BUS 227 Aditya Nagpal PDF

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BUS2 27 Ne wBus i ne s sDe v e l opme nt CRN15 979 SD1

Da nKi m Par t1( Cas eSt udy1)

SUBMI TTEDTO–Pr o f . Mi keI v ano f SUBMI SSI ONBY:Adi t y aNa gpal STUDENTI D:30 017 756 6

STUDENTEMAI L:Adi t y a. Na gpa l @s t ude nt . uf v . c a

GROUPMEMBERS Aditya Nagpal- 300177566 Pranav Chopra- 300182058 Manpreet Singh Bhathal- 300177666 Sargun Kaur- 300177356

QUESTION AND ANSWERS INDIVIDUAL ANSWERS Question 1) If Dan came to you asking for advice about whether to pursue this idea, what advice would you provide? Answer 1) If Dan approached me for advice, I would suggest: • As a result of Dan's research, we see that the product has latent demand, he should follow his plans concerning the concept, which is again, in fact, the need for a product that the buyer is unable to meet, either he is unable to point it out himself or he does not know what is lacking until it has been determined. • The concept and production of Dan's products are unique, but if enough ladders are not produced, Dan will not supply the inventory to any single business or industry. • A long-term, forward-looking strategic approach with the fundamental objective of achieving a sustainable competitive edge is a marketing strategy. Question 2) What aspects of Dan’s background and personality traits are suited to owning his own business? What aspects might hinder his success? Answer 2) The aspects of Dans background and personality traits that are suited to ownership are: 1 He is hard-working and self-motivated, which can be seen from his determination to do more even if the owner of the company does not want to expand. Dan also spent a lot of time developing his idea, which shows he's ready to do whatever it takes. 2 As stated by the owner of the company, Dan is also ambitious, reliable, and independent. The aspects that could hinder his success are as follows: 1 Dan did not do enough research that could later cause the business to fail. 2 Dan's pricing of the product could be a huge setback for his product.

Question 3) Briefly discuss aspects of the product and business that may contribute to or hinder the success of the business? Answer 3) The contributing aspects to performance are: Active management allows an organization to be run effectively and efficiently. Effective communication: It helps to make decisions about how the company functions at a level and with precision. Organizational performance improvement: The products that have to be constantly improved are of greatest value to customers because they can help a business attract a much wider customer pool. The following aspects could impede success: • Competition: The rising competition in your area of expertise can be one of the key factors that could impact a business. • Patience: patience is essential to success, good results have to be expected, and no hasty decisions harm your company. • Resource availability: this is a point that leads to companies collapsing as if resources were missing, the company can't carry on running and contributing to the failure of a corporation. Question 4) What positive things has Dan done in investigating the new business? Answer 4) Dan has taken steps and done many good things in his career, such as studying the latest trends online, debating business with entrepreneurs, taking his friend's and families' views, going to his local library, and assessing his target customer market. Question 5) What additional information should Dan obtain before completing his feasibility analysis?

Answer 5) He should be able to obtain information about the number of development organizations, which can be a business element for its market zone (material, siding, and home re-modelling). He must determine whether or not he can manufacture high volumes of stepping stool rails to meet the requirements on time. He should also check whether organizations sell comparable goods in the market, and should also achieve their abilities and various elements, such as the entire industry and so on. Question 6) With the information provided, prepare a feasibility analysis for the homeowner market? Answer 6) The future demand can be calculated as follows: 260968 x 0.10 x 0.20 = 5219 rails 5000 x $40 = $200,000 The market share should be the same as no obvious competition Profits foreseen $200,000 — $50,000 = $150,000 gain

Question 7) What other information would make this calculation more accurate? Answer 7)  An estimation of other expenditures, including overhead, marketing, and Dan's salary.  It should also get an estimation of the number of enterprises that can use its commodity, as previously stated.

GROUP ANSWERS

Question 1) If Dan came to you asking for advice about whether to pursue this idea, what advice would you provide? Answer 1) I would definitely support his idea because his product which is Ladder Rail is the best version of ladders that are available in market because they are more stable, safer for construction industry workers and homeowners and are lightweight also. Moreover, no additional person is needed to hold the ladder. Hence , his idea can surely create hype about his product in market, so I would definitely encourage him for his idea.

Question 2) What aspects of Dan’s background and personality traits are suited to him owning a business? What aspects might hinder his success? Answer 2) Dan comes from a background of entrepreneurs as his own father owned a restaurant which had instilled in him a yearning to be his own boss as well as expand the business to his own liking. Considerable amount of research including browsing on the internet about his area of interest, talking to entrepreneurs,

taking the opinions of family and friends, visiting public

libraries’ was put in by him which shows abilities such as problem solving, strategic planning and a 5 year job experience which is all essential before leaping into an entrepreneurial endeavour. Also, as mentioned in the case Dan is ambitious, dependable and hardworking. On the contrary, Dan might not be successful in his idea because it is solely based upon the need of the consumer and not every homeowner may want to purchase or even may not even know how to use ladder rails which limits his target market by a considerable amount. Among all the positive responses that Dan received, some experienced entrepreneurs weren’t supportive of Dan’s idea as they believed that he

wouldn’t be able to meet the demand even if his idea took off as well as his wife Suzie was apprehensive of his business idea. Question 3) Briefly discuss the aspects of the product and business that may contribute to or hinder the success of the business. Answer 3) Aspects of product that may contribute to its success are : 1) The product is very unique and better from the existing ladders because it is more stable , safer and lightweight . 2) Targeted towards houseowners and construction workers , as homeowner are largest consumer in number because everyone in Canada is a homeowner and may need ladder for certain situations and construction workers may require ladder most of the time .Therefore , targeting right type of customer for your product increases probability of your product’s success. 3) Proper Research was done before introducing the product , hence

this

increase the chances of success and decrease the chances of failure. Factors contributing to hinderance to product’s success are : 1) The price set by Dan for Ladder Rail which is $40 , if consumers think price of the product is very high in comparison to benefit , than people may avoid purchasing Ladder rail and may fail . 2) If the quality and life of the ladder would not be in great and long lasting then also people may not purchase and may fail in the market Question 4) What positive things has Dan done in investigating the new business? Answer 4) Dan has taken initiative and done many positive things in his business like researching online about the latest trends, talking to entrepreneurs, taking the opinions of his family and friends, going to his local library as well as making estimations of his target consumer market. He even spent months on

developing a prototype for his business by recognising the flaws and developing a suitable solution. Question 5) What additional information should Dan obtain before completing his feasibility analysis? Answer 5) He should be able to obtain information about the number of development organizations, which can be a business element for its market zone (material, siding, and home remodelling). He must determine whether or not he can manufacture high volumes of stepping stool rails to meet the requirements on time. He should also check whether organizations sell comparable goods in the market, and should also achieve their abilities and various elements, such as the entire industry and so on. Question 6) With the information provided, prepare a feasibility analysis for the homeowner market. Answer 6) A The Market Potential could be assessed as follows: 260968 x 0.10 x 0.20 = 5219 rails 5000 (stepping stool rails) x $40 = $200,000 Piece of the pie ought to be equivalent to there is no clear rivalry Projected Income $200,000 - $50,000 (5000 x 10) = $150,000 benefitnswer-6

Question 7)

What other information would make this calculation more

accurate? Answer 7) We personally believe that Dan can perform a better research about the expenses that he is going to incur like his fixed and variable expenditure as well as his overhead charges. What administrative and selling expenditure like freight, shipping, salaries, etc he is going to incur....