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Identify a ‘hypothetical’ Business Opportunity that if you had the funds, time and drive you would pursue as a Business start-up. This could be an idea you believe has the potential to become a Business for you to own and grow.


Business organisations are individuals or groups which collaborate to achieve commercial goals like profit and capital maximisation. Some business organisations are formed to serve the society and not to earn profits. Start-up business ventures synthesise funds, time, resources and entrepreneurial drives to earn profits. ‘The man’ is a medium sized start up business organisation which is a part of the beauty product industry (Ghezzi et al., 2015). The organisation would be a soap manufacturing company selling high quality soap for men under the same label in Australia. Its business strategy would be offering high quality organic soap to men at affordable prices. The vision of the company would be offering high quality organic soaps at affordable prices to maximise customer satisfaction. The vision of the company also includes expanding into markets outside Australia to maximise profit and competitive advantage(Blank, 2013).

The start-up business would follow a centralised organisational structure. A centralised organisational structure is characterised by centralised leadership and formally laid down relationship between superior and subordinates. The centralised organisation structure would suit the start up business as it is new and would require strict control by the apex management. This would allow formation of business strategies regarding production, allocation of funds and employment of human resources in a more efficient way (Kunz & Dow III, 2015).


‘The man’ being a start up business organisation would come under influence of various external and internal environmental forces. The main external forces are political, economic, social, technological, environmental and legal. These factors are beyond the control of the company and would require formation of business strategies to take advantage of these external environmental factors(Buch, Eickmeier & Prieto, 2014). For example, the company has to operate according to the laws framed by the government. It has to manufacture and operate in sustainable ways like using environment friendly raw materials to reduce environmental pollution and benefit the society. These company has to take into consideration the advancement in technology while forming its production strategies. The start-up business ‘The man’ has to consider these macroeconomic factors while operating so as to sustain in the market and earn profit(Mokhova & Zinecker, 2014).

‘The man’ like every business organisation would be impacted upon by internal factors like value system prevalent within the organisation, mission and objectives and organisational culture. The new start up company would be impacted strongly by these internal factors but unlike the external factors, these factors are under the control of the company(Perez, Popadiuk & Cesar, 2017). The new start up company would emphasise on forming a organisational structure which would be based on ethics, self efficacy of employees and diversity management. The mission of the start up organisation would be to operate in ways to benefit its stakehokders including employees(Radzi et al., 2017). The corporate culture of the company would aim to manufacture high quality products for the customers to ensure high returns and market penetration. The competencies of the apex management too have very important bearing on the organisational performances. It can also be stated that the company should enhance the capability of its internal factors to be able to deal with the external factors more efficiently(Kuratko,  Hornsby & Covin, 2014).


The start up business ‘The man’ would be encountering several risks while conducting business in Australia. The first business risk the soap manufacturing company would be encountering is strategic risks. ‘The man’ being a new men’s product in the market would be facing stiff competition from the established brands (Kontis et al., 2014).  The soap manufacturing company would face compliance risks due to continuous government and legal intervention in the private sector. The next compliance risk the soap company would face is the challenge to operate in ethical ways adhering to laws which often increases costs of production. The business would face financial risks because being a new product, ‘The man’ would require heavy initial investment in marketing and promotion. However, the returns in the initial phase may not be high which would require more expenditure to promote the product to gain deep market penetration and new customer bases (Sadgrove, 2016). The company being new in the market would require strengthening its goodwill in order to be able to compete with the big companies manufacturing soaps for men. This poses reputation risks to the new company which necessitates it to strength its goodwill by promoting and selling high quality products. This analysis shows that a new business faces several risks from the market like financial and strategic risks which attract more expenditure from the coffers of the company to minimise them and ensure growth of the company.

The new business organisation would adopt business practices to ensure maximum customer satisfaction. The organisation would acquire quality human resources and materials to produce high quality men’s soap. It would be follow strategic human resource management to align its manpower with its business objectives. The business policies of the organisation would also incorporate embracing modern and sustainable processes of production (Sivarajah, Irani & Jones, 2014). The company should emphasise on sustainable acquisition of raw materials to ensure sustainability and environment friendly operations. It would also strive towards achievement of energy efficiency by recycling waste and manufacturing energy from them. This business practice would help the company to gain energy self sufficiency and cut down expenditure towards energy in the long run. Corporate social responsibility would be an integral component of the business processes of the company. It would buy its raw materials to manufacture soap like vegetable oils from the local planters (Bikard, Murray & Gans, 2015). It would take initiatives to bring about development in the society like arranging free medical checkups for the poor people living in the Australian suburbs. These four business practices would enhance organisational performance.


The most important functions of the company would be finance, marketing, production, legal and compliance and human resource management.  These departments would cooperate and coordinate with each other to enhance organisational performances. The finance department would allocate the funds to other departments required to initiate the strategic functions like acquiring human resources. The human resource department would acquire skilled and efficient manpower capable of achieving high productivity. The human resource department would align the manpower acquired to the business objectives of the company. This would ensure high productivity and organisational performances (Sadgrove, 2016). The marketing department would form marketing mix to promote the men’s’ soaps on the audio media, print media and digital media. This would ensure creation of high demand for the product in the market. This ensures high revenue and competitive advantage in the market which again promotes high organisational performances. The marketing department would establish business contacts with the distributors to obtain orders for supply of soap. It would communicate the information to the production and finance department. The finance department makes financial planning and allocates the required funds to the production department to acquire the materials to start the production (Kontis et al., 2014). The production department would then start production according to the specifications stated in the orders in terms of sizes and product attributes. The legal and compliance department ensures that the company operates according to the law and policies in force. It enforces use of high quality materials and technology according to the laws. This ensures that the company operates by adhering to laws and ethics, thus succeeding to create a strong image in the market. Thus, it can be inferred that the strict vigilance of the legal department directs the company to act ethically which creates a strong market reputation and helps the company counteract reputation risks. The discussion shows that the main functions of ‘The man’ helps it to achieve high degree of organisational performances. The human resource department acquires talented and efficient human resources. The finance department allocates the funds required to carry out the crucial functions like recruitment of human resources. The marketing department promotes the products of the company in the market and creates demand. This department secured orders from the market and communicates the same to the finance and production department. The finance department allocates funds while the production department initiates the production process. The legal department oversees the operations of the entire company to ensure compliance to laws and ethics. Thus, the important functions of the organisation collaborate and coordinate with each other to achieve high organisational performances. It can thus be stated that this collaboration of the departments and functions account for high profitability and market performance of ‘The man’.


It can be concluded from the discussion that start up business organisations encounter several external and internal environmental forces. The external environmental forces like government actions and changing consumer tastes are beyond the controlling power of the company. However, they necessitate the company to form policies and strategies according to them. The internal policies are under the control of the company and can be exploited more efficiently to increase organisational excellence. The companies should strengthen its internal factors to deal with the macroeconomic factors more effectively. There are several types of risks which pose challenge to the market position of the company. The company must adopt business practices to ensure high organisational performance. The important departments like marketing and finance collaborate to ensure business execution and high organisational performances



Bikard, M., Murray, F., & Gans, J. S. (2015). Exploring trade-offs in the organization of scientific work: Collaboration and scientific reward. Management Science, 61(7), 1473-1495.

Blank, S. (2013). Why the lean start-up changes everything. Harvard business review, 91(5), 63-72.

Buch, C. M., Eickmeier, S., & Prieto, E. (2014). Macroeconomic factors and microlevel bank behavior. Journal of Money, Credit and Banking, 46(4), 715-751.

Ghezzi, A., Cavallaro, A., Rangone, A., & Balocco, R. (2015, April). A Comparative Study on the Impact of Business Model Design & Lean Startup Approach versus Traditional Business Plan on Mobile Startups Performance. In ICEIS (3) (pp. 196-203).

Kontis, V., Mathers, C. D., Rehm, J., Stevens, G. A., Shield, K. D., Bonita, R., ... & Ezzati, M. (2014). Contribution of six risk factors to achieving the 25× 25 non-communicable disease mortality reduction target: a modelling study. The Lancet, 384(9941), 427-437.

Kunz, D. A., & Dow III, B. L. (2015). Organizing and financing a new business venture. Journal of the International Academy for Case Studies, 21(1), 24.

Kuratko, D. F., Hornsby, J. S., & Covin, J. G. (2014). Diagnosing a firm's internal environment for corporate entrepreneurship. Business Horizons, 57(1), 37-47.

Mokhova, N., & Zinecker, M. (2014). Macroeconomic factors and corporate capital structure. Procedia-Social and Behavioral Sciences, 110, 530-540.

Perez, G., Popadiuk, S., & Cesar, A. M. R. V. C. (2017). Internal factors that favor the adoption of technological innovation defined by information systems: a study of the electronic health record. RAI Revista de Administração e Inovação, 14(1), 67-78.

Radzi, K. M., Nor, M. N. M., & Ali, S. M. (2017). The impact of internal factors on small business success: a case of small enterprises under the felda scheme.

Sadgrove, K. (2016). The complete guide to business risk management. Routledge.

Sivarajah, U., Irani, Z., & Jones, S. (2014, January). Application of Web 2.0 technologies in E-Government: A United Kingdom case study. In System Sciences (HICSS), 2014 47th Hawaii International Conference on (pp. 2221-2230). IEEE.


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