COVENTRY UNIVERSITY

SCHOOL OF ENGINEERING

Postgraduate Engineering Programmes

Module Assignment

Prepared by

Mr. Lionel Martis

Submission Date

2nd JUNE, 2008

Module

Entrepreneurship and Innovation for Engineers

Module Leader: Mr. NIGEL DENTON
 Index

Introduction to Innovation and Entrepreneurship..........................................................3

Andy Denton..................................................................................................................4
Don Vincent...................................................................................................................5
Similarities and Differences...........................................................................................6
Introduction to Kingfisher Airlines................................................................................7
Vijay Mallya...................................................................................................................8
Audit of Kingfisher Airlines..........................................................................................9
SWOT analysis.............................................................................................................13
Industrial life cycle.......................................................................................................15
Competitor analysis......................................................................................................17
Porter’s 5 Forces...........................................................................................................19
Bowman’s Clock..........................................................................................................21
Strategies adopted by Kingfisher Airlines...................................................................24
Challenges for Kingfisher Airlines..............................................................................26
Strategy suggested for Kingfisher Airlines..................................................................28
Ansoff’s Matrix............................................................................................................30
Conclusion....................................................................................................................32
References....................................................................................................................33
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Introduction to Innovation and Entrepreneurship

“Innovation gives the venture the competitive advantage that results in wealth creation.”
Innovation may be in the product or service itself, or in the business processes used to deliver it.
Innovation can be developing and implementing ideas for restructuring the organization, cost
cutting, better level of communication within the organization or for introduction of new
technology. This approach could help the company progress in a successful manner.
Ref: (www.quickmba.com/entre/definition)

“Entrepreneurship refers to an activity which leads to the creation and management of a new
organization designed to pursue a unique innovative opportunity.”
According to an Austrian economist Joseph Schumpeter, wealth is created when innovation
results in new demand and the function of the entrepreneur is to combine various input factors in
an innovative manner to generate value to the customer with the hope that this value will exceed
the cost of the input factors, thus generating superior returns that result in the creation of wealth.
Ref: (www.quickmba.com/entre/definition)
Andy Denton
Andy Denton left school at the age of 15 and joined college. At college he opted for a three
year course in engineering motor vehicle but this didn’t benefit him much, the only
knowledge he acquired about vehicles was during his schooling period. Andy has worked in
successful large firms such as Aston Martin, Ford and Vauxhall, but he quit from the
following firms within a short period due some tiffs with the managements. Denton then
started operating from home itself, his business dealt with the recovery and stolen cars. Andy
now intends to enter into tuning motor sport vehicles.
Characteristics of Andy Denton:
Grasp opportunities: Andy is always been very keen to grab more and more opportunities
available to him be it when he was working in large firms or when he started operating form
home.
Sense of independence: Andy never liked been bossed or pressurized from his managers, he
always preferred to have a sense of independence and freedom so that he could utilize his
potentials to the maximum.
Need for achievement: Andy always dreamt of entering into the world of tuning motor sport
engines and finally after a long ride in his career he is planning to open a new unit which
deals with the tuning of motor sport engines.
Risk taker: Andy had been left jobless once he quit from all the large firms, but he never
lost hope and took the risk of starting his own small business which shows that he had the
ability to take risks.
Ability to cooperate: Andy always preferred to work in teams despite the tiffs with his
manager at Vauxhall, “I like to work as a team” states Andy.

Don Vincent
Don Vincent is 51 in age. He quit schooling and directly went to work. Initially he started his
career as a clerical accountant and moved to London. He then worked as a financial
accountant. Later Don ran a franchise of Ford, the business seemed to be going very good
initially but suffered later on when the parent company reached into a declining stage. Don
had become financially very weak at that instant his wife came to his rescue and they started
a water cooler company known as the “Fresher water coolers” by borrowing money from the
bank. This firm started with some initial minor difficulties but flourished within no time.
Characteristics of Don Vincent:
Grasp opportunities: Don has been very adaptive towards any opportunities that come
across his way be it owning a franchise of Ford or starting a new water cooler company.
Risk taker: Even when Don was in heavy financial crises he started a new business with the
help of his wife which turned out to be worth the risk.
Self confidence: Don was unaware about the water cooler business but still he stepped into it
with a self confidence of achieving success in the business.
Need for achievement: Don always wanted to own his own business though he was
financially broke after owning a franchise of Ford; he didn’t step back but else borrowed
money from the bank and started a new business along with his wife.
Business skills: His role as a financial accountant helped Don develop an analyst skill which
proved to be a key factor that drove him to become an entrepreneur.

Similarity and Difference

In terms of individual potential and achievements Don and Andy both are of equivalent
caliber. But in terms of attitude towards their employees both of them marginally differ. Andy
would prefer requesting his employees to carry out a job; on the other hand Don contradicted
this approach. In my view both are right on their own part, the approach of requesting
employees would motivate the employees and on the other hand in an comparatively bigger
organization like Fresh water following this approach wouldn’t be feasible because of the
larger organizational structure.
Introduction to Kingfisher Airlines

Kingfisher Airlines is a wholly owned subsidiary of United Breweries Holdings Limited (the
second largest brewery group in the world), the UB Group's investments holding company.
Kingfisher Airlines has been allocated the IATA airline code of 'IT'. The UB Group is one of
India's largest conglomerates with a turnover of US $2 billion and is the largest Indian
manufacturer of beverage alcohol-beer and liquor. With the foray of UB Group’s birds into the
Indian aviation industry, Kingfisher Airlines has become a force to reckon with. The Airline
already has a number of firsts to its credit. Kingfisher Airlines Limited is an airline company
based in Bangalore, India. This airline was introduced in the market to target the domestic luxury
segment.

Kingfisher Airlines was introduced into the Indian airline market by the Indian Business Tycoon
Dr Vijay Mallya (the owner of United Breweries Limited). It was introduced on 9th May, 2005. It
operates in 37 destinations with 218 flights a day. It has a fleet size of 71 and also the first Indian
domestic airlines to introduce the Airbus A380.

Kingfisher is one of only six airlines in the world to have a five-star rating from Skytrax, along
with Asiana Airlines, Malaysia Airlines, Qatar Airways, Singapore Airlines and Cathay Pacific
Airways. Kingfisher airlines have been awarded “The best new airline of the year 2005”.
Presently kingfisher airlines has acquired Air Deccan (one of the major profitable domestic low
cost airline) hence penetrating into the lower segment of the market too.

Ref: (www.thehindubusinessline.com/2007/06/01/stories/2007060106400100.htm)
Vijay Mallya
Vijay Mallya is 51 years old was born in India. Vijay Mallya has amassed an enormous
fortune from inherited and growing. With an estimated current net worth of around $1.5
billion, he is ranked by Forbes (2007) as the 692th-richest person in world. UB group
chairman Vijay Mallya, a trained pilot himself and an avid aviation enthusiast, has delivered
an ultimate product to the Indian aviation industry which is called as Kingfisher Airlines,
names after the popular liquor brand of the UB group (Taking a very different approach
again).
Ref: (www.how-to-make-more-money.com/Vijay-Mallya_biography.html)
Characteristics of Vijay Mallya
Grasp opportunities: Since the Indian aviation industry is a growing market, Vijay Mallya
positively noticed the opportunities of expansion in this industry hence launched Kingfisher
Airlines.
Risk taker: Vijay Mallya did know the strong competition he would have to face from the
old player Jet Airways which could shatter his dreams but he never went on a back foot,
instead he took the risk of launching Kingfisher Airlines with a focused aim of conquering
the industry.
Need for achievement: Vijay Mallya is very much known for his different approaches in any
industry which helps him outplay the others. To capture every possible industry has been his
goal from the start of his business career.
 Sense of independence: Vijay Mallya likes to be his own boss rather than working in
someone’s shoes. The freedom to play and create a market of his own makes him a successful
Tycoon.
Ability to accept change: Though Vijay Mallya makes his own stand in the market but all
his groups have be very much adaptive to the changes in both the external and internal
environment.
Ref: (www.gaebler.com/entrepreneur-characteristics.htm)

Audit of Kingfisher Airlines

This audit deals with the present situation in various areas of the organisation.

1. Strategic Planning

• Target Market: The Company has targeted a niche market for its operations. The
company operates in the luxury segment of the Indian aviation industry and leads the
competition with its world class services at competitive prices
• Master strategy to stay ahead of the competition: The Company has adopted
aggressive strategy of customer acquisition through world class services which have
increased their market share and made them a preferred choice within the customer
base.
• Transparency within the organisation: The employees are aware of the company’s
policies and the top management encourages the employees to develop their skills to
help them become the best in the industry
• Potential opportunities for business development: The Company has overtaken its
competitors in order to extend their services in the low cost segment along with the
existing premium class and this has provided them with an opportunity to develop
and extend their operations more profoundly.
2. Organisational Structure

• Relationship between individuals and functions: There are specific people for
specific jobs in the company and the company has hired some of the most experienced
people in the industry to help them move towards their goal of becoming a leading
player in the Indian aviation industry

• Job description: There are clearly defined roles in the top and the middle
management and these are complimented by the ground level employees in

the company. The company has a sound organizational structure which is backed up
by a strong parent company.

3. Human Resource Management

• Recruitment: Recruiting quality people is a major plus point of the company. They
hire the best people in the industry and pay them handsomely so that they contribute
to the company’s goals and ambitions to the best of their capabilities. The crew
members of Kingfisher are paid more than their counterparts in any other airline
company in India.
• Training: The Company provides its employees with suitable training and
development opportunities to help them grow and develop their skills which are
unmatched in the industry. This aspect of their training has helped their employees in
creating a sound impression on their customers and they have become a highly
admired airline company in India.
• Performance appraisal: The employees are paid good salaries and performance
based incentives to motivate them even more.
4. Marketing & Sales Promotion

• Market Segment: The Company operates in the premium segment of the Indian
domestic segment offering world class flying experience to its customers. The
company is entering into the low cost sector along with the existing premium
segment.
• Mode of Marketing & Sales:The Company does extensive marketing through
celebrities, sponsorship of sports events etc. The sales are mainly done through
offices and websites and through SMS booking.
• Market Research: The Company has done an extensive market research before
entering into the aviation industry and they have specifically targeted a niche market
wherein they are concentrating on the premium segment. They are also entering into
the low cost segment through acquisition of smaller competitors.

5. Pricing of Products

• Pricing Strategy: The Company offers world class services at the most competitive
prices. Their services are rated as the best in the Indian aviation industry and their
pricing strategy aims at acquiring customers from their competitors by providing state
of the art services at very competitive prices.
• Break-Even Analysis: The company carefully analyzes its load factors in order to
optimize their investments in the operations and to break even because they are
operating in a very dynamic industry and it is very crucial for them to have a measure
their costs so that they can optimize the profitability of their operations.

6. Location

• Accessibility to Market: They have a good accessibility to their target market

through modern fleet of aircraft and the best trained staff in the industry. They are
 backed up by a strong parent company so they can afford to spend considerable sums
of money to establish themselves as a major player in the Indian domestic airline
industry.
• Availability of customers: They have earned their customer’s trust with their services
over time and have willing customers ready to use their services again and again and
this has given them an edge over their competitors.

7. Planning for Growth

• Advance Planning: They are entering into the low cost sector along with their
existing operations in the premium segment and this offers excellent chances for
future growth as they will have a monopoly in the industry through a well targeted
product mix wherein they will have a major share of both segments.

• Recurring Crises: Despite their best efforts to become the best airline in the industry,
they have not been able to make considerable profits ever since their introduction in
the industry. They are lagging behind the nearest rival but they are still trying their
best to cope up and become a market leader.

Ref: (www.prenhall.com/scarbzim/html/smallbus.html)
SWOT Analysis

A scan of the internal and external environment is an important part of the strategic planning
process. Environmental factors internal to the firm usually can be classified

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