Interview with John Smith, the Proprietor of AusFresh - Case Study Example

Report Based on an Interview with an Entrepreneur Name of Student: Name of Course: Name of Instructor: Date of Submission: Report Based on an Interview with an Entrepreneur Executive Summary The following report is based on an interview conducted on 23rd October on John Smith, the proprietor of AusFresh, a fresh juice manufacturer and retailer in Melbourne. The aim of the interview was to identify several elements associated with entrepreneurship. The first section of the report will give an introduction to the entrepreneur and his business. It will also give a brief history of the business. The second section of the report will analyze the characteristics of the entrepreneur in relation to the ones discussed in class. The third section of the report will analyze AusFresh while the fourth will analyze the business strategies employed by Mr. Smith in the market. The last section will identify the lessons learnt from the interview. The conclusion will highlight the main points covered in the report. Table of Contents Executive Summary 2 Table of Contents 3 1.0 Introduction 4 2.0 Entrepreneurs Characteristics 4 3.0 The Entrepreneurs Business – AusFresh 5 4.0 Analysis of AusFresh’s Business Strategy 6 Appendices 8 1.0 Introduction The following report is based on an interview with John Smith, the owner of AusFresh, a small fresh juice manufacturing company located in Melbourne Australia. John Smith is in his early thirties and is a father to two sons. AusFresh started off as a home company in 2003 when John was still living with his parents in the outskirts of Melbourne. Initially, Smith ventured into the business so as to get money to help his parents with his tuition fees and pocket money. Surprisingly, Smith was independent from his parents within six months in business. After College, Smith decided to take his business to another level; finding a suitable location on a busy section of the town and setting up a small production plant and also a small service area. As at today, AusFresh provides Smith with slightly above $10,000 monthly and he has been able to employ four employees directly to help him out at the business. 2.0 Entrepreneurs Characteristics Over the interview, John Smith was calm and confident in what he was saying. It came out clearly that he was dreamer. He explained how he had visualized of having a mini production plant which also had a service area some five years ago. He exhibited his entrepreneurial characteristics when he explained the operational and market details which he analyzed before making a decision on going it big into the industry. His focus on details was exhibited when one of the employees came to ask him about the right percentages for making a recently developed concoction. Funny enough, the variation was only 1%, and Smith asserted that the right blending ratios had to be used. He seemed to have done immense research on people and had different products for different kinds of people. It was also identified that Smith is great decision maker. He calculated his moves strategically and combined this aspect with calculated risk taking; hence being able to lead AusFresh to its current state. He recounted of several instances when his business had been challenged by legal entities among other market forces. However, he instated that it is persistence and determination which had kept him going. He has an internal drive to excel and his talk about the future expectations from the business asserted this. He gave a precise picture of what was to happen on specific days in the future, affirming his value for planning and vision. It was also identified that Smith was passionate about what he was doing. Smith loved anything about food and his degree in food science was not misplaced but instead a calculated move towards pursuing his passion. The product proliferation and great customer service deliver associated with AusFresh affirmed his commitment to innovation and creativity. Checking Smith’s performance against the checklist discussed in class on the characteristics of an entrepreneur, it can be acknowledged that he exhibits most of them. His focus to venturing in the competitive hospitality and juice production is a manifestation of his entrepreneurship spirit. 3.0 The Entrepreneurs Business – AusFresh From the interview, it was identified that AusFresh is an entrepreneurship venture exhibiting key features of lean entrepreneurship. AusFresh ventured into the competitive hospitality and juice manufacturing industry. Smith did not prospect to build a smaller version of Pepsi, Coca-Cola or any other juice and beverage manufacturing company. Instead of this, Smith sought to build a beta version of juices; one which was extracted from fruits and vegetables. Before venturing into the market, Smith did little research on the minute market details but saw the opportunity to provide the target market with fresh, quality and healthy juices. The fact that AusFresh provides the client with an opportunity to see his or her juice being prepared assures them of high quality in addition to providing the business with a mark of uniqueness, a factor which has contributed to its competitiveness. The business did not have a high initial setup, about $1000. From this amount the business has grown to be a profitable business and with an outstanding rate of return on investment. Smith embraces innovation and AusFresh exhibits great innovative ideas for instance in service delivery, design of the service area, customization of mugs and environment. Ideally, Smith has been able to provide his clients with an experience as opposed to products. This is in line with their slogan ‘AusFresh- welcome to the healthy experience’. From the interview, it can be acknowledged that AusFresh is a true entrepreneurship venture and its propagation has been based on a strong entrepreneurship spirit. 4.0 Analysis of AusFresh’s Business Strategy The success of AusFresh can be associated with its great business strategy. It must be acknowledged that the business is managing in the competitive environment dominated by the likes of Pepsi, Coca-Cola, Mildulla and Golden Circle. The first business strategy which s upheld by AusFresh is the game theory. With the game approach to the market, the business is able to make calculated moves; hence placing it in a competitive position. The business has been able to manage the uncertainties and the predictability of the market hence being able to develop strategically. Key to AusFresh’s strategy is its products. Smith upholds the need for upholding quality in his products. He has adopted the differentiation strategy where he has developed various products for specific target markets. The business has specifically focused on the health segment of the market and has produced various indigenous juices and concoctions used to boost health. The business has also developed a core competence; innovation which has enabled it to manage the uncertainties which occur in the market. John Smith forecasts that AusFresh will have opened three outlets around Australia within the next three years. The entrepreneur has a strategic plan for the business and has already sourced for funding from a local financial institution. With its commitment to its core objectives, AusFresh is certain to make it big in the domestic market. Learning The interview with John Smith has been very instrumental in contributing to the comprehension of the requirements and nature of entrepreneurship. From the interview, it was learnt that an entrepreneur is a risk taker. He or she is someone who moves from his or her comfort zone and ventures into the unknown with prospects of achieving a specific set of goals. It was identified that an entrepreneur is a go getter; one who identifies a business opportunity and goes ahead to invest in it with the desire of getting returns on investment. The interview gave a deeper insight into lean entrepreneurship where an entrepreneur allows the market forces to dictate the business model to adopt. Another key lesson learnt in the interview was that business should try to be unique from their competitors so as to increase their chances of succeeding in the market. It was identified that AusFresh makes use of the game theory and the differentiation strategy to increase its competitiveness in the market. The business has also given special focus to innovation; a core competence which gives it a competitive edge over its competitors in the market. From the interview, it can be acknowledged that it is not the market situation but the willingness to succeed which enables an entrepreneur to succeed. Conclusion Concluding, this report has been able to give an insight into AusFresh, a fresh juice manufacturing and selling business venture located in Melbourne and its proprietor Mr. John Smith. The report was particularly successful in giving an in depth discussion about entrepreneurship and various elements associated with it. The first section of the report s introduced the entrepreneur, Mr. Smith and the business AusFresh. The second section gave an insight into the characteristics of Mr. Smith in comparison to the characteristics of an entrepreneur discussed in class. The report then analyzed the business; AusFresh after which the business strategy of the venture was discussed. The report finalized by identifying the lesson learnt from the interview. From the interview and the report, it can be acknowledged that the entrepreneurship sprit of a leader or a business proprietor is a key element influencing the success of a business. Appendices Interview Questionnaire i. How are you sir? (Firmly) Am good, welcome to my humble office ii. Could you please give me a short introduction of yourself? My full names are John Smith Walker. I am a food scientist; having completed my bachelors in Food Science in 2007. In addition to this, I am a father of three. I grew up in Melbourne and am just the other kid on the block. iii. What is AusFresh? AusFresh is a fresh juice manufacturing company with its headquarters in Melbourne in this office which you are seated in. The company produces both fruit and vegetable juices and is the only place in Australia where you can watch your glass of juice prepared before being served to you. iv. What is the story behind AusFresh? It history can be traced back to 2003 when I ventured in the production of fresh juices so as to get money to help out my parents with my tuition fees and pocket money. Six months down the line I was fully independent from my parents. With the success, I was sure that this is what I wanted to do in life- producing fresh juices. v. What is the current state of the business? It is faring well, with profits exceeding $10,000 monthly and having employed 4 people, I am satisfied with its progress thus far. vi. How does it feel to be an entrepreneur? Hmmmmm….. It is the best feeling ever. Having to wake up to a day full of many opportunities and it is up to you to grasp them. The feeling of being your own boss is great. However, being an entrepreneur may not be as easy as many think it to be. One has to make sure that everything is going on smoothly. I remember a certain time when I was in college when I was arrested by the local council for not complying with the law…. I had to part with a lot of cash, an occurrence which almost killed my business. However, the main thing s to keep dreaming; keep visualizing about what you want, and surely if you have it in your mind, you will have it on your hands. vii. According to you, what has given you the strength to succeed? As I said earlier; having a picture of what you want is very important. Otherwise determination, focus, risk taking, taking care of details, innovation and having an entrepreneurship spirit are crucial to an entrepreneur’s success. viii. How do you perceive AusFresh? AusFresh is my empire, it is my life. I enjoy being there. AusFresh is a unique fresh juice manufacturer and retailer which has focused on specific needs of the market such as customer services, quality healthy and customer experience. I was angered when a local publication compared AusFresh to Golden Circle. AusFresh is a totally different thing. ix. Where do you see AusFresh in the next three years? I am hoping that I will expand to other locations in the country and spread the AusFresh Experience there. AusFresh has been tested and proved to be working. I won’t be scared of taking it to Mars…. Hehehhehehhehehe. x. What are AusFresh’s key business strategies? I like this. The game theory of course; I acknowledge the fact that business is a kind of a game where one has to view the pitch from the perspective of the opponents. From there, one can be able to make calculated moves which ensure that he is always leading the game. That is how I manipulate moves at AusFresh. I also appreciate that there were predecessors in the market hence had to come up with strategies of venturing into the market successfully. On this, AusFresh used and uses the differentiation strategy where it develops and produces products for various target markets. The business has also upheld a core competency; innovation which has enables t to stay afloat in the market. Read More