Entrepreneurship Case Study: Ladheedhcious Business Analysis Report

This assignment analyzes the Ladheedhcious case study, focusing on Zulfa, a small-scale entrepreneur in the chocolate manufacturing industry. The analysis critically examines the challenges Zulfa faces, including competition, raw material sourcing, and brand recognition. It evaluates the factors influencing opportunity discovery and creation, such as investment, research and development, and market analysis. The assignment also explores the types of risks Zulfa might encounter, including financial losses and brand damage, and discusses how she can apply the five stages of small business growth (financial, strategic, structural, and organizational) and the Churchill and Lewis model. Additionally, the report highlights the importance of the three Ms of Growth (Marketing, Money, Management) for Zulfa's success, providing a comprehensive overview of her entrepreneurial journey and strategic recommendations for sustainable growth and market entry.

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TITLE OF THE PAPER CENTERED AND IN CAPS LOCK
by Student’s Name
Code + Course Name
Professor’s Name
University Name
City, State
Date

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Zulfa is an ambitious girl a great enthusiasm to build something that she has dreamt of since
her childhood. Not only meticulous preparation but great determination is also required when
one wants to chase the dream of his or her childhood. The path to success is not straight and
one has to do untiring work to fulfill the ambition. In this case, the girl is an entrepreneur in
the chocolate manufacturing industry (Altınay and Altınay, 2018). We shall look up to the
challenges that she might face and will also try to put forward the opportunities that lie within
her path to success. On her way, she will also encounter various risks, and we shall access
them as well as we stroll down the success story of this chocolate dreaming lady
entrepreneur.
Small scale setup of business is not an easy task since there are possibilities that one might be
crushed from the competition with the bigger players (Ahamad, Sinha and Shastri, 2016).
This situation is also complementary to this fact but in a situation when the area or the target
market is open to people of vibrant choices and also to the bigger players in the industry.
There is a challenge of buying the raw materials since most of the raw materials come from
selected players and there are greater chances of them being under some kind of monopoly
(Kumar and Mahapatra, 2018). These traders of raw materials will always have some kind of
pact with their raw material manufacturers or processers. In this case, sugar is a raw material
that Zulfa would have to purchase from the local sellers or retailers or small scale producers.
If her locality or target marker is near a village that has a healthy production of sugarcanes,
then she also has an option to buy it from the farmers who can lend it to her at a much cheap
rate compared to the aforementioned sellers (Manzoor, Mehraj and Wali, 2018).

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The next major challenge that she might face while advancing towards her dream is the
behavior of the people to her product (Singh and Rai, 2018). It is a word of mouth that
industries that have been in the area for a longer period are the trusted ones in the market and
people do not hesitate to buy from their brand name. This challenge could be an
overwhelming one for the young Zulfa since she is yet to establish her name in the industry
and has only a course in small business management and a few workshops under her belt to
prove her metal. She must do vast research to find the real taste of the people and the reaction
of people when being introduced to a new product (Terziev and Arabska, 2017). The former
case stands strong since she is an innovative person and goes by the study she has done. As
soon as she heard it from the veterans in the industry, that, “every entrepreneur should
constantly and consistently aim to improve the products and services already existing in the
market”, she is fuelled with the urge of introducing wafers, lollipops, small luqaimat
chocolate coated balls and hard candies to the people of her area. This could harm her
business because every investment comes with a price. It is also said, that greater the risk, the
greater are the rewards.
As a new entrepreneur, she will also have to keep a check on the tight duties and policies of
the government to regulate the trade and industrial production. One cannot just start a
business without confirming the rules and regulations of the government. She should be well
aware of the legal aspects to run the industry (Sari and Budi, 2019). Michael Porter has laid
the best set of guidelines for starting a business introducing the concept of the stimulus
offered by the Social, economic, political and technological factors in the market. A well-
performed SWOT analysis for her chocolate manufacturing business will lead to a better
fortune for her enterprise (Shi, 2016).
Now, as far as the challenges are concerned, Zulfa is sure to face the facets mentioned in the
aforementioned paragraphs. Corroborating further, she can also embark upon the

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opportunities in the market to provide her business a head start. These opportunities may
include investment from outside wherein she can consider her friends and peers to assist her
monetarily, research & development which will help her to make her product at par and
above with the products in the market, the introduction of foreign materials to her production
unit to reduce the cost of processing and manufacturing, and many more.
She wants to introduce new chocolate products to the market like wafers, lollipops and hard
candies. There is a great risk attached to this part since she does not know if her target
audience will like it or not. If her product fails to connect with the people, she will have to
face losses in terms of both financial capacity and in terms of the brand value. Another risk is
associated with the business structure that she will adapt. She will have to put weightage to
the departments to have her business run well and to compete in the market. For example,
since she is new in the market, she will have to pay more emphasis to the research &
development department along with the marketing team. If she is not able to balance the
same, her business model might collapse and eventually fail. Another important factor is the
assumption of people’s interest in her products. She should carefully jot down the factors that
are related to the taste and liking of the people in her area. If she fails to cater to the demand
of the people, the concept of her business may become complex and troublesome.
It is also very important for Zulfa to follow the different stages of business development.
These stages, I apropos to her business model are briefed as below:
The financial Growth: In every business, the input leads to output. And it is also evident that
profits are not generated from the very first day of business. She should know about the
break-even point and should be patient enough to invest and wait for profits to come. By
knowing this she will be able to use her monetary resources better. Keeping a contingency

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amount all the time is also considered wise in any business since there are force majeure
conditions that are inevitable and cause a lot of damage sometimes.
Strategic Growth: A business model, supported with well-planned strategies is considered to
run better and effectively. She should take the help of her peers to provide insights about the
business rather than taking all the decisions all by herself. This will help the smooth running
of the business and the onus will be equally distributed too. The strategies should be a
collective effort of all the people in the enterprise, enabling them to be responsible for both
the growth and the failures in the organization (Yüksel, 2012).
Structural growth: A composed structure will lead to efficient working of the business.
Duties and responsibilities should be well assigned to the people in the organization. A cross
matrix structure helps in better upward and downward communication. The Human resource
department should also implement reward giving policies for the employees so that staff is
well fed and their welfare is not compromised.
The Organisational Growth: An organization should not only grow in terms of wealth and
popularity in the market but it should also become more stable with time. A stable
organization is said to perform better and can brace even the worst of the market conditions
such as recession, natural disasters, and other force majeure conditions like COVID-19.
People in the organization should take pride in their work and maintain work ethics. Such an
organization's growth will lead to better fortunes and a great market value apart from,
delivering great products in the market for the people, i.e. the target audience.
Churchill and Lewis have put forward a model for the growth of small enterprises which will
help Zulfa in setting up her business model for effective and productive growth. In the
starting, she should have lesser products and keep her products simple to save upon the

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monetary aspect. With time, she can introduce more products to her manufacturing unit
(Cant, 2017).
The three M’s of growth are the essence of any business and Zulfa should align her ambitious
chocolate business keeping in mind the monetary factors, the marketing, and the management
perspectives. Like said earlier, investment from outside is considered a better option than
pumping our own money into the organization. This helps in keeping a record of the cash
flows and the return on investment therein (Muzumdar, 2013). Keeping a contingency
amount comes handy at times and she should always keep an amount to help her in facing
adverse situations in the market.
She should emphasize on catering and delivering the products in the local market first, for her
business to become stable. A better marketing team will help her to expand in the local
market. Advertisements on television and thorough banners and flex boards could help her
brand to reach out to the masses (Bugador, 2015).
Her management should be efficient and the duties should be properly assigned to all. A
transparent organization leads to the efficient management of both human resources and
intangible resources like time and welfare. A matrix type management structure with upward
and downward communication, as said earlier will help her establish a strong organization in
the market.

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References
Ahamad, T., Sinha, A. and Shastri, R., 2016. Women Empowerment through Skills
Development & Vocational Education. SMS Journal of Entrepreneurship & Innovation, 2(2).
Altınay, F. and Altınay, Z., 2018. Women as Social Entrepreneurship and Use of
Technology. European Journal of Sustainable Development, 7(3).
Bugador, R., 2015. The Stages of International Growth of the Business Groups From
Emerging Economies. Organizations and Markets in Emerging Economies, 6(2), pp.22-34.
Cant, M., 2017. Arranging events for entrepreneurs: waste of money or value for
money. Journal of Business & Retail Management Research, 11(04).
Kumar, D. and Mahapatra, D., 2018. Encountering the difficulties of Entrepreneurship:
Lesson from Ramayana. SMS Journal of Entrepreneurship and Innovation, 4(02).
Manzoor, S., Mehraj, D. and Wali, A., 2018. Measuring Readiness of Women
Entrepreneurship in Emerging Economies: Scale Validation and Contextualization. SMS
Journal of Entrepreneurship and Innovation, 5(1).
Muzumdar, P., 2013. Business Model Development Through Corporate Strategy Design:
IBM SWOT Analysis. SSRN Electronic Journal.

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Sari Pratiwi, Budi Winarni, S., 2019. SWOT and Gap Analysis for New Product
Development at PT. Duta Karya Mandiri. International Journal of Business Management &
Research, 9(1), pp.7-12.
Shi, Y., 2016. SWOT Analysis of Purchasing Markets in the Region of Asia. Business and
Economic Research, 6(1), p.403.
Singh, S. and Rai, A., 2018. WOMEN ENTREPRENEURSHIP and ECONOMIC
DEVELOPMENT: A RELATIONAL EXPLORATION. SMS Journal of Entrepreneurship
and Innovation, 4(02).
Terziev, V. and Arabska, E., 2017. Social Entrepreneurship, Social Values, and Social
Impact. SSRN Electronic Journal.
Yüksel, I., 2012. Developing a Multi-Criteria Decision Making Model for PESTEL
Analysis. International Journal of Business and Management, 7(24).