Principles of Management Learning Session # 28 Dr. A. Rashid Kausar

Principles

of

Management

Learning Session # 28

Dr. A. Rashid Kausar

Re-cap

of

Session # 27

The Nature of Entrepreneurship


Entrepreneurship:The process of planning, organizing, operating, and assuming the risk of a business venture.

Entrepreneur:Someone who engages in entrepreneurship.



Small Business:

A business that is privately owned by one individual or a small group of individuals; it has sales and assets that are not large enough to influence its environment.

Strategy for Entrepreneurial Organizations


Three Basic Strategic Challenges:

1.Choosing an Industry in

which to compete.



2. Emphasizing Distinctive Competencies.

3. Writing a Business Plan.

Writing a Business Plan


A Business Plan is a document that summarizes the business strategy and structure.

It should include:



1. Business Goals and

Objectives.



2. Strategies used to achieve

these goals and objectives.



3. A plan of HOW

the entrepreneur will implement

these strategies.

1. Decide to go into business2. Analyze yourself3. Choose product or service4. Research the market5. Forecast sales revenues6. Select site7. Develop production plan

8. Develop marketing plan 9. Develop organizational plan10. Develop legal plan11. Develop insurance plan12. Develop accounting plan13. Develop financial plan14. Write cover letter

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

1 2 4 7,8 13 14

6

5

11

10

9

Weeks

Writing a Business PlanA PERT Diagram for Business

Planning

Writing a Business PlanA PERT Diagram for Business

Planning

12

3

Financing the New Business


1. Personal ResourcesUsing your own money and

money borrowed from friends and relatives to finance the business.



2. Strategic AlliancesPartnering with established firms such as suppliers in a

mutually beneficial relationship.


Financing the New Business 3. Lenders

Obtaining funding from traditional lenders (e.g.,

banks, independent investors, and government

loans).



4. Venture Capital CompaniesGroups of small investors who provide capital funds to small high-growth potential start-up firms in exchange for an equity position (stock) in the firms.

The Role of Entrepreneurship in

Society


SocietyJob Creation1. Small business creates many

new jobs in Pakistan.

2. Industry sectors dominated by small business have added the most jobs.


Society


SocietyInnovationHistorically, major innovations are as likely to come from small businesses as from large firms.

Promoting InnovationPromoting InnovationIntrepreneurship:

Encourage the take-up of entrepreneurship roles by organisation members e.g:

Idea generator

Idea champion

Idea sponsor

Promoting InnovationPromoting Innovation

Innovation is critical to

various differentiation

strategies.

Forces for Change & Innovation:

External: Response to opportunities and threats from the market, regulators and other elements of the environment

External: Response to opportunities and threats from the market, regulators and other elements of the environment

Forces for Change & Innovation:

Internal: Strategy & plans, employees’ behaviour, change & innovation decisions,

cultural change, restructures, technological & leadership change

Internal: Strategy & plans, employees’ behaviour, change & innovation decisions,

cultural change, restructures, technological & leadership change

Promoting InnovationPromoting Innovation

Structure’s ability to support strategy can be enhanced by using structural means to encourage innovation.

Principles of Management Learning Session # 28 Dr. A. Rashid Kausar

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Transcript of Principles of Management Learning Session # 28 Dr. A. Rashid Kausar