Presented by Dr. Kelli Bodey and Dr. Simon Mzungu Department of Marketing, Griffith Business School. Griffith Business School
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1 Presented by Dr. Kelli Bodey and Dr. Simon Mzungu Department of Marketing, Griffith Business School Griffith Business School
2 1. Introduction to Entrepreneurship 2. Dimensions of Entrepreneurship 3. The Entrepreneurial Mindset and Behaviour 4. Overview of Entrepreneurial Process 5. Summary Griffith Business School
3 Elevator Pitch Is this an example of of where YOU want to be?
4 What innovations have emerged in YOUR lifetime? What benefits did these innovations bring?
5 7 Dimensions of Entrepreneurship (1) Proactiveness Opposite of reactiveness External environment is not a given; it can be influenced Treating environment as an opportunity horizon (2) Obsession with Opportunity Opportunity is pain in the market needing a cure Opportunities are unnoticed market openings that are sources of sustainable profit potential
6 Dimensions of Entrepreneurship (3) Customer Intimacy Emphasis is on customer relationships Involves creative approaches to customer acquisition, retention & development. Involves creating emotionally- satisfying customer experiences/visceral relationships Examples: Virgin brands (fun) Apple (fun innovative products/stores)
7 Dimensions of Entrepreneurship (4) Innovativeness Ability to maintain a flow of new ideas that result in: new products (e.g. Iphone Ipad) processes (e.g., drive through coffee, internet banking) technology applications (e.g. apps/ pizza) new markets (e.g. Health Retreats, baby boomers, tweens) Con7nually champion new approaches to segmentation, pricing, brand management, packaging, customer communications and relationship management, credit, and other operational activities Market- driving rather than market- driven
8 Dimensions of Entrepreneurship (5) Calculated Risk-Taking Identifying risk factors and then mitigating or sharing the risks with others Managing resources so that they can be quickly committed or withdrawn, to enhance flexibility Calculated risk taking is NOT GAMBLING!!
9 Dimensions of Entrepreneurship (6) Resource Leveraging Involves doing more with less Reducing current resource limitations Several ways to leverage resources include: Doing more with current resources Using resources that others cannot Combining one resource with another to create higher value Using other people s resources their brains and/or money (e.g., brains trust)
10 Dimensions of Entrepreneurship (7) Exceptional Value creation Innovative value creation Seeking to discover untapped sources of customer value Creating unique combinations of resources to create value Relationship- focused rather than transaction- focused Examine each marketing mix element for new sources of customer value Example: Smart phone
11 Any questions? Griffith Business School
12 The entrepreneurial mindset and behaviour
13 Why be an entrepreneur? Desire for independence Personal advancement - investing time and money Necessity, especially through adversity E.g. loss of employment
14 Who are the entrepreneurs? A person who habitually creates and innovates to build something of recognised value around perceived opportunities. Bolton & Thompson Ø Can you recognise any of the dimensions of entrepreneurship in this definition?
15 Dreamers!! Would- be entrepreneurs live in a sea of dreams. Their destinations are private islands places to build, create and transform their particular dreams into reality. Shefsky, 1994
16 Entrepreneurship The interaction of: inner control planning and goal se/ng risk taking innova2veness reality percep2on use of feedback decision making human rela2ons independence.
17 Characteristics of entrepreneurs Commitment, determination and perseverance Drive to achieve Opportunity and goal orientation Initiative and responsibility Persistent problem- solving Internal locus of control Tolerance for ambiguity and failure Calculated risk- taking High energy level Creativity and innovativeness Vision Self- confidence and optimism Independence Team- building
18 Being entrepreneurial Entrepreneurial Entrepreneurial mo7va7on Entrepreneurial cogni7on
19 The Dark Side!!? How could entrepreneurship be seen as damaging or dangerous?
20 The dark side Are entrepreneurs mad? Takes a bit of madness to start a business A business can drive one a little mad Bolton & Thompson (2004) examine entrepreneurs in the shadows including: Ø Opportunistic entrepreneurs who adopt a flawed strategy or fail to deliver Ø Empire- builders who grow too quickly and lose control, and try to cover- up Ø Entrepreneurs who attract controversy Ø Dishonest entrepreneurs.
21 Entrepreneurial risks Financial exposure to bankruptcy Career ability to go back? Family and social missing out Psychic psychological impact of failure
22 Personality Entrepreneurs are often Type A Personalities Ø Ø Ø Ø Ø Ø Impatient, demanding and overstrung Chronic and severe sense of time urgency Constant deadlines in multiple projects Neglect other aspects of life Take on excessive responsibility Linked to coronary heart disease
23 Sources of stress Loneliness Immersion in business People problems Long hours and distraction Failing to take time off Others fail to be sufficiently capable and motivated Need to achieve Huge ambition
24 Any Questions?
25 The Entrepreneurial Process New Venture Development Process: Idea Generation and Opportunity Analysis Business Concept Formulation Business Model Formulation Feasibility/Viability Analysis Business Plan Writing New Venture Launch Note: Entrepreneurs identify pain in the market and develop a cure for it!!!!
26 Idea genera7on and opportunity recogni7on Three most common sources of new business ideas Techniques for generating ideas
27 Three sources of new business ideas Changing Unsolved Gaps in the environmental problems marketplace trends
28 Three Most Common Sources of Business Ideas Changing environmental trends Economic trends Social trends Technological advances Political and Regulatory changes Unsolved problems Gaps in the marketplace
29 Changing Environmental Trends Economic trends When the economy is strong, customers are more willing to purchase discretionary products and services
30 Changing Environmental Trends Social trends Impact the way people live their lives and the products and services they need Example: Healthier lifestyle, Fast food Products often do more to satisfy a social need than the actual need the product fills Example: Fashion, entertainment
31 Changing Environmental Trends Technological advances Ongoing source of new business ideas Technologies can be used to satisfy basic or changing human needs Once a technology is created, products emerge to advance it Example: Cell phone
32 Changing Environmental Trends Political and regulatory changes New laws create opportunities for entrepreneurs Changes in government regulations motivate entrepreneurs to differentiate themselves by exceeding the regulation Political change can encourage the emergence of new business ideas
33 Unsolved Problems Many companies have been started by people who by trying to solve a problem - create a business idea Entrepreneurs can capitalize by modifying products created by advances in technology
34 Gaps in the Marketplace Key large retailers compete on price and target the mainstream customer, leaving gaps in the marketplace New business ideas can be formed by taking an existing product and targeting a new market or geographic area
35 Techniques for Generating Ideas Casual observation, intuition, serendipity, or luck Three sources of business ideas Brainstorming Focus groups Library and Internet research
36 Brainstorming A brainstorming session is targeted to a specific topic about which a group of people are instructed to come up with ideas Participants share their ideas and react to others in a lively, freewheeling manner
37 Focus Groups A focus group is a gathering 5 to 10 people who are selected because of their relationship to the issues being discussed
38 Library and Internet Research The best business ideas include extensive library and Internet research Use search engines and alerts for Internet research
39 Feasibility/Viability Analysis 1. Product/Service feasibility Concept testing Does it solve someone s problem? Prototype development Can it be manufactured/assembled/produced? Usability testing Does it work as intended? Functionality/ in test- customer s hands
40 Feasibility/Viability Analysis 2. Industry/Market feasibility Industry attractiveness Competition (i.e., substitutes, barriers to entry) Can rivals copy the product and dilute your profits? Can rivals serve your customer by a different means? Can you control costs & keep price down and quality up? Market size and market growth Market timeliness Window of opportunity
41 Feasibility/Viability Analysis 3. Organizational feasibility Management capability? Knowledge, education, relevant business experience Passion, persistence, personal traits A sufficiently talented Top Management Team? Resource availability and sufficiency? Availability Can we get the resources we need Appropriately- skilled people, component parts, Sufficiency Can we get as much as we need? Particularly the funding
42 Feasibility/Viability Analysis 4. Financial feasibility Capital requirements can we raise these? Seed stage? Start- up stage? Growth stage? Entrepreneur s income will be sufficient? Opportunity costs? Intrinsic benefits?
43 10 Reasons for New Venture Failure Market reasons Customers didn t know about it Customers didn t like it Customers couldn t afford it Technology failure Product did not work Quality was unreliable Didn t have Intellectual Property Protection Management failure Venture was underfinanced Managers were not sufficiently educated/trained Managers were inexperienced in business Managers lacked commitment and resilience
44 Summary What is entrepreneurship? Dimensions of entrepreneurship Entrepreneurial mindset and behaviour Entrepreneurial process Idea generation and opportunity recognition Feasibility/viability analysis Shark Tank
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