Entrepreneur Innovation - Assignment Example

Answer Kurt Bauer is a better entrepreneur as compared to Roxanne Quimey, since the decision for adopting the chosen field of online magazine publication work has not be a sudden brainwave, which needed to be put into action, but was the result of deliberate thinking, analysis and thorough prior research conducted on the this field before arriving at this decision. He is a person who is able to recognize business opportunities when it comes and has quite some experience while working in erstwhile Soviet Union. (Refer attachment sent on Kurt Bauer). He has closely followed the business developments in Eastern Europe and this has set him well in the course towards achieving his goals and objectives in this line of business. He could be credited as having created several entrepreneurial models and, after careful research and analysis, and also after considering the cost of the proposed investments, its pay-back time and duration and other financial considerations, arrived at his decision. He opines that, as of now, there is ample scope for Online Magazines dealing primarily with the information needs of foreign businessmen who wish to invest in businesses in Warsaw. (Refer attachment sent on Kurt Bauer). Post breaking of the German wall, this market has opened up tremendously, and, although, behind the US market, it is a promising and lucrative one. Service industries in this part of the Globe are lucrative because they have low gestational periods, are quick on profits and one could always know which way the business was heading, and thus take corrective measures, if things needed to be worked on. Besides being technically savvy, he has also display a keen and innovative mind, ever willing to accept and implement new ideas if found entrepreneurially viable. This, based on the above traits, it could be safety concluded that Kurt Bauer has display keener and better entrepreneurial sense than Roxanne Quimey. Answer 2: Online Financial Services offers better opportunities, because it is currently more in demand. The problem about Newland Medical Technology is that the ESWL machines each cost $500,000 to $ 1.5 Million which is a very heavy investments for small or medium size Company. (Refer attachment on Newland Medical Technologies) Besides this being a new innovation, many surgeons would not take the risk of a new procedure on patients, until and unless, this surgical method receives the consensus of the Governing body or peer approval. Although, prima facie, this method has a distinct advantage of being able to dissolve even tiny stones, which conventional interventions do not, yet it could be used only after due recognition by the Medical Body. This is investment intensive, has many competitors who are already firmly entrenched in the market, and also has limited applications among urologists. Unless there is a very strong support for the product of Newland Medical Technology, whose products have not yet been tested, over conventional therapy and procedures, it would not be in use. Coming to Online Financial Services it is one of the fastest growing sectors, not only in the US Markets, but also on global levels. Further, the initial investment costs are not high, and could be recouped even within the first few years of operation ability. In the years to come, financial markets are going to expand exponentially across the globe with shrinking space barriers and global interconnectivity. The concept of a global village, as envisaged by business leaders will soon become a reality, with the online financial services, doing most of international businesses. The growth of the internet has spawned nearly all sectors, but the most benefited has been the financial sectors, since the very economy of the world is heavily dependent upon the success of its financial segments. Thus, from the point of entrepreneurial perspective, Online Financial Services is a safer and better bet. Q 3: If I had to choose between a franchisee of Mike Bellobuoro, and one of Quick Lube, I would definitely prefer the former, that is, Mike Bellobuoro. The bakery industry, especially relating to bagel is in the high growth area, and there is ample scope for even better growth in the years to come. (Refer attachment on Mike Bellobuoro) With the food industry being set for further developments, in the years to come, it is seen that there would be definitely more scope for sale of bakery products. Moreover, there is an aspect of paying royalties based on sales, in the case of Quick Lube, which may not be present, in the case of Mike Bellobuoro. The aspect of franchisee, also helps in developing the local geographical markets, which otherwise, would result in a larger market share to competitors. Thus instead of concentrating in a particular brand or area of operational jurisdiction, franchisee , especially of day to day products like bakery items, would be more profitable to the franchisees rather than taking franchisee of Quick Lube, which, in the long run, may not be as lucrative and rewarding. Under the franchisee system, there are elements of maintaining the high standards, set by the franchisor, and the need to produce sales consistently, without which the agreement may be voided, but, considering the heavy demand for bakery products in the area, it is believed that this franchisee would be profitable, both for the franchisor and the franchisee. Therefore, taking into consideration, the fact that bakery products and its marketing offers better scope for franchisees, it is considered above par of Quick Lube and is a preferred franchisee destination. Q.4 David Scott is in charge of the manufacturing process of the Company. He is more concerned about the smooth production flow and fewer disruptions and stoppages of work. He needs to become more productively consistent, supportive of the work force reporting to him and more aware of the financial aspects of business. However, the fact that he has only experience in this field would place him in a distinct disadvantage, when seeking new opportunities. By not having interacted with banks, he is not in a position to garner their favor, and therefore, would not be a strong contender for buying the Company, since the Banks would not be able to extend him credit facilities in the event of his buying the Company from Jack Peterson. (Refer attachment on Midwest Lighting) However, Jack Peterson is the sales manager, and is well versed with the marketability of the Company’s products and has excellent rapport with the customers, clients and most importantly, the banks who have promised to support him with the advancement of funds at 100% of cash assets and 75% of debtors. The Interest rate would be at 7% lending rate, that is, 1% over the Prime lending rate. (Refer attachment on Midwest Lighting) Since Jack is in a position to independently take charge of the business, even without the help of his partner, David Scott, and he has the necessary personal assets to pledge, it is widely believed that he would be a strong contender for purchase of the Company from his partner, David Scott After examination and evaluation of all factors concerning this case, it is the writer’s considered opinion that Jack Peterson would be the ultimate choice and his taking over would add value to the Company, given the fact that he would be able to charge of the Company independently and run it in a smooth and profitable manner. Q.5. (A) The four shortcomings of Paul’s case are as follows: 1. He believes that it is necessary to be a good thinker and strategist in order to be a good entrepreneur. 2. Inventors make the best entrepreneurs. 3. Entrepreneurs should be able to find new approaches to doing things. 4. Entrepreneurs need to be very lucky to succeed. 1. It is important for entrepreneurs to be good doers rather than a good thinker. Thinking is one aspect, but a more significant aspect is to execute one’s plans and policies into actions, and that is what one needs to do better, in order to be a good entrepreneur. Success is created by one’s actions since it is often more difficult to implement ideas than to germinate them. “There is enough information available in virtually every field for you to become knowledgeable enough to achieve success. But action is necessary.” (Kotelnikov and Tracy) 2. An entrepreneur must not only be able to invent but should have the creativity to translate inventions into useful products and services. Moreover, it is also necessary that inventions are necessary for the society, and could either be a replacement of existing models, or a new model by itself. It is also necessary that the inventions are accepted by the persons for whom it is intended, and should not serve only showcase value. 3. Entrepreneurs should be able to find new methods of doing things, and, at the same time should try to find out the shortcomings in the earlier methods, and devise ways and means by which these shortcomings could be reduced or eliminated. While it is necessary that new methods need to be found, or innovative techniques implemented, the innovative ideas should seek to complement the previous methods, not replace it, unless absolutely necessary. It needs to be reasoned that innovations should seek to provide better technology, which should be beneficial, in terms of costs, lifespan utility values and dependability. Luck, in the case of entrepreneurs, is when preparation and opportunities meet and therefore, it is necessary to make or build one’s own slice of luck. All things considered, the luckiest man is one, who has prepared well for harnessing the entrepreneurship skills into his active lifestyle and also practices entrepreneurship well. (B) The other factors that determine entrepreneurial success are: The willingness to learn and relearn skills and unlearn wrong skills Ability to take calculated risks for self awareness and goal attainment Effectively manage money, men, merchandize and movements Ability to persevere despite overwhelming barriers and obstacles Focused on one’s aims and objectives Relate oneself with people, and practicing good human relations under any circumstance Ability to receive mass appeal and support for one’s cause. The willingness to learn and relearn skills and unlearn wrong skills is very much necessary for any entrepreneur, especially at the initial stages. It is necessary to know the problem before determining its solutions.” Entrepreneurship is the art of finding profitable solutions to problems. Every successful entrepreneur, every successful businessperson has been a person who has been able to identify a problem and come up with a solution to it before somebody else did.” (Kotelnikov and Tracy). Unless one takes calculated risks, it is difficult to been a successful entrepreneur since risk is inherent in this field. All successful creative products and processes are the result of risk taking at one point of time and the results paying off.” To move forward one step at a time, learning and growing as you go” Entrepreneurial Success: Creating the right fit (2006) It is of vital necessity to be able to manage money, men, merchandize and movements effectively in order to achieve remarkable success in entrepreneurship skill building. Since all these factors are limited, discretionary actions need to be exercised in its use The ability to persevere towards success despite overwhelming barriers and obstacles is intrinsic in any effort, and this is more pronounced in the matter of entrepreneurial skill development. Once the goals are determined it is only a matter of time and patience before they are engaged and therefore, temporary setbacks should not deter one from the main course.” Entrepreneurs should understand this upfront and not get flustered when market acceptance comes slowly.” (Kotelnikov and Kawasaki). Bibliography Kotelnikov, Vadim & Kawasaki, Guy. Entrepreneurial Success: Creating the right fit. [online]. Entrepreneur: Venture Management. Last accessed 12 November 2007 at: http://www.1000ventures.com/business_guide/crosscuttings/entrepreneurial_success.html Kotelnikov, Vadim & Tracy, Brian. Entrepreneurial Success: Creating the right fit. Five Rules for Business Start-Ups. [online]. Entrepreneur: Venture Management. Last accessed 12 November 2007 at: http://www.1000ventures.com/business_guide/crosscuttings/entrepreneurial_success.html Refer attachment sent on Kurt Bauer. Accessed on 12 November, 2007. Refer attachment on Newland Medical Technologies. Accessed on 12 November, 2007. Refer attachment on Mike Bellobuoro. Accessed on 12 November, 2007. Refer attachment on Midwest Lighting accessed on 12 November, 2007. Read More