Introcution-to-Business-商学导论PPT-IB06

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,IB-CHAPTER6,*,Entrepreneurship andBusiness Planning,Learning Goals,Identify,advantages & disadvantages of being an entrepreneur & creating a business,Identify market conditions,that,should be assessed before entering a market,Explain how to develop a competitive advantage,Explain how to develop a business plan,Identify risks of a business & explain how to manage them,2024/9/13,2,IB-CHAPTER6,Key Terms,initiative,segments,market share,business plan,economies of scale,business risk,2024/9/13,3,IB-CHAPTER6,Creating a New Business,Small businesses are created by entrepreneurs who,have a business idea &,willing to invest the,ir,own money to back the idea,Internet makes the process easier,Some useful websites: p167,2024/9/13,4,IB-CHAPTER6,Resources A,vailable to Assist Entrepreneur,SBA:,The Small Business Administration web site,http:/www.sbaonline.sba.gov,provides many resources related to creating a small business,Yahoo !:,Yahoo ! Small Business Site, a good place to find links for more information,American Express:,American Express Small Business Site,http,:/ much information and links that can help during start up.,2024/9/13,5,IB-CHAPTER6,Entrepreneurship,Disadvantages,Advantages,- Profit Potential,- Your Own Boss,Direct,Rewards,More self-satisfaction,- Loss Potential,- Accountability,- Failure Possibility,2024/9/13,6,IB-CHAPTER6,Entrepreneurial Profile,Risk tolerance,Creativity,Initiative,need to have ambition,need to be persistent,2024/9/13,7,IB-CHAPTER6,Market Conditions,Demand,Competition,Labor,conditions,Regulatory,conditions,2024/9/13,8,IB-CHAPTER6,Demand,partially influenced by,general economic conditions,: buy more when economy strong & have a good income,influenced by conditions within the specific market of concern,eg. baby clothes,number of baby born,hotels in Florida,weather,changes over time within a particular market,A firm should closely examine:,Product,Markets,Change,Flexibility,2024/9/13,9,IB-CHAPTER6,Competition,Market share,: a firms sales volume as a percentage of the total sales in a specific market,Limited competition:,easier to increase market share, (higher price), more revenue,Intense competition, market share may decline, lower price, less revenue,2024/9/13,10,IB-CHAPTER6,Competition,2024/9/13,11,IB-CHAPTER6,Segmented market,by types of customers,by quality,2024/9/13,12,IB-CHAPTER6,Labor,Conditions,Labor Costs,Unions,2024/9/13,13,IB-CHAPTER6,Regulatory Conditions,state/government regulations,especially restrictive regulations,industry regulations,2024/9/13,14,IB-CHAPTER6,Impact of Regulations on Small Businesses,2024/9/13,15,IB-CHAPTER6,Effects,of Market Conditions on,a Firms Performance,Exhibit 5.1,2024/9/13,16,IB-CHAPTER6,Industry Research,After tracking pet industry statistics for more than a decade, The American Pet Products Manufacturers Association (APPMA) released new figures today proving the pet industry is leading the pack. Pet spending has more than doubled from $17 billion in 1994 to a projected $35.9 billion for 2005. And, according to the U.S. Census Bureau, the pet industry is now the seventh largest retail segment in the country*.In 2005, Americans spending on pets is projected to be higher than ever:,$14.5 billion for food,$8.8 billion for supplies and O-T-C medications,$8.6 billion for veterinarian care,$1.6 billion for live animal purchases,$2.4 billion for other services,Pet spending in 2004 was even more successful than projected, with total sales coming in at $34.4 billion. This positions the pet industry 60 percent larger than the toy industry ($20 billion) and 33 percent larger than the candy industry ($24 billion).,Source:,www.appma.org/press_releasedetail.asp?id,=51 - 33k,acessed,7/11/05,2024/9/13,17,IB-CHAPTER6,Developing Competitive,Advantage,Ways to maintain or increase market share:,ONE,of FOUR,Low-cost production,Better quality than competitors,Product differentiation,Technological Advantage,(Revise for GLOBAL,Markets),2024/9/13,18,IB-CHAPTER6,Key Advantages,Produce products efficiently,efficient management of HR,efficient management of production process,Produce Higher-Quality Products,higher quality without excessive costs,2024/9/13,19,IB-CHAPTER6,Web-Based Business,Advantage of Web-Based Business,replace a store,reach additional customers,Expenses of Web-Based Business,cost of developing a website & installing a shopping cart system,cost of screening credit card payments,cost of paying a website firm monthly fee,cost of paying marketing expenses to increase its visibility to customers,2024/9/13,20,IB-CHAPTER6,SWOT Analysis,Firms use SWOT analysis to develop a competitive advantage,Assess,strengths,and,weaknesses,Identify,opportunities,and,threats,Use strengths to capitalize on opportunities,&,reduce exposure to threats.,2024/9/13,21,IB-CHAPTER6,Competing Within an Industry,Intense competition can separate the performance of well-managed firms from poorly managed firms,Firms should:,Assess its competitors.,Develop a competitive advantage.,2024/9/13,22,IB-CHAPTER6,Sources of Industry Information,Many firms attempt to monitor,market conditions,on their own.,Wall Street Journal,Value Line Investment Survey,Standard and Poors Industry Outlook,www.lib.pdx.edu,2024/9/13,23,IB-CHAPTER6,Exposure to Industry Characteristics,Some firms are more exposed to,industry,conditions than other firms.,Factors,The firms market share,The firms focus on its main industry,Starbucks vs. McDonalds,2024/9/13,24,IB-CHAPTER6,Assignment,Use a SWOT Analysis for your company.,Which,Strategy will you company use?,List 4 tactics you will employ,2024/9/13,25,IB-CHAPTER6,Business Plan,Environments,Management,Marketing,Financial,2024/9/13,26,IB-CHAPTER6,Developing a Business Plan,a detailed description of the proposed business, incl. description of product or service, types of customers, resources needed for production, marketing needed, & financing required.,2024/9/13,27,IB-CHAPTER6,Assess the Environment,Economic,Industry,Global,2024/9/13,28,IB-CHAPTER6,Boston Consulting Group Model,2024/9/13,29,IB-CHAPTER6,Management Plan,Organization,Production,H.R.,2024/9/13,30,IB-CHAPTER6,Hierarchical Structure,2024/9/13,31,IB-CHAPTER6,Features of Hierarchical,Structure,Authority and responsibility and clearly defined. Often centralised with the most important decisions being taken by senior management.,A,narrow span of control. Each manager has a small number of employees under their control. This means that employees can be closely supervised.,Clearly defined promotion path.,Can be bureaucratic and respond slowly to changing customer needs and the market.,Communication across various sections can be poor especially horizontal communication.,2024/9/13,32,IB-CHAPTER6,Flat Structure,2024/9/13,33,IB-CHAPTER6,Features of Flat Structure,More/Greater communication between management and workers.,Fewer levels of management which includes benefits such as lower costs.,Better team sprit.,Structure limited to small organisations.,Function of each department/person could be blurred and one may merge into the job roles of others.,2024/9/13,34,IB-CHAPTER6,Marketing Plan,Product,Pricing,Distribution,Target Market,Promotion,2024/9/13,35,IB-CHAPTER6,Target market?,2024/9/13,36,IB-CHAPTER6,Target market?,2024/9/13,37,IB-CHAPTER6,Target market?,2024/9/13,38,IB-CHAPTER6,Financial Plan,Financing,Feasibility,2024/9/13,39,IB-CHAPTER6,Business Plan Decisions,2024/9/13,40,IB-CHAPTER6,Business Risks,2024/9/13,41,IB-CHAPTER6,Business Insurance,2024/9/13,42,IB-CHAPTER6,Assessing a Business Plan,Potential revenue,Potential demand for product or service,Potential expenses,Profit potential,2024/9/13,43,IB-CHAPTER6,Online Resources,Advice and basic information,Yahoos Small Business site,American Express,Small Business Administration,Financing Options,Quicken Small Business,G,The Elevator,Business Planning Software,2024/9/13,44,IB-CHAPTER6,Chapter Summary,Demand, competition,labor,and regulatory,conditions,influence business performance.,Firms that have large market share and focus most of their business on that industry will be most affected by industry conditions.,Firms can successfully compete by assessing their main competitors and developing a competitive advantage,(what,are they?).,FOCUS ON,ONE,MAIN ONE,2024/9/13,45,IB-CHAPTER6,Learning,Goals (revisited),Identify,advantages & disadvantages of being an entrepreneur & creating a business,Identify market conditions,that,should be assessed before entering a market,Explain how to develop a competitive advantage,Explain how to develop a business plan,Identify risks of a business & explain how to manage them,2024/9/13,46,IB-CHAPTER6,