Fundamentals Of Entrepreneurship Business †Myassignmenthelp.Com

Question: Discuss About The Fundamentals Of Entrepreneurship Business? Answer: Introducation With the advent of modern technology and the increased usage of the Internet due to reasons like reduced cost of data and availability of data, common people have become more and more dependent on the internet to lead their livelihood. Starting from booking a cab to buying clothes and accessories online and also booking a doctors appointment everything is possible through internet and Smartphone. The world has crunched in its size thanks to the increased use of internet and internet based applications (Barnes and Hunt 2013). Type of industry: The industry that the business will be operation on is the e-commerce or the e-market, this is a virtual place of business that exists and is in full rage now. Jeff Bezos the owner of an e-commerce giant, Amazon, has recently been awarded the title of the worlds richest person. Hence it can be clearly understood that there is a huge capacity of this market if it is used wisely and with proper planning. The E-market is a place that has a lot of pros and cons and the biggest pro being the braking of the geographical barrier opening a wider scope of the target market. One of the major cons of the e-commerce sector is that an individual cannot use the service that is being offered if he or she does not have a Smartphone or a computer with working internet plan (Awa, Ojiabo and Emecheta 2015). Mission statement: The vision and mission this new business idea is to create a positive thinking for the online grocery material purchasing. To make the consumers understand the optimum utility of the service. Another positive and innovative point of this application will be the choice of shop from where the consumers will receive their desired product at their door step. In this way the retail stores also can sing up and supply the products without being out of business (Ong and The 2016). Business Model: The suggested name of the service and the new business idea is DELIGROCE. It would include an internet based mobile application that can be downloaded from App store. The city which is suggested to be the point of inception of the operation is Adelaide. Adelaide is a geographically smaller city in comparison to others in Australia, but it has a youthful crowd who use internet on a daily basis and are also open to new and innovative ideas of livelihood hence Adelaide will prove to be a good start to the new business. First of all technical support will be required in order to develop an application based portal which is not only user friendly and easy to use but also has two sides to it one is the consumer end and the other is the vendors end. The business model of the new idea will flow a two course path that is going to run parallel to each other. One is the vendor side and the other is the customer side. To combat the busy time table that individuals lead nowadays there are several services that are available in the internet. This business model also follows the same path as the customer side of the model is planned and designed in a way that the time and effort of the consumers are reduced so that they can indulge their time in something more worthwhile. But, there is always a trust issue with the products that are available in the virtual world, especially if the products are in the perishable goods category and most groceries are in this category. To deal with this dilemma of the consumers there is the vendor side of the model, which is to sign up with local grocery stores that the consumers usually visit and trust so that along with the products the customers can also choose the stores from which the products are go ing to be bought. Good quality products are going to be delivered by the suppliers and grocery shops, the shops will pack the orders received from the mobile application and supply it to the delivery partners of the company. The idea is to remove the hoarding of the inventories and stocks as the market is dealing with goods that can easily be perished therefore cutting on a large amount of capital investment on the stocking of inventories and warehousing charges etc (Chaffey 2015). Description of the Industry Future outlook and trends In todays world the schedule that an individual follows is very bus and hence there is an upward trend of the internet based market. As it saves time and effort of the people it is growing and gaining popularity with the reduced cost of internet and data plans. In the next five years the expectation of the consumers form the e-commerce sector is going to increase and hence there is a lot of opportunity for the business to upgrade and expand in other cities as well. There is drone delivery system in 30 minutes and virtual trying of clothes and shoes also possible. Analysis of Competitors There are a number of players in this market already as it has a lot of opportunities the biggest threat being the supermarket retailer giant Aldi. It is a retail market but it has a strong presence online as well. In a very little time the company has garnered a lot of good reputation in the Australian sector as well owing to the reasonable cost and high quality products that they offer. As Aldi has a home grown brand it can offer very low price of products and offer high quality (Kurnia et al. 2015). The business model is a little different form that of the DELIGROCE as in this business model the products are going to be delivered from a selected store to the consumer and the business itself will not own any products of its own. It will just as service providers for delivery of fresh and high quality grocery from the selected stores. Grocery Run is another major competitor some of the services that it offers are $9.99 flat shipping rate all over Australia which is a big marketing plus point for the company, apart from that it also offers great discounts on items. Furthermore, customers usually like to physically check grocery items such as fruit, vegetables, meat and eggs before purchasing them; hence the retail is a big competition to the market (Falk and Hagsten 2015). Here is a list of other potential competitors: Woolworths Coles Harris Farm Australian Farmers Direct Shopwings Industry and Market forecasts he market of the retail grocery is lead by some of the big players like Metcash, Wesfarmers, Woolworths Limited, Aldi and many more and hence the online service of grocery is still yet to gain popularity even among the urban population. In the last financial year 2016-17 and considering the numbers of the past five years, industry revenue has seen an upward rise and opportunity and the approx number that is annualized 15.8%, to reach $2.7 billion. The target market of the industry is still dealing with the new idea of buying groceries online as there is a huge possibility of getting tampered goods because the market deals in perishable items as well. The widespread set of connections of the significant supermarket chains of Australia like Coles and Woolworths, the proximity of the stores form the location of the people have made the online industry of groceries a tough competition as people get a local store very close to their house or locality where they can choose the desired good s from the aisle of these store. The online grocery industry in Australian is expected to grow in its capacity to be worth AU$5.8bn in 2020, which is over twice its current value of AU$2.7bn. Currently the sales of the online market are at 2.3%, which is analyzed to grow to 4.1% of online grocery sales by 2020 (retailanalysis.igd.com, 2017). Technology Plan Description of technology The technology that is required for the inception of the business plan is mainly an application development that is going to be available both in the android play store and also in ISO app store. the application must have some of these features: User-friendly, easy to download, easy to sign in, a section of notes where a person can set reminders, an option on uploading documents which is necessarily the list of items so that the items can automatically move in to the cart of the account. There should also be an analysis metrics in the app which will analyze the buying trend of the consumer and give the customer options while purchasing suggesting new and upgraded products. There also should be a provision for the customers to give the vendors review so that more and more people can order form a particular store, this can be used as a shared marketing tool with the business. Another important aspect of the business is partnering up with a delivery service which is going to serve the company and help the business with the logistics (Cosenz and Cosenz 2017). Technology comparison Most of the application of the online grocery market deal with similar kind of application based program where the customer can pick and choose form by looking at the pictures. There are several companies which offer free shipping after a certain amount along with 24 hrs delivery service. There also provisions available for return of items that the customer did not like. There are applications and websites who just focus on home grown items and encourage Australian vendors. A lot of these plans can be imitated by DELIGROCE as well in the future (Kaptein and Parvinen 2015). Commercialization requirement he first requirement is to understand the local customer and the mind set along with it build al list of supermarkets and local stores who are the potential vendors of the company. The user interface of the application has to be attractive and at the same time engaging for the customers to understand the application easily and use it without any hassle. There should be a GPS navigator built in to connect with the delivery boys in no and keep in contact with them (Fernie and Sparks 2014). The resources that are required to develop this internet based application for both the Android and IOS module is first skilled and trained software technician, a partnership with a friend of the entrepreneur who owns an application designing company is proposed. The next import resource that is required by the company is a trained business development and marketing team who will present the companies and bring aboard vendors by analyzing and identifying a list of supermarkets and local grocery stores. Another major requirement of the initial start up of the business is a content team who will manage the basic content of the application (Brooks, Heffner and Henderson 2014). Marketing Plan Market segment Demographic: The target market of the business is people who buy their own grocery 20-60 years old. Geographic: Initially the geographic area that is going to be focus on is Adelaide. Psychographic: People who have a busy lifestyle and want to take out time form their busy schedule to indulge in some quality time with oneself or friends and family. Behavioral: A person who is tech savvy and understands the usage of such applications, someone who is a regular e-commerce website user, and is not skeptic about the quality of service offered by e-commerce websites and applications (Hennart 2014). Product and service The company is going to offer a service to the customers of delivering the groceries that can be ordered online via an application. On the vendor end, the company is going to offer a platform for the local grocery stores to set up an online presence and reach out to people who are their potential customers (Turban et al. 2015). Pricing he price will be two folds one form the customers end and one from the vendors end. The delivery charges are kept at the minimum and will be free after a certain point of purchase. From the vendors end it will be a contract of the service for 6months, 8months and 12 months option to choose form. The vendors can renew their contract on the basis of their choice. Distribution The distribution of the products will be done by the delivery partner and the delivery will be monitored by the GPS system that will be developed for the app and for the back end usage. Promotion Promotion of the business will be done via medium which is most used by the target market. Digital and internet based marketing is the best option for the business (Rawat and Divekar 2014). Financial Plan Break even Analysis Monthly Revenue Break-even $65,000 Assumptions: Average Percent Variable Cost 30% Estimated Monthly Fixed Cost $46,925 Pro Forma Cash flow Statement Starting Cash Position Inflow (individual investment) Sales from customers Sales from vendors Other Cash Receipts Total Cash Inflow Outflow (Use of Fund) Fixed Cost Administration Marketing Operations Total Cash Outflow Closing Cash Position Production plan The production of the technology is given to another firm which specializes in the technology development sector. This firm belongs to the friend of the entrepreneur and hence a mutual benefit and understanding will be much better than any other outsourced unit. The company will be offering a service and not a product hence the option of production is unavailable but for a service industry as well has a production procedure in this case is the development of the technology is part of the production (Cannone and Ughetto 2014). Organizational plan Form of Ownership The form of ownership of the business is sole proprietorship where the entrepreneur is the sole owner and the receiver of any profit that is drawn from the business. He or she is the person who is the risk taker and the risk barer of the company. Identification of Partners The firm will need collaboration with the technology support company and will also have a delivery partner of the venture to begin with. Both the technology and the delivery are significant to the company, the future plans are to set up own logistics phase in the future while expanding the business. Organizational Structure It is an independent venture and will be released at small scale only for the customers in the Adelaide area. The entrepreneur of the company is the person who is all in all in the management. Apart from that there is a marketing and business head along with a content manager in the establishment. There are around seventeen employees in the marketing, operation and the content team. Operational plan The aim is to launch the application as soon as possible as the online grocery market of Australia is expected is the eight largest in the world with full potential to grow exponentially over the next five years. Before the launch some promotional activity will occur to kick start the download process. Six months before the launch the application will be used extensively by the technology team to understand and deal with the short comings (Wang et al. 2016). Summary The prospect of this business is dependent on the acceptance of the idea among the urban population of Adelaide. There is tough competition of the retail stores on the online front in the grocery sector. The development of the application and the smooth running of the app will the prime focus at the initial stages. While, the marketing team at the will concentrate on finding the vendors to participate and collaborate with the application. By the end of the first financial year there is an expected growth in the industry and in the outlook of people hence focusing on expanding in other adjacent cities as well. Reference List: Awa, H.O., Ojiabo, O.U. and Emecheta, B.C., 2015. 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