Entrepreneurship
Entrepreneurship
Entrepreneurship
The Entrepreneur
Traits to be a manager
- Skills
o Communication
o Decision-making
o Problem-solving
- Discipline
- Realistic
- Strategic
- Leadership
- Implement the vision
Lisa Mackintosh
- A Professional Manager
o In hospitals, the heads were the doctors but were later headed by managers
o Manny Pangilinan
The first one to head a hospital without the degree
- Starting a business is riskier than joining a profession
- She compliments Sara Norton but they did not always see eye to eye
Weekend Homework
- Read again the case
Quiz on Monday
Homework:
Rudimentary – undeveloped or basic form of something
Merit – be worthy of attention
Alienate – isolate or lose interest
Overestimate – to form overly high estimate
Stake – something gambled (maybe a sum of money) on the outcome of a risky venture
Bootstrap – start up with minimal financial resources
What is a business plan?
A written document describing the nature of the business, the sales and marketing strategy, and
the financial background, and containing a projected profit and loss statement
Seaside Organics
- success and failures go hand in hand
- entrepreneurial leadership is applicable to business large and small
- adaptability to each situation and phase (any point in time in the business)
- change is necessary for growth (do not be afraid of change because we live in a dynamic
world
o Forever 21 closed
Managerial decisions
Lack of innovation
They failed to adapt to the online system
Online shopping came about
It’s hard to maintain a brick and mortar store
- learning is a MUST
o continue to learn
Entrepreneurial feelings
- no such thing as a “true entrepreneurial profile”
- entrepreneurs come from a variety of (backgrounds):
o educational backgrounds
o family situations
o work experiences
Henry Sy:
Came from China
His bad luck (Mercury Drugstore) turned into motivation
Find opportunity in any situation in life
“make use of wherever you are in”
Locus of Control
- An attribute indicating the sense of control that a person has over life
- Question whether they will be able to sustain the drive and energy required not only to
overcome inertia in forming something new but also to manage the new enterprise
o That’s why Sara hired Lisa
Seaside Organics
- Organic skincare
o Much more expensive because of the special ingredients
o Just like the organic meat
It’s hard to claim its organic
Because the food they feed the animals have to be organic as well
No to organic cosmetics
- Focus on existing
- More research on the development of the new one
- Expand:
o Distribution
o International
o Existing products
- Avoid market confusion
- Recession or delay market
- Skincare > cosmetics
- Lisa struggles with the
o Recession
o Distribution and focus on the skincare
o The want for the cosmetics
o Supermarkets
don’t sell expensive cosmetics
maintenance of the shell life of organic cosmetics
o they have not mastered the marketing of skincare
Feelings about
- need for independence
o being one’s own boss
one of the strongest needs of an entrepreneur
- need for….
Risk taking
- whether financial, social, or psychological
o part of the entrepreneurial process
o financial: losing money
o social: missing out on social events, being shunned by their friends or being
embarrassed of them
o psychological: shame of failing
entrepreneurs bringing something new are usually arrogant or proud
because the need it to rise and excel
- many studies show a general propensity for risk taking
o risk taking is indeed one aspect of being an entrepreneur
o they also take calculated risk
Motivation
- what causes people to do something
o Independence
o Money
o Job satisfaction
o Achievement
o ….
Role Models and support systems
- Role model
o Individuals influencing an entrepreneur’s career choice and style
- Moral support network
o Individuals who give psychological support to an entrepreneur
- Professional support network
o Individuals who help the entrepreneur in business activities
Entrepreneurship
- The process of creating something new with value by devoting the necessary time and
effort, assuming the accompanying…
Basic Aspects
- Creation process
- Requires the devotion of the necessary time and effort
- Assuming necessary risks
- Rewards
Creation process
- Creation of something new of value
o For the entrepreneur
Entrepreneurs frequently are not the actual inventor
o For the audience for which it was developed
Move to a business concept that is market-centered and creates new
sources or forms of value
Something to answer a certain need o whatever is lacking
Time and effort required
- Significant amount of time…
Risk
Rewards
- Independence
- …
Opportunity
- Entrepreneurship is opportunity-driven behavior
o Not resource-constrained behavior
- We are all surrounded by dozens of opportunities, we just do not see them or act on them
- The pursuit of opportunity makes one more “opportunity aware”
o A mistake can be an opportunity just like post it
Impact
- Entrepreneurs are the innovators and risk-takers in business. They:
o Introduce new products
o Apply new and improved business methods
o Create value
- Entrepreneurs play a critical role in our economy and add immeasurably to our welfare.
John Q. Inventor:
- PhD in Physics
- Created in 1980s
- Secured a patent
- An aspiring entrepreneur
- Works in IBM (business) but a scientist
- Product: cardboard snowplow
o Waterproofing
o Different sizes
- What are the entrepreneurial ideas that came to inventing this product?
o Motivation: personal
He hated shoveling
o Alternative products were expensive
Shovel: 40 x 3 = $120 (breakable)
Service: $150
Snowblower: $250 (dangerous, still cold, breakable)
o Personal + alternative products = cardboard snowplow
- He setup an appointment with a buyer
o You have to prove that there is demand
- Selling proposition’
o Cheap
o Reliable with the modifications
- Resources needed
o #1: Operations
Production
Waterproofing
Different sizes
Packaging
Suppliers of the materials
Manpower (also personnel or personal)
costs
o #2: Marketing (make sure to look at the end user)
Advertisement
Packaging
Distribution
Pricing
Discounts
o #3: Financial
Investors
Pricing/ discounts
Costs
Unique Package
- “Kaleidoscope thinking”
o We are all surrounded by the same things
o Entrepreneurs just put them together in a slightly different way
o The unique package should include:
Product innovation
New distribution approach
Alternative service delivery method
Different way of packaging
Impact of Entrepreneurship
- Entrepreneurs are the innovators and risk-takers in business. They:
o Introduce new products
o Apply new and improved business methods
o Create value
- Entrepreneurs play a critical role in our economy and add immeasurably to our welfare.
- Not confined to new start-up business
o Can be applied to anything
- A managerial focus that emphasizes the creation pf new business through:
o Innovative, opportunity-oriented management
- Can be applied to:
o Larger business: Intrapreneurship
o Not-for-Profits and Social Issues
especially these because they don’t earn a lot but the social influence is
greater
Types of start-ups
- lifestyle firm
o small venture that supports owners and modest growth
o caters to a certain style of living
o its not for the mass market
o answers a certain need in our lifestyle like
the organics
starbucks (they sell the experience)
milktea (u can survive without it, it can comes and goes)
salon
spa
belo
gym
o its not for everyone
o modest growth
o (30-40 employees, $2M)
- foundation company
o from research and development that does not go public
o no commercial viability (cardboard)
o like
the cardboard
data analytics or research companies
o does not go public
o 40-400 employees
- high-potential venture
o high growth potential and gets great investor interest
o like
malls
real estate
travel tours
Instagram
- gazelles
o very high growth ventures
o these animals move swift but graceful, you don’t even notice the distance
o like
gas
technology-based items and services
call centers
Entrepreneurial Vehicles
- Garage
o Steve jobs
o Bill Gates
- Start-up ventures (from nothing)
o Airbnb (Air bed n breakfast): rents houses
o Grab
They don’t own the cars
Make commission
They don’t have a product
They only have technology
- Acquisition of an existing business
o Like seaside organics
- Purchase franchise
- Joint venture or venture team in a large corporation, mergers and partnership
o When two businesses join together
o Like the acquisition of Coffee Bean by Jollibee
Jollibee wants to be the number one branded restaurant in the world by
2025
- Non-profit organization
o Like concerts for non-profit organizations
- Family business
o Natural birthplace of future entrepreneurs
o Doctoral familia
- Process through which a new venture is created by an entrepreneur
- 4 distinct phases
o Identify and evaluate the opportunity
o Develop business plan
o Determine the resources required
o Manage the enterprise
Resources Required
- Determine the resources needed
- Determine existing resources
- Identify resource gaps and available suppliers
- Develop access….
Assignment: Wednesday
- Identify
- Look for an article on an entrepreneur that you want to
write on, doesn’t have to be from an article
- Short
- One page
- Doesn’t have to be a famous or successful entrepreneur
- What made her a successful entrepreneur or fail in that
venture
- No font size 6
- SIZE 11, Times Roman
- No need for the article
- Just the name and venture
- Can be a business product or a business or the person?
What is entrepreneurial about this product, business or
person?
- Last paragraph: what you have learned from that product,
business or person? Basically, a personal reflection of it
Day three: December 10, 2019
Group 3: Marabe, Aguaviva, Casquejo, Ygnacio, Tan (Trading Industry)
Small business venture 2 groups per category
- Food
- Souvenir Items
- Entertainment
Level of Sophistication
- Depends on two things
o How much money do you need?
o How badly do you need it?
Business Plan
- Table of contents one page only
Summary Page
- Write in paragraph format
- Location of the company: Grade 12 classroom
- Present status of company
Marketing Plan
- The introduction ppt will change after going through the marketing, financial, and
operations ppts.
- Market research is needed
- Know your market
- HOMEWORK: look into how much posters cost = Php 45
Market research
- Use the internet to research
Industry report
- Not needed tho
- From gov’t or other industries
- Beneficial info, useful to your company
Michael Porter’s Industry Analysis
- Probability of them eating into your business and reducing your sales
- Supplier
o They can start their own similar business
o Your production depends on them
- Potential Entrants
o Businesses easy to get into:
Milk tea
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Chicken Business
- Substitutes
o Similar products
o Coke and Pepsi (competitiveness)
Substitute: juice, healthy drink, water
Biggest competition is water
o Coffee Shops and Milk tea Shops (competitors)
- Buyers
o If you don’t give discount, they will go to another store