BUS 433 Week 5 Final Paper
BUS 433 Week 5 Final Paper
Popular in Course
verified elite notetaker
Popular in Department
This 9 page Study Guide was uploaded by kimwood Notetaker on Friday November 6, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 18 views.
Reviews for BUS 433 Week 5 Final Paper
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 11/06/15
New Venture 1 New Business Venture name BUS433 New Venture 2 New Business Venture The business venture that I have created is a completely different and unusual type of store not already in the area or in surrounding areas of Sheboygan County. This idea of a full maternity, unique clothing and baby supply items including, cribs, clothing, early toddler select toys, tethers’, bibs, diapers, strollers, car seats, bassinets, soaps, shampoos and seasonal specialty items for the mother and child are going to be the hit of the county. Since there is no other store in the county that carries specialty items, (only items that all retailers have on store shelves), this store will not only take off the first year but I will have the potential for future growth carrying even more unusual and unique products. Identify what strategic leadership skills are needed for your entrepreneurial venture to take it to the next growth level. How will you evaluate the leaders in your venture to determine if they have the strategic leadership skills needed? In order to run a successful business you need to have strategic leadership skills along with strategic planning. Strategic planning is an organization's process of identifying its strategy, direction, and the making of decisions on what resources to pursue. I would have to say that strategic planning does not really differ all that much from other forms of planning. In order to have a good plan you need to do research, form a strategy, your findings will lead you in the direction of your target. The strategic planning process is important to entrepreneurs who are starting a new venture because entrepreneurs are people who organize and manage a business. They also assume the risk for the sake of a profit, an entrepreneur is the ultimate strategist. He or she makes all the strategic as well as operational decisions on all three levels of strategy— corporate, business, and functional. “As one entrepreneur puts it: “Entrepreneurs are strategic New Venture 3 planners without realizing it.” The development of DBands described earlier captures the key elements of an entrepreneurial venture: a basic business idea that has not yet been successfully tried and a gutsy entrepreneur who, while working on borrowed capital and a shoestring budget, creates a new business through a lot of trial and error and persistent hard work” (Fields, D, 1989, pg.115). "These strategic leaders create action plans that stretch, but respect, the organization’s seemingly invisible process and cultural boundaries. They consider both internal and external forces and, unthreatened by weaknesses, deftly weave new resources into the organizational fold, building competencies and competitive advantage. They are capable of overseeing a program of everimproving, interdependent activities while building a culture of cooperation, confidence, and performance" (Marcus, pg. 212). Then again not all leader have what it takes. They may not be willing to embark upon new initiatives in such an integrative manner. New initiatives often undermine established organizational priorities, resource allocations, and reporting relationships. Implementation can challenge leaders, their power, status, responsibility, and business philosophies. Some leaders will simply be incapable of filling a new set of circumstances or learning new skills (Marcus, pg. 212). In planning to take the entrepreneurial venture to another country, identify the challenges/problems the venture may face. What guidelines will you provide for managers to deal with the challenges/problems? The steps and or actions that an entrepreneur would take to determine whether the entrepreneurial venture has the appropriate internal competencies to achieve competitive New Venture 4 advantage are many. The purpose of internal analysis is to pinpoint the strengths and weaknesses of the organization. Strengths lead to superior performance. Weaknesses lead to inferior performance. Internal Analysis includes an assessment of: quantity and quality of a company’s resources and capabilities, ways of building unique skills and companyspecific or distinctive competencies. Building and sustaining a competitive advantage requires a company to achieve superior: efficiency, quality, innovations responsiveness to customers. Competitive Advantage is a firm’s profitability is greater than the average profitability for all firms in its industry. The primary objective of strategy is to achieve a sustained competitive advantage which in turn results in superior profit and profit growth. Here is a model demonstrating the internal competencies to achieve competitive advantage. "For a new idea to gain widespread acceptance in the marketplace, a number of critical elements are needed: (1) entrepreneurs who have insight into the idea’s potential and who are determined to make it a commercial success; (2) innovative companies that package the idea, market it to customers, and offer it as an attractive business proposition; (3) investors who see the com mercial potential and back the promising venture, often at great risk to themselves, before it is profitable; and (4) typically, as well, government support in the form of either subsidy or the creation of rules, standards, or infrastructure that are favorable to the idea" (Marcus, 163). "A test takes place in the laboratory of the idea’s principles. The idea’s technical viability is then proven. The originality of the inventors is demonstrated. Their invention may be suitable for patenting. However, innovation entails actually delivering on the idea’s promise. Without creating distinctive value that meets customers’ needs, the idea is just a concept, nothing more. New Venture 5 Innovation is putting promising business ideas into widespread use; it is the effort to commercially exploit an idea and ensure its broad application" (Marcus, 163). What is the current level of entrepreneurial activities in the United States? Overall, is the climate for entrepreneurship improving or worsening? The current level of entrepreneurial activities in the United States has risen from 2010 to 2011. “According to the Kau Eman Index of Entrepreneurial Activity, 0.32 percent of the American adult population started a business each month last year. Latino business creation topped the list at 0.52 percent in 2011—the Latino share of new business growth equaled 22.9 percent of the total population, up from 10 percent in 1996. Immigrants overall were more than twice as likely as nativeborn Americans to start new businesses” (What and Entrepreneur looks like, 2013). Demographics were analyzedregionally they were agebased, and educational. The Northeast was the only region to see a slight increase in entrepreneurial activity in 2011, while the West stayed consistent with the highest rates and the Midwest the lowest. The age group for the largest amount of businesses started ranged from 45to54 year olds, at 0.37 percent Perhaps surprisingly enough the education level with the highest entrepreneurial activity is highschool dropouts, at 0.57 percent (What and Entrepreneur looks like, 2013). There are many places that you can go to find information on whether or not your company and its products will be needed in this location. Marketing research is the systematic study of the factors that affect a venture’s sales in its particular market niche (Hornsby, pg. 128). Three broad sources should be considered. First, trade associations, regular business advisors, business agencies, and, to a limited extent, suppliers can offer factual information. Second, the New Venture 6 entrepreneur can acquire the services of an independent marketing research service. Third, the entrepreneur can organize a marketing research effort within the firm itself. The best method for a particular business depends on its resources, the availability of the needed information, the complexity and size of the problem, and, most important, the cost involved (Hornsby, pg. 130). Secondary sources include documents that present statistics compiled about the industry, the competition, and the local area, as well as information gleaned from business publications. Secondary sources are fundamental for marketing research and often yield great value for the investment (Hornsby, pg. 130). Local statistics can also be a great help. They can be procured from the chamber of commerce (local and state), the city government, and census data. Analyzing these data can help the owner compile a profile of the local population by age distribution, average income, family size, automobile ownership, home ownership, and number of schoolage children (Hornsby, pg. 130). One such limitation that marketing research is conducted is that peoples buying habits are constantly changing and another one would be competition. When competition increases buying habits may decline or increase. As you work on your strategic plan for expansion, what kind of expansion model will you use: internal venturing, acquisitions, mergers, etc.? What were the circumstances that influenced your choice? The type of expansion model that will be used is mergers. What influenced the decision is that internal venturing and acquisitions tend to fail for so many reasons. Some of those reasons include; Price too high. A huge problem is paying too high a price for an acquired company, New Venture 7 products or services less than expected. The purpose of mergers and acquisitions may be to gain access to soughtafter products, services, or technologies, but managers of acquiring companies often do not assess the target company carefully enough to ensure that the products, services, and technologies they are obtaining have sufficient value, lack of marketing leverage. Acquiring companies often expect that an acquisition will provide marketing leverage the acquirer tends to overestimate the cross selling potential, few benefits from the overlapping of core competencies, cultural problems, unfriendly mergers and acquisitions, failure to retain key personnel and finally failure to achieve a turnaround (Kanter, R., & Seggerman, T. K., 1986). Mergers succeed because "Sharing of tangible resources (research labs, distribution systems) across multiple businesses. Sharing of intangible resources (brands, technology) across multiple businesses. Transferring functional capabilities (marketing, product development) across multiple businesses and applying general management capabilities to multiple businesses (Kanter, R., & Seggerman, T. K., 1986). This unusual type of store not already in the area or in surrounding areas of Sheboygan County with full maternity, unique clothing and baby supply items including, cribs, clothing, early toddler select toys, tethers’, bibs, diapers, strollers, car seats, bassinets, soaps, shampoos and seasonal specialty items for the mother and child are going to be the hit of the county. With the estimated projections and the amount of items not available in the area make this business a shoe in for a new and exciting attraction for everyone. New Venture 8 References: Marcus, Alfred. Management Strategy: Achieving Sustained Competitive Advantage, 2nd Edition, 2nd Edition. McGrawHill Primis Custom Publishing. <vbk:0390122297#page(212)>. D. Fields, “Mrs. Fields’ Weekends,” USA Weekend (February 3–5, 1989), p. 16; M. Alpert, “In the Chips,” Fortune (July 17, 1989), pp. 115–11 This Is What an American Entrepreneur Looks Like..Journal Of Financial Planning [serial online]. October 2012;25(10):12. Available from: Business Source Elite, Ipswich, MA. Accessed May 19, 2013. Kanter, R., & Seggerman, T. K. (1986). MANAGING MERGERS, ACQUISITIONS, AND DIVESTITURES. Management Review, 75(10), 16. Hornsby, Kuratko&. New Venture Management: The Entrepreneur's Roadmap (Entrepreneurship Series). Pearson Learning Solutions. <vbk:0558569188#outline(10.8)>. New Venture 9
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'