Scenario: T-shirt Transformers

You are an aspiring entrepreneur looking to create a new business. So far, you have written the following business idea:

Many people have T-shirts in their closet which are in good condition, but have messages or designs that are now boring. T-shirt Transformers is a service whereby people can bring in these T-shirts and we can re-dye the shirts and return their old shirts with a new design later that day. Customers can choose from a wide variety of designs or provide their own. We will equip a van with a printing machine and the business model will be to sell via temporary stalls at markets (such as O-Week at Macquarie) and transfer the shirts to and from the van, which will be in a nearby carpark. Since there are no materials required apart from ink, the transformed t-shirts can be provided at much lower cost than a store-bought shirt, and designs can be changed immediately so that they are always on trend. It is anticipated that the shirts will be sold for $25. To launch the business, a competition will be run on Facebook whereby people send in photos of themselves in their new T-shirts and every month a prize will be awarded for the best shirt. To launch the business, the major investments will be the van, a new printing machine and a portable power generator.

Required:

Question 1: What is a megatrend and why are megatrends important to setting business strategy? Provide an example of one megatrend and explain how it might affect the business idea.

Question 2: Define the Four Ps and how each applies in this case. Also, briefly describe four of the five possible organisational structures. What would be most appropriate in this case and why?

Question 3: You want to pitch your idea to a wealthy relative. What are two important steps to take beforehand in order to prepare a compelling pitch?

Question 4: Your relative agrees to fund your venture, but you are wondering if you should seek venture capital funding as well as (or instead of) your relative. Briefly explain the research findings of Dutta and Folta (2016) and how this might influence your decision.

Please label your answer to each question clearly, e.g., "Question 1 answer" etc.