Assignment Sample on BUSI1692 International Entrepreneurship
1. Introduction of the company
The research analysis sheds light on the evaluation of the selected company, “SMARTZ“, this company deals with the manufacturing of smart appliances as per the requirement of the market. The company effectively focuses on attaining effective market opportunities for availing the mainstream advantages by producing smart home appliances which are mostly likable by the citizens of the UK in recent times. The company’s main motive is to introduce mini versions of fridges, ovens, teapots, and toasters for attracting the attention of mediocre earning customers in the market. Smaller creation helps the company in attaining a quick push to the competitive edge in the market successfully and develops a secure position in the market successfully. The start-up business idea is based on manufacturing smart appliances in the market. Hence, in this era value, added services, and mainstream features are combined with smart appliances and thus this attains the maximum value in the market.
The transformation of appliances into smart appliances is determined by the manufacturers because this attains cost-effective services. The analysis of interconnections between customers and market leads to determine various protocols which are technically embedding engineering and technology in the market for fulfilling customer needs. SMARTZ focuses on availing valuable and insight smart technologies such as IoT for supporting the resourcing of the products for enhancing the channelling with the retailers in the market. The products that have been manufactured and produced by the company focuses on providing a handy service to the customers through whom the customers can effectively mitigate the challenges faced in the traditional appliance. The company focuses on building both commercial and residential products for their customers for attaining a wide range of customers and enhancing market position with effective efficiency and revenue. The mini versions of the smart appliances provided by the company lead to effective control of the products by the customers. Apart from that, the mini version of the products makes them less heavy and thus makes it travel friendly for the customers. As a result, the company is capable of reaching international customers and developing international advertising to enhance its global market position respectively.
2. Identification
Identified challenges
The effective challenges that are been faced in the manufacturing market of smart appliances is as follows respectively:
Management of servicing and warranty facilities
Figure 1: Management of servicing and warranty facilities
(Source: Martinsuo and Luomaranta, 2018)
The higher quality of the products and services in smart appliances makes them effective and trustworthy for the customers. However, according to the terms and conditions of the product life cycle the customers are capable of availing servicing and warranty facilities (Martinsuo and Luomaranta, 2018). As a result, if something is wrong with the product the investment of time and money on the particular products becomes useless and provides zero profit interest to the company.
Meeting of market demands
Figure 2: Meeting of market demands
(Source: Dey et al. 2020)
The development and innovation in the technology era are increasing rapidly and which changes the point of interest of the customers. As a result, the market demands change frequently and maintenance of market demands becomes quite tough for the manufacturer (Dey et al. 2020). Hence, the vulnerable nature of the market demand limits the productivity capability of SMARTZ.
Shorter product life cycles
The frequent changes in the technology and innovation of the development of smart appliances make the product life cycle shorter. As stated by Mahmood et al. (2018), the manufacturing contract according to the local conditions focuses on fulfilling the current needs of the market and thus new production is introduced constantly.
Higher power consumption
The product creation procedure faces the initial phase of consuming a higher amount of electricity. However, for maintenance of effective power management in the manufacturing procedure the company has to attain up-to-date technologies and effective training to the staff for handling the equipment (Saleem et al. 2017). Hence, which requires a higher amount of revenue investment, and thus it is identified as one of the biggest challenges of SMARTZ in the market.
Product quality management
Figure 3: Product quality management
(Source: Moradlou and Perera, 2017)
The competitive range of the market of smart appliance manufacturing companies is higher due to which quality control management in productivity is required. The other competitive manufacturing industries in the market focus on producing a wide range of options with higher quality for attending to maximum customers (Moradlou and Perera, 2017). Thus, SMARTZ has to attend to strict quality control parameters in the manufacturing procedure for meeting the competitive edge and determining an effective position in the market effectively.
Identified opportunities and strategies to capture opportunities
Deployment of Smart Manufacturing System (SMS)
Figure 4: Deployment of Smart Manufacturing System
(Source: Paiola, 2018)
The attainment of flexible manufacturing procedures helps in determining real-time monitoring and analysis of quick changes that are taking place in the market of smart appliances manufacturing. As stated by Paiola (2018), through the attainment of SMS in SMARTZ, the company will be capable of setting productivity and operating parameters mitigating the issue of meeting the demand of a frequently changing market. The SMS operating attainment in SMARTZ Company can be determined in two respective modes namely semi-autonomous and fully autonomous respectively. The semi-autonomous mode can be implemented in the production in the initial stage based on that the primary concerns of the company are fulfilled effectively (Al-Sharif and Hamas, 2021). However, after attainment of required revenue in the market and determination of required market position the composition of full autonomous mode can be deployed.
The attainment of a fully autonomous system helps in managing manufacturing strategies that are beneficial for supply chain readiness. Apart from that, information and communication technologies that are determined in the business procedure lead to linking business qualities with smart services (Dua et al. 2020). Thus, this strategy will help the company in analysing customer needs, and based on that effective selection of products among the smart appliances are determined for manufacturing. The incorporation of the security system helps in analysing the management system for binding incoming data in determining the manufacturing procedure of smart appliances in the market.
3. Business type of the organisation
The business type of SMARTZ is determined as “Scalable Start-up” in the business type category. As narrated by Deghuee (2018), the respective type of organisation is selected because the company is focused on producing unique products and service types to the customers effectively. This is attained by the introduction of innovative service through a representation of mini smart appliances to the customers by SMARTZ. Through this idea, the company focuses on reaching out to multiple markets and growing the capital income respectively (Ferreira et al. 2021).
4. Funding of the firm
Business idea
The funding of this company can be obtained from the government, venture capital funding, and working capital loan along with invoice finance as well as asset finance. These organizations are considered as the funding provided for the SME in the UK. As cited by Ayegba et al. (2018), additionally, these organizations are the option for the small enterprise to raise adequate funds for their business which can be helpful for the smart appliance manufacturing company known as the “SMARTZ“. Based on the options of organisations which can assist for the company to rise funding while aim for internationalised entire operations globally.
The different types of funders within the UK work differently from each other such as government organisations that provide funds to certain small enterprises which are related to innovation, technology, training, and energy. Along with this context, other funders such as venture capital funding deals with funding for the early stage business which requires support for establishing their business in the marketplace. Based on the different funder’s perspectives “SMARTZ” can apply for funds from the government institutes as the returning rate is less comparatively from the other funders (Dzikowski, 2018). Moreover, the smart appliance manufacturing domain of business falls under the technological and innovation domains therefore applying will be easy for the company.
Angel Investor
Figure 5: Angel Investor
(Source: Koišová et al. 2018)
“SMARTZ” the smart appliances manufacturing organisation is a type of company which is already existing in the marketplace therefore, it would not be possible for the company to approach angel investors. Angel investors are considered as the early investors for small enterprises which are set up newly in the marketplace and require investment for establishing their business in the marketplace. As narrated by Koišová et al. (2018), other than that most of the government undertaking organizations refused their application for the investment then the organisation approached the angel investors or private investors. One of the most impacting drawbacks of private investors compared to government undertaking organizations is the return rate of the investment amount from the companies. Most of the private investors or angel investors do not have any rules and regulations for lending money to the small enterprise whereas returns are set by the investors by themselves as there is no fixed rate for returns (Auer and Jarmai, 2018). This creates impacts on the small enterprise therefore considering the above scenarios SMARTZ would not be using angel investors for raising funds for their business.
Venture capital
The possible capital projection of SMARTZ can be considered as 50000 pounds at the initial stage for managing the initial operations and requirements of the company. As cited by Martinsuo and Luomaranta (2018), based on the capital it is considered difficult for the organisation to establish international operations with other countries. Along with this context, the import and export of the essential gadget will cost more than their capital therefore, considering the scenario funding is required for an organization to extend its business globally.
Crowd funding
SMARTZ is a smart appliance manufacturing company therefore crowd funding is not possible for raising enough funds from the crowd. Moreover, the company is new in the marketplace therefore most of the audience is unknown about the organisation and about their operation in the marketplace (Auer and Jarmai, 2018). Additionally, local people may recognise the company and its functionality as well as their operations however collection of large amounts of funding from their audience is not possible from the local people.
5. Protection of Intellectual
Figure 6: Protection of Intellectual
(Source: Barbu and Militaru, 2019)
Protecting Intellectuals of business ideas is considered essential for the small enterprise however; firstly it is important to understand the importance of intellectual property related to business ideas from the marketplace. As stated by Barbu and Militaru (2019), there are certain aspects that need to be considered for protecting intellectuals related to business ideas. Firstly, it is important for the SME to identify their exclusive rights while preventing possible third parties from manufacturing, producing, and economical exploitation. This can lead the organisation to the development of their own solution without taking permission from the actual owners of the ideas. Along with this context, it is essential for SMARTZ to protect their intellectuals related to business ideas. Secondly, it demonstrates the authentic owners of specific business ideas for the commitment of entrepreneurship based on the ideas as it is considered as new in the marketplace (Browder et al. 2019). Thirdly, it assists the owners of the actual business ideas to value them as their future investment which can lead the company towards future development to produce, manufacture and services.
The above statements are the importance of protecting intellectuals related to business ideas however, there are multiple methods that can assist the small enterprise to protect their intellectual property. The methods which assist the organisation and business to protect their business ideas are patents, trademarks, copyright as well as trade secrets. Patents are considered the most common method for protecting business ideas along with other intellectual properties (Browder et al. 2019). In this method, particular business ideas or intellectual property are registered under the holder’s name which can be an individual name, or else the company’s name and patent registration are valid for 20 years after registering the ideas or property. Additionally, one of the other methods for protecting business ideas and intellectual property is a trademark which is considered as a symbol or sign. This sign or symbol helps the organisation to distinguish their products and services from other company’s products and services. Moreover, these signs or symbols can include specific words, shapes, logos, slogans, colour, and distinct product names.
Other than patents and trademarks there is another method for protecting organisational business ideas and intellectual property which is considered as copyright. As narrated by Ambad et al. (2020), however, copyrights methods work on particular produced related music, sounds, dramatic words, web content, and software. Therefore, it is not applicable for SMARTZ as the organisation is in the field of manufacturing smart appliances for homes and organisations.
Trade secrets are one of the methods which help the organisation to protect their business ideas as trade secrets are considered as certain elements or things which the organisation desires to keep as secret and it has not been registered to government institutions or private institutions (Allen et al. 2017). For this method organizations mostly focus on specific formulas, a list of suppliers and customers, techniques, and financial data which registration may endanger the company intellectual property or business ideas.
6. Expansion of the business
Expansion of business idea in foreign markets
There are multiple ways that can be helpful for small enterprises for expanding their business idea in foreign markets. These ways will assist SMARTZ to expand their business idea in the foreign markets such as research for the new verticals which includes a selection of appropriate target audience, utilization of data for determination of decisions. Along with this context, acquiring essential and necessary certificates and strengthening online existence can be helpful for SMARTZ to enhance their presence for the expansion of their business ideas in their global marketplace (Ambad et al. 2020). Moreover, up-gradation of existing initiatives can be more assist for the company as this is considered as one of the low investments with high rewards for the existing services and products which drive the existing customer base along with new customer base for the products and service which the company can offer in the global marketplace.
Market entry
A monopoly market is considered as the perfect market for the SMARTZ to enter the market as this type of market entry is considered as the realistic market where there are large numbers of buyers and sellers. However, product differentiation defines the company’s existence along with the survival of the organisation in the marketplace.
7. Theories and concepts
Figure 7: Theory of change
(Source: Allen et al. 2017)
Theory of change: Theory of change is considered as one of the required comprehensive descriptions which hold the potential for illustration for desirable changes related to the specific context. This theory mainly focuses on filling the missing part within the organisation’s business operation which holds the potential to leverage the functions to achieve long and short terms (Allen et al. 2017). Additionally, this theory can be helpful for small enterprises to enhance and leverage their operations and functions for high growth in the marketplace.
Concept: The concept of the theory of change for small enterprises is based on multiple phases of development which include analysis of situation and context, identification of preconditions. As stated by Romero and Putz (2018), identification of roles which are related to parties, making of assumptions while explicitly possible risks, validating the possibilities, and turning possibilities into a narrative. This theory of change concept is more applicable for the small enterprise as it assists the business to identify, explore, discover and implement possibilities for the betterment which can leverage and expand the entire business globally.
8. Conclusion
The report concludes that small enterprises such as SMARTZ can leverage and expand their functionality and operations globally with an appropriate customer base, appropriate funding, and marketing style. The study sheds light on the theory of changes and its contribution to small enterprises which can be helpful for SMARTZ. Expanding manufacturing operations internationally along with that protecting intellectual property is essential for a business to maintain its stability and survival in the marketplace.
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