المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية
اإللكترونية
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic
University
College of Administrative and Financial Sciences
Assignment-2
MGT402 – Entrepreneurship and Small Business
Deadline: 20/11/2021 @ 23:59
Course Name: Entrepreneurship and Small Student’s Name:
Business
Course Code: - MGT 402
Student’s ID Number:
Semester: I
CRN: 12925
Academic Year: 1443/1444 H
For Instructor’s Use only
Instructor’s Name: Dr. Swapnali Baruah
Students’ Grade: Marks Obtained/Out of
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Read carefully Grading Rubric below for specific criteria: 0-5 Marks
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Entrepreneurship and Small Business
ASSIGNMENT -2
Submission Date by students: Before the end of Week- 11th
Place of Submission: Students Grade Centre
Weight:
05 Marks
Learning Outcome:
1. Utilize strong analytical skills and tools to formulate an effective Bootstrap Marketing Plan
on which a small business can build a competitive edge in the market place. (Lo 1.8).
2. Deliver and communicate marketing massages in coherent and professional manner. (Lo 4.4).
Assignment Workload:
This assignment is an individual assignment.
Start-up Business Plan
Imagine you started a new business as an entrepreneur in Saudi Arabia (In Continuation to the
Assignment -1).
Please, think and share information on the following items:
4. Marketing Plan
a. Market Research- Why? (1 Mark)
b. Market Research- How? Primary or Secondary Data? (1 Mark)
c. In your marketing plan, be as specific as possible; give statistics, numbers, and sources. The
marketing plan will be the basis, later on, of the all‐important sales projection. (3 Marks)
Product
• Describe the most important features. What is special about it?
• Describe the benefits. That is, what will the product do for the customer?
Customer
• Identify your targeted customers or your ideal customer: How many of them are there? It’s important
here to be specific.
• Demographics
• Customer relationships: How do customers want to interact with the business?
Competition
• What products and companies will compete with you?
• How will your products or services compare with the competition? Identify the organization’s
competitors and their strategies, along with ways to counter competition and gain market share.
• How is your target market solving their problem today? Are there alternatives or substitutes in the
market?
• Investors will want to know what advantages you have over the competition and how you plan on
differentiating yourself.
Strategy
• Outline a marketing Strategy.
Promotion
• How will you promote your Product?
• What will be your promotional budget?
Distribution Channels
•How do you sell your products or services?
•What are the costs associated with distribution?
المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية
اإللكترونية
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic
University
College of Administrative and Financial Sciences
Assignment-1
MGT402 – Entrepreneurship and Small Business
Deadline: 23/10/2021 @ 23:59
Course Name: Entrepreneurship and Small Student’s Name:
Business
Course Code: - MGT 402
Student’s ID Number:
Semester: I
CRN:
Academic Year: 1443/1444 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Read carefully Grading Rubric below for specific criteria: 0-5 Marks
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Entrepreneurship and Small Business
ASSIGNMENT -1
Submission Date by students: Before the end of Week- 7th
Place of Submission: Students Grade Centre
Weight:
05 Marks
Learning Outcome:
1. Demonstrate a solid understanding of the potential of entrepreneur in today's competitive business
world. (Lo 1.2)
2. Demonstrate ability to think independently and systematically on developing a viable business
model (Lo 1.3 & 3.7).
3. Understand the place of small business in history and explore the strengths and weaknesses of small
business. (Lo 1.1).
Assignment Workload:
This assignment is an individual assignment.
Start-up Business Plan
Imagine you started a new business as an entrepreneur in Saudi Arabia.
Please, think and share information on the following items:
1. Owners, capital structure and company profile
a. Your Business Name, Address, E‐Mail
b. Form of ownership: What is the legal structure? Sole proprietor, Partnership,
Corporation…..
C. Investment capital
2. Company Business Description (300 – 400 words)
A. Scope and type of business
What business will you be in? What will you do? What market segment will you choose?
• Business idea: what is your big idea? Is it a product or a service? What makes your idea
different?
• Mission Statement
• Company’s short-term and long-term goals and objectives.
• Target market and demographics: Who will your customers be? Where do they live? What
is your target market passionate about?
B. Business Philosophy
What is important to you in your business?
• Describe your Industry: Is it a growth industry? What long term or short-term changes do
you foresee in the industry? How will your company take advantage of it?
• Describe your most important company strengths and core competencies: What factors will
make the company succeed? What do you think your major competitive strengths will be?
What background experience, skills, and strengths do you personally bring to this new
venture?
• Risk Assessment: Evaluate the strengths and weaknesses of your business using SWOT.
• Scale of the business and its growth anticipation: what is the growth rate per year for five
years? What do your 5-year financials look like? What is your path to profitability?
•Who is your competition and how do you beat them?
• Start-up costs: what costs do you expect to make the business run for the next five years?
3. Products and Services
a. Describe in detail your products or services (Technical specifications).
b. Size of business: how many employees? How many offices and retail facilities?
c. What factors will give you competitive advantages or disadvantages? Examples, include
level of quality or unique or proprietary features.
1. Owners, capital structure and company profile
The Business Name for our business will be Halal Beauty Store. The business Address will be 46XX, Riyadh, Saudi Arabia. Our E‐
mail address will be beauty@halalstores.com
Form of ownership: the business will be a partnership between me and my friend since we are willing to both contribute equally.
Our Investment capital budget is SAR 1.2 million (savings of SAR 800,000 and loans from bank of SAR 400,000)
2. Company Business Description (300 – 400 words)
A. Scope and type of business
What business will you be in? What will you do? What market segment will you choose?
Halal beauty store will deal in ladies' beauty products and services. This will include the sales of products such as organic nail polish
(which is environmentally friendly), face products such as makeup products, and hair products like sprays and other hair foods. These
products will target women of all ages but will primarily focus on the youth who love to use beauty products.
• Business idea: what is your big idea? Is it a product or a service? What makes your idea different?
Our main business idea is to offer organic and environmentally friendly products such as nail polish which is mostly preferred in
Saudi Arabia. Our key strategy will also resonate around quality customer services and quality products since all the beauty stores
around our shop have been established to have poor services. The business will offer both beauty products and services to our
esteemed customers to ensure customer loyalty. The service provision is what the beauty and cosmetic industry is struggling to offer in
Saudi Arabia hence this makes our idea different as well.
• Mission Statement
To be a one-stop beauty store of choice due to exemplary services in Riyadh and around Saudi Arabia.
• Company’s short-term and long-term goals and objectives.
Our short-term objectives will be to capture market attention as a new venture and register sales and effective customer retention. Our
short-term objectives also include engaging a skilled marketing team to help the company gain a significant market response and to
offer quality services that will trigger a more positive conversation about our company. Our long-term objective is to ensure the
company breaks even within the first year of venturing. We are also looking to generate enough revenue for the business’ selfsustainability. We are also seeking to have a team of experienced employees with a great attitude and culture towards quality service
provision.
• Target market and demographics: Who will your customers be? Where do they live? What is your target market passionate
about?
We target female customers of all ages provided they embrace and use beauty products. Youthful age will remain our primary target
market since the youths are aware of and embrace beauty products as compared to older women. Female products are also selling well
for the youths and, given our quality, we will have a loyal customer base. Male perfumes and lotion will also be available since we
look to be all-round with our products. Most of our customers are projected to be coming from the city of Riyadh and its
environments (Dixit, Clouse & Turken, 2019). The target markets are passionate about fashion and a better lifestyle hence the use of
our products.
B. Business Philosophy
What is important to you in your business?
• Describe your Industry: Is it a growth industry? What long-term or short-term changes do you foresee in the industry? How
will your company take advantage of it?
Halal beauty store is in the fashion industry which is one of the fastest-growing industries globally. Some of the industry’s short-term
changes include product overhaul and online sales. I will take advantage of product overhaul by remaining in the know to ensure we
keep up with the market trends and take competitive advantage. We also look to have an online presence such as a website and sales
delivery services to ensure customer comfort.
• Describe your most important company strengths and core competencies: What factors will make the company succeed?
What do you think your major competitive strengths will be? What background experience, skills, and strengths do you
personally bring to this new venture?
Our main advantage and or strength are a strong online presence which will ensure we gain a significant market share that is now
online mostly. We also have a passionate workforce who will ensure the quality of our services. I have a professional background in
business management which I look forward to leveraging in our business. I am also a skilled bookkeeper which I will apply to ensure
success. My partner who is also a media influencer also loves fashion thus we shall combine these skills including his media
background to take advantage of online sales and marketing. Another core competency will be our quality services and products which
will keep our customers coming back.
• Risk Assessment: Evaluate the strengths and weaknesses of your business using SWOT.
Strength: Strong social media presence; workforce with great attitude and teamwork; quality products and quality customer services;
skilled personnel such as me and my partner.
Weaknesses: inadequate resources for growth such as capital; being new which makes it a lot harder to gain customer trust; expensive
experienced workforce since experienced workforce often asks for high salaries; and other challenges faced by new ventures (Brooks,
Heffner & Henderson, 2014).
Opportunities: high Riyadh population that offers a stable customer base; online marketing which has made sales easier; strategic
location of the store that ensures accessibility by our customers and product differentiation (organic nail polish) that is a rare product in
the market
Threats: increasing competition in the fashion industry; lack of enough capital and high loan rates which makes it expensive to
acquire capital; uncertain economic conditions created by a global pandemic; and unpredictable customer tastes and preferences.
• Scale of the business and its growth anticipation: what is the growth rate per year for five years? What do your 5-year
financials look like? What is your path to profitability?
Our growth anticipation will be 5 percent in the first year as we shall be paying the loan. The second year’s projection is at 10 percent
as we will be pushing to set up a stable customer base and adjust our offers and promotions to ensure awareness further. The project
will be progressive with the third year’s projection set at 15 percent and 20 percent for the following year. After the fifth year, the
business shall maintain a growth projection of 20 percent. We intend to break even within the two years of operation, after the set
period of loan repayment.
Year 1(Star-up) = SAR 1.2 M
Year 2(+5%) =SAR 1.8 M
Year 3(+10%) = SAR 1,980,000
Year 4(+15%) = SAR 2,277,000
Year 5(+20%) = SAR 2,732,400
•Who is your competition and how do you beat them?
One of our top competitors is Nazih Cosmetics who is offering quality products as well but HalalBeauty Store will implement two
main strategies to beat this. First, we shall ensure quality and personalized customer experience as well as quality products. We also
intend to control a strong online presence which is now the most preferred shopping platform currently used globally.
• Start-up costs: what costs do you expect to make the business run for the next five years?
Our start-up cost and or budget is SAR 1.2 M which will cover all expenses such as stock, administrative and advertisement costs
which will be our main cost elements. The first year will be set aside for loan repayments in partials and this is set to make the
breakeven go up to the second or third year. The yearly profits will be invested back into the business for the first five years to help
boost business growth. Our expenses are projected as follows; Administrative expenses of 10 percent; wage bill of 20 percent; stock 40
percent; advertisement 20 percent and other 10 percent.
3. Products and Services
a. Describe in detail your products or services (Technical specifications).
Our products shall include beauty products such as organic nail polish which is environmentally friendly and will come in all
applicable colors. We shall also deal in hand products such as lotions, men’s lotions; ladies face products and or makeup, and ladies
hair products as well as other body and beauty products such as sprays and roll-ons.
b. Size of business: how many employees? How many offices and retail facilities?
We intend to start with a single store due to capital challenges but we target expansion to other cities around Saudi Arabia. We are also
planning to start with five staff in addition to me and my partner. As we grow we shall hire other experienced and or skilled personnel
to help achieve our business mission.
c. What factors will give you competitive advantages or disadvantages? Examples include a level of quality or unique or
proprietary features.
The first factor we shall leverage for competitive advantage is a strong online presence which will help us gain a significant market
base (Distanont & Khongmalai, 2020). Our great employee attitude of quality service will help us gain and even retain more customers
thus creating customer loyalty. Another factor is our product differentiation and or environmentally friendly products such as organic
nail polish will help us attract more customers. A factor that will give us a competitive disadvantage is stiff competition from our
competitors; lack of enough resources such as capital to ensure a quality workforce (Osibanjo et al 2019); unfavorable market
conditions for a new venture such as strict statutes which limit business operations.
References
Brooks, G., Heffner, A., & Henderson, D. (2014). A SWOT analysis of competitive knowledge from social media for a small start-up
business. Review of Business Information Systems (RBIS), 18(1), 23-34.
Distanont, A., & Khongmalai, O. (2020). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social
Sciences, 41(1), 15-21.
Dixit, A., Clouse, C., & Turken, N. (2019). Strategic business location decisions: Importance of economic factors and place
image. Rutgers Business Review, 4(1).
Osibanjo, A. O., Waribo, Y. J., Akintayo, D. I., Adeniji, A. A., & Fadeyi, O. I. (2019). The effect of quality of work life on employees’
commitment across Nigerian tech start-ups. International Journal of Mechanical Engineering and Technology (IJMET), 10(3),
41-59.
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