emba apr13 session 2

7/28/2019 eMBA Apr13 Session 2

1/65


2/65

The ProgramSession Topic Curriculum Date

1 Introduction

Welcome the students Explain course and schedule The Contract Students expectation of the course InteractionI the Business Case Study #1 InteractionThe Name Ball Interaction-I the Investor Part 1 Discussion Singapore Incorporated and Entrepreneurship

9th April7.00 pm to 8.15pm

2 Entrepreneurship

Presentation Entrepreneurship Process

Presentation Leadership and Entrepreneurship explained InteractionI the Business Case Study #2 Discussion Doing Business in India and China

9th April9.00 pm to 10.15 pm

3 The Entrepreneur

Interaction Jockey Quiz Presentation Myths about entrepreneurship Presentation The ten mistakes a new entrepreneur make InteractionI the Business Case Study #3 Self Assessment - Are you the entrepreneurial type? Discussion Challenges of an Entrepreneur


4 Business Planning

Presentation Generating ideas and opportunities Presentation Types of Business Plan Presentation Making assumptions and identifying constraints InteractionI the Business Case Study #4 Interaction Briefing on The Coffee Stall Business Discussion Business Entertainment


5Site Visit at DignityKitchen

Understanding of social entrepreneurship Learning the value of business (The Coffee Stall Business)


6


3/65

The ProgramSession Topic Curriculum Date

7 Getting Started in Business

Presentation Understanding and evaluating business risks Presentation Taking Risk Presentation Funding Types and Process Presentation Closing the Deal Interaction - I the Investor Part 2 InteractionI the Business Case Study #5 Discussion - My Business Values

13th April2.00 pm to 3.15pm

8 Doing Business

Presentation Business structures & its incorporation

Presentation Processes and System Presentation Maintaining a business Presentation Growth of a Business InteractionI the Business Case Study #6 Discussion Learning from the $100 Experience


9 Success in Business

PresentationDeath of a business Presentation Why business failed Presentation Element of Success in Business

Discussion Bad Business Practice


10 Assessment I the Business Individual Assessment14th April

10.00 am to 11.15 am

11 Assessment The $100 Experience Business Plan Presentation14th April

12.00 pm to 1.15 pm

12 Conclusion

Course Review Result of your Assessment Review of The Contract



4/65

Session 2Entrepreneurship

Christopher Benjamin Consultancy Services 4

PresentationEntrepreneurship ProcessLeadership and Entrepreneurship explained

InteractionI the Business Case Study #2

DiscussionDoing Business in India and China

Preview & AssignmentBackground ReadingQuestions and Answers


5/65

Introduction to

Entrepreneurship

PresentationChristopher Benjamin Consultancy Services 5


6/65

Entrepreneurship ProcessWhy Do It?

Identify theNeeds

Generating theidea

Research,Evaluate andCommunicate

Document

Implement

Review,modify and

adapt

Build theKNOWLEDGE

andLearn the SKILL

Need a platform

Need an entity tangible or

intangibleNever start with how to write abusiness plan but with an idea

Focus on needs not want,

business last longer

Age, sex, religion, language

are not barrier to success,

the mind is

Moral value is the

conscious of the

entrepreneur



7/65

Competencies

..hopes to develop

these competencies

some but not all.



8/65

Entrepreneurship is about seeingopportunities and bringing about changes

Entrepreneurship is a skill - Can belearned

Difficult to teach Need to practice

Entrepreneurship



9/65

Entrepreneurship is defined as

The process of organising a commercialundertaking

Webster Dictionary

Entrepreneurship



10/65

The entrepreneur shifts economicresources out of an area of lower and into

an area of higher productivity and greateryield.

French economist J. B. Say around 1800

Entrepreneurship



11/65

All new small businesses have many factors in common.But to be entrepreneurial, an enterprise has to have

special characteristics over and above being new andsmall. Indeed, entrepreneurs are a minority among newbusinesses. They create something new, somethingdifferent; they change or transmute values.

Peter Drucker

Entrepreneurship



12/65

It is ident i fy ing anoppor tun i tyand executing on that

opportunity for the purpose ofwealth creation. An

entrepreneursees, evaluates and explo itsopportuni t ies, whereas a manager concentrates on the

effective use of available resources to achieve optimum

results.

- SM Lee Kuan Yew, Feb 2002

Entrepreneurship



13/65

Entrepreneurship is a behavior that includes:

initiative taking

the organizing and harnessing of social and

economic factors for wealth creation

the acceptance of risk or failure

Entrepreneurship



14/65

Why is entrepreneurship important?

Entrepreneurship contributes to job creation and

growth

Entrepreneurship is crucial to competitiveness

Entrepreneurship to unlock personal potential

Entrepreneurship and societal interests

Entrepreneurship



15/65

What does it take to produce more entrepreneurs?

Entry barriers

Risk and reward

Fostering capacity and skills

Making entrepreneurship accessible to all members of society

Entrepreneurship



16/65Christopher Benjamin Consultancy Services 16

How can enterprises be geared to growth?

The regulatory environment

Taxation

Access to skilled labour

Access to finance

Helping firms to exploit knowledge and international opportunities

Intrapreneurship and corporate venturing

Entrepreneurship


17/65Christopher Benjamin Consultancy Services 17

Three pillars for action towards an entrepreneurial

society

Bringing down barriers to business development andgrowth

Balancing the risks and rewards of entrepreneurship

A society that values entrepreneurship

Entrepreneurship

Singapore ?????


18/65

Why should we learn entrepreneurship?


To move to an information societywhere strategic resources are

information, knowledge and

creativity

To find solutions to

problems or needs

To accept andresponse to

changes

To adjust to an

increasingly global,

competitive economy

To find new ways

to solve social

problems

To improve performance

To stimulate new business and

the economy new jobs and

opportunities

To inspire and enhance

opportunities for women, youth

and elderly.

To help the number of

failed businessTo help shift workers from

a manufacturing/industrial

base to a service

oriented industry


19/65

NOT

EVERYONE

IS

ANENTREPRENUER..

Entrepreneurship



20/65

Leadership andEntrepreneurship

PresentationChristopher Benjamin Consultancy Services 20


21/65

Leadership and Entrepreneurship

Setting

Direction

Delivering

the Service

Personal Qualities

Self belief

Self awareness

Self management

Drive for improvement

Personal integrity

Collaborative

working

Broad

scanning

Effective

and strategic

influencingEmpowering

others

Holding to

account

Leading change

through people

Seizing the future

Intellectual

flexibility

Political

astuteness

Drive for results



22/65




23/65

I. Visionary Evangelist

II. Team and Consensus Builder

III.Manager of Execution

Entrepreneurial leaders can fall under these threeleadership styles




24/65



Persuades employees to work toward his/her vision of thefuture.

Creates, sells, and drives the strategy of the organization.

Serves as the spokesperson for the organization anddemonstrates confidence in its potential for success.

Takes charge, pushes for action and instills a sense ofurgency to achieve the organizations goals.



25/65



Very bright get to core issues quickly

Creative and visionary yet realistic and savvy

Inspirational motivators

Open to new ideas will seek others advice before making a decision

Learn from mistakes & failures

Willing to take risks but also like to have a plan

Make firm, clear cut decisions

High level of drive & desire to achieve excellence

Confident but understand their limits

Enthusiastic & passionate love their work & their product

Can sell ideas, influence & negotiate

Make good first impression

Enjoy positions of influence


Example

Steve Job of Apple

Dennis Wee of DWR

Lee Kuan Yew


26/65



Develops teamwork, commitment, alignment and employeemotivation by involving, empowering and creating a positivework environment.

Develops loyalty by investing in building relationships with

others and by showing interest in employees needs, growthand career development.

Is open to their ideas and willing to share power.



27/65



Develop loyalty by showing interest, talking to people & investing in relationships

Sociable, friendly, warm, supportive & approachable

Read people & situations accurately diplomatic, tactful & astute Persuasive know how to influence and win others over to their side

Put group interest ahead of self-interest

Liberal with praise & encouragement

Balance emphasis on people & results

Trusted & credible strong values, high integrity, conscientious Open & forthright no hidden agendas

Teambuilder emphasize cooperation & alignment

Empowering style


ExampleAnita Roddick of BodyShop

Oliver Lum of Hyflux

Manmohan Singh & HuJintao


28/65


III. Manager of Execution

Provides organization, focus and clarity of direction to employees.

Good administrator.

Structured, disciplined, and skilled at setting short term targets andgoals.

Good at setting priorities and meeting commitments. Sets up systems

and processes. Worries about the details.

Monitors results versus plans and provides the rigor and controlnecessary to stay on course and correct for deviations from the plan.

Gets results.



29/65



Model hard work but not workaholic

Succeed through steadiness and determination

Disciplined & focusedclear goals & priorities

Keep it simple

Avoid perfectionism

Keep others informed

Prefer to set a course and stick with it but willing to be flexible

Feel bound to meet commitments


Example

Donald Trump

Sim Wong Hu of Creative

Mahathir Mohamed


30/65





Which are You?



31/65

Case Study #2

Project Nutritient



32/65

Interaction:I the Business

Scenario:

Nutirient, a soy based product is developed mainly for post operation patient where solid foodintake is restricted. It is well certified and an established channel of distribution.

One of founder investor (with 25% holding) discovered that his younger brother (anotherfounder investor with 25% holding) has been manipulating the supply chain and pocketingextra money into his personal account. The elder brother after several failed attempts to

persuade his brother to come clean, decided to sue the brother and unfortunately publicize thecompany predicament.

With the falling sales following the publicity, the younger brother in desperation decided tocollaborate with several other minority shareholders to raise the money to keep the businessgoing.

To raise US$250,000 in exchange for 55%equity or as loan with repayment of X% p.a.

ChristopherBenjaminConsultanc

yServices



33/65

1. The product is soya bean based compound, brand name Nutritient. It is a complete and balancednutritional drink with the necessary minerals and vitamins, packaged in our standard 400 gramssize container or 20gram sachet.

2. The product has been certified in China by the health authority and recommended by the ChinaNutrition Society. There is no direct competition to this product in the local market.

3. The only competition is the oversea equivalent called Ensure, manufactured by Wyeth. In

Singapore, the product has been approved by the Agri-Food & Veterinary Authority of Singapore(AVA)

The Product



34/65

1. The fund requirement is US$250,000 which will be used for working

capital and expansion of the current business only.- Establish new factory to increase production.- Improved product packaging for export market.

2. The fund can be for equity of the business (for 55% stake holding) ora loan to the company at an agreed loan rate and repayment period.

Funding Requirements



35/65


36/65

Discussion

Doing Business in

India and China



37/65

China

http://www.youtube.com/watch?v=2rPnLi6Onpshttp://www.youtube.com/watch?v=2rPnLi6Onps


38/65

China

Anshan

Zibo

Guangzhou



39/65

1980s

Anshan, Liaoning Province

As an Employee



40/65



41/65

Background

Steel Foundry development project 3.5m investment with Anshan Iron and Steel Corporation

Participants include Chinese Gov, ECGB and Midland BankInternational

18 months project

Lesson LearnedFailure to understand the cultural differencesContractual failure

Need for good people

Steel Foundry Project in Anshan



42/65

1990s

Guangzhou, Guangdong

As an Investor..



43/65

Guangdong



44/65

Guangdong Business Environment

Total Number of Industrial Enterprises (unit) 24494

Grouped by Ownership

State-owned with State-holding Industry 2103 9%

Fully State-owned Industry 1344 5%

Collective-owned Industry 2513 10%

Cooperative Enterprises 305 1%

Share Holding Enterprises 5549 23%

Foreign Funded Industry 2070 8%

Enterprises Funded by Entrepreneurs from Hong Kong, Macaoand Taiwan 8549 35%



45/65

Background

Dubai owned companyEstablish 100% foreign owned wholesale/retail business

Registered in Guangzhou

Chinese managedBudgeted US$1m investment

Lesson LearnedLegal Representative

Registration of businessPaid up capital

Free trade fine detailsChanging policies

Hardware Distributor in Guangdong



46/65

2000s

Zibo, Shantung

As a Consultant.



47/65

BackgroundIndian hotelier building 8 hotels in India

Complete turnkey by Chinese Visit to China in 2005

Contract signed on 2006 Work starts in 2007

Lesson LearnedLanguage Issues

AttitudeInternational exposure Contractual difference

Hotel Development for India



48/65

The Rules for the Chinese Market

Think Chinese

Learn Chinese

Be Chinese


Ch i P fil f th


49/65

Changing Profile of the

Chinese Business person

1980s / 1990s Communist turns Capitalist

2000s The Little Emperors

Beyond The Professional Socialist



50/65

India



51/65

Malaysian Chinese Vegetarian Business in India


BackgroundManufacture vegetarian ready-to-eat food productCollaboration with IndianStart import then factoryTarget Indian vegetarian market

Lesson LearnedUnderstanding of Indian culture

Legislature requirementsLack of cold chain structure


52/65

BackgroundDistribution of Chinese brand of consumer electronics

Indian partnershipPlan for Retail / Wholesale / Assembly

Started in Delhi

Lesson LearnedChina brand

Import dutiesNeed for latest productIndian supply chain

Chinese Government-owned

Electronic Firm to India



53/65

BackgroundChinese motorcycle manufacturer partnership with Indian

suppliersManufacture motor cycle repair kit

Under license for major brand

Lesson LearnedLanguage issues

Lack of leadershipIndian trust and Chinese reputation

Indian engineering skill & Chinese design capability

Automotive Component Distributor in India



54/65

The Rules for the Indian Market

Respect

Patience

Tolerance



55/65

China & Indiain comparison.


Chi d I di


56/65

China and India

- Business Commonality

Large Population

Young people

Growing middleclass

Spending power

High consumption

Affluent

Economic growth

Low cost labour

High educational leveland technically able

Vast natural resources

Large returningnational


Chi d I di


57/65

China and India

- Business Differences

China State owned enterprises

Bureaucrat Leadership

Singular entity

Single child mindset

Do and think approach

Politically bias

Rapid growing infrastructure

India Family managed business

Patriarch leadership

Multi facet entities

Extended family mindset

Think Think Think and do approach

Religious bias

Weak infrastructure



58/65

India & China

Sell to the mass market

Whats sells Infrastructure

Lifestyle and Brand(Food / Consumer Electronic / Automotive)

Education

China and India



59/65

Other Lessons Learnt

Human Resources

Beyond paper qualificationThe Chinatown

TailorSocial Issues

Female distractionThe Cow and the Milk

Business Practices

Kickback and corruptionThe Scholarship



60/65

Talking to the Chinese

Contractual Relationship Compromise-in your favor

-- in their favor

People, People,

People

Ice Breaking Topic

Child

Study

Money

Minority vs Majority

Repatriation of Fund

MiscellaneousExpenses

Who to pay?

How to pay?

How much?


Financial Crisis


61/65

Financial Crisis

China & India

Its happening in GuangzhouMin Wage / Insurance for workerArrogance and GDP / HKFactory Closure

Beijing China Builders FairIndian and African vs the European and the American

Its happening in Mumbai Corruption Lack of confidence in market Job lostBanks are conservative and no mini-bonds



62/65

Being Successful in Business Development

ADAPT! ADAPT! ADAPT!

Local Knowledge important important to have a representative

Need for good people

Less focus on initial entry and more on a longer term view



63/65

New Market Development for Small Business

Developing oversea business is not cheap

Finding the right network to start off

Cultivating the network

Need for people to sustain the new market

Making money out of the new market

Taking money out of the new market

What next?



64/65

Background Reading


Innovation & Entrepreneurship by Peter Drucker Entrepreneurship Strategies & Resources by Marc DollingerEntrepreneurs Helpline by Alexandrino FerreriaHarvard Business Review on entrepreneurship by Harvard Business SchoolSingapores Homegrown Entrepreneurs tell you how to do it by Russell R Miller


65/65

Questions & AnswersMy email address: [email protected]

emba apr13 session 2

Documents