Entp 15 Ppt

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Entp 15 Ppt

  1. 1. Entrepreneurship Session-15 6/07/07
  2. 2. What is Venture Capital? <ul><li>Venture capital - high risk contributions made usually to new and expanding companies </li></ul><ul><li>Venture capitalist - a person or company that invest in generally high risk business ventures </li></ul><ul><li>Venture capital fund - a company that invests capital accumulated by third party investors </li></ul>
  3. 3. Types of venture capital <ul><li>Seed Capital -- There are different kinds of venture capital available for different stages of business development. </li></ul><ul><li>If you are a company still in initial development stage you would most likely need seed capital. Seed capital is usually for the purpose of marketing research and product or service testing. </li></ul>
  4. 4. Types of venture capital <ul><li>Start-up Capital -- If your company has already gone past the research and testing stage and is ready to begin doing business then you are in need of start-up capital. </li></ul><ul><li>Startup capital is mainly used for hiring staff, renting office space, purchasing computer equipment, purchasing inventories, building production system, and other activities involved in starting the business. </li></ul>
  5. 5. Types of venture capital <ul><li>Development Capital: </li></ul><ul><li>If your company is already gone beyond the start-up stage and has grown to a point where the company needs to expand in order to maximize profitability but does not have enough liquid assets to make it happen, you are in need of development capital. </li></ul>
  6. 6. The Role of the venture capitalist <ul><li>directly providing funds for high risk, high return ventures </li></ul><ul><li>arranging additional financing from other sources </li></ul><ul><li>assessing and revising the proposed business model </li></ul><ul><li>reformulating the overall strategy </li></ul>
  7. 7. The Role of the venture capitalist <ul><li>finding and hiring key managers </li></ul><ul><li>finding supportive service companies and other business contacts </li></ul><ul><li>firing existing managers when they think this is necessary </li></ul><ul><li>buying-out existing partners (owners) when they think this is necessary </li></ul>
  8. 8. What is a Social Entrepreneur? <ul><li>Someone who adopts a mission to create and sustain social values. </li></ul><ul><li>Someone who constantly pursues new opportunities to serve a particular social mission </li></ul><ul><li>Someone who is engaged in a continuous process of creative destruction, i.e. innovation, adaptation and learning. </li></ul>
  9. 9. What is a Social Entrepreneur? <ul><li>Someone who takes accountability to the constituencies served and the outcomes created </li></ul>
  10. 10. Why Create Social Value? <ul><li>Businesses are motivated by profit-creation whereas social projects have to be driven towards social value creation. </li></ul><ul><li>As a result most successful social entrepreneurs that face various challenges share the same philosophy or a strategic service vision, that is, a set of ideas and actions that maximizes the leverage of results over efforts directed toward well-defined targets and supported with highly-focused operating strategies. </li></ul>
  11. 11. Why Create Social Value? <ul><li>It is necessary for Social entrepreneurs not only to create social value for its ‘customers’ i.e. its target group but also its ‘investors’ i.e. its donors. </li></ul><ul><li>Social entrepreneurs generate social capital when they create channels in which individuals can contribute to their communities and to the welfare of others </li></ul>
  12. 12. Example of a Strategic Service Vision Framework <ul><li>India’s Aravind Eye Hospital is the largest provider of eye surgery in the world, performing 180,000 cataract operations a year, 70% percent of them for free. </li></ul><ul><li>It costs the hospital about $10 to perform a cataract operation which would cost about $1650 in the United States. </li></ul>
  13. 13. Why Marketing Research Is Necessary? Marketing communications is typically asked to achieve four things - introduce a new fact or idea, correct an existing misconception, reinforce a favorable opinion or stimulate action.
  14. 14. What Is Marketing Research: <ul><li>‘ Marketing Research’ is the function which links the consumer,customer and public to the marketer through information – information used to identify and define marketing opportunities and problems;generate,refine and evaluate marketing actions;monitor marketing performance; actions; improve understanding of marketing as a process. </li></ul>
  15. 15. Marketing Research can reveal consumer characteristics: <ul><li>Demographic. </li></ul><ul><li>Socio-economic. </li></ul><ul><li>Life-style. </li></ul><ul><li>Awareness. </li></ul><ul><li>Behavior (past, present and intended ) </li></ul>
  16. 16. Market research in pre start up phase <ul><li>Who is the customer? </li></ul><ul><li>Gender and Age </li></ul><ul><li>Income Status </li></ul><ul><li>Occupation and Education </li></ul><ul><li>Other customer characteristics </li></ul>
  17. 17. Market research in pre start up phase <ul><li>Where is the market? </li></ul><ul><li>Market size and changes </li></ul><ul><li>Segmenting the Market </li></ul><ul><li>Growth characteristics </li></ul><ul><li>Sales Forecast </li></ul>
  18. 18. Market research in pre start up phase <ul><li>Competition </li></ul><ul><li>Who are the market players? </li></ul><ul><li>Existing competitors </li></ul><ul><li>Products or substitutes </li></ul>
  19. 19. Market research in pre start up phase <ul><li>Distribution </li></ul><ul><li>How will customers be reached? </li></ul>
  20. 20. Market research in pre start up phase <ul><li>Sources of market intelligence: </li></ul><ul><li>Existing competitors </li></ul><ul><li>Trade publications </li></ul><ul><li>Securities Analysts Reports </li></ul><ul><li>Potential customers </li></ul>
  21. 21. The Importance of Information <ul><li>Companies need information about their: </li></ul><ul><ul><li>Customer needs </li></ul></ul><ul><ul><li>Marketing environment </li></ul></ul><ul><ul><li>Competition </li></ul></ul><ul><li>Marketing managers do not need more information, they need better information. </li></ul>
  22. 22. The Marketing Information System
  23. 23. Developing Marketing Information <ul><li>Internal Databases : Electronic collections of information obtained from data sources within the company. </li></ul><ul><li>Marketing Intelligence : Systematic collection and analysis of publicly available information about competitors and developments in the marketing environment. </li></ul><ul><li>Marketing Research : Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. </li></ul>
  24. 24. Competitive Intelligence: <ul><li>It is the selection ,collection,interpretation and distribution of publicly-held information that has strategic importance. </li></ul>
  25. 25. Competitive Intelligence: <ul><li>Competitor intelligence is the analytical process that transforms disaggregated competitor intelligence into relevant, accurate and usable strategic knowledge about competitor performance </li></ul><ul><li>It is highly specific and timely information about a corporation. </li></ul>
  26. 26. Competitive Intelligence: <ul><li>Goals: </li></ul><ul><li>Detecting competitive threats. </li></ul><ul><li>Eliminating or lessening surprises. </li></ul><ul><li>Enhancing competitive advantage by lessening reaction time. </li></ul><ul><li>Finding new opportunities. </li></ul>
  27. 27. From Information to Intelligence <ul><li>All the information needs to be collated. </li></ul><ul><li>The information need to be indexed and catalogued. </li></ul><ul><li>It pieces of information to be analyzed and interpreted. </li></ul>
  28. 28. Competitive Growth Strategies Source: H. I. Ansoff, New Corporate Strategy (New York: Wiley, 1988), p. 109.
  29. 29. Growth Strategies for Business Units <ul><li>Intensive Growth </li></ul><ul><ul><li>Growth occurring when current products and current markets have the potential for increasing sales </li></ul></ul><ul><ul><li>Market penetration: increasing sales of current products in current markets </li></ul></ul>
  30. 30. Growth Strategies for Business Units <ul><ul><li>Market development: increasing sales of current product in new markets </li></ul></ul><ul><ul><li>Product development: increasing sales by improving present products or developing new products for current markets </li></ul></ul>
  31. 31. Growth Strategies for Business Units (cont’d) <ul><li>Diversified Growth </li></ul><ul><ul><li>Growth occurring when new products are developed to be sold in new markets </li></ul></ul><ul><ul><li>Advantage of diversified growth is the spread of risk across a number of markets </li></ul></ul><ul><ul><li>Diversification allows for a wider use of managerial, technical, and financial resources </li></ul></ul>
  32. 32. Growth-Share Matrix Developed by the Boston Consulting Group Source: Perspectives, No. 66, “The Product Portfolio.” Reprinted by permission from The Boston Consulting Group, Inc., Boston, MA. Copyright © 1970.

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