Section A: Identifying a Practical Problem

Introduction
Maturing is a typical development process, starting from origination onwards. Be that as
it may, after youth, the pinnacle physiological working happens in the twenties while
crest mental development happens in the seniority. During the lifetime, different changes
identified with maturing happens which modifies the individual's capacity to work in his
condition. An individual doesn't just get old, as this is a long procedure that relies upon
heredity, diet, mental frame of mind, condition and way of life and so on. For biomedical
reason maturing is ordered dependent on physical and physiological limit: youthful old
(60-73), moderately aged older (74 - 84 years) and late old (85 + years) living with three
unmistakable ages. The populace is maturing. The gathering of individuals more than 65
is expanding by enormous numbers every year. Because of quick development in
maturing populace, the senior market is growing. The senior park business has
extraordinary capability of development and improvement in Nepalese senior market.
Enormous number of Elderly individuals are keen on social affair and recreational
exercises, yoga and contemplation, refreshment which is accessible at senior park.
Ageing is a natural process that is unavoidable. Population ageing is common since it is
creating humanitarian, social and economic problems in many countries of the world
including Nepal. Nepalese society is in modernization stage. There is modification in the
cultural norms and traditional family support systems for elderly in Nepal which have
placed significant strain in caring elderly people. In Nepal, there were 1.5 million in 2001
and 2.1 million in 2011, elderly inhabitants, which constitute 6.5 percent and 8.1 % of the
total population in the country. During the years 1991-2001, the annual elderly
population growth rate was 3.39 percent, higher than the annual population growth rate of
2.3 percent. Growing numbers of elderly people are suffering problems in different
aspect. The government of Nepal has formulated a National policy, act and regulations on
ageing and the problems of elderly; however, this has not been operationalized because of
limited resources. In this background of problems that elderly people are facing and
government slow initiatives, this paper is illustrated with the objective to explore the
different dimensions of ageing and health and health related services for aging people in
Nepal using different information for the purpose of further concrete steps in the benefits
for elders.
(Shrestha, 2012)

Problem Statement
The elderly typically no longer holds jobs, finances can be a challenge. Due to cultural
misconceptions, older people can be targets of ridicule. Urbanization and modernization
are another big problem for elderly to cope of with. The biggest issue is that the urban
elderly live their life in loneliness. In urban areas, many family structure is nuclear
family. Children are always busy in technology and gadgets and their friends. Parents are
busy in their job. The only problem is for elderly because they have no one to talk, no one
to share their feelings and emotion and they don’t have an economic activity to be
engaged in. Due to this urban elderly people are facing psychological and mental problem
such as depression, trauma, and stress.

Environment Analysis
The bargaining power of customers, and the threat of substitution are the most significant
external forces determined in this Porter’s Five Forces analysis. Nonetheless, the
bargaining power of suppliers and the threat of new entry are strategic management
issues in the global business environment. The relevant external factors and intensities of
the five forces are determined in this Porter’s Five Forces analysis as follows:
Threat of New Entrants or New Entry: High capital cost is an external factor that
weakens the intensity of this force. For example, new firms need high capitalization to
succeed in competing against established firms. In relation, the high cost of brand
development is an entry barrier.
Threat of Substitutes or Substitution (Moderate Force): Substitution imposes pressure
on firms in terms of pricing and revenues, market share, and other relevant factors. Senior
park will be on constant pressure from potential substitutes. For example, the industry
environment offers other entertainment activities that customers could choose instead of
the company’s products.
Bargaining Power of Suppliers (Weak Force): Suppliers’ influence on firms and their
external business environment is the focus in this component of Porter’s Five Forces
analysis framework. For example, suppliers’ stability determines the stability of materials
available needed for park. The company needs to address suppliers’ influence in the
industry environment, to maintain an effective supply chain and consistent operations.
Bargaining Power of Customers (Strong Force): Low switching costs make it easy for
customers to switch or transfer from one provider to another. In Michael Porter’s Five
Forces Analysis framework, this external factor strengthens the bargaining power of
customers in the company’s industry environment. pricing is a factor in the company’s
management processes. Also, in this external analysis, the moderate ability to substitute
has a correspondingly moderate contribution to the intensity of customers’ power in the
business environment.
Competitive Rivalry or Competition (Strong Force): The presence of many firms in
the market is an external factor that directly translates to strong competition. This Five
Forces analysis also stresses firms’ aggressiveness as an external factor that strengthens
the intensity of competition in the industry. For example, aggressive companies that
produce high-quality animated films aggressively compete against our business.

Idea Description
Adapt: Make it convenient for all type of old age people (wheel chaired, Handicapped)
Modify: Provide opportunities for both independent and guided exercise including fun
and entertainment.
Substitute: Provide the facility of food(café), entertainment (theater and music), exercise,
other recreation activities as per demand.
Magnify/Maximise: Rearrange the size of park
Minimise / Eliminate: Reduce price of tickets to lowest.
Rearrange: Rearrange the size of park.
Key Partners Analysis

Key partners are the network of suppliers and partner that makes the business model
work. Companies make partnerships to optimize their business. A business partnership is
when two commercial entities form an alliance, which may either be a really loose
relationship where both entities retain their independence and are at liberty to form more
partnerships or an exclusive contract which limits the two companies to only that one
relationship.

The following factors are very important to keep in mind when forming partnerships:

Right Partnership Agreements: Whether your partnership is with a business or an

individual, it is important for all the relevant parties to have clear partnership agreements
drafted along with legal counsel.

Defining Expectations: Many times, new businesses fail to establish their expectations
from the outset leading to much confusion and conflict later. An entrepreneur needs to
ensure that he has shared his expectations openly with his partner and vice versa from the
beginning.

Impact on your clients: When forming a partnership, it is important to evaluate your

value proposition and your key resources and make sure your partner is filling any gaps
in either. This can only be done by also evaluating how the partnership will translate to
the customer.

Win-Win situation: For a partnership to be healthy and sustainable, there need to be

visible gains on both ends.

Selecting partnerships: Some partnerships may seem lucrative in theory but fail to get
off the ground practically. In addition, changes in the business context may also make
some business partnerships irrelevant. In such cases, it is important to end these
partnerships quickly to avoid further wastage of resources.
This building block refers to the network of suppliers and partners that make the business
model effective. The reasons for a company opting for a partnership are myriad, but
healthy partnerships are instrumental in making a business success or a failure. A
company can optimize its resource utilization, create new resource streams or mitigate
risks behind major business decisions by taking on a partner before starting a new course
of action. It is important to note here that your organization maybe partnering with a
number of organizations for various reasons, but not all their relationships will be key to
your business.

(Anastasia, 2015)

Value Analysis

It is a disciplined approach which ensures the necessary functions for the minimum cost
without diminishing quality, reliability, performance and appearance. This approach is
needed for improving value of product and service that is provided to old aged people by
understanding their associated cost. For this, standard material can be used to minimize
the cost and increase the profit without affecting the quality of the service. This helps to
increase the demand and automatically helps to increase sales revenue. It is newly service
with innovation which creates a value by satisfying the needs of the users.

Value chain analysis gives us a framework of activities those inside and outside a firm,
and makes the competitive strength of the firm combine together. So, it assesses the value
of each activity which increases the products and services to a firm. The ability to
perform particular activities and to manage the linkages between these activities is a
source of competitive advantage. Value chain analysis is a way of assessing competitive
advantage by determining the strategic advantages and disadvantages of the full range of
activities that shape the final offering to the end user. The goal of a firm is to maximize
value creation and at the same time to reduce costs by minimizing. The costs and value
drivers have been determined by every value activity.

The value chain analysis has opened a road for the management with a powerful analysis
tool of the strategic planning (Xue, 2005).
Senior park has used Porter’s value chain analysis. The value chain activities are divided
into two sections i.e. primary and supporting activities. According to Porter, the primary
activities are:

Inbound Logistics:

Activities, costs, and assets associated with purchasing fuel, energy, raw materials, parts,
and components, merchandise, and consumable items from vendors; receiving, storing,
and disseminating inputs from suppliers; inspection; and inventory management falls
under inbound logistics.

Operations:

Operations includes activities, costs, and assets associated with converting inputs into
final product form (production, assembly, packaging, equipment maintenance, facilities,
operations, quality assurance, environmental protection).

Outbound Logistics:

Outbound logistics is the activities, costs, and assets dealing with physically distributing
the product to buyers (finished-goods warehousing, order processing, order picking and
packing, shipping, delivery vehicle operations, establishing and maintaining a network of
dealers and distributors).

Marketing and Sales:

Market and sales is associated with activities, costs, and assets related to sales force
efforts, advertising and promotion, market research and planning, and dealer/distributor
support.

Service:

Service is activities, costs, and assets associated with providing assistance to buyers, such
as installation, spare parts delivery, maintenance and repair, technical assistance, buyer
inquiries, and complaints.
The supporting activities of value chain are:

Firm Infrastructure:

Firm Infrastructure serves the company's needs and ties its various parts together, it
consists of functions or departments such as accounting, legal, finance, planning, public
affairs, government relations, quality assurance and general management.

Human Resource Management:

Human Resource Management consists of all activities involved in recruiting, hiring,

training, developing, compensating and (if necessary) dismissing or laying off personnel.

Technology:

Technology pertains to the equipment, hardware, software, procedures and technical

knowledge brought to bear in the firm's transformation of inputs into outputs.

Procurement:

Procurement is the acquisition of inputs, or resources, for the firm.

Disaggregating a company’s operations into primary and secondary activities exposes the
major elements of the company’s cost structure. Each activity in the value chain gives
rise to costs and ties up assets; assigning the company’s operating costs and assets to each
individual activity in the chain provides cost estimates and capital requirements. The
combined costs of all the various activities in a company’s value chain define the
company’s internal cost structure (Thompson, Gamble and Strickland, 2005).

(KIRLI, n.d.)
Section B: Idea Implementation

Marketing Strategy and Issues of Adoption

Generally, a business must develop a pricing strategy for a product after performing a
marketing analysis. Product distribution, positioning and promotional decisions are made
and demand is estimated. A pricing strategy is formulated taking into consideration
factors of cost, competition and profit objectives. Possible pricing strategies include
discount pricing strategy. With this strategy, it is important to decrease costs and stay
competitive. Usually senior citizens are dependent population and doesn’t have specific
source of income. So, discounting price strategy is suitable for senior park marketing.
(Meline, 2017). While many customers make decisions on price alone, other customers
may choose competitor products because of perceived quality. Low prices may drive
sales for a limited time, but do not build customer loyalty. Competitors can simply the
prices, or beat them. When prices have been driven down to absolute low prices, it is
difficult to raise prices again.

Cost Consideration
The various cost that should considered while establishing senior park are as follows:
1. Land acquisition, including assembly, holding and improvement
2. Planning and feasibility studies
3. Architectural and engineering design
4. Construction, including materials, equipment and labor.
5. Field supervision of construction
6. Construction financing
7. Insurance and taxes during construction
8. Owner's general office overhead
9. Equipment and furnishings not included in construction
10. Inspection and testin
Analysis of the Weaknesses of the Proposed Idea and Solutions
The weakness of limited innovation is associated with senior business strategies. The
company does innovate through continuous product improvement. However, rapid
innovation involving advanced technologies is limited in the company’s operations.
Lower focus on quality and uniqueness of product features, with limited emphasis on
rapid technological innovation. Limited age group market and limited diversification is
another weakness. The recommendations on senior parks are to be focused on improving
business competitiveness and long-term success in the international market. Changes in
the company’s management and strategies must focus on using its strengths as internal
strategic factors for ensuring growth despite the company’s weaknesses.
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https://dergipark.org.tr/download/article-file/257369

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