entrepreneurial management

Entrepreneurial Development

Entrepreneurial Management

Entrepreneurial Development

Market Aspects and Factors

Know what your opponent’s strategies and movement

must be aligned to the dominant culture of your market demography

a favorable economic situation means the consumers have more purchasing power

Companies must always be updated in the latest technology

Competitor’s Marketing Activities

Economic Situation

Development in Technology

Socio-Cultural Factors

new laws and regulations may affect the business’ production

Political Factors political stability may affect businesses especially because it directly connects to the economy

Governmental Laws, Policies & Programs

Global & International Trade As with the growing globalization, situations in other countries may affect local businesses

Business Strategies

Focuses on providing uniqueness in product or service

Competing on Differentiation

Competing on CostFocuses on strategic pricing to match the target market demography

Competing on ResponseFocuses on the timely product development and delivery, as well as reliable and flexible scheduling

▪ Flexible Response

▪ Reliability of Scheduling

▪ Quickness

New Venture Summary & Business Plan

Screening : Choosing your Business

Macro-analysis

▪ Personal Preference

▪ Education/Training

▪ Work Experience

▪ Business Contacts

▪ Family Support

Micro-analysis

▪ Market Demand

▪ Technology

▪ Availability of labor/skills

▪ Availability of raw materials

▪ Financial/Capital Requirement

▪ Profitability

▪ Government Support

S.W.O.T Analysis

What advantages does your organization have ?

What do you do

better than anyone else?

Strengths

What unique resources can you use that others can't?

What do people in your market see as your

strengths?

What factors mean that you

"get the sale"?

What is your organization's Unique Selling Proposition?

Weaknesses

What could you

improve?

What should you

avoid?

What are people in your market likely to see as

weaknesses?

What factors lose you sales?

Opportunities

What good opportunities can you spot?

What interesting trends are you aware of?

• Changes in technology and markets

• Changes in government policy

• Changes in social patterns, population profiles, lifestyle changes

• Local events

ThreatsWhat obstacles do you face?

What are your

competitors doing?

Are quality standards or specifications for your job, products or services

changing?

Is changing technology threatening your position?

Do you have bad debt or cash-flow problems?

New Venture Summary

Parts of a Venture Summary▪ Marketing

▪ Management

▪ Technical/Production

▪ Legal

▪ Financial

Marketing PlanIs there an sufficient demand for the product going to be produced?

Supply & Demand Analysis

Supply – total number of your competitor’s customers

Demand – total population of your target market demography

Unsatisfied Demand– the difference between demand and the supply

Market Share – a percentage from the unsatisfied demand that you are most likely to keep

Competitive PositionAn analysis of the competitors – their products, services, & capabilities

Customer Needs AssessmentSeparated into two aspects : Real Needs and Perceived Needs

Promotional StrategiesProposed mechanisms to attract the market

Management PlanDetermines the appropriate business organization, the people who will be involved throughout the enterprise, and their functions

Forms of Ownership▪ Single Proprietorship

▪ Partnership

▪ Corporation

▪ Cooperation

Organizational Structure & Policies▪ Key Personnel

▪ Man Power Requirements

▪ Company Policies & Procedures

▪ Compensation & Benefits

Technical/Production PlanIdentifies whether the product could be produced at the highest possible quality level with minimum cost

▪ Manufacturing/Service Process

▪ Plant/Store Location

▪ Layout

▪ Factors of Production

▪ Waste Disposal

Manufacturing/Service ProcessDetailed flow chart indicating materials and energy requirements at each step, and the duration.

Plant/Store LocationDetermines whether the location is desirable in terms of distance to source of raw materials, markets, and other factors

Plant/Store LayoutShows the proposed physical structure of the business, and how it affects the daily process

Factors to ProductionMachinery – capacities of major machineries, price of equipment, availability of spare parts and repair service

Raw Materials – described specifically relating to their physical, mechanical and chemical properties

Utilities & Waste Disposal Indicates specific utilities like electricity, fuel, water, supplies and their respective uses, quantity required, availability of sources and costs

Legal & Financial PlanFocuses on the profitability level of the business. It involves a thorough coverage of all the monetary information of the enterprise and other legal requirements.

▪ Income Statements

▪ Balance Sheet

▪ Cash Flow

▪ Permits

a document containing the basic idea underlying a business and related considerations for starting up.

Business Plan

Contents of a Business Plan▪ Cover Page

▪ Executive Summary

▪ General Company Description

▪ Products/Services Plan

▪ Marketing Plan

▪ Management Plan

▪ Operating Plan

▪ Financial Plan

▪ Appendix

Cover Page▪ Company name, address and phone number

▪ Logo, if available

▪ Names, titles, addresses and phone numbers of the owners and key executives

▪ Date on which the plan is issued

▪ Number of the copy (to help keep track of how many copies are outstanding)

▪ Name of preparer

conveys a clear and concise picture of the proposed venture

describing the user benefits of the product or service and the type of market that exists

contains the type of business, firm’s objectives and location

describes the product/service and its merits

Executive Summary

General Company Description

Product/Services Plan

Marketing Plan

contains the supplementary documents

describes the new firm’s facilities, labor, raw materials and processing requirements

Management Plan describes the key players in the organization and their qualification

Operating Plan

Financial Planprovides an account of the new firm’s financial needs and sources of financing and a projection of its revenues, costs and profits.

Appendix