MBA601 Fundamentals of Entrepreneurship Report 3 Sample

MBA601 Fundamentals of Entrepreneurship. Ass 3

Management – Report

Your Task

Individually, you are required to prepare a 2500-word new venture business plan that incorporates various aspects of a start-up to be presented to an angel investor or venture capitalist.

Assessment Description

The purpose of this individual assessment is to provide students with an opportunity to create a plan for the proposed venture that incorporates financial, operational, marketing and ethical considerations and evaluate the risks and benefits of entrepreneurialism with a focus on how these can be mitigated.

Assessment Instructions

Presume that the start-up venture you have been allocated in the first assessment is now seeking capital from prospective angel investors or venture capitalists as they plan to expand their business to other countries. In the context of this assessment, you are to focus on New Zealand as the first choice for the planned expansion.

Based on this, you are to prepare a new venture business plan that addresses the following:

• The overview of the market potential for the planned expansion in New Zealand.

• A comprehensive outline of the suitable business model.

• A critical analysis of the financial considerations, including investment requirements, potential risks and returns, and crowdfunding opportunities.

• A critical analysis of the ethical considerations, including legal and regulatory risks and
challenges.

In preparing this business plan, you must also incorporate theories and concepts discussed in the topics from weeks 1 to 12.

You must use at least ten (10) sources of information and reference these in accordance with the Kaplan Harvard Referencing Style. These may include websites, social media sites, industry reports, census data, journal articles, and newspaper articles. These references should be presented as in-text citations and a reference list at the end of your written analysis (not included in the word limit). Wikipedia and other ‘popular’ sites, including ChatGPT, are not to be used.

Solution

1.0 Introduction 

The web-based coaching platform CoachHub is perfectly positioned to take advantage of this market opening because of its stated goal of promoting efficient and scalable coaching cultures. The main aim of this report is to analyse a detailed business strategy for CoachHub's entry into the New Zealand market. As per the MBA Assignment Expert, It includes economic, moral, and regulatory factors, drawing attention to both the possibilities and risks of this endeavour. CoachHub's overarching goal is to solidify its position as a leader in the New Zealand coaching sector while upholding the highest standards of ethics and legality.

2.0 Overview of The Market

2.1 Market size and growth

Figure 1: Revenue growth in the Online Learning Platforms market
(Source: Statista.com, 2023)  

CoachHub sees a lot of potential in New Zealand, where the need for online learning platforms is expected to increase rapidly. Growth in both market size and average revenue per user (ARPU) point help to rising interest in distance learning. CoachHub, which provides a web-based coaching platform with an emphasis on business, is keeping up with the times. The online education market is expected to be valued $27.44 million by that year's end (Statista.com, 2023).

The global market for this product will be worth US$45.57m by 2027, expanding at a CAGR of 13.52% between 2023 and 2027 (Statista.com, 2023). With a potential user base of 1.1 million and an estimated market volume of US$45.57 million by 2027, there is a considerable revenue opportunity in this sector (Statista.com, 2023). CoachHub's unique strategy and emphasis on personalised teaching will make it well-suited to seize a portion of this expanding industry.
2.2 Pestle analysis

Political factor 

Figure 2: Political stability value
(Source: Theglobaleconomy.com, 2023)  

A result of 1.44 on the political stability index in 2021 indicates that New Zealand's government is highly stable (Theglobaleconomy.com, 2023). New Zealand's unparalleled political stability, highlighted by this difference, makes the country an alluring location for companies like CoachHub. CoachHub will be able to safely plan and execute its expansion without seriously worrying about political disruptions due to the country's consistent government policies and low political risk. 

Economic Factor

Figure 3: GDP annual growth rate
(Source: Tradingeconomics.com, 2022) 

In 2023, New Zealand's GDP grew by 1.8%, pointing to a healthy and expanding economy (Tradingeconomics.com, 2022). As businesses look to improve their personnel in light of the improving economy, the rising demand for coaching services may contribute positively to CoachHub's growth. 

Social Factor

As of September 2021, New Zealand's Digital Boost skills training programme had a very high participation rate, with over 36,000 people actively enrolled(Betterforbusiness.govt.nz, 2020). The outlook is bright, with an ambitious aim of enrolling an additional 60,000 small business owners and/or their staff in this training programme by June 2023 (Betterforbusiness.govt.nz, 2020). With the increased demand for individualised coaching programmes in the ever-shifting world of digital proficiency, CoachHub is well-positioned to take advantage of this developing industry. 

Technological Factor

According to the TIN Technology Investment Report, New Zealand's tech sector is thriving after receiving $726 million in funding over the past year (Pelletier, 2023). With a rise of 8.2% year over year, CoachHub now has more opportunities to grow its digital coaching platform in New Zealand due to a larger pool of possible partners and resources (Pelletier, 2023).

Legal Factor: CoachHub must always follow New Zealand's data privacy rules, including the Privacy Act 2020 (Campbell and Forsyth, 2020, p.11). This law emphasises transparency and consent in all aspects of data collection, usage, and protection. CoachHub in New Zealand must strictly adhere to all data privacy requirements or face severe fines and potential brand damage.

Environmental Factor

CoachHub can better serve the needs of its customers if it adopts the same environmental values that so many (87%) New Zealanders hold dear (Sbc.org.nz, 2019). The company's reputation and appeal in New Zealand can be bolstered by emphasising eco-friendly teaching programmes and sustainable operations.

2.3 Porter's Five Forces 

Threat of New Entrants (Medium): Although there is a rising market for coaching and talent development in New Zealand, setting up a web-based coaching platform calls for substantial initial investment and technical skills. A new rival will face a moderate barrier to entry because of this (Isabelle et al, 2020). However, new entrants will still represent a threat if they have access to sufficient resources.

Bargaining Power of Buyers (High): Businesses and individuals in need of coaching services are the primary purchasers, giving them significant leverage in negotiations (Warrier et al, 2021, p.62). They can pick from numerous coaching services, and the associated costs of doing so are modest. Because of their considerable purchasing power, consumers expect low prices and reliable assistance.

Bargaining Power of Suppliers (Low): Certified coaches are the backbone of CoachHub's supply chain. Since the corporation can draw from a large pool of coaches all throughout the world, no one coach has particularly strong bargaining leverage. CoachHub has the negotiating power to get good deals from its vendors.

Threat of Substitutes (Medium): There is a reasonable risk of substitution. Although there are other coaching options out there, CoachHub stands out due to its unique digital twist. However, if alternative online learning platforms and self-help tools acquire traction, they will represent a moderate threat (Chandra and Palvia, 2021).

Competitive Rivalry (High): New Zealand's coaching industry is highly competitive. There are a number of well-known companies such as NZ Coaching & Mentoring Centre, IECL and Springfox that provide online coaching services, through online (Coachingmentoring.co.nz, 2023). In order to succeed in the digital coaching industry, CoachHub needs to set itself apart through its own distinctive approach, cutting-edge features, and key relationships.
3.0 Outline of the suitable business model.

Value Proposition: The novel digital coaching method used by CoachHub will be its primary value proposition (da Costa Fernandes et al, 2020, p.120). It will go above and beyond conventional coaching by providing individualised sessions, quick lessons, and instant help when needed. By making it easy and quick for customers to improve their abilities, this will add value. Example: Consider a mid-level manager in a New Zealand-based tech company. They seek coaching to improve their leadership skills. CoachHub's personalized coaching sessions and digital platform provide tailored guidance, helping the manager develop leadership capabilities effectively.

Customer Segments: CoachHub will reach out to businesses of all sizes all across the world, including startups, universities, NGOs, and government bodies. CoachHub will be able to maximise its value by catering training courses to a wide variety of clientele with varying professional development demands.
Channels: A business will provide coaching services using its own proprietary web platforms and mobile solutions, making them more accessible and convenient for a wider audience (Sturgeon, 2021, p.34). CoachHub will be able to maximise its value with this strategy since it will be able to reach more people and provide coaching sessions to clients when they need them.

Customer Relationships: CoachHub will prioritise individualised coaching to develop lasting relationships with its clientele. The business will provide permanent assistance, providing lasting value to customers and assisting them in reaching their professional and personal objectives.
Revenue Streams: CoachHub will be profitable because of the subscription services it offers to companies. Customers can choose to be invoiced monthly or annually for this subscription (Coussement et al, 2020, p.113). This kind of recurring revenue will capture value by offering a steady source of money and adapting to the changing demands of customers.

Key Resources: One of CoachHub's most valuable assets is its extensive network of credentialed instructors located all over the world.  The organisation, for instance, will centre itself around a worldwide network of certified coaches, a repository of useful information, and a suite of data and analytics tools. Their new business will make use of data and analytics tools such as a client dashboard, coaching session feedback surveys, and progress tracking software (Swendeman et al, 2021, p.120). Important tools for providing value include the requisite technological infrastructure and proprietary algorithms for pairing coaches with clients.

Key Activities: The primary activities will include creating and maintaining the digital coaching platform, refining the matching algorithms, and cultivating collaborations (Chen et al, 2021, p.10). The venture's value proposition is enhanced by these activities, which guarantee the supply of top-notch teaching.
Key Partnerships: Expanding the client base requires establishing productive partnerships with other organisations, particularly HR departments, educational institutions, and enterprises. The access to a larger market that is provided by these collaborations is a significant factor in the generation of value.

4.0 A Critical Analysis of The Financial Considerations

Investment requirements

There is great potential in expanding CoachHub into the New Zealand market but doing so requires careful planning and preparation, not to mention substantial resources. CoachHub needs to carefully evaluate its investment needs, foresee potential risks and returns, and investigate crowdfunding avenues to collect the necessary funds before it can launch this growth effectively.

The costs of breaking into the New Zealand market are complex. Costs associated with legal compliance, setting up local operations, and getting the necessary licences and permits are some of the initial market entry costs (Paul, 2019, p.446). This crucial phase could require an initial investment of between New Zealand Dollars 200,000 and 300,000. CoachHub also has to put money into improving its technology infrastructure so that it can better cater to the needs of the New Zealand market. The costs associated with this are projected to be around NZD 500,000 and involve localization and making sure its digital coaching offerings can scale.

Brand recognition and customer acquisition in a new market are greatly aided by marketing and advertising efforts. CoachHub, to have a strong debut, should fancifully allocate NZD 300,000 to NZD 500,000 for preliminary marketing efforts. It is also crucial to hire and train local coaches and support staff before launching. The venture's budget would likely fall anywhere between NZD 400,000 to NZD 600,000 to fund these expenditures. To account for recurring operational costs including office space, utilities, and administrative fees, you should allocate between NZD 250,000 and NZD 400,000 per year.
Potential risks and returns

CoachHub, however, needs to weigh the risks and rewards of making these investments. The level of market competition in the coaching sector in New Zealand is a potential threat. CoachHub needs to stand out from the crowd in order to be successful. New Zealand's legal framework must be followed closely, especially in regard to coaching and data privacy (Rains et al, 2019, p.403). Failure to comply may lead to legal trouble and harm CoachHub's credibility. An additional risk is whether or not the market will embrace CoachHub's novel digital coaching strategy. There is a large untapped market of firms and individuals that are interested in coaching services, so if this is successful, the profits might be enormous.

The propensity of firms to invest in coaching services will be affected by economic issues, such as variations in the New Zealand economy (Sanderson et al, 2022). On the flip side, growth prospects emerge when the economy is steady. If CoachHub is going global, it's also important to think about how currency exchange rates can affect earnings and sales. It's important to take a strategic approach to customer acquisition because the cost of customer acquisition and the time needed to build a big customer base might reduce initial profits.

Crowdfunding opportunities

CoachHub will investigate crowdsourcing options to reduce these risks and collect the necessary expansion funds. By using equity crowdfunding, CoachHub may be able to give backers a stake in the firm in exchange for financial backing. Crowdfunding campaigns that offer exclusive perks, like early access to CoachHub's services, are a great way to motivate donors. Debt crowdsourcing or peer-to-peer financing could provide loans for expansion, and donation-based crowdfunding, while less prevalent, will be appropriate for some projects within the expansion plan (Mazure, 2022, p.202).

5.0 Ethical considerations

Legal and regulatory factors 

1. Data Privacy and Security: The ethical and legal requirements for protecting personal information take precedence. Privacy rules in New Zealand are consistent with international norms such as the General Data Protection Regulation (GDPR), thus CoachHub will need to follow them (Anwar and Gill, 2021). Maintaining confidence and avoiding legal issues both necessitate the careful handling of customer data and sensitive information. Damage to a company's reputation and financial standing could arise from a data breach. Ethical practises require strict implementation of data encryption, secure storage, and access controls.

2. Regulatory Compliance: CoachHub will be obligated to follow New Zealand's coaching service regulations. It is essential that coaches have proper credentials and adhere to a code of ethics. If CoachHub doesn't follow the rules, it will face fines and lose credibility with customers. It will be morally required to conduct thorough background checks on coaches and conduct random audits to make sure everyone is playing by the rules (Butler and O’Brien, 2019, p.86).

3. Client Confidentiality: The anonymity of CoachHub's clients will be strictly protected in accordance with our ethical standards. It will be unethical and illegal to share client information without consent or to mishandle sensitive data gathered during coaching sessions. Having well-defined policies and procedures in place to protect client privacy must be crucial (Van der Pijl et al, 2021, p.246).

4. Fair Pricing and Transparency: Pricing and disclosure are also ethical concerns (Suri, 2020, p.41). Pricing for CoachHub's services will need to be competitive while still being fair, and the company's pricing structure needs to be made clear to customers.

5. Diversity and Inclusion: Ensuring diversity and inclusion in coaching services is both an ethical obligation and, in some cases, a legal requirement (Swartz et al, 2019, p.33). CoachHub should actively promote diversity among its coaches and ensure accessibility for clients from diverse backgrounds. Discriminatory practices could result in legal action and reputational harm.

6. Intellectual Property Rights: Intellectual property rights must be respected as a matter of both law and ethics (Mansfield, 2019). CoachHub will be responsible for ensuring that all coaching resources, including content and technology, do not infringe on the rights of any third parties. Copyright laws must be followed and intellectual property must be used ethically.

7. Advertising and Marketing Practices: Building trust requires honest and transparent advertising and marketing strategies (Suri, 2020, p.41). Legal repercussions and 
a loss of client confidence might result from making false or misleading statements about the benefits of coaching or using dishonest marketing practices.

Dealing with these moral dilemmas and legal/regulatory risk calls for a deep familiarity with New Zealand's legal system and a dedication to doing the right thing at all times (Pain and Pepper, 2021, p.315). For its business in New Zealand, CoachHub should need to set up reliable internal controls, compliance processes, and ethical principles. Staff and instructors will get frequent training on legal and ethical norms.

6.0 Conclusion 

As a result, CoachHub's entry into the New Zealand industry is a noteworthy development that promises significant development down the road. However, it requires an all-encompassing strategy that accounts for financial planning, risk management, and adherence to ethical and legal norms. To capitalise on the rising demand for digital coaching services in New Zealand, CoachHub will first conduct a thorough analysis of the market, then secure the necessary funding, and finally demonstrate a commitment to ethical behaviour and regulatory compliance.

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