BM6005 Enterprise: Creating Your Business -Module Report

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BM6005 Enterprise: Creating Your Business

Executive Summary
The study has begun with the structuring of a New Venture Proposal, with the iteration of a
business concept that includes all the ideological factors needed for the growth of the chosen
company. Nevertheless, there were certain limitations that restricted the business to reach its
potential. For that, a primary research approach has been initiated and thereafter a new business
concept has been developed.
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Table of Contents
Introduction......................................................................................................................................3
Section 1..........................................................................................................................................3
Section 2..........................................................................................................................................4
Section 3..........................................................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
The study focuses on creating a New Venture Proposal, where the thought patterns of the
industry of retail are focussed upon. Identifying the target market, enabling the users to obtain a
differential value to their demands from the companies like Aldi, Marks and Spencer and many
more. A primary research has been conducted to gain more clarity in the findings and research
outcomes. Thereafter feedback is obtained and development of a second plan is thought of.
Section 1
Business concept
From the research conducted, it has been understood that the concept of business mostly entails
to the features of the services and the products, the ways to target the demography of the
customers, develop a unique selling point and thereby gain a competitive advantage on the target
market (Barringer & Ireland, 2016).
Rationale of the business concept
The rationale behind the creation of a business concept in the retail industry of Marks and
Spencer has been that it is the business concept, which helps in linking the members of the
organization to the core of the main purpose of the business (Marksandspencer.com. 2019). The
issue regarding the formation of the business has been that the companies, like Marks and
Spencer are affected by the reduction in the customer base. To enhance the profitability of the
company, it requires that the retail company needs to thoroughly explore the needs of the market.
Creating a business in the retail sector requires locating the problems that are faced by the similar
brands (Rae, 2015). The trends of the customers are constantly changing and therefore the
primary research conducted deals with the identification of the demands and preferences of the
target market and the mechanisms the entrepreneurs undertake to achieve the purpose.
Activities
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After the business concept has been developed, the research has been conducted by the entire
team to achieve necessary clarity on the actions that must be implemented for the set up of a
business venture. The mindset of specific entrepreneurs are achieved through diagrams and video
formation, so that the proposal, thus developed is evidence based and can follow the footsteps of
the previous successful entrepreneurs together with generation of individual ideas. Therefore,
from the perception generated by the aforementioned business concept, a second iteration for the
development of a business proposal has been created (Bessant and Tid, 2015). The primary
research undertaken includes online researching, such as websites, blogs, Youtube, along with
offline research like interviews and discussions within focus groups.
Section 2
Analysis of the original business concept
The original business concept has been formed and tested with the help of primary research
methodologies. These include collecting information through websites and other social
networking platforms, as well as interview of entrepreneurs of retail chains, who have performed
significantly well in the target market.
Feedbacks
From the interviews conducted, the feedback helps in developing a clear business concept in the
retail industry and the specific entrepreneurial activities that would benefit the organization at
large (Dawson & Andriopoulos, 2015). The entrepreneurs, who are interviewed states that the
company requires to give the highest priority to the demands of the customers, who are the main
protagonist for enhancing the profitability of the concerned enterprise. As per the discussion, the
research team has understood that the target audience has to be thoroughly analyzed. The
customers with similar traits, interests, behavioural patterns and lifestyle features are noticed and
the market segmentation has been accordingly. As far as the needs of the markets are concerned,
there are two kinds of needs, which are functional and emotional. Even variations are present
within the entire market depending on the affordability of the customers. The environmental
concerns of the consumers are emphasized and thereafter the safety features and other concerns
are taken up by the business ventures, which are forming the start-ups.
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The business proposal must also consider the fact that differentiation is an important factor for
the analysis of the target market. From the online research, the information gathered signifies
that due to the growing competition in the market, companies need to develop their product
features, which would be different from the other competitive organizations. Reduction in the
price structure, better customer service features, concerns regarding the environment and
relationship of the customers with the companies enables in augmenting the brand image of the
growing business organizations.
The primary research also enabled the team in learning the prospects behind the creation of
tangible and intangible products that would meet the demands of the customers.
Online research
The social networking sites like YouTube and other logs has been searched for gathering
relevant information regarding the activities that are performed by the entrepreneurs in their
business operations (Mariotti & Glackin, 2016). From the data collected, it is determined that
planning of the product is detrimental for the development of the business. Therefore,
brainstorming is an essential criterion for the execution of the business. The strategizing of the
next business move is also the responsibility of the entrepreneur.
Value based product creation is the main goal of the entrepreneur, which further helps in
improving the economic condition of the business. Budgeting, sales and marketing also comes
under the purview of entrepreneurial tasks. Innovation in the development of the products is
essential for the generation of revenues.
From the website, it has been found that the entrepreneurs of the businesses exhibit a high
potential in leadership activities. The employees, who work for the company, always look up to
the entrepreneurs who play the role of motivators. These personalities are not that much skilled
in product development or have superb technical knowledge. There talent mainly lies in the
marketing skills and making long lasting relationships with the customers so that they develop
more trust on the organization (Nielsen and Lund, 2015). They have in-depth knowledge
regarding the psychology, motivation and cognition of the customers, which they take advantage
of at times of company development. These business people also have high socializing skills and
they can communicate easily to any individual without any hesitation. This extrovertedness
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further helps in cracking deals with eligible investors, who would invest the funds that would
benefit in its growth.
Offline Research
The entrepreneurs of certain companies are interviewed to gain more perspective about the skills
they have and the markets they target for the growth of their businesses. The discussions are
provided below:
Q1. What are the skills that are mandatory for the entrepreneurs to make a business
successful?
On answering the above query, the entrepreneurs of the companies, like Marks and Spencer and
Aldi stated that it is only the sheer passion that can take any business enterprise to its notch. The
courage is an imbibed skill, which makes the entrepreneurs face any number of challenges in the
tenure of the business and even turn negative situations into positive learning experiences
(Lussier, Corman & Kimbal, 2015).
They also said that managing money is another crucial factor that would determine whether the
company would rise or fail. For that, adequate knowledge of budgeting is required. Transforming
a smaller amount of money to larger profits is one of the capabilities of the entrepreneurs.
They are very enthusiastic and do not be upset or frustrated during company setbacks.
Somehow, they find out solutions that can be highly effective for making the company flourish
or maintain itself in the target industry.
They are familiar with their own strengths and weaknesses. The entrepreneurs also showcase
training skills, so that members, who work for the organization, also develop similar traits of the
owner of the business.
Other skills that entrepreneurs possess are strong ambition, willingness to learn more in the
processes of business development, efficient listening skills, creative aptitude and high
confidence level (Asante, 2017). They are very open-minded and even incorporate the employees
working under them to share their knowledge and take part in every phase of decision-making.
Q2. Mention some crises that you have encountered and how did you cope with them.
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The entrepreneurs confirmed that in any business organization, occurrence of crisis is inevitable.
Therefore, the entrepreneurs always stay mentally prepared beforehand, so that they can calmly
resolve the issues without panicking (Sundström and Radon, 2015). The crises can be of different
types, like changes in the market needs, legalities of the government, political and environmental
challenges. Hardships in personal growth, rejection and doubting the self are some of the
emotional challenges they face on a regular basis.
While recording the interview I found that these entrepreneurs develop strategies to overcome
the phases of struggle and became more confident over time. I have understood that in
conducting a business, one needs to acknowledge the problem, analyze the weightage of the
damage, identify the situation critically and develop necessary amendment strategies.
I have gained insight on the interview process that the coping of the crisis can be done through
effective business philosophy; formulate a plan, which is both creative as well as realistic. This
plan helps in implementation of the strategies into actions (Souto, 2015). The sharing of the tasks
are done by the employees of the organization who are allocated the tasks according to their
specializations. Any wrong allotment causes damage to the entire organization. Hence, the
entrepreneur takes the role assigning the steps to the proper team members so that the crisis can
be tackled smoothly within a short span of time.
Section 3
Development of the second iteration
The feedback gained from the interviews and the online sites, helped in making a new business
concept that would be far more effective than the earlier one. The primary research has been
through interviews and browsing which led to the formation of the second iteration of the
business concept. It is completely based on adequate research of the needs of the market,
understand the demands of the customers, develop products according to the choices of the
customers, set prices which would be comparatively affordable than the prices of the products
distributed to the other organizations (Galbraith, 2017).
Entrepreneurship style
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The entrepreneurship followed in the second business concept, follows effective business
strategies like heightened communication among the owners, customers as well as the employees
(McNulty and Brewster, 2017). The research helped in attaining the insights of the business
strategies followed by successful entrepreneurs and thus have been beneficial in citing a rational
business concept. The concept thus developed, wholly reflects the philosophy of the
entrepreneurs obtained in the feedback.
Desirability
As per the feedback, it has been ascertained that developing customer relationship plays an
integral role in the growth of the business (Wood and Logsdon, 2017). The company would
target the market, which has the highest number of premium customers, which would be helpful
in increasing the brand image of the organization.
The results obtained in the research meets the desirability ratio, as it would lead to sustenance of
the company and help in gaining competitive advantage.
Feasibility
The feasibility of the second business concept is more as the ideas are generated from the
existing entrepreneurs. It is the possibility of the success rate of the business proposal. The
iteration is thus beneficial in understanding the capability of the employees of the organization,
financial capability of the implementation of the research, which would eventually lead to the
success of the industry and hence promote in more revenue generation (Wirtz et al., 2016).
Viability
The information gathered from the research, portrays that the second iteration of the business
concept has more potential to be successful. As the needs of the customers are targeted and
different skills and methodologies of the entrepreneurs are understood, therefore the business is
more capable to achieve the sales volumes that are targeted together with gain the anticipated
profit margins (Aithal, 2015).
Future research
The second iteration of the earlier business concept also requires to develop a viewpoint
regarding the growth prospects of the industry in the future years.
Statement of the steps
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The changes that may occur in due time must be researched before hand, so that the company
can take measurable steps for making the company sustain itself in the competitive business
market (Kim et al., 2015). There would be changes in the demands of the customers and even in
the mindset of the entrepreneurs, which would cause modifications in the strategies of the
performance of business organizations.
Conclusion
The above report dealt with the initiation of a new venture proposal that would help in the
growth of a new business enterprise. For that, the business concept is formulated regarding the
stages that need to be integrated for the success of the same. However, tactics of primary
research, such as websites, blogging and interviews have played a key role in changing the
iteration of the previous business concept and transformed it more desirable, feasible and viable
in the changing economic conditions.
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References
Aithal, P.S., 2015. Concept of Ideal Business & Its Realization Using E-Business
Model. International Journal of Science and Research (IJSR), ISSN (Online), pp.2319-7064.
Asante, S.K., 2017. The concept of the good corporate citizen in international business.
In Globalization and International Investment (pp. 139-176). Routledge
Barringer, B & Ireland R (2016) Entrepreneurship: Successfully Launching New Ventures.
Pearson.
Bessant and Tid (2015) Innovation and entrepreneurship.
Dawson &Andriopoulos (2015) Misanaging change, Creativity and innovation
Galbraith, J., 2017. American capitalism: The concept of countervailing power. Routledge.
Kim, Y.S., Lee, J., Lee, H. and Hong, Y.S., 2015. Product-service business concept design: Real-
world case of a small furniture manufacturing firm. Procedia CIRP, 30, pp.257-262.
Lussier, Corman, &Kimbal (2015) Entrepreneurial new venture skills
Mariotti&Glackin (2016) entrepreneurship: starting and operating small-business
Marksandspencer.com. (2019). Welcome to Marks & Spencer. Available at:
https://www.marksandspencer.com/ [Accessed 13 Jun. 2019].
McNulty, Y. and Brewster, C., 2017. The concept of business expatriates. In Research handbook
of expatriates (pp. 21-60). Cheltenham: Edward Elgar
Nielsen, C. and Lund, M., 2015. The concept of business model scalability. Available at SSRN
2575962.
Rae D (2015) Opportunity centred entrepreneurship 2ed. Palgrave.
Souto, J.E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management, 51, pp.142-155.
Sundström, M. and Radon, A., 2015. Utilizing the concept of convenience as a business
opportunity in emerging markets. Organizations and Markets in Emerging Economies, 6(2),
pp.7-21.
Wirtz, B.W., Pistoia, A., Ullrich, S. and Göttel, V., 2016. Business models: Origin, development
and future research perspectives. Long range planning, 49(1), pp.36-54.
Wood, D.J. and Logsdon, J.M., 2017. Theorising business citizenship. In Perspectives on
corporate citizenship (pp. 83-103). Routledge.
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