ITM KHARGHAR

PGDM TRIMESTER V

ENTREPRENEURSHIP

NOV 09

WHAT IS ENTREPRENEURSHIP?WHAT IS ENTREPRENEURSHIP?

IT IS THE PRACTICE OF STARTING NEW ORGANIZATIONS OR REVITALIZING MATURE ORGANIZATIONS, PARTICULARLY NEW BUSINESSES IN RESPONSE TO IDENTIFIED OPPORTUNITIES.

SOME ASPECTS-----SOME ASPECTS-----

SCALEFUNDING-VENTURE CAPITAL OR ANGEL

FUNDINGSUPPORT FROM BUSINESS INCUBATORS,

SCIENCE PARKS, NGOS AND EDUCATIONAL INSTITUTIONS

RISK AND AMBIGUITY

WHO IS AN ENTREPRENEURWHO IS AN ENTREPRENEUR

AN ENTREPRENEUR IS ONE WHO CREATES NEW BUSINESSES IN THE FACE OF RISK AND UNCERTAINTY FOR THE PURPOSE OF ACHIEVING PROFIT AND GROWTH BY IDENTIFYING SIGNIFICANT OPPORTUNITIES AND ASSEMBLING THE NECESSARY RESOURCES TO CAPITALIZE ON THEM.

THE ENTREPRENEUR IN AN ADVANCED ECONOMY IS AN INDIVIDUAL WHO INTRODUCES SOMETHING NEW IN THE ECONOMY- A METHOD OF PRODUCTION NOT YET TESTED BY EXPERIENCE IN THE BRANCH OF MANUFACTURE CONCERNED, A PRODUCT WITH WHICH CONSUMERS ARE NOT YET FAMILIAR, A NEW SOURCE OF RAW MATERIAL OR OF NEW MARKETS AND THE LIKE

JOSEPH SCHUMPETER

TYPESTYPES

BUSINESS ENTREPRENEURTRADING ENTREPRENEURCORPORATE ENTREPRENEURAGRICULTURAL ENTREPRENEURTECHNICAL ENTREPRENEURPROFESSIONAL ENTREPRENEURINNOVATIVE ENTREPRENEURIMITATIVE ENTREPRENEURS

CHARACTERISTICSCHARACTERISTICS

NEED FOR ACHIEVEMENT-STRONG DESIRE TO BUILD NEED TO WORK INDEPENDENTLY INGENUITY AND RESOURCEFULNESS ABILITY TO EXPLOIT OPPORTUNITIES OPTIMISM IN DECISION MAKING PROCESSES VISION AND DRIVING FORCE PRUDENT RISK TAKING HIGH DEGREE OF MOTIVATION FUTURE ORIENTATION TOLERANCE FOR AMBIGUITY ORGANIZING SKILLS

To morph into an entrepreneur---To morph into an entrepreneur---

MANAGERS MUST BE ABLE TO TRANSLATE THEIR CAREER AMBITIONS INTO SPECIFIC BUSINESS GOALS

MUST UTILIZE PEOPLES MANAGEMENT TO MOTIVATE AND INSPIRE THEIR EMPLOYEES

MUST CAPITALIZE ON THEIR SKILLS TOMANAGE FINANCIAL ASPECTS PERSONALLY

MUST CONVERT AGGRESSION IN THE WORK PLACE INTO A RISK TAKING APPROACH

MUST LEVERAGE THEIR FUNCTIONAL EXPERTISE IN CHOOSING THEIR LINE OF BUSINESS

MUST DEVELOP LEADERSHIP QUALITIES ON THE JOB BEFORE VENTURING OUT ON THEIR OWN.

BENEFITSBENEFITS

OPPORTUNITY TO CREATE OWN DESTINY

OPPORTUNITY TO MAKE A DIFFERENCE

OPPORTUNITY TO REACH YOUR OWN POTENTIAL

ENORMOUS PERSONAL AND FINANCIAL GAINS

OPPORTUNITY TO DO WHAT YOU ENJOY.

DRAWBACKSDRAWBACKSUNCERTAINTY OF INCOMERISK OF LOSING ENTIRE

INVESTMENTLONG HOURS OF HARD WORKLOWER QUALITY OF LIFEDISCOURAGEMENTCOMPLETE RESPONSIBILITY

41-50 HRS-28%

30-40 HRS-24%

LESS THAN 30 HRS-11%

MORE THAN 60 HRS-17%

51-60 HRS-20%

NO OF HRS PER WEEK

TOP NOTCH WOMEN TOP NOTCH WOMEN ENTREPREPRENEURS(ET-06)ENTREPREPRENEURS(ET-06)

PATRICIA NOERTZ-ARCHER DANIELS MIDLANDS-$36 BN

INDIRA NOOYI-PEPSI CO-$32 BN BRENDA BARNES-SARA LEE-$19.7 BN MARY SAMMONS-RITE AID-$16.8 BN PATRICIA RUSSO- LUCENT TECH- $9.4 BN SUSAN IVEY- REYNOLDS AMERICAN-$8.3 BN ANDREA JUNG-AVON PRODUCTS-$8.1 BN PAULA REYNOLDS-SAFE CO-$6.4 BN MEG WHITMAN-e BAY- $4.6 BN

TOP NOTCH ENTREPRENEURSTOP NOTCH ENTREPRENEURS

BILL GATES-56BNWARREN BUFFET-$52BNCARLOS SLIM-49BNLAXMI MITTAL-32BNLI KA SHENG-23BNANIL AND MUKESH AMBANI-$70 BN plus

PROFILEPROFILE

SELF CONFIDENCE- THE #1 ATTITUDEVALUE THEIR SENSE OF FREEDOMDISCIPLINEHARDWORKINGGOAL ORIENTEDFLEXIBLE, OPPORTUNISTIC, RECOGNIZE

THE POWER OF EMERGENCEEGOLESNESSLOVE MONEY

ASK YOURSELF---ASK YOURSELF---

Do you back yourself to succeed every time

Do you take important decisions or does someone else take them for you?

Do you enjoy the process irrespective of the outcome

How well do you handle small adversitiesDid you ever feel helpless- how well did

you handle the situation at that time?

Keep asking----Keep asking----

Do you know your physical and mental limitations?

Do you make friends with a strangerDo you feel comfortable in talking about

yourselfDo you have a sense of

discipline/systematization in your life?Does the act of buying and selling excite

you

ENTREPRENEURIAL CULTURE

COMPETITIVE EDGE

INCREASED PRODUCTIVITY

IMPROVED QUALITY

INNOVATION

UNDERSTANDING CUSTOMER NEEDS

WORLD CLASS SERVICE

•SOCIETAL CULTURE

•PRODUCTIVITY CULTURE

•TQC

•ORGANIZATIONAL CULTURE

•CORPORATE VALUES

THE SUPPLY OF ENTREPRENEURSHIP IS LIMITED BY THE SCARCITY OF THE REQUISITE PERSONAL QUALITIES AND SECONDLY, BY THE DIFFICULTY OF IDENTIFYING THEM WHEN THEY ARE AVAILABLE----------

TASKS OF AN ENTREPRENEURTASKS OF AN ENTREPRENEUR

EXCHANGE RELATIONSHIP PERCEIVING OPPORTUNITIES GAINING COMMAND OVER SCARCE RESOURCES PURCHASING INPUTS MARKETING OF PRODUCTS IN RESPONSE TO

COMPETITIONPRACTICAL ADMINISTRATION DEALING WITH PUBLIC BUREAUCRACY MGT OF HUMAN RELATIONS MGT OF CUSTOMER AND SUPPLIER RELATIONS

CONTRIBUTION TO THE ECONOMYCONTRIBUTION TO THE ECONOMY

JOB CREATIONECONOMIC GROWTHNEW TECHNOLOGYSERVING SMALL MARKETS

TYPES OF ENTREPRENEURSTYPES OF ENTREPRENEURS

BASED ON TIMING OF VENTURE CREATION EARLY STARTERS EXPERIENCED MATURE CLASSIFICATION BASED ON ENTREPRENEURIAL ACTIVITY NOVICE SERIAL ENTREPRENEUR PORTFOLIO ENTREPRENEUR CLASSIFICATION BASED ON SOCIO-CULTURAL VARIABLES FIRST GENERATION FROM BUSINESS FAMILIES MINORITY WOMEN

MGT CONTROL

FINANCIAL MGT

PRODUCTION MGT

TECHNOLOGY

ACQUIRING AND OVERSEEING ASSEMBLING OF THE FACTORY

UPGRADING PROCESS AND PRODUCT QUALITY

INTRODUCTION OF NEW PRODUCTION TECHNIQUES,PRODUCTS

RICHARD BRANSON SAYS---RICHARD BRANSON SAYS---

When asked the secret of his success, Richard Branson who founded the multinational Virgin Group said ”Knowing what exactly gets me up every morning” he responded” that I am ruthless, that I am not out to win but to beat others to pulp”

STIMULANTSSTIMULANTS

AVAILABILITY OF CAPITALSUPPORTIVE GOVERNMENTAL

PROGRAMMESAVAILABILITY OF REQUIRED TRAINING

AND INPUTSCOLLABORATIVE RELATIONSHIP BETWEEN

BUSINESS AND RESEARCH.CREATION OF AN ENVIRONMENT

CONDUCIVE TO INNOVATION

ENTREPRENEURSHIP ENTREPRENEURSHIP DEVELOPMENTDEVELOPMENT

EDP AS A MEANSTO DEAL WITH A VARIETY OF PROBLEMS IDENTIFICATION OF OPPORTUNITIES THROUGH

ACCESSIBILITY TO INFORMATION STRENGTHENING OF ENTREPRENEURIAL QUALITIES DEVELOPING PEOPLES SKILLS BUSINESS EDUCATION LEGAL ASPECTS PROJECT FORMULATION AND IMPLEMENTATION DEVELOPMENT OF MULTI- SKILLS

TRAINING TOOLS AVAILABLETRAINING TOOLS AVAILABLE

ON THE JOB TRAINING PARTICIPATION IN QUALITY CIRCLES INPUTS FROM SUCCESSFUL ENTREPRENEURS

MODULAR TRAINING MODULES IN FINANCE GROUP TRAINING ON TECHNICAL SUBJECTS GROUP TRAINING ON MANAGERIAL SUBJECTS

INSTITUTIONS IN AID OF INSTITUTIONS IN AID OF ENTREPRENEURSENTREPRENEURS

MDI GURGAONIITS/IIMSNIESBUDSTEPSENTREPRENEURSHIP MOTIVATION CENTREXISSCOMMERCIAL BANKSMCEDNAYE

THE BUSINESS IDEATHE BUSINESS IDEA

ESTABLISHING YOURSELF AS A SUCCESSFUL ENTREPRENEUR DEPENDS IN PART UPON CHOOSING A GOOD IDEA.AN IDEA MUST NOT ONLY BE GOOD FOR THE MARKET BUT ALSO GOOD FOR THE PROJECT, GOOD FOR THE ENTREPRENEURS. IT SHOULD BE MANAGEABLE WITHOUT MUCH DEPENDENCE ON OTHERS.

STAGESSTAGES

SELECTION OF THE PRODUCTEVELUATION OF THE PRODUCTLABORATORY DEVELOPMENTPILOT PRODUCTION RUNSEMI- COMMERCIAL PLAN TRIALSCOMMERCIAL STAGE

ADOPTION PROCESSADOPTION PROCESS

AWARENESSINTERESTEVALUATIONTRIALADOPTION

PPDPPD

NEW PRODUCT IDEASIDEA SCREENINGCONCEPT DEVELOPMENT AND TESTINGBUSINESS ANALYSISPRODUCT DEVELOPMENT PROGRAMMETEST MARKETINGCOMMERCIALIZATION

BUSINESS PLANBUSINESS PLAN

A BUSINESS PLAN IS A WRITTEN DOCUMENT PREPARED BY THE ENTREPRENEUR THAT DESCRIBES ALL THE RELEVENT EXTERNAL AND INTERNAL ELEMENTS INVOLVED IN STARTING A NEW VENTURE. IT IS AN INTEGRATON OF FUNCTIONING OF FUNCTIONAL PLANS SUCH AS MANUFACTURING, FINANCE, MARKETING, AND HUMAN RESOURCES.

WHO SHOULD WRITE THE WHO SHOULD WRITE THE PLANPLAN

MAY BE PREPARED BY THE ENTREPRENEUR CONSULTATION REQUIRED INTERNET SKILL ASSESSMENT

SCOPE AND VALUE EMPLOYEES INVESTORS VENTURE CAPITALISTS CUSTOMERS ADVISORS CONSULTANTS

RESOURCES REQD-----------RESOURCES REQD-----------

RESOURCES REQD IN TERMS OF PLANT EQUIPMENT AND MATERIALS

SCHEDULE OF AVAILABLE RESOURCES PREMISES REQUIREMENT AND AVAILABILITY TRANSPORT REQUIREMENTS PERSONNEL REQUIRED INSURANCE REQUIREMENTS GOODWILL BASE

STRUCTURE OF A BUSINESS PLANSTRUCTURE OF A BUSINESS PLAN

THE BUSINESS IDEAo TYPE OF BUSINESS PROPOSED AND SERVICES TO BE OFFEREDo METHOD OF OPERATIONo LOCATION AND OPERATIONAL AREAo OUTLINE OF MARKET AND CUSTOMERSo STATEMENT OF VIABILITYPROPRIETORS OF THE BUSINESSo DETAILS OF KEY PERSONNELo REASONS FOR CHOICE OF THE BUSINESSo APPRAISAL OF AVAILABLE SKILLS AND IDENTIFIED DEVELOPMENT

NEEDS

“A BUSINESS PLAN HELPS YOU TO ESTABLISH WHERE YOU ARE,WHERE YOU INTEND TO GO AND HOW YOU INTEND TO GET THERE”

FINANCIAL PLANSFINANCIAL PLANS

BUDGETARY PLANS AND CASH FLOW FORECASTS EXPLANATION OF THE BASIS FOR PLANNED BUDGETS BREAK EVEN ANALYSIS AND PROFIT FORECASTS VALUE OF AVAILABLE CAPITAL AND RESOURCES FURTHER FINANCE REQUIRED POTENTIAL SOURCES OF FUNDS CHOSEN SOURCES OF FINANCE AND REASONS FOR CHOICE

BUSINESS PLAN IMPORTANT BUSINESS PLAN IMPORTANT BECAUSE-----BECAUSE-----

HELPS DETERMINE THE VIABILITY OF THE VENTURE IN A DESIGNATED MARKET

PROVIDES GUIDANCE TO THE ENTREPRENEUR IN ORGANIZING HIS OR HER PLANNING ACTIVITIES

IT SERVES AS AN IMPORTANT TOOL IN OBTAINING FINANCE USEFUL FOR START UP ENTERPRISES MODEL OF GOOD PRACTICES MONITORING PROGRESS AND ACHIEVEMENTS AGAINST

TARGETS LAID DOWN

MEASUREMENT OF SUCCESSMEASUREMENT OF SUCCESS

CUSTOMER FEEDBACKQUALITY OF GOODS AND SERVICESMEASUREMENT OF GROWTH OF BUSINESS IN

COMPARISON TO PREVIOUS YEARSCOMPARING ACTUAL/PLANNED INCOME AND

EXPENDITUREPROFITMARGINSANALYSIS OF DEBTORS AND CREDITORS,

PAYMENT TERMS ETC TO ENSURE LIQUIDITY.

WHY BUSINESS PLANS FAILWHY BUSINESS PLANS FAIL

GOALS SET BY ENTREPRENEURS UNREASONABLE

GOALS NOT SMARTTOTAL COMMITMENT TO BUSINESS

LACKINGNO EXPERIENCE IN PLANNED BUSINESSNO SWOT ANALYSIS CARRIED OUTNO CUSTOMER NEEDS ESTABLISHED.

IMPORTANCE OF MARKET FOCUSIMPORTANCE OF MARKET FOCUS

KNOWING YOURSELF AND OTHERSPEOPLE SKILLSEFFECTIVE COMMUNICATIONPROBLEM SOLVING SKILLSCREATING CUSTOMERSMARKETING AND PREFFECTIVE SELLING- CRMQUALITY MANAGEMENTMANAGING USP

oIMPORTANCE OF SPOTTING TRENDSoANTICIPATIONoFAST DECISION MAKINGoCONSTANT RE-ASSESSMENToSTAY CLOSE TO THE CUSTOMERoINNOVATE CONSTANTLYoCONCENTRATION ON NARROW TARGETS

LEGAL ISSUESLEGAL ISSUES

INTELLECTUAL PROPERTY- COPYRIGHTS, PATENTS, TRADEMARKS, TRADE SECRETS

PATENTS- DISCLOSURE, PATENT APPLICATION, PATENT INFRINGMANTS

TRADEMARKS COINED MARKSARBITRARY MARKSSUGGESTIVE MARKSDESCRIPTIVE MARKS

PROCESS---PROCESS---

FILLING FORMDRAWING THE MARKFIVE SPECIMENS SHOWING ACTUAL USE

OF THE MARKFEE

TRADEMARKSTRADEMARKS

INITIAL 20 YRS REGN WITH 20 YRS RENEWABLE TERMS PROVIDES NOTICE TO EVERYONE THAT ONE HAS

EXCLUSIVE RIGHTS FOR THE USE OF THE MARK ENTITLEMENT TO SUE IN A COURT OF LAW INCONTESTABLE COMMERCIAL RIGHTS FOR USE OF THE

MARKS PROVIDES A BASIS FOR FILLING TRADEMARK APPLICATIONS

IN FOREIGN COUNTRIES

COPYRIGHTSCOPYRIGHTS

PROTECTION OF ORIGINAL WORK OF AUTHORSHIP

PROTECTION OF MATERIAL ON THE INTERNET

TRADE SECRETSTRADE SECRETS

PROTECTION AGAINST OTHERS REVEALING OR DISCLOSING INFORMATION THAT COULD BE DAMAGING TO THE BUSINESS

OFFICE SECURITYINFO ON NEED TO KNOW BASISSCREENING OF EMPLOYEESFAXING OF SENSITIVE INFO

CONTRACTCONTRACT

LEGALLY BINDING AGREEMENT BETWEEN TWO PARTIES

SPECIFIC ROLE OF PARTIES IN THE TRANSACTION IMPORTANT

VOLUNTARY ACCEPTANCE IMPORTANTTRANSACTION SHOULD BE DESCRIBED IN DETAIL.

GOVT REGULATIONS TO BE GOVT REGULATIONS TO BE COMPLIED WITHCOMPLIED WITH

FACTORIES ACT 1961 INDUSTRIAL DISPUTES ACT 1947 OFFICES, SHOPS AND RAILWAY PREMISES ACT 1956 OSHA FIRE REGULATIONS ENVIRONMENTAL HEALTH ACT CONTROL OF POLLUTION ACT 1974 SALE OF GOODS ACT 1979 CONSUMER PROTECTION ACT 1987 ADVT STANDARDS DATA PROTECTION ACT 1984 MINIMUM WAGES ACT PARTNERSHIP ACT 1896

CONTD-----CONTD-----

BUSINESS NAMES ACT 1985COPYRIGHT, DESIGNS AND PATENT ACT 1988CONSUMER CREDIT ACT 1974INSOLVENCY ACT 1986TRADE UNION ACT 1926(AMENDED 47, 60,62,64

AND 82)

TYPES OF FIRMSTYPES OF FIRMS

PROPRIETORSHIPPARTNERSHIPPVT LTD COMPANYPUBLIC LTD COMPANYCOOP SOCIETY

STGS OF BUSINESS STGS OF BUSINESS DEVELOPMENT FUNDINGDEVELOPMENT FUNDINGEARLY STG FINANCING SEED CAPITAL-SMALL AMOUNTS TO PROVE CONCEPTS,AND

FINANCIAL FEASIBILITY STUDIES START UP- FUNDING TO GET THE OPERATIONS OF THE

COMPANY ACTUALLY STARTED EXPANSION OR DEVELOPMENT FINANCING SECOND STAGE-WORKING CAPITAL FOR INITIAL

GROWTH PHASE THIRD STAGE- MAJOR EXPANSION AND GROWTH BRIDGE FINANCING

FINANCING FOR ACQUISITION AND LBO

FORMS OF ASSISTANCE TO FORMS OF ASSISTANCE TO ENTREPRENEURSENTREPRENEURS

MANAGEMENT CONSULTANCY PROFESIONAL ADVICE AND SERVICES FOR RAISING

RESOURCES FROM THE MARKET TECHNICAL CONSULTANCY ORGANIZATIONS FOR SMALL

AND MEDIUM INDUSTRIES INTERFACE BETWEEN SCIENCE AND TECHNOLOGY AND

THE INDUSTRY ENTREPRENEURSHIP DEVELOPMENT AND RESEARCH FINANCIAL ASSISTANCE IN TERMS OF SOFT LOANS,100%

FINANCE FOR DISABLED ENTREPRENEURS, ASSISTANCE TO EX- SERVICEMEN EQUIPMENT FINANCE AND THE LIKE

ASSISTANCE FROM STATE GOVERNMENTS

FINANCIAL INSTITUTIONS IN AID FINANCIAL INSTITUTIONS IN AID OF ENTREPRENEURSOF ENTREPRENEURS

IDBIIFCIICICINABARDSFCSIDBIIFCI

IFCI GRANTING LOANS ON SUBSCRIBING TO DEBENTURES REPAYABLE

WITHIN A PERIOD NOT EXCEEDING 25 YEARS GUARANTEEING LOANS RAISED BY INDUSTRIAL CONCERNS

WHICH ARE REPAYABLE WITHIN A PERIOD NOT EXCEEDING 25 YRS

GUARANTEEING DEFERRED LOANS DUE FROM ANY INDUSTRIAL CONCERN(IMPORT/PURCHASE OF CAPITAL GOODS)

FINANCING PUBLIC SECTOR PROJECTS SETTING UP OF NEW INDUSTRIAL PROJECTS EXPANSION,DIVERSIFICATION, MODERNIZATION, RENOVATION

IDBIIDBI

MODERNIZATION ASSISTANCE SCHEMES TECHNICAL DEVELOPMENT FUND SCHEME VENTURE CAPITAL FUND SCHEME EQUIPMENT FINANCE SCHEMES FOREIGN CURRENCY ASSISTANCE SCHEMES EQUIPMENT RE-FINANCE SCHEMES SEED CAPITAL SCHEME MODERNIZATION AND REHAB OF SMALL AND MEDIUM

INDUSTRIES

NABARDNABARD

INTEGRATED RURAL DEVELOPMENT PROOTION OF COTTAGE ANDVILLAGE INDUSTRIES AS WELL

AS HANDICRAFTS SHORT- TERM RE-FINANCE ASSISTANCE MEDIUM AND LONG TERM LOANS LINKS WITH RBI

SIDBISIDBI

SUPPORT SERVICESENVIRONMENT MANAGEMENTCOLLABORATION WITH NGOS,

CONSULTANCY AND VOLUNTARY ORGANIZATIONS

ICICIICICI

ASSIST IN CREATION , EXPANSION AND MODERNIZATION OF PRIVATE ENTERPRISE

ENCOURAGING/PROMOTING PARTICIPATION OF PVT CAPITAL

RUPEE AND FOREIGN CURRENCY LOANSSOFT LOANSGUARANTEESCREDIT FACILITIES TO MANUFACTURERS

SIDCSSIDCS

EQUITY PARTICIPATIONFINANCIAL ASSISTANCEDEVELOPING INDUSTRIAL AREASINCENTIVESPROMOTIONAL SERVICES

SCOPE/ENTITIES OF SCOPE/ENTITIES OF MARKETINGMARKETING

GOODS SERVICES EXPERIENCES EVENTS PERSONS PLACES PROPERTIES ORGANIZATIONS INFORMATION IDEAS

CORE MARKETING CONCEPTSCORE MARKETING CONCEPTS

TGT MKT AND SEGMENTATION NEEDS,WANTS AND DEMANDS PRODUCT OFFERING AND BRAND VALUE AND SATISFACTION RELATIONSHIPS AND NETWORKS MARKETING CHANNELS COMPETITION MARKETING ENVIRONMENT IDENTIFICATION OF ANY SPECIAL MARKETING INFLUENCES

IMPLEMENTATION OF IMPLEMENTATION OF PROPOSALSPROPOSALS

CHOSEN MEANS OF OPERATIONS WITH JUSTIFICATION OF CHOICE

RELEVANT LEGISLATION TIME TABLE AND PHASING OF BUSINESS START UP KEY STAGES OF IMPLEMENTATION MONITORING AND CONTROL SYSTEMS CUSTOMER RECORD AND FEEDBACK

MARKETING INVOLVES-----MARKETING INVOLVES-----

GATHERING OF MARKET INTELLIGENCE TARGETING CUSTOMERS

LOCATING AND ATTRACTING NEW CUSTOMERSIDENTIFYING CUSTOMER PREFERENCESREVIEWING DFECTION PERCENTAGERETAIN CUSTOMER LOYALTY

MANAGING FOR PROFITABILITY INTEGRATION OF MARKETING FUNCTIONS

MARKETING CHANNELSMARKETING CHANNELS

PRODUCER--- CONSUMERPRODUCER-----WHOLESALER----CONSUMERPRODUCER----WHOLESALER---RETAILER---

CONSUMERPRODUCER---AGENT---WHOLESALER----

RETAILER---CONSUMERPRODUCER---WHOLESALER---CONSUMER.

FUNCTIONS OF MARKETING FUNCTIONS OF MARKETING CHANNELSCHANNELS ROUTE TO LINK PRODUCERS AND USERS STORAGE OF GOODS INTRODUCTION OF NEW PRODUCTS/MERCHANDISING

EASIER GIVE ADVICE REGARDING PRICE ACCEPTABLE TO

PRODUCER AND CONSUMER BULK BREAKING MARKET INFORMATION TO BUYERS BRING PRODUCT NEARER TO CONSUMER.

OPPORTUNITIES AND THREATS-TGT MKTOPPORTUNITIES AND THREATS-TGT MKT

MARKET SEGMENTATION ASSESS STRENGTHS AND WEAKNESSES PRODUCT OR SERVICE-

BRANDNAME,PRICE,WARRANTY,IMAGE,SERVICE,DELIVERY TIME

CUSTOMER SERVICE-FOLLOW UP,EMPLOYEE REWARDS,REGULAR CONTACT WITH THE CUSTOMERS

COORDINATION OF THE PLANNING PROCESS RESPONSIBILITY FOR IMPLEMENTATION BUDGETING

METHODS OF MARKETINGMETHODS OF MARKETING

IMPORTANCE OF CONVERTING PURCHASING POWER INTO EFFECTIVE DEMAND FOR A PRODUCT /SERVICE

PRODUCT SHOULD BE DIFFERENT/SPECIFIC-WHETHER REAL OR IMAGINARY

EMPHASIS ON WHAT THE CUSTOMER/BORROWER WANTS EMPHASIS ON SOCIAL GOOD EMPHASIS ON MARKETING FUNCTIONS LIKE MKT

INFORMATION AND RESEARCH,PRODUCT PLANNING, WAREHOUSING,SALES AND DISTRIBUTION.

MARKETING RESEARCHMARKETING RESEARCH

PLAN MEASURE AND EVALUATE MARKETING EFFORT OFFERS RT PRODUCT,RT PACKAGE,RT DEMAND ETC COVERS MKT AND SALES RESEARCH,PRODUCT

RESEARCH,ADVT AND PROMOTION,SALES METHODS AND POLICIES,DISTRIBUTION RESEARCH

FOCUS ON BUSINESS DECISIONS IDENTIFICATION OF VIABLE OPPORTUNITIES TESTING FEASIBILITY OF A PARTICULAR COURSE OF

ACTION

MKT STRAT-

MARKETING MIX FOCUSED ON PRODUCT MKT

PRICING MIX

PRICING STRAT,POLICY,BASIC PRICE,TERMS OF CREDIT,DISCOUNTS

PRODN MIX-BRAND,STYLE,COLOR,DESIGN,PRODUCT LINE,PACKAGE,WARRANTY,SERVICE

PROMOTION MIX-PERSONAL SELLING,ADVT,PUBLICITY,SALES PROMOTION

DISTR CHANNELS

PHYSICAL DISTR

PLACE MIX

ELEMENTS OF MARKETING MIX

INCENTIVESINCENTIVES

OBJECTIVESENTREPRENEURSHIP DEVELOPMENTREGIONAL DEVELOPMENTPROVIDE COMPETITIVE STRENGTHMOTIVATE PEOPLE FOR NEW VENTURESGIVE STIMULUS FOR INDUSTRY AND

BUSINESS

TYPESTYPES

TECHNICALFINANCIALSUBSIDIESTAXADVANTAGESUNIFORM DEVELOPMENT IN ALL REGIONSREDUCE OVERALL PROBLEMS OF SMALL SCALE

ENTREPRENEURS

PROBLEMSPROBLEMS

CORRUPTIONMISUSEETHICSFINANCIAL DRAIN FOR THE EXCHEQUER

THE ORGANIZATIONAL THE ORGANIZATIONAL PLANPLAN

IMPORTANCE OF WELL DEFINED ROLES EFFECTIVE INTERVIEWING AND HIRING PROCEDURES IDENTIFICATION OF MAJOR ACTIVITIES REQUIRED TO

OPERATE ORGANIZATION EFFECTIVELY ORGANIZATIONAL STRUCTURE PLANNING,MEASUREMENT AND EVALUATION SCHEMES REWARDS AND INCENTIVES SELECTION CRITERIA

BUILDING A SUCCESSFUL BUILDING A SUCCESSFUL ORGANIZATIONORGANIZATION

JOB ANALYSIS,DESCRIPTIONS AND SPECIFICATIONS

POSITIONS NECESSARY TO ACCOMPLISH TASKS/JOBS TO BE PERFORMED

DECISION FOR TRAINING/EVALUATION OF EMPLOYEES

SEARCH FOR TALENT

CRITERIA FOR SELECTING CRITERIA FOR SELECTING PROJECTSPROJECTS

INVESTMENT SIZELOCATIONTECHNOLOGYEQUIPMENTMARKETINGDEMAND AND SUPPLY OF PRODUCTSMOTIVATION, ATTITUDE AND SKILLS OF

ENTREPRENEUR

DIMENSIONS OF A PROJECTDIMENSIONS OF A PROJECT

CATALYTIC AGENTS FOR ECONOMIC DEVELOPMENT LONG TERM COSEQUENCES PROVIDE FRAMEWORK FOR FUTUREACTIVITIES OF

ENTERPRISES SUBSTANTIAL FINANCIAL OUTLAYS INITIATE DEVELOPMENT OF BASIC INFRASTRUCTURE AND

ENVIRONMENT CANNOT BE EASILY REVERSED BRINGS NECESSARY CHANGES IN SOCIETY IN COURSE OF

TIME.

SEQUENTIAL STGS OF SEQUENTIAL STGS OF PROJECT FORMULATIONPROJECT FORMULATION

PROJECT---FEASIBILITY---TECHNOECONOMIC STUDY---DESIGN---NETWORK---- INPUT---FINANCE---SOCIAL---COST BENEFIT-----PRE-INVESTMENT

SCOPE OFPROJECT APPRAISALSCOPE OFPROJECT APPRAISAL

CHOICE OF APPROPRIATE TECHNOLOGY TECHNICAL COLLABORATION ARRANGEMENTS IF ANY SIZE AND SCALE OF OPERATIONS LOCATIONAL ASPECTS-AVAILABILITY OF INFRA SELECTION OF PLANT, MACHINERY AND EQUIPMENT PLANT LAYOUT AND FACTORY BUILDINGS TECHNICAL ENGG SERVICE PROJECT DESIGN AND NETWORK ANALYSIS MANAGEMENT OF BY-PRODUCTS PROJECT COST ESTIMATES AND PROFITABILITY PROJECTIONS

CONTENTS OF A PROJECT CONTENTS OF A PROJECT REPORTREPORT

OBJECTIVE AND SCOPE OF THE REPORT PRODUCT CHARACTERISTICS MARKET POSITION AND TRENDS RAW MATERIALS MANUFACTURE PLANT AND MACHINERY LAND AND BUILDING FINANCIAL IMPLICATIONS MARKETING CHANNELS PERSONNEL

MANAGING A NEW VENTUREMANAGING A NEW VENTURE

RECORD KEEPING MONITORINGINCOMING/OUTGOING REVENUE TRACKING CUSTOMERS RECRUITING AND HIRING EMPLOYEES MOTIVATION AND DIVERSITY MANAGEMENT COMMUNICATION WITH MANAGERS AND EMPLOYEES MANAGING CASH FLOW-BUDGETED VS ACTUAL MANAGING SHORT TERM VS LONG TERM DEBT CREATING AWARENESS OF NEW VENTURES TIME MANAGEMENT NEGOTIATION SKILLS

FRANCHISINGFRANCHISING

IT IS A FORM OF DISTRIBUTION IN WHICH SEMI-INDEPENDENT BUSINESS OWNERS(FRANCHISEES) PAY FEES TO A PARENT COMPANY (FRANCHISOR) IN RETURN FOR THE RIGHT TO BECOME IDENTIFIED WITH ITS TRADEMARK, TO SELL ITS PRODUCTS OR SERVICES, AND OFTEN USE ITS BUSINESS FORMAT AND SYSTEM

TYPESTYPES

PRODUCT DISTRIBUTION FRANCHISINGPURE FRANCHISING

BENEFITSBENEFITS

SMALL BUSINESS RELATIVELY QUICKLY BENEFIT FROM BUSINESS EXPERIENCE MANAGEMENT TRAINING AND SUPPORT BRAND NAME APPEAL STANDARDIZATION ADVT SUPPORT PROVEN PRODUCTS CENTRALIZED BUYING POWER TERRITORIAL PROTECTION GREATER CHANCES OF SUCCESS

DRAWBACKSDRAWBACKS

FRANCHISE FEE AND PROFIT SHARINGSTRICT ADHERENCE TO STANDARDIZED

OPERATIONSRESTRICTIONS IN PURCHASINGLESS FREEDOMNO GUARANTEESMAX INVOLVEMENTORAL PROMISESGET RICH QUICK SCHEMES

BUYING A FRANCHISEBUYING A FRANCHISE

EVALUATE YOURSELFRESEARCH YOUR MARKETCONSIDER FRANCHISE OPTIONSTALK TO EXISTING FRANCHISEESASK THE FRANCHISOR SOME TOUGH QUESTIONSLOCATIONPIGGY BACKINGDEDICATED MGT TEAMBE THOROUGH

FRANCHISE DISCLOSURESFRANCHISE DISCLOSURES

INFORMATION ABOUT EXPERIENCE, FRANCHISES BEING SOLD ETC

BUSINESS EXPERIENCELAWSUITS IF ANYCONTINUING PAYMENTS AFTER START UPSQUALITY RESTRICTIONSFRANCHISEE OBLIGATIONSTERRITORIAL PROTECTIONTRADEMARKS TRADE NAMES ETCFINANCIAL STATEMENTS

AREAS OF FRANCHISINGAREAS OF FRANCHISING

APPARELS BEAUTY SALONS COURIER SERVICES CONSULTANCY CYBER CAFES DESIGNER WEAR EDUCATION ENTERTAINMENT FOOD AND BEVERAGES GIFTS AND GREETINGS HOME PRODUCTS HOTELS AND MOTELS EMIGRATION RETAIL SCHOOLS

FRANCHISOR

KNOWHOW ETC

APPTS

MASTER FRANCHISOR

APPTS

FRANCHISEE

PAYS ROYALTY

PAYS

ROYALTY

CONTRIBUTION, INVESTMENT, SITE, INFRA

BASICS OF INTERNATIONAL BASICS OF INTERNATIONAL FRANCHISINGFRANCHISING

KNOW YOUR PARTNERSKNOW YOUR WEAKNESSESKNOW YOUR MARKETKNOW YOUR VALUEKNOW YOUR TRADEMARKKNOW YOUR PRODUCT AND SERVICEKNOW YOUR RESOURCES