Entrepreneurship Case study

1. FACULTY OF BUSINESS, ECONOMICS AND ACCOUNTANCY
MASTER OF BUSINESS ADMINISTRATION
SECTION 2
SEMESTER 1 2017/2018
BM6063 ENTREPRENEURSHIP
LECTURER: DR. SALMAH TOPIMIN
GROUP CASE STUDY 4
“SPORTIN LIFE”: A MINORITY ENTREPRENEUR’S CREATION
NAME MATRIC NUMBER
MOHD SHAFIQ MARICAN BIN ARIFFIN MB1712400T
MOHD TAUFIQ SAADUDIN BIN JAUDIN MB1712401T
RACHEL ANAK NOEID MB1712411T
SHERLEEN ELEANORE CHRISTIANUS NG MB1712421T

2. Table of Contents
1.0 BACKGROUND OF THE CASE STUDY ...............................................................1
2.0 PROBLEM OF THE CASE STUDY ......................................................................3
2.1 Product aspect ............................................................................................3
2.2 Advertisement aspect ..................................................................................3
2.3 Financial aspect ..........................................................................................4
3.0 EVALUATION OF THE ENTREPRENEURSHIP OPPORTUNITY..............................6
3.1 Short-term Strategies ..................................................................................7
3.2 Long-term Strategies...................................................................................8

4. 1
1.0 BACKGROUND OF THE CASE STUDY
In 1988, George Higgins, a famous black artist in Muncie, Indiana area, also
an entrepreneur, planned to start a business called “Sportin Life”. He is also an art
teacher in a local high school, and interestingly, he too owned a Geo-Graphic Art
production, a small company that provides artwork. Married and is a father of four
children, managed to become one of the recipient of the community‟s minority
achievement award for artistic talent. He used his talent in art to come up with a
concept that is needed by his community, which he ca-lled “Sportin Life”
In this business, George Higgins‟s idea is to create a mascot for “Sportin Life”.
The mascot is used to support the idea of “antidrug” and pro-ethics towards youths.
It is to expose youths on good sportsmanship, honesty, ethics, fair play, and the
most important thing is to say no to drugs. The cartoon created for “Sportin Life” will
be a role model for the children, especially those involved in sports, because it is to
enhance the mentioned good value that nowadays children lacked in.
George Higgins‟ idea impressed the investors, but first he needs to develop a
detailed business plan in order for the investors to invest in his business. For him, it
is a huge challenge to outline a business plan, since he has no business background.
Instead of giving up, he‟s willing to do some research on it.
He found out that, if he were to come with a cartoon that represent drug free
theme, then he will face three competitors; McGruff, Woodsy Owl, and Ronald
McDonald. Then he came to realized that, none of these competitors really

5. 2
emphasize that they represent “Say No to Drugs”. Hence, this gave him the
opportunity to promote “Sportin Life”.
As for his business start-up stage, he plans to target his market in these three
areas namely Delaware county, state of Indiana, and third is Midwest. George
Huggins too did his research on what sport the Sportin Life cartoon should
represent. The highest voting is basketball, followed by baseball and last but not
least the football. Another advantage he found out that can make his business grow
bigger is, a study found out that 88% Sportin Life would be a good spokesperson for
anti-drug theme. Along planning his business plan too, he too considered about the
doll manufacture, how to price the doll.
Overall of the business plan, the most critical part is the liability and the
safety of his product. He found out in survey that the accidents involved in consumer
products have caused 20 million injuries per year; permanent disability with a total
of 110,000, and 30,000 death cases. The numbers of these accidents increase year
by year, hence it worries George the most, because he knew that no product is
completely without any harm, and if his product brings harm to consumer, hence he
has to pay a great price for litigation.
Another issue that puts George Higgins in dilemma too is, which investors to
be approached, either the debt source or the equity source. To attract the investors
too, one must have a great business plan. His backup plan is, if he unable to pull the
interest of the investor for the characters that he planned for Sportin Life, his backup
idea is to launch an afterschool program for the youth, a program that to enhance
youth on how to become a good sport heroes.

6. 3
2.0 PROBLEM OF THE CASE STUDY
The main problem of Sportin‟ Life nature of business is how to manufacture
and marketing the dolls to comply with the advocacy of good sportsmanship, drug-
free living and ethical behaviour because George Huggins needs to concern the
three issues regarding on the product aspect, advertisement aspect and financial
aspect.
2.1 Product aspect
Sportin‟ Life used dolls for sport character with different unique features and
posters, each conveying a message to support the antidrug campaign. In this case,
the cloth dolls were not feasible due to distinctive facial features that could be
unattainable compared with plastics. Plastic dolls are better since it can be
manufactured through injection molding, blow molding and rotational molding. Other
than that, product liability is very critical risks that entrepreneurs must consider and
take responsible for product safety failure. George should judge whether his
product‟s determined level of risk is acceptable legally, politically, morally and
economically. Failure to comply with federal and state safety standards may impact
his new venture reputation and sales as well as the unbearable cost of litigation
which is about multimillion dollar.
2.2 Advertisement aspect
Sportin‟ Life conceptualized a toy doll format and posters as to endorse its
theme,” Say No to Drugs” campaign. In this case, if Sportin‟ Life were to represent

7. 4
the drug-free theme, it might be up against three main competitors, McGruff,
Woodsy Owl and Ronald McDonald. McGruff is a tough competitor since he
conquered TV advertising time with a short video and theme song for almost two
months. Nevertheless, McGruff does not endorse theme “Say No to Drugs” campaign
even though he had narrowed his anticrime campaign to antidrug campaign and part
of the antidrug bandwagon. That could means that Sportin‟ Life may have a chance
to hit the market endorsing the drug-free theme and still be recognizable. Same
goes to Woodsy Owl as he followed McGruff advertising styles with the same
advantages. Ronald McDonald however, went on different towns to deliver his show
to present safety, health and antidrug themes because Ronald is not a real person
but a character which seems to identifiable by many children especially in fast food
commercials. Due to that, the degree of credibility in the Ronald character has
strengthen its role of being a spokesperson for the drug-free campaign. Therefore,
George Huggins may have to consider the degree of credibility of Sportin‟ Life dolls
when conveying the campaign message to children in commercial advertisements.
Apart from that, Sportin‟s Life also needs to consider minor competitor,
Snoopy and Garfield as both characters gained public awareness and may become
future competitors in the future. Printed advertisements may be an easy idea but the
character should be recognizable too among children and their parents.
2.3 Financial aspect
George Huggins have to form a detailed business plan containing marketing
production and financial projection before investors can commit with the capital

8. 5
investments. In this case, a rough projection of the pro-forma income statement was
made for the first three years. The company is assumed to loss $33,221 in first year
and that is why it is necessary to start an initial investment of $50,000 and $25,000
loan for second year. George also needs to note that income statement, accounts
receivable and inventory turnover will only last for three months. After that, the
turnover rate will be reduced to one month and possible beginning expenses for
renovation will be included.
These three aspects caused dilemma of pursuing additional option because
from 1989 to 1992, George Huggins already faced challenges to launch Sportin‟ Life.
During its early establishment, he was unable to raise enough interest to market
Sportin‟ Life characters as a product line. With limited budget of $1,000, he able to
form an afterschool program aimed for youth at the local schools to teach them a
value system.

9. 6
3.0 EVALUATION OF THE ENTREPRENEURSHIP OPPORTUNITY
“Sportin‟ Life” is not just the doll name but it is a concept in which George
Huggins the founder worked on for over 15 years. He believe that this concept of
doll is a real tool to teach the children. This concept of entrepreneurial opportunity is
interesting, but before we say „Yes‟ or „No‟ for such opportunity, we need to look at
the SWOT (Strengths, Weaknesses, Opportunity and Threats) analysis first to find
out whether it is a good opportunity or not. Here are the SWOT analysis of the
“Sportin‟ Life”.
Strengths Weaknesses
 A very good concept of dolls (all-
sports, antidrug and pro-ethics
mascot).
 Special identity and value (sports
figure).
 No direct competitors.
 Appeal to elementary-aged children
(5-11 years old).
 Appeal to both boys and girls.
 No detailed business plan.
 Not feasible manufactured as cloth
dolls.
 Less known by the people
(customers).
Opportunities Threats
 Widen the niche by produce poster  Indirect competitors (Hulk Hogan

10. 7
of “Sportin‟ life”.
 Introduce to school system.
 Targeting the doll at both black and
white children (varies the facial
features and colour).
 Produces in brighter colour.
 License the doll to be manufactured
by other company (less cost).
doll, teddy bears, Cabbage patch
kids, Barbies)
 Drug free theme competitors (Mc
Gruff, Woodsy Owl, Ronald
McDonald).
 Product safety and liability.
After looking at the SWOT analysis on the “Sportin‟ Life”, in our opinion, we
should accept the opportunity. The reasons why we chose to accept it because it has
very good opportunity to be expanded and improved. The concept of using a doll to
do a campaign of anti-drugs is a good effort to teach people especially younger
generation to be aware of the badness of the drugs. The sport figure of “Sportin‟
Life” strengthen the anti-drugs campaign. This is the undeniable uniqueness of the
product. So, to pursue this entrepreneurial opportunity, we need to have strategies
both short-term and long-term strategies.
3.1 Short-term Strategies
For the business goals to be realized, we need to improve the marketing
strategy. The time has changed, the younger generation nowadays were totally
exposed with the development of ICT (Information and Communications

11. 8
Technology). The target market for “Sportin‟ Life” which is the elementary-aged
children are approachable through the internet. So, utilize the technology particularly
the internet to market the product is a good idea. The internet and social media can
be a good platform to introduced “Sportin‟ Life to the target market. In addition to
the improvement of marketing strategy, creating a video of “Sportin‟ Life” to be
published in the internet especially in social media will make it more attractive to the
customers.
Another short-term strategies that can be applied for “Sportin‟Life” is by
promoting an event. For example, each year, 26th
June is the international day
against drug abuse and illicit trafficking. During that day, we can create an event to
let people know about the risks of drug abuse to the world. In that event,
“Sportin‟Life” will be used as the mascot so that people especially the children will
aware of the existence of “Sportin‟Life”.
3.2 Long-term Strategies
Apart from the short-term strategies, we need excellent long-term strategies.
The most important thing to do is to set the goals of the business. From Mr. Huggins
point of view, he need to develop a strategic business plan. A good business plan
will become the main reference of the business. In the business plan, many aspects
will be covered such as financial projections, management, research and
development (R&D) and others. The main purpose for this is to get a clear picture of
what are the goals of the business and it also will attract the potential investors to
invest in the venture.

12. 9
One of the strategies is by taking the opportunity into consideration. Adding
more variety of the facial features and colour of “Sportin‟ Life” will give the venture
an opportunity to grow. This is by widening the target market which is the black
children at the beginning to both black and white children.
Other than that, for the marketing strategy to be implemented, we need to
have strong marketing team. This marketing team will work to reach the customers,
the potential investors as well as the community. The team will be responsible create
awareness for the product. From the case study, we found that the company only
have three people that means it is a small company. So, in case Mr. Huggins want to
expand the business, the company should have marketing department and other
departments as well.