Tutorial 2


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Tutorial 2

  1. 1. FLOW OF TUTORIAL <ul><li>TOPIC 4: Ventures Environment Assessment </li></ul><ul><li>TOPIC 5: Business Plan </li></ul><ul><li>TOPIC 6: Starting a new entrepreneurial ventures </li></ul>
  2. 2. TOPIC 4 Ventures Environment Assessment <ul><li>Usually discussed in relation to marketing and economic management . </li></ul><ul><li>This chapter discuss about the importance of environment in providing opportunity and threat to new ventures creation </li></ul>
  3. 3. MIND MAP <ul><li>Component of ventures environment </li></ul><ul><li>Macro environmental influence </li></ul><ul><li>Micro environment </li></ul><ul><li>Organization internal environment </li></ul><ul><li>Identify business opportunity </li></ul><ul><li>Evaluation of business opportunity </li></ul>
  4. 4. 4.1 The components of ventures’ environment <ul><li>External environment </li></ul><ul><ul><li>Macro Environment </li></ul></ul><ul><ul><ul><li>Politics & Legislation </li></ul></ul></ul><ul><ul><ul><li>Economy </li></ul></ul></ul><ul><ul><ul><li>Social-Cultural </li></ul></ul></ul><ul><ul><ul><li>Technology </li></ul></ul></ul>
  5. 5. 4.1 The components of ventures’ environment (cont) <ul><li>Micro Environment </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Financial Institutions </li></ul></ul><ul><ul><li>Non-government organizations </li></ul></ul><ul><ul><li>Government agencies </li></ul></ul>
  6. 6. 4.1 The components of ventures’ environment (cont) <ul><li>The internal environment </li></ul><ul><ul><li>Organizations structure </li></ul></ul><ul><ul><li>Culture </li></ul></ul><ul><ul><li>Resources </li></ul></ul>
  7. 7. 4.2 Macro Environmental Influence <ul><li>4.2.1 Political and Legislative </li></ul><ul><ul><li>Trade barriers and tariffs </li></ul></ul><ul><ul><li>Political risks </li></ul></ul><ul><ul><li>Trade agreement </li></ul></ul><ul><ul><li>Taxation </li></ul></ul><ul><ul><li>Regulation </li></ul></ul>
  8. 8. 4.2 Macro Environmental Influence (cont) <ul><li>4.2.2 Economics </li></ul><ul><ul><li>Questions to consider regarding new ventures (please refer to page 38) </li></ul></ul><ul><li>4.2.3 Socio-cultural </li></ul><ul><ul><li>Demographic changes </li></ul></ul><ul><ul><li>Social trends </li></ul></ul><ul><li>4.2.4 Technological </li></ul><ul><ul><li>Pure invention </li></ul></ul><ul><ul><li>Process innovation </li></ul></ul>
  9. 9. 4.3 Micro Environment <ul><li>Consumers </li></ul><ul><li>Competitors </li></ul><ul><li>Suppliers </li></ul><ul><li>Financial institutions </li></ul><ul><li>Government agencies </li></ul><ul><li>Non-government organizations </li></ul>
  10. 10. 4.4 An organization’s internal environment <ul><li>Resources </li></ul><ul><li>Structure </li></ul><ul><li>Cultures </li></ul>
  11. 11. 4.5 Identification of business opportunity <ul><li>4.5.1 Recognition of an opportunity: Phase of a process perspective on entrepreneurship </li></ul><ul><ul><li>Sources of opportunity </li></ul></ul><ul><ul><ul><li>The unexpected </li></ul></ul></ul><ul><ul><ul><li>The incongruous </li></ul></ul></ul><ul><ul><ul><li>The process need </li></ul></ul></ul><ul><ul><ul><li>Industry and market structures </li></ul></ul></ul><ul><ul><ul><li>Demographics </li></ul></ul></ul><ul><ul><ul><li>Change in perception </li></ul></ul></ul><ul><ul><ul><li>New knowledge </li></ul></ul></ul>
  12. 12. 4.5 Identification of business opportunity (cont) <ul><li>4.5.2 E-Commerce as a New Opportunity </li></ul><ul><ul><li>Your feedback </li></ul></ul><ul><ul><ul><li>Technology has become an important part of our lives. Think of how e-commerce has benefited your lives? </li></ul></ul></ul>
  13. 13. 4.6 Evaluation of a business opportunity <ul><li>4.6.1 The magnitude of opportunity </li></ul><ul><li>4.6.2 Sources of opportunities: the origins of new ventures </li></ul><ul><ul><li>New product or service </li></ul></ul><ul><ul><li>New way of organizing </li></ul></ul><ul><ul><li>New market </li></ul></ul><ul><ul><li>New method of production </li></ul></ul><ul><ul><li>New raw material </li></ul></ul><ul><li>4.6.3 Opportunities and new firms </li></ul>
  14. 14. TOPIC 5 Business Plan <ul><li>MIND MAP </li></ul><ul><ul><li>What is a business plan? </li></ul></ul><ul><ul><li>The importance of business plans </li></ul></ul><ul><ul><li>What needs business plans? </li></ul></ul><ul><ul><li>Essential elements of good business plans </li></ul></ul><ul><ul><li>Guidelines in preparing good business plans </li></ul></ul><ul><ul><li>Pitfalls to avoid in planning </li></ul></ul>
  15. 15. 5.1 What is a business plan <ul><li>A written document which describes in detail the overall plans of a business in which an entrepreneur aims to get involved </li></ul><ul><ul><li>Purposes:- </li></ul></ul><ul><ul><ul><li>Forces to arrange their thought in a logical and structural order </li></ul></ul></ul><ul><ul><ul><li>Create a business framework by defining activities, responsibilities and objectives to be achieved </li></ul></ul></ul><ul><ul><ul><li>Encourage in stimulating reality and anticipate pitfalls before they occur. </li></ul></ul></ul><ul><ul><ul><li>Develop strategies to meet those objectives </li></ul></ul></ul><ul><ul><ul><li>As a working action plan or guidelines </li></ul></ul></ul><ul><ul><ul><li>Enabling in identifying constraints </li></ul></ul></ul>
  16. 16. 5.2 Importance of business planning <ul><li>Increase opportunity for success </li></ul><ul><li>Develop mission business </li></ul><ul><li>Determine the main competitor/s </li></ul><ul><li>Determine the right way of managing the business </li></ul><ul><li>Increase the stakeholders confidence </li></ul><ul><li>Determine barrier in business </li></ul><ul><li>As a performance tool </li></ul>
  17. 17. 5.3 Who needs business planning? <ul><li>The management team </li></ul><ul><li>The shareholders </li></ul><ul><li>Bankers or creditors </li></ul><ul><li>Customers </li></ul><ul><li>Suppliers </li></ul><ul><li>The employees </li></ul>
  18. 18. 5.4 Essential elements of a good business plan <ul><li>Executive summary </li></ul><ul><li>Market analysis </li></ul><ul><li>Marketing and sales strategies </li></ul><ul><li>Services or product line </li></ul><ul><li>Organization and management </li></ul><ul><li>Funding request </li></ul><ul><li>Financials </li></ul><ul><li>The appendix </li></ul>
  19. 19. 5.5 Guidelines in preparing business plans <ul><li>Keep business plan short </li></ul><ul><li>Be focused </li></ul><ul><li>Reveal people involved and their roles </li></ul><ul><li>Avoid the use of Jargons </li></ul><ul><li>Information should be based on study </li></ul><ul><li>Be realistic and objective </li></ul>
  20. 20. 5.6 Pitfalls to avoid in planning <ul><li>No realistic goals </li></ul><ul><li>Failure to anticipate obstacles </li></ul><ul><li>No commitment or dedication </li></ul><ul><li>Lack of business or technical experience </li></ul><ul><li>No market niche </li></ul>
  21. 21. TOPIC 6 Starting a new entrepreneurial venture <ul><li>This topic discuss about types of ventures that the entrepreneur can start the legal structures for new business ventures and sources of capital for entrepreneurs </li></ul>
  22. 22. 6.1 Types of ventures <ul><li>Ventures </li></ul><ul><ul><li>Start-up </li></ul></ul><ul><ul><li>Buying an existing business </li></ul></ul><ul><ul><li>Franchising </li></ul></ul>
  23. 23. 6.2 Start-up <ul><li>Definition of start-up </li></ul><ul><ul><li>“ Start from scratch” </li></ul></ul><ul><li>Phases in start-up </li></ul><ul><ul><li>Prestart-up phase </li></ul></ul><ul><ul><li>Start-up phase </li></ul></ul><ul><ul><li>Post start-up phase </li></ul></ul><ul><li>Advantages & Disadvantages of start-up </li></ul><ul><ul><li>Refer to page 68 </li></ul></ul>
  24. 24. 6.3 Buying an existing business <ul><li>Definition of buying an existing business </li></ul><ul><ul><li>Buying a business that is currently running </li></ul></ul><ul><li>Steps and processes in buying an existing business </li></ul><ul><ul><li>Personal priority </li></ul></ul><ul><ul><li>Business opportunity </li></ul></ul><ul><ul><li>Reviewing potential target </li></ul></ul><ul><ul><li>Arrangement of financing </li></ul></ul><ul><ul><li>Conduct due diligence </li></ul></ul><ul><ul><li>The formal agreement </li></ul></ul><ul><ul><li>Ready for business </li></ul></ul>
  25. 25. 6.3 Buying an existing business (cont) <ul><li>Advantages of buying an existing business </li></ul><ul><ul><li>Refer to page 72 </li></ul></ul><ul><li>Disadvantages of buying an existing business </li></ul><ul><ul><li>Refer to page 73 </li></ul></ul>
  26. 26. 6.4 Franchising <ul><li>Definition of franchising </li></ul><ul><ul><li>“…any arrangement in which the owner of trademark, trade name or copyright has licensed others to use it and sell its goods or services” </li></ul></ul><ul><li>Advantages:- </li></ul><ul><ul><li>Training and guidance </li></ul></ul><ul><ul><li>Brand name appeal </li></ul></ul><ul><ul><li>Proven track record </li></ul></ul><ul><ul><li>Financial assistance </li></ul></ul>
  27. 27. 6.4 Franchising (cont) <ul><li>Disadvantages:- </li></ul><ul><ul><li>Franchise fee </li></ul></ul><ul><ul><li>Franchisor control </li></ul></ul><ul><ul><li>Unfulfilled promise </li></ul></ul>
  28. 28. 6.5 Legal structures for new business ventures <ul><li>Sole proprietorship </li></ul><ul><li>Partnership </li></ul><ul><li>Corporation </li></ul><ul><li>Private corporation </li></ul>
  29. 29. 6.6 Sources of capital for entrepreneurial activities <ul><li>Personal funds </li></ul><ul><li>Family and friends </li></ul><ul><li>Retirement accounts </li></ul><ul><li>Banks and other financial institutions </li></ul><ul><li>Government loans </li></ul><ul><li>Stock market </li></ul>
  30. 30. THE END