Days of My Years

Contributed by

E. Sarathbabu

Founder & CEO, Foodking

Presented on 23rd Feb 2008 at

Bharathiar School of Management & Entrepreneur Development (BSMED), CoimbatoreA NEN Member Institute

PART -- I

Entrepreneurship – a Mission with burning desire

Entrepreneurship- Rational Fears

• I want safety, I’m risk averse– Uncertainty about next paycheck– What safety does corporate life provide?– What are the essential traits needed in the personality?

• How do I get the magic idea – When do I stop theorizing and get on with the implementation

• What will my parents say, how do I go against what people generally do– If many are doing it, then surely it is more difficult to get profits,

and go to the top.• Can I develop the heart for entrepreneurship, how long should I try,

what are the exit options– How do I jump of the cliff

Definitions (Carland et.al, 1984)

•Establishes and manages a business for principal purpose of furthering personal goals•Business primary source of income and consumes majority of one’s time and resources•Business perceived as extension of personality, family needs, desires

•Establishes and manages a business for principal purpose of profit and growth

•Characterized by innovative behaviour

•Will employ strategic management practices in the business

Small Business ownerEntrepreneur

Definitions (Carland et.al, 1984) Contd.,

•Independently owned and operated•Not dominant in its field.•Doesn’t engage in any new marketing or innovative practices.

•Engages in behavior that is aimed at profitability and growth.

•Business characterized by innovative strategic practices

Small business ventureEntrepreneurial venture

What makes an entrepreneur

The factors can be classified as • Personality factors

– Motivation and emotion– gives the drive and purpose and self confidence (whybrow 1999)

– High need for achievement( Roberts 1991)– Competitiveness – main motivator– Need for independence

• Behavioral characteristics( kuratko and hodgetts 1998)– perseverance, determination, take calculated risks, creativity, honesty and integrity, initiative, taking responsibility

What makes an entrepreneur Contd.,

• Environmental factors( Roberts 1991)– Family background – fathers career, inheritance– Education – not important, start at early age

– Work experience– important

• Action factors– what entrepreneurs do– Are creative and innovative– Spot and exploit opportunities– Find resources to exploit opportunities– Manage risk, create capital– are good net workers, determined

Types of Opportunities

• Creation of new products

• Discovery of new geographical markets

• Creation or discovery of new raw materials

• New methods of production

• New ways of organizing

Entering New Businesses

• Strategic Questions– Which product market to enter– How to avoid failure and maximize gain

• Selection Framework– Newness of Technology – Familiarity of Technology– Newness of Market– Familiarity of Market

Categorization: Dimensions

EnvironmentVenture capital availabilityPresence of experienced entrepreneursTechnically skilled workforceAccessibility of suppliersAccessibility of customers or marketsGovt influencesProximity of universitiesAvailability of land or facilitiesAccesibility of transportationAttitude of the area populationAvailability of supporting servicesLiving conditionsOccupational & industrial differentiationMore recent immigrants in populationLarge industrial baseAvailability of financial resourcesBarriers to entryExisting competitorsSubstituteBargaining power buyers/suppliers

OrganizationOverall cost leadershipDifferentiationFocusThe new product or serviceParallel competitionFranchise entryGeographical transferSupply shortageTapping unutilized resourcesCustomer contractBecoming a second sourceJoint venturesLicensingMarket relinquishmentSell off of divisionFavored purchasing by govt.Governmental rule changesProcess

Locate a business opportunityAccumulate resourcesMarket products and servicesProduce the productBuild an organizationRespond to govt and society

IndividualsNeed for achievementLocus of controlRisk taking propensityJob SatisfactionPrevious work experienceEntrepreneurial parentsAgeEducation

Types of Plan

• Benefits of Planning– Introspection, External factors, Goals & Objectives

• Both plans are equally important and one is not a substitute for the other– To accomplish objectives of investment plan, and hence obtain

funding working plan has to be in function– Without funding, the working plan cannot be implemented

Gain access for financingStrategic, Functional, Tactical

Investment PlanWorking Plan

Creating entrepreneurs in India

• Efforts to foster entrepreneurship

• Government efforts—post independence

• Support for small businesses

• Institutions involved- – NIESBUD– training, dissemination of information—

videos, manuals– PHD chamber of commerce and industry (1905)—

develop entrepreneurial spirit and initiative---- promote small business

– EDII—(1983) –training and skill development programs

References

• Social Entrepreneurs and Catalytic Change -- Sandra A. Waddock, James E. Post

• Creating entrepreneurs in India -- Leo Paul Dana, Journal of small business management—2000

• Opportunities and Entrepreneurship -- Jonathan T Eckhardt & Scott A Shane, Journal of Management, 2003, Vol 29, Iss. 3;p.333

• Entering New Businesses: Selecting Strategies for Success -- EB Roberts & CA Berry, Sloan Management Review 1985)

PART -- II

Challenges faced

• During Childhood– Malnutrition– Poverty- Education

• During College days– Thought to be an alien– Communication– Lack of Family support

Overcoming Challenges

• Exploring within

• Help from Societies

• Few entrepreneurial activities

Thought Process behind starting a New Venture

• Passion to create something on own

• Unemployment problems

PART -- III

Why Food Sector?

• Food Sector in India is mostly unorganized

• Potential to generate large number of employment opportunities

• Food sector in India is largely untapped

Foodking… Current Scenario

March 26th, 2006 – Incorporated “Foodking Catering Services Private Limited”

April 1st, 2006 – “Foodking” was inaugurated by Shri Narayana Murthy, Chairman Infosys Technologies Limited

May 10th, 2006 – Ist Operation startedJune 30th, 2006 – 1st outlet at IIM Ahmedabad was

inaugurated by Shri Bakul H. Dholakia

Foodking… Current Scenario Contd.,

•Currently 180 persons are working for the company

Strategy

• Overall Cost Leadership Strategy

• Cities will be formed as clusters of businesses

• Expanding through franchise route for Snack outlets

Future goals

• Establish an Indian brand for fast food chain

• To be operational in at least major 10 cities in India in 5 years

Thank You!!