Principles of Entrepreneurship: of Orange Electronics Company - Case Study Example

Principles of Entrepreneurship Orange Electronics Company Introduction Orange Electronics is a private limited company dealing in the production, supply and distribution of electronic gadgets including computers, laptops, tablets, mobile phones and their accessories. In the bid to increase funding for the company, we are committed to influencing more financiers to join our company. This report is written to convince any potential shareholder to feel free to invest their resources into this company. Despite the few predicted uncertainties, they are all assured of highly projected returns in the form of dividends. The company is expected to put all the necessary measures to maximize profit and properly manage it. Marketing Research One of the first strategies employed by this organization will be conduct a market research before introducing any commodity into the market. Meaning, a team of professionals will be instituted and hired to help in studying the clients and ascertaining their perceptions, attitudes and preferences. This data will be relied upon by the top management to make all the necessary decisions on how to conquer the market (Deakins, D. & Freel, M., 2009). While doing all its activities, the organization will be committed to complying with its internal policies, mission and vision statement. At the same time, the organization will strictly follow the ethical and legal requirements of this line of business. Viability of the Business The business chosen is quite viable and will be of a good return to the investors. According to the market research conducted by the Sales and Marketing department, the market is so promising. It is expected that the resources invested in this business will be in a position of benefiting the investors. Therefore, I would like to appeal to you that if you become part of the organization’s shareholders, you will be assured of reaping good returns in terms of dividends and profit (Minniti, M. & Moren, L., 2010). As an organization, we understand that the primary objective should be profit making. Meaning, it will be futile to invest a lot of capital if we are sure that we will not get any returns. For this reason, we have put all the measures to ensure that no loss is recorded. Instead, every aspect of the investment will be of great benefits to the shareholders. This is what everyone needs because without it, nothing much can be achieved. All the existing and potential financiers must be sure of the benefits they will get from their investments. Management The business is run by highly qualified, experienced and motivated executive. In the company hierarchy, there exists the Board of Directors, Managing Director and the Chief Executive Officer. These are helped to execute their day to day operations by their respective assistants and departmental heads (Shane, S. & Nicolaou, N., 2013). Moreover, the organization is properly structured in compliance with the bureaucratic standards. This has helped in promoting accountability and coordination of the activities. The sub-division of the entire organization into departments makes it easier for the employees to do their job without many problems. This is a good idea which is believed to be good for the prosperity of the business. If all the employees feel motivated, they will be encouraged to continue doing their best for the sake of promoting the organization’s success (Knight, F. H., 2006). Thus, all the short and long term goals will be accomplished as planned. All the set objectives need to be achieved because the success of the business is wholly pegged on them. With a good management at the helm of the business, all the shareholders are assured that their investments will not be misappropriated, but properly managed in order to provide them with the expected returns. As a matter of fact, we understand that many people fear investing because of the perceived risks. However, in this organization, all the potential investors should feel free to join and be part of the financiers. There is no risk that will arise from any embezzlement of the organization’s resources. As highlighted, all the managers will be held accountable for their actions. In fact, they are expected to comply with the organization’s policies. Potential in the Market With the lucrative nature of electronic sector, this business is expected to bring good returns to the shareholders. We have put all the measures to ensure that no problem arises from the management. If all the executives are committed to their duties, it will be easier for the business to accomplish its primary goal which is profit maximization. However, this might not be realized if the organization fails to enjoy a larger share of the market as compared to other rival firms (Scott, A.S., 2003). Since the organization will not enjoy a monopoly, it is important to acknowledge that there will be some competition especially from the already established firms. This implies that the organization will have to come up with strategies to exert its dominance in the market. First, it will embrace the use of modern technology in the production of commodities. This will help in ensuring that we manufacture and supply high quality, dynamic and up to date commodities to satisfy the diverse needs of all our clients. The other strategy will be the pricing policy. The organization will have to understand the prices charged by the rival organizations before settling on its own. Once we set fairly lower prices, we will be in a position of attracting more customers since they will not feel exploited as they are by other organizations which charge exorbitant prices on their goods (Minniti, M. & Moren, L., 2010). Meanwhile, the organization will opt to concentrate on product promotion as it seeks to expand its coverage of the market. With a sales promotion through advertisements, it will be easier for the organization to create awareness about its products. In doing this, we will have to know much about our target clients. The knowledge about their taste, income and background will be instrumental in determining the type of medium to use. However, for the sake of diversity, we will have to use the broadcast, print and online media while advertising our commodities. If we successfully do this, we will have to reach all the target clients. Therefore, as we gain ground, the organization will obviously enjoy a competitive advantage over other rivals and subsequently enjoy a larger share of the available market. Projected Risks This kind of business only expects to face four kinds of uncertainties: stiff competition; progressive change; inflation rates; and government manipulation. As already highlighted, electronics business is so lucrative. Meaning, it has attracted lots of investors who have come up with different varieties of brands of the same, complement and substitute commodities. Because of this, our organization is expected to face a very stiff competition from other firms. These include the already existing and the new ones to be established in future. However, deliberate steps have been taken to deal with it (Dorfman, M.S., 2007). The other risk to be faced by this organization is the progressive nature of the society. Meaning, the high rate of transition means that some technologies might be rendered obsolete even immediately after their introduction into the market. In order to tackle it, there is need of the management to be highly dynamic, creative and privy with the latest technological trends. Moreover, inflation rates might affect the costs of production, an unfortunate situation which might reduce profit margins (Flyvbjerg, B., 2003). Lastly, the government might impose stringent policies to regulate this business. This might be through high taxation and trade embargo which might hinder our efforts to import commodities and their accessories. References Deakins, D. & Freel, M. (2009). Entrepreneurship and Small Firms, 5th Edition. McGraw Hill. Dorfman, M.S. (2007). Introduction to Risk Management and Insurance (9th Ed.). Englewood Cliffs, N.J: Prentice Hall. Flyvbjerg, B. (2003). Megaprojects and Risk: An Anatomy of Ambition. Cambridge: Cambridge University Press. Knight, F. H. (2006) Risk, Uncertainty and Profit. Chicago: Houghton Mifflin Company. Minniti, M. and Moren, L. (2010). "Entrepreneurial types and economic growth" Journal of Business Venturing, 25 (3): 305-314. Scott, A.S. (2003). A General Theory of Entrepreneurship: the Individual- Opportunity Nexus. Edward Elgar Publishing. Shane, S. & Nicolaou, N. (2013). The genetics of entrepreneurial performance. International Small Business Journal, 31(5): 473-495. Read More