Management, Leadership, and Ethical Practices - Research Proposal Example

REFLECTIVE REPORT: ASPECTS OF STARTING A BUSINESS al Affiliation Table of Contents Table of Contents 1.INTRODUCTION 2 2.LITERATURE REVIEW 3 2.1 Entrepreneurship and Opportunity 3 2.2 Management, leadership, and ethical practices 3 2.3 The business plan 4 2.4 Finding, securing, and managing money 4 2.5 Exploring the market to come up with the right marketing mix 5 2.6 Marketing strategies 6 3.DISCUSSION 6 4.EXPERIENCE 7 4.1 Effective customer service 7 4.2 Expansion strategy 8 4.3 Barriers 8 5.CONCLUSION 8 6.Reference List 9 REFLECTIVE REPORT: ASPECTS OF STARTING A BUSINESS 1. INTRODUCTION There are various business opportunities due to a wide variety of determinants in the education, economic, technological, and financial sectors. The educational field has provided sufficient knowledge to potential entrepreneurs based on various economic theories. Technological advancements have contributed to simulations and fast communication mediums that are important in the creation of various business plans (Smart, 2006). The financial sector has provided monetary advice to entrepreneurs and has assisted them to come up with ideas and financial support to launch businesses. Global trends show that more individuals have decided to venture in self-employment through business organizations rather than formal jobs. Subsequently, the number of entrepreneurs has increased in various fields leading to competition. Only new ideas and innovations have been able to penetrate the markets since most of the products and services have already been introduced by large organizations. The businesses have added advantages due to their market share and capital accumulation that helps in expansion strategies (Zikmund and Babin, 2007). Entrepreneurship has a vital role in most economies due to its major contributions to the economy. It helps in the cash and capital flow that aid in regulating spending and inflation. Profits from the firms can be used to invest in both local and foreign market; hence, earning the economy extra funds through foreign exchange. Most businesses also create employment opportunities that help in the control of unemployment in the labour market. Consequently, I have decided to venture in the service industry due to the cultural and social nature of the entrepreneurship opportunity. Teaching others how to cook Chinese food will assist me in exercising social roles such as socio-cultural integration as well as make profits. The company will invest in different knowledge approaches that will assist in comprehending the Chinese cultures including its food traditions. The main company’s objective is to exchange services and skills with the long-term impact of making profits. 2. LITERATURE REVIEW 2.1 Entrepreneurship and Opportunity Entrepreneurship is a new systematic process of discovering, evaluating, and exploiting opportunities in order to produce new goods and services in the market (Rae, 2007). Entrepreneurs may choose their business fields based on the social, political, financial, cultural, and personal preferences. The features act as motivating factors, and they vary in different sectors of the economy and later act as environments that surround the business after it is established. The internal environment may reflect financial, management and customer service while the external consist of the social, legal, cultural, and economic factors (Cook, 2011). 2.2 Management, leadership, and ethical practices The business plan should take into consideration the social factors may include beliefs, norms and behaviors (Wong, Liu and Tjosvold, 2015). Most entrepreneurs are prevented by various social norms from exploiting opportunities in various locations. Financial factors include the monetary and fiscal policies that are present in the business environment (Acs and Audretsch, 2010). They may affect a business’s performance through the tax rates, interest rates and exchange rates for international companies. Entrepreneurs should choose the right approach for their business plan to prevent further complications after the business has already been established (Balanko 2007). Cultural determinants may also affect an entrepreneurs idea to start a business in a certain location. For example, the service industry that includes hotels and restaurants may have cultural boundaries due to its nature (Lockyer, 2007). Different cultures have variations in their feeding habits referring to some food as holy. The cultural backgrounds of the business environment should be put into consideration while creating the business plan (Burianek, Bonnemeier and Reichwald, 2011). Political factors such as instability in a preferred location may affect the business’s survival strategies. It should be located in a business environment without political interference; that ensures economic market forces operate perfectly (Komives and Wagner, 2012). The business opportunity should also be monitored and evaluated based on legal determinants such as rules and regulations governing the business sector. Legal factors differ according to jurisdictions and require a business’s flexibility in order to survive (Greenberg, McKone-Sweet and Wilson, 2011). They may include labour laws that cover workers and safety standards especially in the food industry where food poisoning is a common practice. The technological issues have become a developing trend in modern businesses that affects investment and expansion of a business. They range from service provision to customer care service to marketing strategies (Cook, 2005). An entrepreneur should be ready for new ideas and innovations that with consist of the competition strategies. The business opportunity should not entail much advancement in technology due to the rise in starting capital. Advanced technologies are also expensive to maintain and require businesses with accumulated capital to run. 2.3 The business plan Business plan entails an entrepreneur’s plans and strategies to start the preferred business (Wellington, 2010). The main aim of the plan is to ensure that the goals and objectives of the intended business have been met without any setbacks. It provides detailed information on the finances, markets, investments, and management among others. It is also known as the road map to success due to its focus on the long-term plans for the business. It should be strategic and target all changes that may occur after the launch of the business. Such changes include customer trends, branding, and competition and market environments. Businesses plans in the service industry vary from those in the goods sector. They must enforce professionalism because they deal directly with the clients unlike in the good industry where the producers do not have to meet their clients (Lane, 2011). For example, the hotel industry has a different code of conduct that ensures customer satisfaction without maximizing the operational costs. 2.4 Finding, securing, and managing money All costs have to be catered for in the business plan to ensure that the business runs on profits. An entrepreneur’s main aim is to make profits and expand the business in order to enjoy the economies of scale. The human resource, leadership, and supply chain management should also be catered for in the business plan (Gibson-Odgers, 2012). It includes the number of employees and various strategies that will be used in their management to ensure maximum productivity. Additionally, the corporate structure of the business should also be clearly defined in the business plan to reduce any barriers and ensure employee satisfaction (Burns, 2012). Supply chain management should make sure that a business is always running at the right production levels. The hotel industry requires that food ingredients are freshly supplied. 2.5 Exploring the market to come up with the right marketing mix An entrepreneur should make sure that there is a ready market for his/her products. Exploration of the market includes carrying out research that will provide knowledge on the market strategies that should be implemented. Most business exit new markets due to lack of in-depth information on the type of market to offer their products or services. Exploring the market provides information on whether it is monopolistic or oligopolistic. Monopolistic markets do not have opportunities for any entries from similar firms (Jeffs, 2008). An entrepreneur should focus on the oligopolistic market where he/she can easily enter or exit the market without any difficulties. Additionally, the market should not consist of many competitors due to the reduction of prices to attract more customers. Most entrepreneurs recommend market segmentation since they offer the right marketing mix (Hockerts, Mair and Robinson, 2010). It is a strategy that involves dividing the market into various sections based on the number of consumers, location, trends and competition. The company has divided its market based on customers and cultural boundaries. It has targeted individuals that are interested in the Chinese culture and would like to venture into their foods. Consequently, the market segmentation has divided the market in a smaller and profitable market share that does not consist of many businesses. Demographic market segmentation has also been recommended in the business plan. It targets customers based on social variables such as gender, age, education, and occupation levels. The business will target both genders since the training can assist most of them to work in Chinese restaurants. The age will not be a determining factor because all consumers will be catered for in the company. The old may learn Chinese cooking for leisure while the young may learn for monetary and job purposes. Consequently, the market will have a segment that will cater for a large number of customers. Behavioural and psychographic segmentation will divide the market based on lifestyles and behaviors. Customers may be categorized in groups that can be based on attitude and response (Buchholz, Wördemann and Wiley, 2009). The market exploration will assist in understanding customer trends and behaviours towards the Chinese culture. For example, some customers will be Chinese immigrants who would like to comprehend their culture in the cooking sector. Additionally, foreigners may also be interested in the culture and decide to learn more; hence, increasing the market proportions. 2.6 Marketing strategies The company will employ competent strategies in the infant market. Advertisements may be used to cause awareness to potential individuals on the presence of a firm that is providing Chinese cooking lessons (Butler, 2005). Advancements in technology have also led to the adoption of online marketing that can be done through various channels. The business plan should provide such marketing strategies that will be vital in the expansion policies for the business (Rabb, 2010). The first step is for the firm to create a website that can be accessed in any market despite the geographical location. Digital marketing strategies will include the advertising in social networks, blogging sites and other internet advertising sites. The strategy will include posting the website and offered lessons in the company’s social network pages and groups to increase awareness. Additionally, platforms such as YouTube can provide video sessions and comments from various customers on their experience with the companys staff (Polelle, 2008). Online marketing is recommended in most businesses due to its limitless international boundaries that can be used as an expansion strategy. The marketing approaches will define the level of success for the business (Evenson, 2012). Finally, online platforms are vital in the service industry because they can facilitate online transactions. For example, the company can launch as secure network that will provide video conferencing and calling with its customers. Consequently, the potential clients will not be required to visit the companys headquarters but can start their cooking classes while at home through video conferencing. The firm may also provide DVDs on various lessons that can be purchased by customers online and provide the right skills for the lessons. Cooking videos and procedures can also be posted on sites such as YouTube that will provide free knowledge to the potential customers that will later seek more information. 3. DISCUSSION The main determinant of the businesss success is the corporate structure that has to involve leadership skills. The bureaucracy and role allocation should be observed at the beginning of the business to ensure smooth operations. The hierarchy chart in the business plan prevents duplication of roles and mismanagement by seniors. After the business has been established, the employees should be observed and monitored to make sure that they operate in full capacity. The primary operations of the service business are vital because they determine whether the customer will come back for more or find the services unsatisfying. Notably, the employees should be issued with performance contracts that will gauge their outputs in the company. The process should take place a few weeks after the business has started operating. Feedback from customers should also be used to expose employee abilities in the teaching lessons. Training and coaching should also be catered for in the firm to make sure that employees are trained and updated on new trends in their allocated roles. For example, there may be the presence of a mistake in the cooking process that should require urgent changes. The coaching department should cater for such problems. It will also enhance professionalism among the workers that may work as a competition strategy. As the business grows, customers’ records should be tracked through sheets and tables to assist in the comprehension of any trends. For example, an increment of foreign customers is a trend that may help in price determination. It will also assist the staff to rate employee loyalty and come up with new ideas that can improve customer satisfaction. The management should come up with proposals and initiatives to facilitate the business’s rank in the market when the business is at its production peaks including online marketing platforms. Others strategies may include using the profits to start other lessons such as Chinese yoga and martial arts. Additionally, the company can also make investments that will lead to accumulation of capital. The investments may be used to provide financial assistance to the company in case of an economic crisis such as a recession. Competition, on the other hand, can be eased if the company uses its capital in the acquisition of smaller companies in the same sector. 4. EXPERIENCE 4.1 Effective customer service The launch of the business proved difficult at first due to various setbacks that came up. However, since most of the difficulties had already been stipulated din the business plan, there were recommended strategies and solutions to overcome them. Firstly, the flow of customers was not as expected from the market analysis but it increased with time. Additionally, the online advertisements also led to an increase in the number of customers that wanted to enrol in the cooking lessons. The management and human resource was well trained; hence, providing quality training skills to the customers. The customer care service was also launched to ensure customer satisfaction through feedbacks and after sale services (Brink and Berndt, 2005). 4.2 Expansion strategy The advancement in technology has led to social integration due to the transportation and communication sectors (Bhatt, 2011). The integration has led to cultural integration in various countries due to immigrants and tourists. The company will take advantage of this situation to venture into the Chinese culture and provide it to individual in other geographical locations. 4.3 Barriers Despite the success of the firm, various barriers came up between the staff and the customers. For example, communication and language barriers were the most common during the lessons. Most of the customers who had enrolled in the cooking classes were fluent in English where most of the foodstuff, ingredients, and utensils were named in Chinese. The language barrier caused delays since most of the customers had to undergo language lessons before the cooking lessons. Additionally, the barrier also cost the firm more expenses due to training the staff and from the time wasted while teaching the customers various Chinese pronunciations. Another setback was the learning space. After the online advertisements, there was an influx of customers that could not be handled in the small space that had been provided for in the business plan. However, various strategies have been employed to handle the setback and ensure the success of the business. 5. CONCLUSION The establishment and survival of the company have been a major entrepreneurial move. It is because of a perfect and strategized business plan that has provided information on all the present and future operations for the company. The success of the company can be measured by the expansion rate and propensity to include foreigners in its operations. Based on a socio-cultural perspective, the company has ethically been involved in social integration by offering a part of the Chinese culture to other cultures globally. The expansion strategies may include a venture into other common cultures with the aim of providing cooking lessons. 6. Reference List Acs, Z. and Audretsch, D. (2010). 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