Entrepreneurship: Analyzing Biodegradable Packaging with Frameworks

This report delves into the realm of entrepreneurship by examining biodegradable packaging through various analytical lenses. It begins by exploring different sources of entrepreneurship, highlighting unexpected events, incongruities, process needs, industry and market structures, demographics, changes in perception, and new knowledge. The report then applies McKinsey's 7S framework to assess biodegradable packaging, focusing on strategy, structure, systems, shared values, skills, style, and staff. A SWOT analysis identifies the strengths, weaknesses, opportunities, and threats associated with the biodegradable packaging industry. Finally, a PESTLE analysis evaluates the political, economic, social, technological, environmental, and legal factors influencing the business. The report aims to provide a comprehensive understanding of the entrepreneurial aspects and market dynamics surrounding biodegradable packaging.

UNIT 27

Table of Contents
INTRODUCTION...........................................................................................................................3
Question 1....................................................................................................................................3
Question 2....................................................................................................................................6
Question 3....................................................................................................................................7
Question 4....................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship is defined as converting the vision into the reality. This project will
discuss the different sources of entrepreneurship. Further the McKinsey 7 S model implemented
in respect to Biodegradable packaging. SWOT Analysis would be conducted for the same and in
the end PESTLE Analysis will be done in this project.
Question 1
Entrepreneurship is about to convert the vision into a successful commercial idea. This is
a process adopted in business where the individual aim to deliver an idea into a successful
business venture. Entrepreneurship is delivered with the support of certain sources that would
empower the stakeholder to approach the whole idea in the best way possible.
The unexpected
This is a source for the entrepreneur where the unexpected event occur that could further
deliver the success in favour of the venture. This is an event that unexpectedly occur in front of
the entrepreneur which lead to generate some kind of idea. This event result into the generation
of the successful business idea. Many time entrepreneur get the inspiration and idea from these
unexpected situation result into the better growth and development of the whole vision of the
entrepreneur. This is a situation derive in the business where the entrepreneur get the clear vision
to approach the business operations (Barone and et.al., 2021). The nature of the successful
entrepreneur is to observe the situation and the requirement which further result into generation
of the successful idea. Most of the successful idea are generated out of this source which further
result into better growth and development of the entrepreneurship. The unexpected situation
always result into the best suitable mode of understanding the vision that aim to deliver the
respective stakeholder.
Pros:
 This allows the entrepreneur to achieve innovative ideas.
Cons:
 This creates risk.
Incongruities

This is a sour e that result into the discrepancy between what should be and the actual
situation. This is a basic factor that allow the entrepreneur to result into generating the successful
business idea. This is a source that derive out of the expectations of the entrepreneur and the
actual practical situation (Prunau, 2021). The difference between expectation and the reality is
resulted into the generation of this idea. This is very successful source of entrepreneurship which
allow the stakeholder to derive the best possible result.
Pros:
 This source eliminates the gape between expectation and reality.
Cons:
 It requires huge resources.
Process need
This entrepreneurial source is generated out of the weak ling in the process This is
entertained by observing the weak aspect associated with the process. The possible development
that seek in the processes adopted to deliver the operation. The role of this source is very
effective that allow the stakeholder to approach the whole practice in the best way possible.
Process need is among the most effective source to generate the potential idea as an entrepreneur.
Being an entrepreneur this become the massive source to make transformation in business and
generate the potential idea and solution to achieve success in the market.
Pros:
 This improves the processes.
Cons:
 It improves the cost of production.
Industry and market structure
The industry and market are always a continuous process and practice adopted to
channelize the entrepreneurial source. This involves assessing the practical situation in market ad
generate the potential idea (Rao, 2021). This is very effective mode of innovation and
transformation to support the business. This source involves introducing the suitable change to
improve the ability and capacity of the market to progress.
Pros:
 Improve the ability of market to deliver the services.
Cons:

 Studying market is very time-consuming process.
Demographics
The change in demographics are become the ultimate basis to deliver innovation. This
source allows the entrepreneur to address the changing need and requirement of the people. This
is very significant part of the entrepreneurial journey where the changes are anal;ysed and
introduce to meet the specific need and demand of the market (Suh and et.al., 2019). In the
current situation where the need and wants of the customer are changing constantly due to the
innovation and technological development this source become active in the market to deliver the
entrepreneurial business idea.
Pros:
 It provides the greater growth opportunity.
Cons:
 The need of demographics keep on changing.
Changes in perception, meaning and mood
Changes in perception, meaning and mood of the people become the ultimate source of
entrepreneurial business idea. This involves addressing the changing nature of the customer in
market and apparently introduce new aspect of change. This is a massive source of
entrepreneurial business practice to delegate the best suitable practices to deliver the business
operations.
Pros:
 It supports the entrepreneur to improve living standard of people.
Cons:
 Hard to convince customer for buying products of company.
New knowledge
Entrepreneur always gain the new knowledge and modify the existing knowledge and
understanding of the stakeholder. This would allow the stakeholder to grab the best potential
ability of addressing the modern need and demand. The knowledge become the basis of any idea
that generate by the entrepreneur. The role of knowledge and new knowledge is to constantly
generate the new ideas that can attract some kind of need of the customer in market.
Pros:
 Feasible to launch the new product.

Cons:
 Expensive and risky.
The above stated features are associated with the different sources that support the
entrepreneurial vision of delivering business operations.
Question 2
The biodegradable packaging is an innovative idea that is currently into the huge fashion.
Mckinsey 7 S Frameworks is a suitable tool to be used to assess the whole situation.
Strategy
The strategy is to use the biodegradable packaging to safely consume and degrade
quickly. This is an environment friendly product that would support the to eliminate the risk of
environmental damage.
Structure
The product contains an element that support the production of natural resource further it
is easy to recycle that keep on using the same material.
System
The product holds the system to keep the product safe and also easy to destroy anytime
required. The system is to improve the recycle process which further allow the stakeholder to
protect the nature and conserve natural resources. Henceforth, it can be stated as a fact that this is
a very effective system top consume.
Shared values
It is the joining centrer of this model and defines the core values of the product and its
effects on the general work. All organizations have its certain values and norms which is
mandatory for every member to follow these rules. The standards help to hold the product in the
market and organization together.
Skills
It refers to the capabilities of an individual to make and manufacture the product. This
model improves the thinking and changes to be made in the product(Found, et.al, 2018). Every
organization is focused on its vision and works for achieving the goals through experienced and
skilled workers in order to increase the sales of the product.
Style

It refers to the leadership techniques adopted by the company to achieve the goals that is
increase the sale of the product in the market and to boosts its profits. Various leadership styles
and patterns can be followed which is beneficial for the company and which affects the sales of
the product in the relevant market. It involves the leadership qualities an individual possess in
order to manage and provide suitable direction to increase its product value in the
market(Mihardjo, and Alamsjah, 2018). The leaders have various qualities such as emotional
intelligence, planning of uncertain risk and understanding power and leader should understand
the importance of these powers in order to manage the organization to focus on the goals of the
company.
Staff
It refers to the number and types of employees working in the organization as their
capabilities creates an advantage for the firm. The talented and well experienced people are
assets of the company. The company should constantly seek for more experienced candidate for
increasing the productivity level of the organization.
Question 3
Manufacturing the biodegradable packaging forms the foundation and growth of the
industry. SWOT Analysis is helpful to identify the factor for the adoption of this product as the
product in eco-friendly, sustainable strategies and other elements. The analysis is helpful for the
business and in addition it helps to find the strength, weaknesses, opportunities and threats that
the industry faces due to internal and external factors which affects the operations of the
industry.
Strengths:The strength of the Biodegradable packaging market are the education, experience
and knowledge of the staff and members employed in the organization. The benefit lies when
the company establish its business in the market, it can gain advantage over the new comers as
their work will be to first create the manufacturing process and find purchasers or companies
who wish to purchase their products in the market. Patents play an important part as patents over
the biodegradable product as the company won't have to pay any licensing fee to the inventor,
and they can manufacture their own products and sale in the market.
Weaknesses:The company has some weaknesses which affects its overall operations. The cost
that is utilized in the research and development for improving and innovating the product can
become a problem as these will incurs huge cost(Daou, et.al, 2020). For small scale business, it

is difficult to switch to these products as in the initial stage it requires huge investment in the
production process. The company can be affected by higher price that is considered as key
barrier for any business. Every company has its business strategies which focuses mainly over
cost differentiation rather than adopting new products.
Opportunities:Increase in the demand of Biodegradable packaging in the market will result in
the manufacturing of the product as per the requirements of the customers in the market. The
problems in the surrounding such as fossil fuels is being exhausted and prices of oil is getting
high as their will be increase in the demand of the products which are eco-friendly and an
opportunity for those companies manufacturing the biodegradable products(Blanc, et.al,2018).
The bargaining power of the owners can be an opportunity to push the biodegradable packaging
in the marketplace. As result of these policies and schemes which favours these products will be
helpful for these companies to manufacture more due to increasing demand in the market. Due to
increase in the growth of the natural products, the cost of raw materials to manufacture the
biodegradable packaging will available easily and at lower prices in the market.
Threats:The major threats that a company faces is the competitors in the market, if other
companies started developing the biodegradable packaging. In the present marketplace, the
company do not use much of cost on research and development of bio related packaging. Many
companies do not make high investments due to economic crises as it involves risk(Blanc,
et.al,2019). The organization can suffer loss as customers are not willing to pay the prices
expected by the brand owners which can affect its productivity and sales in the market.
Question 4
PESTLE Analysis is a tool utilized by the companies to identify the environmental factors in
which they are operating and it also helps to establish new plan, policies and strategies to survive
in the market place. It denotes the political, economic, social, environmental and legal factors
which affects the operations and working of the company. Entrepreneur adopts this technique for
making decisions for smooth functioning of its operations. Each factor has its impact on the
business organization.
Political:This factor refers to the rule sand regulation of the government and the interference of
the government in the economy. The political factors include areas such as tax policy,
restrictions related to trade and tariffs and political stability in the country(Loizia, et.al, 2021). It
also puts restrictions on the various goods and services and also puts limitation on the entry of

specific goods. With the new regulations of banning the usage of plastic bags has impacted many
countries as people shifted their focus and started using the biodegradable packaging products as
they do not harm the environment, are eco-friendly and also helps to spread awareness among
the people about the environment.
Economic:It evaluates those issues which affects the growth rate of the economy and includes
the growth, interest, exchange and inflation rate and increase unemployment which adversely
affect the revenues and have long termed effect on the company. The biodegradable packaging
products are eco-friendly and does not cause any harm to the environment. Rise in the inflation
rate will decrease in the demands of the products and rise in prices of goods in the market by
which customer will resist to spend money on these products due to high price of the products.
Social:Social factors includes the cultural aspects which includes the population rate, health
consciousness among the people and safety of the society. These factors affect the demand for
the company's products and its operations. Most of the consumers think that biodegradable
packaging is useful as it is eco-friendly and can be recycled causing less pollution in the
environment. As people are educated and concerned about their health and choose to opt for the
options which does not affect their health and cause less pollution in the environment. The
demand for the eco- friendly products has resulted in increase in the production of such
companies.
Technological:These factor include the various aspects related to technology such as
automation, research and development and rate of technological change. These components
determine the entry barriers, level of production of the company. With the updated technology, a
company can create environmental friendly products and choose the raw materials which are
easily in the market and are available at low cost (Ruiz, et.al, 2020). Technological change
affects the firms efficiency and it is important to update its technology and adopt according to the
changes.
Legal:Legal factor such as consumer law and environmental law affects the operation of the
company and how the regulations of the law affects the organization. If a company starts its
business, it is important to follow the rules and regulations related to it as breaking the laws can
cost a company and can affect its business operations.
Environment:It includes the physical conditions and involves the factors such as natural
disasters, level of pollution etc. Pollution in the environment can be a threat(Oliver, and Parrett,

2018.). People are now more focused on the products which are environment friendly and are
available at lower costs. The companies should focus more on manufacturing the products
which are in demand in the market. It should also lay emphasis on creating new market and also
understanding the requirements of the consumers.

CONCLUSION
From the above report it is concluded that to achieve the goals of any organization it is
very important to understand the factors which can affect the business and also the prevailing
conditions in the market. The company can achieve it through proper planning and coordination
among the members. McKinsey 7 S Frameworks is used to understand the structure, shared
values, skills a d staff which is considered as important elements for any organization to operate.
The company should examine its strategies according to the circumstances in the market and act
accordingly. With the help of SWOT analysis, the company can identify its weakness and threats
and can take competitive advantage over the factors. PESTLE analysis has helped the company
to identify the external factors in the market which affects its productivity in the market.

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