Sustainable Business - 24Home - Case Study Example

Sustainable Business Plan Name of the Student Name of the Institute Name of the Course Name of the Instructor Date Table of Contents Abstract 3 Introduction 4 Rationale 4 Overview 4 Competitive Advantage 5 Sustainable Business Development Strategy 5 Set-Up Plan 6 Impact of the Venture 6 Benefits of the Venture 7 Creation of societal value 7 Environmental issues 8 Economic development 8 Legal Impact 8 Expected Outcome 9 Project Timeline 10 Project Budget 10 Recommendation 11 Reflection 12 Bibliography 14 Abstract 24Home is a Netherland base firm which also operates in Brazil as well but the room of exploring more markets and using market expansion is an ideal method to grow is still on the cards. The business proposal for 24Home to use market expansion and use new European and Asian markets is well justified because 24Home contributes towards sustainable development and is cost-effective as well allowing low-income and medium-income groups to build homes and generate their own source of power generation as well. 24Home is an innovative idea that focuses on using smart technologies to generate electricity and is also focused towards controlling C02 emissions which is not done in the construction industry. These two points are the main competitive advantage that the firm has over its competitors and the adoptability is huge.A huge resistance from the construction industry can be witnessed but for that partnerships and joint ventures can be launched. The idea is still new for the Asian market but once it will gain acceptance, the growth is inevitable. Introduction 24Home is one of the finest and newest business model that has taken the construction industry by storm and believes on transforming the industry overall by bringing sustainability as the main element of success. The firm is a Netherland base firm which also operates in Brazil as well but the room of exploring more markets and using market expansion is an ideal method to grow is still on the cards. Rationale The business proposal for 24Home to use market expansion and use new European and Asian markets is well justified because 24Home contributes towards sustainable development and is cost-effective as well allowing low-income and medium-income groups to build homes and generate their own source of power generation as well. Also, it is environmental friendly idea and does not take long to establish and also focus towards waste reduction which is quote vital as the concept of circular economy has taken pace [Din08]. Overview The Asian markets are facing hard time in coping with environmental issues and the issues like unemployment is growing drastically forcing people to use illegal methods of generating income and the health concerns are growing[Mur06]. The third-world Asian nations are in desperate need of such business models that are sustainable and also help them improve on their living standards. Having a house in their custody relives a lot of pressure and help them focus on other areas if improvement. 24Home will help such nations in using less space and moveable houses which are also environmental friendly as they contribute very minimal towards C02 emissions and also guide the people to have a sigh of relief. Competitive Advantage 24Home is an innovative idea that focuses on using smart technologies to generate electricity and is also focused towards controlling C02 emissions which is not done in the construction industry. These two points are the main competitive advantage that the firm has over its competitors and the adoptability is huge[Orl11]. Secondly, the price is market competitive allowing more feasibility to the project keeping in mind the legal constraints that the business may face in any new market. Sustainable Business Development Strategy 24Home works on the function of circular economy that focuses on using the full potential of the product and material. This way the company is able to maintain limits to the cost-extension and does not focus on extending cost. Secondly, the design can be changed to the needs of the local market and since no specific area is required for construction, the project will not destroy any concerns as far political issues or legal frameworks are concerned. Having 24Home in the country, the new job creation aspect is dealt and also it contributes towards waste reduction which is why the sustainable business development is dealt properly. Set-Up Plan Setting up the idea in any new market will not be easy for which training programs are to be conducted toe educate the local people and vendors as well. Also, the government involvement is important in this regard for which a full-brief will be sent to the government bodies along with the proposal. The franchising model may not work well for the company for which direct investment is essential keeping in view the nature of the project. A huge resistance from the construction industry can be witnessed but for that partnerships and joint ventures can be launched[Dou10]. The following benefits or detail are discussed below to further assess the impact of the project: Impact of the Venture The project will help the local markets to attain a more sustainable development project and will impact the construction industry overall by creating new jobs and allowing people to acquire a relatively cheaper method of building homes. The need of having home-loans and house financing will be eliminated as the project cost is very low and it will help the country move towards circular economy with the first step. The local market will also be able to seek new employment areas as the project will contribute immensely towards eradicating unemployment. Also, the success will help in the wider adoptability of the concepts and will encourage local builders to focus towards such sustainable business models. Benefits of the Venture The new factories will be established locally that will help in waste reduction and using more innovative technologies that will contribute immensely towards the learning of local employees. Also, the less C02 emissions will benefit the environment and the focus towards more sustainable business model will guide the governments in improving performance overall. The adaptation of the model will also encourage more global companies to invest in the local market and proceed towards the concept of circular economy. Creation of societal value The 24Home business model is best suited for third world countries or developing nations that strive to grow big and improve on their living standards. The concept will eliminate electricity concerns by providing alternative source of power generation as the roofs are embedded with solar panels to save electricity. Secondly, the cost is not very high which allows people form Section B and C of the society to own their house as well. Also, the project will create new jobs and help in eliminating the unemployment issues. Also, the flexibility in moving and establishing the house it provides is very important and innovative that allows people to shift easily without any hurdle. Environmental issues `The project is a strong believer of circular economy and sustainability as the basis of the project is to decrease CO2 emissions and waste reduction. Countries in Asia are a strong market for 24Home that aims at contributing towards the betterment of the environment. The project will help in controlling C02 emissions and the new factories will contribute less towards waste production. The products can be recycled to develop new products as well. The environmental friendly approach is on the mind and is always be the key for success for 24Home. Economic development The project will help in renewable energy and can guide in recycling as well that can be used to produce new materials and products that will be a great construction towards generating new and alternative sources of energy. Also, the real-estate sector will be more focused towards such projects that can revamp the economic structure overall. Also, the societal benefit will be huge since people will be more inclined for such complete packages and would live to avoid hurdles and barriers to attain comfort present in the society. The imports will be increased and the trade benefit will be attained and most importantly it will contribute immensely towards the foreign direct investment in the country. Legal Impact The company is a foreign entity which is why it will have to go through the legal barriers and implications in order to establish itself. However, the idea is quite unique which is why it is imperative to face legal concerns as the pressure from local players in the real-estate industry and the power sector will grow on the governments especially in third world countries where such players enjoy monopoly. Still, the company can increase employments but hiring local people and with the partnerships with NGO’s working on societal benefit and environmental sustainability, the company can gain acceptance at an early stage. Also, the company will focus on infrastructure development and the learning can be used to create such projects locally. Expected Outcome The expected outcome of the project is to first of all ensure that the project earns reasonable revenues and profits. Along with this, for all businesses, the major success factor is to ensure the successful integration of customers and to make sure that the service or the product offered to them is of highest quality. Furthermore, employee retention and increased motivation among employees is another factor that needs to be considered as an integral component of the business success for the organization. The project will also be a helpful factor in increasing the sustainable development of the project and it shall also help in making the construction industry a more beneficial one by offering better job opportunities, revised salary packages. Along with this, one aspect that can be explored by the management of the organization is to introduce different schemes and packages to attract customers. Project Timeline The timeline of the project has also been established which consists of 10 tasks. The task description and the duration of completing each task in months is shown in the table below: TASKS & TASK DURATION Task ID Task Description Task Duration (Months) 1 Produce a Deep Dive Due Diligence 2 2 Research of the Market 3 3 Perform market segmentation Analysis 2 4 Determine Target Market 2 5 Perform SWOT analysis against the prevailing competition 1 6 Develop Strategy & Business Plan 4 7 Implement the Actual Plan 3 8 Identify the Suppliers 2.5 9 Monitor the Progress of the Expansion Plan 2 10 Take Corrective Actions when necessary 2 Project Budget The budget for the project has been estimated to be $ 1.245 million and the total number of the people required in total for the completion of all the project tasks and the entire project would be 129. These are shown in the table below: TASK RESOURCES & BUDGET Task ID Task Description Person/Month Required Task Budget 1 Produce a Deep Dive Due Diligence 10 $ 500,000 2 Research of the Market 5 $ 100,000 3 Perform market segmentation Analysis 4 $ 80,000 4 Determine Target Market 4 $ 70,000 5 Perform SWOT analysis against the prevailing competition 3 $ 50,000 6 Develop Strategy & Business Plan 7 $ 40,000 7 Implement the Actual Plan 6 $ 75,000 8 Identify the Suppliers 5 $ 50,000 9 Monitor the Progress of the Expansion Plan 5 $ 30,000 10 Take Corrective Actions when necessary 3 $ 250,000   TOTAL BUDGET 129 $ 1,245,000 Recommendation The company will be able to give benefits to the local people by having their own house and the mobility it will provide to local customers can be highly beneficial. Living in an environmental friendly environment and contributing towards power generation will work towards a better society and will help the organization gain more and more benefit for growth. The idea is still new for the Asian market but once it will gain acceptance, the growth is inevitable. This is much needed for Asian market and is important to convey the idea in the right manner to succeed and innovate on timely basis to gain sustainability as far as business is concerned. The project will help in better creating the opportunities for the different stakeholders and it shall be quite an integral part of the society in the coming time. Reflection The overall project basically helped me understand the different facets of business. During the research I was able to understand the importance of various internal and external factors that constitute towards the success of the organization. It has also explained the different methods, ideas that lead to improved and committed decision making. Furthermore, I have also been able to understand the different business tactics that are being used in different firms to outclass their rivals and competitors. Along with this, the paper has made me learn different ventures of business in the modern era. The different social factors, the legal factors, the environmental factors that affect the business have also been widely discussed throughout the completion of the summative paper. Therefore, it can be said that the paper was a constant learning curve for me where it has helped me better understand the business dynamics, the industrial dynamics and it has also helped me focus on diverse decision making factors that lead to improved business performance within an industry. Bibliography Din08: , (Ding, 2008), Mur06: , (Murray, 2006), Orl11: , (Orlitzky, 2011), Dou10: , (Dourish, 2010), Read More