Entrepreneurial Management - IV
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Transcript of Entrepreneurial Management - IV
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Entrepreneurial ManagementClosing the window: sustaining competitiveness
Manu N Widge
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Where to look for Growth Opportunities: Penetration Strategy
Strategy to grow by encouraging existing customers to buy more of the
firms current products
Market Development Strategy Strategy to grow by selling the firms existing products to new group of
customers
New Geographical Market
New Demographic Market
New Product Use
Product Development Strategies
Strategy to grow by developing and selling new products to people who
are already purchasing the firms existing products
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Where to look for Growth Opportunities: Diversification Strategy
Strategy to grow by selling a new product to a new market
Backward Integration - A step back (up) in the value-added chain
toward the raw materials
Forward Integration - A step forward (down) on the value-added chain
toward the customers
Horizontal Integration - Occurs at the same level of the value-added
chain but simply involves a different, but complementary, value added
chain
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Entrepreneurial Management Implications of Growth for the Firm:
Pressure on existing Financial Resources
Pressure on Human Resources
Pressure on the Management of Employees
Pressure on the Entrepreneurs Time
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Overcoming pressures on Existing Financial Resources:Managing Cash Flow
Managing Inventory
LIFOInventory costing method whereby last items into
Inventory are first items out FIFOInventory costing method whereby first items into
Inventory are first items out
Managing Fixed Assets
Managing Costs & Profits
Taxes
Record Keeping
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Entrepreneurial ManagementOvercoming pressures on the Management of
Employees:
Participative style of ManagementInvolves others in
the decision-making process
Establish Team Spirit
Communicate with Employees
Provide Feedback
Delegate some Responsibilities to othersProvide Continuous Training for Employees
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Basic Principles of Time Management: Principle of DesireRecognition of the need to change personal
attitudes and habits regarding the allocation of time
Principle of EffectivenessFocus on the most important issues
Principle of AnalysisUnderstanding how time is beingcurrently allocated, and where it is being inefficiently invested
Principle of TeamworkAcknowledgement that only a small
amount of time is actually under ones control and is taken up by
others
Principle of reanalysisPeriodic review of ones time
management process
Principle of prioritized planningdivision of tasks by the degree
of their importance & then allocation of time to each tasks7
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How can External Parties help grow business Franchising -It is a arrangement where by the manufacturer or
sole distributor of a trade mark product or service give exclusive
rights of local distribution to independent retailers in return for
their payment of royalties and conformance to standardized
operating procedures.
Joint Ventures- It is a separate entity involves a partnership
between two or more active participations, sometime also called
strategic alliances.
Acquisitions- It is the purchase of the entire company or part of
a company, by definition, the company is completely absorbed
and no longer exists independently .
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How can External Parties help grow businessMergers- A merger or a transaction involving two, or possibly
more, companies in which only one company survives is
another method of expanding a venture. A key concern in any
merger is the legality of the purchase.
Leveraged Buyouts- A leveraged buyout (LBO) occurs when an
entrepreneur (or any employee group) uses borrowed funds to
purchase an existing venture for cash. Most LBOs occur because
the entrepreneur purchasing the venture believes that he or
she could run the company more efficiently than the current
owners.
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Thank You & All the best to youfor your life ahead, Thanks forbeing a lovely bunch of students
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