TMDIBS109 Understanding the Entrepreneurial Spirit Assignment Sample

• Type Assignment
• Downloads549
• Pages11
• Words2858

Introduction - TMDIBS109 Understanding the Entrepreneurial Spirit Assignment Sample

EcoEssence is a start-up firm whose focus is to encourage people to embrace green and environmentally friendly methods of cleaning through the sale of biodegradable cleaning products. Innovation, which entails the formation of new enterprises, plays an important role in the economic development of the country (Shane & Venkataraman, 2000). EcoEssence is a socially oriented company that provides solutions to environmental issues through its range of plant-based and non-toxic cleaning sprays and biodegradable sponges. EcoEssence envisions leading the market in offering environmentally friendly cleaning solutions that minimize the use of plastics and the emission of chemical compounds. The goals set are to decrease the usage of volatile cleaning agents by households, encourage environmentally sound consumerism, and foster a greener earth. Due to the implemented and envisioned strategies aimed at increasing the company’s innovativeness and eco-sensitivity, the subject under study as a member of the green economy is ready to enter the market actively and bring tangible results (Dahl, 2010). This analysis serves as a valuable resource for students seeking assignment help in understanding green entrepreneurship, environmental sustainability, and strategic innovation in emerging markets

Marketing Strategy

EcoEssence will sell cleaning products that are made from environmentally friendly materials such as plant-based cleaning sprays and biodegradable sponges. The brand selected these products to meet the increasing consumer desire for green products as the current cleaning products contain toxic substances, and are mostly packaged in plastics. The market for green clean agents is growing day by day due to which awareness of the people regarding the environment and their health. There is evidence of an increase in consumer preference for eco-products. The Global Market for environmentally friendly cleaning products is expected to grow up to $15. 1 billion by 2027, according to Grand View Research from 2020(Anon., n.d.). The research proves that there is a great demand for environmentally friendly products but the availability of genuinely green products that work well is limited. This gap therefore offers EcoEssence an opportunity to serve consumer needs without producing excess by specializing in some specific markets vis-a-vis market demands. Of all the competitors, EcoEssence should be given more attention because the company prides itself on offering quality products while being environmentally friendly. This is our Unique Selling Proposition; we sell green products with green packing at 100% bio-degradable material. Competition poses a major threat since there are many players in the market selling similar products We have a unique selling proposition in terms of a natural plant-based cleaning formula and no-waste packaging. Based on this case, our desired market will consist of those consumers who are 25- 45 years of age with an understanding of the importance of eco-friendly products(Anon., 2022). Young professionals, families, and those who are conscious of their health are included in this group. The market splits the business segment according to environmental concerns, attitudes toward the environment, and buying behaviour of the people of the new millennium. The plan entails using social media forms of marketing to announce the realization of such a goal in addition to partnering with other environmentally conscious celebrities and undertaking environmental fairs(Capik and Brockerhoff, 2017). 4Ps of Marketing:

Business environment

Political Factors:

EcoEssence will be based in the UK where political risks are low, and the adoption of eco-friendly products is encouraged. The UK government has set out the target of reaching net-zero carbon by 2050, which has informed sustainable business measures from the government including the plastic packaging tax and funding for green technologies. Also, due to Brexit, trade deals that may impact food supply thereby posing risks to the supply chain are possible; this is why EcoEssence should source its materials domestically. Following the environmental policies of the country the company operates in such as the UK REACH will also be important(Weidema et al., 2008).

Economic Factors:

The UK economy is at the moment on average growth, but some factors can be a problem with regards to consumers’ expenditure like inflation and the cost-of-living crisis. However, the demand for sustainable products is still high as the customer’s preference for products that have a lesser impact on the environment has gained a lot of importance as compared to the price factor. The modern consumer consciousness shifts to sustainable goods and services and thus the market niche is suitable for EcoEssence as the product pricing at a premium level can be justified by its impact on the environment. Moreover, green operations may decrease the costs of business, and through subsidies offered by governments to firms that engage in the practice of ecological friendliness, these enterprises can therefore record high profits(Bocken et al., 2016).

Social Factors:

Especially UK people are very concerned about the environment nowadays and there is high tendency to buy products which are eco-friendly and made from ethical sources. There is a social aspiration towards climate change and sustainability that is directing buyers’ preferences changes especially in the youthful customer segments. This is in line with EcoEssence’s target consumer group made up of people with a conscience and between the ages of 25-45 years. Moreover, the UK demography allows the company to target different cultural segments and sell the same product referring to the aspects which the given culture is interested in most – sustainability. The increasing prevalence of healthy living lifestyles also polls in favour of non-toxic natural clean products(Bandura, 2001).

Technological Factors:

Overall, all technology in the UK is well developed, especially in the manufacturing of green products which will be useful if used by EcoEssence to enhance the latest innovation in green material and manufacturing as well as online marketing. There is a high usage of e-commerce and digital platforms that will help EcoEssence in selling most of its products online. It also helps in the invention of new plant-based products to incorporate into the products of EcoEssence, and innovative, environmentally friendly packaging, which adds value to the firm’s competitiveness. Further, market research and customer relations through digital technologies can be useful for EcoEssence to predict and adapt to the consumers’ preferences and improve its products(Esvandiari, 2023).

Figure 2: PEST analysis

Source: (Esvandiari, 2023)

Funding and finance

Finance & Funding for EcoEssence

It is my proposal to use personal funds, bank loans, and angel investors’ money to finance EcoEssence. EcoEssence is also a beneficiary of grants for sustainable businesses because it is a social enterprise hence would accelerate our funding requirements. Funding strategy minimizes on risk through diversification of the source of funds while availing adequate funding for the business’ inception and development(Baviskar, Chattaraj and Patil, 2024).

Start-Up Funding Requirements:

The initial capital needed for the establishment of the company is set at £150,000 for EcoEssence. The breakdown of this funding is as follows:

• Product Development (£50,000): This as relates to cost-incurred in the research of biodegradable cleaning equipment and other related materials used in the company to ensure the products are of high quality and fully compliant with sustainable practices.
• Manufacturing and Inventory (£40,000): These funds will be used to purchase stocks for the first production and packaging that are made from sustainable materials, and plant-based ingredients.
• Marketing and Branding (£30,000): A considerable part of the funding will be further invested in brand building both in terms of websites development as well as in terms of online advertising and engaging with influencers. These efforts are appropriate for creating awareness of EcoEssence within the market as well as ensuring that we reach our target clientele.
• Operational Costs (£20,000): This entails paying for rental of office space, electricity and water bills, salary of the initial staff and other exigent out-of-pocket expenses.
• Contingency Fund (£10,000): An emergency fund that can be used while the business is in the process of establishing and creating its base(Bandara, Lakmali and Samaraweera, 2022).

Cash Flow Management:

This is especially important given that appropriate cash flow management shall be important to the sustainability of the established financial stability. A cash flow plan will then be developed to show the amount of income and expenditure for the first one year of operation. This forecast shall help check on financial health as it will help ensure there are sufficient funds to cater for the operation expenses and also the amount of cash available for reinvestment(Geels, 2011).

Stakeholder management

EcoEssence’s key stakeholders are the customers, employees, suppliers, shareholders, the society, and the government.

Customers:

The brands’ main target consumers are those that are environmentally sensitive. In dealing with this group of people, effective communication will have to be employed where they will be informed periodically on issues of product twist, corporate sustainability, and achievements. As for the customer needs, they will be elicited and implemented in the product enhancements hence satisfying the customers.

Employees:

Employees of the company are playing the crucial role in the functioning of the organization as the main provider of products and services under the brand of EcoEssence. The brand will provide a welcoming work climate that includes competitive wages, training, and teamwork to keep and attract employees. The formation of a team and proper communication with the employees is important to make sure that people are on the same page with the set goals and objectives of the business.

Suppliers:

Suppliers offer the materials and packaging required for our products. The brand will develop good relationships with suppliers in order to facilitate the choice of suppliers, who are equally principled regarding sustainable business operations. Such audits and cooperative relations will provide the best solutions to ensure quality and reliability of supplies in the chain(Bhargava, 2023).

Investors:

Finance is important for the expansion of the business and it is from here that the investors are important. High importance will be paid to the correct financial reporting, frequent updates, and a clear vision of the company’s development. The brand aim place investors in a position whereby they are constantly in touch with the prospects of the business for the long run(Capik and Brockerhoff, 2017).

Community:

Since EcoEssence is a social enterprise organization, they are sure on making a change or impacting the community. There is a plan of cooperation with local non-governmental organizations, enter environmental programs, and apply local projects. The primary objective of the brand is to make consumers believe in the company and its concern toward social and environment issues.

Regulatory Bodies:

It is very important to adhere to environmental and business regulations that have been set from time to time. The brand will initiate and sustain UK standards in all products and operations hence closely monitoring and engaging with the legislative authorities in case there is a shift in the laws regarding our business.

Figure 3: Power/interest map for EcoEssence’s stakeholders

Source: (Bhargava, 2023)

Risk Management

Risk Matrix

Risk Management Strategies

TMDIBS109 Understanding the Entrepreneurial Spirit Assignment Sample

Liked This Sample? Hire Me Now

Paul Harris 5 Years | MSc

Financial Risk: The next major risk which is a financially unstable position is an extreme risk, not least because start-ups are likely to experience this in the initial stages of the business. To overcome this, EcoEssence will diversify its sources of funding which may include the owners’ funds, bank loans, angel funding as well and grants targeting firms that operate sustainably. In the same respect, a stringent budget and cash flow management plan will be adopted, to allow enough cash flow while avoiding insolvency.

Market Risk: The market acceptance of products being sold by EcoEssence is not quite certain. To address this, there is a need to conduct market research that will enable the company to establish demand from the people. In addition, the risk of the product will be minimized since EcoEssence will initially target a specific market segment, which will include adults who are 25-45 years old and are firm environmental conservationists.

Operational Risk: Other stochastic risks include operational risks like production glitches or staff problems that may compromise business activities. EcoEssence will ensure that it avoids these risks as follows It will ensure that we have efficient operational activities that will check cases of sexual harassment by identifying viable solutions and employee training to ensure all employees understand the company’s policy on sexual harassment.

Regulatory Risk: Environmental regulations are critical to EcoEssence and therefore the company must ensure that complies with all of them. The company will have an eye on the changes in regulations and seek legal advice on the legal requirements to get the products market in the UK. This will help to prevent any risks that may be incurred when undertaking some of these activities because of regulatory measures laid down by the authorities.

Supply Chain Risk: There are always instances that disruption in the supply chain leads to an effect in production and delivery. To minimize this risk, EcoEssence will develop long-term relations with several suppliers and acquire a certain amount of essential materials called buffer stock(Wu et al., 2021).

Global Expansion Strategy

EcoEssence’s international marketing strategy involves expanding into other countries through mergers and acquisitions. Cooperating with the existing eco-friendly retailers and distributors in the target countries, EcoEssence can benefit from the knowledge of the local markets, their distribution channels, and customers. This minimises the risks that are inherent in market entry and includes culture, regulations, and brand awareness. In the first place, EcoEssence will focus on those markets that are characterized by the rising interest in environmentally friendly products, including Northern Europe and Australia. The firm will have the privilege of introducing new products that will suit the local population hence increasing its attractiveness (Gülsoy, Özkanlı and Lynch, 2012).

Conclusion

In conclusion, EcoEssence is in a good place to lead the market in sustainable and environmentally friendly cleaning products. With a good approach to risk management, a well-defined global expansion plan, and a lot of emphasis on research and development, the company is well-positioned to achieve its goals. Through the identification of strategic partners for international expansion and adherence to environmentally friendly policies, EcoEssence will not only address the increasing market demand for green products but also support the preservation of the environment. Being properly grounded and having a definite roadmap, EcoEssence is prepared to bring a positive change to the local and international levels.

References

• Anon. 2017. Green Marketing and Environmental Responsibility in Modern Corporations. [online] Advances in marketing, customer relationship management, and e-services book series. https://doi.org/10.4018/978-1-5225-2331-4.
• Anon. 2022. Net Zero Strategy: Build Back Greener. [online] GOV.UK. Available at: https://www.gov.uk/government/publications/net-zero-strategy>.
• Anon. n.d. Grand View Research. [online] Available at: https://www.grandviewresearch.com/industry-analysis/eco-friendly-cleaning-products-market>.
• Bandara, H.M.G.M., Lakmali, M.G.T. and Samaraweera, G.C., 2022. Impact of Visual and Verbal Elements of Eco-Friendly Packaging on Consumer Buying Behavior. Journal of Dry Zone Agriculture, [online] 8(1), pp.38–58. https://doi.org/10.4038/jdza.v8i1.54.
• Bandura, A., 2001. Social Cognitive Theory: An Agentic Perspective. Annual Review of Psychology, [online] 52(1), pp.1–26. https://doi.org/10.1146/annurev.psych.52.1.1.
• Baviskar, D., Chattaraj, A. and Patil, A., 2024. Consumer Behaviour and Sustainable Product Choices: Insights from Visual Trends. E3S Web of Conferences, [online] 472, p.02002. https://doi.org/10.1051/e3sconf/202447202002.
• Bhargava, Et.A.R., 2023. A Study on Marketing Strategies for Sustainable and Eco-Friendly Products. Tuijin Jishu/Journal of Propulsion Technology, [online] 44(4), pp.4481–4489. https://doi.org/10.52783/tjjpt.v44.i4.1694.
• Bocken, N.M.P., De Pauw, I., Bakker, C. and Van Der Grinten, B., 2016. Product design and business model strategies for a circular economy. Journal of Industrial and Production Engineering, [online] 33(5), pp.308–320. https://doi.org/10.1080/21681015.2016.1172124.
• Brown, T. and Wyatt, J., 2010. Design Thinking for Social Innovation. Development Outreach, [online] 12(1), pp.29–43. https://doi.org/10.1596/1020-797x_12_1_29 .
• Capik, P. and Brockerhoff, A., 2017a. The Role of Strategic Partnerships in the Internationalisation of Small Born Global Firms. Entrepreneurial Business and Economics Review, [online] 5(3), pp.49–77. https://doi.org/10.15678/eber.2017.050303.
• Capik, P. and Brockerhoff, A., 2017b. The Role of Strategic Partnerships in the Internationalisation of Small Born Global Firms. Entrepreneurial Business and Economics Review, [online] 5(3), pp.49–77. https://doi.org/10.15678/eber.2017.050303.
• Dahl, R., 2010. Green Washing. Environmental Health Perspectives, [online] 118(6). https://doi.org/10.1289/ehp.118-a246.
• Esvandiari, M., 2023. The Effect of Eco-Friendly Packaging on Purchase Intention with Consumer Perception as an Intervening Variable. International Journal of Entrepreneurship and Sustainability Studies, [online] 3(2), pp.62–80. https://doi.org/10.31098/ijeass.v3i2.1818.
• Geels, F.W., 2011. The multi-level perspective on sustainability transitions: Responses to seven criticisms. Environmental Innovation and Societal Transitions, [online] 1(1), pp.24–40. https://doi.org/10.1016/j.eist.2011.02.002.
• Gülsoy, T., Özkanlı, Ö. and Lynch, R., 2012. Effective international expansion strategies of emerging countries: the strategies that helped Arçelik. Management Research Review, [online] 36(1), pp.4–32. https://doi.org/10.1108/01409171311284567.
• London, T. and Hart, S.L., 2011. Next generation business strategies for the base of the pyramid: new approaches for building mutual value. Choice Reviews Online, [online] 48(11), pp.48–6397. https://doi.org/10.5860/choice.48-6397.
• Weidema, B.P., Thrane, M., Christensen, P., Schmidt, J. and Løkke, S., 2008. Carbon Footprint. Journal of Industrial Ecology, [online] 12(1), pp.3–6. https://doi.org/10.1111/j.1530-9290.2008.00005.x.
• Wu, Z., Wu, J., Hou, Q., Jiang, H. and Chen, F., 2021. The strategy of international brand expansion of it enterprises: a case study based on Huawei. Procedia Computer Science, [online] 183, pp.733–744. https://doi.org/10.1016/j.procs.2021.02.122.