Is Biofoam likely to succeed or fail?
Biofoam is likely to succeed due to its product nature. It is a resilient, lightweight, and inexpensive product. It leaves no residue of dust, resists the urge to shift in transit, conforms to any shape in bulk, and protects in a much superb way. Its indestructible nature might also give it an added advantage over its presumed competitors. It is expected to make huge profits in the subsequent years, after recording a little loss in the first year of its existence. On the other hand, this product may fail precisely due to shifts of customers’ preference to its substitutes. It will take it a long time before it acquires the market share that it anticipates.
Who is (are) the entrepreneur(s) in this case? Why?
The main entrepreneur, in this case, is Ed Alfke, the chief executive of Phoenix Company. Although Sullivan and Martin developed the product, Ed Alfke is viewed as the main entrepreneur because he brought in his expertise in management, as well as enough cash.
Is this a good idea? How would you know at this point?
The venture idea could be regarded as a good idea. This is because of its connection with the green companies that stand a chance to gain in a much large way from the world regulatory climate, which seems to very hostile to polluters in each day. There is a potential growth of the market share that can be gained more, particularly from those companies that seem to be cruel to the environment. The board assembled by Alfke comprises of experienced persons in various organizations. This shows just how serious the idea was in enabling such persons to accept the honor to be members of the high-powered board that would spearhead the enterprise. With such a board in position, one would anticipate having something good to come out of the bio-foam venture idea.
Does Biofoam need more money or people? How are they handling their resources?
Despite the fact that bio-foam needs both more money and more people, it needs more people compared to more money. Considering that bio-foam would enter the market when people were already used to other products that served the same purpose as it did, there would be a lot to be done to change these people’s tastes and preferences. Therefore, to gain the sales volume that it anticipates having, so many resources would have to be channeled towards marketing. This is where resources in the form of both money and people become required simultaneously.
Is this how you would start a business? Are they doing everything in order and in a timely manner?
Their process of handling the business can be said to be quite an in order. This is because when Alfke comes on board to help Sullivan and Martin, he first assembles a board that is meant to help him through the entrepreneurship process. Several ideas, as concerns market share, market growth, including expected expenses and expected revenues, are discussed before any actions are taken. The performance of competitors is closely analyzed, and the possibility of wooing green companies into helping cultivate the idea is also put into consideration.
Is the competition too strong? Is the economy conducive to starting a business like this?)
The competition appears to be strong in the beginning. However, with time, this competition might be shaded off due to the nature of the product (bio-foam). The economy can be viewed as conducive to the start of this business. This is because retailers such as the Home Shopping Network and the QVC can be signed up by bio-foam to help in careful handling.
Is on-site production a bad idea? Why?
An on-site production, in this case, can be regarded as a good idea. This is because it can help a lot, particularly in cutting down costs. This can be achieved by utilizing resources, charging less for the product, and paying much attention to customer satisfaction.