Steve Jobs: An Innovative Entrepreneur - Assignment Example

of Bradford School of Management Bradford MBA in Dubai Entrepreneurship UB NUMBER: 12024990 MODULE Shahid Rasul Entrepreneurship(MAN4309M) DATE SUBMITTED:14th July 2014 WORD COUNT:2500 words (Excluding References, bibliographies, Tables, Figures captions and citations) Statement of Authenticity: I have read the University Regulations relating to plagiarism and certify that this assignment is all my own work and does not contain any unacknowledged work from any other sources. Table of Content 1 Table of Tables 3 Assignment Task# 1 5 Steve Jobs – An Innovative Entrepreneur 6 Background 6 The source of the idea 6 Theory and Practice 6 His role as an entrepreneur and how he faced his risk 8 At the point when Jobs went ahead board in 1996, Apple was still a whole lot a specialty machine stage. Windows-based Pcs were claimed by the lions share of shoppers, with the higher-evaluated Apple workstations principally being utilized by the innovative businesses, including promoting, outline and films. 8 Then again, that all changed when the ipod went along in November of 2001. All of a sudden, Apple was abruptly on everybodys lips. The thought that many melodies could be put away digitally on one little gadget much littler than any Walkman or CD player was awesome. Steve Jobs had initiated an item that actually changed the way music was played and imparted. 8 Inside a couple of years, Apple was the technology that everybody needed to possess. And after that came the iphone in 2007, which took Apple from a real player to the organization everybody was attempting to copy. Overnight, the iphone reinvented cell technology, and it was yet an alternate smashing triumph for Steve Jobs. His organization, Apple, was the brand pioneer and the one heading the field. 8 Contrast between Social Arrangements 8 Assignment Task#2 10 Business Plan 10 Concept 10 Objective 10 Market Research 10 Market Segmentation 10 Target Market Segment Strategy 10 Break-even Analysis 13 Conclusion 14 Bibliography 16 Table of Tables 3 Assignment Task# 1 5 Abstract 5 Steve Jobs – An Innovative Entrepreneur 6 Background 6 The source of the idea 6 Theory and Practice 6 His role as an entrepreneur and how he faced his risk 6 Contrast between Social Arrangements 7 Assignment Task#2 9 Business Plan 9 Abstract 9 Service Description 9 Objective 9 Market Research 9 Market Segmentation 10 Target Market Segment Strategy 10 Financial Planning and Evaluation of Business Model 11 Break-even Analysis 12 References 14 Bibliography 15 Table of Figures Figure 1- Steve Jobs 5 Figure 2- Owner-Manager Source:Source :(Burns, 2001, p. 26) 7 Figure 3 Value Chain Model 11 Figure 4- Return on Investment 14 Table of Tables Abbreviations Full Form Assignment Task# 1 Figure 1- Steve Jobs Steve Jobs – An Innovative Entrepreneur Background For this part of the assignment, I will consider Steve Jobs as he has been identified as one of the greatest entrepreneurs of the era. Steve Jobs was a visionary who made Apple Inc. the most valuable company through his innovative approach into coming up with interesting products such as the iPad and the iPhone. He also had the marketing ability to create a buzz of his product launch. The source of the idea Steve Jobs was an adopted child of Mountain View, California, Mechanical Engineer and he had shown immense interest towards electronics and gadgets right from a very young age. While in secondary school, he strongly called Hewlett-Packard prime supporter and President William Hewlett to request parts for a school venture. Inspired by Steve Jobs, Hewlett got him the parts and also offered him a midyear internship at Hewlett-Packard. It was there that Jobs met and become a close acquaintance with Steve Wozniak, an adolescent specialist five years his senior with a propensity for tinkering (Moisescot, 2012). In the wake of moving on from secondary school, Jobs selected in Reed College yet dropped out after one semester. He had gotten captivated by Eastern mysticism, and he took low maintenance occupation planning feature recreations for Atari so as to back an excursion to India to study Eastern society and religion. At the point when Jobs came back to the U.S., he replenished his friendship with Wozniak, who had been attempting to assemble a little machine. To Wozniak, it was simply a side interest; however the visionary Jobs got a handle on the advertising capability of such a gadget and persuaded Wozniak to start a new business with him. In 1975, the 20-year-old Jobs and Wozniak set up shop in Jobs guardians carport, named the wander Apple, and started chipping away at the model of the Apple I. To create the $1400 in capital they used to begin Apple, Steve Jobs had to sell his car, and Steve Wozniak had to sell of his calculator (Moisescot, 2012). Theory and Practice When we research the thought of Entrepreneur by Paul Burns, he says that an entrepreneur is an individual who consumes the activity to do something other than whats expected by going out on a limb and thinks of benefits through his or her imaginative thoughts. Subsequently this is the place the contrast lies between an Entrepreneur and a Manager (Burns, 2011, p 11). Whereas when we compare the same with that of an Owner Manager, he or she has a different mindset. The owner manager is neither an opportunist nor innovative with their ideas. They rather look for independence and have the eager to achieve their target, often with the help of other people. Figure 2- Owner-Manager Source :(Burns, 2001, p. 26) When we try to link the above discussion with the theories expressed by several authors, there are several theories of entrepreneurship that can be associated in this case. Eckhardt and Shane (2003) came up with the idea that an Entrepreneur identifies and the opportunities available in the market and assesses them in order to exploit them and sell them. The similar idea was proposed by another group of writers who emphasises on the idea of opportunities (Stevenson and Jarillo, 1990, p 23). Steve on the other hand had the vision and his own interest in information technology initiated his will to come up with his own idea and company. Lee and Peterson (2000) claimed that managers and businessmen in general adopt entrepreneurial behaviour and skills while developing their strategies. This further helps them to face and the difficulties and build up a better future for the current business. Steve Jobs however had his skills right from the beginning when he came up with the idea of opening their own firm after building their first computer. This shows that theories of entrepreneur does not always holds true for everyone case and people such Steve Jobs have the in borne of being an entrepreneur. His role as an entrepreneur and how he faced his risk At the point when Jobs went ahead board in 1996, Apple was still a whole lot a specialty machine stage. Windows-based Pcs were claimed by the lions share of shoppers, with the higher-evaluated Apple workstations principally being utilized by the innovative businesses, including promoting, outline and films. Then again, that all changed when the ipod went along in November of 2001. All of a sudden, Apple was abruptly on everybodys lips. The thought that many melodies could be put away digitally on one little gadget much littler than any Walkman or CD player was awesome. Steve Jobs had initiated an item that actually changed the way music was played and imparted. Inside a couple of years, Apple was the technology that everybody needed to possess. And after that came the iphone in 2007, which took Apple from a real player to the organization everybody was attempting to copy. Overnight, the iphone reinvented cell technology, and it was yet an alternate smashing triumph for Steve Jobs. His organization, Apple, was the brand pioneer and the one heading the field. In 2010, after numerous varieties of the iphone, the ipad was propelled to an at first luke-warm gathering. Individuals didnt see the requirement for it, yet Steve Jobs knew it was going to have a huge effect. Also it did. By March of 2011, in excess of 15 million ipads were available. Steve was always known for his innovative ideas and that is why he was recognised at a successful entrepreneur. When it comes to characteristic trait, there are several characteristic traits of an Entrepreneur. They can be innovative, opportunistic, self-confident, proactive and self-motivated, visionary with flair and the ability to live with uncertainty and take greater risks (Burns, 2011, p. 34). When we relate these traits with that of Steve Jobs, it can be seen that he has almost all the traits except being an opportunistic. He had the vision of getting computers in every ones hand and he had the confidence to take the risk to go ahead and open up a company. He did not have any support, which shows that he was self-motivated and proactive with his ideas. All these traits made with an exceptional entrepreneur. Contrast between Social Arrangements According to Steve Jobs, he always thought that the normal social arrangements did not apply to him. He was of the vision of doing things differently and never preferred to play a safe game for Apple. However his ideas and innovations were acknowledged worldwide and he had gained the recognition of being the greatest entrepreneur ever (Austen, 2012). Steve Jobs had almost all the characteristics of an entrepreneur. He never wanted to leave an opportunity that is why the moment he got the idea of building a computer he wanted to grab it. He was always ready to take a risk which is why he sold of his car in order to start up with his firm. A normal owner manager could not thought of taking such a risk. Another important trait possessed by him was that of being a true leader as he was confident with his ideas and could lead his employees into working upon new ideas. The main trait that I think is most imperative and unique is his fantastic creative ability. Its one thing to imagine your organization developing and taking piece of the pie from an alternate contender, however its something else to imagine that your organizations items and administrations will change the way individuals impart, work and live their lives. He fabricated his organization under the suspicion that Apples items and administrations would change the world. His uncanny capacity to create and design engineering items (now ordinary items) that individuals adoration was similar to no other entrepreneurs some time recently, throughout or after his time. Hes really a legend in the idea of imaginative and intelligent design. He concentrated on design and was obstinate that it be totally great. It was his conviction that design is a basic part to creating cutting edge items that individuals love. I think there is a ton to be adapted here. He made one part of building his business (that is, design) extremely essential instead of different regions. This developed into Apple preference and the organizations brand. These are simply a couple of the numerous traits Steve Jobs left for us to gain from and grasp with our own particular organizations. Your business venture wont be the same as his, however you can surely take after a large number of his progressive methods for building an incredible organization. Having gone through the entrepreneurial venture of Steve Jobs, there are some differences in the theoretical approach from that of the real life scenario. As per a figure described by Paul Burns, his theory towards the difference between an entrepreneur and owner-manager states that an Owner manager is lifestyle business with no future plans of growth and an Entrepreneur has a plan of growth and personal wealth is important. However in the case of Steve Jobs, he had a dream of growing his company but he did not give importance to earning personal wealth. Source:(Burns, 2001, p. 26) Assignment Task#2 Business Plan Concept XYZ Wedding Consultants is a full service organization that gives complete counseling services to weddings, blessed unions and commemorations. The company’s consultants are accomplished and committed experts with numerous years of occasion arranging knowledge. XYZ is extraordinary in that we give our customers our undivided consideration. XYZ listen to their needs and work with them to make the occasion they had always wanted. The customers wishes turned into our summons. So whether the customer needs a Western, Tropical, Las Vegas or more customary wedding, we can offer assistance. The company’s services incorporate weddings, special first nights, gatherings, celebration conferences, plan arranging, replies to behavior questions, and also full-service referrals to flower specialists, hairdressers, performers, musical artists, and so on. Objective The customers first wedding, a replenishment of their promises or their commemoration, the company needs each subtle element of their occasion to be both a pleasurable and a huge experience. Along these lines the company offers an assembly of bundles and services particularly customized to the needs of each one couple. Market Research An average cost £ 18,000 are used consistently on weddings and receptions in the UK (Telegraph.co.uk, 2013). Hence, expert wedding consultants are a service provider, not a catastrophe. XYZ Wedding Consultants are full-service wedding consultants that offer a mixture of services to the customers. Market Segmentation Despite the fact that the glimmer and fervor of looming ceremony might be inebriating, it can likewise be overpowering. Accordingly, we fundamentally advertise the company’s services to the individuals who need those most- -ladies and grooms. As indicated by the 2-in-2-1.co.uk, in 2000 UK marriage rate of twenty-eight marriages for every 1,000 (Benson, 2003). This marriage rate is required to stay at the same level within a brief period of time. Other than the wedding courses of action, which XYZ Wedding Consultants accept to be their significant customer assignments, different occasions the organization will give services to incorporate corporate retreats, behavior preparing, and so forth. This client segment is evaluated to have the yearly volume of 1,000 requests in the UK. Target Market Segment Strategy XYZ Wedding Consultants will offer its services generally to the spouses and grooms, and additionally to the relatives. The organization will position itself as an accomplished supplier of wedding arranging services. XYZ Wedding consultant should target youth (age group of 20-39) of the UK market, since 26.7% of total population of the UK market are youth (Office of National Statistics, 2012). There are two major competitors in this sector are Cranberryblue and AP Wedding Planners. Figure 3 Value Chain Model Financial Planning and Evaluation of Business Model In the business of wedding planner, our initial investment is 37,000 pounds and according to market survey it can be expected that the net profit will increase by 16% per year based on our recent year’s net profit. Profit and loss Statement From the above income statement we can see that our projected sales revenue for the first year is 96,000 pounds. As there is no direct cost of sales and other cost related to sales thus the gross margin is 96,000 pounds. The total operating expenses is 64,500 pounds, which includes salaries and wages, cost of marketing and advertising, insurance, rent, utilities and other expenses. Thus the profit before interest and taxes is calculated as difference between gross margin and total operating expenses. The cost of taxation is 4,000 pounds. The net profit is calculated as the difference between Profit before interest and taxes and tax paid which is 27,500 pounds. The net profit is 28.65% to the total sales revenue. From the above cash flow statement, it can be seen that the total cash sales is 38,500 pounds and cash from receivables and debtors is 46,500 pounds. Thus the total cash from operations is 85,000 pounds. Now we have shown the total expenditures, which include cash spent on decoration of wedding events and payments made to the suppliers. The total cash spent on operations is 68,768 pounds. The net cash Inflow is 16,232 pounds. It shows that the company has 16,232 pounds cash in its hand, which indicates that the company has good liquidity position and it can meet any sudden requirements of liquidity to conduct the business activities. Break-even Analysis As mentioned earlier, the net profit may increase by 16% per year based on the current year’s net profit. Thus we will assume that the net profit will increase by 16% in the second year operations. Thus we will determine the year in which the company will be able to earn its breakeven point, which means the Return on Investment will be zero. Break Even Analysis Particulars Net Profit ROI 1st Year 27500 -34.55% 2nd Year 31900 -15.99% 3rd Year 37004 0.01% 4th Year 42925 13.80% 5th Year 49793 25.69% Figure 4- Return on Investment From the above breakeven analysis we can see that the company will reach its breakeven point at 3rd year when the net profit will be 37,004 pounds. The initial investment is 37000 pounds. Thus at the end of 3rd year the company will reach the point where it will have no profit and no loss situation. After 3rd the company will start to earn profits.  Conclusion From the above study it can be concluded that 26.7% of the total population is youth in the UK who belong in the age group of 20-39. Thus it can be said that the rate of marriage will be increased in future as major portion of the population is youth. It will be beneficial for the XYZ wedding consultant. References Austen, B., 2012. The Story of Steve Jobs: An Inspiration or a Cautionary Tale? | Business | WIRED. [online] WIRED. Available at: http://www.wired.com/2012/07/ff_stevejobs/all/ [Accessed 25 Jun. 2014]. Burns, P., 2001. Entrepreneurship and small business. 1st ed. Houndmills, Basingstoke, Hampshire: Palgrave. Burns, P., 2011. Entrepreneurship and small business. 3rd ed. Houndmills, Basingstoke, Hampshire: Palgrave. Eckhardt, J. and Shane, S., 2003. Opportunities and entrepreneurship. Journal of management, 29(3), pp.333--349. Entrepreneur, n.d. Steve Jobs: An Extraordinary Career. [online] Available at: http://www.entrepreneur.com/article/197538 [Accessed 28 Jun. 2014]. Grebenc, M. (2014). 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