|Subject Title||Creativity and Innovation for Business|
|Assessment Title||Scenario Analysis|
|Learning Outcome/s (found in the Subject Outline)|
|Assessment type (group or individual)||Individual|
|Word count||1100 (+/-10%)|
|Assessment instructions||The beginning of creative thinking in business starts with careful analysis of the scenario. Scenario analysis is a process of examining and evaluating possible events or scenarios that could take place in the future and predicting the various feasible results or possible outcomes for your venture.|
The world around us is dynamic and ever changing. In order to confront the rapidly-evolving world around us, you need to have a system in place to adapt with the changes. It is absolutely essential to develop a solid understanding of the industry where you will operate.
In this assessment you will undertake a scenario analysis of an industry in which your product or service will compete. The goal is to understand the ins and outs of this industry so that you can build a comprehensive understanding of it. Scenario analysis is a great tool that helps to scan the environmental factors surrounding a business.
Your scenario analysis report should contain the following parts:
Provide a brief overview of your major findings presented in this report. This is where you need to summarise the main points as a result of your extensive research and formulation of your scenarios.
You need to provide the reader with context about your idea. You may consider the following points when writing your introduction:
Reflection on the chosen industry
(You will need to include at least 5 reliable sources - No blogs)nce you have collected your ideas on your selected industry and product/service, you will conduct research. The purpose of the research is to gain an understanding of its trajectory - past, present and future by looking at trends and developments:
Creativity and Innovation for Business
The report is based on the launching of a new product in the market of Australia. The product is turmeric, and in this regard, various situation analysis is carried out in this report. These analyses will help to understand and evaluate the market of Australia to understand the scope of the product turmeric. In the present world, due to the presence of globalisation, the demand for turmeric has become very high. For that reason, the import and export of this product are in high demand irrespective of their production areas. Hence the target industry is the food industry of Australia, and it can be penetrated effectively.
The forthcoming report is entirely based on launching a product to an existing industry. Therefore, it has become crucial to ascertain the influence of external environmental factors on the estimated business growth. Also, a scenario analysis is done in this report to create some best-case and worst-case scenarios that can arise in the future after launching the product in the market. Therefore, concerning the report, turmeric is the chosen product introduced in the Australian market. It can be stated that due to globalisation, most of the products are available in different countries irrespective of the cultivation point of that specific product. It is found that the export value of turmeric in Australia is USD 296.03 K that inspired me to consider the business for launching a new business. As per Turmeric producer Anthony Rehbein, the demand for turmeric is increasing rapidly, due to which it is also viewed as a superfood (Buchanan, 2016). Therefore, the demand for the international and national market is chosen. Alongside this, it can be stated that the rise in demand for turmeric provoked people to choose the product. Therefore, the entire target industry is the food industry that needs to be penetrated by placing the product.
2.1. Reflection of the chosen industry
2.1.1. Historical information on turmeric
The production of turmeric was started 4000 years ago in Indian during the Vedic era when it was used by people as a culinary spice. After that, turmeric reached China in 700 AD and West Africa in 800 AD (Benzie & Wachtel-Galor, 2011). Nowadays, turmeric is cultivated in different regions for different purposes like spice, medicine and so on. The characteristics and features of the ingredient are very significant and create an excellent impression among its users.
2.1.2. Overview of the existing product
3. Analysis of the significant situational factors
As per Bilton & Puttnam (2007), creativity is the core element for introducing a new business in a market. In this regard, it can be argued that awareness about the external factors is of utmost importance to make creative decisions that can sustain a business. Therefore, a PESTLE analysis is done in order to seek a deep insight into the industry,
|Political||The constitutional monarchy of Australia is controlled by the queen. The governor-general level of the country represents the federal level of the nation (Rashid, Looi & Wong, 2017). The monarchy of the nation makes the political condition stable, due to which it can be argued that investors can freely invest their money for opening a new business. Hence, it can be argued that the business of turmeric will achieve success due to government support. |
|Economic||The freedom score of Australia is 82.4, which makes the country the 3rd most accessible country in the world. The GDP of Australia is $1.4 trillion, and the growth rate is 1.8% (Heritage, 2021). Hence it can be argued that stable growth of the country and due to keeping a good score compared to the countries of Asia Pacific region by opening the business of turmeric, a high revenue can be generated. |
|Social||Becoming a multicultural country, the influence of globalisation is massive on Australia that represents high demand for turmeric. |
|Technological||The technological industry of Australia is overwhelming as government bodies support the growth significantly (Frue, 2019). However, data breaching oriented is present in the country regarding which some measures need to be taken. |
|Legal||Regarding employment, various laws are implemented within Australia, and concerning this, it can be stated that introducing the business new employment opportunities can be provided to people. |
|Environmental||One of the driest inhabited nations is Australia that will impact the production aspect of turmeric. A rapid change in climate and water insecurity are major two issues that exist in Australia. Therefore, business authorities need to take potential measures to anticipate the challenge. |
Table 1: PESTLE analysis
Source: (Developed by the author)
4. Scenario analysis
Scenario analysis is of utmost crucial to recognise the potential issues that can arise in future regarding a specific business (Wright et al. 2019). It also helps to address the risks by making tactical decisions. Therefore, the scenario analysis is done below to ascertain the future risks and opportunities.
The situations are identified as per the solid and low influence of the two scenarios taken into account. Therefore, if the consumption rate of customers regarding turmeric is not measured correctly, it will impact the investment concerning inventory, production, sales and others. Alongside this, another significant situation that can arise is the inadequate flow of the supply chain. Furthermore, if the authorities are unable to focus on sustainability, it can impact the production rate. Also, climatic conditions are another privileged issue that influences the production aspect. Lastly, the focus should be on the yield point that will increase the sales volume of turmeric.
Figure 1: Scenario analysis
Source: (Developed by the author)
Concerning the above discussion, strategic options are developed, which are,
Cost leadership Strategy will be taken into account in order to keep the marginal cost of the product. Cost leadership Strategy help to drive the business growth of a new venture (Chepchirchir, Omillo & Munyua, 2018). Another strategic option is a merger with an international company that can help to address market demand and also sustain business growth.
As per the above discussion, it can be concluded that turmeric is of utmost crucial as it can help to meet the rise in demand for a superfood. However, some significant issues are identified which are privileged in the business. By developing the scenarios, some crucial situations are identified that can impact negatively and positively on the business. Also, two strategic options are included in this report by considering which situations can be anticipated.