Product

Question:

Discuss about the Entrepreneurship for Contemporary Strategy Analysis.

In a saturated global market, it has become much vital to analyze the market well before the commencement of a new venture. If this is not done properly, then there lay a great risk in the project. Basic things that are needed to be analyzed are opportunity of the product in the desired market of operation, self-analysis of the elements, a detail market research along with technical and financial feasibility are required. Apart from these, a successful business venture also calls for having the insight of possible responses and scalability of the product in the proposed market.

The task is based on analyzing the same scenarios related to industry as well as market analysis. The product taken as a case study for conducting the research is a Health Drink in the market of Singapore. It is very important to form a business idea to implement it in the new business venture.

Opportunity analysis:

A successful entrepreneur or a business man has the insight of viewing the opportunity of trading a product in a market. His vision, mission and ideology towards the launch of a new product are what make him successful in the business market (Ahmad et al. 2015). A self analysis can be done for the same aspect.

Elements of self analysis:

As stated by Gyaviira (2016), in the entrepreneurial behavior theory, three major human capitals are required for the commencement of a business. These are:

General human capital: General qualities such as skills, managerial capabilities, education and demographic control variables as well.

Entrepreneurship specific human capital: This includes entrepreneurial capability, parental background and attitude towards the business.

Venture specific human capital: Good knowledge of the domain of the business and motivation towards the business.

Based on the above mentioned criteria, it can be said sufficient human resources are required for venturing a new project.

Description of proposed venture:

The new product proposed for the business venture is a Health Drink named ‘Quick Sip’. It is a soft drink based health drink that provides a rejuvenated experience to the consumer (sani 2015). In summer season, sale of soft drinks and other beverages increases to a large extent. However, in recent time people have become more conscious about their health and avoid having high calorific drinks (Caamaño et al. 2015). Thus, if the same drink provides the rejuvenation of the warmth of the climate and at the same time give certain nourishment to the consumer then there is a greater scope for the product to be accepted by people in the market.

Market research:

As opined by Philip (2016), certain factors namely, behaviorist, geographic, psychographic and demographic characteristics of the people of the region are greatly responsible for shaping the desire of the consumers to buy products. However, understanding the four basic Ps of marketing is very important. An analysis of these factors can be done below:

Industry analysis:

Place

There are several soft drinks and other refreshment drinks already available in the market. However, consumers look for better options and varieties and are happily ready to try new products. In this respect, industry analysis can be done by the means of Porter’s Five Forces:

Study of technical feasibility:

Technicality is required for every aspect of business. Although the product is a consumption product and does not deal with technical aspects such as a soft ware or any other technical parts, still some technicalities might be required for the packaging of the product. For manufacturing the drink, it is evident that there will be a manufacturing plant where the components of the drink will be processed and the manufacturing will be done (Grant 2015). For the sake of packing the product, technical support is required. It is very important that the ingredients with their calorific values are mentioned in the packaging along with the price of the product. Setting up a manufacturing firm is therefore indeed important (Wills et al. 2015).

Study of financial feasibility:

As opined by Visted et al. (2015), that the foremost thing to be done at the time of planning a new business venture is to form a specific budget that would include all the expenses and other requirements that are needed to be fulfilled for successfully running the business in the market. Budget includes, manufacturing cost of the product, labor charges, fixed charges like rent of the place or electricity or other charges. Apart from that promoting the product is also an important part of business venture that is also needed to be included in the budget of the product (Nielsen et al.2015). A table can be made for showing the budget of the proposed business venture for coming five years: (figures representing amount are in dollars $)

Table: Proposed budget of Quick Sip

Source: Created by the author

Scenario version:

An entrepreneur must also have the vision of identifying the future scenario of the business (Spinoglio et al. 2015). Thus, a possible responsive version of the approach of the business can be given below:

What would be the proposed startup capital for the business?

In this case, the imposed budget could be aligned to reduce to a level of fund that might be generated internally.

In case, a similar product is launched prior to ‘Quick sip’?

In this case, target market and consumers might be readdressed for better sale of the product.

If an already existing strong brand come up with same idea?

Another market might be chosen or focus should be made on the specificity of the product. Certain competitive advantage like product differentiation or pricing strategies can be applied.

In case, a big company proposes a merging offer?

Merging might be possible depending on the profit or sales figure. However, acquisition is not preferred in the recent years of business.

Scalability of the new venture:

Scalability implies the process of growing the business venture, at the same time keeping the core mode of operation intact. Once the scalability of the new venture is done, there remains no dilemma in compromising with the profitability or increase in the expenditure. The foremost thing for this purpose is a business plan (Hummel and Amiryany 2015). Making a plan is indeed necessary to ensure the growth of the new venture. Secondly, it is also expected that there should be an entrepreneurial approach towards the business. The person must be enthusiastic enough towards the business and should keep focused on the further expansion of the business. It is the spirit of a businessman that differentiates the person from other individual. Understanding the market scenario and the target consumers are the two important factors that are needed to be analyzed for a new venture.

Conclusion:

The task highlighted the necessity of drawing a business plan prior to any operation in the business. The ideas proposed in the task are based on the feasibility of the business in the recent scenario. Various factors related to internal and external environment have been analyzed. It was important to get knowledge of self analytical capability as an entrepreneur. This has also been done. A strategic approach has been taken for the sake of conducting the business of health drink in a proposed market. By the end it can be said that for a new approach, risk factors are inevitable. However, fighting with the competitors and other stopping factors in the business is what makes a successful entrepreneur. The success of a product in the market in terms of profit is what proves the ability of an entrepreneur. Thus, a target strategic plan needs to be set for better results.

Reference list:

Ahmad, N.A.B. and binti Jaini, A., 2015. The Impact of Infrastructure on Trade in Malaysia.

Bruun, J.M., Maersk, M., Belza, A., Astrup, A. and Richelsen, B., 2015. Consumption of sucrose-sweetened soft drinks increases plasma levels of uric acid in overweight and obese subjects: a 6-month randomised controlled trial. European journal of clinical nutrition, 69(8), pp.949-953.

Caamaño, M.C., Gutierrez, J., García, O.P., Ronquillo, D., Martinez, G. and Rosado, J.L., 2015. Increased Calorie Intake at a Specific Mid-morning Meal and Increased Intake of Soft Drinks are Strongly Associated with Obesity in Mexican Rural Women. Ecology of food and nutrition, 54(2), pp.157-174.

Grant, R.M., 2015. Contemporary Strategy Analysis 9e Text Only. John Wiley & Sons.

Gyaviira, G.M., 2016. Importance of intrapreneurial practices prevalent among secondary school teachers in Kalungu District (Uganda). Journal of Education and Learning (EduLearn), 10(1).

Hummel, J.T. and Amiryany, N., 2015. Determinants of Acquisition Performance: A Multi-Industry Analysis. In Advances in Mergers and Acquisitions (pp. 143-169). Emerald Group Publishing Limited.

Nielsen, A.L., Lund, T.B. and Holm, L., 2015. Dealing with food budget constraints in Denmark. Differences, Inequalities and Sociological Imagination.

Philip, K., 2016. Marketing Management-Millennium Edition.

Reed, D.D., 2016. Matching theory applied to MLB team-fan social media interactions: An opportunity for behavior analysis.

Sani, R., 2015. Nurturing entreprenuership. New Sunday Times, pp.1-3.

Seringhaus, F.R., 2015. Export knowledge, strategy and performance. InProceedings of the 1988 Academy of Marketing Science (AMS) Annual Conference (pp. 97-101). Springer International Publishing.

Spinoglio, G., Lenti, L.M., Ravazzoni, F., Formisano, G., Pagliardi, F. and Marano, A., 2015. Evaluation of technical feasibility and safety of Singleâ€ÂSite™ robotic right colectomy: three case reports. The International Journal of Medical Robotics and Computer Assisted Surgery, 11(2), pp.135-140.

Visted, E., Vøllestad, J., Nielsen, M.B. and Nielsen, G.H., 2015. The impact of group-based mindfulness training on self-reported mindfulness: a systematic review and meta-analysis. Mindfulness, 6(3), pp.501-522.

Wills, T.A., Simons, J.S. and Gibbons, F.X., 2015. Self-control and substance use prevention: A translational analysis.