Innovation and Creativity Report: Utensil Business Plan Analysis

This report presents a comprehensive business plan centered on innovation and creativity, specifically focusing on the production and marketing of bamboo utensils. The report begins with an introduction highlighting the importance of innovation in today's competitive market and then selects bamboo utensils as the product. It justifies the value of this opportunity by discussing the growing health and environmental consciousness among consumers, the cost-effectiveness of bamboo production, and the product's eco-friendly nature. An external environment assessment is conducted using PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors influencing the business. The report also includes a SWOT analysis to identify limiting and enabling factors. Finally, it considers the major functional elements of the business, including production, marketing, and financial plans, providing a holistic view of the business strategy and its potential for success.

INNOVATION AND
CREATIVITY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PRODUCT SELECTED:.............................................................................................................3
JUSTIFICATION OF THE VALUE OF THE OPPORTUNITY BEING DEVELOPED:........3
AN ASSESSMENT OF THE EXTERNAL ENVIRONMENT IN RELATION TO THE
OPPORTUNITY..........................................................................................................................4
THE ANALYSIS OF LIMITING AND ENABLING FACTORS IN RELATION TO THE
EXPLOITATION OF THE OPPORTUNITY.............................................................................6
A CONSIDERATION OF THE MAJOR FUNCTIONAL ELEMENTS OF THE BUSINESS
INCLUDING PRODUCTION, MARKETING AND FINANCIAL PLAN:..............................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
The report of innovation and creativity will comprehensively undertake a business plan
which is innovation and creativity centric. In the recent times when every industry has power
packed competition, it is really important to have an innovative approach with the product which
helps a company increase its profitability and achieve the goals. This report will cover a business
plan highlighting the opportunities available to the business.
Value of the opportunity will be depicted. Further the external environment analysis of
the business will be conducted using pestle analysis, which will highlight each factor like
political, environmental, social, technological, economical, legal (Inkon, 2019). Also, the factors
which can optimum utilize the opportunity available using SWOT analyses of the business will
be illustrated. At last major elements of the business like production, marketing and financial
plan will be discussed. Various strategic models will be used to have a better understanding of
the business plan.
MAIN BODY
PRODUCT SELECTED:
For the business plan product taken is utensils which are made of bamboo. Utensil
includes numerous products under the umbrella such as spatula, bottles, pan, vessels, containers,
pots etc. A recent shift in the consumers' lifestyle habit which has made them environmental
conscious leading to have environmental friendly approaches makes this business have extreme
profit potential. Further, with the various benefits attached to the products, it becomes an
attractive product for the market which is filled with competition as this bamboo made products
will be an edge in the industry (Wang and et.al., 2018). Also, the cost of production will be
comparatively less than the steel utensils. The product is derived in two major terms as the health
conscious choice and environmental choice. Therefore, the bamboo products has a huge scope in
the market.
JUSTIFICATION OF THE VALUE OF THE OPPORTUNITY BEING DEVELOPED:
There are five major factors which are considered beneficial for the opportunity
developed. Very first is the huge potential target market, there lies a huge market for this
product. Due to the lifestyle changes which has been observed in the consumers, people have
become more health conscious than ever (Alanzi, 2018). Consumers are trying to look for

product and services which have health benefits and do not cause negative health effects by any
means. The bamboo made products are free of toxins and BPA chemicals. Bamboo being a
product derived from the nature has no negative health effects. And this makes the product really
attractive to the potential market segment. Therefore, making a market entry with an innovative
product can be a break through for the profitability of the business.
Production of utensils from bamboo is a cost effective measure. If the production is cost
effective, it is easy to derive high profit margins. As bamboo takes lesser amount of time for
growth comparative to the other plants. It is the fastest growing plant which can achieve the full
growth in just 90 days. Also, it does not need any pesticide or chemicals to grow which reduces
the cost of raw materials needed for the utensils. Such fast growing cycle without any chemical
makes the continues supply and availability of the raw material s easy. Such easy supplies reduce
the cost of production.
Bamboo products are environmental friendly, as bamboo comes under the category of
the grass and not under the trees, plants. And cutting the grass is not against any laws, also the
business practice of growing more and more bamboos to increase the production may build a
strong brand image of the company which has numerous business benefits in the long run. The
waste of such production process will not be harmful for the environment (Friesendorf and
Uedelhoven, 2021).
The longevity of the business, as eco-friendly is the future of all industries, having an
innovative business which supports a great sustainability dynamic ensures the longevity of the
business. Many existing businesses are trying to incorporate or trying to change the business by
developing the sustainability aspects. Such pre dominant features of the production can ensure
the longevity of the business. The features of the products have the power to be introduced to
each segment of the consumers ensuring a great positioning strategy in the business that make
sure that product must reach to every market group. This will help in ensuring the longevity of
the business.
AN ASSESSMENT OF THE EXTERNAL ENVIRONMENT IN RELATION TO THE
OPPORTUNITY
In order to analyse the external environment which has impact on the business opportunity,
PESTLE analyses will be helpful. Pestle analysis stands for political, economical, social,

technological, environmental, legal factors that impacts the business of the enterprises. Let's
discuss each factor in detail.
Political factors: the UK government's move to appreciate and support any environmental
friendly measure taken by the businesses in the country has brought the positive news for the
business. Government is continuously sticking the measures which have positive impact on the
country's environment. The utensil making enterprise which derives the raw materials without
affecting the nature is a good move. For the years to come government of the UK will always be
supportive of the businesses who are conscious of the climate change and are not causing any
harm to the ecosystem. Therefore, political measures are in favour of the utensil business
(Jazayeri and Park, 2019).
Economic factors: economic factors like inflation and employment rate affects the business.
Due to the inflation there is rise in prices of the goods, yet for the utensils made of bamboo there
will not be much impact as the major raw materials are such which does not increase the process
of the final goods. Such marginal prices of the goods will achieve the cost leadership in the long
run, giving more business to the enterprises. Further due to the high unemployment rate such low
priced products will be affordable for the consumers which will make the business more
profitable. Also, the covid-19 which affected the lives of people, has made people realize the
healthy lifestyle practices this current factors is also a generating business practice. This states
that economic factors are also in the favour of the business.
Social factors: various factors such as customers taste, preference, lifestyle habits etc. have
impact on the businesses. When covid-19 hit the UK, in the short time only it changes the
lifestyle habits of the people. Consumers have developed a health conscious habit of using only
the products which have no negative impact on the health of the individual. This change has
broadened the business scope of utensils made of bamboo, as these utensils are free of toxins,
chemicals, pesticides and are antifungal, anti bacteria which makes people shift towards these
utensils (Ramadani and et.al., 2019). The younger generation of the country believes in adapting
the healthy practices with the trendy products and services. As people have become more about
trends and fancy things. Utensils are going to include the various types of bottles which can be
targeted towards younger generation and this will be a great factor.
Technological factors: every business is being revolutionized by the technological
advancements. As business nowadays are technological driven, this requires huge capital to have

digitalization of the business. Maintaining the technical team in the business is also an expensive
affair. As it is a new business which already has a lot of capital requirement to run the
operations, it becomes difficult for the business to maintain the technological efficiency in the
business. Maintaining strong customer database and keeping such database updated regularly is
very important and for the new business it incurs huge cost to maintain the database of the
customers. Every business unit in this industry has a strong online presence therefore this
becomes a negative factors which negatively impacts the utensil business in short run (Lahtinen,
Dietrich and Rundle-Thiele, 2020).
Environmental factors: there are various authorities in the united kingdom which constantly
keeps an eye on the corporates and business having the optimum environmental friendly
practices in the business operations. The opportunity identified here is utensils which are
derived from the bamboos, have no negative environmental impacts. As the raw materials are
coming from natural source and such business waste is also not harmful therefore environmental
factors have no negative impact on the business.
Legal factors: many legal authorities in the united kingdom have made the rules and regulation
which does not allow excess production of the bamboo as this is dangerous for the biodiversity.
Yet the commercial production has no implications of any legality as it is allowed in the country.
Therefore, the legal factors does not affect the utensil production from the bamboo in UK
(Markovic and et.al., 2020).
The above mentioned factors have optimum supported the opportunity of the business and
external factors of the environment have positive impact on the business.
THE ANALYSIS OF LIMITING AND ENABLING FACTORS IN RELATION TO THE
EXPLOITATION OF THE OPPORTUNITY
Enabling factors: there are various factors which enables the use of the opportunity. This
factors will elaborate the strengths and opportunities which allows the business to make the best
use of the opportunity. Very first is the innovative product. There are many utensil making
companies in the business yet the utensils made from bamboos is a new concept which has
power to be a new things in the market.
Further the health benefits coming from the bamboo products, as these products are toxin, BPA
and chemical free which gives many benefits to the customers. Also, these two things makes a
huge target market for the company.

For a new business it is important to have knowledge of the market segment the business
is targeting. And this business has a complete idea of targeting the every consumer in the market.
This business has low rate of dependency on the suppliers as there is low power of bargaining
to the suppliers which makes the availability of the supplies very easy. Bamboos are fastest
growing plants which gets mature in the time duration of 90 days only. This ensures continues
supply of the goods. Also, the economies of scale is also the business strength which can further
reduce the cost of the production and it will be easy to be a market cost leader in the industry
(Khoreva, 2019).
Limiting factors: this business also has some limiting factors which exist both in the external
and internal part of the business. This factors can be depicted as the weakness and threats of the
business which can hinder the usage of the opportunity (Magerakis and Habib, 2021). The
technological weakness of the company due to lack of capital. In the recent times when
companies are trying to make a strong online customer base it is important for the company to
have digitalization of the business onboard which allows the company to give tough competition
in the online market segment as well. This is a strong limiting factor for the exploitation of the
opportunity. Further the extreme competition in the utensils business where new trends are often
faced by the business.
There are still people who do not believe in climate change and adapting the
environmental friendly practices. Grabbing this customer market can be a challenge for the
enterprise (Wang and et.al., 2021). As educating customers and these part of the market by
placing an effective advertisement can be a hectic and resource consuming process for the
business. This will require the capital for the business and it being a new business faces difficulty
raising the funds for the process.
A CONSIDERATION OF THE MAJOR FUNCTIONAL ELEMENTS OF THE BUSINESS
INCLUDING PRODUCTION, MARKETING AND FINANCIAL PLAN:
The three most important parts of the business plan are production, marketing and financial. Let's
understand each business dimension in detail.
PRODUCTION: the functional element of production plays a crucial role in the business plan.
As production is a factor, which decides the final cost of the products. And the price of the
product defines the positioning and buying behaviour of the customers. Here for the production
of the utensils form the bamboo the production aspect chosen is the economies of scale.

Economies of scale is a production type where cost per unit decreases with the increase in
the units produced. Here cost of the products is inversely proportional to the units produced in
the company. As there are basically two types of cost attached with the production, fixed cost
and variable cost. Fixed cost remains same in-spite of change in production level. And variable
cost changes according to the change in production (Gavieiro Besteiro, 2022).
This technique of production is the best for the products as the target market is really
huge and a constant supply of goods can be maintained only when large scale production of the
goods can be achieved. Also, it being a new business in the market, achieving cost leadership
will be the best of the strategy. As economies of scale will produce goods in large quantities, and
this will result in the low prices end products.
Economies of scale will be the best strategy of production as it will give the cost
leadership in the industry. It will attract more customers to switch to this innovative products.
Such large scale production will maintain a constant supply in the market and the business's
ability to have more supply chain networks in the remote market will be enhanced.
MARKETING: let's use the 4 Ps of marketing which are product, price, place, promotion, this
is considered as the points which must be wisely evaluated and bettered upon in order to
successfully promote or market the product. As the successful product needs, an effective
marketing mechanism. Let's look at each point carefully.
Product: designing a marketing campaign begins with the understanding of the product for
which the marketing is for. So first know the ins and out of the products, second who needs these
products, third why would consumer choose our products over the competitors. It is important to
find answers to this above question. Consumer must choose our products because of the product
innovation, environmental and health reasons attached with it. The utensils are needed by
everyone even the school going kids can be the customers as product line has water bottles in it.
These questions define the aspect which must be used to design the marketing strategy (Avila
and Avila, 2021). The key aspects like innovative health & environment features must be part of
the marketing.
Price: it is the amount or money that customers are willing to pay for the products. Price plays a
huge role in marketing the products. Achieving the cost leadership with the innovative products
is a very balanced approach. The utensils are priced at a low rate because of the economies of
scale. The value statement like high quality at low prices must be delivered via marketing

campaign to the customers. As an extreme low cost may make the impression of cheap quality
products therefore an optimum price must be set which gives the cost advantage in the market
and also delivers the values to the customers.
Place: it is where the product is made available. Different products need different types of
visibility in the marketplace (Kong, Jiang and Zhu, 2022). For utensils there must be a strong
enterprise's outlets facing the customers should be placed. The local dealer of utensils must have
this bamboo utensils in the shops. Apart from this the advertisement for the products in the right
source of media which gets the maximum attention of the customers. Place of advertisements
plays an important role in determining the reliability of the products. It being a new business
crucial sources must be chosen which depicts the genuineness of the products. These places can
be supermarkets, local dealers, chain stores etc.
Promotion: the goal of this promotion is to generate the need in the customers to buy the
products. If the promotion of the products is done well, it can ensure great sales and revenue of
the products (Guo and et.al., 2022). As this is the market entry of this business, it is essential to
have the best advertisement, public relations, and an optimum product media strategy that
ensures the successful product launch. The product must be communicated well to the customers
choosing the right way. As it is an innovative product the introduction must be based fully on
features, newness and price of the products. It must be based on the need creationism and
environmental consciousness in the customers.
FINANCIAL PLAN:
A financial plan is a comprehensive document which states the current money situation and sets
the monetary goals depicting various expenses associated with the business. The financial plan
for the newly established utensil making business will include the certain expenses that will play
a huge role on deciding the profitability of the business in the upcoming financial year (Pham,
Pham and Luong, 2021).
EXPENSE AMOUNT (IN £)
Raw material 3500
salary 5000
Marketing expenditure 2600

packaging 450
equipments 5500
Administration expense 3500
Monitoring expenditures 2750
Fixed cost 200
Total expenditure 23500
Knowing the financial ins and outs of the business is very important to figure out which area of
the business needs more capital than others. And which areas are bringing the profitability of the
business more evidently. In the utensils making from the bamboo the equipments are the most
expensive area where budget has been allocated. In the above financial plan there fixed cost
mentioned which excludes the equipments as that sums up to be £200. paying salaries to the
talents in the business is also a huge expense as they are the people who tend to bring out the best
in each business segment.
CONCLUSION
The above report of innovation and creativity has summarized an effective business plan
for the products. The innovative product chosen was the utensils made from bamboos. Focus
points of the report were the innovation behind such products. Report also justified giving
specific factors the value of the opportunity for such products. Further the external environment
of the business has been analysed focusing on each factor in such context of opportunity. Also,
various factors which enables and limits the use of the opportunity has been elaborated. At last
the major business dynamics such as production plan, marketing plan and financial plan were
mentioned using 4 Ps of marketing and a budget plan.

REFERENCES
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