QUESTION

 

The following points will help you organize the format of your evaluative report when considering the concepts and theories that could provide the foundation for a sound business proposal.

1. Table of Contents

2. Overview

   1. An introduction to the concept of a small New Zealand business scenario

   2. A brief overview of each section of the report.

Approx. 200 words

3. Concepts and theories of entrepreneurship, innovation and creativity

In this section you will define and explain how the following concepts relate to your New Zealand small business scenario:

1. 1. Entrepreneurship;

   2. Small business in the New Zealand context;

   3. Innovation and Creativity; and

Approx. 400 words

4. Analyse the impact of internal and external environments from a variety of angles, including SWOT or PESTEL analyses, in context of risk management

By applying common practical investigation/research methods, your discussion will include either:

1. A definition of SWOT analysis within the context of the scenario; and

2. An analysis of the impact of internal and external environments using SWOT analysis within the context of the scenario;

OR

1. 1. A defininition of PESTEL analysis within the context of the scenario; and

   2. Application of the PESTEL tool, to analyse the internal and external environments within the context of the scenario.

Approx. 500 words

5. Discuss selected management principles and practices which support the operational problem-solving and decision making of the business scenario.

In this discussion identify broader issues that will impact the business scenario by applying common practical investigation/research skills. You may discuss;

• Marketing strategy

or

• Proposed sales techniques

or

• Operationa planning

or

• Financial projections

or

• Intellectual property analysis

or

• Trend analysis

or

• Business models

or

• Budgeting approaches

Approx. 600 words

6. Apply practical investigation/research methods within the context of the New Zezaland small business scenario.

This will include:

1. 1. A definition and proposed vision for the business scenario

and

1. 2. A definition and proposed mission for the business scenario

and

1. 3. A brief feasibility study/analysis

or

1. 4. Unique selling point proposal

Approx. 600 words

7. Conclusion

To include:

Recommendations for the most appropriate practices of planning, organising, leading and controlling a small business supported by concepts, theories and best practice.

Summarise the main issues identified from the perspective of the ways in which concepts and theories impact the planning and implementation of a New Zealand small business proposal.

Approx. 200 words

8. References

9. Appendices (if any)

 

ANSWER

 

BUSINESS SITUATIONAL ANALYSIS

Executive summary

This report sheds light on the situation analysis of small businesses of New Zealand under Laundry and Ironing services. The process of cultivating data related to contribution of the small business to the economic growth of the country is able to support this proposal for a new organization under this industry. This report has suggested the management principles based on theoretical approaches of entrepreneurship, creativity and innovation to Paul Laundry and Ironing service to develop sustainability in market of small businesses. The application of SWOT analysis has been presented in this report which can help to influence this organization to take risk for introducing new businesses. It has been recommended that the company need to introduce an innovative system of dry cleaning which will be able to reduce operational costs and focus on consolidate shipment to decrease transportation cost.

Overview

In present days of globalisation, the increased rate of small businesses as well as independently owned companies has supported the growth of economic condition of a country. The present scenario related to small business is able to provide opportunities for the entrepreneurs. In case of New Zealand, the performance of small firms is important to drive the growth of economy. Creativity as well as innovation can be considered as the reasons to call The Engine Room of Growth (nzherald.co.nz, 2012). New Zealand is such a country in which near about 97% firms employing 20 workers or less.

This report is going to analyse the scenario of small businesses under Laundry and Ironing Services of New Zealand to propose Paul Laundry and Ironing Services for introducing new business. Through the process of cultivating data related to the position of small business under this industry, this report has presented an overview of present scenario of small business in New Zealand. The theoretical aspects related to innovation, creativity and entrepreneurship have been presented in this report that will be used in the business plan for Paul Laundry and Ironing Services. Along with both internal and external influential factors, this report has presented effectiveness of management principles to support problem solving and decision making of the new business. Through investigating the data related to Laundry and Ironing Services of New Zealand, this report has suggested some recommendations for Paul Laundry and Ironing Services which will help to gain sustainability in the market.

Analysing concept of entrepreneurship, creativity and innovation

1. Entrepreneurship

Entrepreneurship can be considered as the tendency of the people to manage or organize his or her own business towards profitability. The concept of entrepreneurship is able to support the positive aspects of decision making and leadership style. Entrepreneurship is not only able to lead the process of setting new businesses but also it can lead both development and expansion of ongoing business. In New Zealand, the importance of small businesses based on laundry and Ironing services can be evaluated through discussing regarding residential segment. This segment is dominating online demand of the laundry service market (stats.govt.nz, 2019).

Economic Theory of entrepreneurship and psychological theory of entrepreneurship can be mentioned to support the development of business plan for Paul Laundry and Ironing Services. According to Spence (2016), the aspects of Economic theory tend to receive criticism due to the purpose of failing to recognise open nature and dynamic market systems. On the other hand, through implementing the aspects, this organization will be able to reduce the risks associated with this business. The issues related to lack of economic resource for the new business can be resolved by the authority of this organization through following the aspects of economic theory. Moreover, Burns (2016) has opined that the aspects of Psychological entrepreneurial theory, the emotional elements can drive the spirit of an individual to take risk for introducing new business. Based on this theoretical concept, Paul Laundry and Ironing Services can drive entrepreneurial behaviour.

2. Small business in New Zealand

In New Zealand, the first quarter growth for the small business is at the highest level in two years. Along with the success of service and manufacturing services, the business of Laundry and Ironing Services is able to support the economic growth of the country. The revenue of laundry industry of New Zealand is about 2 billion NZD which has influenced the growth of the business. The growth of this industry of 4.9% is based on the employment of 25,000 in New Zealand (zionmarketresearch.com, 2018). Small businesses in New Zealand make up more than 90% of the business of this country (Shaw, 2017). Less than 1% of enterprises have engaged 48% employees in New Zealand and 1% has engaged 50 to 99 employees in the small businesses. The size category of the small businesses grew 4.6% for the year 2018 (euromonitor.com, 2018). Thus it can be evaluated that introducing new business of laundry and ironing business can develop economic sustainability of this country. (Refer to Appendix)

3. Innovation and Creativity

The creative thinking to implement mobile services, business consulting for the workers, Paul Laundry and Ironing Services will develop the sustainability for the business. Creativity and innovation to the business operation and decision making can help the entrepreneurs of New Zealand to identify and mitigate the risks associated with new business approach. According to Welter et al. (2017), Schumpeter’s Theory of Innovation can help to drive the rapid economic growth of this country by entrepreneurial activities. As per this theoretical aspect, innovation in new services by the organization of Laundry and Ironing Services and innovation in management style will help Paul Laundry and Ironing Services to enhance profitability.

Moreover, based on behaviour of the stakeholders of this industry, it has been analysed that shortage of skilled labour and lack of resources are the reasons behind the failure of this country. According to Whittaker, Fath & Fiedler (2016), innovative ideas related to the facilities for the employees can help to retain employees and labours in this industry. Creativity and innovation in relation to management style is able to refer reconciliation regarding the position of the organization (Dunne et al. 2016). Moreover, in New Zealand, the business of Laundry and Ironing service will be developed by building a monopoly like dismantling existing monopoly.

Figure 1: Theories related to creativity and innovation

(Source: Whittaker, Fath & Fiedler, 2016, p.24)

Analyzing impact of both internal and external environment

The concept of SWOT analysis is able to identify the strengths of the small businesses of New Zealand to evaluate the importance of launching new business of laundry and ironing service. The analysis by using this technique will help Paul Laundry and Ironing Service to use strategic planning technique to measure possible risks of threats for this business. According to Edwards-Schachter et al. (2015), this process can help a researcher to identify internal strengths and weaknesses of an organization and external opportunities and threats faced by it.

SWOT analysis

Strengths Increased outsourcing High gross margin Limited start up risks Attractive discount programs	Weaknesses Limited costs for start-ups High transportation costs Limitation in flexibility of prices
Opportunities Increased rate of demand for commercial cleaning services High rate of labour force can increase residential demand Expansion for online sales Strong relationship with vendors Developing wholesales distribution relationships	Threats Continuous update and changes in regulations Increased insurance costs Increased rate of pricing input Threat of upward pricing Threat of competitors like Ironman West Ltd, Orderly Laundry Services and Orderly Laundry Services

Table 1: SWOT analysis

(Source: hire-a-maid.co.nz, 2019)

Analysis

The strength, the home delivery service for dry cleaning services is able to provide better quality services to the customers. High rate of labour force and quick service to save the time of the consumers can attract more people. This impact of internal aspects of the business of this industry will help the entrepreneurs to introduce new businesses. In New Zealand, near about 70% of enterprises have zero employees which have the potential to dominate the industry (easylifestyle.co.nz, 2019). The limited risks of start ups in this industry can be able to influence the entrepreneur to invest both time and money to introduce new business. Based on these factors, it has been analysed that 28% of the GDP of New Zealand can be estimated to be produced by small enterprises (hire-a-maid.co.nz, 2019). These strengths of this industry is able to increase the demand for the services. Attractive discounts proposed by the authority of this organization can help to attract more people. The opportunity to expand the online services in relation to the laundry and ironing services can help to enhance the profitability of new organization.

On the other hand, in order to introduce start up business, the owner may face the barrier related to limited cost for introducing effective quality services. Lack of flexibility in the price of the services of this business can impact negatively and de motivates the customers. The growth of 23% of small enterprises in New Zealand may face hostile consequences based on the competitions from the existing companies (mangawhaifocus.co.nz, 2019). The threat of upward pricing and increased rate of insurance will cause harm to sustainable growth of the business. The ratio of introducing small businesses in New Zealand has increased by 2.1% since the year 2016 (Rea, 2017). High rate of competition from the existing large organizations and the threat of advanced technologies used in this organization can pose threat to the business of new enterprise.

Discussing management principles to support decision making and problem solving

In order to make the business plan for Paul Laundry and Ironing Services, it can be analysed that by using marketing strategy as the basic principle, the authority can enhance the growth of the business. As per the views of Dunne et al. (2016), the issues related to operational problem solving method can be resolved based on the marketing strategies. It is important to enhance the communication among the workers of this organization to present different views which can help to rectify the mistakes related to customer services. Based on, present scenario of small businesses of New Zealand, the strategies taken by the authority will not only help to develop the business purpose but also it can influence the decision making process.

The owner of this new business will promote the business as mass level for achieving more sponsors. As per the views of Edwards-Schachter (2015), it is important for the business of laundry and ironing to fulfil the needs of individuals collectively. It can be identified that huge range of competition from the existing companies is the broader issue. In relation to the marketing strategy, this organization will use pull strategy and it will communicate the important message to the people along with the help of business promotions. This organization is a small organization which has set barriers regarding limited financial resources for enhancing the business. In order to mitigate the issue, Paul Laundry and Ironing will set the price level by keeping the expenses and the costs under consideration. The authority of this organization will set price for washing, ironing, drying, starch and delivery at lowest possible rate to attract the customers and to insist the customers to switch over from the existing organizations (Whittaker, Fath & Fiedler, 2016).

Apart from these, in order to mitigate the risk factors related to this new business of laundry and ironing, the organization will focus on segmentation, targeting and positioning to grab the new market in Otago, New Zealand. After setting goals to introduce the business aspects for this organization, the owner of it will analyse the position of this industry in the business market of New Zealand. By maintaining consistent development of services along with the help of innovative technologies, this organization will set target customers based on the urban locality of Otago. It will focus the women ranging from age group of 30-50 years to enhance sales and profitability (stats.govt.nz, 2019). This organization will place the business in the urban locality to influence the customers and modern trends. For the first two months, this organization will promote the business through the channels of social media to introduce the services to a huge number of customers. Along with these, this organization will distribute brochure and leaflets for the promotion of new business.

Investigating the small business context of New Zealand

Proposed vision

A vision has been set for Paul Laundry and Ironing Services that will align with their organisational objectives and deliver valuable services. Prior to highlight the vision of the proposed small business, some organisational objectives have been set that are mentioned in the following:

• To deliver a service that is valuable and cost effective

• To include technological advancements within service delivery process and maintain a standard quality

• To be innovative and honest at service

• To show professional behaviour

Based on the above-mentioned objectives, the vision that can be set for Paul Laundry and Ironing Services is:

We commit to provide laundry, ironing and dry cleaning services in Otago, in a quicker, efficient and cost-effective manner to our customers

It is important for any organisation to follow specific principles and values once they are planning to undertake a business. In case of Paul Laundry and Ironing Services, the following values are highlighted, which the company will maintain once they launch their start-up business:

• Efficiency

• Hygiene

• Teamwork

• Value of delivering on time

• Professionalism

• Integrity

• Timeliness

• Honesty

Proposed mission

The company will focus on providing laundry and iron services to the residents of Otago, New Zealand. The company will provide ironing and dry cleaning services by using modern and technologically advanced machineries. This will allow them to grow efficiency and capable of sustaining in the market by making a customer base (easylifestyle.co.nz, 2019). A mission statement that can be proposed for Paul Laundry and Ironing Services is:

Our mission is to enhance way of living of our customers and provide convenience. We aim at being one of the most preferred and liable laundry and ironing outfit by means of reliability in the work procedure we maintain.

Unique selling point proposal

Through increasing the distribution process and product development process, this organization will set a certain point which can influence the buying behaviour of h customers. In order to attract the customers, the authority of Paul Laundry and Ironing Services needs to focus on green brands to influence the laundry care. This organization will choose the USP to introduce eco friendly detergent to increase profitability. Moreover, Ecostore along with a product portfolio will be able to drive strong performance (mangawhaifocus.co.nz, 2019).

Along with these, this organization can focus on Softwash, which can be considered as complete dry to dry cleaning system. The process of implementing this advanced dryer and cleaning system can reduce the risks of damaging the fibre of the clothes (Rea, 2017). On the other hand, Poseidon can be considered as the other option for this new organization to set their USP. Poseidon is able to offer customisable and pre set program and it claims less amount of water than other systems of wet cleaning.

In case of dry cleaning, introducing BOWE, the premium machine can be optimised along with some maintenance features. This machine is able to secure the protection against oxidations and corrosions of chemical agents. Apart from these, the Excellence 2.0, the multi-solvent machine can combine high cleaning quality and can reduce the operating costs (Rea, 2017). Through implementing such unique selling points, Paul laundry and ironing Services will achieve success by attracting the customers.

Figure 2: Innovative dry cleaning and wet cleaning systems

(Source: Rea, 2017)

Conclusion

Recommendation 1: Need to plan innovative system of dry cleaning which can reduce the operational costs and it focus on consolidate shipment to reduce transportation cost

Specific	It is specific as it can help to enhance the sustainability of the new business
Measurable	It can be considered as measurable as it can reduce the risk factors related with the business
Attainable	It is attainable as it can be achieved by the owner of the small business through implementing management theories
Realistic	It is realistic as it can help to establish new start up and to achieve success
Time bound	It is time bound as it can be achieved within a short period of time about 6 months

Table 2: SMART recommendation

(Source: Based on views of Whittaker, Fath & Fiedler, 2016, p.21)

Based on the aforementioned sections, it can be concluded that the main issues that Paul Laundry and Ironing Services will face in New Zealand laundry industry is competition from existing rivalries. Being a start-up, it will be difficult for the company to cope up with the competitiveness in the external market. However, based on Economic Theory of entrepreneurship and Schumpeter’s theory of innovation, areas of improvement have been proposed along with essential pull strategy of marketing that will allow the company sustain in the market and develop customer base.

Reference list

Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited. Retrieved on 3 February 2019. Retrieved from http://edf-vec.org/gen/html/azl/kitabxana/62.pdf

Dunne, T. C., Aaron, J. R., McDowell, W. C., Urban, D. J., & Geho, P. R. (2016). The impact of leadership on small business innovativeness. Journal of Business Research, 69(11), 4876-4881. Retrieved on 4 February 2019. Retrieved from http://isidl.com/wp-content/uploads/2017/07/E4303-ISIDL.pdf

easylifestyle.co.nz (2019) Where kiwis spend their time. easy lifestyle. Retrieved on 3 February 2019. Retrieved from http://easylifestyle.co.nz/beta/infographic-where-kiwis-spend-their-time/

Edwards-Schachter, M., García-Granero, A., Sánchez-Barrioluengo, M., Quesada-Pineda, H., & Amara, N. (2015). Disentangling competences: Interrelationships on creativity, innovation and entrepreneurship. Thinking Skills and Creativity, 16, 27-39. Retrieved on 5 February 2019. Retrieved from https://www.sciencedirect.com/science/article/pii/S1871187114000789

euromonitor.com (2018) Laundry Care in New Zealand. EUROMONITOR INTERNATIONAL. Retrieved on 4 February 2019. Retrieved from https://www.euromonitor.com/laundry-care-in-new-zealand/report

hire-a-maid.co.nz (2019) IRONING & LAUNDRY. HIRE A MAID. https://hire-a-maid.co.nz/ironing-and-laundry/

mangawhaifocus.co.nz (2019) New high-tech laundry service. The MANGAWHAI FOCUS. Retrieved on 5 February 2019. Retrieved from http://www.mangawhaifocus.co.nz/Archives/September+19th+Issue/New+high-tech+laundry+service.html

nzherald.co.nz (2012) NZ’s engine room in need of a rev up NZ herald. Retrieved on 4 February 2019. Retrieved from https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10798694

Rea, A. (2017) New technology may share the laundry load. Stuff. Retrieved on 5 February 2019. Retrieved from https://www.stuff.co.nz/life-style/homed/other-spaces/94255226/new-technology-may-share-the-laundry-load

Shaw, A. (2017) Solid start to the year for New Zealand small businesses. NZ herald Retrieved on 4 February 2019. Retrieved from https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11841869

Spence, L. J. (2016). Small business social responsibility: Expanding core CSR theory. Business & Society, 55(1), 23-55. Retrieved on 5 February 2019. Retrieved from http://journals.sagepub.com/doi/pdf/10.1177/0007650314523256

stats.govt.nz (2019) Household contents and services in the consumers price index. Stats. Retrieved on 5 February 2019. Retrieved from http://archive.stats.govt.nz/browse_for_stats/economic_indicators/CPI_inflation/household-contents-and-services-in-the-cpi.aspx

Welter, F., Baker, T., Audretsch, D. B., & Gartner, W. B. (2017). Everyday entrepreneurship—a call for entrepreneurship research to embrace entrepreneurial diversity. Retrieved on 4 February 2019. Retrieved from https://www.researchgate.net/profile/William_Gartner3/publication/309145495_Everyday_Entrepreneurship-A_Call_for_Entrepreneurship_Research_to_Embrace_Entrepreneurial_Diversity/links/580f185d08ae51b86397264f/Everyday-Entrepreneurship-A-Call-for-Entrepreneurship-Research-to-Embrace-Entrepreneurial-Diversity.pdf

Whittaker, D. H., Fath, B. P., & Fiedler, A. (2016). Assembling capabilities for innovation: Evidence from new zealand SMEs. International small business journal, 34(1), 123-143. Retrieved on 2 February 2019. Retrieved from http://journals.sagepub.com/doi/pdf/10.1177/0266242614548931

zionmarketresearch.com (2018) Zion Market Research. Retrieved on 5 February 2019. Retrieved from https://www.zionmarketresearch.com/report/online-on-demand-laundry-service-market

Appendix

Birth and death of employing small business

(Source: https://www.beehive.govt.nz/sites/default/files/2017-12/Small%20Business%20-%20Annex%203%20Small%20Business%20Factsheet.pdf)

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