OK so now you have a business idea, and you even think its a good one, but is the market ready for your great innovative product or service? So as you will know from class today, you have lots of questions that you need to ask yourself to determine if this is a 'go' or not. The Kellogg's Case showed that there are various tools that you can use to analyse & research the market surrounding your product or service. One of the most common and comprehensive tools is a PEST analysis. See here from information regarding PEST.
So your last for this week is to apply the PEST analysis to one of your individual business ideas generated and noted in the last Blog entry.
Here is my example using one of my business ideas - Crime Scene Cleanup.
Political - there are no political barriers to operating my business. Given the current high-levels of crime in SA and the general nature of many of these crimes (e.g. domestic violence), I think there will be a good market for my business.
Economic - the country and the world is in the midst of an economic recession and as such these are not affluent times. That said my service could well be regarded as an essential service or no one will want to live or work in a property that still has evidence of violent crime.
Social - my business addresses a somewhat unpalatable social need - something we would all rather not speak about or know about. Marketing will have to be done carefully and will due consideration to the nature of the environment in which I would work.
Technological - there are technical barriers to over come which is also good for the business (limited competition). I would need Hazmat certification and the appropriate training, equipment and insurance.
Cheers,
Jonathan
PS - See the movie Sunshine Cleaners
Group of spatial planners, town planners, architects etc. that form a business to provide an overview of the South African built environment in order to determine development opportunities in South Africa. This would help development companies/property companies all over South Africa to find growth opportunities.
ReplyDeletePolitical- There is no political barrier towards this business. Due to the many property Development companies all over South African that are continuously looking for new growth opportunities, this could be a very successful business. There are many families that are looking for vacant land and homes so they could contact this business therefore making it more successful.
Economical- efficiently using the available land within the boundaries of South Africa and attract both new local business as well as foreign business ultimately contributing to the economy as a whole.
Social- effectively providing both investment opportunities and more importantly the basic right of housing to local communities. Such a business can provide for the entire spectrum of South African residents from those looking for housing to those looking for investment opportunities.
Technological- with the help of current technology and possible future technological advances, the business will be able to reach all interested stake holders of the built environment.
Ancillary services - Video survalence installation
ReplyDeletePolitical - No legislation preventing a business such as this.
Economic - Crime plays a huge role in the demand for this type of technology (office blocks, industrial sites and construction sites and residential). Having constant survalence will minimize the chances of theft and other crimes.
Social - People are generally looking to improve their standard of living by trying to prevent rime. Socially, the incentive to a better life in SA would drive people to investing in such technology.
Technological - Designing these cameras which need to be cheap enough to compete with the current market.
I think crime is a social issue, although it does have economic implications.
DeleteGardening Service- specialising in roof-top gardens. Growing Plants that maximise carbon absorption and maximise oxygen expulsion, improving companies “green” status in a tangible and easily visual way.
ReplyDeletePolitical- There is no political barriers. Many “green” organisations are even given funding by the government, which could help a lot in funding of the business.
Economic- With the entire planet worrying about global warming and looking for solutions and everyone being asked to lower their carbon foot-prints, this is the kind of business that is needed. Business could benefit from a more “green” status which my business could help them achieve.
Social- Having a “green” building is often not seen to the naked eye, and where companies may spend lots of money improving their carbon footprint, can often go unnoticed. But a rooftop garden is a sense of advertising, as it is both doing the job of going “green”(figuratively and literally), but it is easily noticeable that the company is making the effort to go “green”
Technology- We would have to look into the latest technology for rooftop gardening as well as additions like solar geysers and solar panels which we might want to incorporate onto some rooftops.
Excellent - well done Justin.
DeleteSector Support - A specialist in building up individual worker portfolios which will help give the individual worker more self worth, and encourage a higher level of commitment
ReplyDeletePEST Analysis:
Political - There are no political barriers in this idea. The government is in full favour of individual sustainable development.
Economic - Often workers within the construction industry have no job when a project reaches completion. They then fall into the unemployed bracket of society again. With having an individual portfolio behind their name, they are set apart from the rest and can ambitiously pursue job interviews.
Social - Goes hand-in-hand with the economical factors. Increasing one's self-worth in buiding up a portfolio will inherently lead to a better social standing.
Technology - Building up a portfolio for workers will enable them to pick up on the basic of using computers for example to compose a cv. The use fo social media then to advertise their work ability will give their career a push in the right direction.
You used the PEST tool properly, however I wonder at the positioning of this idea given the very low skill among most construction workers.
DeleteLegal services- assists primarily in the processes associated with disputes that come about as a result of labour issues. As well as advice regarding the CCMA and labour courts.
ReplyDeletePolitical: The Labour Relations Act is an easily accessible document and available to the general public. Therefore there would be no political barriers to the formation of my business as it would entail a mere explanation of the document as well support by qualified personnel.
Economic: With the ever fluctuating market conditions and financial indicators, it is easy for an inexperienced contractor, employee or employer to make incorrect decisions or overlook unfair labour practices (for example the process surrounding retrenchment). Therefore, there is indeed a need for the services my business would provide and would ultimately become an essential part of any business.
Social: With current social issues surrounding BEE initiatives or the discrimination of different labour class, the need to implement a fair and just system (currently in place), is paramount. My business would aid in the overcoming of such issues and prevent further exploitation of our working class. So, despite the issues around this topic, there is a need for support and therefore, my business.
Technological: With the current surge of businesses using electronic documents, there may be a need for up-to-date technology and software (which is obviously expensive), therefore creating a slight barrier in this regard. However, the primary purpose of my business contracting qualified personnel to assist in legal processes surrounding labour relations in South Africa. Therefore, reducing the proportion of necessary technology.
I would have expected that under 'political' you would have highlighted the issue of your needing at a minimum some legal background to operate in this 'space.
DeleteMy business idea: build little huts for police (similar to ADT)
ReplyDeleteMy PEST analysis:
1.Political - there are no political barriers in my idea. the government would have to fund the building of the huts. Unlikely for people to be against the idea as everyone wants safer environments to live in.
2.Economic - may be a bit of a difficult task to get the money to build the little huts as well as maintain them. may need to employ more policemen which would result in an increase in salary expenses for the government.
3.Social - sociably this business idea would be aimed to make peoples lives safer. decreasing the time it takes for police officers to reach residential areas and perhaps prohibit criminals from committing crime in the areas where police huts are situated. (people sleep easier at night)
4.Technological - would need to look at the best possible ways to use advanced technology to help the police huts and policemen fight crime. for example, have night vision cameras in the little huts, more than one telephone line in the little huts etc.
FRSMIC011
Good - well done. An unusual idea :)
DeleteIDEA:
ReplyDeleteProfessional – Industrial Psychology/Interior Design Consulting firm (consultants from both respective disciplines) would be dispatched to various work spaces to find and suggest ways to improve one’s work environment through the inclusion of colour, light, improved ventilation and other novel ideas so as to facilitate enhanced productivity and incorporate an element of ‘play’ into the typically aesthetically-mundane workplace.
PEST ANALYSIS:
Political
There are no political barriers to establishing such a firm. There is no state-run equivalent of such a firm and hence it would not adversely affect the state in any way. This idea promotes enhanced productivity, which I believe the state would be in support of in its bid to remain a competitive force in the global economy.
Economic
Given that South Africa is in the process of recovering from an economic recession, there is a greater emphasis on progressing back towards original levels of output prior to the economic recession, which requires greater levels of productivity and efficiency. An improved workspace which improves productivity would be appreciated in these tough economic times, and would be viewed as a worthwhile investment since enhanced productivity typically generates more wealth.
Social
Social and Economic factors are inextricably linked in this respect. Morale is relatively low in light of the recession, and so a need exists to motivate workers once again to strive towards greater efficiency and productivity. This can be most readily and tangibly achieved through the aesthetical improvement of one’s workplace, as one’s mood, attitude and outlook is often a product of their immediate environment.
Technological
A thorough understanding of the requisite technology pertaining to improving one’s work environment from of an aesthetical environment would be brought to the fore by the relevant Industrial Psychologists/Interior Designers who have immense expertise in this field. Current technology such as air-conditioning systems and piped music would be incorporated, while future technology could be investigated, such as mood-lighting technology (a relatively new concept).
Achitectural website showing international and local designs as well as tips in order to help the design stage.
ReplyDeletePolitical - No strict laws against this, however there might be certain designs which will not be allowed to be published online. Online rules would need to be implemented and adhered to.
Economic - With South Africa improving in its building structures the site would help us progress in the built environment in comparison to other countries.
Social - Having different designs all in one place will help the creativity of the architect and will make the design stage happen more efficently.
Technological - Someone with good technological experience would need to be hired to monitor the site and keep it up to date.
Kouthar Mayat mytkou001
Good stuff - well done.
DeletePrivate Loaning Business, focusing on smaller, relatively short-term loans for redevelopment purposes or alterations.
ReplyDeletePolitical - There are no immediate threats from Government or its legislation as this is a privately run financing organisation. But as long as the business is registered and the general rules are abided by then political issues may not pose a real threat for the time being, however laws and political decisions are still a dynamic concern.
Economical - Because of the unstable situation within the world economy as well as within South Africa, there may be issues and complications with regard to clients being able to repay their debts to the business, which may cause big upsets if the loaning is not monitored carefully.
Social - Although the threat above, of repayment, was mentioned, the business would benefit clients more in the sense that the business would be more lenient on loaning than major banks. The banks are trying to look after their money at this unstable time, but along with a good credit history and trust (introducing the business's more personalised advantage) the business can look to be more lenient and thus get the edge over the big financing names. The fact that the business deals with smaller loans, it also gives the client peace of mind that they don't have to beg a major bank for relatively small loans which may generally get turned down.
Technological - As technology is an ever-improving world, the only barrier the business may need to overcome is constant adaption to these changes and improvements which may include improved technological client services that competitors may acquire beforehand. Staying on the ball and alert for improving software and online transferals will be one of the focal points.
I would have expected to see you mention (under 'political') the issue of NCA.
DeleteMentoring Program (focusing on bringing experienced specialists (on the brink of retirement) in their respective fields to new developments to pass on their knowledge).
ReplyDeletePolitical – there are no barriers to entry, and would keep more people in the labour force which would please the government as unemployment is a problem.
Economic – more people joining the labour force would increase wages, which in an economic recession is not ideal however in the medium to long-term it would be worth it due to the superior products being produced as a result in the knowledge gained.
Social – a key change will be the strengthening of the industry. With experts advising and helping out, things would be more open resulting in less conflict. A challenge will be the experts not taking over the job as their own; frustration will occur through the learning process but will be ultimately worth it.
Technological – efficiency of how things are done would be affected, but however if the idea is rigid then experienced developers would mainly like to use their methods rather than the emerging technology.
Sean Gotkin
GTKSEA001
Sector support
ReplyDeletePolitical - In many cases, the financial aspects of a project are the most fundamental, as there are often corrupt individuals whos greed or sole purpose is for self satisfaction and not company growth.There is a need in terms of covering costs and managing a set budget, therefore the need for my accounting firm is high, as there are many financial risks involved with large construction projects.
Economic - As a result of inflation and negative economic forces, possibly due to the credit crunch of the U.S.A., and the world economy as a whole, the market is continually changing, and the exchange rate fluctuating. This causes a large amount of stress for labour wages and material costs. My firm will accompany these changes and moderate them according to budget so as to achieve profit margins desired.
Social - There are certain social aspects that need to be attained, in terms of style, design, market approach and all-round presentation. Efficiency and productivity will be achieved through accurate financing.
Technological - There are no major technological barriers, as the sytem is already constructed in an efficient way to achieve maximum profit margins and productivity. technology is always improving and increasing, therefore the need for accurate accounts is vital to the success of any business.
Idea - Sector support – A short term financing company to assist small contractors with plant hire.
ReplyDeletePEST analysis;
Political: There are no political barriers. Existing financial institutions work independently of government and are not influenced by the corruption which exists within the government system.
Economic: Emerging from a recessionary stage of the economic cycle causes cash flow problems to affect small businesses. There is thus a demand for short term financial services. Many small companies do not have the capital to purchase their own plant equipment and so end up spending a large portion of their costs on plant hire. A prime opportunity exists within the market.
Socio-Cultural: Through providing short term financial backing to small companies it will ensure that these companies are able to survive within the industry thereby shortening the gap which exists between big and small business and eliminating the income discrepancies.
Technological Environment: The technological aspect of this business idea is challenging however we know that the technology exists and works efficiently in other financial institutions. Improvements in current financial technologies will allow the business to cater to a larger clientele without any internal problems in the technology system.
NVSTRE001
Well done.
DeleteThis comment has been removed by the author.
ReplyDeleteBusiness Idea-Hard hat technology to track workers work rate and efficiency as well as hours of work to calculate wages accordingly.
ReplyDeletePEST Analysis:
Political- There are no political barriers to operating my business and given the fact that workers safety is priority, there is a great need for hard hats and protection.
Economic- The country is in a recession so development and constructions are scarce so this will result in no demand for the hard hats.
Social-Mt product addresses a market of hard labour and for workers to wear the hat will provide protection as well as work out accurately their wages so people will be encouraged to wear their hats as it measures their fees.
Technological- Appropriate technology will be needed and should be durable which could result in a high cost for the business.
Construction materials recycling program (collects leftovers/scraps from construction sites for a low price and recycles, redesigns, and resells the materials)
ReplyDeletePolitical - There are no political barriers to this business idea. Given that environmental concern is such a hot topic for (some) politicians, we could potentially swing a few to publicly support the business. Also, I've read that a lot of construction waste in South Africa is improperly disposed of, so a company that manages waste in a legal manner could be politically popular.
Economic - There needs to be a balance in cost of collecting the materials (labor, time, transport, refining/sorting the collected materials) to profit made from reselling what is salvageable. I'm not sure how the NPO system works in South Africa, but this could theoretically be swung as an NPO in the US. There is also a benefit to construction companies, especially smaller ones, who would be interested in lower-cost waste disposal, as well as purchasing goods at reduced prices.
Social - Disposing of construction waste (after the good stuff has been sorted out) properly is beneficial to society. Perhaps the center to sell the reclaimed goods could be sold to a specific audience, such as lower-income homeowners* (like a Good Will Home Depot). This would definitely be beneficial, as goods would be accessible at a reduced price.
*home is used loosely here to describe any sort of personal dwelling
Technological - ideally we would have machines to sort the material, similar to the machines used to sort recycled material in a traditional (and high tech) recycling plant. We would need vehicles to collect the material and some method of analyzing the material onsite, prior to collection. (We don't want to be collecting hazardous waste.) It would be beneficial to have a user-friendly contact system (e.g. phone, email, website, iPhone app) for construction sites to arrange for a pick up without too much notice needed.
Business idea - training UCT graduates to be assessors for GBCSA.
ReplyDeletePolitical - there are no political barriers to operating my business.
Economic - Although there is currently limited development, there are still a few green buildings submitting their plans for certification, hence there is a market for assessors. Also, GBCSA only has a small pool of assessor and would like to widen their assessor pool/
Social - Green buildings is a popular social movement at the moment and they benefit the environment, hence marketing (to potential assessors) would be done by advertising the need for green buildings and creating awareness about the benefits of sustainable living.
Technological - No particular technology would be needed, there would need to be training sessions for potential assessors and each participant would likely need their own laptop to review documentation. Hence no technological barriers.
Providing of eco-friendly, temporary and portable on-site ablutions and lavatories for labourers and staff on construction sites. (Ancillary service)
ReplyDeletePolitical – there are certainly no political barriers to the operation of this business, however, it is against the law to perform the act of going to the bathroom in public as it is indecent exposure and therefore every construction site is required to have sanitary ablutions on site. This means that my business is providing a product that is a necessity and therefore there should be a good market for my product.
Economic – as we all know, these are pretty tough times economically and most businesses are trying their best to save wherever possible, however, i am providing an essential service and on that is fairly lost-cost and therefore there shouldn’t be much problem providing this service.
Social – socially, this service will look to improve living and working conditions for all those in the vicinity of the construction site as well as improving health standards and decreasing pollution.
Technological – my ablutions service is extremely basic and easy to use which means that there are very few, if any, technological barriers to providing this service. The most technological part to the business would be the delivering and removal of the units which would require someone which a certified truck drivers license.
Idea- House drainage systems designed for water retention onto on site storage tanks. Minimizing water wastage and maximizing efficiency.
ReplyDeletePolitical- There are no political barriers and this idea could in fact be supported or subsidized by the government in an attempt in a solution to our national water works crisis.
Economic- As we are currently in a term of recession, this idea could prove to be necessary in order to minimize water costs and wastage. Due to initial costs it could be important that the government provides some sort of subsidy.
Social- Socially this idea is aimed at making households more self sufficient. This idea would aid in the development of the lower end housing sector such as the RDP projects. It is a long term goal of making peoples lives easier and cheaper through inivation and decreased wastage.
Technological- Would have to look at the best possible drainage designs which would in turn have to be health regulatory approved. Thus specialised engineers would have to be consulted with.
Services- providing plasticized concrete
ReplyDelete1. Political – There are no political barriers for providing concrete that is made up of waste plastic. The eco friendly concrete will be just as strong as normal concrete and therefore will not be a safety hazard for any buildings.
2. Economic – Recyclable materials are becoming very commonly used now and the economy defiantly supports them. It is an energy-intensive process and which will benefit the economy with a cheaper form of concrete and will bring us closer to a sustainable world.
3. Social – Architects, property developers and construction companies are generally looking for eco friendly building materials for constructing more ‘green’ buildings that will improve their carbon footprint as well as providing a ‘greener’ world.
4. Technology –It is a difficult energy intensive process that needs to be done to recycle plastic, however new technology such as plastic granulators makes it possible. By using post consumer waste plastics and mixing it with concrete, ‘green’ buildings can be built that will be as strong as any other normal concrete building.
Idea : Providing Locker space for construction workers
ReplyDelete1. Political - There are no political barriers for this business idea. Therefore, no piece of legislation will result in higher proposed costs.
2. Economic - The economy is currently in a recession and the housing market it experiences a period of excess supply. Although the market is recovering and the government is implementing "ready-to-go" development projects that will require construction workers.
3. Social - This leads to an organised and safe construction site. Individuals are less likely to steal their colleagues belongings and the construction site will be more organised due to construction workers storing their belongings in a place not so close to where they are working.
4. Technology - The level of technology required is not high. This is because the business is just responsible for providing lockers and not recording who is storing things where. Therefore all that will be required are lockers.
Idea: The propsal of installing a finger print machine at dvelopment sites which accurately records all staff memebers time spent at work.
ReplyDelete1. Political: There are no political barries of entry for this proposal, therefore no legislation will be needed. Although it will help the employee and employer have accurate data on their working hours for the dismisal of members and the potential for CCMA hearings.
2. Economic: The construction labout force is moving towards full time staff memebers instead of casual labour on daily basis. Therefore this product will help in the accurate accountablilty of every member that is employed to arrive on time and leave at the appropriate working hours. This will therefore in the long run increase the efficiency of the companies output.
3. Social: This product attempts at increasing the transparancy and trustworthiness of all members involved as it provides a system where staff members are unbale to sign in for their peers as they may have been able to in the past.
4. Technology: The level of technology used in this product is very innovative and the initial costs may be high, but the long run benefits for the company are vast as it will positively efefct the accountabality and efficiency of all members.
Idea: Aids testing,treatment and counselling for construction workers onsite.
ReplyDelete1)Political: There would be no political problem with this idea. Instead there could be political advantages such as treatment and testing subsidies.
2)Economic: During this economically tough times, a construction manager wouldn't be able to afford members of his work force taking long periods of work of due to illness and this would be an affordable way to combat this.
3)Social: There would be large social benefit to this idea, due to workers knowing there status but it would be important to keep the test results very confidential on the chance of alienation of a worker.
Technology: there is technology available at present to allow for quick and accurate testing of individuals, and therefore this would not be a problem.
Constructing buildings out of Polli-Bricks (redesigned bricks, made out of recycled plastic bottles)
ReplyDelete1)Political: There are no political barriers to constructing buildings out of plastic bottles. One would have to pay an import fee for importing the polli-brick, as local manufacturing is not possible due to the lack of recycled plastics in South Africa.
2) Economic: The economic benefits for constructing a building in this manner is vast. The adoption of such building practices will put South Africa on the map as a country that is keeping up with modern times, and is open to new ideas. The building will become a tourist attraction, bringing economic benefits into the country. Increased labour demand in order to construct and maintain the building.
3) Social Factors: As a result of the negative impact global warming has had upon the world, the building industry has even made a change in the way it conducts business. "Go-green" is the order of day, and what better way to promote "going-green" in the building industry, than by constructing an entire building out of recycled materials, using no electricity whatsoever. The social impact such a venture will have on people who care about the environment will be very positive.
Technology: Plastic bottles are melted and the brick has been designed. In other words, the technology is available. Workers will need to be trained in regarding to constructing. But otherwise, the technology is available.
Idea: A company that installs latest security services e.g. image sensor that will enhance client’s ability to check in at their property. Whether its day or night, they will be able to know and see what's going on immediately.
ReplyDelete1. Political - There are no political obstructions to the operation of the company. Stats show that South Africa has high crime rates particularly burglary related crimes. That said I am confident that my business will do extremely well.
2. Economic – The economic benefits of security services are in the short and long run. In the short run it will reduce crime rates in South Africa and thus encourage investors to invest in the country in the long run, which will result in job creation.
3. Social – With the ever increasing crime rates in South Africa people will spend more to secure themselves and their belongings. Marketing would have to be done on large scale to reach the vast market.
4. Technological – There is high competition in this business, in order to stay top we would have to be innovative and inventive by introducing the latest technology that will make us unique and best option for the customers.