r. l. nkumbwa copperbelt university. outline entrepreneurs entrepreneurs their environment their...
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R. L. NkumbwaCopperbelt University
Outline Entrepreneurs Their EnvironmentAnd
Entrepreneurs The New AlchemistsEnterprise adventure, effort, endeavour, project, undertaking, scheme, venture, daring, energy, initiative, push.Enterprising adventurous, audacious, bold, daring, active, alert, efficient, energetic, prompt, resourceful, smart, spirited, zealous.Entrepreneur person in control of commercial undertaking, one who undertakes a business or enterprise, with a chance of profit or loss.
Leap and the net will appear
Julia CameronInnovation = Creativity x Risk Taking
Five is a magic number: wanted four cornerstones
and an entrepreneur
An entrepreneur is someone who perceives an opportunity and creates an organisation to pursue itBill Bygrave (The Portable MBA in Entrepreneurship, 1994)
An entrepreneur is someone who accepts the risk of acquiring and organising resources to seek opportunities for profit.David Gough, Entrepreneur and MentorWhite Rose Bioscience Forum, York, 6 November, 2002
An entrepreneur is someone who habitually creates and innovates to build something of recognised value around perceived opportunities.Bill Bolton & John ThompsonEntrepreneurs Talent, Temperament, Technique
What are the Characteristics of the Entrepreneur? Perseverance and DeterminationAbility to take RisksNeed achieve/Make a DifferenceInitiative and taking ResponsibilityFocusCreativityHonesty and IntegrityIndependence
What do Entrepreneurs do? They make a significant difference They create and innovate Spot and exploit opportunities Find the necessary resources Network Show determination in the face of adversity Manage risk Exercise control over the enterprise Be customer orientedCreate Capital
So basically Entrepreneurs.. to Create Innovate and Build Take Risks in order.
The Entrepreneur Process DiagramBill Bolton & John ThompsonEntrepreneurs Talent, Temperament, Technique
From Idea to OpportunityIdeaOpportunityKnowledge skills and competencyFrom: Bill Bolton & John ThompsonEntrepreneurs Talent, Temperament, TechniqueThe industrial landscape is already littered with remains of once successful companies that could not adapt their strategic vision to altered conditions of competition.Abernathy, Clark & KantrowEffective Strategic positionFactors critical for market success
Leads to InnovationCreativity, Innovation and Entrepreneurship
What sort of people do you need in a Business Start-up Team?EntrepreneurTechnical InnovatorA Technical Delivery SpecialistA Sales personA Finance/Admin person
The Business Start-up TeamEntrepreneurDelivery SpecialistSalesTechnical InnovatorFinance/ admin
What will they do?Entrepreneur: communicates vision, aims, goalsDelivery Specialist: ensures that goods/services are delivered to the customer on time and to spec: the second techieSales Person: goes out and gets business for the company, another great communicatorTechnical Innovator: the ideas person, comes up with new productsFinance/ Admin person: watches the cash and sets up systemsFrom: GSC6001 Entrepreneurship and Business Planning
The Entrepreneurs World: The MarketBusiness has only two basic functions: Marketing and Innovation. Marketing and Innovation produce results. All the rest are Costs.Peter F DruckerManagement Guru What is Marketing?
MARKETING DEFINED:Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably. Chartered Institute of Marketing
NEEDS, WANTS, DEMAND AND EXCHANGEMarket ResearchNeeds Wants Demand EXCHANGEOffers for sale ProductFrom: GSC6001 Entrepreneurship and Business Planning
The Selling Concept (after Kotler et al (1996)Starting pointFocusMeansEndsFactoryExisting productSelling & promotionProfits through sales volume
The Marketing Concept (after Kotler et al 1996)Starting pointFocusMeansEndsMarketCustomer needsIntegrated marketing mix
Profits through customer satisfaction
The Entrepreneurial Marketing Process: the four + four Is (after Stokes, 2000)Incremental InnovationIdentification of target marketsInteractive marketing methodsInformation-gathering through networksInfluence of word of mouthImage-buildingIncentivesInvolvement
CREATING CUSTOMER VALUECUSTOMERVALUEPERCEIVEDBENEFITSPositiveNegativeProduct benefitsService benefitsRelational benefitsImage benefitsMonetary costsTime costsEnergy costsPsychological costs(After Jobber, 2001)PERCEIVEDSACRIFICE
The Marketing Mix(formerly known as the 4 Ps)A classification of marketing decisions made in terms ofProductPricePromotionPlacePeopleProcessesPhysical evidence
Positioning Yourself in the MarketIdentify characteristics of target marketIdentify factors of critical importance to target marketFocus all elements of the marketing mix on that market
Ten Questions you should be able to answer about your Market (1)1. What is my target market?2. What is the size and accessibility of my target market?3. What is the profile of my target customer?4. Who are my potential major trade customers?5. How will my products/services solve my customers problems
Ten Questions you should be able to answer about your market (2)6. How does the customer buying process work?7. What factors will make customers increase or decrease their buying?8. What is my USP (Unique Selling Point)?9. Can I get a major share of a niche market, rather than a small share of a large market?10. What are the current trends in the market?
Five Questions you should be able to answer about your Competitors1. Who are my major competitors?2. Where are my major competitors?3. What are the strengths & weaknesses of competitors?4. How loyal are customers to current competitors?5. Who will be my competitors in one years time? - Know your Enemy!
Marketing as a Corporate Function Marketing is so basic that it cannot be considered to be a separate function. It is the whole business seen from the point of view of its final result; that is the customers point of view.Peter Drucker
Developing a Marketing Strategy: Where are we now? (with our products/services) Where do we want to be? (marketing objectives, targeting, segmentation analysis)How do we get there? (marketing mix strategies, resources available)How do we ensure we get there? (control & feedback)
Setting Objectives that are SMARTS - SpecificM - MeasurableA - AchievableR - RealisticT - To Time
Developing a New Product/ Service: StagesIdea GenerationIdea ScreeningConcept Development & TestingBusiness AnalysisProduct Development & TestingTest TarketingCommercialisation/Mass Production
The Product Life Cycle
Adoption of an Innovation by different market segments: e.g. calculators (after Jobber, 2001)Sales ZMKTimeEngineers, scientistsCommercialGeneral publicSchoolchildrenInnovatorsEarly adoptersEarly majorityLaggardsLate majorityFrom: GSC6001 Entrepreneurship and Business Planning
Everything is worth what its purchasers will pay for itSyrus Uncovering unmet customer needs and problems
Match technological capabilities to solving those problems
Move projects through enterprise and into the marketThe Role of Marketing - Summary