Reference no: EM132224673 , Length: 3500 Words

BUSINESS INCUBATION PROJECT

ANSWER ALL QUESTIONS.

Nature, focus and scope of the business

Identify and develop the nature, focus and scope of the business and opportunity that you wish to investigate. Your discussion must draw from an analysis of each of the following:

a) the type of the business
b) product or service offering
c) potential customers
d) current or likely position in the lifecycle
e) type of industry and industry lifecycle
f) window of opportunity
g) other relevant (if any)

You are required to validate the opportunity that you have identified/discussed in Q 1.1 above. Your arguments for the validation must be supported by the following information and analysis:

a) a review of the investigation criteria used by you to collect the background information; and
b) findings of the background information that you have collected and analysed.

Organisational vision, goals and structure

Identify key stakeholders of your organisation and analyse their value expectations. Stakeholders may include but are not limited to the following:

a) suppliers and customers
b) shareholders
c) lenders
d) employees and managers
e) local community
f) competitors
g) government and regulatory bodies
h) other relevant (if any)

In collaboration with key stakeholders of your organisation that you have identified in Q 2.1 above, perform the following:

a) Critically examine the following core institutional/fundamental aspects of your organisation (existing or proposed organisation):

o core values
o beliefs
o philosophy

b) Develop the statements of the following for your organisation:

o organisational vision
o organisational goals

Evaluate organisational goals that you have developed in Q 2.2 above, and justify these goals for their feasibility and congruence with each of the following:

a) organisational vision
b) organisational values
c) organisational culture

Formulate the following structures for your organisation:

a) organisational structure
b) management and team structure

Assess each of the above structures that you have developed in Q 2.4 for its potential to meet the organisational goals.

In light of organisational structures that you have formulated in Q 2.4 above, perform each of the following analyses:

a) identify any gaps in team structure and management of the organisation
b) provide solutions that show how you would fill identified gaps

Business environment, key success factors and competitive advantage

Critically analyse each of the following external macro environment factors, and assess these for their impact on the business, opportunity and the future outlook:

a) political
b) legal
c) economic
d) technology
e) globalisation
f) socio-cultural
g) green factors
h) other relevant factors (if any)

Critically analyse each of the following external micro environment factors, and assess these for their impact on the business, opportunity and the future outlook:

a) segmentation and target market(s)
b) market structure, size, growth trends, and profit potential
c) competition
d) suppliers
e) distribution channels
f) profit and growth potential
g) other relevant factors (if any)

Note: Some of the above macro and micro factors may not be relevant to your business. You are still required to discuss all of these, and provide justification of why a factor is irrelevant or not applicable.

Based on the findings of above external macro and micro environment analyses that you have conducted in Q 3.1 & 3.2 above, perform the following tasks:

a) evaluate and justify the market viability of your business idea/opportunity
b) identify and justify industry key success factors

Develop the value proposition for your proposed offering, stating key benefits your target customers are likely to derive from your offering.

Analyse the potential of the value proposition that you have developed in Q 3.4 above, in terms of its ability to create a unique and significant value for its target customers.

Analyse your organisation's internal environment in terms of its resource strengths and weaknesses under each of the following internal factors, and assess these internal factors for their potential impact on the business, opportunity and the future outlook

a) product
b) technology
c) financial
d) human
e) organisation culture
f) infrastructural
g) intellectual
h) other relevant factors (if any)

Based on the findings of the internal environment analyses that you have conducted in Q 3.6 above, identify and evaluate the competitive advantage that your organisation has or is likely to have, and justify how your oragnisation could potentially develop and/or exploit this competitive advantage.

Assess and justify the organisational competitive viability of your organisation in terms of your organisation's potential to match its resource strengths that you have identified and analysed in Q 3.6, with key success factors that you have identified and analysed in Q 3.3.

Value model: creating, delivering and capturing value

Under each of the following headings, analyse the key components and functions of your proposed business:

a) suppliers
b) customers
c) channels
d) resources
e) value proposition
f) other relevant (if any)

Note: Some of the above components/functions may not be relevant to your business. You are still required to discuss all of these, and provide justification of why where a component/function is irrelevant or not applicable.

In light of the analyses that you have done in Q 4.1 above, clearly define at least seven inputs that are critical to your proposed business. Inputs may include but are not limited to the following:

a) target market size and growth rate
b) market penetration
c) customer purchase size, frequency and preferences
d) resource requirements
e) product price

f) process
g) place
h) promotion
i) other relevant (if any)

Note: Some of the above inputs may not be relevant to your business (e.g., in case of a not-for-profit business). You are still required to provide at least seven inputs.

In light of the analyses that you have done in Q 4.1 & 4.2 above, clearly define at least seven outputs that are critical to your proposed business. Outputs may include but are not limited to the following:

a) cost structures
b) equity and debt profiles
c) number of customers
d) sales (units)
e) sales (revenue)
f) cashflow
g) profit profiles
h) breakeven
i) ROI
j) ROA
k) ROE
l) NPV
m) IRR
n) other relevant (if any)

Note: Some of the above outputs may not be relevant to your business (e.g., in case of a not-for-profit business). You are still required to provide at least seven outputs.

Develop the value model for your business, which draws on analyses that you have done in Q 4.1 to 4.3 above, and links the components/functions, inputs and outputs of your business in a logical manner.

Note that the value model should clearly show all the inputs and outputs for your business, and must determine how the business will create, deliver and value - including revenue streams, expenses and profit potential.

Under each of the following headings, evaluate and justify the viability and value creation potential of the value model that you have just developed in Q 4.4 above:

a) model uniqueness
b) difficulty of duplication by competitors
c) ability to create value through IPs
d) profitability potential
e) other relevant (if any)

Resource requirements

Identify and analyse the resource requirements for your proposed business. Resource requirements may include but are not limited to the following:

a) start-up capital
b) infrastructural
c) financial
d) human
e) manufacturing
f) R&D
g) technological
h) marketing
i) legal
j) operating cashflows
k) other relevant (if any)

Discuss the potential sources for how each of the resource requirements will be met that you have identified and analysed in Q 5.1 above.

Discuss funding strategies will be for meeting your business's resource requirements as discussed in Q 5.1 & 5.2. Funding strategies may include but are not limited to the following:

a) equity
b) debt
c) asset financing
d) mortgages
e) other relevant (if any)

In light of your analyses/discussion in Q 5.1 to 5.3, provide an analysis and justification for how the required resources and/or funds will be used in the business and how this usage will be consistent with your business structures and procedures.

Business and growth strategies

Analyse each of the following business strategies for its potential to provide strategic directions and growth prospects for your proposed business:

a) low-cost leadership
b) differentiation
c) focus niche
d) other relevant (if any)

Analyse each of the following growth strategies for its potential to provide strategic direction and growth prospects for your proposed business:

a) market penetration
b) product development

c) new markets
d) diversification
e) horizontal and vertical integration
f) alliances
g) acquisitions
h) mergers
i) joint ventures
j) multicountry and global strategies
k) other relevant (if any)

6.2 Assess each of the business strategies and growth strategies as analysed in Q 6.1 & 6.2, for its critical outcome and potential to meet organisational vision and goals of your proposed business. Based on this assessment, select both business strategies and growth strategies that your organisation will pursue.
(ER 6.2)

Functional strategies and plans

Marketing strategies and plans

Present an analysis which identifies and develops marketing objectives and strategies for your proposed business.

Translate above marketing objectives and strategies that you have identified and developed in Q 7.1 into a marketing mix and positioning plan for your proposed business.

Operational strategies and plans

Present an analysis which identifies operational objectives and strategies for your proposed business.

Translate the above operational objectives and strategies that you have identified and developed in Q 7.3 into an operational plan for your propose business.

Human resource/staffing strategies and plans

Present an analysis which identifies human resource and staffing objectives and strategies for your proposed business.

Translate the above human resource and staffing objectives and strategies that you have identified and developed in Q 7.5 into an HR plan for your propose business.

Financial strategies and plans

Present an analysis which identifies financial objectives and strategies for your proposed business.

Translate the above financial objectives and strategies that you have identified and developed in Q 7.7 into financial plans for your propose business - under each of the following headings

a) capital requirements and funding proposals
b) financial assumptions
c) profit and loss forecast
d) cashflow forecast
e) balance sheet forecast
f) capital expenditure budget
g) breakeven analysis
h) other relevant (if any)

Risk and control management

Using an advanced technical analysis of key assumptions that you have used in your business model:

a) identify potential risks involved
b) provide risk and control management mechanisms and plans that ensure successful running of the business

Performance evaluation and strategic exit

Present an analysis which establishes each of the following performance related elements for your proposed business:

a) KPAs
b) KPIs
c) Performance milestones

In light of KPAs, KPIs, and performance milestones that you have analysed and established in Q 9.1 above:

a) develop performance evaluation, monitoring and control mechanisms and plans that will be implemented
b) formulate and analyse options and plans for strategic exit