ENTREPRENEURSHIP

What we will discuss

• Introduction• How to start new venture (opening profile)• Entrepreneurial Strategies• How to go global• Intrapreneurship• e-Entrepreneurship • Legal Issues• Myths• Dark sides • Conclusion

• French word

• It litterly means GO BETWEEN or BETWEEN TAKER

• Entrepreneurs are in all fields

• Shortest available definition

Individual who takes risks and starts something new

Conclusion from History

History has given these traits to Entrepreneurship

• Initiative Taking

• To turn resources and situation to practical account

• Acceptance of Risk of failure

• Newness and creation

Glimpse of Entrepreneurial Skills

Business Management Skills • Planning and Goal setting (do it

creatively)• Decision Making• HRM

Technical Skills • Oral Communication• Listening Skills

• Organizing things• Management Style

• Being a team player

Personal Skills • Inner Control( EQ Level)

• Risk Taker• Change Oriented• Sky High Vision

Why people become Entrepreneurs

Entrepreneurs who started in their 20s

• Microsoft (Bill Gates & Paul Allen)

• Dell Computers (Michael Dell)

• Federal Express (Fred Smith)

• Nike (Phil Knight)

• Starbucks (Howard Schultz)Bill Gates

Michael DellFred Smith Phil KnightHoward Schultz

• The story is an E-Commerce Dream• Jeff Bezos was the Time magazine’s Person of the year in 1999Our main focus• What Amazon did & does• What makes it different from other e-commerce web sites

Brief Introduction

• Founded by Jeff Bezos in 1994 and launched in 1995• Headquarters in Seattle Washington USA• Revenue 10.71 billion (2006)• Employees 12,000 (2005)• Ships globally on selected items

• Started with a unique idea (selling books online)

Amazon Headquarters

On June 21, 2003, Amazon coordinated what was at the time one of the largest sales and distribution events in e-commerce history with the sale of over 1.3 million copies of Harry Potter and the Order of the Phoenix.

Timeline: A Few Highlights (how they Grab

successes)• 1994: Amazon.com is incorporated.

• 1995: It sells its first book. • 1996: It launches its affiliate program ("Associates Program"). • 1997: It goes public. • 1998: It buys the Internet Movie Database (IMDb) and opens two new Amazon stores: Music and

DVD/Video. • 1999: It launches Amazon Auctions and zShops and opens six new stores: Consumer

Electronics, Toys & Games, Home Improvement, Software, Video Games and Gift Ideas. • 2000: It launches Amazon France, Amazon Japan and Amazon Marketplace and opens two new

stores: Kitchen and Camera & Photo. • 2001: It introduces the "Look Inside the Book" function and teams up with Target stores. • 2002: It launches Amazon Canada and Amazon Web Services and opens two new stores: Office

Products and Apparel & Accessories. • 2003: It launches Amazon Services and A9.com subsidiaries and opens three news stores:

Sports & Outdoor, Gourmet Food and Health & Personal Care. • 2004: It buys Joyo.com (which becomes Amazon China) and opens one new store: Beauty. • 2005: It buys BookSurge LLC.

• Amazon.com BasicsAmazon.com sells lots and lots of stuff. The direct Amazon-to-buyer sales approach is really no different from what happens at most other large, online retailers except for its range of products. You can find beauty supplies, clothing, jewelry, gourmet food, sporting goods, pet supplies, books, CDs, DVDs, computers, furniture, toys, garden supplies, bedding and almost anything else you might want to buy.

• Customer Tracking• Multi-leveled e-

commerce

Product Lines

Product Lines

If If YouYou feel that you have a THIRST of feel that you have a THIRST of games, then AMAZON.COM is a games, then AMAZON.COM is a PARADISE for you (really, believe me)PARADISE for you (really, believe me)

Product Lines

Entrepreneurship (Findings)

• May result in heavy losses (Chance of Failure is high)

• May result in heavy gains (unique and creative products and practices)

• But one thing is for sure will definitely change the shape of a competitive market (forcing competitors to change their past practices i.e. involving them in a new competition)

• Same happened with Amazon and the Books industry (Barnes & Nobles followed Amazon by offering their own website

How the Entrepreneurs go Global?

The quest continues i.e. the surge for expansion (growth); the answer lies in going global

Entrepreneur goes Global

In business Going Global means to start business in other country of the world.

Global thinking is important

Doing business Globally is a profitable Strategy.

Method of starting business internationally

Importing Exporting Licensing Franchising Joint ventures Direct foreign

investment

How Amazon goes Global• Amazon.com, is an American electronic

commerce company based in washington It was one of the first major companies to sell goods over the internet.– So one has learned a lesson that going global

could be possible through a new type that is become an “e-Business”

– You are physically in a location but your products or partner’s products through your platform could be transported globally

• Amazon has establish separate website in canada,UK,Germany,Austria,France,China& Japan and ships globally on the selected product.

• The company's global headquarters is located onseattle,washingtons.

Intraprenuership & e-Entrepreneurship

Types of Entrepreneurship

Intrapreneurship is Entrepreneurship practiced by people within established

organizations.  

Very Simply Put …………

Intrapreneurship• Limited within an organization.

• Needs Permission.

• Changes the system from within.

• Utilizer of resources.

• Faces internal competition.

Entrepreneurship• Beyond Limits.

• Free to do.

• Makes the system.

• Produces than utilizes.

• No internal competition.

vs

What causes or retards Intrapreneurship?

• The costs of failure too high, and the rewards of success are too low .

• Inertia caused by established systems that no-one is willing to change.

• Hierarchy.

e-EntrepreneurshipKeywords:

• e-business • e-entrepreneurship• Net economy • Phases of development • Success factors

Amazon is a true example of e-Entrepreneurship

Issues, Myths and Drawbacks of Entrepreneurship

The difficult side of Entrepreneurship!

• Legal Issue for the Entrepreneurs

• Intellectual property:

Any patents, trademarks, copyrights,

or trade secrets held by the entrepreneur.

The myths of entrepreneurship

• 'Entrepreneurs are born, not made'

• 'Entrepreneurs are academic and social misfits'

• 'Entrepreneurs fit an ideal profile'

• 'All you need is money to be an entrepreneur'

• 'All you need is luck to be an entrepreneur'

The dark side of entrepreneurship

• The need for control• Sense of distrust• Desire for success (Motivation)• External optimism• Stress• The concept of risk

Six Deadly Mistakes of Entrepreneurship

1. Management mistakes

2. Lack of experience

3. Poor financial control

4. Weak Marketing efforts

5. Failure to develop a strategic plan

6. Uncontrolled growth

Entrepreneur’s CredoFor every yes, there will be ten no'sfor every high, there will be three lows

For every wrong reason, there will not be a rightfor every decision, no black and white

For every ounce of confidence, a pound of doubtfor every dollar in, three will go out

For every false start, there need only be one that is truefor every idea not pursued, denies the entrepreneur in you

One Important question remains!

How to start an Entrepreneurial Business

(Venture)

DEVELOPING THE ENTREPRENEURIAL PLAN

1. Environmental Assessment

2. Marketing Research

3. Financial Preparation

4. An Effective Business Plan

THE ENVIRONMENT FOR NEW VENTURES

The General Environment Assessing The Economic

Environment

Regulatory Environment

Examining The Industry

Environment

Technological uncertainty

Strategic uncertainty

Competitive Analysis

THE ENVIRONMENT FOR NEW VENTURES

The Specific Environment

Researching The Location

Community Demographics

Economic Base

Overall Business Climate

MARKETING RESEARCH FOR THE NEW VENTURES

Marketing Research

Developing The Marketing

Consumer Behavior

Telemarketing and marketing

on internet

THE FINANCIAL PLANNING

Budgets

Operating Budget

Cash flow Budget

Break-even Analysis

Ratio Analysis etc

THE BUSINESS PLAN

Information Needs

Market Information

Operation Information

Needs

Financial Information

Needs

Internet

THE BUSINESS PLAN

Elements Of a Business Plan

Summary

Business Description

Marketing Segment

Location Segment

Management Segment

Updating The Plan

Strategies for Growth and Managing the Implications of Growth

• Opportunities and Growth

Strategies

1. Penetration Strategies

2. Market Development Strategies

3. Product Development Strategies

4. Diversification Strategies

- Example:-

Strategies for Growth and Managing the Implications of Growth

• Managerial Challenges

• Entrepreneur interaction with employees

• Better and efficient use of time

• Basic principles of effective time management

• Entrepreneurs and their abilities and aspirations