Business Creation and Growth - Coursework Example

Business creation and growth Contents Contents 2 3 Introduction 3 Literature review 4 Methodology 6 Results 7 Discussion 7 Conclusion 10 Recommendations 10 References 11 Abstract Sim venture is a process and the model that is introduced and developed for assisting the entrepreneur in starting up the business and conducting of the market research. It covers various areas which include the operation, human resources, operation, finance, marketing and organization. The process and the application of Sim venture are very simple and easy to implement as well as manipulate. Therefore it is required to be applied tactically for various purposes. The Sim venture game has been introduced with the purpose of allowing the user to run the enterprise for the period of maximum 3 years. Sim venture game assists the entrepreneur in successfully expanding its business. Sim venture performs the role or the function of a business adviser in which it allows the entrepreneur to carry out its business successfully and enhance his knowledge as well as decision making skills. Introduction Sim venture is a very well known business simulation game that is introduced and developed for assisting and supporting the entrepreneur for the growth and expansion of the business. This game has been introduced for developing the entrepreneurial skill. It provides an opportunity to the entrepreneur in facing the complex business environment and competing with the demands in the market. The various areas of the business that is associated with sales and marketing, finance, organization and operation has its implication in the business programme. It benefits the entrepreneur by assisting them to make appropriate research related to market, competitors and customers and then adopting necessary steps for implementation of its plan in the business. Sim venture can be easily installed in various locations for imparting teaching to the individuals. It facilitates the entrepreneur in taking decision in the authentic environment. The users of the Sim venture are able to provide solution of various problems quickly and instantly by analyzing the information and making various decisions and handling various consequences. Sim venture is required to be applied for starting up the business since it assist the entrepreneur in making necessary research and taking adequate decision related to the business. The aim or the objective of the research is the application of the sim venture in the business and its contribution towards the growth and development of the business. The research question is based on whether sim venture serves the purpose of the entrepreneur in starting up the business. Literature review The authors Bratley, Fox and Schrage, in their paper have focused on the importance of the sim venture. He has emphasized on the simulated environment where the individual is able to apply its skill and knowledge in developing the understanding related to the growth and expansion of the business. Sim venture assist in creation of the business plan that is required to be implemented and also learning about the strength, weakness, threat and opportunities of the competitors that exist in the market. Sim venture is considered as a sophisticated game that facilitates the student in understanding the complexity of the business. The author has applied the Sim Venture which is very important in the learning process of the students or the enterprise. The importance of the business game can be explained as the benefits that are related to the decision making process of the entrepreneurship. Sim venture is used in the business for the purpose of development and expansion of the business plan. Sim venture is also applied for overcoming the challenges that are related to the sales and order for building and developing of the successful business or enterprises (Bratley, Fox and Schrage, 2007). The writers Burnett, Senker and Walker, in their article have focused on the benefits of the Sim venture in the growth and expansion of the business. Sim venture is very versatile in the changing environment. Sim venture mainly facilitates the entrepreneurs in discovering various decisions that is required for dealing with the consequences and developing the business without any financial loss. The writer has also explained the fact that Sim Venture can be applied and tailored in every possible situation and circumstances. The writer has also focused on the fact that it is capable of covering various aspects of business that is associated with the field of marketing, finance, sales, human resource and marketing. In case of the sale and marketing the programme covers all related aspects which include the competitor research, promotional tools and technique, customer research and selling point. Therefore Sim venture can be considered as an effective game that is suitable and preferable for marketing (Burnett, Senker and Walker, 2009). The researcher Cullen and Parboteeah, in contrast to the above writers and authors have focused on the disadvantages or the limitations in the application of the game that it may sometime provide wrong result since the programming are based on the concept and the steps in which the theories work and thus it sometimes provide incorrect or false result and the other problem that is associated with the application of the technique of simulation is that it is not able to provide appropriate and correct result in the practical scenario since the game is based on the programme which is developed on the basis of certain assumption of facts and estimates therefore Sim venture cannot be readily applied by the entrepreneur in all business under various situations and circumstances (Cullen and Parboteeah, 2009). The researcher Daniels, have emphasized on the sustainability aspect or parameters of Sim Venture since the game that is developed increases the market share, assist in developing the relationship with the suppliers , expansion and widening of the market, developing the strategy on the laptops and the notebooks. The in-depth functionality that is provided facilitates the user of the Sim venture in overcoming the barriers and the challenges (Daniels, 2002). Methodology The research methodology is considered as an important aspect in research and it is designed on the basis of the primary and the secondary research that is conducted. The source or the basis of the primary research mainly includes the questionnaire that is prepared on the basis of both open ended as well as close ended questions. The source of secondary research that is conducted for the study mainly includes the reference that is collected from various journals, magazines, articles, newspapers, internet etc. the statistical tools that is used for the project is random sampling technique and the data collection technique have been adopted (Das, 2012). The open ended questions that were being asked to the chief executive officer for understanding its customers mainly follow: 1 What do you need to know from your customers? 2 What are the prices that are charged by the competitors? 3 What channels are preferred by the customers? 4 How much time is required for designing the product? 5 What is the risk that is associated with it? The close ended questions that are being asked to the chief executive officer for analyzing the application of the sim venture for understanding the needs and requirement of the customers and the various factors that it is required to consider for starting and expanding its business operation are as follows:     Yes No 1 Do the customers require quick service?     2 Does research play a major role in starting the business?     3 Does marketing is required as an effective tool?     4 Does it include risk?     5 Does it cover all the features of the product?     The above open ended as well as the close ended questions were prepared for evaluating the importance of the application of sim venture by the management of the enterprise. The sample size of the research is 44 and the sampling technique is judgmental and convenience in nature (Edward and Bruno, 2007). Results The research methodology that is conducted is on the basis of both quantitative and qualitative aspect and the questionnaire that is prepared is on the basis of both open ended as well as close ended questions. It indicates that the facilities in the application of the latest software and the latest technology that have assisted in developing of awareness of the customers. The sim venture is the software that helps in the creation of the dynamic problem and it is required for exploring the issues or the problems that arises in the real business environment Discussion The sim venture covers various areas such as the operation, sales and marketing and organization aspect of the enterprise. For staring up the new enterprise it is required to appoint a Chief executive officer of the enterprise (Fill, 2006). Different executives or officials are to be appointed for holding the position or designation of the departments which includes operations, sales and marketing, organization and finance. In order to analyze the growth of the enterprise it is required to determine the product, state of business , target market, employees and also determining how the related activities are required to be performed( Fishwick, 2005). In the organization department the executive can use the programme sim venture for allocating the respective roles to its subordinates or the staff by selecting strategy for each employee according to the type of task that is to be performed in the month (Wetherly and Otter, 2014). The assignments are required to be assigned that includes designing which is a primary activity and other secondary activity which includes the recruitment, finance, training, sales, support, production, marketing and also other miscellaneous activities (Lester, and Smit, 2004). The target market that is selected for starting up the enterprise is the UK market. The increase in the gross domestic product will benefit the hardware and the software market. The decrease in the inflation is required to decrease the cost of production. The strategy that is designed is vital and important for starting up the enterprise (Montgomery, 2007). The financial perspective for the application of the sim venture is that it assess and evaluates the health of the business in various ways which includes various ratios such as the current ratio, asset turnover, return on capital employed and also gearing ratio (Phillips, 2011).   2014 2015 2016 Income       carried forward 66214 0 0 Sales 72350 62428 82500 Other income 62 65 78 Total income 72412 62493 82578 Cost       Material 52000 32520 57620 Wages 43250 23560 34230 Production 32500 24560 43250 Research 27250 32500 23620 Rent 32420 29820 32450 Training 27650 28725 43210 Finance 27650 24320 32500 Sales and marketing 32450 23240 34320 Miscellaneous 35420 25432 36520 Total cost 310590 244677 337720 The entrepreneur can apply the sim venture game for analyzing the financial perspective of the company through the preparation of the cash flow report and monitoring the cash that is generated into the business and the cash that flows out of the business. The income and the other related cost of the business are evaluated and calculated (Rosenberger and Nash, 2009). The application of sim venture in the field of marketing can be evaluated as it assist the Entrepreneur and the marketing executive that is appointed in the enterprise in determining the target segment, the selling point and various marketing promotional strategies that are required to be adopted (Smith, Smith and Bliss. 2011). The application of sim venture in the aspect of operation is related to designing of the product, undertaking the decision that is related to purchasing, production and quality. The main benefit or the advantages in the application of the theory is it is related to the game that facilitates in making a in-depth research of the various factors that affects the business and it facilitates the activities that are related to penetration and diversification in the market. Penetration is related to low risk strategy and diversification is related or associated with high risk strategy of the enterprise (Trainor, 2005). The limitations in the application of this game in the real business world are that it may provide wrong result since the programme is based on assumptions. Conclusion Sim venture is a programme that is designed in such a way that is sometimes different from game theories. The sim venture is normally less complex and difficult and therefore it can be implemented as well as manipulated very easily. Therefore a distinction is required to be performed between the game and the Sim venture in order to understand the concept and the importance of the sim venture in the modern business enterprise. Although it has limitations that it sometimes provides wrong results which is not favourable and cannot be relied on but the advantages or the benefit that it provides to the entrepreneur assist the entrepreneur in developing its entrepreneurial skill , starting up its business and also expanding its business or enterprise. Recommendations For the successfully implementing the sim venture the participants of the game are required to perform in a team that is related to the employees and they are expected to work in a team for the implementation of the plan and the application of the sim venture. The employees and the entrepreneur of the enterprise are required to analyze the data that is relevant to the development of the business skill of the entrepreneur. The problem associated with the program is that it provides error in its result since it is based on the assumption and therefore it is required to collect the data and make assumptions strategically for implementing the plan of action. References Bratley, P., Fox, B. L. and Schrage, L. E., 2007. A Guide to Simulation, Second Edition, New York: Springer-Verlag. Burnett, J., Senker, P. and Walker, K., 2009. The Myths of Technology: Innovation and Inequality. New York: Peter Lang, Cullen, J. and Parboteeah, K., 2009. International business: strategy and the multinational company. New York: Routledge. Daniels, P. (2002). Business start-up guide: A complete guide to establishing your business. New York: Venture Marketing. Das, T. K., 2012. Management dynamics in strategic alliances, New York: IAP. Edward J. and Bruno, M. M., 2007. The digital economy: business organization, production processes and regional developments. Canada: Routledge. Fill, C., 2006. Simply marketing communications. UK: FT Prentice Hall. Fishwick, P. A., 2005. Simulation model design and execution: Building digital worlds, London: Prentice-Hall. Lester, S.R. and Smit, J.K.,2004. Entrepreneurial Finance. New York: Wiley. Montgomery, D. C., 2007. Design and Analysis of Experiments, Third Edition, London: John Wiley. Phillips., 2011. E-Business Strategy. New Delhi: Tata McGraw-Hill Education. Rosenberger, L. E. and Nash, J., 2009. The deciding factor: the power of analytics to make every decision a winner. CA: John Wiley & Sons. Smith, J., Smith, R. and Bliss. R., 2011. Entrepreneurial Finance: Strategy, Valuation, and Deal Structure. London: Stanford University Press. Trainor, N., 2005. The Entrepreneurial journey: A handbook for building for your business. South Africa: Covenant Group. Wetherly, P. and Otter, D., 2014. The business environment: themes and issues in a globalizing world. Oxford: Oxford University Press. Read More