Business Idea
Part A and Part B
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Table of Contents
Part A- Business Idea Proposal 3
Part A- Business Idea Proposal
Introduction
The world is expanding rapidly and due to globalisation, businesses are bound to take innovative actions so that it can thrive in any competitive environment. The proposal shall be prepared by considering one of the innovative companies, Shop Caddy. It is involved in buying and selling of second-hand products. The business utilises social media platforms for conducting its operations. In this proposal, the external and internal environment of the business shall be evaluated to understand the feasibility of business expansion.
Business background
Shop Caddy is an innovative business entity and it is aiming to expand in Kamloop, Canada. The nation is renowned for its second-hand market. The buying and selling industry can contribute nearly 12% of the nation’s GDP. However, while operating the buying and selling a business, the company has faced online transaction-related issues. A business operating in this industry needs to ensure the transaction of money in a secure way. The business should make efforts to attract and retain the attention of customers for a long time.
Objectives
The business is planning to expand its operations in Canada and the key objectives are-
- To increase the annual revenue of the company by 12%
- To attract and retain customer’s attention and enhance the level of satisfaction
- To increase markets across other potential markets within 5 years
- To elevate the level of customer engagement within 5 years
PESTEL analysis
In order to understand the external business environment of Shop Caddy, it is necessary to conduct a PESTEL analysis. The external environment in Canada and the impact on buying-
Selling industry can be evaluated using this method.
| Factors | Analysis | Impact |
| Political | Ø Politically stable nation Ø Maintains good relations with neighbouring countries Ø Democracy prevails with a parliamentary system of governance
| Positive |
| Economic | Ø Canadian GDP is expected to be more than USD1.8 trillion in 2020 (Canada country profile. 2020) Ø World’s best banking system Ø Effective financial system and fiscal policy Ø The economy is mixed and highly developed | Positive |
| Social | Ø Consistent population growth Ø The population is diverse and manageable at the same time (globalnews.ca, 2020) Ø People from different belief and faith systems resides in the nation | Positive |
| Technological | Ø Technology in Canada continues to play an influential role Ø Technological advancements are similar to any other developed nation Ø Lots of opportunities exist for business expansion
| Positive |
| Environmental | Ø The nation faces severe environmental challenges Ø Rapid climate change is one of the serious concerns Ø Companies need to adhere to strict environmental laws | Negative |
| Legal | Ø Employers need to comply with minimum standards for employee management Ø The law encourages partnerships, joint ventures Ø The scope of developing a corporation is present for internal businesses
| Positive |
Table 1: PESTLE analysis
(Source: Created by the learner)
Porter’s five forces analysis
Porter’s five forces can be used to evaluate the threats that Shop Caddy might encounter while operating in Canada.
- Supplier’s bargaining power– Online sites promote purchase and sales of products, therefore, suppliers have low power in the second-hand goods industry.
- Buyer’s bargaining power– Customer’s power is high because customers have a range of options. They can easily bargain because low-priced and second-hand goods are easily available online (com, 2020).
- The threat of new entrants– It is also high because new businesses are emerging rapidly and Shop Caddy can easily lose its target customer base.
- Substitution threat– Again, the threat is high because the business model of Shop Caddy is not unique. It can be easily imitable.
- Industry rivalry- The threat level is moderate because businesses in the same industry offer similar services (ca, 2020).
| Factors | Threats |
| Supplier’s bargaining power | Low |
| Buyer’s bargaining power | High |
| The threat of new entrants | High |
| Substitution threat | High |
| Industry rivalry | Moderate |
Table 2: Porter’s five forces
(Source: Created by the learner)
SWOT analysis
| Strengths Ø The organisation has a dedicated team of individuals Ø The second-hand markets industry is promising
| Weaknesses Ø Inadequate experience of operating in a competitive Canadian market Ø Lack of practical knowledge regarding the markets |
| Opportunities Ø Middle-class customers are easily attracted to low-priced goods Ø Rising business opportunities at the global level | Threats Ø Severe threat from competitors such as Savers Inc, Winmark Corporation etc. |
Actions for assessing the feasibility of the business idea
After analysing the external and internal environment of the business, it can be suggested that the Canadian business market for second-hand goods is a potential market. The market is full of opportunities only if the company uses the social media platform comprehensively. Competition and threat of substitution are high, however, the company can thrive in the market by using a sustainable marketing strategy.
Conclusion
The proposal outlines the key objectives of Shop Caddy and ways in which it has the potential to expand and thrive in a new market. Internal environment has been evaluated using SWOT and the external has been evaluated using PESTEL and Porter’s analysis.
Part B- Pitch presentation
The pitch has been prepared considering two major irritations from the case.
- Excessive reliance on technologies and apps
- Identified issue- When people are reliant on technologies and apps, they become dependent and it does not ensure long-term health and wellness.
- Probable solution- It is feasible to utilise the technology for enhancing neurological and cognitive learning, however, awareness levels of the people should be increased. Without relevant body awareness, it is detrimental to rely on apps (Edlin & Golanty, 2015). People can be offered training sessions where they will engage with physical activities. They can consult their health issues with trainers during classes.
- Lack of awareness of the majority of the population regarding neuromuscular control and proprioception
- Identified issue- Poor proprioception is the result of disorders or injuries. It can severely affect the proprioceptive system, which sends signals to different sections of the brain (Hillier, Immink & Thewlis, 2015). It leads to poor body awareness and low control over the neuromuscular system. Senses are not well-informed and balance or equilibrium is lost.
- Probable solution- It is possible to improve the proprioception of the people by encouraging them to participate in vibration therapy and balance exercises. It can enhance proprioception of the lower limb. Moreover, muscle strength also improves.
References
Canada country profile. (2020). Retrieved 24 July 2020, from https://www.bbc.com/news/world-us-canada-16841111
Canada’s second-hand economy is growing, according to a new report. (2020). Retrieved 24 July 2020, from https://globalnews.ca/news/6124574/canada-second-hand-economy-growing-report/
Edlin, G., & Golanty, E. (2015). Health and wellness. Jones & Bartlett Publishers.
Hillier, S., Immink, M., & Thewlis, D. (2015). Assessing proprioception: a systematic review of possibilities. Neurorehabilitation and neural repair, 29(10), 933-949.