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With the ongoing issue of the lack lustre playgrounds around the UK, Pentagon play has taken on the responsibility of changing this since 1998. They are a part of the process of inspiring the young children to learn through play.

Their main focus to tackle the problem at hand is to create innovative and inspiring playground for young children in schools, while taking into consideration the clients budgets and potential needs (pentagon play, n.d.). Pentagon play offer the whole package making sure all their clients needs are considered and implemented. They start with consultations with each client including a visit to the school in order to gain a better understanding of the area which they are working with. This then follows through with the product development while working with teachers, EYFS leaders and SENCOs to gain the most valuable information regarding the children and their development through play as well as keeping the setting in mind  (pentagon play, n.d.) . Finally Pentagon play then goes through with the construction and installation of the playgrounds.

Pentagon play considers all aspects of the process, from the design to the sourcing of materials and also the construction itself . Due to the whole process being done in house within the company it reduces any chance of stress for the client as they do not have to worry about any factors or speaking with any third party companies. It ensures that they are given a stress free process and finish with the best possible product for their schools.

Pentagon Play. (n.d.). About Us. [online] Available at: https://www.pentagonplay.co.uk/about-us [Accessed 20 Mar. 2021].

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Within the Schools around the UK there is a large lack of creativity and fun elements within school playgrounds. The idea of primary schools was discovered in 1870 and developed in the 1940s, as a result of this most of the primary schools scattered around the united kingdom were built a very long time ago and adopt a very old style design. Most of the primary schools have playgrounds with no features other than white “football pitch” lines painted along the floor. This style and design of playgrounds tend to be very monotone and have a more sterile environment. The minimal design of playground with no extra facilities disregard the physical, social and intellectual experiences which a child may have. It reduces the chance of children being able to gain confidence and learn to enjoy exercise.

The design style limits the amount of “fun” the children may have. The lack of equipment within the playgrounds also hinders the amount of movement the children may have on their break time. Children who have no interest in sport do not have the opportunity to ensure that they have the required amount of exercise due to the lack of equipment and resources within the playground. There is an understanding when these “monotonical” styles were designed, to increase simplicity for the children and to avoid any potential dangers and injuries, however the styles do not consider the child’s imaginative play in mind, which then can possibly tamper a  child’s development. `

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Revenue and Cost Streams - Pentagon Play Limited

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Revenue and Cost Streams - Pentagon Play Limited

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As we know, for the money to be raised, firstly it needs to be spent. Cost streams at Pentagon Play are value driven as they cannot be reduced due to automation or outsourcing (Mcgill, 2021) That is the main drivers are employees’ salaries and raw material cost. Firstly, the cost can be split in Fixed cost and Variable cost.

Fixed cost includes employee salaries which is expected to be significantly high due to the creativity talent and expertise of people. Also, warehouse and office rents and utilities are cost that occur regardless of the operations volume.

Variable cost includes cost of material and equipment, delivery, and installation cost. These cost increase and decrease with the level of sales and operations.

Also, we need to include administration cost of running the business, sales and marketing cost to promote the business, advertising cost to increase awareness.

If we take the above example of Nursery Pack, as the selling price is £2,700, the expected total cost should be no more than that in order to break-even and not make loss. If we expect a profit margin of 30%, then the cost should be no more than £1,890.

References
Macgill, A. (2021) The Business Model Canvas [online] Available from https://www.ashtonmcgill.com/business-model-canvas-series-introducing-revenue-streams-cost-structure/ [Accessed 6 April 2021]

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Scarborough, N. and Cornwall, J., 2015, Entrepreneurship and effective small business management, Pearson Education.

PentagonPlay. (n.d) About us. [online] Available at: https://www.pentagonplay.co.uk/the-process [Accessed on 26/03/21].

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The unfair advantage of Pentagon Play can be the fact that they turn the long process of building a playground for a busy school into a quick and easy process for consumers as this cannot be copied or bought by competitors (Scarborough and Cornwall, 2015). The convenience offered from the beginning when an expert consultant will visit the school for free, passing on any ideas and preferences of the school to the design team (PentagonPlay, n.d). After this, the designs create the playground ideas with the project prices, and after the school selects their favourite, craftsmen start building and installation happens seamlessly, a process which is made fun even for the children as they get to learn and participate in what happens on site. There are multiple channels that schools can communicate through, it can be via email directly with the consultant, through their website chat option, or through call everything can be arranged (PentagonPlay, n.d). Pentagon Play’s multiple memberships in health and safety community groups are also a way to facilitate the trust process and relationship building between them and the consumers, it shows that their company has a reputation of a safe and reliable playground constructor (PentagonPlay, n.d). To further enforce the unfair advantage of Pentagon Play’s practical and convenient process offered to customers, they have over 31 pages worth of testimonials listed on their website, followed by a variety of pictures of bespoke and standard products that specific schools chose (PentagonPlay, n.d). To finalise this unfair advantage, Pentagon Play offers a maintenance package that covers any damage that may happen to the final project regardless of how long it has been since they built the playground. This all makes it harder for competitors in the long-run as Pentagon Play builds on their experience and further facilitates the buying process (PentagonPlay, n.d).

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A USP is a product feature that makes a company stand out from competitors (Scarborough and Cornwall, 2015). Pentagon Play’s Unique Selling point can be considered the outstanding Product Design team. The Product Design team does not only take into consideration all the wants and needs of the customer, but they also offer various products that take into consideration how children can learn through the innovative playground designs. The Consultation team gathers all the necessary information needed, and it is the Product Design group who formulates the final look, they can be considered the UK’s n.1 playground specialists because of their highly qualified owners, who thoroughly understand about manufacturing engineering, and the technical director who is an architect who used to build buildings across the UK (PentagonPlay, n.d). Also, their senior visualiser Chris Woodward is a specialist in design in the play industry and guarantees that all designers already have designer qualifications, or are in the process of getting it. The company is based on technical knowledge that fuels innovation, and this happens through highly qualified individuals that create the bespoke projects that encourage learning in primary schools (PentagonPlay, n.d). It can be argued that due to this Product Design team’s qualification and dedication towards the bespoke playgrounds, the end product incentives learning at school, and leads to customer satisfaction (PentagonPlay, n.d). Pentagon Play specifically assigns £1000 to each employee in the company that goes directly towards training, making them always acquire new ideas and skills that can be applied in the company. This USP is further enforced by Pentagon Play’s 20+ years experience and multiple memberships in health and safety organisations such as The Play Inspector, allowing schools to have a preference in Pentagon Play over competitors (PentagonPlay, n.d).

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This part of the canvas model focuses on how the business makes money. That is the revenue streams focuses on how the income is generated. Pentagon Play works on project base where the playground is designed, manufactured, and installed in the school or nursery setting. That is income is generated from asset sale. In order to increase its revenue streams, the company can work together with the Local Authorities directly and have a portfolio of schools rather than individual ones which will lead to guaranteed income.

Also, Pentagon Play has recently created its online shop where ready made equipment is on sale. This has diversified its customers from being schools and nursery to anyone who would like to improve their free space, garden etc.

The below items are on sale in the online shop and their price varies between £2,700 and £4,200. Therefore, the revenue from a larger project can cost tens of thousands of pounds. As the projects are tailor made, serving specific needs and good causes, the profit margin should be relatively high as it should be based on idea cost rather than material cost only. Also, the playground installation cannot be repeated again for the same customer and same income in the next few years, the revenue from projects should be sufficient to cover the quieter periods and keep the business going.

Although the products installed have 5-10 years of warranty, Pentagon Play can invest on providing cleaning and hygiene (especially after Covid 19) services that can be provided on a regular basis and on a Service Contracts Fees. That is the income will be received monthly for this service.