Investigating Entrepreneurial Opportunities - Essay Example

Investigating Entrepreneurial Opportunities Introduction In the recent year, the American construction industry has developed in a very drastic way. Nonetheless, there are very few construction companies that have specialized in setting up swimming pools and fountains in the gardens of houses. The few companies that are doing this have dominated the business giving room to monopoly. The problem with monopoly is that the people in business are able to control the business for lack of competition. According to Grant (2013, p. 248) monopoly disadvantages the consumer in many ways but mostly is the fact that they have no options to choose from and hence are vulnerable to manipulation and exploitation from the monopolists. Many at times they are forced to pay high rates and prices. This is because the consumers need the services or the product but are limited to choice. This is regardless of whether the product and services are of the right quality. Business Idea (Q1)A, need (500) words The above situation is the reason why we decided to start a business that focuses main on setting up swimming pools and fountains in the gardens of houses. Every American home is now embarking on setting up swimming pools in their back yard or at least a fountain. New homes and those that have been constructed before are all seeking to have an extra facility that will make the house more self sustained and reliant. Apart from home, new markets like hotels and resort centers are very attractive since clients want to go to places that can meet their leisure needs. Combining these two potential markets the business is guaranteed to succeed and make profits. There are other opportunities related to the same like cleaning and maintaining of the swimming pools and springs. We intend to specialize in this area also in order to guarantee our clients a complete package that will run even after the installation or set up of the pool or spring. By specializing in this business, it means that even construction companies that do not set up swimming pools and fountains will be seeking to give our business sub-contracts in order to satisfy their clients. Likewise, individual home owners will be seeking our services when the construction companies they are working with are not able to facilitate this service. For a start, such a business will need a trained team that will work on commission for every work done. A training program will also be put in place for new employees in order to make sure that they are working within our standards. Maintaining first class standards is going to be our unique market proposition and therefore we cannot comprise that. The capital needed to start this business might seem high but times have changed especially in starting new businesses. Financial institutions are now will to give grants and loans to be used as capital for business ideas that are viable and that will give them returns quickly. This specifically applies to businesses ideas that have potential like the one in subject. In most cases, the financial institutions take this initial step to make a capital investment as a way of creating a long-term partnership with the new business. The government and the federal government have also been very fair to individuals and organizations that have viable business ideas and proposals that can guarantee long-term as well as short-term returns. There are other corporate and companies that make investments by lending capital to start ups and in return become a shareholder in the company. But the most common one are the venture capitalists. Organisation for Economic Co-operation and Development (2008, p. 127) say that in the U.S there is a well developed bond market that provides debt capital for organizations and individuals to start new businesses. Draper (2011, p. 102) adds that venture capitalist Bill Draper has been working with entrepreneurs in fabled Silicon Valley and other parts of the world to finance their startups and this has helped many achieve their dreams. Marketing Mix (Q1) B , need (400)words This part contains 400 words exactly. Do not include market research. The 7Ps Product As such, we are dealing with a service. The setup swimming pools as well as water fountains in homes There are few companies that have specialized in this industry and for the few existing, there rates are exploitative to the consumers. By setting up both swimming pools and water fountains, we will have an advantage over companies that specialize in pools alone. Price The pricing will be based on the market as well as the geographic segment. The market will entail both the market of resources and equipment to be used and the market demand for our services. Nonetheless, our competitors will have an influence on this. We will either improve the service and work with their rates or work with their standards of service at a lower rate. Place For a start, our services will be limited within the USA but as the business continues to grow, we will expand to other parts of the continent and the world. According to Czinkota and Ronkainen (2014, p. 11) the growth of a new business to new markets is largely affected by the performance in its initial market though this is not always the case. Promotion Advertisements in home magazines, newspapers and televisions setting up of billboards in junctions going to residential places and estates Three pilot project will also done at discounted prices in order to create the company’s portfolio and sample for other potential clients to see what the company can do. Participation in home expos as well as working in partnership with construction companies that do not offer our service People The customers these are families with homes that need to set up new pools or upgrade their existing ones. Hotels and other hospitality related areas that need to set up swimming pools. Employees trained in construction. A well trained and experienced management team. Process Client briefing and sharing of ideas on the kind of swimming pool or water fountain they prefer. Designing of 3D models of swimming pools and fountains Site visit and excavation Construction of the swimming pools and fountains Physical evidence The trademarks of the company will be; strict use of first class material for the construction work. Lighting systems within the pools Use of monuments in the water fountains Weekly pool cleaning services to be provided as an after sale service. This will be part of the budget for the construction. Market Research The need for the Market research Considering that this is a new business, there is needed to understand the market we are intending to venture into. As stated earlier, there are few companies that have specialized in setting up of swimming pools and water fountains. This market research will help us understand why the situation is as it is. We also need to understand the trend of the market, competitors and other challenges that come with the industry. Research problem In this research, there are several things we need to find out regarding the market we want to venture into. As stated earlier, the construction industry has developed allot but despite that there are few companies that have specialized in setting up of swimming pools and water springs. This forms the basis of our research problem; to find out why few companies are doing the setting up swimming pools and water springs. Research objectives How many companies are involved in setting up swimming pools and water springs. What are the challenges involved in setting up swimming pools and water springs. What is the average cost of setting up swimming pools and water springs. How many homes have swimming pools and water springs. How many people are willing to setup swimming pools and water springs? What are the government requirements for companies to setup swimming pools and water springs? What are the government requirement for homes to setup swimming pools and water springs? Research Design This research will use descriptive research design as we seek to answer questions stated above in the research objectives. This design will be more appropriate as our research involves trying to understand companys approach to the industry, consumer attitude to the services we are intending to offer and the general trend of the industry. Types of information and sources Basically, primary and secondary information is necessary in this research. Primary information will be acquired from construction companies, the government/state officials and consumers. Secondary information will be acquired from construction company’s records, government policies and quotations from suppliers of building and construction materials. Methods of accessing information Door-to-door interviews Office interviews Telephone conversations Email surveys Reading of records Design data collection forms Structured questionnaires for home owners, construction company owners and suppliers of construction material Observation forms at the company records, government records. Sample plan and size Sample elements Home owners Hotels Construction companies Suppliers of construction material Government depart of construction and building Sample frames Estates and residential Hospitality industry Registered companies Government Sample plans Owners of homes with space for swimming pools Hotels with space for swimming pools Companies doing constriction of homes and hotels Companies supplying constriction materials for homes and hotels Department governing construction in homes and hotels Sample size 1000 Home owners 50 Hotels 10 Construction companies 10 Suppliers of construction materials 2 Government departments governing construction in homes and hotels Data Collection We will be using both qualitative and quantitative methods to collect data. This is because the research seeks explanatory information and at the same time seeking figures. Data analysis Actually, data analysis will be done by the computer to ensure that we have minimal error. Verification of raw data>Input data into computers>Code the data in the computer>Tabulate the data Preparation and Presentation Use of SPSS for preparation of the data Present on oral and written form Information Knowledge pyramid (Q3) Need (550) words USA is arguably the nation with the highest number of swimming pool but comparing with the nations population, there are very few. Recent research has indicated that there are about 14 million residential swimming pools in the US, and about 500,000 public swimming pools. 36% of children aged between 7 and 17 years and 20% adults in the United States swim at least 10 times in a year. Swimming is said to be the fourth most favorite recreational activity in the US and primarily the most popular recreational activity among the children aged 7 to 17 years. Considering that and comparing the country’s population of almost 320 million people, then there is a huge shortage of swimming pools in the USA. If we were to combine both the residential and the public swimming pools, we will get at most 15 million swimming pools. Now try sharing this number of swimming pools among 320 million people. We will have about 21 people sharing a swimming people. The number may look small but the fact is 96.3% of these swimming pools are privately owned and they would rarely share them. This leaves a small 3.7 % of swimming pools to be shared among the huge number. The remaining 3.7% of swimming pools are public owned and that does not make them free for use. They need people to pay some fee in order to access them. According to Birch (2006, p. 148) the government uses public facilities and utilities as a means of collecting revenues from the public. Somebody may argue that they pay taxes and that such facilities should be made free to them. There are about five common types of swimming pools that can be used for residential. First is the outdoor in ground pools. The starting price for installation of such pools ranges around $7,500 the pools offer very excellent deep swimming experience. The other category is Endless pools also known as swimming machines. The benefit of these pools is the fact that they use very little space but gives an individual great experience. Their starting price is $15,000. The next category is the Jacuzzi. They are not used mostly for swimming. Their starting price is $1,800. The other pools are the outdoor above ground pools. These are the most common swimming pools among home owners. The starting price for these pools is about $600. They come with different swimming accessories. The last category is the indoor in ground swimming pools. Their starting price is about $25,000. This price can go as high as $100,000 depending on the model an individual prefers. The above issues might be the reason why there are still a huge number of people who do not have their own swimming pools. If the cost of the cheapest pool is about $600, it means that one will also need to have the space to set up the facility. Not all people can afford this. Nonetheless, $600 is fair price if you were to compare to the benefits that come with it. As the situation is right now, about 300 million people are relying on public swimming pools. Out of this number, majority of them can afford to have a $600 swimming pool at their home. These are the clients we are targeting to work with. Leadership and management (Q4) Need (1000) words for part A & B Running a company requires both leadership and management. Individuals who posses both of these qualities are considered to be more effective in their work Management focuses of setting goals, making decisions and making sure that operations are running in order. According to DuBrin (2012, p. 142) management by objectives involves is a system used by most managers. It also helps those setting goals and objectives that will help the productivity of the company. The managers then rolls down these objectives and goals to the rest of the staff or employees for execution. It is the role of the managers to make necessary measures that will ensure attainment of these objectives. Nelson et tal (2012, p. 24) adds that objectives and goal setting help the managers evaluate the work of their employees as well as general performance of the company or business. Objectives and goals also form part of long-term strategies. They therefore play a key role in strategy implementation. From the case study, every regional manager has a role to play in ensuring that the city managers are answerable to the companys policies. The city managers on the other end have a duty to ensure for example that the EQSi is followed by each employee. These are duties and responsibilities based on management. In most cases, the managers will put much of the focus on the companys systems and structures. They will try to maintain these systems and structures. The managers from Enterprise have the duty to ensure that the systems of operations are maintained at all times. According to Weele (2006, p. 318) the managers play a crucial role in ensuring that company policies are implemented. Decisions affecting these policies and standards are also made mainly by the managers. This is sometimes different depending on the management style in a company or used by an individual. Conversely, leadership could be argued on any level of a business or a company. Both managers and employees can be leaders in their own capacity. Leadership has so much to do with achieving the objectives and goals of a company. It involves working together with the rest of the staff and motivating and influencing them to work hard towards achieving the goals. The case study if Enterprise practices leadership from the top level management to the low level. The employees are allowed to be their own leaders in making decisions concerning customer service. City and regional managers work closely with their employees and lead them to make decisions concerning their work. Leadership plays a key role in ensuring that employees understand the strategies in place in a company and the objectives and goals they are working towards achieving. Weiss (2013, p. 37) argues that employee leadership is the driving force towards a business achieving its goals. If the management is able to allow the employee lead, then they are likely to deliver. Flynn (2008, p. 39) adds that management should go beyond policy making and strategic planning. The implementation of these strategies needs leaders who will work with the rest of the employees and motivate them. Democratic leadership comes in two forms; persuasive and consultative. Whichever the case, the effect on employees can lead to improving the performance of the business and also improve employees life in general. According to Gassper (2006, p. 231) the advantage of democratic leadership is that it allows different ideas from employee some of which are very vital. This form of leadership also motivates the employees. The case study shows how city managers are able to seat down with their employees and make decisions regarding their region. The company has allowed each region to have their own decisions as a way of improving their services to the public. When employees improve the services, they are able to flourish in their work and this leads to better pay. Their lives in general are also improved. According to Sprenger (2010, p. 53) democratic style of leadership motivates employees to participate in decision making. This also lifts their sense of belonging to the company and generally improves their performance. Decisions made by employees most times lead to the meet of the society needs. In the case studies the cab drivers are closer to the clients and therefore, their input in the decision making process is very instrumental in regard to market requirements. Organisation for Economic Co-operation and Development (2010, p. 65) say that one of the most key decision making models is the one involving employees/labor and management. The employee gives a closer perspective of the customer. The employees from the case studies are able to participate in decision making; this in return allows them to have a sense of ownership to the company. The advantage of this is that the employees will own the company and therefore work even harder to achieve the goals set and objectives. According to Citic (2003, p. 1236) employee ownership of a business does not necessarily have to be in form of shares. Their participation in decision making makes them feel part of the company. Democratic leadership allows employees to make decisions independently and in freedom. In the case study, wherever a car is involved in an accident, the employee has to make a quick decision in regard to that situation. This in the end will help the employee improve their skills in terms of crisis management. This leads to employee’s self-actualization. According to Kaklauskas (2015, 157) participation of employees in decision making leads to satisfaction of high-needs. Aamodt (2013, p. 372) adds that self-actualization and reach to full potential of employees is much dependent on satisfaction of all the high-end needs. By allowing employees to participate actively in the running of the company, they are able to meet these needs. This consequently leads to improvement of employee’s lifestyle and in general boosts their self-esteem. The effect of this will eventually be translated to their productivity at work. The company will therefore start experiencing success However; democracy does not always guarantee success of a company. Conclusion The business idea to set up swimming pools is brilliant and there is a great opportunity to execute it. Considering that there are very few construction companies that have specialized in this area is a boost to new ventures into this business. Nonetheless, market research is very vital in ensuring that the challenges faced by the few existing companies have been taken care of. The target market is not only available but also massive. There are many homes that need the swimming pools and spring but do not have the right experts to advise them and execute the job. The same case applies to hotels and resort centers. A proper market research will enable the new business to analyze why the construction companies have not ventured or specialized in this ready market. It will also find out the cost of raw materials and necessary equipment needed to set up the swimming pools and springs. This cost and maybe government policies might be the reason why the construction companies have kept off from this business. For that reason, facts should be collected to ensure that risks have been reduced to the minimum. For an effective business to pick up there is great need to have an effective leadership. In the case study, we realize that the success of Enterprise is based on the leadership style. One clear thing is that the company incorporates different leadership styles on different issues and levels. This will also be the system to be used in the new business. The use of democracy is helpful but other leadership styles like Laizer’s Faire can be equally effective in certain situation. Leadership and management are intertwined. While management calls for delivery, setting of goals and achieving result, leadership is based more on the process to be taken to achieve the goals. Leadership involves motivating employees, encouraging them and participating in the whole process. The employees and management staff, both have a role to play in leadership. Reference: Top of Form Grant, S. (2013). Cambridge international AS and A level economics: revision guide. Cambridge, Cambridge University Press. Bottom of Form Top of Form Draper, W. H. (2011). The startup game: inside the partnership between venture capitalists and entrepreneurs. New York, Palgrave Macmillan. Bottom of Form Top of Form Czinkota, M. R., & Ronkainen, I. A. (2013) International marketing Mason, OH, South-Western Cengage Learning. Bottom of Form Top of Form Birch, E. L. (2006) Rebuilding urban places after disaster lessons from Hurricane Katrina Philadelphia, Pa, Univ. of Pennsylvania Press. Bottom of Form Top of Form Weele, A. J. V. (2006). 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