An Overview of Entrepreneurship at The Cambridge Satchels Company - Case Study Example

? Entrepreneurship Due Introduction Entrepreneurship de s the professional application of skills, knowledge, and competencies or of monetizing an innovative idea, by an individual or a group of people by establishing an enterprise or differentiating from an existing one, in order to achieve growth, alongside creating wealth, employment and social benefit. Entrepreneurship is derived from the French ‘entrepreneur’ that factually means, ‘to undertake’. Entrepreneurs are characterized as risk takers, ready to roll the dice using their finances or reputation in support of a new idea or enterprise. They naturally assume responsibility for the venture’s success or failure and are accountable for all its aspects (Gedeon, 2010). According to the task outline, the objective of this assignment is to develop an understanding of the experiences, motivation, and lessons acquired by individuals who have created successful enterprises. Consequently, this paper has focused on The Cambridge Satchel Company as a demonstration to help us understand to various dimensions that entrepreneurs face although till they create successful businesses. As such, the paper will analyse an interview conducted on the company’s co-founder Julie Deane (Faulkner, 2012). Julie Deane, Co-Founder, the Cambridge Satchel Company According to McGowan et al. (2012) entrepreneurs are always motivated by the desire to take control of their lives and self confidence in their abilities to run a business (McGowan, Redeker, Cooper, & Greenan, 2012). Similarly, the idea behind the creation of The Cambridge Satchel Company started from the need of Deane to transfer her eight years daughter from a school where she was being bullied. As such Deane was faced with a situation that required more income/money. This made Deane to come up with many business ideas only to settle at an idea that involved the making of traditional leather satchels. Her target market was the school going children who were crazy about the Harry Potter kind of bag. Consequently, in 2007, with a saving of six hundred euros Deane set her business (Eccles, 2012). The first consignments were classical chestnut coloured bags, in addition to black and dark brown colours because these colours were readily available. This is a classical support of the need for entrepreneurs need to set their goals and objectives. Moreover, this business is a sole-proprietorship kind; as such the company had its share of hardships in borrowing. Another, back draw in this business form is it weak growth rate due to limited capital and exposure (staff, 2010).However, another important characteristics for any successful entrepreneurs is high risk tolerance, a feature that has enabled Deanne to be successful in her business, to date (Shah, Smith , & Reedy, 2011). The Cambridge Satchel Company initial operations were at home. Deane confesses that as a start-up business she was only able to sell one to three bags in a week. However, through her own advertising initiatives, she started distributing leaflets in the neighbourhood and in offices and clinics. In addition, the fact that Cambridge boasts of being a career town and hold a lot of traditions, many people were able to identify with the Satchels. This factor greatly helped in the growth of the Satchel demand. More so, Deane was able to make a name through fashion houses and celebrities many of whom fell for them. To make more sales she started producing the bags in more different colours so that they could match the requirements and demands of the customer. Though this, Deane has demonstrated very good entrepreneurship skills. For example, she has demonstrated the importance of relating with the customer’s needs. In addition Deane confessed that even if the demand grew she has never compromised on the quality. From the interview, Deane admits that another success factor for her business is innovativeness and creativity. Notably, in diversifying her product, she realized the importance of creating bags that would match the modern day needs. As such, she expanded her brand to cover four major sizes hence capitalizing on the many uses that the bags re being demanded for. The eleven and the thirteen inches size are preserved for handbags. The fourteen and the fifteen inch size are for iPad, school bags or professional’s bags. Through this strategy Deane has been able to increase her market niche very creatively. Moreover, Deane has also allowed customers to personalize their bags through embossing (De Rose, 2013). Further, Deane’s success in the bag industry is also linked to her insightfulness, whereby she has an affinity for opportunities where others cannot identify them. For instance, Deane has been able to diversify her business from one that was set to make school bags to a fashion item. This diversification has seen the company collaborating with other fashion designers and brands. For example, in the recent years The Cambridge Satchel Company has collaborated with Basso and Brooke, Comme des Garcons and Dr. Martens for the London Fashion Week. Moreover, the inclusion of different colours and sizes for the bag is brand diversity. The aspect of diversity is very helpful especially if it is carefully implemented (Corporation T. C., 2013). Makhbul (2008) states that another essential feature that contributes to prosperous entrepreneurship is knowledge that is acquired from different sources including professional training and/or personal experience (Makhbul 2011). Indeed, being well-informed helps an entrepreneur to be innovative and generate new ideas, thus enabling the entrepreneur to identify and utilize opportunities inherent within their environment. Markedly, as the business grew, Deane taught herself how to create a website and through the website she has been able to expand her customer base. In fact it is through the website that she was able to increase her sales as well as get new business approach ideas. The web page allows for interaction with her customers and also posts are made to praise or criticize the products offered. This is a very good strategy since it allows the customer to raise their view hence keeping the business on its toes. In essence, communication is a very key element for any business. It is through communication that the entrepreneur will learn the needs of the customers, and also build good work relationship with the staff (Nair & Pandey 2006). Any business has its own risks; the kind of risks will greatly differ with the product being sold as well as the nature of the business. For the case of The Cambridge Satchels, there were various risks that the entrepreneur faced. As an example, there were risks associated with diversity, and growth. Being a start-up business, Deane confesses that the business grew too fast such that she had little or no time to think about incorporating new ideas in her brand. In most cases, she was only responding to the demands of her customers (Entrepreneurs, 2012). However, Deane was able to negotiate around such risks because her business was more of a customer dictated rather than owner driven i.e. it is what the customers want rather than what is provided for them. This business largely depended on customers’ orders which can with certain specifications. In fact, Deane is quoted saying that her customers are always aware of the brand and the business ethical approach as such they by her brand and will always return for more (Pitts, 2012). The Cambridge Satchels Company is an entrepreneurship that is growing at a very rapid rate. In the past four years since its creation it has come to create a space for itself. In addition it has been able to attract a customer base that relates to its brand ( Adams, 2013). As such, Cambridge Satchels has been able to open two stores, one in Selfridges and the other in Bloomingdale. Moreover, the company has opened stores in the United States and in Sothern Korea. This saw it profit rise by more than 350% in the financial year 2011-2012. According to its founder, Deane, the business is planning to expand to other major cities in the next five years. This is an indication that the business has laid out its strategic plans another very vital element that promising enterprises should put into consideration ( Park, 2010). Conclusion The Cambridge Satchels Company has therefore provided us with a good platform to acknowledge to importance of entrepreneurship skills. Certainly, this model business provides some understanding into those traits or inborn qualities or characteristics, associated successful entrepreneurs. The characteristics displayed by Julie Deanne provide an understanding of these traits or inborn potentials. Accordingly, some of the entrepreneurial characteristics or behaviours exhibited by Julie Deanne include being opportunity driven, high levels of creativity and innovation, excellent leadership and management skills, and acuity in business expertise. Furthermore, Deanne’s interview revealed that entrepreneurs are optimistic, emotionally resilient and hardworking; exhibit high levels of commitment and perseverance, and thrive on the competitive need to excel and win. This is reiterated by Simpeh (2011) who mention that entrepreneurs are never content with the status quo and seek improvement; are transformational and visionary in nature, and tend to use failure as a tool and springboard (Simpeh, 2011). Besides, entrepreneurs also exhibit a great willingness to take risks a strong desire for achievement, and a great tolerance for ambiguity. Additionally, this interview also proves that any entrepreneur is obligated to incorporate the theoretical study in his or her business if they want to create successful businesses. These traits are very important because they will help the entrepreneur to have a good understanding of basic operations of the business itself. In addition, these skills will, help the entrepreneur to solve problems if they emerge. In fact, the skills are very important to the management because they are able to foresee negative impacts on their businesses and avoid them. Lastly, planning is a very important trait that any business should apply so that every action that is taken can be accounted for. More so, planning will help the business to evaluate its objects and goals (Institute, 2012). Businesses are required to outline their strategic plan as it will give its stakeholders what their aims and goals are. Bibliography Adams, G.-K. (2013). The co-founder of the Natwest Startups Business of the Year 2011 shares the secrets of her company’s success. Startups. Gellman, D. (2013). Forecasting and Risks. Technology Executives Club. Park, A. (2010). Making Diversity a Business Advantage. Allston, MA: Harvard Business School. Pitts, B. (2012). Julie Deane, Founder, The Cambridge Satchel Company & Star of the New Google Chrome Advert. The Next Woman Business Magazine. Corporation, S. B. (2012). Financial Forecast. Small Business Development Corporation. Corporation, T. C. (2013). Business Case for Diversity. Chubb Croup of Insurance Companies. De Rose, J. (2013). Interview with: julie Deane of the Cambridge satchel Company. Fashion Salade. Eccles, l. (2012). Mum who couldn't afford daughter's school fees makes ?12million a year selling satchels. Mail Online. Entrepreneurs, W. (2012). Julie Deane, Founder of The Cambridge Satchel Company. Women Entrepreneurs. Faulkner, R. (2012). Q&A: Julie Deane, founder, Cambridge Satchel Company. The Fashion Business Drapers. Gedeon, S. (2010). What Is Enterpreneurship? ENT Practice Review in Entrepreneurship Vol 1, Issue 3, 1-24. Institute, B. S. (2012). The Basics of Strategic Planning and Strategic Management. Balanced Scorecard Institute. Makhbul, Z. (2011). Entrepreneurial Success: An Exploratory Study among Entrepreneurs. International Journal of Business and Management Vol. 6, No. 1, 116-125. McGowan, P., Redeker, C. L., Cooper, S. Y., & Greenan, K. (2012). Female entrepreneurship and the management of business and domestic roles: Motivations, expectations and realities. Entrepreneurship & Regional Development: An International Journal Volume 24, Issue 1-2, 53-72. Naidu, Y. (2013). Presenting 101: Is there an elephant in the room? LeadingCompany. Nair, K., & Pandey, A. (2006). Characteristics of Entrepreneurs: An Empirical Analysis. Journal of Entrepreneurship vol. 15 no. 1, 47-61. offtoseemylawyer.com. (2010). Clubbing for Entrepreneurs. Retrieved Feb 12, 2013, from offtoseemylawyer.com: http://offtoseemylawyer.com/female-entrepreneur/female-entrepreneur-focus-julie-deane/ Shah, S., Smith , S., & Reedy, E. (2011). Who Are User Entrepreneurs? Findings on Innovation, Founder Characteristics & Firm Characteristics. Kauffman Foundation Report. Simpeh, K. (2011). Entrepreneurship theories and Empirical research: A Summary Review of the Literature. European Journal of Business and Management Vol 3, No.6,, 1-8. Smallbone, D. (2010). The Theory and Practice of Entrepreneurship: Frontiers in European Entrepreneurship Research. Northampton, MA: Edward Elgar Pub. staff, I. (2010). How to Start a Sole Proprietorship. Retrieved Feb 12, 2013, from Inc.: http://www.inc.com/guides/2010/10/how-to-start-a-sole-proprietorship.html Facebook recordings with Julie Deane, Co-Founder of, The Cambridge Satchel Company Q. Bulling really? Yes, bulling was the inspiration behind this business. This is what every paper would do if they are in such a situation. Q. Have you on any occasion imagined yourself for greatness? I am not any great any anybody can achieve from any business; it is all about the passion for what you are doing. Q. How were you able to turn an outdated school bag to its current status and with all the fame? First, the ancient bag just gave the basic idea consequently; these basics were substituted to suit the modern day life. In general, I gave these bags color. Moreover, there is that class of people who are still in love with their traditions and this is what makes his bag unique. Q. Do you have any advice for those who have deep aspirations to become successful entrepreneurs but are downplayed by lack of capital? Capital should never be an issue for example I only started with 600 euros. In addition I have never borrowed all I do is plan and fit in my budget. Q. What makes your business stand tall even in the presence of imitations? This organization is founded on very strong ethics; in addition every bag is hand woven and customized hence our clients have loyalty in our products. They keep coming back for more. Q. Final word? Entrepreneurship is all about passion, hard work and desire, huge profits are just the rewards for them. Therefore, it is important that any entrepreneur is not only focused on big returns but on the service or product they are offering their clients. Feedback comments Planning & Research A successful interview requires that the interviewer makes adequate planning and that they be flexible to suit the timetable of the person they intend to interview. More so, they should be able to limit and/or narrow their question in such a manner that the interview will fit in the time allowed for the interview without narrowing on its content. Further, it is upon the interviewer to propose the preferred place of the interview hence there should be adequate planning of such a venue. Likewise, the person conducting an interview should have done some background research about the organization they want to seek information about from the interview. This not only makes the interview lively, but it also assures the interviewee that the interviewer has adequate knowledge about the topic hence limiting the chances of over exaggerating their disclosure. Detailed definitions and planning of research In this stage, the interviewer is encouraged to search for definitions of terms common in the field they are about to research on. In fact, for a research to be conclusive, proper planning should be made for both pre and post interview stages. This will ensure that there is consistency in the various steps required to finish the research. Lastly, planning helps the researcher to fit in a timetable because they have a well laid guideline. Quality of analysis This involves reviewing the data obtained from the research sources. For example, in this research quality analysis involved the evaluation of the response answers from the interview questions. Further, other journal articles were evaluated for their validity and relevance by the time of writing the interview findings. Another tool used for quality analysis in this interview was through observation. I clearly listened for hesitations, raise of voice, and uncertainty among other characteristics that helped me to evaluate the response given by this entrepreneur. Presentation In this interview I widely researched from articles, journals, and textbooks. This was for the main purpose of understanding entrepreneurial skills and the business being interviewed in depth. As such, the report has been well reference and a bibliography set for the same purpose. This was very useful to eliminate the notion that the research was purely original and that it did not borrow from other classes on the same category. Findings This research having relied on interview as its basic tool has been structured to follow a question and answer formula. Hence, questions had been planned and structured to have a flow and this enable me to have consistency when reporting n the key findings of the research. In addition, I have been able to match my key findings with those of previously conducted researches on the same and this has been adequately referenced. Conclusions Recommendations The conclusions of this research were derived from the conducted interview. However, it also relied from other outside sources such as previously conducted researches on entrepreneurship. As has been said earlier, this research was not restricted on the interview conducted but it heavily borrowed from researches in the same category. In fact I proved to agree with most of such reports and researches. Again adequate referencing was done and a bibliography equally availed. Read More