...| AIB student ID number: | A001324635 | | | Student name: | Patries Ramkaran | | | Course name: | MBA in Entrepreneurial Management | | | Subject name: | New Venture Creation | | | Subject facilitator: | Priscilla Bahaw | | | Teaching Centre: | School of Higher Education (SHEL) | | | No. of pages: | 27 | | | Word count: | 2491 | | | DECLARATION | I, the above named student, confirm that by submitting, or causing the attached assignment to be submitted, to AIB, I have not plagiarised any other person’s work in this assignment and except where appropriately acknowledged, this assignment is my own work, has been expressed in my own words, and has not previously been submitted for assessment. | ASSESSMENT SHEET | Student name: | | | | Course name: | | | | Subject name: | | | | Assessor/marker: | | | | COMMENTS | Principles learnt (for example, number and understanding of principles referred to, their influence on the structure of this paper, number and correct citations of references, use of appropriate jargon) | | /4 | | | Application of principles. That is, the analysis and evaluation of the example problem based on the principles, including the final recommendations and their justification | | | /8 | | | How well the example problem was described, including the extent and depth of information (including the data) about it that was accessed | | | /4 | | | Structure...
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...New Venture Creation Individual Assignment Table of Contents 1.0 Introduction 2 2.0 Business concept statement 2 2.1 Reasons for operating business in Hangzhou, China 2 2.2 Business market analysis 3 2.3 Business Strategy 3 2.4 Concerns or Uncertainty about the Business 4 3.0 Financial Aspects 5 4.0 Conclusion 6 5.0 Reference 7 1.0 Introduction This essay is going to discuss my thought about creating a new venture in Hangzhou, China. From a personal point of view, a successful business should be well planned for a long period of time, since we are still novel to the complex society. In order to maximise the possibility of turning my business concept into reality, there are a number of elements needed to take into consideration seriously. This essay will mainly focus on stating my business idea, analysing the business market, showing my business concerns, adopting a business strategy, and finding funding for the business operation. 2.0 Business concept statement My business concept is about teaching children English in a more enjoyable way. This English training will be operated in a playground and the target market is children from 3-6 years old. The business will be located in Hangzhou, China which is a home city of mine. Some more details will be discussed in the following part of the essay. 2.1 Reasons for operating business in Hangzhou, China In terms of the bigger part of the business operation location, we are going to run our business...
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...NEW VENTURE CREATION CASE STUDY: OPPORTUNITY RECOGNITION AT OPHL QUESTION 1 Why did the recognizing a new business opportunity was important for OPHL? It is very crucial for OPHL in recognizing new business opportunity especially when the company is realize the business turning to be unusual, thus effected the profit. In order OPHL to sustain in the industry, the company must seek a new business opportunity which promises a huge profit for short and long term, thus create values to the stakeholders. OPHL is facing turbulent business environment and it requires the company to be more aggressive and creative to ensure the sustainability of OPHL. The importance of recognizing new business opportunity has mentioned by Peter Drucker in his theories of Business Diamond Model and Managerial Levers. OPHL also needs to think out of the box in searching new opportunity to be competitive in the market as mentioned by Michael Porter in his Diamond Model. In that theory, Porter says that there are six broad factors; factor conditions, demand conditions, related and supporting industries, firm strategy, structure and rivalry, government and chance, which has become a key tools that interact with each other to create conditions where innovation and improved competitiveness occurs. QUESTION 2 What is the dilemma faced by Mrs. Rahmah? What are the main opportunities identified by OPHL? A recession led to slowdown in economic activity and due to the economic downturn, the...
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...large operating company with huge financial success and annual revenue. With that in mind this company has the ability to implement several different kinds of organizational structures and departments. The best approach to starting the idea of cutting expenses and increasing revenue would be to become more centralized than in the past, but not 100% centralized at this point. This new structure would create two to three new divisions under Scott; a farm supplies purchasing department which would include a salaried manager, or a manager and two supervisors, an analyst, three buyers, an expediting clerk that cross trains as an invoice clerk or an invoice clerk. The larger farm supplies purchasing department would fully handle the purchasing of farm supplies. Taking the power away from the local managers and the product managers would give them the ability to have a deeper view of the organization. For example, the company could consolidate shipments of supplies to save transportation costs. Effective communicate between new departments, management, and subordinates is crucial to make this new venture effectively run. The smaller elevator operations purchasing department would oversee the decisions made by local managers, but would not do any...
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...Lean Start-Ups and Creating an Entrepreneurial, Innovating Economy Missouri Southern State University Abstract Whenever a new venture creation business starts, whether it be a brand new company to a previously established business looking to expand its horizons, failure is almost inevitable. But, thanks to the lean start-up business model, success rates have been increasing and showing great results. The lean business model provides, in a way, a safety net during the testing the hypotheses stages of a new venture to where if failure is detected, corrective action can be taken immediately with minimal risk involved due to testing. In today’s economy, employment can be tricky, thus creating an environment where new venture creation along with a lean business model can help to create an entrepreneurial, innovating economy. Lean Start-Ups and Creating an Entrepreneurial, Innovating Lean start-ups are becoming more popular, spreading from just young tech ventures to big, already established companies due to better rates of success compared to traditional business models. When companies use lean business models, they lead the way for an economy that becomes based off of innovation. This paper will discuss lean start-ups and the process of creating an entrepreneurial, innovating economy. Schemerhorn and Bachrach (2015) states three stages to the life cycles of entrepreneurial firms that all entrepreneurs encounter. Those stages being the birth, breakthrough and maturity...
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...Entrepreneurial Ventures Lecture 10: Pre-start Analysis, Part 3: Assessing Business Model 胡秋江教授 1 What We Shall Discuss This lecture is Part 3 of our discussions on pre-start analysis. In this final part, we shall discuss the following: What business models are and what they are not The elements of a business model Assessing new venture business models: What makes a good business model Examples of effective and flawed business models 2 Business Opportunity & Business Model On recognizing a promising opportunity, an entrepreneur will formulate hypotheses relating to the following: The likely customers that the venture should target How the opportunity can be exploited to develop and deliver products/services that target customer need or want at an appropriate cost, allowing the venture to make a good profit The resources required to pursue the identified opportunity In formulating these hypotheses, the entrepreneur is essentially formulating the underlying premises for a business model. 3 What Is a Business Model, Really? ‘Business model’ is a widely used but remains a fuzzy concept with no universally accepted definition. Nevertheless, a good business model is essential to every successful enterprise, new or established. It is… A valuable analytical and communications tool Tool for realizing value from technological innovation Our working definition of business model: A representation of (1) what value a new venture proposes to offer...
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...Development Franchising as a Social Innovation: When Entrepreneurial Expertise is Lacking Isaac H. Smith David Eccles School of Business University of Utah Kristie K. Seawright Marriott School of Management Brigham Young University Contact: Isaac H. Smith; isaac.smith@business.utah.edu; (T) 801-518-2991; 1645 East Campus Center Drive, 22 KDGB, Salt Lake City, UT 84112 Promoting entrepreneurship in “developing” nations has become a popular strategy for alleviating poverty and stimulating economic development (Khandker, 2005). For example, the worldwide proliferation of microfinance institutions is based on the assumption that providing individuals with better access to financial capital will fuel entrepreneurship and microenterprises, providing opportunities for people to work their way out of poverty. The results of such efforts, however, have been mixed (Snow & Buss, 2001), in part, because not all microfinance borrowers have the entrepreneurial skills sufficient to make a microenterprise succeed (Karnani, 2007a). Cross culturally, successful entrepreneurs have been shown to possess a different set of knowledge structures, or mental schema, than non-entrepreneurs (Mitchell, Smith, Seawright, & Morse, 2000). Interestingly, franchisees—often considered to be entrepreneurs (e.g., Baucus, Baucus, & Human 1996; Grunhagen & Mettelstadedt, 2005)—have been found to have entrepreneurship-related knowledge structures more closely resembling non-entrepreneurs than entrepreneurs...
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...Case Brief Internal Entrepreneurship at Dow Chemical Description With the 2001 merger with Union Carbide, Dow Chemical Company became the largest chemicals and Plastics Company in the world. The merged company had sales of $27.8 billion specializing in chemical, plastic and agricultural products. Prior to the merger, growth had become a priority for Dow Chemical. In the years prior to 2000, the firm’s turnover dropped from $20 billion to $18.4 billion as the Net profit margin eroded to 7.1% from 10.3%. The e-epoxy.com venture was one of the many new growth initiatives Dow Chemical launched to bolster growth during this period. E-epoxy.com was conceived by Ian Telford to target the underserved market of small customers that are cost conscious. Evaluation EP&I Division: The epoxy business is a high margin but also highly capital-intensive business for Dow chemical. With 20% of the customers generating 80% of the division’s revenue and the cyclical nature of the epoxy market, the business is very susceptible to downturns. The concentration of revenues from a few customers would intuitively put customers in a position of strength during price negotiations; however Dow Chemical did not disclose prices charged to other customers. Dow Chemical maintained relationships with key clients by providing value added services (integrated supply chain, technical assistance, and volume rebates). The added services were necessary to differentiate Dow’s product. With highly...
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...article from the Americain magazine « Forbes » caught my attention. It deals about the Anglo-Dutch multinational consumer goods company Unilever and Cuba’s economy. Indeed, Unilever has announced its return in Cuba through the creation of a joint venture « Unilever-Suchel S.A. » in the Mariel Special Development Zone. The Special Economic Development Zone of Mariel is a project directed to encourage the nation’s sustainable economic development by attracting foreign investment, technological innovation and industrial concentration while at the same time ensuring environmental protection. Cuba is opening up its economy to foreign investment with some economic reforms in the system. As a result, Unilever-suchel S.A. will build a new factory to enter the Cuban Market with international known brands such as Lux, Omo, Rexona, Sedal. The food and cosmetics giant Unilever will begin operations in Cuba in 2017 after communist officials authorized a joint venture with Suchel. In the venture, Unilever will invest $35 million in order to acquire a pole position in that country. Futhermore, it can be considered as a symbolic return to an earlier foray by Unilever into Cuba since a joint Unilever endeavor failed in 2012, when the company pulled out of a joint venture with the Cuban state-owned...
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...Mason and Shepherd 1. What legal and ethical issues do you see with Mason and Shepherd’s plan to leave their current employer? How should they proceed from here on? Mason's endeavor for the venture creation is strictly bounded by her employment agreement with ATS. That is to say, she will be in clear violation of the Noncompetition, Nonsolicitation, Nondisclosure and Development provisions, if she plans to pursue the venture within one year by utilizing the information and social network she gained from the company. So the first barrier she need to tackle is to prove this new business is not in competition with ATS at all. Also she cannot speak with any current customers of ATS. These limitations will probably strangle the venture in embryo. Also, Mason had recently played golf with a colleague, who told her that if she ever left the company or came upon an idea. he wanted to be involved. Yet, because she signed an employment agreement with a non-solicitation clause, she was very skeptical. Another possible sticky situation is that ATS claims ownership of the data in her office computer, which contain many resources and information useful for her and accounts about her new venture. First aid for this situation is to remove all the incriminating data and information about the venture as soon as possible. Beyond that she can hire a legal consultant and lawyer to negotiate with ATM. Shepherd's problem is more about intellectual property law. In his agreement with NOVA, he...
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...phenomenon from different standpoints. It has also shown that the phenomenon is much more complex and heterogeneous than was thought in the 1980s. However, to advance knowledge and produce tools that are useful in practice, it has become necessary to establish theories that will generate more productive empirical research. Some effort at definition is therefore needed. The definition proposed here takes a constructivist stance, and is at the service of a research project— that of understanding or forecasting the entrepreneurial act and its success or failure, and defining more accurately the environmental conditions favourable to that act. Here, the scientific object studied in the field of entrepreneurship is the dialogic between individual and new value creation, within an ongoing process and within an environment that has specific characteristics. This definition emphasizes the fact that we will not understand the phenomenon of entrepreneurship if we do not consider the individual (the entrepreneur), the project, the environment and also the links between them over time. It shows the entrepreneur to be not simply a blind machine responding automatically to environmental stimuli (interest rates, subsidies, information networks, etc.), but a human being capable of creating, learning and influencing the environment. This standpoint is consistent with the...
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...international corporations, in which the level of production, consumption, export, import and income depends on the decision of international centers situated beyond the certain country’s borders. As any other process that takes in the world, globalization has certain advantages and disadvantages, thus, it has its followers and opponents. For some countries globalization offers multiple opportunities of economic growth and prosperity, however, the other ones are threatened by it, due to the economic inequality and political control it can cause. Developed and developing countries have different fears concerning globalization. While some developed countries anticipate the process of globalization, because it opens new low-cost markets of developing countries and creates new competitive environment, which might not be favorable for domestic markets of developed countries; developing countries are concerned about possible political and economic dependence from the side of developed countries, which may be caused by the globalization and domination of market forces. Despite positive or negative effect of globalization, this process continues to exist, shaping all spheres of life in the modern world. Other advantages and...
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...come up short trying to make a profit by solving the pressing needs of low-income communities. Preoccupied with their social missions, companies have optimistically taken on challenging projects, only to be surprised when weak consumer demand and obstacles such as bad roads October 2014 Harvard Business Review 3 This article is made available to you with compliments of FM Global Insurance. Further posting, copying, or distributing is copyright infringement. To order more copies go to www.hbr.org or call 800-988-0886. PROFITS AT THE BOTTOM OF THE PYRAMID keep revenues low and costs high. Over tretched s and disillusioned, many switch gears and reconstitute their ventures as break-even social investments that are destined to remain small. Profits are critically important for ventures targeting the bottom of the economic pyramid—the more than 4 billion people who individually earn less than $1,500 per year. Compared with a social responsibility project, a profitable business stands a better chance of...
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...Frederick W. Smith. Please respond to the following: Discuss the process of identifying market needs. Frederick Smith quickly identified market needs when he noticed that companies were becoming more technical with the use of computers. He formulated that if companies would use his overnight aircraft delivery service it would cut down cost on warehouse storage and get their products to their destinations in a timely manner. His idea came to past again when he took interest in how hard it was to get parts to a Little Rock, Arkansas, aircraft modification and overhaul shop. What makes new venture creation difficult? In the situation of Fredrick Smith with his new venture creation difficulties, first began with OPEC causing a massive inflation of fuel costs at the beginning of his new venture, which he did not anticipate. New venture creations can stop you dead in your tracks just as with Mr. Smith, just when his company’s volume of package shipping increased, he then was faced with intolerable airline regulations restricting the company to only fly tiny Falcon jets. Mr. Smith also encountered financial failure where his investors were not willing to keep the business afloat and family members were suing him for the mismanagement of the family fortune. By 1973, Smith was so desperate for cash that he flew to Las Vegas to play the blackjack tables. He wired the $27,000 he won back to FedEx. (Foust, 2004) After all of the highs and lows Mr. Smith never...
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...existing financial system in Bangladesh to cater to financing needs of SMEs or new potential entrepreneurs and a proposal has been given to develop the venture capital industry to meet financing and non-financing needs of SMEs. SMEs play a vital role within Bangladesh’s economy in terms of creation of industrial outputs and generation of employment. Even though they play a significant role they face problems in securing investment or manage finance to develop their ideas or to expand their existing business. It is not possible for Bangladesh to accelerate economic growth without catering to the financing needs of SMEs, Thus, the paper proposes the development of the venture capital industry as an additional financial intermediary to Cater to financing and non-financing needs of SMEs. The paper discusses available sources of finance for SMEs and the Constraints of these sources. There are basically three sources from which SMEs may receive finance. These are banks, non-government organizations (NGOs) and the capital market. Then, we discuss the advantages that venture capitalists have over banks in catering to the funding needs of SMEs. It is argued that venture capitalists perform the role of ‘active investors’ by way of offering both financial and non-financial commitment to the investee company, which is essential in a market characterized by a high level of uncertainties. Also, it is argued that venture capitalists can reduce the transaction costs associated with monitoring as...
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