Answer

Business Case/Proposal for Northern Territory Empowerment Enterprise,

A small organization operating in Darwin, Northern Territory, Australia

Business Case for Northern Territory Empowerment Enterprise

Executive Summary

Northern Territory Empowerment Enterprise (NTEE) is an organization that seeks to address the plight of young educated yet unemployed people in Darwin, Northern Territory (Australia). In its simplest, it assists young unemployed people put their different skill sets to use thereby achieving economic empowerment. It focuses on the disciplines of information technology and computer science but plans will be made to expand and encompass other areas in the near future.

The enterprise is located in Darwin, Northern Territory, Australia. This is where it operates with the sole aim of improving the livelihoods of talented young people who could not be necessarily having a means to earn for themselves hence economic empowerment.

Reasons

Reasons for starting the Northern Territory Empowerment Enterprise stem from the humanitarian objective of improving livelihoods through economic empowerment. The number of unemployed educated young people has been drastically going up and this has been mirrored by similar crime rate patterns. A core object of the enterprise is to empower these young people and by so doing help them to eke a living by appropriately applying their skill sets.

Business options

Being a small independent organization bringing together young educated people (with diverse skill sets) Northern Territory Empowerment Enterprise enjoys a competitive advantage in the sense that it is the only one of its kind in this location. The selected disciplines allow creativity hence more likelihood for the provision of unique services. By purchasing the services offered by NTEE customers will be assured of enjoying the services of experienced as well as fresh minds in the field. The vast experience will be evident considering that the area has a relatively high number of people who have studied abroad.

The following are NTEE’S business options:

Research and Writing

NTEE shall offer research and writing services in the Northern Territory. Letters, newsletters and articles are some of the items that the said writing shall entail. Researching and drafting corporate/web content for businesses will also be offered.

Website

Considering that the targeted talent pool (prospective workforce) will be young people specializing in information technology and computer science as well as related disciplines, NTEE will be better-positioned to offer website-building services. As the CEO need not necessarily be conversant with the dynamics of these disciplines, assuming an oversight/supervisory and management role will be imperative. Besides, learning contextual basics for the sake of humanity and community good will be a positive step. It is advisable to learn extra skills for the sake of efficiency and competence (Harvard Business Review Press, 2017). Efforts shall be made to ensure the NTEE team builds the best websites for clients so that the obvious business objectives of attracting and retaining customers can be achieved.

Business cards and brochures

NTEE shall design business cards and brochures for businessmen and corporate entities. The skilled young people making up its workforce will use their creativity and expertise to design the most appealing cards and brochures that any client would ever desire.

Branding

The enterprise will provide branding services to business entities.

Logos

Designing and making logos will be one of NTEE’s key business activities.

Promotion, advertising and identity

NTEE will help businesses (corporate entities) in promotion, advertising, and identity creation and communication activities especially through electronic media.

 Expected benefits

The benefits expected from founding NTEE are many and multi-faceted. They include but are not limited to the following:

Reduced employment rates: It is expected that the project will in a great manner help in significantly in bringing down the rates of unemployment in Northern Territory. Indeed, the problem of unemployment is one that local and federal authorities are constantly looking for ways to address. As opposed to purely being a profit-driven venture, NTEE shall also be seeking to improve the lives of local people by providing young educated and talented people, more so the unemployed, a means to earn for themselves hence economic empowerment.

Lower crime rates

The fact that NTEE will create jobs for the unemployed youth will work to the effect of lowering crime rates in the larger Northern Territory.

Giving back to society

From a humanitarian and community contribution perspective, a major benefit to be derived from this project is that it will provide a crucial avenue for giving back to the society. Any philanthropist would agree that engaging in efforts to improve the very place where one has been brought up is one of the most noble steps to take. It is expected that with subsequent expansion NTEE will consider engaging and/or investing in more aggressive corporate social responsibility initiatives.

Improved quality of life

A general benefit that is worth mentioning is the expected improved quality of life especially for NTEE employees and their families. It is also expected that NTEE offerings will contribute in one way or another to the improvement of the quality of life of its clients.

Expected dis-benefits

Distraction from other life activities

As Klastorin (2004) presents, every project has its own trade-offs that must be taken into account even in efforts to strike a balance between what is achieved and what is lost. While there is excitement about this project, uncertainties in the business world make everything unpredictable. Importantly, a lot of focus is going to be placed on the NTEE project and this might imply ignoring other equally important activities or engagements in life. For instance, there is going to be limited time for social activities as a project of this nature calls for maximum focus and concentration.

Swot Analysis

The NTEE’s strengths, weaknesses, opportunities, and threats are as tabulated below:

Pricing strategy/tactics/approach

Pricing for the enterprise’s different offerings shall be done as follows:

Competition-based pricing

Pricing using this approach will largely depend on what competitors in the same market will be charging. They shall include all SMEs offering one or more IT-based services.

Perceived-value pricing

Prior to pricing, a general survey will be carried in the neighbourhood where prospective clients shall fill questionnaires and indicate their expected prices depending on the perceived value of the different NTEE offerings. The averages of these responses will of course have to be weighed against competitor prices and other market dynamics.

Discounted pricing

It shall be imperative to apply bonus or discounted pricing especially during start up as that will be key to penetrating the market (Hill, 2013). This strategy might also come in handy in times of extremely low sale volumes. However, they shall have to be advertised as promotional or special prices since a time shall come when necessary price adjustment and normalization will be done (Schindler, 2012).

Location

NTEE is headquartered in Katherine as the place is somewhat strategic in terms of its centrality in the more densely populated parts of Northern Territory. The specific location within this locality is 700 metres from the CBD, giving it more accessibility to customers visiting the central business district as well as those who may not necessarily have any business thereof. Preferably, a warehouse with good ambiance gives a perfect office/working space for NTEE. Good natural light is an important element that must be present. Fire extinguishers and hose are centrally located at the NTEE premises.

Sales/Distribution channels

NTEE uses the following sales/distribution channels to reach it customers:

• Internet
• Promotional disk kits
• Yellow pages
• Direct delivery

Advertising and promotion channels

NTEE uses the following advertising and promotion avenues:

• FM radio
• Television
• Print media
• Online avenue /internet
• Word of mouth

Branding

For branding purposes, NTEE is keen on the following:

• Courteous and professional conduct by staff
• Artistic and cool dress code, not necessarily suits
• Corporate appearance (should not be boring or too serious)

Timescale

The timeline for the completion of this project can be conceptualized as the time it will take to fully set up and have NTEE running.

            Table 1: Project timescale

            Source: Self

Costs

The main costs relate to the acquisition of adequate office space and equipment.

            Table 2: Costs

Source: Self

Major risks

Risk identification and management is one of the most crucial aspects of successful project management (Hind, 2014).While the major risks are many and multifaceted, the most significant ones centre on business interruption. They include:

Market developments

Across the globe the risk posed by market development(s) has become a top concern for different business enterprises (Griffin et al., 2014). While stagnant and volatile markets as well as effects of Mergers and Acquisitions are of concern to most businesses, it is thought increasing digitalization as well as the deployment of newer and more sophisticated technologies will affect the established business model for NTEE. This development usually increases the risk profile of the industry. For instance, it could be highly likely that new liability scenarios will arise due to changing market trends as would be prompted by the mentioned development(s). The business sector will most likely be affected by increasing digitalization as well as newer technologies, a fact that could also render current skills irrelevant and largely ‘useless’.

Fire

A fire outbreak by whatever cause could have devastating effects on NTEE and its operations. While the enterprise has paid adequate attention to the possibility of this risk and mitigated it, it is still unthinkable what a fire outbreak would do to the premises, equipment, and operations at large.

Supplier failure

Suppliers not performing their obligations to the letter could disrupt NTEE’s business operations. Supplier failure is recognized as one of the major risks any business can face (Ostring, 2004).

Regulation and Legislation changes

According to Reuvid (2014), this risk is related to possibility of changes in not only the legal but also political environment. Specific aspects include increased role of the government, change in government and economic sanctions.

Difficulty in accessing credit

Like any business, NTEE might find itself in need of credit but accessing the same might not be as easy. Such difficulty would be prompted by, among other factors, strict terms and conditions in the credit arena.

Talent management

Going by the nature of NTEE’s operations, it is expected that with time the enterprise will attract a diverse talent pool. This might pose challenges in terms of human resource management. Risks related to human resource management have been identified as some of the top challenges faced by businesses operating in emerging markets (Wheelen, 2018).

Pricing pressure

 NTEE is likely to face the risk and pressure of pricing. Both mature and immature markets face this risk especially as may be caused by slow/stagnating rates of organic growth. National austerity programs have been noted to be a key driver for this particular risk.

Investment appraisal

Based on projections of its core product/service offerings, NTEE’s investment appraisal is as follows:

First twelve months of operations:

Weighing this against costs ($25990), it is clear cash flow is negative for the first year mainly due to start-up costs. With subsequent expansion and market penetration, cash in will be expected to double for the second year of operations, assuming all other factors and market conditions remain constant.

Therefore,

Income for first year: $15160

Income for second year:  $30320

Assuming total payments (e.g. taxes, salaries) for the first two years is $12000:

Profit= (15160+30320)-(25990+12000)

            =45480-37990

            =$7490

Clearly, the venture is economically feasible and worth investing in.