Business report

BUSINESS REPORT-TEAM F
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M.Sc Management
Business Report - Entrepreneurship
Team F – Concentrated Solar Panels
Presented By Student Number
Sai Malathi Anandini Valluri 15039498
Rohit Chanan 16113489
Cheran Elansezhian 15047644
Sukruti Vikram Pandit. 16106318

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The Inception of the Idea
The idea of a Concentrated Solar panel came in after seeing the massive electricity bills that we
as students were paying in order to run the day to day chores. Though there were traditional solar
panels, we as a team wanted to look for something cheaper, user friendly and easy to understand
from a customer’s point of view.
We did a survey in order to understand the knowledge of solar panels and its efficiency among
regular citizens that made us come up with this idea.
We understood that not many are aware of the solar panels and that it is a onetime investment for
a better future. It was surprising to know that though many were aware of the climate change,
they didn’t take the step to go for an alternative source of energy as they assumed the price to be
high. We conducted a survey in order to understand a consumer’s point of view.
 Barriers in the Past and the Potential challenges
There were certain barriers in the past for which the concentrated solar panels business didn’t
seem to work so well among everybody. One of the major reasons was lack of awareness among
a lot of people on the importance of renewable energy. Also it had got to do with the markets not
encouraging the renewable energy based products, also technical barriers played a major role as
this stopped consumers from buying it. After an intense research we found that there was
inadequate workforce skill and training.
Keeping this survey in mind we on behalf of Team F built our Business canvas

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-Installation cost
-Monthly lease source.
-word of mouth
contributed to 35% of
revenue.
-Pay back period.
(3years)
-revenue increased to 3
times.
-Customers prefer
paying in cash we offer
multiple payment
options.
-Cost Inherent
technology
-P.V cells,
Crystallinesilicon
most expensive
-Reduces power
consumption.
-Assembling cost is higher.
-Fixed costs includes salaries,
rent, Depreciation and
amortization.
-Residential
areas
-Corporate
-Education
institutes
-Personal assistance
-Automated Service
-Video Tutorials
B2C , B2B
Online payment
Blogging websites
Partner websites
1. 1solar panel= 3
traditional
solar panel system.
2. Electricity bills
reduce.
-Freshnal lens by
3M
-Solar Electric
Ireland
-Trojan Cells
-Skilled and non
skilled
-For support and
assembling
Franchise Model
B2C channel
Service check ups
 CONCENTRATED SOLAR POWER
Conventional energy resource have been replaced by energy innovations as the conventional
energy is at shortage level, along with serious environmental issues. It is believed solar energy
never gets depleted. The innovative solar products has created more value by efficient solar
conversion to meet the future energy needs. PV solar energy has shown impressive growth at
times but technology has pushed it to much effective production by concentrated solar energy.
Concentrated solar panels are built with a concentrating lens above the panels to concentrate
more energy from the sun. The concentrating lens above the PV panels made the energy
production 3x times more than the other existing traditional solar panels and large amount of
reduction in electricity bills. This created opportunities for investors, start-up companies and
solar entrepreneurs in this emerging solar market.

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We have chosen this emerging market to start up a business model with all the analysis through
business model canvas answering those questions successfully to improve the strengths from
overall perspective and creating more value than the other previous existing model. Our
theoretical background have described those nine building blocks of business model canvas
which includesthe value proposition, customer channels, customer segments, cost structures, key
activities, key partners, customer relationships and revenue streams.
 KEY PARTNERS
As our company is based on assembling, our key partners in business model canvas has focused
in maintaining and expanding relationships with customers, suppliers, investors or any other
third parties to gain customer base and finance base. Our key partners for this business models
are those who manufacture
1. The concentrating lenses
2.P.V cells
3.Battery to store the energy produced from the sun
According to our canvas, 3M will be our supplier of concentrated Fresnel lens who manufacture
the finest quality of Fresnel lens to concentrate the sun light for our product. Supplier for PV
cells to our business model is from Solar Electric Ireland who are the major PV cells supplier
and producer in whole Ireland at a cheap cost than from other suppliers in this market. Trojan
cells will be our supplier in terms of storage purpose, Trojan cells are already an established
battery supplier in this market with a cheap price than the other battery companies. All our key
partners in this business model have been structured in terms of the quality their product
produce, price structure and other services. The key partners will be our backbone in terms of
supply of the product which they manufacture is all brought to our assembly unit for the new
innovative energy product.
 KEY RESOURCES

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The key resources from our canvas model will answer those questions with respect to human
resources as the key asset, technological resources for assistance, support, maintenance and
installation, a place for assembling the final product. In terms of labor resource both skilled and
unskilled are employed in our workspace.
About 12 skilled workers are employed in our unit along with 15 unskilled workers. The workers
are given training initially by the workshops where the unskilled workers are trained to assemble
all the products from the supplier and whereas skilled workers are trained for installation and
maintenance purposes for customers at the times of service. Our skilled labours also helps us to
design the concentrated solar panels with respect to the customer needs.
A place at least of 3000 sq.meter minimum is needed for assembly process. Source of funds are
from the loans of government where support to such value creation projects in renewable energy
are higher through initial public offer. Patent rights are obtained as our business model are in the
position of monopoly.
 KEY ACTIVITIES
It is a business to customer model where the end customer gets the product obtained through our
distribution channels after assembling in our unit. When the customer purchases the product, we
offer them periodic service regularly with a reminder through e-mail or messages through
registered mobile number.
The periodic services for our customers are visited by our trained employeeswhere first three
service are free after every purchase of the product. Considerable charges will be applied after
the first three free services respectively to our customers.
The main key activities that our company will perform other than product, service and value are
awareness. It is believed that previous renewable products and services have failed in reaching
the awareness level high. Our marketing practices have concentrated more in creating valuable
awareness the people have to know about the benefits that such products can give them as well

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as in concerns of environment. Online platforms and other Social media will be our key platform
in spreading the message. Along with the awareness measure our company offers an integrated
CRM which can handle 24*7 queries from the customer side. Company’s website will also
specify our product descriptions and other services we provide in terms of product, service and
awareness videos.
 VALUE PROPOSITIONS
Many know what a solar energy can give, but our objectives and goals are to maximise the
efficiency of solar energy and reduce the electricity bills and its consumption from conventional
energy resources. The key value propositions of our business model are,
 Concentrated solar panels are built to capture 3 times more power than one single PV
solar panel. This 3 times more energy production can reduce the electricity bills more
than 30%. Such energy allows customers to use for a long period of time.
 Two models of our concentrated solar panels, 2kw and 4kw can give customer to choose
according to their need and other purposes.
 It is a onetime investment that a customer pays for a long last energy production. Once it
is installed by our skilled persons there is no other investments needed other than services
or any maintenance.
 For residential purposes, it covers a small space on their roofs than the previous PV solar
panels which can take a quite larger space for a 4 KW unit.
 Reduction in electricity bills is assured as concentrated solar panels cause produce more
power than other existing solar products. Minimum of 30% cost cut in monthly electricity
bills.
 As the product is new to the market, specialized and trained employees are employed for
the periodic service and maintenances or even at the times of repairs. First three services
after purchase are free to our customers at their convenience.
 24*7 usability even when the sun is covered with clouds. The battery are efficient enough
to store power throughout the summer to meet monsoon or winter needs.
 All time customer assistance is provided through our toll free numbers and integrated
CMR service where the queries can be handled immediately.

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 Our product will help residents in remote location where the source of electricity is not
reliable.
 At an era of reducing the carbon impacts on environment, our product is attractive
enough to provide solutions on environmental concerns and global climate change.
 CUSTOMER RELATIONSHIP
Customers are the vital part of any business or start-up. Consumer satisfaction assumes
an essential part in the business. Not only is it the main pointer to quantify client loyalty,
distinguish unhappy clients, diminish churn and income but it is additionally a key
purpose of separation that helps you to pull in new clients in aggressive business
situations.
1.In order to retain the existing customers – The customer will have access to personal assistance
where in the service man comes to the house as per the customer’s request.
2. The automated services will be provided online which is free for all the existing and new users
.
3. Timely video tutorials will be provided that will give a deeper idea on what the customers are
investing on and what to expect from us.
4. There is an online 24*7 support team which is ready to handle live chats, phone calls and
support issues throughout the day.
 CUSTOMER SEGMENTS
The product “concentrated solar panels” concentrates mainly on the customer segments of
households in Ireland followed by various lightening service given by event management firms,
corporate companies, shopping malls etc. the product will be supplied to the above market
segments as a leasehold property of the company as well as by the method of complete sale.
It will be a one-time investment for the customer who buys it and the ones which are on lease
and rent will be charged accordingly.
The main focus is the household of Ireland as the traditional solar cells fail to catch ample
sunlight due to the weather conditions locally. The target customers were surveyed and the
opinions were more on the positive side. The main reason behind choosing these sectors as a

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target market was the necessity or need for cheap as well as reliable energy resource which could
provide energy at costs lower than that of electricity and which is highly durable.
 CUSTOMER CHANNELS
An organization can convey its strategic offer to its focused on clients through various channels.
Successful channels will disperse an organization's strategic
Offer in ways that are quick, productive and practical. An association can achieve its customers
either through its own particular channels (retail front), accomplice channels (real merchants), or
a mix of both.
The customer channels are divided in various areas of distribution. In the area of solar energy,
creation of awareness is must in people as there are traditional thoughts that have captured the
minds of people generally.
The survey showed a lack of awareness about the usage and reliability of solar energy. People
have a thought that solar energy usage may be a critical chore but the scenario is completely
opposite. Concentrated Solar panels help to lighten the entire house very easily and at a
reasonable rate when compared to the current electricity rate in Ireland. Therefore to create
awareness among people social media is the main source. Furthermore, local magazines and
newspapers will also act as a medium to create a sense of consciousness in the local citizens.
Various strategies are used to educate the customer segments about the inborn quality of the
product that includes mainly a cost saving. Move over, a detailed talk with the customers about
the long term costs of unstable fuel supplies like coal, oil, natural gas and other fossil fuels.
Usage of social media marketing, video documentaries and blogging will also help to create
awareness in youngsters. The product is beneficial because it is a big cost saver and a one-time
investment.
Furthermore, the savings begin from day one of installation. Solar panels are also an advantage
in terms of environment too. A periodic maintenance is provided after every four months which
is definitely a lower cost than the cost of electricity that is to be paid after specific span.
When a person buys a concentrated solar panel he is going to benefit for sure as there is no such
point which would create a problem to him. The product will be delivered safely to any part of
Ireland safely with a team of experts who will install and help the customers to understand the
entire process of the product.

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Even after the installation a good relationship will remain with the customers as a periodic
maintenance service after every four months will be provided by us. The solar panels will require
maintenance mostly during winters. The solar panels absorb high intensity of solar energy even
during low lights in very short period of time. Furthermore, a team of experts are assigned to
deal with customers who require online assistance. This team will provide assistance 24 into 7.
These services of online assistance, after sales service and maintenance and the major cost
saving of electricity helps the product to stand out and helps in increasing the sales. The strategy
leasing the property will provide the corporate to install these for a specific period of time and
the renting system will help to gain instant revenue in a short span of time.
 Revenue streams
A Concentrated solar panel consists of three important components viz. PV Cell, battery and a
lens. A concentrated solar panel is one of the most cost efficient model in the real world for both
corporate and residential use. Saving of energy bills is one of the most prominent factor in the
minds of public in general.
Customers are now paying for the traditional solar model which costs them around €10,000 in
Ireland and almost similar rates in rest of the EU countries. However they do not get the features
that we are providing (3x times faster energy saving). According to the survey customers prefer
to pay on the concentrated solar panels rather than spending on anything to be installed at home.
We would be charging the customers with the one year warranty @ €10,100 which is pretty
much competitive and long lasting with an average life of 20 years.
Currently customers are paying on the traditional solar model. According to the survey
customers would rather switch to our model paying slightly higher amount on the concentrated
solar panels rather than the traditional solar model.

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There are many payment modes that can be done but as of now customers generally pay in
cash or through bank drafts. However, our business would give many options for the customers
to pay their invoices as we have multiple payment modes which includes payment through bank
(NEFT, ECS). Customers may also pay via Debit card, Credit cards, and demand drafts. We have
an option of Cheque payment as well but the customer would not be given the delivery until the
Cheque gets cleared in our business account.
According to the market research and some important cost sheets it has been observed that
maximum revenue is earned in after sales service which contributes to around 60% profit margin
as compared to the spares and sales. The spares and other contributes around 20% to the revenue

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according to the cost sheet. Advertising increases the revenue for a long period of time which
booms the sale of the model consistently.
A short comparison between traditional model and concentrated solar panel would give a
proper idea to the customers beforeinvesting into a concentrated solar panel.
Particulars Concentrated solar Panel Traditional Solar Panel
Purchase Lease Purchase Lease
P.V cell €4200 €4250 €4150 €4200
Battery € 800 € 850 € 750 €800
Lens € 15 €20 € 15 €20
Power saving 3x 3x 1x 1x
Payback Period 4 years -- 12years --
Recommendation Buy Lease Do not buyDo not lease
 Please note:
**Payback period indicates the return on investment for the customers. In this case it is observed
that since the power bill decreases 3 times more than the traditional model the payback of the
concentrated solar panels will be done in hardly 4 years whereas the traditional model would
require 12 years to give return on investment.
 Cost structure:
Inherent cost: Includes maximum investment on asset i.e. stock from business point of view. PV
cell battery and Lens altogether combine to half of the cost of investment. Labor and rent are the
extra costs which can be considered as inherent. Having included these costs research and
development also costs high towards the cost structure.
Most expensive resources include research on the P.V cells and concentrated lens.
Labor and rent are comparatively cheaper however they are variable and change according to the
requirement and demand of the product in the market. As this model can be installed anytime
throughout the year but many people prefer buying it between the months of April and
September. Key activities in the business involve advertisement and promotions. It also include

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surveys and marketing. However maximum expenses are incurred on promotion of the business
through stalls in the exhibitions and public hoardings and radio advertisements.
The business is considered to be cost driven with most suitable cost to the customers
considering slightly less profit margin compared to the traditional solar model as the business is
a startup and people aren’t aware of the model.
Fixed and variable costs in the business includes:
 Fixed costs:
 Variable costs:

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 Total revenue:
 Financial Statement:
Having explained all these points let’s put a focus on financial statements of the company:

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According to the company’s performance in the sales and target customers our company is
selling 10 pcs in a week which comes to around 120pcs of solar panels in a quarter. Initially the
company is observed fund deficient and later on it starts recovering eventually.
From Q2 onwards increase in quantity sales is observed. The quantity sales takes place as
mentioned below:
Q1=120 Q2=180
Q3=240 Q4=360
Q5=600 Q6=960
Q7=1320 Q8=1800
All the above mentioned numbers in quarters are unit sales. Every unit is sold at the rate of
€10,100 per unit and sales is calculated at the quoted rate per unit. Which is under the name of
debtors. The business requires large amount of investment which is around €2000000 to start a
business of solar panel efficiently without any obstacle to run it. The above balance sheet and
gains heavy loads of profits.

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It is however estimated that all the customers in Ireland and rest of the EU zone
would very soon switch to the concentrated solar panel model that we (Team F) are inventing
and hopefully boost our sales and revenues. We also are looking forward from our investors to
invest more and more in our company to increase our good will and hold in the market to ensure
best possible sales and services from our end. This would help us develop out business on a
larger scale with higher customer satisfaction and happiness on the faces of our aspiring
customers as well.
Future proof Model of our business
In order to upscale the concentrated solar panels business in the future we have planned to come
up with the Microinverters roofs and an integrated solar panels where in the customer can
customize the tiles as per the colors of the house.

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