Entrepreneurship Management

Writing a business plan is so important for a business because it serves as a design for building a successful company. There are many reasons why business plans fail; however, I found some that to me are really important to take in consideration when designing a business plan. For example, a lot business plans do not target potential investors properly, fail to identify the objectives, or sometimes even fail to review and update the plan. A business plan can also fail when it lacks of an adequate marketing analysis, or lacks a plan on how to react to the market conditions which are always changing. Some business plans focus on the service or product too much and fail to understand how to actually generate sales. Sometimes the business knows there is a demand and need for their product or service, but fails to get to know really well the competition and fails to create a pricing plan. I believe the probability for a business plan to fail can be considerably reduced if these points already mentioned above are considered and taken seriously. Setting realistic and achievable goals is also essential in the progress and success of a business plan. A really well implemented market research is imperative and vital part of a business plan; a business must understand the competition and the marketplace and develop a plan accordingly.

QUESTION 1: WHAT DEFINITION OF BUSINESS MODEL DO YOU FIND MOST  USEFUL AND WHY?

First, to me, both definitions are pretty much the same; however, I find the first one to be most useful because  it clearly states that a company must create value through not just the combination of products, or services image but also  “the underlying organization of people, and the operational infrastructure that they use to accomplish their work.” A lot of companies focus too much on the service or product they offer, but what about the other essential aspects of a business plan, such as the organization of the people that make up the company and the tools used to provide the service or products to customers. The second definition is too broad; therefore, to me, the first one can be most useful since it specifies in more detail the aspects that are essential and must be considered when companies examine business plans.

QUESTION 2: WHAT ARE THE SIMILARITIES AND DIFFERENCES BETWEEN THE TWO TOOLS FOR DESIGNING  BUSINESS MODELS?

Some similarities I was able to find between these two models is that  both emphasize the importance of identifying the company’s  customers  or “market segment” as well as “key partners,” also the importance of creating and contributing to the “value proposition.” I also find   that in Model 1’s component # 3 and Model 2’s topic # 4 are very similar, both ask to identify the key resources or assets that are needed  for the firm to perform its activities and function  in the business environment.

A difference  between these two models, is that Model #2 is more creative  and innovative and  I believe can generate more ideas than Model #1, the reason is that it is composed specifically of questions made to each participant and is recommended to be used in team-sessions, and the more brains  working together, the better results.  Another difference is the vocabulary used to refer to customers. Model 1 mentions “market segment” and “users” (in component #2), where as Model 2 refers as “customers” in most of all its key topics.

QUESTION 3: WHY WAS GREIF PACKAGING, DESCRIBED IN CHAPTER 2, ABLE TO CAPTURE  MORE OF THE VALUE  IN THE SUPPLY CHAIN? WHERE DID THE EXRA VALUE COME FROM, AND WERE THERE OTHERS WHO LOST THE VALUE THEY WERE SELLING?

Grief Packaging was able to capture more of the value in the supply chain because the company focused on identifying customers’ needs. It realized what customers really wanted which was the efficient and safe transportation of the toxic chemicals. The extra value came from being able to identify the unmet needs and develop new solutions; Grief created a way to solve the trip problems for customers. It took care of the details that customers did not want to deal with which were “finding a licensed trucker; filling in the government forms; and washing, cleaning, and refurbishing the drums.” I think that the drum suppliers  are some who lost the value they were selling because now Grief was the one capturing more of the value in the supply chain by dominating and taking care of customer’s  needs and wants.

QUESTION 6: NAME THREE SIMILARITIES AND THREE DIFFERENCES BETWEEN A FRANCHISE AND A LICENSE.

Three similarities between a franchise and a license are: 1)Both require a type of agreement or contract between an issuing party and a receiving party, 2) both  require  that the contract clearly defines and identifies each  party based on the reasons for entering into the agreement, and 3) both can provide intellectual property which has to be precisely defined. Both agreements may give patent numbers, trademarks, or list of secrets.

Three differences between a franchise and a license are: 1) in  a franchise agreement the limitations of the franchisee’s business are clearly defined, whereas,  in a license one, the licensee  could have more freedom if  these limitations are not indicated in the agreement, 2) in contrast to a franchise agreement, a license agreement clearly defines the territory where a licensee would be doing business, and 3)a franchisor is required by law to provide the franchisee with the Uniform Franchise Offering Circular document, so that  the purchase is aware of the risks and dangers of the franchise agreement; this is not necessarily required in a license agreement.

QUESTION 1: WHY IS INNOVATION IMPORTANT, AND HOW IS IT CHANGING?

Innovation is important because we live in a globalized world, in a world where people from different countries find themselves interchanging products or services, cultural ideas and beliefs, as well as work ethic between each other. Because the market place is always changing a company’s target market and consumers will also change; for instance, technology keeps developing and so the consumer’s needs and wants keep changing too. More consumers want fast solutions and expect technology to be involved, thanks to technology consumers can sometimes get faster solutions, have access to information, products or services from anywhere and at any time.

I believe innovation is important because it enables a company to grow in a very competitive world and have the opportunity to use it as its advantage  and obtain competitive edge. Without innovation and adaptation, a company will eventually be out of business. The economy also keeps changing from country to country even though we are all connected and depend on each other at a certain degree; the company might find new potential customers in developing countries for example, a country in South America, where they don’t have locations yet or know much about the country’s cultural aspects, so they must innovate, learn and adapt, and use different approaches and techniques to be successful in the new place and be able to grow and expand.

QUESTION 9: WHY DO YOU THINK DELL WAS SUCCESSFUL WHEN OTHER COMPANIES TRYING THE SAME  MODEL FAILED?

I think that innovation was what  made Dell successful while their competition failed. The other companies failed because they could not respond quickly to the new kind of service and supply provided by Dell. It no longer was about selling computers, but selling computers that would satisfy specifically each and every consumer’s demands and needs. Dell was not trying to sell to a large market anymore like its competition was, it focused on customer satisfaction and so it enabled the consumers to design their own product according to their needs and wants. Dell focused on customer satisfaction also by supplying printers that would connect to the internet and  with a software  that would forecast the need of ink replacement and enable consumers to have ink drop shipped on time. By making consumers happy with the company’s service and product, Dell was able to increase its revenue and profits and succeed.

QUESTION 1: DO YOU THINK ENTREPRENEURSHIP AND SMALL BUSINESS ARE DIFFERENT? WHY?

I think that Entrepreneurship and small business are different; however, at the same time one is present in the other. For example, a Small business was able to be created because someone was an entrepreneur.  Without entrepreneurship a business regardless of its size, could not be created. I believe that entrepreneurship is an essential requirement to start a business.

To me, being an entrepreneur is someone who is creative and a risk taker, someone who sees opportunities where most people don’t, someone who is able to adapt and recognize a need and comes up with an idea and solution and makes profit out of it. A small business owner was an entrepreneur when created his own business; however, in order to continue growing, he must not only keep his entrepreneurial characteristics but also have the ability to adapt, innovate and be able stay in business when times are hard.

The reason why I think  entrepreneurship and a small business are different is because, for example, a small business can remain in business and compete with other ones just for so long; if it lacks of innovation and the ability to adapt, it cannot be considered entrepreneurial anymore but can still be considered a “business”  due to the fact that it would still be an entity selling or providing service to clients or customer until it finally goes out of business or bankruptcy.

QUESTION 4: IF YOU START A COMPANY, WILL YOU EXPECT TO ALWAYS BE IN CONTROL, OR WILL YOU BE WILLING TO SHARE CONTROL WITH OTHERS IF THAT WILL HELP THE COMPANY GROW AND MAKE ALL THE PARTICIPANTS WEALTHIER? DESCRIBE YOUR REASONS FOR YOUR CHOICES.

If I start a company, I would not expect to be in control all the time and I would be willing to share control with others. In the business world, we need of each other; the reason why is that a company’s success depends on a team effort and the participation of each member.  I believe that by sharing control, one can empower others. Empowering each member of a company is so important and should not be an option but a requirement for the grow and success of a company.

When participants are involved in the daily activities of a company and are also empowered, they will develop a sense of identity towards the company; this also makes each participant feel that they play an important role in the company, which is true.  If every participant takes his/her role seriously and is aware that their performance is important, they will feel more motivated to continue progressing and improving, in this way the business will improve and grow as well. A business success does not depend on only the business owner or one person but each member of the company. The participants will improve, get wealthier and so will the company.

QUESTION 7: WHAT ARE THE GROWTH ISSUES ENTREPRENEURIAL COMPANIES FACE?

I believe that adaptation to new consumers’ trends and new locations, are two examples of the growth issues entrepreneurial companies face.  As a company grows, it must adapt to their target market’s new demands and trends; for example, more people are becoming health conscious, another example is that more people are buying online.  Even though every company whether small or big must adapt, a company only can grow when it provides service or goods to a bigger target market, but that’s not all, the company’s success and growth also will depend on how satisfied and happy their customers are, and they greater amount of customer, the harder it becomes to satisfied a wide variety of needs and trends.

When a company starts to grow, it must adapt and expand, so finding a good location for their business is not always an easy job, they must find a good location that is suitable to the kind o service they are providing.  They must study very well their consumer and the changes they must make in order to succeed in the new location.

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