Entrepreneurship Venture Capital Management

June 2023

Answer 1

Introduction:

This study is designed to help  DigiPac consultancy create a new plan of

business for the agency's digital marketing department.  The agency's primary
purpose would be to provide digital services to businesses and organisations,
helping them reach the right audience, increase brand awareness, and drive
engagement through digital channels.  Digital advertising grows faster than other
media. The plan provides a roadmap that will guide the company to success. It
includes details such as the target market, goals and objectives, marketing
strategies and plans for sales, financial projections and operational plans.  It also
helps identify risks and challenges and provides strategies for overcoming
them. It's easier to communicate your business idea and proposal to
investors. Digital marketing is the current form of marketing. It developed as a
result both of the growth of internet marketing and the proliferation on new
media platforms and communication channels.  Digital Marketing's incredible
growth and technical innovations have made it an exciting engine of
engagement. The umbrella of digital marketing includes a wide range of
strategies and tools that can all be used for marketing and advertising
purposes. These include SEO, search engine optimization, social media
marketing, SMM, and e-mail.  Statista claims that India spent 160 trillion rupees
($160 billion) on digital advertising in FY2019.  Digital spending is expected
grow by 28% and reach 540billion rupees by 2020.  This highlights how
competitive digital marketing is. Digital marketing businesses can help clients
increase their marketing efforts with the right information.

Applications and concepts:

The goal market helps marketers focus on the commercial performance of their
business ventures by defining key markets, creating marketing mixes, and
creating positioning strategies for each segment.  Market segmentation is a
practice that divides a market into distinct customers. They may need different
marketing strategies or combinations due their specific needs, characteristics, or
inclinations. After the company has divided its client list, it must analyze each
segment's uniqueness in order to decide which segment (or segments) will be
most interested in its service. It must also consider how to best serve these
segments. Digipac can target certain segments of its market to provide the best
services based on their preferences and buying behaviours.  This could mean
focusing in on specific industries, areas or business types that are likely to be
most benefit from the services.  Digipac will make sure it targets its services
correctly to maximize its success.  Positioning determines marketing success.  The
corporation determines how to stand out among its competitors and in the minds
of customers. Digipac will be positioned as a cost-effective agency for digital
marketing that offers high-quality services to small and medium-sized
businesses. This positioning is communicated through branding, marketing
messages and customer support and will help the company stand out from its
competitors. Funding is necessary for start-ups and operations.  Capital options
for start-ups - including equity and loans - can impact operations, risk and
performance as well growth. Digipac will use family and friend equity to fund its
operations. A one-year forecast of capital costs and operational expenses has
been made to determine the costs associated with the venture.  In future work, we
will discuss in detail the additional costs for a three-year period.  Digipac's
services will be much more affordable.  The monthly fee for SEO will be 22-
24INR. This is very affordable when compared with the market and yet maintains
quality. Website designing and development services are also available at
50INR. The company will charge less for website development and design than
its competitors. Customers will receive free consultations, demonstrations, and
estimates.

Conclusion:
For a business to succeed and remain stable, it is critical to identify and reduce
potential risks. This section analyzes the potential risks associated with Digipac
and provides mitigation plans. DigiPac could be competing in the digital
marketing sector. DigiPac could also have difficulty gaining enough clients to
support its operations. It is therefore important to do market research to discover
the strengths or weaknesses of key competitors.  DigiPac stands out from the rest
by providing superior customer service, expertise, and a unique value
proposition. Also, consider forming alliances to offer complete digital marketing
services. The key to reducing the risk is to establish a solid marketing strategy
and sales plan that will promote DigiPac.  Additionally, network with other
companies and organizations to discover future customers or create
partnerships. To retain existing customers and attract new customers, we offer
exceptional services and outstanding offerings.  DigiPac faces another risk: it
might not have enough funds to cover the costs of launching and maintaining the
company. To solve this problem, it's important to establish a comprehensive and
detailed financial strategy. It will help you evaluate your business's cash flow
and identify possible funding sources. These include investors, loans and
grants. In order to secure the long-term success of the business, it is important
that you negotiate favorable terms and circumstances for financing.  Gantt charts,
financial projections planning, and time-bound Gantt charts are used for
prioritising activities and setting deadlines for analysis of the recommended
project management, establishment of a business venture, and financial costing
analysis.
Answer 2 Introduction:

Managers use the "business model canvas" to create and refine their business
plans. The business template canvas clearly identifies all the elements that make
up any business. It also simplifies a business planning document into a shorter
form. This template is like an executive summary of a business plan.  Alexander
Osterwalder originally introduced the business plan canvas template in his thesis
in 2004 entitled "The Business Model Ontology, A Proposition in a Design
Science Approach". The business model template has been applied to more niche
business models by business schools.  The Business Model Canvas allows
business owners and strategists to create, plan, and execute a business. It also
helps them keep the bigger picture in front of their eyes.  The business modelling
canvas allows us the freedom to conduct a high-quality analysis without getting
bogged down in details.

Applications and concepts:

A business model is the blueprint for how an organization creates and captures
value. The Business Model Canvas can help you to get a better understanding of
what elements to discuss when discussing business model design.  The nine
building blocks concentrate on the key topics of the company’s core value
proposition and the target market.  The Business Model Canvas serves as a visual
template to help you identify and organize different elements in your business
model. It's divided into nine sections to help you identify and organize the most
essential business elements within your organization.

Customer Segments – Your customers will determine how your business operates
each day. Your business' core, or the Value Proposition, will be defined by
understanding and knowing your customers.

Key Partnerships are your foundation for a network of suppliers or partners that
can help your business model run smoothly.  You should remember that not every
partner is your Key Partner.
Key Activities: The key activities are what a company should perform to make
its business model succeed.  A pizza delivery service would need to have the
ability to get the freshest ingredients at the best prices, prepare meals, organize a
call centre or website, hire couriers, etc.  In the case that your app only collects
and sends pizza requests, there are other actions, such as supporting and
organizing quick and seamless connections with partner companies, updating
menus, etc.

Revenue Streams. Depending on your product or service, you must have a clear
understanding how you plan to generate revenue from each Customer Segment.

Value Propositions are the reasons customers buy your products.  A Value
Proposition is a unique combination that solves the problem of the customer or
provides additional value.

Channels: The Channels element represents the company's goal to deliver a

Value Proposition for its customer segments.  Channels don't just serve this
purpose; they can also build brand awareness or provide customer support post-
purchase.

Key Resources. The key role of key resources is to create your Value
Proposition, deliver a service and maintain customer relationships.  The four main
categories of resources are: intellectual, financial and human.

Customer Relations: Make sure customers can reach you at any moment, whether
they are before or during the purchase.  A dedicated client service team is an
approach that focuses on customer relationship.  They can assist with SaaS
customers.

Cost Structure – Delivering value and maintaining customer relationships are all
costs. So is buying resources. The main operational expenses of a typical
product-development software company include research and developing (R&D),
support and sales activities.

Conclusion:
The design of a canvas shows how elements are connected, and allows you to see
the effect that each of these building blocks has on one another.  It is crucial that
you know exactly what order your business model will be completed.  Although
the BMC can be compared to a traditional Business Plan, there are fundamentally
distinct approaches. Business plans, which can easily reach 100+ pages, take
time to compile, read and edit.  The BMC should be considered a living
document. It's constantly evolving and changing.  The BMC allows you and the
team to quickly make decisions and then add or remove changes.  The BMC will
eventually help your crew better understand one another.  Use the same
definitions to communicate with your team.  The BMC can be taken to meetings
to facilitate communication. You can use sticky notes to outline new ideas and
place the canvas directly on the wall.  The BMC's main purpose is to show how
you envision building or developing a successful company.  This is a simple way
to visualize the business model and give an overview of the interdependencies
between your operations. Different business models can lead to different results
depending on whether the products, services, or technologies you select.  If you
want to create a successful business model, it is vital that you explore all
possible options. The danger of settling on the first idea is that you could miss
out on potential. This can only happen if you try different options and prototype
them. It is unlikely that your business plan will work as planned.  It's essential to
be flexible and ready for change in order to be successful in today's
market. Instead of spending months creating a strategy, which might not actually
work in the end and then spending years working on it, you can adapt your
processes in real time to fit the environment. You'll be able to outperform
competitors while you still grow. Furthermore, co-creation will allow you to
remain connected with your team and make sure you are on the same page.
Answer 3(a). Introduction:

Innovation and creativity can often be used synonymously.  Although they may
sound the same, they aren't one and the same.  The importance of creativity in
business is that it fosters new ideas.  This is key to innovation. A useful idea is
essential for innovation.  Innovative ideas are not always the best because they
don’t always produce viable solutions.  Simply put, innovation refers to a
product, service or business model that is both unique and useful.  Innovations
need not be revolutionary in technology, new business models or major
breakthroughs. They could be as simple as improving customer service or adding
features to an existing product.  You can categorize innovation in business into
two groups: sustaining, and disruptive.

 Sustaining innovating: An organization's ability to innovate and improve

its products for customers is called sustainable innovation.  It is often
pursued by incumbent companies who wish to keep their market leading
position.
 Disruptive innovating: This is where smaller companies challenge larger
ones. It can be divided into several groups depending upon the markets
that these businesses compete in. Low-end disruption describes companies
that are able to enter and seize a segment in a declining market. New-
market disruption refers when companies create additional markets to
serve a customer segment the existing market is not able to reach.

Companies that succeed incorporate both types innovating into their business
strategies are the most successful.  While it is important for a company to remain
competitive in the market, it is also essential to grow.  It helps protect a company
against competitors that might affect its standing.

Concepts and application:

Legacy bakers will need to identify opportunities to innovate and distinguish

themselves from other brands in order to remain competitive.  Here are some
possibilities:
  Offer healthier options. As customers increasingly seek healthier food
options legacy bakers may be able to explore ways to produce healthier
versions of their products. This includes using whole grains, reducing the
sugar and fat content, and incorporating superfoods such as chia and
quinoa. They may also be able to offer gluten-free and dairy-free vegan
options in order to satisfy customers with special dietary requirements.
 Experimenting with new flavors or ingredients is a great way to get
customers interested in unique and innovative products. Legacy bakers
may experiment with different flavors and ingredients to draw them
in. They can look to other cuisines or other industries for inspiration (e.g.,
using matcha/charcoal as a coloring ingredient).  This can help them
differentiate themselves from other competitors and build a loyal
following.
 Make use of technology: Legacy bakery owners can leverage technology to
streamline their processes and improve the customer experience.  One
example is the development of an online ordering or mobile app that
allows customers order and pay digitally.  They can also make use of data
analytics to better understand customers' preferences and optimize
products.
 Focus on sustainability. Customers are becoming increasingly aware of the
environmental effects of their food choices.  Legacy bakers may be able to
reduce their carbon emissions by sourcing local ingredients, using
environmentally-friendly packaging, as well as implementing sustainable
practices during their production process.
 Collaborate and collaborate with other businesses: Legacy bakery owners
can work with other businesses to create innovative products and reach
new markets. They could team up to create beer-infused bread by
partnering with local breweries or coffee shops.

Conclusion:

To summarize, legacy bakers are able to innovate in many ways to be

competitive and continue their business.  They can distinguish themselves from
other competitors by offering healthier options, exploring new flavors,
leveraging tech, focusing on sustainability and collaborating to other businesses.
This will allow them to become one the most sought-after brands in the
marketplace.

Answer 3(b). Introduction:

If you are looking for a way to start your own business, the franchise model is
the one to choose. It is possible to purchase a franchise business that has been
tested and has a strong brand. You literally buy a company and all the
processes. Because you don’t need to start from scratch, it’s not necessary to test
all aspects of your business model.  The idea is to invest in a well-established
business and then transfer its techniques and processes to the area you
select. The owner of the business benefits by not having to open new stores or
invest in additional units. Instead, they use licensed sales points to distribute
their products and services, which allows them to build their brand.  The
relationship between the franchisee and the franchisor is at the heart of the
franchise model. The franchisor can be described as the person or company who
owns the rights for a brand name.  The franchisee is the person or company that
pays a fee to use a franchisor's trademark and operating systems.  This
relationship is built around mutual understanding and support.

Applications and concepts:

Both seller and buyer can benefit from franchising.  Franchising has many
benefits for both the seller and the buyer.  Franchisors can grow their brand
without having the burden of repaying lenders or losing control over outsiders
through the franchise fee. The fees and royalties pay for corporate operations.
They train and support franchisees.  Franchisees enjoy the following: higher
chances of success than sole proprietorships; quicker opening times; ongoing
training and support; assistance finding the optimal site; the selling strength of a
brand; lower costs through group buying; national advertising campaigns through
local and regional media; customer lead generation through central call centers
and websites; and a network made up of fellow franchisees to offer support
through annual conferences, company intranets, and franchisee associations.
Additionally, funding assistance is available.  The downsides of franchisees
include lack of independence. This could be from the products and/or services
they sell to the color of their walls.

Conclusion:

Not all people are ready to franchise.  Some require total autonomy in order to
succeed or fail. Others prefer the tradeoffs that come with working for a larger
organisation. To ensure that a franchise partnership succeeds, the buyer must be
familiar with the franchise model and also with the culture, values, goals, and
values of the franchisor. Many view franchising like a commitment.  To ensure
the success of each franchise, and therefore the brand, it is important to have a
good match between franchisee and franchisor. Before signing any contract, both
parties should carefully consider this.