Entrepreneurship Course work

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CW2

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Come on! Your last effort!

Always do your best effort (Frank Gehry)

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Developing an Enterprising Mindset (4GN501)

Contend and format

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Coursework 2 (40%) Learning outcome 2: Examine the structure of different businesses including their legal identities and potential for value creation and growth.

Group work infographic and presentation In groups of 5-6, you are required to produce an infographic and deliver a five to ten (5-10) minutes verbal presentation or recorded video to illustrate potential value creation and growth for a given business venture.

Theme: Sustainability Case study business: Milspeed

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Format for CW2 All answers must be:

• A one-page infographic e.g. Canva.com; Piktochart.com; Infogram.com …

• A five to ten (5-10) minutes group presentation five (5) minutes of questioning/group at the end.

Support your submission with relevant literature using the Harvard Referencing system. This requires citations (references to relevant literature) within the infographic, which must also be listed in full in a reference list at the end of your work. Work will not be awarded a pass grade at this level of study without a clear demonstration of this skill. Assessment deadline 29th April 2021 by 11.59pm via Turnitin.

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CW2 Presenting your research in an infographic

Use a template or create your own. https://www.canva.com/infographics/templates/

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How to approach this assessment

PPT 5-10 mins Infographic

Research the company and its background – include reference to its legal identity and structure.

1 slide Name of company & title of infographic

Identify how it currently adds value and how this is measured both in terms of economic and non-economic measures.

1 slide No

Explore the current work that Milspeed does in relation to sustainability.

1 slide – sets the context No

Select ONE SDG and identify what Milspeed currently does in relation to this SDG.

1 slide Yes - shows the starting point in relation to a named SDG

Present suggestions as to how Milspeed can potentially grow the scale of its operations and add value through increasing its focus on the selected SDG.

1 slide – can consider different growth options to show critical thinking and justify selection of recommended options.

Analyse selected growth option.

Explain value creation.

Yes – include suitable growth options and how this can create value.

Examine selected growth option.

Explain value creation.

Link growth option to value creation

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How to approach this assessment

PPT 5-10 mins Infographic

Consider the impact on both economic and non-economic measures and how you can measure growth.

Impact analysis – potential outcomes of recommended actions in relation to selected SDG & how can these be potentially measured Explain the link between the growth option to value creation

Yes - Include an example of an economic and a non-economic measure in relation to measuring the impact of your recommendations

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The case study business - Milspeed

Milspeed’s mission statement

“To harness our technical expertise and innovative materials to enhance our customers’ world class products, enabling us to reward the skills and dedication of our workforce and supply chain. Always seeking ways to continue setting the standards in sustainability.” https://milspeed.com

Additional information is included in the assessment guidance posted on course resources and in the presentation by Milspeed.

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CW2 Focus

Your task is to examine potential value creation and growth for Milspeed with specific reference to its sustainability focus.

In order to do so, select ONE Sustainability Development Goal (SDG) and use this as your focus for exploring how Milspeed can potentially add value and grow in pursuit of this SDG.

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Value

GrowthSDG

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1. SDG

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Sustainability Development Goals

The 17 SDGs focus on five key elements: people, planet, peace, prosperity, and partnership.

https://sdgs.un.org/goals

The-Sustainable-Development- Goals-Report-2020.pdf (un.org)

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2. Value

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Lüdeke- Freund et al 2020

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Lüdeke-Freund, F., Rauter,R., Pedersen, E.R.G., and Nielsen, C. (2020) Sustainable Value Creation Through Business Models: The What, the Who and the How. Journal of Business Models (2020), Vol. 8, No. 3, pp. 62-90 Value creation is typically associated with how companies create and offer products and services for which customers are willing to pay and how they try to capture a share of the total value that is created in the corresponding economic exchange processes (e.g. Bowman and Ambrosini, 2000; Freudenreich et al., 2020; Garcia-Castro and Aguilera, 2015).

The main forms of value are typically defined as value for customers (i.e. use value and customer surplus) and value for the company (i.e. exchange value and financial profit). If other stakeholders are considered, they are typically employees, who are paid wages, and capital providers and shareholders, who receive interest and dividend payments.

Value to customers: customers are interested in obtaining use value, which is the usefulness of products and services offered by companies. Bowman and Ambrosini (2000) argue that use value is a subjective notion and thus can be referred to as perceived use value.

Value capture has different meanings for different stakeholders (Freudenreich et al., 2020). Traditionally, for customers, it means realising new use value and customer surplus; for the company, it means obtaining exchange value and financial profit; for labour suppliers, it means being paid wages; and for capital suppliers and shareholders, it means receiving interest and dividend payments based on a share of the exchange value created by the company. This overview of traditional assumptions about value creation.

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New ways of thinking about value creation Lüdeke-Freund et al 2020:81)

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3. Growth

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Possible reasons for business growth

Increase profitability

Greater sustainability or resilience in the market

– product or market diversification. (Mitigate

commercial risks)

Lower costs - due to economies of scale.

Greater market dominance – increase

market share.

Managerial objectives – status.

Greater buying and bargaining power.

Reduce the threat of competition – less

vulnerable to a takeover.

Increased ability to survive market fluctuations and

downturns.

Potential ability to attract the best talent

and staff.

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Examples of growth strategies (Source: Social Enterprise, UK)

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Ansoff matrix to illustrate growth strategies in relation to product and market

See Brassington, F. and Pettitt, S. (2013)

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Growth in relation to the Value Chain Integration - Vertical

Vertical integration is a strategy used by a company to gain control over its suppliers or distributors in order to increase the firm’s power in the marketplace, reduce transaction costs and secure supplies or distribution channels. Vertical Integration - Strategic Management Insight

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Integration – Horizontal

Horizontal integration is the process of acquiring or merging

with competitors, leading to industry consolidation.

Horizontal integration is a strategy where a company

acquires, mergers or takes over another company in the same industry value chain

Horizontal Integration? - Strategic Management Insight

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4. Let’s Lego!

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Recap – Porter’s Value Chain See https://www.youtube.com/watch?v=g8p2H7EvoGM

Porter, 1985

Margin is one indicator of value creation.

How else can you measure value creation?

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The Balanced Scorecard

“The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.”

(http://www.balancedscorecard.org/Resou rces/About-the-Balanced-Scorecard)

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What is a Strategy Map?

A strategy map is a simple graphic that shows a logical, cause-and-effect connection between strategic objectives (shown as ovals on the map). It is one of the most powerful elements in the balanced scorecard methodology, as it is used to quickly communicate how value is created by the organization.

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Start with a high-level scan of where impacts can be expected to be greatest

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Identify on the logic model where the impacts on the chosen SDG occur – these could be positive or negative

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Corporate Social Responsibility and the Triple Bottom Line 3P Inherent in managing a 21st century business is not just about making profits but the impact on society and the environment. The triple bottom must permeate all activities in the value chain and influence leadership, culture, goals and strategies, manifest itself in product development and influence decisions in the supply chain – choice of suppliers. Managing a 21st century business involves consideration of: Impact on financial measures e.g. profits Impact on society Impact on environment

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Be confident about your capabilities and your team’s.

Play hard!

Enjoy!

Inspire!