Business Development Strategy Report: Opportunity and Threat Analysis

This report examines the business development strategies of Leung So Kee Umbrella Factory, a Hong Kong-based manufacturer and retailer. It explores the identification of opportunities and threats using a TOWS matrix, highlighting the importance of aligning marketing, finance, HR, and operations. The report details the creation of an opportunities matrix to support strategy development, utilizing primary and secondary research to define market size, and identifying both tangible and intangible resources needed for a development strategy. It also covers the development of a business model, sales measures, and the preparation of a pitch to secure support and finance, ultimately leading to improvements in the development strategy. The report emphasizes the significance of product differentiation and trend analysis within the context of the umbrella manufacturing industry.

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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1. Identification of a response to a future opportunity or threat...............................................3
1.2. Identification of the business planning links between marketing, finance, HR and
operations.....................................................................................................................................5
Task 2...............................................................................................................................................6
2.1. Production of an ‘opportunities matrix’ that supports strategy development and responses
to external threats.........................................................................................................................6
2.2. Use of primary and secondary research to define the size of an opportunity.......................7
2.3. Identification of both tangible and intangible resources that exist and those required to
support a development strategy....................................................................................................8
Task 3...............................................................................................................................................9
3.1. Development of a business model to support a development strategy.................................9
3.2. Production of sales measures and key success factors........................................................10
3.3. Preparation and delivering of a pitch to raise support and finance for a development
strategy.......................................................................................................................................12
3.4. Improvements on the development strategy.......................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................15
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Introduction
Business development is one of the vital responsibilities that need to be performed by a firm on a
regular basis to enhance its business operations. The report represented in the understated
segments tries to explore the significance of acquiring knowledge and skills for researching a
market and then effectively planning a developmental strategy for an opportunity that would
favor the company in terms of diverse benefits. The report has been segmented into diverse
sections. Each of the section provides an illustrative view regarding the diverse conditions that is
required for market research and development of a business strategy. For an in detailed
comprehensive study, an organisation has been selected. Leung So Kee Umbrella Factory has
been on e of the leading manufacturing and retailers of umbrella in Hong Kong. The company
has been established in the year 1885 and operates under the manufacturing industry of Hong
Kong. With this selected organisation the business development process concept could be well
understood and it even would help in demonstrating an elaborative study in relation to the
business development strategy (Lund et al. 2017).
Task 1
1.1. Identification of a response to a future opportunity or threat
Leung So Kee Umbrella Factory being one of the famous umbrella manufacturer and retailer of
Hong Kong itself signifies that the organisation had been operating under the manufacturing
industry of the Hong Kong by well exploiting its strengths and opportunities and mitigating its
threats and weaknesses. The company by the use of strategic implementation has been able to
maintain its viability in the existing market. By the use of an analytical tool in this section the
identification, generation of strategies for the major threats and opportunities of the
manufacturing firm would be represented. The TOWS matrix has been the selected analytical
tool that would favor the above stated operations. A well-organized matrix trades off between the
internal and external factors. Based on these factors the tool tries to selects and formulates
strategies. With the use of this tool, the selected organisation would be able to decide upon its
future ways. The leading umbrella manufacturing company would be able to develop a strategies
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from beforehand and this would in responding to the future threat or opportunity in an effective
manner. The subjective approach of the matrix makes an organization like Leung So Kee
Umbrella Factory to comprehend the significance of a future threat or opportunity that play a
vital role in influencing the business development process (Blue et al. 2014). The response
identification for future threats or opportunities by the use of TOWS matrix is as follows:
Internal Factors Strengths
 Product differentiation
 Quality
 Unique
Weaknesses
 Commercialization and
promotion
 Buying difficulty
 Specify of product
External Factors
Opportunities
 New Fashion Trends
 Developments in R&D
 Security, Health and
comfort are three main
concerning issues
SO Strategies
The determined organisation
by the use of its product
differentiation strategy trace
the latest trends and develop
trendy products
WO Strategies
By improved Research and
Development technique the
company could mitigate the
impact of new competitors
Threats
 Access or facility to
but the umbrella at any
place
 Entrance of new
competitors
 People’s rejection to
the product
ST Strategies
With quality and unique
number of diverse umbrella
the company would be reduce
the people rejection to the
product and increase its retail
sales that would thereby
increase its manufacturing
rates
WT Strategies
For easy access to buy the
umbrella the company must
increase the number of its
stores and even make a online
presence so that they buy their
desired umbrella through the
online portal
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1.2. Identification of the business planning links between marketing, finance, HR and
operations.
In concern to the new business opportunity that the teams of the Leung So Kee Umbrella Factory
have been, presenting in the form a new product line requires an alignment of the business
operation of the firm with the business planning activities. Some of the major key areas that
needs to demonstrate a close association are marketing, Finances, Hr and business operations.
All of these determined organizational departments play a great role in influencing the business
development strategy of the manufacturing company. Effective marketing strategies and plans
must be developed for the new product line that would be in the form of innovative and trendy
umbrella. These marketing strategies are developed only when an in detailed analysis of the
internal and external market of the concerned company have been performed. Therefore for
development of innovative and trendy umbrella for the desired market segment. One of the initial
steps of business planning activities is determining the market in which the company operates
under so that the key areas could be improved along with this the customer requirements could
also be acquire. Based upon which the new product line would be developed by Leung So Kee
Umbrella Factory to meet up the demands of the consumers. In terms of finances, the company
has to develop a predetermined budget for the manufacturing of the new product line (Zhan and
Zeng, 2015).
The business planning even involves a section that deals with the preparation of financial
activities and standards that would be followed by the research and development and the
manufacturing teams for the desired product. These financial planning are developed based upon
financial stratus of the concerned company that is to what extent the firm would be able to make
investments in the determined product line which is marked as business opportunity. According
to (Lund et al. 2017) human resources are one of the major assets of a company. A company by
proper exploitation of its human resources in a positive manner could attain the desired
organizational objectives. However, in concern to Leung So Kee Umbrella Factory’s new
products development is directly correlated to the performance of its human resources.
Therefore, the effective management of the human resources also plays a vital role in creating an
impact upon the business development process for the concerned product line of the selected
organisation. Business operations even have to be executed in a format that has well sequence or
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rather a proper link with the business development planning; only then, the opportunity would
favor the firm (Hansing and Orozco, 2014)
Task 2
2.1. Production of an ‘opportunities matrix’ that supports strategy development and
responses to external threats
The desires of the Leung So Kee Umbrella Factory of undertaking a new business opportunity by
developing innovative umbrella that would gain the manufacturing organisation a new income
stream within its existing business involves both opportunities and threats to the firm. The
company with this nee developmental strategy would however be able to use its opportunities in
a manner that reduce the impact of the threats. Therefore, in order to determine the major
opportunities of the selected firm that would not only support the strategy development but
would also be able to respond to the external threats as well, to gain greater amount of
profitability. The opportunity matrix is one of the significant analytical tools used to determine
the major opportunities of a firm that would favor the company in attaining its desired strategic
goals and objectives. By the effective use of this opportunity matrix Leung So Kee Umbrella
Factory would be able to comprehend its major external threats and develop strategies that would
help in resolving those threats. Based upon the factors of the opportunity matrix the selected
company would design plans that create an advantageous condition in the future. The future
scenario in relation to the new product line development would be anticipated and this would
allow the firm to minimize the external threats
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Success
Probability
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 Manufacturing of umbrellas
following latest fashion trends
 Product diversification
 developments in the research and
developments section of the
organisation
 Development of storm proof and
virtually unbreakable umbrellas
From the above stated opportunity matrix it could be stated that the opportunities determined in
the matrix have the ability to not only gain the company huge profitability but also help in
resolving the external threats that the company faces in the form of customer rejection, new
competitors etc. The opportunities determined have also been directly linked to the strategic
developments of the firm this would thereby indeed support the overall business development
process of the firm. The strategy development of the organisation mainly revolved around the
new business opportunity into which the company had been concentrating. The product
diversification and the trend following strategy of the firm for the development of the latest
umbrella would not only favor the company in attaining huge profit status but would also gain
the company a competitive advantage over others in the existing manufacturing industry (Li et
al. 2013).
2.2. Use of primary and secondary research to define the size of an opportunity
Size of an opportunity according to (Hansing and Orozco, 2014) is a vital metric for determining
the potentiality of an opportunity for an early business developmental stage of the concerned
company. An organisation invests in to an opportunity that would favor the company growth,
development and financial status. An excellent and profitable opportunity is large enough to
support a leading organisation like the Leung So Kee Umbrella Factory. In this section, the
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Att
rac
tiv
en
ess
H
I
G
H
L
O
W

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product differentiation has been the opted opportunity for which the size would be determined by
the help of primary and secondary research.
Primary Research:
In order to determine the size of product diversification both primary and secondary research
methods were applied. Among which the primary research method personal interviews with the
Research and developments managers of the concerned firm along with the other business
development team members of the Leung So Kee Umbrella Factory. The interview question
most involved questions in relation to the concept of product differentiation that has been
adapted by the determined firm for new income stream. The data collected from these interview
sessions are then analyzed by the use of different analytical methods. The interview sessions all
the included individuals without any hesitation or ethical issues designed questions in way that
all of the questions are answerable. The data collected by the use of relativity instruments are
effectively analyzed and then represented with clarity. The interviews would undertake a wide
range of aspects that would undertaken the concept of product diversification
Secondary Research
The secondary research would also include collection and analysis of the data. The data
regarding the product diversification as an opportunity would be collected from diverse journals,
books and business magazines. The help of reliability instrument to determine the relevance of
the collected data with the selected opportunity would then evaluate the collected information.
All the latest journals and books would be taken into consideration to determine the size of the
product diversification so that all the latest trends in relation to the concept could be evaluated.
Along with the secondary data collection and analysis the ethical considerations would also
undertaken to mitigate ethical issues or risks. Authorization for the data collection process from
the respective journal articles and books would be undertaken effectively. The reliability
instrument used for the analytical purpose the outcomes of the determined opportunity could be
generalized. In addition to this the consistency of the collected data with the size of determined
opportunity could be depicted (Andrews, 2017)
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2.3. Identification of both tangible and intangible resources that exist and those required to
support a development strategy
According to (Li et al. 2013) resources refers to an element that helps in the productivity of an
organisation and helps the firm to support an activity by which the advantageous desired
outcome could be attained. Twio types of resouvces that is tangible and intangible assestrs
support a bossiness organization majorly. These two major assets are represented in the balance
sheet of an organisation. Both of these determined resources develop the strategic abilities of the
firm to support the development strategies or undertake an activity that would help the firm. In
this section the tangible and intangible resources of the determined manufacturing and those that
would be required by the firm for the new product line would be illustrated. These resources
would help the form by supporting the developmental strategy
Tangible resources
The tangible resources are determined to those assets that can be defined in physical terms or
rather have a physical makeup. The tangible assets are mostly purchased t5herefore they are
valued in terms of cost. The existing tangible resources of Leung So Kee Umbrella Factory are
factory-building, manufacturing machines, product raw materials, manufacturing equipments,
Work force, etc. The resources that would be required in tangible firms all are mostly available
with the firm as it is a leading manufacturing company of Hong Kong. The company by the help
of more modernized automotive machineries and equipments can increase the rate of its new
product line. This would in turn support the business development strategy of the firm that it has
determined for the in form of innovative and unique umbrellas (Salnikova, 2013)
Intangible resources
These resources act as source of future economic benefits for a firm. The intangible resources in
comparison to the tangible resources do not represent themselves in physical form but greatly
influence the revenues and profits of the company. The major intangible resources of Leung So
Kee Umbrella Factory are the brand value of the company. Its strategic implication regarding its
product development and marketing of products,. In addition to this, the patent rights of the firm
on manufacturing umbrella that have a two year warranty fir storm proof umbrella. All these are
the values that have acted as a strong existing intangible resources of the concerned firm
however with more effective research and development strategies and more patent rights would
help the firm the reputable status at which the other competitors would look as a benchmark. In
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addition to this, the resources would even support the developments strategy of the new product
line of the determined firm
Task 3
3.1. Development of a business model to support a development strategy
The successful business could be carried out through the successful development of a business
model. It is important for all the organization to implement various planning and strategy to
develop the business model. The successive business model depends to acquire high-value
consumers. The organization needs to focus on the offering of significant values on the
consumers at the time of carrying out of business. The Leung So Kee Umbrella Factory provides
the better services or products at the time of developing with the maximum amount of margin.
The business model helps to maintain the market position in the country of Hong Kong. A good
business model helps to use the entire resources in such a manner that assist to improve the
position of a market and adding extra features upon the consumers. The organization needs to
focus on the potential competitors at the time of controlling the entire network of distribution
(Abrahamsson et al. 2017).
There lies with various technologies that provide the appropriate changes in the strategy for the
development of a high-risk product. The development strategy provides the unique planning to
develop the business model to carry out the manufacturing of umbrella. This helps to meet the
potential customers and helps to meet the demand of new consumers existing in the market. The
business model includes the funding the entire business that helps the organization to meet the
set objectives. The funding of business model lies with the costing in the startup, operating
capital, overhead costing and personnel costing. The business model provides the rationale for
the creation of firm at the time of delivering a better value to the customers (Klettner et al. 2014).
The important business strategy needs to be focused on the organization of Leung So Kee
Umbrella Factory at the time of describing the formal as well as informal descriptions to meet
the core aspects of business. The business model implements the abstract representation of the
business carried out by the manufacturing organization of umbrella. The Leung So Kee Umbrella
Factory is the famous organization in retailer as well as the manufacturer of an umbrella in the
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country of Hong Kong. The organization provides a strong business model planning with the
developed strategy for establishing the steel-frame umbrellas and guarantee. From the business
model, better products could be implemented in the market to meet the demand of consumers.
The organization could able to provide the better arrangements that help to meet the set strategic
goals and objectives (Wirtz et al. 2016).
3.2. Production of sales measures and key success factors
The sales performance is the most important factor in the production of products for the
company of Leung So Kee Umbrella Factory. The entire production of sales can be measured by
following:
i. Existing of customers
The number of customers is the vital things in the straightforward measuring the production of
sales. The sole sources of capital are obtained from the Leung So Kee Umbrella Factory. The e-
commerce process helps to measure the potential consumers existing in business.
ii. Retail conversion rate
The retail conversion rate provides the measurement of the product sales. It can be measured by
the conversion ratio that helps to track the customer existing in the market. The consumer
conversion ration lies with the number of transactions divided by the traffic of consumer
multiply with hundred (Sekaran and Bougie, 2016).
iii. Average sales
The average sales provide the measurement of sales produced by the organization based on the
purchase value. The average sales value can be determined by the total number of sales values
divided by the number of transactions carried by the Leung So Kee Umbrella Factory. This
provides the unsophisticated technology in the company to measure the required production of
sales on the manufactured umbrella.
iv. Gross margin
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The gross margin helps to measure the production of sales that has been focused by the
organization. It lies with the differences between costing and revenue at the time of accounting
on other cost. The selling of product price can be determined with the acquiring the price of
product with the gross margin (Parmenter, 2015).
The key success factors provide the important marketing areas at the time of developing the
business. It helps to make a design, planning and implementation of the process in which the
services or products could be presented to the consumers to increase the maximum sales. All the
business helps to identify the key success factors that completely depend on the services
provided by the Leung So Kee Umbrella Factory. The business revenue could be improved from
the ongoing sales that deliver the main success factors. The main purpose of the key success
factors lies in the inspiration of sales and marketing in the business status using incentives
(Grant, 2016).
3.3. Preparation and delivering of a pitch to raise support and finance for a development
strategy
The business development could be improved through the preparation and delivering a pitch to
raise the maximum support. This pitch helps the organization Leung So Kee Umbrella Factory to
increase the selling ideas of the manufactured products. The management needs to prepare the
entire delivery of a pitch in such a manner that provides the maximum benefits to yields
maximum amount of profit. The management needs to deliver the entire speech in front of the
employee (Hepburn et al. 2014).
The practice provides business in such a manner that helps to increase the potential that makes
the changing effects in business. The most important ideas could arise from the preparation and
deliver of a pitch at the time of raising the maximum amount of support and provides a better
strategy in the financial aspects. The investors become more influenced on the pitch generated by
the management at the selling of products and deliver the betters services among the customers.
The valuable asset could be obtained from the better way of preparation and deliver a pitch to get
support from the internal as well as external stakeholders (Parmenter, 2015).
Preparation and delivering of a pitch to finance an organization developmental process involves
key consideration to the financial status of the firm. Once an organisation is financial stable then
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only it can support the firm in the developmental strategies. However, in concern to Leung So
Kee Umbrella Factory the company could involve its diverse stakeholders in investing in these
new product line developments. By depicting them, the benefit of this business development
strategy the firm could make formal and strategic approach to its vital stakeholders that would
invariably by evaluation all the vital factors of the development strategy could invest in the new
opportunity formulated by the firm.
3.4. Improvements on the development strategy
On taking feedbacks on the development strategy, it could be observed that there are areas that
could be improved for enhancement of the desired objectives in regards to which the
developmental strategy had been developed for. On amending the improvements, the determined
manufacturing company would gain beneficial aspects in a more effective manner than before.
The developmental strategy for the new product line of Leung So Kee Umbrella Factory could
be well improvised by the implementation of the suggestive improvements. The improvements
that have been discussed in the section are mostly based on the feedbacks that had been obtained
from the strategy development prior to this. The suggestive improvements are as follows
Resources
The umbrella company Leung So Kee Umbrella Factory although have been effective using its
resources well for its maintained its viability in the manufacturing market of Hong Kong.
However, the firm by making effective exploitation of some of its intangible resources would
help the firm in its developmental strategy. Rather in more precise terms if the company is able
to concept some of its values as its resources then that would also favor the firm in its new
business developmental strategy. The company by using its business values that mainly revolves
around innovation, quality and unique as its resource in development of trendy umbrella. Then
would thereby lead to profitable outcomes (Abrahamsson et al. 2017)
Communication
The company in its business development teams if establishes an open communication system
then team members involved in the new business opportunity would be able to represent their
views m opinions and strategies in a more viable and approachable manner. This would increase
the chance of having more number innovative ideas that could improve the product development
process. According to (Parmenter, 2015) communication is one of the tools that upon well used
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by the firm can achieve all the desired objectives in an effortless manner. Poor communication
often leads to failure and development of risks. Therefore, by improvement of the
communication system of business development teams the company of Leung So Kee Umbrella
Factory could support its desired business development strategy
Leadership
Another area that needed improvement was of leadership style imbibed in the selected
manufacturing organisation of Hong Kong. The firm by improvement in its leadership style
would be able to lead its developmental teams in a more effective manner and support its
existing current developmental strategy in relation to the new product line
Conclusion
On drawing conclusion, it could be stated that business development strategy are one of the key
opportunistic concepts that has the ability to enhance the existing business operations of a firm.
As the name, itself reflects development therefore the strategies are formulized and implemented
with the key outcome of gaining benefits in terms of finances, new customers etc. However
before the business development strategy it is essential that the company is able to identify its
key opportunities that would favor the company in attaining its determined future objectives or
goals. The stared manufacturing company of Hong Kong with its bussiness developmet teams
had developed an opportunity of incorporating a new product line in the market. Therefore the
various business development teams of the selected organization had involved themselves in
inculcating a strategy that would support this opportunity of new product line. Upon undergoing
the various sections of the business development strategy it could be observed that a range of
considerations have to undertaken for providing shape to an determined opportunity along with
mitigatinmg the external threats and risks associated with it
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