Most entrepreneurs operate in environments that have considerable competition. It is necessary for the business to establish its own products or services and then differentiate them from competition. …
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This is why generating ideas is important, to identity potential innovations in either advertising or actual product development. Certain products and services have limited life cycles, meaning that they move from launch to growth to maturity in shorter periods of time (Keegan and Green, 2009). In order to maintain competitiveness, an entrepreneur must always develop new concepts in order to create products or services with longer sales potential and keep the business distinctive and original from competing firms. Strategic objectives are defined as “short-term statements that detail specifically how an organisation will achieve its long-term goals” (Nickels, McHugh and McHugh, 2005: 215). Once ideas have been generated about how the business will position itself, it is necessary to set-up and identify the steps required to achieve long-term strategy. This might include conceiving how to establish an organisational structure (vertical or horizontal), how to focus on human resources for people development, or determine advertising strategy. Objectives are important as they serve as a framework for how the business will achieve long-term market position or growth. Market analysis and market research Boone and Kurtz (2005) again identify the importance of market analysis, which is understanding what consumers value, their purchasing preferences and their lifestyle or family trends. A business must conduct either qualitative or quantitative research to determine how to segment customers for marketing and also how to target them effectively with promotions, pricing and advertising. The company can perform surveys or questionnaires, as two examples, in order to determine how it will provide effective products and services that will be appreciated and adopted by selected target customers. It is necessary for the entrepreneur to understand these consumer attitudes in a variety of different dimensions for the business to be able to compete successfully. Market analysis is about gaining knowledge of buyer behaviour and then applying customer service principles that will best satisfy customer needs. Market analysis is also about understanding the different forces that impact business success or will contribute to its failure. Michael Porter developed a framework known as the Five Forces Model that describes risk of competition, supplier and buyer power in the market, and threat of substitute products (Porter, 2011). A business needs to understand the volume of competition in the industry in order to develop a risk management model. Since entrepreneurs will also be procuring inventories from various vendors, the business needs to conduct market analysis to understand how much leveraging power it will have against suppliers and how to establish an efficient supply and value chain framework. It is vital to have knowledge of how the external market operates and this can only be accomplished through market analysis processes, such as PEST analyses. Understanding competition “To differentiate means to create a benefit that customers perceive as being of greater value to them than what they can get elsewhere” (Zwierzynski, 2009: 1). An entrepreneur must understand what competition is doing in terms of product delivery, service principles, or even advertising in order to create a unique market positioning strategy. Without knowledge of what competition is performing in the industry, it will be impossible to innovate to make differentiated products
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Enterprise and Entrepreneurial Management Introduction It is often said that the success of most ventures is the result of a proper planning. It is true in the case of a successful business venture as well. In the case of a successful enterprise, a good Business Plan is the primary step.
The paper shall attempt to establish the key entrepreneurial characteristics that are necessary for such enterprise to succeed, with the view of drawing up a list that can be “adoptable” by any entrepreneur. As a matter of reflection, the characteristics shall be tested for their suitability against this writer’s own personal attributes.
In fact, the act of planning in itself is an exercise of foresight and exemplifies the planner’s recognition of the uncertain future and inevitable change. In business, this procedure with its significant incorporation of time is referred to as the business planning process.
This article critically analyses the steps involved in a business plan. Each stage of the Business Plan is critically examined in terms of what should be included in each step. Also, the contribution of each step to the overall plan is dealt in extended detail. The intention of the assignment is to develop a clear understanding and framework of the requirements for setting up and operating a successful business.
The sole trader is the most viable business structure as it eliminates the risk of partnership liabilities and provides more operational controls to the sole trader. Yankee Clippers will procure financing through traditional banking and lending facilities to ensure successful start-up management and subsequent launch of this new, inspirational brand.
Business plans earlier considered a corporate exercise, but currently they consist of the core financial support and staff recruitment. Competent business plans give an exclusive explanation on the how the business operates and mainly used in investor attraction.
100,000, which will be supported by talent experts that perform excellence in service through flair and food juggling presentations. The breakeven point for this business is quite moderate, at only 810 customers per month, which is achievable since the business at start-up will be operating three mobile food carts.
cash outflows and inflows, projection of the sales demand. Apart from that, the business plan is also critically evaluated using academic textbooks and journals to check the viability of the plan. The critical evaluation also involves analysis of the various assumptions made while preparing the business plan (Garnier and Gasse, 2011).
I have taken an account to include and discuss all the positive and negative aspects, prospects and threats too, which was helpful in determining SWOT matrix. After analyzing the matrix and Quantitative strategic Planning; strategic plans