Introduction to Managing Skills and Entrepreneurship
Entrepreneur is the one that initiate the business unit in the competitive market scenario while taking the risk. They are one that creates or form the business plan for the unit, while he also acquire the various resources that is human, financial, technological etc (Lussier, Corman and Kimball, 2014). so that they can be fully accountable for the success and failure of the enterprise in the competitive market. The individual rendering service in the organization will become an entrepreneur if the management continuous focuses on the development of their employability skills and ability.
For starting the new venture in the contemporary market place the business unit require the personnel that features the skills and ability to launch and initiate the growth of the firm by taking risks and effective decision making. In the contemporary technological advanced market there is high opportunities in the electronic market. Customers often prefer to buy the smartphones as per the innovative features and functions. As, keeping this in mind the entrepreneur start up the Electronic mart in the UK market to meet the technological requirement of the market customers. With the increasing trend of the selfie and Groupfie the Electronic mart will initiate in manufacturing the phones with the name M7 that features the high quality camera for the customers with the high quality touch.
The present report mainly focuses on the starting up the new business plan while determining the opportunity gap so that they can successfully established the businesses. While, the report will also focuses on the various requirements as well as the skills of the management or the entrepreneur that will assists on making business successful. While, it also determine the factors by which they can manage the business risk to avoid the issues or harm in the future.
New venture concept, the opportunity gap in the market and feasible ways
The entrepreneur is the one that grab the opportunities and take the risks for establishing the new business in the competitive market (Jockenhöfer, 2013). He takes the risks to start up the new venture in the area that features the higher opportunity for attaining the success. The individual rendering service in the organization will become an entrepreneur if the management continuous focuses on the development of their employability skills and ability. The entrepreneur after analysing the market scenario find out that with the increasing technological advancement will result in manufacturing the highly advanced and innovative phones that meet the requirement of the customers. For this purpose the entrepreneur introduce the starting up of the new business namely Electronic mart with their new mobile product smart M7. The concept of opening the new venture include that with the technological advancement the customers prefer the phones that have the feasible touch and the quality camera. In the market research it is being determine that customers mainly prefer these two features while buying the smart phones (Baron and Shane, 2007). So, the Electronic mart company identify the opportunity in the market and introduce their new product in the market so that they can meet the requirement of the customers. The concept of establishing the new venture is that with the increasing demand of quality camera and the advanced touch screen so that with the one touch it should be accessible for the customers to handle the device. The Electronic mart company will mainly target the young and adult customers as, they mostly prefer the new smart phones with the changing technology and features of the smart phones.
According to the Kariv (2011) it has been determined that the there are many other companies that are involved in the same business that is manufacturing and supplying the smart phones in the market so that they should meet the requirement of the customers. There are several competitors that exists in the market and give the tough competition to the Electronic mart company. The company has been established their business in manufacturing the quality smart phones for their customers (Stokes and Wilson, 2010). The new venture in the market can be determine the opportunity gap in the market by the following ways that is:
Conducting market research: The electronic mart company can determine the opportunities gap in the market by conducting the market research. Initially while setting up the business, the market research will benefit the company in providing the necessary information regarding the expectations and the needs of the market customers (Gray, 2002). As, the customer mainly prefer to buy the products that are new in the market and that features the distinct application and the services. Market research also help the Electronic mart company in determining the requirement in the smart phones so that they should focus on the requirement and manufacture the quality products so it can contribute to the success while launching in the market.
Review the competitors position and strategy: While, the Electronic mart company also determine the opportunity gap in the market by reviewing or observing the competitors position (Katz and Green, 2007). By reviewing the competitors product and their product features will help the electronic mart company in determining the gap in the market. knowing the weakness of the competitor company will result in identifying the gap and it also highlight the requirement in the market that has not been met by the competitors.
All these ways of determining the opportunity will help the Electronic mart company in establishing the new venture (Agbim, 2013). While measuring the opportunities it can be said that the new business of the electronic is feasible in nature. With the continuous up gradation of the technology will also ensure the launching of the new smart phones that help the customers in meeting their requirement. While, the new business is also feasible as the business unit mainly focuses on manufacturing the product that will feature the high quality and high lens camera, accessible touch screen with light in weight so that it may attract all the customers in the market (Dingee, Haslett and Smollen, 2000). Thus, the launching of the new smart phone is always acknowledged by the customers as with the technological advancement customers prefer to buy the product that matches their style and status so they keep changing their phone with the introduction of the new mobile in the market scenario.
Requirements for the new business for the start up with the management skills
For establishing the new venture in the electronic market is quite profitable for the Electronic mart. As, with the continuous up gradation of the technologies there is huge demand of the new smart phones and the tablets in the market so the customers can move ahead with acquiring the new smart phones and mobile phones (Fletcher, 2004). For starting up the new venture the certain requirements are:
Financial resources: One of the most important resources that is being require by Electronic mart to establish the business start up is the huge financial resources. Financial resources help the business unit in establishing their premises and the processes so that they should render the quality product in the marketplace (Oakey, 2003). While, the financial resources also assist the entrepreneur in acquiring the various other material and resources that will help in accomplishing the goals and objectives. These resources often help the entrepreneur in raking the risk and filling the gap within the competitive market scenario. As, the new venture Electronic mart introducing their new product that is M7 in the market with the high quality camera and the effective touch screen they require the huge finance for establishing the premises and various department like R&D that require huge cost. Hence, the requirement of the financial resources are essential for the new business start up (Beaver and Prince, 2002). The company must secure the funding for starting up the business from the various financial institutions or also ensure the funding from the private investors that invest their find in the company for starting up the electronic business.
Human resources: While, the another requirement for establishing the Electronic mart as a new venture in the market include effective and adequate human resources in within the business unit that may render the services in manufacturing the quality smart phones for the market customers. As, the new venture mainly focuses on enhancing the quality of the camera as well as the touch of the mobile phone to attract the market customers (Sambasivan, Abdul and Yusop, 2009). The company mainly hire the qualified personnel with the various skills and knowledge about the operating systems, camera that will be best suited for the new product M7. Human resources will also contribute their best in manufacturing process as well as marketing the new product in the market.
While, there are certain management skills that entrepreneur must possess for for making the business successful. The role of entrepreneur is essential in the establishing the new business as they mainly focuses on the starting the Electronic mart in the market (Wilkinson, 2015). For establishing the new venturing in the electronic segment the role of entrepreneur will focus on the following skills and abilities that may lead to contribute the success of the electronic mart. These are:
Customer focus: The entrepreneur must features the skills that mainly focuses on the customers to whom they are rendering the services. The entrepreneur must features the skills to ficus on the customers requirement and their needs so that they should manufacture the product according to their requirement (Hisrich, 2012). As, the Electronic mart mainly target the young customers that mainly prefer to change the model from time to time to adopt the current technology.
Planning and organizing: Another management skills that is being needed by the Electronic mart to make their business successful is the proper planning as well as the organizing the tasks and activities that will assists the entrepreneur in attaining the objective that is manufacturing the smart phones (Kariv, 2011). Planning and organizing include organizing the activities and resources in the effective manner that the entrepreneur might complete all the tasks and activities in the given time frame. The successful entrepreneur features the management skills by conducting the accurate market research and frame the business plan according to that so that it will result in growth and development (Jockenhöfer, 2013).
Time management: The entrepreneur to make the business successful in the competitive environment must ensure the time management by measuring and prioritizing the activities of the new venture Electronic mart so that they should timely and accurately accomplish the tasks. While, through the time management skills the entrepreneur should also ensure short term and long term planning for establishing the activities of the new venture so that they should contribute to the success of the business unit (Stokes and Wilson, 2010).
Managing people: The entrepreneur might also present the skills and abilities of managing the people and human resource within the venture so that they should properly engage in the activities of the Electronic mart. This will tends to ensure the proper contribution of the employees for attaining the success in the competitive market environment (Lussier, Corman and Kimball, 2014).
Proposed business model for explaining how the new venture will work
Business model is the structure that mainly define the function, objectives and the various activities that business does to achieve the objective and the success in the competitive market scenario (Nieuwenhuizen, 2008). While, it can be also stated that the business model indicate the various activities that shows that how the Electronic mart will convert the input into the desired output that is smart phones that they sell among their market customers. Business model is being termed as the crucial section of the strategy that provide that various information about their core activities, products, competencies, management, partners etc. the Business model of the electronic mart include:
Key partners: The key partners of the Electronic mart company include the various partners by whom they purchase the raw material, electronic items etc. key partners are essential for the new venture to sustain in the competitive market scenario (Oosterbeek, Van Praag and Ijsselstein, 2010).
Resources: Resources of the Electronic mart include the various buyers, suppliers to whom they purchase the material etc. without the resources the company will not accomplish the desired objective that is manufacturing the smart phones as per the requirement of the customers. While, the key resources of the company also include financial resources and human resources that help the entrepreneur in establishing the new venture successfully (Katz and Green, 2007).
Value proposition: Value proposition is refer to the services that the company is rendering to solve the problem of the market customers. As, per the market research the entrepreneur mainly focuses on providing the high quality camera and the accessible touch to the market customers so that they should enhance the sales of the new product in the new market. While, the company is also rendering the smart features in their new product that is smart M7 that matches the requirement of the market customers (Agbim, 2013).
Distribution: The Distribution refers to the channel through which the new venture Electronic mart will sell their product smart M7 to their market customers. As, the business unit new in the market they will initiate the personal selling or selling through their authorized location for serving the market customers. As, the company is new in the market the company ensure less investment in the distribution channel (Dingee, Haslett and Smollen, 2000). While, in the future company can opt the distribution of their product through the online medium.
Costs: The business model also include determining the cost structure that is what are important costs that help the company in attaining the success. The cost in the business unit is associated with the R&D department, as the company need to invest the huge fund in research and development department to innovate the new and distinct feature for the smart phone so that Electronic mart should gain the competitive advantage over their rival companies (Fletcher, 2004).
Target customers: Target markets are also essential for the company so that they should adequately manufacture the correct product according to their expectation. The Electronic mart launches their new product that is smart M7 phone that features the high quality camera and the smooth touch that can easily attract the market customers. The company mainly implement these two feature to properly target their market customers. The target customers of the Electronic mart include mainly youngsters and the adults of the market. As, these customers often prefer to buy the new and trendy phones with the up gradation of the technology (Oakey, 2003).
Revenue stream: The business model also include the revenue stream through which the new venture Electronic mart will generate the revenue that will benefit the company in the future or in the upcoming years for launching the new products. The revenue streams through which the company generate the income include through initiating the promotional campaigns, promotion through internet etc (Beaver and Prince, 2002).
Core competencies: The Business model also include the core competencies of the Electronic mart that help in gaining the competitive advantage over their rival companies. The core competencies of the new venture Electronic mart include that they highly invest the finance in their R&D department that result in launching the quality product in the market. While, the another core competencies of the Electronic mart include that they continuously upgrade the technology in the new smart phones (Sambasivan, Abdul and Yusop, 2009). Another core competencies of the company is that they feature the slimmest phone that can be easily carried by the customers. Hence, these are the core competencies of the Electronic mart product that possess unique features that often result in gaining the competitive edge in the market.
It is being identified that the financial projection is important for the company and that must be detailed in the month so that entrepreneur should not face the financial risks while introducing the new product in the market (Wilkinson, 2015). While, the proper financial projection will benefit the Electronic mart in avoiding the unexpected expenses, additional costs for the material etc. Mainly, the Electronic mart company focuses on the four types of the financial projection that is balance sheet, cash flows, sales forecasting and Expense budget. From the above frame business model it can be said that the new venture electronic mart will properly work in the market to achieve the positive financial result in the next 2-3 years. As, the company is new in the market but they have strong presence in the market because their product features the distinct and unique quality that attract the market customers to purchase the products (Hisrich, 2012).
Ways proposed to manage the business risks
Risk is being refer to the hazard that is the they possess the certain chance that business that take the risk will not receive any return in their investment that they have made in the business unit. The entrepreneur is the one that take the risk and establish the new business with the new product in the new market. As, market us uncertain while, the customers also keep changing their tastes ans the preferences. Electronic mart as established in the highly competitive market that features the certain competitors or rival companies (Lussier, Corman and Kimball, 2014). The various types of the business risk for the Electronic mart while, introducing their product that is smart M7. These are:
Financial Risks: The newly start up business in the market will also often face the financial risks. As, the newly entrepreneur fail to to plan the budget for the Electronic mart company. while, they also won't plan the financial projections that is predicting the future gross or the revenue and expenditure of the organization. Mainly, the new business require the inventory, equipment, raw material etc. to gain the desired output and for this the company need to budget properly (Jockenhöfer, 2013).
Reputation Risks: The company take the adequate time for building the reputation of the enterprise. As, the new opened venture might feature the reputation risk in the initial stage. Of the new enterprise launches the new product in the market with the high price strategy. The customers, if post the negative about the company on the internet site then it may leads to attain the loss for the company (Manjunath, 2010). So, initially the Electronic mart should maintain the adequacy pricing strategy, promotional strategy so that they can enter in the market.
Management Risks: While, the entrepreneur starting the new venture that Electronic mart will initially face the management risks. As, the entrepreneur is new to the situation and possess no experience in running the business will hire the incompetent manager will lead to attain the risk for the Electronic mart company. While, the ineffective manager will also result in effecting the sales efficiency of the product, improper control on the quality etc (Kariv, 2011).
Proposed ways to manage the business risk
Financial projection: Financial projection is the effective proposed way for the Electronic mart company for managing business risk. While, it may also termed as the key to success of the new venture as it help in predicting the accurate image of the business unit in the future. Developing the financial projection will very helpful in contributing to the success of firm in the market (Baron and Shane, 2007).
Risk management: While, the another proposed way for managing the business risk of the Electronic company is to ensure the risk management techniques within the unit. The risk management process assist in identifying, assessing and prioritizing the risks so that management can take effective measure to avoid the risk. For managing the risks in the future event the Electronic mart company can adopt the several strategy that is risk transfer, risk avoidance, risk assumption etc (Nieuwenhuizen, 2008).
Conditions which must prevail to avoid failure
There are several types conditions can occur which leads to failure of business owing to this, management of Electronic Mart have to take care of several specific factors. In this regards, market research need to be conducted thereby company can be able to gather date related to preferences and liking of customers. Proper planning also need to be done for market entry and development of product. With this, company can gather data related to market thereby they can execute the plan in an effectual manner (Stokes and Wilson, 2010). It facilitates to produce product on the basis of their requirements. Further, company need to analyse the marketing condition in term of competitors' strategy, investment and potential risk that aid to give certainty about future business activities. With this, company can be able to bring modifications in the existing product so as to attract customers and meet their requirement in an effectual manner. On the other hand, environment need to be analysed with internal as well as external effect that assist management to formulate effective strategies (Oosterbeek, Van Praag and Ijsselstein, 2010). For example, external environment will provide information related to government policies and political factors thereby company can plan accordingly. It leads to reduce the risk to a great extent. Furthermore, organization need to implement the test marketing that facilitates to take review of customers. With this, Electronic Mark can be able to change the product as per the review of customers. It leads to ensure long run success of company in the marketplace.
Further, internal assessment of company can be done by the help of SWOT analysis that provides evidence about the strength and weaknesses of company in comparison to its competitors (Gray, 2002). It helps Electronic Mart to overcome its weaknesses and provide training to workforce in the same direction. It leads to create competitive edge of the fir in the marketplace and deliver good quality of services to large number of customers. On the contrary, Budgeting need to be made with proper analysis that facilitate to control the expenditure and maintain the rate of return for company. It assist company to increase overall rate of return and ensure successful entry in the market. It can be critically evaluated that, company must ensure inclusion of competent personnel along with strong marketing strategy. Other than this, organization need to be keep enough liquidity to enuresis consistent flow of production and credit policy should not be adopted at the initial stage (Katz and Green, 2007). This makes it possible to bring changes in the workplace with immediate effect.
The report concludes that, several types of risk can hamper business during the initial stage or at the time of maturity. Owing to this, organization keep into account the managerial and financial risks in order to give certainty about future business activities. Further, financial and human resources are the most important requirement for the new start up of business. The financial resources help the entrepreneur in getting the different material and resources that will assist the business unit in accomplishing the goals and objectives. While, the human resource also help the organization in manufacturing the quality product for the market customers. It assist management to plan for the same in detail that aid to start operation of new venture in give time span. It can also be said that, proper marketing research is done to avoid failure for the new business which leads to provide product on the basis of specification of customers. The report has also concluded the various proposed ways that assist the entrepreneur in managing the business risks that is the entrepreneur must focus on the financial projection, forecasting the sales, expense budget etc. While, the report has focus on the various requirements as well as the skills of the management or the entrepreneur that will assists on making business successful.
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