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Ecostore Innovation and Entrepreneurship

3789 words (15 pages) Business Assignment

22nd Oct 2020 Business Assignment Reference this

Tags: Business AssignmentsBusiness

Entrepreneurship is an idea that provides a capacity to develop a business initiative by resolving every possible risk factor. The concept is based on an idea of venturing a business with each potential risks of market. An entrepreneur needs to be eligible to take risks and needs to make innovation in business field. Risk taking is an important part to perform in order to make a profit. The Ecostore has also brought innovation in its business strategy by making eco-friendly products. Scott and Venkataraman’s (2000) framework can be applied in business entrepreneurship to launch innovative ideas.  The Ecostore has also applied the framework to bring profit in entrepreneurship. According to Scott and Venkataraman’s (2000) framework, one needs to discover innovation that can serve the customer and bring success to any entrepreneurship. The Ecostore has discovered recycling plastic and has introduced Fairground Foundation for healthy living.

How ‘green movement’ Helped Ecostore

The Ecostore has launched an innovation by recycling the roadside plastics and using those in its skincare products. The creation that has been made as per Scott and Venkataraman’s (2000) framework, brought success to the company. This Green Movement has gained awards to the founder of  the Ecostore, Malcolm Rands. He has been awarded with Green Ribbon Award and two environment awards as well. The gains of these awards have developed the goodwill to the company. According to Scott and Venkataraman’s (2000) framework, innovative idea of taking a step towards making its products greener, has flourished company with great achievements (Shane & Venkataraman, 2000). Ecostore has considered to produce one of the companies of New Zealand that produces sustainable skin care products. Respective company has made its packaging sustainable as well. The green movement has helped respective company to generate eco friendly way of production. It not only helps in producing nature friendly production style, it influences an individual to lead an eco-friendly life as well.

Explanation of eco friendly product demand factors

It has been identified from case study that New Zealand does not have any potential capability to recycle plastic products. Each sensible population has now demanded for eco-friendly products as per the threatening scenario of Mother Nature. The rapid growth in population and a tendency of urbanization demanded for a place that can bring sustainability. Therefore, Ecostore has taken an initiative to bring up a green city in Auckland. In current scenario, everyone demands for sustainability with all urban benefits. Malcolm has taken this chance to produce a Fairground in Auckland. The idea of this entrepreneurship has followed Scott and Venkataraman’s (2000) framework, by making innovation existing products. The demand of eco-friendly products of the Ecostore has increased as the products consist of ingredients and amount of that product. That has attracted customers, as they demand to know the materials of the products that they are using. Daane et al. (2018) have commented that Consumers are also attracted to the eco-friendly products as skincare products. Respective company produces a skincare product that tends to be natural and beneficial to the skin. As stated by Campbell (2019), customer thinks natural products can be effective to skin.

 

Figure 1: Scott and Venkataraman’s (2000) framework

According to Scott and Venkataraman’s (2000) framework, stakeholders demand for continuous change, in the Ecostore change is eco-friendly; therefore, it can bring interests of customers. Ecostore always practices to give ultimate satisfaction to customers with its products. They make sure that their product can be user friendly. Respective company serves its customers with skin care products; in that the products need to be produced in such a way that does harm consumes. Therefore, Ecostore makes every possible approach to make their product good for skin by including fresh raw materials (Ecostore.com, 2019). As per the case study, Ecostore keeps a check on their products in every step to prevent the products from any problem. The protective attitude towards customers can draw customers towards company.

Analysis of Information Asymmetry 

Information Asymmetry is a concept that makes an exceptional attribute to a company that cannot be imitated by other existing companies. The excellence in knowledge and customer satisfaction can make a company exception from other existing companies. As stated by Cécora  (2019), cultivating new and unique ideas incorporates a business that can make more profit than other companies. If a company has more knowledge about customer satisfaction then that company can produce new ideas to take a lead in competitive market. The Ecostore has taken advantage of Information Asymmetry by creating such an empire that can manage both customer satisfaction and environment order. Ecostore has conducted the use of recycled plastics in their products. They have also organized to make Fairground Foundation to promote healthy living.

However, Malcolm has invested almost $ 1 million to make the recycling of plastics and use them in their products (Ecostore.com, 2019). Therefore, there is no availability of plastic recycling in whole country, so another competitive company will not be able to copy them. This idea will make the Ecostore isolated and leading in market. Ecostore is the only company in New Zealand that use recycled plastic in their products. Malcolm has taken other steps as well that can make company’s innovation to be more progressive. Malcolm has produced a show on television as well to give nature friendly advice to audiences. Respective company has shown concern about the nature, which can make them unique in competitive scenario. Apart from that, Malcolm has taken many options to promote the business strategy. He appeared on a television show for two weeks to talk about the positive aspects of introducing a green lifestyle that can assure a better life to the citizens. Ecostore has taken every possible aspect to show the positivity of nature. Malcolm has also designed first Eco Village in New Zealand. Therefore, this unique usability can make the company to make such a prospect that cannot be copied by any other competitive companies. Malcolm has planned to design a Fairground to promote sustainable living.

Reason of Malcolm and Melanie Rands taking market opportunity

The market demands for such products that can be both nature friendly and can be productive as well. Malcolm and Melanie Rands can discover this market opportunity, as they are related with nature friendly production for a very long time. It has been identified from the case study that, Malcolm has made the first eco-village of the country in the year 1986 (Ecostore.com, 2019). Therefore, it has been understood that he is the one who can connect nature friendly way of production. Ahlstrom et al. (2018) have mentioned that the market demands for products that can produce a better environment order, the founders of Ecostore has discovered the opportunity and exploited it by introducing in their production. In this case, Ecostore has followed Scott and Venkataraman’s (2000) framework.

Potential Business Opportunities for Ecostore

Malcolm Rands has discovered the innovative idea as he had the objective of environmental growth from an early time. It has been found out in the case study that Malcolm used to appear on a morning television show that promotes a green life. At that point of time, Malcolm was able to discover the demand of natural products is increasing in the market. The appearance on the television has given him a potential identity as well, that he can use to make his business nature friendly. The case study has suggested that Malcolm has tried to bring sustainability in market for over 25 years (Ecostore.com, 2019). Therefore, he can be able to know about environmental demand from an early time. It has been easy for the founders to know the demand of natural health and skin care products.

Business Opportunities in Market Potential of Ecostore Innovation

Malcolm Rands has taken an imitative to start a business that can produce healthier products for household care and self-care. It has been identified that Malcolm used to come on a television show to make the audience aware of the productivity of healthy life. That time has given Malcolm an idea about the demand o f the sustainability in market. In that case, it has helped Malcolm to discover the market trends and using it in their company. Malcolm has also made a sustainable eco village in Auckland in 1986. Therefore, he has prior information, which has helped him in taking entrepreneurship, which will manage to produce eco friendly products. It has also been identified that Malcolm is in nature wave for more than 25 years, therefore he has a lot of information that can help him to take Ecostore as a business venture.

The cognitive property makes Malcolm to take an initiative to produce nature friendly products. Hopkinson et al. (2018) have mentioned that cognitive properties enable a human to think and judge the situation to make a decision. Yip & Bocken (2018) have commented that Earth has been severely affected by the pollution and constant cutting of trees. Malcolm has decided to make a product that can save the environment and humans as well. The awareness about the nature had made him to use the opportunity in his business venture. The management team of  Ecostore is also made a judgment of each product to maintain sustainability of the product. Therefore, it can be understood that awareness of sustainability has made it possible for Malcolm Rands to take opportunity.

Means-End Relationship of Ecostore

Figure 2: Means-End Relationship

The Ecostore has made an effective plan to bring sustainability of nature. The means of Ecostore is to use recycled plastics as packaging of their skin and health care products. In the meat up relation, meat suggests to goal or objective of a company. Servoss et al. (2018) have suggested that End suggests to the meeting or success of that goal. Ecostore has to use roadside plastics and use those for packaging purpose of their products. In order to recycle those plastics, Ecostore has implemented a recycling method to use that plastic. Malcolm has invested $ 1 million to meet company goals. It will bring sustainability of the products of Ecostore. Apart from that Ecostore has also, planned to use less raw material in their products to provide a safeguard to natural resources.

Two Potential Challenges and Opportunities

The Ecostore has decided to make an eco-friendly prospect by introducing nature friendly products. This new strategy will implement a better business and profit growth of the company. In current scenario, Jan et al. (2019) has suggested that most customers choose natural products that can be good for the environment and for humans as well. The introduction of sustainable products in sustainable packaging can satisfy the demand of customers. Each citizen is aware of the requirement of saving nature. Ecostore uses less plants and minerals in its self care product that can save plants. The cutting of trees is the reason for most disorder of the environment.

In order to implement the process, Ecostore needs to invest a large amount of capital that can prove to be a challenge for the company. As suggested by Jin et al. (2019), New Zealand does not have any potential to recycle plastic. Ecostore has invested $1 million to implement plastic recycling procedure. As Ecostore has decided to use roadside plastics, some customers may have hygiene issue to use their product. Consequently, it can reduce the sale of the company product. Therefore, probable risks are there that can act against the market strategy of Ecostore.

Explanation of initial mode of exploitation

The initial mode has identified the plastic source, which can be recycled for further use. The initial mode of exploitation suggests that can apply the identified opportunity of the company. In order to implement that opportunity, one needs to make implication of tools that is required to continue the procedure. Ecostore has implemented recycling tools to recycle roadside plastics. Ecostore has planned to reuse empty bottles or cans of company itself.  There is no availability of plastic recycling in New Zealand. Therefore, the company has invested money to continue the implementation of opportunity.

Justification of Success of Initial Method

The initial method has been successfully achieved as it can make a positive approach to produce a sustainable practice in their company. The Fairground Foundation can introduce a healthy living for citizen. They had meetings with architects and town planners to make the plan possible. Apart from that, company can use the bottles and cans of their products. Roberts, Murray & Kim (2019) have opined that recycling of used materials can make sustainability and save budget of the product as well. Geissdoerfer, Vladimirova & Evans have suggested that making of healthy living can be successful in order to bring sustainability.

Explanation of Final Mode of Explanation

In the final mode, Ecostore has hired expert’s chemists to identify the safety of the products in each step. They has arranged a team, which can check the materials of the products on each step. Seles et al. (2018) have suggested that the step-by-step checking resulted in production of a refined good. The products have consumed a list of ingredients and amount of each ingredient as well. They have made Fairground foundation to bring healthy living prospects.

Compare and Contrast Strategic Entrepreneurship with Corporate Entrepreneurship

Strategic entrepreneurship helps to launch a venture that can grow respective business. Corporate entrepreneurship suggests bringing effective development in company to grow revenue if an existing company (Shepherd et al. 2019). In that case, it can be said that both strategies claims for the development of existing business, however, former demands for company development and later demands for revenue growth. In that case, it can be understood that the application of strategies are based upon the intention of the business owner if he wants to bring growth to company or to revenue (Uzunca,  Rigtering & Ozcan, 2018) 

Justification of Type of Entrepreneurship of Ecostore Adapt

The Ecostore will use the strategic entrepreneurship in their company. It has been found out that Malcolm has sold Ecostore to develop another strategic business perspective. They will make Fairground City in Auckland to bring healthy life. As per strategic entrepreneurship, Malcolm has concentrated on development rather than profit.

Conclusion

Ecostore is a company that has started with an initiative of developing sustainability through their products. They have recycled the roadside plastics to use as a packaging of their product. It has been identified that Malcolm, the founder of the company has suggested making Fairground that can promote healthy living in company. The entrepreneurship strategy has been implemented in the prospect to make a better scenario for Ecostore. The assignment has been developed on the business policies that has made by the Ecostore to bring nature friendly service in their business. The potential market strategy of Ecostore has also been analyzed in the assignment. Ecostore has brought over a strategy to develop sustainability in market and bring development to nature and humans. Malcolm has developed to recycle plastics and use them.

References

Books

  • Campbell, B. (2019). Practice Theory in Action: Empirical Studies of Interaction in Innovation and Entrepreneurship. Abingdon: Routledge.
  • Cécora, J. (2019). Cultivating grass-roots for regional development in a globalising economy: innovation and entrepreneurship in organised markets. Abingdon: Routledge.

Journals

  • Abuzeinab, A., Arif, M., Qadri, M. A., & Kulonda, D. (2018). Green business models in the construction sector: an analysis of outcomes and benefits. Construction Innovation18(1), 20-42. https://www.dora.dmu.ac.uk/bitstream/handle/2086/13842/DORA%20PDF_Proof.PDF?sequence=1
  • Ahlstrom, D., Yang, X., Wang, L., & Wu, C. (2018). A global perspective of entrepreneurship and innovation in China. Multinational Business Review26(4), 302-318. https://www.researchgate.net/profile/David_Ahlstrom2/publication/328860070_A_global_perspective_of_entrepreneurship_and_innovation_in_China/links/5c99db3345851506d72bd9ce/A-global-perspective-of-entrepreneurship-and-innovation-in-China.pdf
  • Daane, K. M., Vincent, C., Isaacs, R., & Ioriatti, C. (2018). Entomological opportunities and challenges for sustainable viticulture in a global market. Annual review of entomology63. http://www.isaacslab.ent.msu.edu/sfe/Images/Daane_et_al_2018_EntomologicalOpportunitiesandChallengesforSustainableViticultureinaGlobalMarket.pdf
  • Hopkinson, P., Zils, M., Hawkins, P., & Roper, S. (2018). Managing a complex global circular economy business model: opportunities and challenges. California Management Review60(3), 71-94. http://eprints.hud.ac.uk/id/eprint/33549/2/CMR%20FINAL%20.pdf
  • Jan, M., Haque, A., Abdullah, K., & Anis, Z. (2019). Elements of advertisement and their impact on buying behaviour: A study of skincare products in Malaysia. Management Science Letters9(10), 1519-1528. http://m.growingscience.com/msl/Vol9/msl_2019_146.pdf
  • Jin, C., Luo, Y., Shen, G., Han, Y., Jin, M., & Zang, Y. (2019). Development of College Students' Innovation and Entrepreneurship Ability under the Model of Personalized Education. Asian Agricultural Research11(1812-2019-2871), 86-88. https://ageconsearch.umn.edu/record/290304/
  • Roberts, E. B., Murray, F., & Kim, J. D. (2019). Entrepreneurship and Innovation at MIT: Continuing Global Growth and Impact—An Updated Report. Foundations and Trends® in Entrepreneurship15(1), 1-55. https://repositorio.iscte-iul.pt/bitstream/10071/16327/1/leonie_benoist_master.pdf
  • Seles, B. M. R. P., de Sousa Jabbour, A. B. L., Jabbour, C. J. C., de Camargo Fiorini, P., Mohd-Yusoff, Y., & Thomé, A. M. T. (2018). Business opportunities and challenges as the two sides of the climate change: corporate responses and potential implications for big data management towards a low carbon society. Journal of Cleaner Production189, 763-774. https://repositorio.unesp.br/bitstream/handle/11449/177129/2-s2.0-85046679338.pdf?sequence=1
  • Shane, S., & Venkataraman, S. (2000). The Promise of Enterpreneurship as a Field of Research. The Academy of Management Review, 25(1), 217. doi:10.2307/259271 https://link.springer.com/chapter/10.1007/978-3-540-48543-8_8
  • Shepherd, D. A., Wennberg, K., Suddaby, R., & Wiklund, J. (2019). What are we explaining? A review and agenda on initiating, engaging, performing, and contextualizing entrepreneurship. Journal of Management45(1), 159-196. https://www.researchgate.net/profile/Karl_Wennberg/publication/326690484_What_Are_We_Explaining_A_Review_and_Agenda_on_Initiating_Engaging_Performing_and_Contextualizing_Entrepreneurship/links/5b7137ea299bf14c6d9b3083/What-Are-We-Explaining-A-Review-and-Agenda-on-Initiating-Engaging-Performing-and-Contextualizing-Entrepreneurship.pdf
  • Uzunca, B., Rigtering, J. C., & Ozcan, P. (2018). Sharing and shaping: A cross-country comparison of how sharing economy firms shape their institutional environment to gain legitimacy. Academy of Management Discoveries4(3), 248-272. https://www.researchgate.net/profile/Pinar_Ozcan/publication/322709985_Sharing_and_Shaping_A_Cross-Country_Comparison_of_How_Sharing_Economy_Firms_Shape_Their_Institutional_Environment_to_Gain_Legitimacy/links/5b292c430f7e9b1d0035a350/Sharing-and-Shaping-A-Cross-Country-Comparison-of-How-Sharing-Economy-Firms-Shape-Their-Institutional-Environment-to-Gain-Legitimacy.pdf

Online Articles

  • Geissdoerfer, M., Vladimirova, D., & Evans, S. (2018). Sustainable business model innovation: A review. Journal of cleaner production198, 401-416. Retrieved from https://www.sciencedirect.com/science/article/pii/S0959652618318961 [10/09/2019]
  • Servoss, J., Chang, C., Olson, D., Ward, K. R., Mulholland, M. W., & Cohen, M. S. (2018). The surgery innovation and entrepreneurship development program (SIEDP): an experiential learning program for surgery faculty to Ideate and implement innovations in health care. Journal of surgical education75(4), 935-941. Retrieved from https://www.sciencedirect.com/science/article/pii/S1931720417306542 [10/09/2019]
  • Yip, A. W., & Bocken, N. M. (2018). Sustainable business model archetypes for the banking industry. Journal of cleaner production174, 150-169. Retrieved from https://www.sciencedirect.com/science/article/pii/S0959652617324988 [10/09/2019]

Website

  • Ecostore.com, 2019. Safer for you, your family and our world Retrieved from https://ecostore.com/nz/ [10/09/2019]

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