Advanced Entrepreneurship - Essay Example

?Advanced Entrepreneurship This paper is aimed at explaining the Triangle Solutions, an American computer and mobile phone producing company’s product types, the nature of its industry, the size of the market, requirements of proper and effective team and management, its product’s scalability and the financial structure of the company. It is also aimed at providing the strategy of the company Triangle Solutions to get ideas implemented internally or at describing the reasons why a product idea should be spun off into a new subsidiary company owned by a business organisation. This paper finally describes most suitable ownership types for small businesses, like retail electronics, software developer, and advertising. Assignment 1: Triangle Solutions is one of the most reputated computer producing companies in the world. It is an American company, headquartered at New York. It sells different types of computers, from desktops to laptops and palmtops. These products have large national and international markets and the products have significant reputation in these markets. The industry and market size: In modern times the industry of computers are highly competitive as numerous companies are producing and manufacturing computer products. Desktops, laptops, palmtops, and mobile computers are highly demanding and the industries for these products are experiencing rapid growth. This industry produces computers, computer related products like printers, home electronic and communication equipments. Triangle Solutions produce these products for commercial as well as military purposes. Triangle Solutions also sells disk drives, wireless telephones, consumer electronics for commercial purposes in the industry and “smart” bombs, electronic navigation equipment for military purposes. But recently the company has launched a new product, a mobile phone that has the features of both computers and phone, but has triple sim card facilities and has expandable memory and a super-specialty 6 mega-pixel camera. This product will attract the modern generation as well as it will facilitate professional mobile users. The market for this product is large, not only domestically, but also internationally. The company is expecting to acquire atleast 40% of the global market for mobile and computer products by the end of 2014 with the introduction of this new product. The company is expecting that the product will reduce the effort of mobile users to use Internet facilities on their mobile phones and also the facility provided by the product of Triangle Solutions in terms of using three different phone numbers in a single phone that has so many additional facilities will attract large number of mobile phone users across the world (Computer and Electronic Product Manufacturing, n.d., pp. 53-54). Team requirements: To introduce the new product in the market the company has employed large and efficient team of people which are not only experts in developing the technologies and softwares which are needed for the making of this new product, but also the company employed best people for marketing and sales of the product. The company has also employed analytical team-members for the purpose of business analysis and market analysis of the new product. The team that has been employed for the purpose of the business development of the product is highly experienced and they have put lot of effort in developing the market for the new product and also for increasing the market size of the product. The company has employed best engineers from all over the world from best engineering schools of the world to build up the new technology for the product and different trial uses of the new mobile phone has resulted in highly satisfactory comments from different consumers of that trial uses. The trial use strategy has been a remarkable marketing strategy that has been applied in selected shopping mall in New York. People have been allowed to use the product and comment on the advantages and disadvantages of using the product. This marketing strategy has been an innovative strategy to develop the technology as well as popularity in favor of the product (Parsons and Oja, 2011, pp. 606-609). Scalability of the product: The new mobile phone introduced by Triangle Solutions is highly scalable in the sense that the product is able to manage increasing amount of work and the product is able to enlarge the growth of the work which is to be done with the help of the product. The product is designed in such a way that it can handle multiple tasks at the same time, such as Internet surfing, talking through multiple numbers (as the phone supports multiple sim cards). The phone has longer battery life than the previous products of the company. The product is also scalable in business settings. The difference between the revenue and the variable cost of producing the product does not change with increasing users of the technology or the phone. The product has been designed in such a way that no more additional equipment will be needed for the better performance of the product and the technology used in it, even after it has been used for many years by many users. This multiple users and multiple years of use of the product will not induce any change in the cost of production of the product (Hwang, 2003, pp. 143-145). Financial explanations of the product: The company has spent lot of money in producing the producing the technology which has been used in the mobile phone. The company has invested almost $500 million in research and development for building up the technology that has been used in the phone. It took almost $160 to make each phone and $8 has been invested in manufacturing the product. Hence, in aggregate $168 has been spent in making one mobile phone. This has been the lowest cost estimate of producing a mobile phone that has varieties of features in it. The company has decided to sell each mobile phone at $210 for the first year of manufacturing. After that the company might go for price hike in view of the market and business analysis of the product. The company is expecting to sell atleast 1million phones within a year in domestic and international market. Hence, the company is expecting to get annual sales revenue of $210 million. The company is expecting a profit of $42 million after one year (Rassweiler, 2009, p. 1). References 1. Computer and Electronic Product Manufacturing (n.d.), NAICS, retrieved on January 17, 2012 from http://www.collegecareerlifeplanning.com/Documents/4%20Career%20Planning/i%20OOH%20Industry%20Summaries/Computer%20&%20Electronic%20Products.pdf 2. Hwang (2003), Advanced Computer Architecture, USA: Tata McGraw-Hill Education 3. Parsons, J. J. and Oja, D. (2011), New Perspectives on Computer Concepts 2012: Comprehensive, USA: Cengage Learning 4. Rassweiler, A. (2009), iPhone 3G S Carries $178.96 BOM and Manufacturing Cost, iSuppli Teardown Reveals, iSuppli, retrieved on January 17, 2012 from http://www.isuppli.com/Teardowns/News/Pages/iPhone-3G-S-Carries-178-96-BOM-and-Manufacturing-Cost-iSuppli-Teardown-Reveals.aspx Assignment 2: A business organisation employed a strategy of spinning off its product idea into a new subsidiary company owned by this business organisation. This subsidiary company is the leading computer technology producing company in the country. With this collaboration the main company is expecting to use more advanced technologies for its new product in future. In this regard the concept of intrapreneurship has been used by the company to provide direct responsibilities to the selected people working in the company to help them delivering useful and effective ideas in favor of the product development and sales and marketing. These selected people are not directly related to the risk-taking and innovative developments of the company, but are indirectly related. If their ideas and innovations fail, then they will have to indirectly bear the burden of that failure (Pinchot, 2009, p. 15). Sole proprietor is the best form of ownership or the business like retail electronics. This type of ownership helps small businesses to use different ideas in a simple and inexpensive management and business style. The small size of the business helps the owner to understand the nature and properties of the business and to retain the entire profit acquired from the business in his account. Hence, the owner of the small business gets encouraged to put larger efforts to earn maximum profits and to retain the entire profit. In the software development business the ownership style that is more suitable is corporations which provide the business more ideas and technological assistance in developing the business and softwares used. In the software development business various new ideas and innovations and various management ideas are needed, because this is highly competitive industry in modern times. That is why corporative structure of ownership is the most suitable for this business. Advertising is a kind of business where sole proprietorship or small sized partnership would be perfect ownership structure, because the business requires quick and simple decision taking management and business experts to run advertizing business. With large size of management and decision-making people, the pace of the decision making and hence large profit earning can be hampered. That is why for advertising businesses sole ownership or partnership with two or three highly coordinated partners would be suitable (Which Legal Form Is Best for Your Business?, 2000, p. 1). References 1. Pinchot, G. (2009), Intrapreneuring: Why you don't have to leave the corporation to become an entrepreneur, SSRN, retrieved on January 17, 2012 from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1496196 2. Which Legal Form Is Best for Your Business? (2000), Inc., retrieved on January 17, 2012 from http://www.inc.com/articles/2000/06/19438.html Read More