Business Planning: Enterprise and Entrepreneurial Management - Assignment Example

Enterprise and Entrepreneurial Management Part one: This will comprise a critical appraisal of the business planning process. You are not required to present a Business Plan, but rather critique the business planning process through a critical appraisal of the contribution each element makes to the creation of a successful entrepreneurial venture. Your critique should encompass such issues as: idea generation, strategic objectives, market analysis and research, understanding the competition, cash flow, profit and loss forecasts, balance sheet projections, competitive strategy and scenario analysis. The critique should include a summary of what should be included in each element of the business plan and a critique of the contribution that element makes to the understanding and creating of a robust entrepreneurial venture. In a business planning process, it is of paramount importance to understand that there are certain areas which are deemed as necessary for the success that must be achieved. These areas bank on the premise of attaining success if and only there are concerted efforts to have the idea developed and then later on judged on the basis of different scenarios, the competition that exists within the relevant markets and so on. There are a number of features that must be understood before one moves ahead any further. What is most significant here is to decipher the exact basis of idea generation and how it brings about an idea into the conceptual form. Idea generation lays down the foundation of what is going to take place within the domains of the business planning process and how it will be achieved over a period of time. These are important considerations and should always be considered within the related realms. If the idea is generated in a proper manner, then other ramifications are drawn up properly. If the idea has some major changes, then it is either scrapped up altogether or new amendments are made in order to find the best possible solution. These are very necessary changes which must be understood because in this day and age, it is imperative to extract the best possible idea for the business planning process. Idea generation therefore takes the front seat as far as the business planning process is concerned where the emphasis is on doing things right from the onset (Harper 2003). These are termed as important because it would lead to drawing up adequately sound strategic objectives. The strategic objectives are geared to take an organization forward and that too in the long run. These help the company to understand how it will fare in the coming times and how it must get its act together to bring about positive and solid results. These help the organization immensely in the wake of attaining a business planning regime which is much desired. The objectives tie up the pertinent aspects that an organization most definitely looks forward to, and finds out the best possible alternative in the wake of troubled times within the company itself. Hence there is a need for comprehending how organizational strategic objectives are drawn up and how these weigh up properly with the tactics and short term measures which are chalked out every now and then. Also the need for utilizing the market analysis and research realms is an important one. This is because the market analysis and research will exactly tell the organization where it stands and what it has to do to meet its objectives and the tactics that have already been drawn up in the past. However this will only happen if the idea has been generated in a correct format and if the concept has been locked upon in a fair way. Such regimes bring to light the importance of weighing in the market understandings that come about on a regular and consistent basis. Market analysis and research works to a firm’s advantage if it is geared to meet the challenges of the time, and to look after the rising costs and price tangents which are associated with its economical angles. These discussions are very imperative because these outline the need for having a clear cut basis of the organization within the long term scheme of things. In the same context, competition is the basis of providing value for the sake of the customer. If the customer does not get alternatives, it creates a monopoly for the organization under consideration. However if competition exists, it is good for the consumers and thus the industry grows as a whole because the organizations working to bring value for the sake of the consumers would know that the consumers can hop to the best possible service provider as and when the need so arises on their part. Competition is good because it creates a changed stance on the part of the industry as a whole. The industry players see the dynamics of the business planning in a light which is unique and has its own identity. Having a unique identity in the time and age of today is significant as it helps resolve the anomalies related with the business planning process and takes into consideration the salient aspects which can be the cornerstone of achieving success on the part of an organization at a specific juncture in time. What is important here is to understand that competition plays a huge role within the dynamics of the business planning process and how different mechanisms are employed remains an important point of discussion that is necessary to know. This brings to light the aspect of cash flow within an organization. If the business planning process is marred with cash flow issues, it would be correct to state that this must be set right and that too in a proper way. No organization can afford a business planning regime that has issues and anomalies within it. These could be easily taken care of if the cash flow issues are addressed properly and when there are proper and adequate mechanisms in place to make sure that cash remains the king no matter what happens or how trying and difficult the circumstances turn out to be at the end. Much similar are the understandings that have been reached upon in the profit and loss forecasts that are drawn up by the organizations from time to time as these organizations take care of the business planning regimes in entirety. If the cash flow anomalies are something to gain an edge from, the profit and loss forecasts give a totally new tinge to the related discussion in essence. What this suggests in the end is the fact that the organizations should be ready and willing to grow beyond the expected turns and do things which they have been unable to envisage and determine in the past. These discussions must center on the premise of bringing about a global good for the sake of the organizations rather than the industry as a whole. A good business plan is always backed up with sound logic that there would be adequate space for both debit and credit ledgers. These are important cornerstones for achieving the perfect balance sheets, which are much desired by any organization. What is even more important is the fact that the business plans should have proper room for having a clear cut advantage point for the sake of the business so that any anomalies which come about every now and then can be taken care of and if there are any pending issues; these are resolved in an amicable manner. The balance sheet projections should always be tackled in a smooth way because these can lead to a number of problems for the sake of the business if due consideration is not undertaken. Hence serious efforts are the need of the hour if the balance sheet projections have to be taken into proper understanding levels (El-Amin 2003). The competitive strategy is also very significant within the related discussions because it pinpoints the basis for comprehending how the business plan would be differentiated in the wake of the problems that come about every now and then. There is a dire need to understand how any business would fare in the wake of different scenarios that emanate every now and then, and what the business can do on its own to differentiate its relevant basis. Therefore an entrepreneurial venture would be boosted immensely if the business plan is robust from all perspectives. It would be given the much needed boost in terms of the above-mentioned pointers – all of which play decisive roles within the make-up of the business regime. These are significant aspects that need to be considered and specifically so in the case of an entrepreneurial venture (Rogers 2001). The roles played by the owner and the managers at different levels only certify this very assumption that individuals within a workplace setting should work towards attaining the objectives and goals in a quantifiable manner. The manner in which competition has come about with the passage of time, and how cash flow ratios and balance sheet projections have been drawn up, are some of the most defining moments within an organization which is more than willing to draft up a business plan for the wellness of the organization, no matter it is an entrepreneurial one or one that banks a great deal on the already developed business enterprise in essence (Bridge, O’Neill & Cromie 2003). The strategic objectives should always be drawn up whilst keeping the market under a proper check. If the market analysis and research have a solid and clear cut basis, it would be correct to state that success shall touch the feet of the entrepreneurial venture in the end. This in essence shall take the organization forward and bring about sanity within the different ranks in which it is involved on a consistent basis. Part two: In the second section you are required to provide a discussion on the entrepreneurial characteristics identified in the academic literature and reflect on the extent to which these characteristics are to be found within your own skills set. This discussion should include a critical reflection on the way in which you completed the market challenge element of the module. Within my specific skills set, I believe I have it in me to make it big within an entrepreneurial regime. I have for long believed in the fact that entrepreneurs need to be visionary more than something which they are not. Entrepreneurial management is all about handling the affairs of the job in such a manner that there would be more sanity within the ranks rather than bringing havoc for the sake of the business. It is a well-known fact that small business owners find it difficult to kick off their work because they have lack of capital which suggests anomalies to exist within the working domains of the business. The operative measures are thus hit badly and the expansion plans are shelved due to such issues coming to the fore. The need is to pull one’s own self up so that entrepreneur aspects are taken care of in a fair amount (Gannon 1987). Expansion of a small business into other ventures is always filled with risks and it is best advisable for a business to have bootstrap financing within its folds. This will ensure that the business is able to meet its current supply of the capital amount. The need is to delve into measures which will ensure smooth progression of the invested amount into avenues of further growth and development. Bootstrap financing makes the small business’s worth exponentially increased since the borrowed amount is less and thus equity positions do not need to be relinquished at all. Also the high interest rates would be avoided if bootstrap financing is taken into consideration by the small business regimes. There can also be a host of creative options in order to raise the profits without delving into the zones of external sources. Thus the business will gain confidence and the entrepreneur will start feeling good due to these measures (Legg & Hindle 2004). Small businesses depend a great deal on the mannerisms of the entrepreneur itself. This is because he is the ultimate messiah of the business and nearly all the processes are dependent on his decisions. Bootstrap financing is one good option of taking care of the small business discussions. I believe a small business is mostly at the mercy of the person who is responsible for running it. This small business is usually short of any expectations that the business fraternity might have of the same. The owner is the sole person who is responsible for funding the business regime and thus has a major stake within the running stakes. Speaking further on this tangent here, I believe that an organizational culture has changed today than it used to be in the past. People have started to work alongside each other who hail from diversified backgrounds. This calls for an ethnic understanding of the people who have gathered together under the aegis of workplace realms. Earlier, the employees used to work in seclusion, in their own capacities. Now this has changed for the better (Halal 1996). They have started to work in teams and groups which is something that adds to the value premise of business management. Also the leadership domain has been amended for the better in the present times. It has looked to strengthen the basis of giving more emphasis on the core competencies of the people working in the workplace rather than their personal characteristics and likes/dislikes. Within an organization, diversity has come about as a positive force. The trends within the organizations have started to become more focused and pinpointed. Earlier there used to be definitive problems which were non-comprehensible in nature. Now these have changed to become more focused towards the end goals and objectives in matter. In other words, objectivity has entered within the auspices of workplace regimes. However what has happened for the worse is that these trends have started to change quickly than the same used to be the case in the past. In yesteryears, trends stayed on for a certain period of time but now these have turned into fads rather than mere trends. In essence, society has to bear the brunt of the trends that are taking place within the organizations of today. Good or bad is for the organizations to choose for their own selves. A small business is dependent on all the actions taken by the person in-charge and without his sound input this business would not see success touching its feet. I am of the view that the small business requires strict vigilance on a proactive basis. This vigilance must come from the owner himself since I think he is the one who will eventually face the brunt of the actions that he undertakes. Also I am pretty sure that he must remain open to ideas from the people with whom he is conducting business as well as avoid litigation measures in order to exponentially increase on his returns and cutting down on his losses. Being vigilant would actually help him to shape up his troops in the times to come and he would have a better idea of running the business within the due course of time (Economy 2003). Personally speaking, I believe that funds are essential for the sound running of any small business. I think if the owner does not have sound funding mechanisms in place, he will face a tough time when there is economic recession or when he has to pay the salaries to his employed staff. A small business cannot afford lapse in funding and thus has to remain open to bank loans, borrowing from stakeholders and partners, etc. These funds must either be saved by the owner in his personal account so as to meet the problems occurring in a rainy day or be obtained from a special account opened in the name of the small business. I opine that a small business should be conservative in its approach. This, I say because a small business cannot be flagrant with new and novel ideas (Drucker 1985). The business is small and hence the dependents are quite a few so it is best advisable from my side to keep it simple in the beginning, as long as the business does not establish into a huge one. Small business would be done quite a lot of favor if the owner does not become liberal in his approach because I perceive liberty to cut down on its profits in a quick manner (Covin 1999). However the element of risk taking is one that can have affects from both the sides – positive as well as negative in the end. I would suggest from my experience that the owner should be responsible for all his deeds and actions and remain steadfast in his approach towards handling the common, day-to-day affairs of the small business. He is the one who is responsible for all the measures that are being undertaken within the business’ folds and thus he should remain at par with the expectations of the small business. It is this owner alone who could provide the small business with the much needed lift that it needs and it is him alone who could thwart the business’ journey towards safe shores in the coming times. Bibliography Bridge, S., O’Neill, K. & Cromie, S. (2003). Understanding Enterprise, Entrepreneurship and Small Business. Palgrave Covin, Jeffrey G. (1999). Corporate Entrepreneurship and the Pursuit of Competitive Advantage. Entrepreneurship: Theory and Practice Vol. 23 Drucker, Peter F. (1985). Innovation and Entrepreneurship: Practice and Principles. Harper & Row Economy, Peter. (2003). Lessons from the Edge: Survival Skills for Starting and Growing a Company. Oxford University Press El-Amin, Zakiyyah. (2003). Technically Marketing: This Entrepreneur Used His IT Background to Give His Business an Edge. Black Enterprise, Vol. 33 Gannon, Martin J. (1987). Organizational Effectiveness in Entrepreneurial and Professionally Managed Firms. Journal of Small Business Management, Vol. 25 Halal, William E. (1996). The Rise of the Knowledge Entrepreneur. The Futurist, Vol. 30 Harper, David A. (2003). Foundations of Entrepreneurship and Economic Development. Routledge Legg, J. & Hindle, K. (2004). Entrepreneurship: Context, Vision and Planning. Palgrave Macmillan Rogers, Edward S. (2001). Lesson from an Entrepreneur Who Knows about Risk, Loss and Winning. Canadian Speeches, Vol. 14 Read More