In Week 7, you will complete your work on the Module Project. Throughout the module, you will design a frugal innovation plan, which should include your frugal innovation idea and the reasons you believe it will succeed. This is the basis of your report, which will be approximately 5,000 words.
Your report should be written in standard business English that favours ease of comprehension. This means that sentences and paragraphs will be shorter compared to standard academic English, and it is acceptable to use bullet points in your business plan to get your point across concisely. Use research from your submissions in Weeks 3 and 5 as well as the theoretical foundations that you have covered in this module to strengthen your arguments and move beyond subjective opinions. You are also encouraged to support your arguments and analysis with visuals, such as charts and diagrams. Business plans do not have a set number of sections, but make sure you clearly label your sections with appropriate headings. It is suggested that you include an Executive Summary, Introduction (your Overview and Vision Statement), Findings and Recommendations (your Product Implementation and Partnership Opportunities) and the Conclusion. Make it concise, to the point and convincing. Write with a specific audience in mind, and try as best you can to generate a genuine buy-in.
You will include the following:
• Plan Overview and Vision Statement (1,500 words)
o Revise your Week 3 submission for this section.
• Product Implementation (2,000 words)
o Outline a marketing strategy.
o Provide a description of the types of employees needed and potential challenges surrounding employer/employee relationships.
o Detail the production process and resources needed.
o Address the role of ethics and corporate social responsibility (CSR) within your business.
• Partnership Opportunities (1,500 words)
o Detail the potential role of partners, including strategic corporate partners and any non-governmental organisations (NGOs) or civil society partners.
o Describe how you will build social capital.
o Envision how you could expand globally with this venture.
o Complete an executive summary.
These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.1.1 Vision statement
The vision that Simple, Innovative Home Lighting Solutions has set in place is; to light every house situated in congested BoP neighborhood in the urban areas of Egypt by offering an innovative and cheap lighting solution.
1.2 A description of the target segment
The proposed frugal innovation will seek to fulfill the underlying needs of the Egyptian BoP that resides in congested neighborhoods located in urban areas of the country. BoP, which refers to Bottom of Pyramid, is defined by Subhan and Khattak (n.d.) and Dansk Industri (2007) as a market that is often comprised of the poorest people usually living on less than $2 per day. According to the Hartman (2011), 40 percent of the Egyptian population lives in abject poverty, often subsisting on not more than $2 a day. Hartman (2011) further claims that, except for Cairo, more than 15 million Egyptians are crammed into crowded tenements, majorly in the urban areas of the country. Surprisingly, the entire BoP in Egypt is at present standing at 17.5 million people. What this means is that only 2.5 million BoP population subjects are found in the rural areas of the nation. The following graph illustrates the distribution of the BoP between the urban and rural areas of Egypt.
Watanabe, Hiramoto, and Tsuzaki (2012) report that the BoP population in the urban areas is bound to increase as people continue migrating to find work in oil-rich regions of the country, most of which are within the vicinity of urban locations.
The success or failure of the proposed frugal product/business idea is likely to be facilitated by a set of factors. These factors can be effectively discussed using the PESTEL framework. In this strategic tool, P stands for the political influences. It has been reported that the Egyptian government is dedicated to promoting better life outcomes for the economically disadvantaged communities in the country. In 2012, it was revealed by Gilbert and Jenkins (2014) that Microsoft partnered with the Egyptian Ministry of Youth to create an employability portal targeting the young people. This is an indication that the Egyptian governing regime is more than willing to improve the livelihood of the Egyptians, including the most vulnerable. This political factor will indispensably work in support of my frugal innovation. As such, my frugal business idea is designed in such a way solves a pertinent need that is only experienced by vulnerable populations in the country (BoP subjects), which is the need for lighting. In this regard, it is undeniable that my business will support the goals of the government. Hence, the regime will be more willing and ready to support the venture.
Apart from this, the government of Egypt is vastly known for being a champion of peace. Ghefar (2018) identifies that Egypt works hand-in-hand with the EU to maintain peace not only within Egypt but also in the Euro-Mediterranean region. This political arrangement is also critical for my frugal innovation. Even though the production process will be based in Egypt, the source of the business idea is from a foreign country. It is anticipated that the Egyptian government, in an attempt to advance its peace ambassadorial role, will not have any issues in licensing the company to operate in the country since the operations are legitimate. Consequently, sustained survival will be almost guaranteed.
In the PESTLE analysis, E stands for economic factors. Over the years, the per capita in the country has been increasing. Trading Economics (2018) and Oxford Business Group (2018) set it forth that in 2008, the GDP per capita stood at $2,456.7 but by 2016, the rate had increased to $2,724.50. Increasing GDP per capita is an opportunity for my frugal business idea as more and more BoP market subjects will be able to access the solar bottle bulbs without having to pursue assistance from the partnering financial institutions.
The social factors, which are represented by the S aspect of the PESTEL analysis, will also be influential. Sakarya, Eckman, and Hyllegard (2007) present that when selecting an emerging market, it is always critical to focus on the nature of the customers’ receptivity when it comes to foreign products and services. Nagy (2017) asserts that in Egypt, the subjects, especially those that are from the BoP segment, tend to demand a broad spectrum of offerings regardless of the category or product/service line. More to this, Nagy (2017) adds that the purchasing power of the Egyptian BoP market is mainly directed to the informal sector. These socio-cultural trends will necessarily work for the benefit of my frugal innovation. My frugal innovation is indeed an informal-sector oriented given the degree of simplicity encompassed especially when compared the sophisticated kind of bulbs that are currently on offer in the market.
T in the PESTLE Analysis represents the environmental factors. Egypt is known for vast availability of water with River Nile serving as the largest waterway according to Revenga and Tyrell (2016). Besides, despite the desert-like conditions that have continued marring the country according to Zimmerman (2012), Egypt is highly productive when it comes to agriculture. Plaza (2018) purported that the production...
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