Business Plan: Modular Homes for Affordable Accommodation Solutions

This report presents a business idea centered on providing affordable modular homes as a solution to the increasing scarcity of accommodation, particularly in densely populated urban areas of the United States and Canada. The Karoleena Company's approach of building compact, functio...Read More

Running head: THINK BIG
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Name of the Student
Name of the University
Author note:

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Table of Contents
Introduction......................................................................................................................................2
Customer/Market Problem...............................................................................................................2
Benefits of the idea in solving the Problem.....................................................................................3
Feasibility........................................................................................................................................4
Business Model: Osterwalder and Pigneur......................................................................................4
Critical Success Factor....................................................................................................................5
Conclusion.......................................................................................................................................5
Reference:........................................................................................................................................7
Appendix..........................................................................................................................................8

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Introduction
Increasing population in this world is pushing human civilization to one of the most
critical problems, the problem of acute scarcity of accommodation. There is constant increase of
population in the world and this has resulted in increased demand of living spaces all around the
world. United States of America and Canada are some of the most advanced countries of the
world hence naturally the urban areas of America and Canada are very populated because of that.
These areas are some of the most densely inhabited areas of the world. The population of these
regions therefore are in constant demand of living spaces which are affordable and having
longevity. The population needs housing solutions that are fast and affordable and longevity is
also one of the factors that play an important role in selecting homes. The Karoleena Company is
aiming to solve the difficulty of accommodation by providing affordable low cost houses that are
built in small spaces, in a short span of time within budget (Karoleena.com, 2018). This business
solution is one of the very crucial ones to solve the present problem of accommodation in the
region.
Customer/Market Problem
The problem of housing and accommodation is one of the crucial problems faced by the
United States of America according to various studies. There are various studies and researches
on the crucial problem of over growth of population and how it is affecting the housing and
accommodation. One organizations which is doing research in this area known as the “Urban
Institute” has once more reiterated this reality by their most up to date examine (Saebi & Foss,
2015). The manner in which this examination is conducted was by computing the quantity of
new buildings and houses built and the quantity of houses getting to be outdated or number of
new individuals are searching for homes. In this manner the general population most of whom

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are searching for new houses may establish the individuals and groups of people who may have
been having problems in their current living spaces as the houses where they live may have
turned out to be out of date, or offspring of a family may have grown up and turned out to be
self-dependent. Apart from the people searching for new houses there are business visionaries
with startups who are in need of spaces to work and establish office in the clamoring
metropolitan regions. However the new business persons and entrepreneurs are not willing to
spend a huge amount of capital to buy brand new properties. This problem is one exceptionally
relevant market issues that is confronted as of late and required pressing consideration. This was
the market issue which was considered before the one of a kind settlement arrangement was
given by the Karolina Company (About Karoleena | Learn About Our Company, 2018).
Benefits of the idea in solving the Problem
The possibility that is produced is exceptionally one of a kind as far as existing business
sector situation. The organization thought of the novel arrangement of giving minimized living
spaces. The space that is used in such manner is little and inside that minimized space entire
practical living area can be developed. Apart from the usage of the space as regular living space
it can be used in various other ways which increases possibilities (DaSilva & Trkman, 2014).
The advantages in this manner incorporates benefits towards the purchasers will's identity getting
their prerequisites met inside the stipulated spending plan. It will take care of the issue of
absence of living spaces in the urban zones of the United States. Business people can get their
own particular workplaces, or creative personalities will have the capacity to get their own
studios and show zones (Build, 2015). The advantages are economical as well as social. One of
the ways in which further innovation can be added to the existing business is by adding the

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option of customization and personalization of the modular homes and living spaces according to
demand of the customers (Martins, Rindova & Greenbaum, 2015).
Feasibility
The useful modular homes and spaces presently are now being delivered by the
Karoleena Company in Canada and the United States of America. The organization is as of now
giving the smart and modular living spaces to the clients the nation over. These homes are being
provided to the clients as indicated by their coveted goal of use. The homes are little spaces
which have different capacities, for example, bedding, drawing, kitchen in a minimal area
(Kamali & Hewage, 2016). The bathrooms and toilets are ecofriendly and fitted in a way that it
does not take a lot space, in many cases the defections are recycled to form manures which can
be used in the adjoining gardens (Bocken et al., 2014). The thought is achievable by the
innovation which is utilized by the organization to make smaller useful living areas and homes
(Hubbard, Rice & Galvin, 2014). This is likewise possible as will incorporate just extra
mechanical skill to modify the current structures of the modular houses in much more innovative
ways. The basis of such innovation in the models and structures of the existing designs of the
modular homes are the engineers and designers. New engineers and interior decorators will be
incorporated in order to make the innovations more effective. These modular homes can be
additionally transported effectively starting with one place then onto the next. In this way it is
useful in the field of portability also (Pisano, 2015). The versatility makes it less demanding to
move starting with one place then onto the next.
Business Model: Osterwalder and Pigneur
The plan of action utilized for this situation is the Osterwalder and Pigneur plan of action.
This particular model is utilized to comprehend the different parts of the business or organisation

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and the partners for this situation. The key accomplices in this organization are the clients who
are going for modular homes and modular offices anyplace they are willing to. The key exercises
of the organization is manufacturing and selling the new modular homes and maintenance of the
already sold units(Scarborough, 2016). Along these lines the key exercises are centered on a
specific sort of item. The key assets of the organization incorporates the designers, the machines
and the creative plan of action (Lawson, Ogden & Goodier, 2014). The estimation of the
organization lies in the way that the organization gives one of a kind answer for the home
searchers and aides during the time spent making the business exercises simple for the business
people. The clients will be stayed in touch by messages, calls and informing (Foss & Saebi,
2017). The division of the clients incorporate young buyers searching for modular homes and
modular offices. The mediums of communication incorporates Social media, Television, and
Website. The cost structure incorporate the payments to the various permanent and non-
permanent employees, promoting and campaigns of advertisements and cost of the various
machines and equipments. The income of the organization originates from deals and support.
(Refer to Appendix for the Table).
Critical Success Factor
The critical success factor incorporates chiefly the uniqueness of the business thought
which takes care of the basic issue of shortage of lodging and settlement. The numbers of
individuals are expanding, the available space for living is diminishing and the need of lodging is
likewise expanding (Bocken et al., 2016). Accordingly this business thought was critical keeping
in mind the end goal to tackle the market issue. This business thought at one hand takes care of
the social issue of accommodation shortage and then again it likewise take care of the monetary
issue of the general population who can't bear the cost of expensive lodging (Jordan, 2015).

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Conclusion
It is concluded that Karoleena Company has been effectively giving the clients the best
quality affordable living spaces. The new business development that is recommended is
customizable spaces, which will be useful in getting the genuinely necessary changes which the
buyers wants to see. They can serenely remain in a compact and reasonable living space that is
customized by their request. In this way this innovation is extremely essential keeping in mind
the end goal to oblige the developing interest of accomodation and convenience in the United
States of America.

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Reference:
Bocken, N. M., de Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product design and
business model strategies for a circular economy. Journal of Industrial and Production
Engineering, 33(5), 308-320.
Bocken, N. M., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to
develop sustainable business model archetypes. Journal of cleaner production, 65, 42-56.
Build, B. (2015). Prefabricated modular homes.
DaSilva, C. M., & Trkman, P. (2014). Business model: What it is and what it is not. Long range
planning, 47(6), 379-389.
Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: How far
have we come, and where should we go?. Journal of Management, 43(1), 200-227.
Hubbard, G., Rice, J., & Galvin, P. (2014). Strategic managment: Thinking, analysis, action.
Pearson.
Jordan, K. (2015). The rise of modular homes. Building Connection, (Summer 2015), 22.
Kamali, M., & Hewage, K. (2016). Life cycle performance of modular buildings: A critical
review. Renewable and Sustainable Energy Reviews, 62, 1171-1183.
Karoleena.com. (2018). About Karoleena | Learn About Our Company. Retrieved from
http://karoleena.com/about/
Lawson, M., Ogden, R., & Goodier, C. (2014). Design in modular construction. CRC Press.

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Lopez, D., & Froese, T. M. (2016). Analysis of costs and benefits of panelized and modular
prefabricated homes. Procedia Engineering, 145, 1291-1297.
Martins, L. L., Rindova, V. P., & Greenbaum, B. E. (2015). Unlocking the hidden value of
concepts: a cognitive approach to business model innovation. Strategic Entrepreneurship
Journal, 9(1), 99-117.
Pisano, G. P. (2015). You need an innovation strategy. Harvard Business Review, 93(6), 44-54.
Saebi, T., & Foss, N. J. (2015). Business models for open innovation: Matching heterogeneous
open innovation strategies with business model dimensions. European Management
Journal, 33(3), 201-213.
Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management.
Pearson.
Appendix

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Key Partners
 Individua
ls
searching
modular
homes
and
offices in
reasonabl
e cost.
Key Activities
 Providing
modular
homes to
the clients
searching
for these
spaces at
moderate
or less
budget
and when
there is
unavailabi
lity of
space.
 Providing
modular
offices.
Value Proposition
 Unmatcha
ble
solution
for the
customers
searching
of homes
 Longevity
and
quality.
Customer
Relationships
 emails
 calls
 chats
Customer
Segments
 Younger
populatio
n looking
for
homes at
easy
rates.
Key Resources
 Designers
 The
machines
 The
business
model
which is
innovative
Channels
 Social
media
 Website
 Televisio
n
Cost Structure
 The payment and wages to the employees
 Marketing and advertisement campaigns
 Cost of the equipment and servers
Revenue Streams
 Sales of the new homes
 Maintainanceof the existing
homes