government will take strict actions against the entity then it will be
very difficult for it to sustain in the market.
License related issue: For all the new ventures it is very important to take license from
the government to carry out operations. If a business entity will not be able to take it and operate
business without it then it may result in legal actions against the business. As the new car venture
will be launching its innovative car with touch sensor so it will be very important for it to take
license from the government. The process of getting a license is very difficult because the cars is
required to be approved by all the technical authorities. This problem could be faced by the
organisation in future while launching the new car in the market.
Financial
It is very important for all the new businesses to have sufficient funding to carry out
operations in future. If it will not be able to generate funds for business then it will be very
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difficult to sustain in the market. Some of the specific sources of funds which could be focused
by the owner of new car venture are as follows:
Bank loan: It is one of the common sources of funding which is used by most of the new
ventures. It could also be used to introduce the new innovative car in the market. The borrower
will be required to provide a collateral security to the bank as safety so that if in future the
borrower will get fail in making payment then bank can recover it for the asset. Apart from this,
interest is also required to be paid on a fixed rate to the bank on monthly basis (Wu, Zhuo and
Wu, 2017).
Personal savings: When an entrepreneur wish to establish own business then it is the
common source of funding which could be used. It can also be used by the owner of new car
venture and the main benefit of it will be that the owner will not be required to pay any type of
interest or provide an asset as the security to the bank.
Risks, contingency and exit strategies
When a new business is established then there are various types of risks and
contingencies which could be faced. Some of them which may take place for new car venture are
as follows:
 One of the main risks for the business is lack of funding for the business which will affect
the execution of operations.
 Another risk which may leave negative impact upon the business of new car venture will
be market image as it is not easy to establish it easily.
 The main contingency that can affect new car venture will be the higher level of
competition.
In case of facing failure, the car venture may adopt any of the exit strategies that are
discussed below:
Selling the business in open market: When the business will not be able to attain
success, the owner can sale it to another business in the market to ignore the situation of
becoming insolvent (Zebryte and Jorquera, 2017).
Merger: It is also an exit strategy which could be adopted by the car venture when it will
not eb able to sustain in the market. It can merge with another entity and sale all its rights to that
organisation.
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REFERENCES
Books and Journals:
Aquino, R. S., Lück, M. and Schänzel, H. A., 2018. A conceptual framework of tourism social
entrepreneurship for sustainable community development. Journal of Hospitality and
Tourism Management. 37. pp.23-32.
Dwivedi, A. and Weerawardena, J., 2018. Conceptualizing and operationalizing the social
entrepreneurship construct. Journal of Business research. 86. pp.32-40.
Gabriel, P. and Drayton, B., 2016. Social entrepreneurship and innovation: International case
studies and practice. Kogan Page Publishers.
Kraus, S., Ribeiro-Soriano, D. and Schüssler, M., 2018. Fuzzy-set qualitative comparative
analysis (fsQCA) in entrepreneurship and innovation research–the rise of a
method. International Entrepreneurship and Management Journal. 14(1). pp.15-33.
Mthembu, A. and Barnard, B., 2019. Social Entrepreneurship: Objectives, innovation,
implementation and impact on entrepreneurship. Innovation, Implementation and
Impact on Entrepreneurship (February 27. 2019).
Peris-Ortiz, M., Llera, J. J. A. and Rueda-Armengot, C., 2017. Entrepreneurship and Innovation
in a Revolutionary Educational Model: École, 42. In Social entrepreneurship in non-
profit and profit sectors (pp. 85-97). Springer, Cham.
Ratten, V. and Ferreira, J. J. eds., 2016. Sport entrepreneurship and innovation. Taylor &
Francis.
Satar, M. S., John, S. and Siraj, S., 2016. Use of marketing in social enterprises. International
Journal of Social Entrepreneurship and Innovation. 4(1). pp.16-24.
Silveira, F. F. and Zilber, S. N., 2017. Is social innovation about innovation? A bibliometric
study identifying the main authors, citations and co-citations over 20
years. International Journal of Entrepreneurship and Innovation Management. 21(6).
pp.459-484.
Surie, G., 2017. Creating the innovation ecosystem for renewable energy via social
entrepreneurship: Insights from India. Technological Forecasting and Social
Change. 121. pp.184-195.
Urban, B. and Kujinga, L., 2017. The institutional environment and social entrepreneurship
intentions. International Journal of Entrepreneurial Behavior & Research.
Wu, J., Zhuo, S. and Wu, Z., 2017. National innovation system, social entrepreneurship, and
rural economic growth in China. Technological Forecasting and Social Change. 121.
pp.238-250.
Zebryte, I. and Jorquera, H., 2017. Chilean tourism sector “B Corporations”: evidence of social
entrepreneurship and innovation. International Journal of Entrepreneurial Behavior &
Research.
Online
Motivations for social entrepreneurs. 2013. [Online]. Available through:
< https://www.northeastern.edu/sei/2013/02/what-motivates-the-best-social-
entrepreneurs/>
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