ENTREPRENEURIAL VENTURE 7
1.Choose three nonfinancial benefits of entrepreneurship that might beimportant to you. Write a paragraph about each.
Entrepreneurshave the ability to design products or services needed in the market.In this case, one should have the capability to know when the marketrequires the product or a service. (Clifford, 2016). This is alsocritical towards the survival of the business, thus higher returnsfor the entrepreneur.
Offersa chance to explore one’s interests
Startinga business requires a person to have a wide range of ideas to choosefrom. Once the person conceptualizes the idea, an entrepreneur shouldmatch the idea with his/her line of interest. This aspect ensuresthat the entrepreneur engages in activities that are in line with hisinterests. Consequently, making a progress becomes easier hence achance to succeed.
Opportunityto get in control
Owninga business makes the person a leader in the field or the venture. Thedream can only get to the point the entrepreneur wishes. The owner ofthe idea becomes the ultimate mover of the business where they directthe steps required to achieve the best results possible. Being resultoriented, the leader will have the role to see that everything movesin the right direction and have the chance to experiment on the bestmoves for the business.
2.If you were to start a business five years from now, what would beyour opportunity costs? In other words, what is the next-best use ofyour time? How much money could you make working at a job instead?The answer to the last question will give you a rough idea of how tovalue your time when you start a business and have to figure out howmuch to pay yourself.
Fiveyears from now, employment and complacency it brings in one’s lifewould be the main opportunity costs. Too much time for leisure isalso an opportunity cost when one starts a business especially if thebusiness requires adequate attention during the inception stage. Thebusiness may provide approximately 30,000 dollars for the extra timeas a compensation for the sacrifice. Instead of engaging in otheractivities, one can sacrifice for the business which has the capacityto provide such reward.
3.Select and describe an idea you have for a business. Summarize how itcould satisfy a consumer need.
ITsolution for corporate clients is the business idea where the ventureaims to offer consultancy, maintenance, and service of IT system inthe company. The client concentrates on key initiatives thatcontribute to realization of its objective but leaves ICT issues toanother business. The corporate client realizes convenience and lessstress in hiring personnel for the job. There is also eliminationcost of employing staff for ICT work in a business that deals withsomething different.
4.Explain how a business opportunity differs from a business idea.
Abusiness opportunity refers to realistic means available that canhelp an entrepreneur to start a business on a certain determinedcourse while a business idea is the starting point for the businesswhere one evaluates it before implementing. A business idea gives awide range of activities likely to get the entrepreneur going.
Explainhow Michael Simmons and Sheena Lindahl incorporate the Four Ps into acreative, effective, integrated marketing effort.
Empactwas founded as a publishing business where among its aim is makingprofit and sustainability of the business. For the profitability ofthe business, they needed to adopt a strategy that would keep theprice of their products reasonable. This milestone was only viable bybulk selling where they could sell the books in volumes. This ideameant that they could visit schools and youth organizations wheretheir books would be appealing to their clients for their sales. Inorder for the idea to materialize, the team needed to talk to theirclients to give a brief of their books and to appeal to them whichserved as a promotion for their books. The idea brought the pricing,product which is the books, promotion through them explaining to theclients as well as the place which is the schools to complete thefour Ps.
2.What product mix have Empact`s enterprises developed?
Theenterprise has two products in the market which are selling thepublished books and having academic talks with the groups. Duringtheir sales tours, the group saw an opportunity which they decided toexplore on. The realization that they could be paid for holdingentrepreneur talks with the groups they interacted with, broughtforth a new idea that they would soon venture into and explore. Thisidea gave birth to Extreme Entrepreneurship Tour which would givethem the opportunity to engage other successful entrepreneurs as wellas selling their books in the process.
3.How are its services delivered (through what channels)?
Thecompany uses direct sales for their products where they engage theintended customers in entrepreneur talks based on the personalsuccessful stories. The talks are meant to expound on the topicscovered in their books thus a boost for the sales. They also engagetheir groups through internet marketing.
4.Discuss the company`s global marketing (check its websites, ifnecessary).
Thecompany uses its internet marketing link as well as referrals fromtheir previous tours to reach its global market. Empact has deliveredits educational tours in more than 120 campuses across the UnitedStates of America.
5.What was Empact`s first marketing effort?
Empactstarted with selling books to any potential customers where theydiscovered that their strength was in selling the books in bulk. Theteam visited schools and colleges where they would engage the buyersthrough talks after the purchases of their books. They would have adirect sales approach for profits as well as maintaining theirbusiness.
6.What was the result of this effort?
Theresultant of this strategy was the birth of EET where they saw thepotential of selling their time in entrepreneurship talks. Theyremodeled their business to what became a big break into theircareer. This break brought a huge network of young entrepreneurs whowould give talks and encourage other young minds to break intobusinesses (Hisrich,2011).
M2.Case Analysis – SPANX: Idea to Entrepreneurial Opportunity
1.What benefits of entrepreneurship does Sara Blakely appear to haveattained?
Sarawas in the process of solving a problem that was bothering her for along time where she seized the moment in the quest for finding asolution.
2.Is the desire to earn an income a key motivator for Blakely? Explainyour answer.
Thekey motivator for the business was to resolve a longstanding problemthat was affecting the Sara among other people. The business is bornout of innovation rather than income
3.What was Blakely`s opportunity cost when she started Spanx?
Onthe startup of Spanx Company, Sara’s time and dedication was theopportunity cost for her business. She would spend her time off fromthe fax machine sales company
4.Which of Schumpeter`s five basic ways to find opportunity applies toSpanx, both at its start and today? What was the opportunity?
Destructivecreation, this is where Spanx has established better brands thatwould replace the existing ones while trying to solve the Panty lineproblem and other problems associated with the old generations.
CreativeDestruction-Sara uses her skills in innovation to try to create abrand that would be acceptable to the masses and try to solve theproblems that she and her peers encountered. Her ideas brought out aninnovation that gave rise to the business.
Diffusionof innovation theory- This strategy is what Spanx tries to win overthe market that existed as she introduces a new market for thecompany’s brand.
5.Which of Porter`s generic strategies best fits Spanx?
Differentiationis the strategy that Sara employed in her company to achieve adifferent and superior product that has been in the market for a longtime. She offered a unique product that was desirable to the targetmarket.
Clifford,C (2016). "Whyeveryone will have to become an entrepreneur".entrepreneur.com.
Hisrich,D. (2011).Entrepreneurship.McGraw-Hill Education.