Practice of Entrepreneurship

8/6/2019 Practice of Entrepreneurship

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Group Member: Faizan Khalid

Furqan HasanAli Afzal

Talha HanifAsad Bandeali

Khurram AbbasQadeer-ud-din

M.Zeeshan

Francisco Romano


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Self Discovery

Identifying Opportunities

Generating and Evaluating Ideas

Planning

Raising Start-up Capital


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Start-Up

Growth

Harvest


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Self Discovery: The act or process of achievingunderstanding or knowledge of oneself.

Identifying Opportunity: Looking for needs, wantsand problem that are not yet being met.

Generating and Evaluating Ideas: Using creativityto devise new ways to solve problems and needsand then narrowing the field to one best one.

Planning: Identifying resources needed to turnidea into viable venture.


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Raising Start-up Capital: Using the business plan toattract the investors.

Start-up: Launching the venture, developing a customerbase and adjusting marketing and operational plans asrequired.

Growth: Growing a business and developing andfollowing the strategic plan.

Harvest: Selling the business and harvesting thereward.


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Develop Mission and Vision Statement

Assess theStrength and Weaknesses

Scan the Environment


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The vision gives the reason for existence.Elements:

It provides direction It determines decision

It motivates people


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It gives:

the purpose of the company

the business we are in the values of the company


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Keep it short

Keep it simple

Measureable

Realistic


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Strengths: positive internal factors that a

company can use to accomplish its mission.

Weaknesses: negative internal factors that

inhibit the accomplishment of a companysmission.


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Opportunities: positive external option that a

firm can exploit to accomplish its mission.

Threat: negative external factors that inhibit

a companys ability to achieve its mission.


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Identify The Key Factors For Success

Analyze The Competition

Create Company Goals & Objectives

FormulateStrategic Options & Select The Appropriate

Translate Into Action Plans

Accurate Control


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KeySuccess Factors.

The factors that determine a companys ability to

compete successfully in an industry.


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Competitor analysis. Direct Competitors

Indirect Competitors Significant Competitors

What To See In Competitors. Who they are? And where they are located.

Their strategies. Marketing of product/service

Strengths & Weakness.


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Competitive Profile Matrix.

A tool that allows a business owner to evaluate

their companies against major competitors usingthe key success factors for that market.


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Goals.

The broad, long-range attributes a business seeks

to accomplish; they tend to be general andsometimes even abstract.

Objectives.

More specific targets of performance, commonlyaddressing areas such as profitability,productivity, growth,& other key aspects.


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Characteristics of Objectives

Specific

Measurable Assignable

Realistic

Timely

Can be written down


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Strategy

A road map of the actions an entrepreneur drawsup to fulfill a companys mission, goals, andobjectives.

Three options

Cost leadership

Focus

Differentiation


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Implementing the Strategy


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Controlling the Strategy

BalancesScorecard Customer perspective

Internal business perspective

Innovation and learning

Financial perspective


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What exactly do you mean by

Entrepreneurial Management ?


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Existing Business

Public-Service Institution

New Venture


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What is Entrepreneurial Business?


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EXISTING BUSINESS

Entrepreneurial Policies Entrepreneurial Practices Measuring Innovative Performance Structures Staffing Three Donts


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EXISTING BUSINESS

Entrepreneurial Policies

What is Entrepreneurial Policies


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1.Entrepreneurial PoliciesAttractive innovation for managers

-L

inking innovation to internal staff- Capable People to work on innovation

- Allow Management to Innovate


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2.Making an Existing Business greedy for newthings

-Analysis of the existing Product life cycle

-Existing Advertising Strategies


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3.Collecting Information

4.

Systematic abandonment


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EXISTING BUSINESS

Entrepreneurial Practices

Focusing Managerial Vision on Opportunities

Generate Entrepreneurial spirit throughout the entireManagement Group

Member of the Top Management sits down with thejunior people


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EXISTING BUSINESS

Measuring Innovative Performance

Feedback from results to expectation

Develop a systematic review of innovative efforts alltogether

Judging the companys total innovative performanceagainst its innovative objectives & its performance &standing in the market


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EXISTING BUSINESS

Structure

The new has to be organized separately from existing& special locus for the new within the organization

To keep away from it the burdens it cannot yet carry

Person or a component group should be held clearlyaccountable


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EXISTING BUSINESS

Staffing

Decisions are made like any other decisions aboutpeople and job

These are risk taking decisions

These decisions are made carefully

These decisions are made correct way


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EXISTING BUSINESS

Staffing Process

Checking the assignment

Considering the number of people

Checking the performance records


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EXISTING BUSINESS

The Donts

Dont mix the entrepreneurial unit with themanagerial unit.

Innovate where it has expertise. Dont go fordifferentiation.

Dont buy small entrepreneurial businesses tomake it one company.


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PUBLICSERVICE INSTITUTION

Institution providing services for general public.

Government agencies Schools and Universities Hospitals


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Public service institution find it far more difficult to

innovate than even the most bureaucraticcompany


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The forces that hinder entrepreneurship and

innovation in a public service institution areinseparable from it.

The best proof of this are internal staff services inbusinesses.


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Reason of an obstacle to innovation faced by public

service institution are:

First the public service institution is based on abudget rather than paid out of result.

Success is being defined as by getting a largerbudget rather than obtaining results.


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A business needs only a very small share of a

market to be successful. Then it can satisfyshareholders workers.

But public service institutions includes staffactivities within a business corporation have

no results of which they are being paid anyconstituent no matter how marginal has ineffect a veto power.


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The most important reason however is that

public service institution tend to see theirmission as a moral rather than economic andcost benefit.


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Causes that demonstrate entrepreneurial policies

needed in public service institution to make itcapable of innovation are

First public service institution needs a cleardefinition of its mission.

It needs a realistic goal. Something that is genuinelyattainable and a commitment to a realistic goal.


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Failure to objective should be considered as an

indication that objective is wrong or least defined.The objective should be economic rather thanmoral.

Need to build into their policies and practice the

constant search for innovative and opportunity.Change should be considered as an opportunity ratherthan threat.


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Public service institutions have become tooimportant in developed countries.

Public service institution have to be madeproductive and producing. They will have to learnto be innovators to manage themselves.

For this they will have to look upon social,technological, economical and demographic shiftsas opportunities in a period of rapid change


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NEW VENTURE

Any new business involving some risks

and expectations of gaining something.


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A NEW VENTURE MUST HAVE:

An idea

Product or service Costs

Sales Profits


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A NEW VENTURE MUST NOT HAVE :

Established business

no developed productsHigh lump sum profitsFully aware customers


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Totally focusing on your idea

Choosing all the resources as per your need

Easy to bring changes Choose your own management team

It can be a winner

Make your own name


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1) Focus on the market2) Financial foresight

3) Building a management team4) Entrepreneurs role and decisions


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THE NEED FOR MAKET FOCUS:

Focus on the market as a whole

Do not limit the product search for new markets and opportunities

willing to do experiments focus on customers


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FINANCIAL FORESIGHT:Poor Financial Forecast May Lead To:1. Lack of Cash

2. Inability to raise the capital needed for expansion3. Loss of control, with expenses, inventories, and

receivablesEssentials of effective Financial Foresight:1. Cash flow management2. Cash flow analysis3. Cash flow forecast


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BUILDING A TOP MANAGEMENT TEAM:

STEPS:

1. The founder with other key people thinkabout their business.

2. Identifying strengths and weaknesses.

3. Keeping right people on right job.4. Finally setting of goals and objectives for

each department.


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WHERE CAN I CONTRIBUTE?:

The Three Questions An Entrepreneur Ask

Himself Are:1. What do I like to do?2. Where do I fit in?3. What am I good at?


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Need lot of efforts

Hard to get finance

People awareness Have to build a strong management to keep

business rolling

Productivity is not known

Documents

Practice of Entrepreneurship