Category: Entrepreneurship

Upbringing and environment can influence entrepreneurship, but this is not enough. Many people have good opportunities, but not all of them become great.

In the case of Mark Zuckerberg, these factors had a positive impact since his parents could fully provide for his basic needs. Mark Zuckerberg grew up in a wealthy, well-educated family in a small village in New York County (Hartmans, 2021). His parents helped him develop his hobby; they hired a tutor; used programs that Mark created for communication at home and at work (Biography.com Editors, 2018). Zuckerberg earned a reputation as a seasoned developer in college and participated in several projects but then dropped them for Facebook.

The theory of successful entrepreneurship is a combination of several processes. These are to seize opportunities, integrate resources, innovate and act quickly (Hisrich and Kearney, 2014). Mark Zuckerberg combined these options, being innovative and passionate about their idea, which is the key to success (Wei et al., 2020). A limitation of the theory may be a lack of personality traits that inhibit the process.

A prime example for comparing Mark Zuckerbergs success is Sundar Pichai, CEO of Google. He was born into a low-income family in India; his father was an electrical engineer. Additionally, like Mark, from childhood, he was committed to technology but had fewer opportunities. Sundar and Mark used leadership and personality to shape and implement innovative ideas (Singh, 2019). A suitable theory for the two entrepreneurs is dependence on market success, not genius ideas (Drucker, 2015).

Zuckerbergs abilities, personality traits, and passions helped him achieve success. Entrepreneurship can be stimulated by family background via supporting an idea (Ranwala, 2016). Furthermore, the individual-opportunity framework emphasizes that entrepreneurial development requires both entrepreneurial people and opportunities (Individual-Opportunity Nexus Theory, 2017).

The environments and obstacles in the case of Mark Zuckerberg have helped shape his unique management style. He has developed a transformational leadership style in action, which is why he is described as a hopeful and aggressive person (Geekmaster, 2020). In addition, hard work and the ability to establish contact with people were instilled in him from childhood. Mark is an inspiring person who has leadership qualities and knows how to take advantage of opportunities.

Reference List

Biography.com Editors (2018). Mark Zuckerberg. The Biography. Web.

Drucker, P.F. (2015). Innovation and entrepreneurship: Practice and Principles.. 2nd ed.: Oxon: Routledge.

Geekmaster (2020). Mark Zuckerberg  Leadership Style & Principles. Geeknack. Web.

Hartmans, A. (2021). Mark Zuckerberg turns 37 on Friday. Heres a look into the life, career, and controversies surrounding the billionaire Facebook CEO. Web.

Hisrich, R.D. and Kearney, C. (2014). Managing Innovation and Entrepreneurship. Abingdon: Routledge.

Individual-Opportunity Nexus Theory. (2017). Individual-Opportunity Nexus Theory. Web.

Jain, A. (2020). Sundar Pichai Biography : Interesting Facts About Google CEO. IndiaTimes. Web.

Ranwala, R.S. (2016). Family Background, Entrepreneurship Specific Education and Entrepreneurial Knowledge in Venture Creation. International Journal of Scientific and Research Publications, 6(9), pp.495501.

Singh, H. (2019). Sundar Pichai: Biography, Education and Salary. Jagranjosh. Web.

Wei, J., Chen, Y., Zhang, Y. and Zhang, J. (2020). How Does Entrepreneurial Self-Efficacy Influence Innovation Behavior? Exploring the Mechanism of Job Satisfaction and Zhongyong Thinking. Frontiers in Psychology. Web.

Introduction

Launching a new company is a challenging task and requires careful consideration of the product features, positioning strategy, and development opportunities. John and Quincy want to establish a sustainable business that offers customers an environmentally friendly option of powering their homes. The five models of entrepreneurship outline a multidisciplinary explanation of factors that enable the establishment of new ventures. This paper aims to examine the five theories in the context of Quincy and Johns idea and provide an assessment of hurdles that they may encounter.

Theories of Entrepreneurship

The five theories describing entrepreneurship aim to explain this phenomenon from different perspectives. From the opportunity-based theorys perspective, John and Quincy are using the current advancement in technology, such as the ability to develop small power sources for residential homes, and changing consumer preferences, which in this case are connected to sustainability and green energy development. Drucker introduced this approach, and it outlines the exceptional capability of people who are establishing a company to see new market opportunities and apply them (Kuratki, 2017).

Therefore, their actions are facilitated by changes in other fields, such as technology, because the developments of scientists and engineers make it possible to employ power sources other than traditional ones. Solow argues that over 80% of the economic growth is facilitated through the introduction of new technology, which emphasizes the importance of utilizing market opportunities as illustrated in the case of Quincy and John (as cited in Acs, Estrin, Mickiewicz, & Szerb, 2018). Therefore, this theory provides an assessment of an important characteristic that entrepreneurs have  an ability to see and use new developments by establishing companies.

Another important aspect of this new business is the willingness of consumers to invest in independent power sources. Unarguably, people will want to consider the economic implications of this solution, that is, whether they will be able to save money on electricity bills and avoid sudden blackouts in emergency cases. However, the preferences of customers are also a significant predictor that has to be considered when developing a new product. Mittal and Krejci (2017) state that limited quantities of fossil-based fuels are shifting the focus of the energy sector towards renewable sources, which is a much more sustainable approach. Environmentally conscious consumers are aware of this issue and choose products that target the subject in question.

Economic entrepreneurship theories are connected to the economic conditions in a state that determine access to resources and customers ability to purchase goods. For instance, the classical approach emphasizes free trade and competition (Kuratki, 2017). However, it was criticized, and the neo-classical and Austrian Market Process (AMP) models emerged to bridge the gaps between theory and actual entrepreneurship.

AMP argues that entrepreneurship is the primary factor that facilitates the growth of the market (Lawal, Worlu, & Ayoade, 2016). The neo-classical approach states that entrepreneurship is not limited to a simple exchange of goods and money, and is a more complex system. While these theories are viable, they offer little insight into the question of why Quincy decided to leave his well-paid job as a real estate agent and begin working in a different industry. A more comprehensive approach that considers the environment and personal characteristics of a person can provide an understanding of this issue.

The psychological theory targets the specific traits that an individual has, allowing him or her to become an entrepreneur. Based on this approach, an individual has to have a particular set of characteristics that will allow the hive to notice a market opportunity, establish a company, and guide it to success. Tolerance for ambiguity, risk-taking, and the ability to innovate are thought to be the major determinants of ones entrepreneurial future (Kuratki, 2017).

One model that is part of the psychological theory is the locus of control, according to which the perception of events has a significant impact on a persons entrepreneurial ambitions. This can provide an understanding of why Quincy chose to become an entrepreneur since his environment and perception may have shaped a vision that emphasizes the need to be innovative. In his current position as a real estate agent, he would not be able to achieve that.

The sociological theory implies that the social context matters when determining whether a potential entrepreneur will choose to start a company or not. There are four levels of analysis within this approach; one of them focuses on networks allowing an individual to build relationships and make connections that can predetermine the success of his endeavor. Quincy and Johns colleges, friends, and family members may have affected their desire to become entrepreneurs and develop an environmentally friendly product.

The anthropological theory is connected to the development of the community and incorporates essential elements such as customs, beliefs, and origin. Stuetzer et al. (2018) offer support to this theory arguing that the context matters when evaluating entrepreneurial efforts. Therefore, the context or environment in which a prospective entrepreneur life has to be considered when assessing the idea (Kuratki, 2017).

Within this theory, the cultural model was developed, arguing that an entrepreneur establishing a firm is significantly affected by his culture. In the case of Quincy and John, it can be concluded that they live in a society that is driven by innovation and economic growth has a significant impact on their life choices. Also, the actual decision of Quincy to leave his successful career as a real estate agent and pursue entrepreneurship can be facilitated by the culture of entrepreneurship in the US. According to Buhanan (2015), approximately 27 million US citizens have started a business. This fact is significant because in a developed economy, finding a stable job with a good salary is easier than establishing a firm and attempting to gain a significant market share.

The resource-based theory views access to financials, human capital, and social resources as the primary elements that facilitate the ability of entrepreneurs to innovate and create companies. From the perspective of the case, Quincy has earned some capital while working as a real estate agent and he has his brother John as part of the team. It is unclear, however, whether either of them possesses the necessary engineering skills and knowledge for constructing the energy source. This theory is similar to the opportunity-based model because both emphasize the novelties. However, the resource-based view assesses the actual ability of an entrepreneur to access the necessary capital.

Initial Hurdles

Unarguably, establishing a business is a challenging task and will require significant input from both John and Quincy. Since there are two positioning strategies, the first issue is in choosing one that will be suitable for the current market demands (Nalca, Boyaci, & Ray, 2018). Also, this will predetermine the marketing plan and manufacturing because the products from the two strategies differ.

Wang (2016) argues that green brands selling sustainable products choose a different path of marketing, either emotional or functional, based on the target audience. In the case of John and Quincy, the functional strategy is more viable, and to introduce it to the market they will have to conduct research regarding the economic and environmental benefits of their power supply system. The two men will have to find a source of funding that will allow them to invest in the development of the products. Next, from a legal perspective, Quincy and John may choose to obtain a patent for their power supply product, which is both a costly and lengthy process. However, if avoided, they risk losing their competitive advantage if other companies can replicate their device.

Additionally, the two have not yet established how their products will be sold, which is an essential aspect of the launch strategy. Having a clear distribution strategy is necessary to deliver the product to the consumer and although there are several options, such as partnering up with a distribution company or selling online, it is essential to determine which approach will be used. Another issue is the fact that in developed countries, it is challenging to enter the market and earn a significant share in it (Buchanan, 2015). Arguably, there are a lot of companies operating in this industry that have their market share and consumer trust. Thus, Quincy and John will have to dedicate a lot of attention to building their brand image.

Recommendations

Quincys strategy aims to introduce the sustainable power product to the market as initially intended, with full capabilities allowing users to power some home appliances in a fixed home setting and ultimately fulfill the energy needs of mobile homes. This approach enables targeting a more significant number of individuals because both homeowners and people using mobile houses can be interested in purchasing this product. This will require a substantial investment in marketing camping to ensure that consumers are aware of the brands product. However, the larger customer base will result in more revenue for the company. Additionally, Quincy and John will not have to develop another positioning strategy once they choose to enter a home power supply market, which is the case with Johns idea.

Johns approach is focused on the market of emergency and disaster power supplies, which is more familiar to the consumer. Several issues exist, the first one being that there are companies that already sell products in this market, they have sufficient resources and brand value. One can hypothesize that individuals want to purchase a reliable solution that they can trust in case of an emergency. Additionally, the overall market for emergency power supplies is smaller when compared to fixed and mobile home supplies. In general, Quincys idea appears to be more valid if they are able to secure the necessary resources for the development and marketing of the product.

Conclusion

Overall, based on the five entrepreneurship theories, the decision of Quincy and John to launch a company selling clean and sustainable energy source was facilitated by a variety of internal and external factors. The technological development of power supply sources, personality traits of Quincy and John, their social and cultural backgrounds, as well as resources available to them enabled the launch of their venture. Next, they will have to determine a positioning strategy, decided whether to patent their product or not, and choose a distribution model.

References

Acs, Z.J., Estrin, S., Mickiewicz, T., & Szerb, L. (2018). Entrepreneurship, institutional economics, and economic growth: An ecosystem perspective. Small Business Economics, 51(2), 501-514. Web.

Buchanan, L. (2015). The U.S. now has 27 million entrepreneurs. Inc. Web.

Kuratko, D. F. (2017). Entrepreneurship: Theory, process, and practice (10th ed.). Boston, MA: Cengage Learning.

Lawal, F., Worlu, R., & Ayoade, O. (2016). Critical success factors for sustainable entrepreneurship in SMEs: Nigerian perspective. Mediterranean Journal of Social Sciences, 7(3), 338-346. Web.

Mittal, A., & Krejci, C. C. (2017). Integrating consumer preferences in renewable energy expansion planning using agent-based modeling. Simulation Conference (WSC) 2017 Winter, pp. 4612-4613. Web.

Nalca, A., Boyaci, T., & Ray, S. (2018). Brand positioning and consumer taste information. European Journal of Operational Research, 268(2), 555-568. Web.

Stuetzer, M., Audretsch, D., Obschonka, M., Gosling, S., Rentfrow, P., & Potter, J. (2017). Entrepreneurial culture, knowledge spillovers, and the growth of regions. Regional Studies, 52(5), 603-618. Web.

Wang, H. J. (2016). Green brand positioning in the online environment. International Journal of Communication, 10, 1405-1427.

February 6th

Discovering your creative problem solving is one of the most essential skills that an entrepreneur should possess, in order to develop creative and imaginative solutions to the challenges they face in their businesses. Developing business creativity skills is necessitated by the process of generating and finding new problems and opportunities, conceptualizing challenges, optimizing it into practical plans and solutions, and driving implementation effectively.

February 7th

I learnt that creativity training is composed majorly of breaking barriers that hinder creativity. This can be achieved through the practice of fun which is achieved by working on projects that one is passionate with, fighting the mental fears that people may hold as entrepreneurs, and changing the perspectives that we hold on a challenge.

February 8th

Fostering collective creativity is enhanced through the decision to practice vulnerability by the leadership, which describes their fears and thoughts so that other people can relate to them, and their experiences. This builds organizational compassion which allows innovativeness to become widespread.

February 9th

The use of a value-oriented approach in developing brand loyalty was modeled by SEER. It leads to the growth and development of a firms authentic purpose which functions as a competitive advantage within a highly competitive brand landscape. Eventually, this leads to consumer loyalty. For instance, the consumers advocate for the brand because of their emotional attachment to it.

February 10th

Defining authentic purpose is made possible by using the value-based approach. The use of the social, ethical, and environmental responsibility captures most of the contemporary values of the 21^st Century. It is also argued that the SEER model encompasses the most pertinent issues that face corporate organizations in the modern times.

February 11th

What characterizes people who are involved in starting businesses in the United States? It has been observed that educational attainment is a great predictor of entrepreneurial activities, particularly for the black and Hispanic males. It was observed that a reasonable percentage of the individuals that graduate from this population segment launch entrepreneurial ventures. It was also observed that high levels of household income also had a relationship with the creation of new businesses.

February 12th

The Buyers Life Cycle refers to the processes that make the consumers to idealize the brand and develop a consumer-brand relationship. This implies that the brand evokes its image and perception in the customers mind. It is focused on creating excellent customer loyalty by connecting the authentic purpose of a brand with the values that are held by consumers. This is achieved through the process of accurately presenting a brands core message, various channels and platforms on which it presents itself, and enhancing product and service experiences. It can also be achieved by taking measurements of the strategy that is employed accurately.

February 13th

Pitching an idea presents an entrepreneur with a chance to make an effective value proposition to different stakeholders. It is argued that an ineffective idea pitch can be the hindrance to investment opportunities, and decrease or reduce an individuals collaboration prospects.

February 14^th

A pitch is developed and compiled through various stages that follow a well-developed and logical structure, which will provide the investors and other interested stakeholders all the relevant information that they need to make an accurate and informed decision. A pitch is developed to effectively communicate persuasion and emotions. This will lead the investors to think critically and generate an action.

February 15th

Tips for an Effective Pitch

It is suggested that a pitch should last an average of 90 seconds. The following was listed has the most effective way to utilize the pitch time granted.

• In 5 seconds the entrepreneur should tell his name and the name and nature of his product and business.
• In 15 seconds he should tell an interesting story or ask a question that will evoke emotions of empathy and understanding in the audience of the marketplace problems that they face.
• In 30 seconds the entrepreneur should provide a description of the innovative solution that they process to the above outlined problem. In this they show the uniqueness and innovation of their idea and describe how it will help address the customers pain.
• In 25 seconds the entrepreneur should describe their value proposition. In this they show the relevance and advantage of their business concept over other existing solutions. They also outline their product and service superiority that will grant them market share
• In 15 seconds, the entrepreneur should specify the capital that they are seeking and from how what number of investors and they should also seek their interest in engaging with their business plan as potential investors.

February 16^th

In this section, the Dos and Donts of a pitch were explored. These included simple rules and suggestion to keep to memory during a pitch process.

1. It is suggested that the entrepreneur should memorize the pitch, most importantly the opening, closing and transitions parts of the pitch. An entrepreneur should never read a pitch or even consider the use of notes.
2. Technical jargon and language should be avoided at all cost. An entrepreneur should always consider the use of analogies. They should also not be afraid to express their excitement and passion for the innovation under presentation.
3. Factors that may cause the listener to question the credibility of an entrepreneur such as the use of vague generalities and huge numbers should be distanced away from. All claims made by the entrepreneur should be accompanied with credible facts that are based on research.
4. PowerPoint slides should be avoided or used wisely as they may distract the audience, especially if the PowerPoint slides are too many in number or they are too crowded with words. Listeners may be tempted to stop listening while they struggle to read the written texts on slides.
5. The panelists questions should be answered concisely and quickly. The entrepreneur should attempt to answer all the questions asked.

February 17th

Using Analogy to Change Perspective is essential in the process of a pitch. This can be done by communicating personal analogies that we identify emotionally. We can then develop a potential compressed conflict that is relatable to the idea under presentation.

February 18^th

During the entrepreneurial process, the entrepreneur should develop and maintain momentum that will help them to stir-up ideas in other minds.

February 19th

An innovative strategy is developed by creating new market linkages through the use of new or improved technological competencies that challenges the existing market structures.

February 20th

I learnt that disruptive innovation enables or enhances development of a new market and value network. This leads to the disruption of these developments (new markets and value networks).

February 21st

Intellectual property refers to a legal ideology that offers exclusive rights and recognition to the creations of the mind.

February 22nd

The Protection of Intellectual Property extends to intangible assets which comprise musical, literary, and works of art. Common intellectual property rights include copyrights, trademarks, and industrial design rights.

February 23rd

Sustaining strategy is the kind that fosters improved performance of existing products in aspects that create sustainable value to the existing customer base. It is mostly used by firms that have substantial dedicated assets and integration. It can be readily absorbed or imitated by competitors.

February 24th

Disrupting strategy is a kind of strategy that is focused towards the long-term and involves a business model that creates sufficient profits at the discount prices demanded to attract the low-end consumers. It requires asymmetric skills and motivation and is meant to disrupt the significant competitive players within a market.

February 25th

Programmed problems advocate for a singular right answer and formula. They are also analytical problems with their facts relatively clear. Non-Programmed Problems are the kinds that have no single right answer and no defined formulas to follow. They are also unstructured and messy with too much or too little data.

February 26th

An innovative result involves the various elements that lead to innovative results. These are content knowledge, diverse background, connection to the problem and problem solving preference.

February 27th

Innovative Results Equation comprises of content, principles, skills, processes, tools and the defined functions for each member of the group involved in the problem solving situation.

February 28th

It is thought the process of flexing creativity muscles involves the process of diverging, converging and deferral of judgment, avoiding killer phrases, and the use of brainstorming practices.

March 1st

The functional roles of innovators within a problem solving situation involves the understanding of the process and the content.

March 2nd

Reframing a problem involves being imaginative and factual in order to enable easy development of the creative problem-solving process.

The passion of operating and succeeding in business depends entirely on the sole decision of the person setting up the business. The business requires the owner to have some educational qualifications in business-related courses and good relation with both the employees and the customers. The paper highlights the business environment stating the challanges facing a restaurant owner.

It has been three years since the respondent established a sole proprietorship restaurant business. He started the business in February the year 2009 on lease basis. The process of obtaining the lease took three months before he finally signed the lease papers and eventually started running my business. The business premise is situated at to the Oxford University, adjacent to the main students lecture halls. In my opinion, the location is strategic: it depends much on the available market drawn from the students and their lecturers around. Both the students and the lectures save on time during break hours as they wait for another lecture.

The business management has the duty to create and maintain working conditions in which people can achieve effective results. It has to set objectives, formulate strategies to achieve them, assign activities and resources in the business, guide and lead people to achieve the objectives besides coordinating and setting the standards that they need to achieve by the end of the day. This concurs with my opinion. Concerning the issue touching on the expansion of the business, the interviewee hopes to have opened up another branch of the restaurant around Harvard Business School to serve the increasing demands of students in the business school due to the increasing enrolment of students in the Business School. In my opinion, this strategy leads to increased profits ploughed back.

The process of reading and signing a lease is complicated because the interviewee wanted to obtain the finance lease for the period of five years. However, their terms of the lease only give out the operating lease for at least the period of ten years. Obtaining a lease of the choice is a difficult task because the financial leases had elapsed: they can only afford to offer the operating leases, which have a minimum period of ten years. However, financial lease is the best.

The business is a legal entity operating solely on its own name registered under the company act. It can sue and be sued for its own liabilities outstanding on its own. The business is responsible and liable for the lease. I concur since it alienates the owner from the owner from business liabilities. The interviewee cites the difficulty in hiring and keeping good employees because of high economic expectations from employees in terms of high salaries and wages above the industrial set standards with allegations of worsening economic conditions due to credit crunch that hit America. In my opinion, this issue has troubled many business owners.

The interviewee argues that the decision to operate a restaurant was a dream coming true. The interviewees dream business led to feasibility study on the viability of a restaurant business and the most viable place to set up one. The study revealed that a restaurant within the Oxford University was viable due to availability of market. The customers need high quality services to get the value for their money. Maintaining high standards of cleanliness is another tip. Maintaining the restaurant clean boosts the chances of customers flocking. There is need not to charge relatively high prices for the services offered. In my opinion, the low prices attract many customers.

The plans for the restaurant owner are opening up another branch at Harvard Business School to serve the increasing market following the increasing student enrolment. There are plans to merge the restaurant with other small upcoming restaurants around as an expansionist policy to increase market share. In my opinion, merging with others diversifies the market. The interviewee prefers to cook relatively cheap and light style of food like rice, as the initiative targets the students, majority of whom do not have enough money to spend on expensive foodstuff. Locating a restaurant within or around the Harvard Business School to serve the students and their lecturers of their needs is the best option: it offers a ready market.

To lure the customers, the business embarks on charging relatively lower amounts per plate than the normal amount charged elsewhere. This attracts more customers because most of them feel that food at the restaurant is much affordable. Some of the most successful promotions have been the consumer buying a plate of meals despite the type of food. He/she gets a glass of orange juice on every first Monday of every month. This has led to increase in volume of sales based on its capacity to attract many customers. In my opinion, promotion activities increase the sales. The influence to join entrepreneurship came due to push factors. Thus, unemployment was increasing despite the passion for becoming a businessperson. Some of the friends with whom the interviewee studied influenced him in his decision to venture into the business arena: they encouraged him and offered financial support. However, in my opinion the influence from others can mislead one: they can push one into making the wrong decision. However, this is not the case for the interviewee.

Concerning the issue of inedible food, the respondent apologises. He enquires about the problem that makes the food inedible, and asks the customer the alternative food that he/she can be served with without charging extra amount. Rectifying the situation follows immediately. Customers understanding is crucial at all times. The respondent agrees on the issue of perusing and reviewing food sites such as yelp to be updated with the customer needs, requirements, and the new ways of preparing food to increase on the quality and satisfaction on the side of the consumers. In my opinion, this allows changes to the business. The business management decided not to deal with alcohol. However, in a restaurant that purely deals with foodstuffs and the owner is interested in dealing with alcohol, there is, therefore, the need for the owner to get a licence to allow him/her sell the alcohol. However, in my opinion, selling alcohol to students attracts more sales, despite the negative impact it has to their studies.

Concerning the issue of setback, the respondent argues that, being a student entrepreneur venturing into a restaurant business, which is thriving and seeing it expand to great heights, has been one of the respondents professional successes. The biggest setback has been the high interest rates charged on the operating lease that he is using as his capital. However, in my view, the interest on lease is agreed upon before commencing the business: there should be no complaints. Concerning experience, the respondent states that the actual experience in every aspect guides one on what to do especially when planning for the next course of action and the future of the business without forgetting the accessibility of the going-concern of the business enterprise. In my opinion, the experience enables one to make bigger business decisions.

On issues of being the owner, the respondent argues that the challenges of being a restaurant owner and manager sometimes narrow down to the food that is prepared. It is not all sold. The moment food remains unsold; it culminates into the losses since it cannot be preserved for the next day. However, in my opinion, one has to establish a mechanism to enabling the selling of all the food: preparing enough based on the anticipated average number of customer. Concerning the issue of remuneration, the respondent argues that the remuneration depends on the industrial standards where the minimum and maximum salaries are set. The business establishment ensures that the company does not pay the employees below the minimum set standards. In my view, the remuneration should further depend on the prevailing economic situation and academic qualification of each individual employed by the company.

Concerning the issue of workers misconduct, the respondent states that the workers who misbehave while on duty are counselled and given a warning. If the mistake persists, the worker is transferred to a different department that is not in direct contact with the customer. However, in my opinion, if the employee does not change, the firing option sets in as a last resort although it may end up changing. The business has employed several accountants who work in shifts. The accountants work in different divisions. One of the two deals with financial accounting while the other deals with cost and management. An established division deals with internal auditing to keep checking the transactions performed by the accountants. In my opinion, it is crucial to keep financial records.

The business does not entirely give credit to the customers due to their credit unworthiness. Nevertheless, on certain occasions, it issues credits especially to its regular and loyal customers. However, in my opinion, the customer is required to leave behind something to serve as security for the debt. On the issue of competitors, the respondent argues that the business management has set high standards of the food produced at the restaurant to lure customers to come to the restaurant in preference to its competitors. The prices are also relatively affordable to the students compared to its competitors. However, in my opinion, loyal customers should be treated well to retain them.

Concerning the issue of signing another lease, the respondent argues that, at the end of the lease period, the business management would not sign for another lease. According to the accounts department, the business is able to run on its own capital generated from the accrued profits. The capital can be raised through bank loans and credits. However, in my opinion the business should continue with lease. Concerning the issue on food security the respondent argues that the restaurant managenment established its customers from whom it makes purchases. According to the respondent, the firms that supply the foodstuffs are well-established, hence offering a continuous supply of foodstuffs. In my opinion, it is very necessary to indulge firms that produce their own farm produce to counter the issue of unexpected shortages.

Concerning the issues to do with public relations, the respondent argues that the business management has established a division that deals with public relation. The division of public relation allows free interaction between the students and the workers. This includes sharing meals together and sharing ideas. In my view, the issue of good public relation is very crucial for any business venture. It assists in attracting more customers and maintaining the existing ones.

Introduction

Due to competition and changing preferences, an entrepreneur must plan any business activity and micromanage the risks involved. The main measures of entrepreneurship skills are motivation, personal attitude, and aptitude. Besides, an entrepreneur should be innovative and keen on identifying opportunities, which are turned into successful enterprises. This reflective treatise will attempt to review the character of Alan Sugar from the UK as an entrepreneur.

As a successful entrepreneur, Sir Alan Sugar has developed successful businesses from simple ideas and is currently one of the most respected business magnates across the UK and the entire globe. The paper will discuss Alan Sugars entrepreneurship characteristics, such as innovation, ability to network, and successes or failures within the lenses of entrepreneurship. In addition, the paper presents lessons learned and the most valuable concepts in entrepreneurship from theoretical and practical perspectives.

Characteristics of Sugar as an Entrepreneur

Born and raised in East London, Alan Michael Sugar is a renowned entrepreneur with interests in media, electronics, aviation, and advertisement ventures. Sugar has been able to build more than six companies from scratch into multimillion dollar investments across the UK. Currently, Sugar is a proud owner of renowned establishments such as Amstrad, Amsair, Amsprop, Viglen Ltd, Amscreen, YouView, and Tottenham Hotspurs, which is later sold in the last decade (Sugar 2011). Despite being raised in a peasant family, he was able to overcome the economic and social challenges through turning business ideas into successful ventures.

The main measures of entrepreneurship skills are attained on motivation, personal outlook and ability. Apparently, Sugar meets the average score in terms of his entrepreneurship skills. On the parameters of motivational factors towards being an entrepreneur, Sugar is certain of the scale of possible success and has a strong appeal to control the situation. Besides, as an enterpreneur, he is prepared to face challenges and transform these challenges into self efficiency responses to ensure sustainable freedom in handling business needs.

For instance, at the conception of the Amstrad computer venture, Sugars initial plan was to import household electronics into the region of East London. However, he identified the opportunity of production to satisfy the local demand as opposed to importation. Within five years, the company grew into producing local electronics, space satellites, and computers from a simply electronics importation store. Apparently, Sugar was able to scout for the opportunities and market demand for more affordable electronics that were assembled locally (Sugar 2012). As a result, he created a successful chain.

Sugars creativity and tolerance towards situations may make a business sustainable when faced circumstances demanding perseverance. On the parameters of personal attitude, his perception towards adopting strategic measures that are void of emotions is stronger than that of an average entrepreneur. Besides, the score card indicates that he is very strong in making long term choices within the shortest time possible.

For instance, in the transformation of the Amstrad into a publicly traded company, Sugar made the decision within four years of the business to raise more capital for critical expansion across the entire UK and Europe. Despite the predictions by several financial analysts that this decision would eventually collapse, it was not the case since Sugar had made an accurate prediction of the future of technology across the UK. In the end, the Amstrad Venture was voted the most promising company in the 1980s and still performs well several decades later (Murray 2010).

An excellent entrepreneur should possess transformational leadership skills that identify a range of problematic situations an individual face in his or her social environment, and generates multiple alternative solutions to those problems; he/she lays a series of procedures that are necessary to achieve desired results rather than postponing response strategies. Sugar posses that attitude of being a go-getter is critical in addressing different situations. For instance, the decision to acquire a football team at the time when it had a serious financial crisis created a fertile business environment for Sugar. At the end of the deal, Sugar sold the football club at nearly double the price he bought it just over a decade of full ownership (Sugar 2011).

The term sustainability refers to the ability to survive a risk level, while at the same time being within a profitability mode. In business environment, sustainability is affected by the forces in the market, decision science, business structure, and real financial management both in short and long term. Therefore, a business must put in place stringent measures and strategies aimed at monitoring risk modules within feasible levels in order to effectively manage its operations strategies. Basically, Sugars score on personal attitude indicates that he is above average in entrepreneurship acumen.

It is apparent that Sugar is way above average in terms of possessing the basic entrepreneurship skills such as inspiration to succeed. The eight successful ventures established by Sugar were inspired by the need to service the available opportunities. For instance, the Amsair was established to serve the growing need for business class air services. The Amsair Company promised to improve on comfort, efficiency, and reliability of air transport to business class and other VIPs. In the end, the idea was successfully transformed by Sugar into a company that currently owns a fleet of Cessna aircraft in the UK (Sugar 2012).

Reflectively, there is a need for creation of a certain level of operational risks in the business management matrix in order to track any changes and success of different business strategies. Sugar is good at tolerating operational risks which involve threats associated with people, processes, and technological elements of running the business. The essential human input requirement towards the entry planning and development phases is part of the operational risk that has a positive impact on the stability of a business. Notwithstanding, the diversification of the workforce in a business may ensure flexibility in the definition of the interdependent components that are translated into the realization of an elastic business operation.

The above risks have ensured that Sugars businesses are up-to-date in terms of policy on change strategies. It will also ensure that the content of the policy is made available to all stakeholders in the business. For instance, in the long battle for ownership of the Tottenham Hotspurs Football Club, Sugar accepted high risk when he fired the team manager and refused to extend the contract of a fine football player. Though it cost him several losses in premium league, the company managed to remain afloat over the two decades he owned it. This was due to the ability of Sugar to remain rational between the business and passion aspects of managing the football club (Murray 2010).

Sugar as a Change Maker: Major Innovations

Innovation involves doing things differently or doing different thing in order to arrive at large gains in performance at the micro and macro levels of entrepreneurship. Lack of capital and funding are the main obstacles to innovation. Therefore, an excellent entrepreneur should possess transformational leadership skills that identify a range of problematic situations that an individual faces in his or her social environment, and generates multiple alternative solutions to those problems through innovation.

In relation to Alan Michael Sugar, he was able to lay a series of procedures that were necessary to achieve desired results rather than postpone response strategies. For instance, his innovative idea of using alternatives in production to lower the overall cost of manufacturing electronics at his Amstrad business was a brilliant idea. As a result, he achieved lower production prices by using injection molding plastics for hi-fi turntable covers, severely undercutting competitors who used a vacuum-forming processes (Murray 2010, p. 41).

Action planning in entrepreneurship is of importance to create solution oriented task and strategy implementation secession for quantifying task orientation levels. Thus, a budding entrepreneur must possess task orientation leadership skills at an individual task management level in reviewing actual and expected outcomes of any business opportunity as is the belief of Sugar. Again, recognizing the opportunity of the home computer era, Amstrad launched an 8-bit machine, the Amstrad CPC 464 (Murray 2010, p. 28) to successfully get a cutting age among the major competitors such as the Commodore 64 and Sinclair ZX.

As a result of this innovation, Amstrad was able to sell at least three million units within three years, which is equivalent of what the two competitors sold within the same period. Again, at the beginning of the year 1985, Sugar had another major breakthrough with the launch of the Amstrad PCW 8256 word processor, which, although made of cheap components, retailed at over £300 (Russel & Cohn 2013, p. 19). This innovative approach to survive competition positioned the Amstrad as the market leader and it was able to acquire one of its major competitors.

Finance and Networking Strategies of Sugar

Entrepreneurship ability, as a factor of production, refers to the capacity to combine other factors of production such as capital, natural resources, labor and technology to create a sensible and sustainable process of producing goods and services. Entrepreneurship ability provides foresight which is very crucial since it gives a business rough perspective and an overview of the future concerning the expected and unexpected changes and challenges in the production of goods and services. Businesses compete with each other through the production of competitive products in terms of quality, price, quantity, and packaging. Sugar is an experienced entrepreneur who has successfully raised funds for his several businesses through savings, bank loans, and public trading.

Sugar has relied heavily on his personal savings to start the first company called the Amstrad at a young age of 28. Being a social person, it was easy for him to raise money for his first venture through series of friends and local organizations. After growing the first company for six years, Sugar managed to attract more funding through bank loans and he started to produce electronics and computers. Since the business was expanding very quickly, Sugar decided to enlist the Amstrad Company in the London Stock Market as a publicly traded entity. Through this approach, Sugar could raise enough capital to not only further expansion, but also acquire one of the Amstrads main competitors.

In the end, the success of the Amstrad enabled Sugar to raise enough funds that were used to start other ventures such as Amsair, Amsprop, Viglen Ltd, Amscreen, YouView, and Tottenham Hotspurs. Besides, Sugar depended on bank loans to further his business interests in different industries in the UK. Apart from the bank loans, Sugar was able to acquire great companies through social networking and strategic positioning of his business interests. For instance, the acquisition of the Tottenham Hotspurs was a partnership deal with one of his childhood friends. In the end, Sugar gained full control of the company. As a social entrepreneur, he is a member of several business networking groups that have honored his achievements and paved way for expansion of his customer networks (Murray 2010).

Major Causes of Business Failure Experienced by Sugar and Response Strategies

Despite having been a successful entrepreneur in the East London, West London, UK, Europe, and the entire globe, Sugars entrepreneurial journal was also marked by a series of business failures. These failures threatened to overpower Sugars entrepreneurial instincts since some of them involved very large sums of monetary and logistical resources. For instance, despite an outstanding performance for more than two decades, Sugars first venture collapsed due to its inability to integrate technological metamorphosis in the competitive electronics and computer industry. For instance, in the year 1990, Amstrad entered the gaming market with the Amstrad GX4000, but it was a commercial failure, largely because there was only a poor selection of games available on it (Murray 2010, p. 21).

The failure was a result of the inability of the company to create and consistently select the right and most competitive games in the dynamic computer gaming industry. As a result, the business was not strategically positioned to gain a considerable stake in the expansive and dynamic market. This failure cost Sugar several millions of pounds in failed investment. In addition, Sugars gaming venture was immediately superseded by the Japanese consoles: Mega Drive and Super Nintendo, which both had a much more comprehensive selection of games (Sugar 2011, p. 38). In the end, Sugar had to suspend his interests in the lucrative gaming industry due to little or no sales that could sustain the business as a response strategy to stop any further losses.

The failures suffered by Sugar did not end with the closure of the gaming venture. For instance, in the year 1993, Amstrad released the PenPad, a PDA, and bought into Betacom and Viglen, so as to focus more on telecommunications rather than computers (Russel & Cohn 2013, p. 43). The company then went ahead to release the unique e-m@iler service to offer customers the opportunity of making calls via their emails without having to worry about the cost of making the online calls. Unfortunately, the idea failed to pick up and was brought down seven years later.

The cost implications of this failed venture were so high that Sugar had to relinquish his position as the major shareholder of Amstrad by offloading some of his shares. Eventually, he also had to let go of his position as the chairman of the company. Reflectively, these failures were as a result of poor timing of business ideas and inability to proactively create a focused positing strategy to penetrate the different targeted markets. Since the failures discussed above could not be reversed, Sugar opted for offloading some of his shares to ensure that his business interests stay afloat. This alternative was achieved through proactive and complete overhaul of the failed ideas.

The last notable failure in the entrepreneurial endeavors of Sugar was the inability of his Tottenham Hotspurs business to flourish, despite maintaining ownership for about two decades. Although Sugar acquired the team when it was performing well despite the series of debts, his strategy of running the club did not work out well. The club could not rise to the occasion to reflect its big name and very supportive fan base. The club did not have enough resources to sign top players.

Besides, there was a constant change of the management and wrangles that conspired against the whole business venture. In his own words, Sugar confessed that his stint as the owner of Tottenham Hotspurs was a waste of my life (Sugar 2012, p. 31). In response to this failure, Sugar decided to offload all his shares in the year 2007 and was able to recover his investment. At the end of the deal, Sugar was able to receive a sum equivalent to double of his initial investment in the club. This was the most realistic alternative that Sugar could use to recover his investment in the club.

Reference List

Murray, E 2010, The unauthorized guide to doing business the Alan Sugar way: 10 secrets of the boardrooms toughest interviewer, John Wiley & Sons, New York.

Russel, J, & Cohn, R 2013, Alan Sugar, Book on Demand, London.

Sugar, A 2011, What you see is what you get, Pan Macmillan UK, London.

Sugar, A 2012, The way I see it: Rants, revelations and rules for life, Pan Macmillan UK, London.

International business is the highest form of entrepreneurial activity, and innovation plays a vital role in the conceptual idea of gaining a competitive advantage. The latter is conducted through elaborate modifications in the business model, knowledge connectivity, research and development, and organizational innovation. For example, in the hospitality and tourism sectors of the economy, international businesses can gain competitive advantage through innovative business models and conceptual frameworks (Souto, 2015). It is achieved by improving both internal and external processes, which results in higher level of satisfaction of customers needs.

Standard practices of modernity were innovative modifications of the past, which manifested through the knowledge connectivity of multinational enterprises. On the conceptual level, it affects value chain creation practices, which inevitably transforms the landscape of innovative business activities (Cano-Kollmann et al., 2016). Another important concept of innovations role in international business is research and development (R&D). The latter is the primary catalyzer or fuel for the emergence of innovation as a phenomenon that morphs global entrepreneurial practices. It is stated that the positive relationship between innovation performance and R&D internationalization can enhance a companys overall resilience to uncertainty and complexity (Hse et al., 2015). For example, the notion of research and development can play a central role in promoting innovation among businesses operating on the international level.

Lastly, it is important to point out that there is a number of categories that differentiate various forms of innovation. It is stated that all types of innovation, especially technological innovation, is primarily enhanced by organizational innovation (Azar & Ciabuschi, 2017). For instance, the organizational structure of a firm can be a direct predictor of the technology-based innovativeness among international businesses. Therefore, the concept of organizational management is tightly interlinked with the innovative vector of the multinational enterprise.

Theories

The theoretical framework in the field of international business can be effectively utilized in conjunction with innovation and related practices. One such theory is the grounded theory, which uses extensive analysis of large data in order to make the conclusions grounded or backed by solid evidence. It is stated that the grounded theory can be highly useful in international business despite its minor drawbacks (Gligor et al., 2016). It is common to associate innovation with the notions of creativity and chance, but the grounded theory is primarily analytical and explicitly data-driven. For instance, the innovative practices can be transformed into a precisely measurable force that can give a major competitive advantage to multinational enterprises.

In addition, the theory of internalization can be proactively used alongside innovation. The given theoretical framework focuses on the R&D aspect of the international business as well as on the flow of materials within a business. In other words, a multinational enterprise internalizes its business processes, such as innovation, in order to gain competitive advantage through secrecy or intellectual property protection (Buckley, 2016). For example, a company can internalize its innovative research operations and outcompete its rivals by preventing them from using this innovation.

Lastly, a more recent and evolved version of internalization theory, which is called a new internalization theory, can be used as a framework for innovation. It emerged as a combination of the resource-based view and classical internalization theory (Narula & Verbeke, 2015). The basic principle revolves around focusing on internal operations through research and development, but the strategic objectives are outlined by assessing the companys resources. For instance, a firm can shape its business model through internal R&D-derived innovative products, which can be set up through deliberate resource allocation.

Tools

Tools utilized by an international business can directly affect the innovativeness of the company. It is in a tight relationship with technological advancements, and the initial form is educational tools for immersive learning. In both student teaching and employee training, immersive and interactive tools can be used to expand their knowledge in international business (Aggarwal & Goodell, 2015). For example, a company can focus on its human resources as a primary source for innovation, and thus, the management can integrate immersive tools to execute the given process.

Technology management tools can become a highly useful addition to the business operations of a multinational enterprise. Such a modification can greatly boost the innovativeness of the corporation. For instance, workload and resource calculating tools can be used in innovative ways, such as an effective portfolio or project management (Cetindamar et al., 2016). This can manifest itself as an innovative feature of an organization that will strengthen its competitive advantage over other inefficient firms.

Lastly, the business process reengineering can be used as an effective tool for promoting innovation by adjusting existing business processes in alignment with the current strategic interests of a company. International business is one of the largest sets of business processes, which might not be properly coordinated in a way that would ensure efficiency and innovativeness. However, business process reengineering is an instrument that also can completely reshape all processes within an international firm (Bhaskar, 2015). For example, branches of multinational enterprises with the lowest performance can innovatively implement the given tool to remodel the structure to increase the overall performance. In addition, some specific departments can reevaluate the current procedures and identify various inefficiencies in order to resolve them in the most innovative manner.

References

Aggarwal, R., & Goodell, J. W. (2015). Immersive tools for teaching IB. Journal of Teaching in International Business, 26(3), 161-163.

Azar, G., & Ciabuschi, F. (2017). Organizational innovation, technological innovation, and export performance: The effects of innovation radicalness and extensiveness. International Business Review, 26(2), 324-336.

Bhaskar, H. L. (2015). Business process reengineering: A process based management tool. Serbian Journal of Management, 13(1), 63-87.

Buckley, P. J. (2016). The contribution of internalisation theory to international business: New realities and unanswered questions. Journal of World Business, 51(1), 74-82.

Cano-Kollmann, M., Cantwell, J., Hannigan, T. J., Mudambi, R., & Song, J. (2016). Knowledge connectivity: An agenda for innovation research in international business. Journal of International Business Studies, 47, 255-262.

Cetindamar, D., Phaal, R., & Probert, D. (2016). Technology management: Activities and tools. Palgrave Macmillan.

Gligor, D. M., Esmark, C. L., & Golgeci, I. (2016). Building international business theory: A grounded theory approach. Journal of International Business Studies, 47, 93-111.

Hse, C. W., Lien, Y. C., & Chen, H. (2015). R&D internationalization and innovation performance. International Business Review, 24(2), 187-195.

Narula, R., & Verbeke, A. (2015). Making internalization theory good for practice: The essence of Alan Rugmans contributions to international business. Journal of World Business, 50(4), 612-622.

Souto, J. E. (2015). Business model innovation and business concept innovation as the context of incremental innovation and radical innovation. Tourism Management, 51, 142-155.

Description of Ventures Services

Starting a retail and distribution consultancy business venture in the future is one of the most lucrative business ideas. A business venture is a legal, organizational, economic, and financial unit feature created by entrepreneurs to enhance their business operations (Kose, 2020). This venture will be appropriate in providing resolutions for declining entrepreneurship dynamism in business in the United States (US). Furthermore, it will try to identify the factors contributing to the decline of entrepreneurship. Some of the potential factors for reducing dynamics for an entrepreneur may include non-compliance with taxation rules and regulation, insufficient access to capital, uncertain economic times, undesirable culture, and existing mismatch between employers and employees (Tseng & Tseng, 2019). The business will provide relevant and potential permanent solutions for utilization to stimulate the USs business dynamism. The planning for the venture includes understanding the size of the market segment, business growth rate, number of available competitors, demographic location, target group, religion, race, and gender, among other aspects.

The Target Market and Customer Demography

The retail and consultancy business venture will target the retailers: both potential and already established entrepreneurs. Retailers will receive consultancy services which will help them understand the market, challenges, and potential unexplored opportunities. For instance, most US immigrants venture into entrepreneurship with the main aim being to secure self-employment because of a disadvantaged employment environment and a times face discrimination in workplaces (Suarez, 2016). Furthermore, immigrants in the US engage in entrepreneurship to overcome being marginalized (Suarez, 2016). Entrepreneurship practices by the immigrants facilitate the creation of self-employment, which will help to sustain their needs.

How the Company Will Gain a Competitive Advantage in the Industry

The business venture will seek to identify, outline, and provide consultancy to potential entrepreneurs regarding the challenges that they face in the United States. It will address factors to be considered for entrepreneurial activities. Some of these factors include demographic business location, environment, human relations, behavior, and strategic market. The business will also focus on giving guidelines on the requirements to be met before starting a venture, as well as the challenges faced during entrepreneurial activities (Tseng & Tseng, 2019). Therefore, it will be highly instrumental in providing insight to potential future entrepreneurs in the US. Since sustainability is vital for creating entrepreneurial business ventures within a particular demographical area, this consultancy business is necessary and appropriate (Tur-Porcar et al., 2018). Addressing the factors considered for entrepreneurial activities and sustainability gives the consultancy business venture a competitive advantage. Furthermore, targeting the minority groups such as the immigrants provide an advantage because the business will be focusing on a particular niche in the market.

Future Symbiotic Relationship between the business and the Entrepreneurs

The consultancy ventures success or failure depends on the faith potential future retailers have for the business. It will be vital to possess innovative skills to provide complete quality managerial services (Jung & Lee, 2016). Creative gifts will try to harness various entrepreneurial partners capabilities and resources to form a hub or network or support by pursuing and searching for new business gaps for the independent and dispersed potential future entrepreneurs in the US (Giudici et al., 2018). Furthermore, business process reengineering skills are helpful for proper decision-making (Jung & Lee, 2016). Since managerial practices coupled with their associated ideas gain rapid popularity, innovation and successful means of achieving the ventures outcomes are expected.

For effective identification and recognition of new business opportunities for potential future entrepreneurs in the US, problem-solving skills will be essential for the venture. The possession of problem-solving skills which will increase the creation of social value in the business ventures operation is vital (Kim et al., 2018). Entrepreneurs are bend towards establishing new economic value. Identification of new opportunities reflects improved market gaps and competitive advantages, which leads to innovation and increase sales yielding high profits.

Benefits of the Venture to Potential Customers

The venture application of the problem-solving skills will positively impact the innovation behavior and how opportunities are perceived by both the existing and the potential future entrepreneurs. Innovative action is a vital measure which partially mediates the association between creative behavior and the ability to offer solutions for various challenges (Kim et al., 2018). The venture will provide alternative solutions for elaboration and substantiating ideologies in the business environment (Giudici et al., 2018, p. 1400). Furthermore, entrepreneurs will have the opportunity to explore decision making options which are bend towards total quality managerial services.

Proposal on How to Get Services for Marketing

The model of the venture will define value tapping, delivery, and creation for the customer segment. Effectuation is a developed decision-making process for situations under certainty and involves both learning and experimentation. The venture will apply the effectuation strategy, which depends on the customers interaction (Reymen et al., 2016). Furthermore, the causation model would be suitable since it pursues entrepreneurs opportunities and is considered rational in use, and its behavior is goal-driven (Reymen et al., 2016). Both causation and effectuation models are useful for getting the services to the market.

Risks to Be Considered

The business venture is vulnerable to the exposure of risks which may impede its operations and functionality. Business start-ups and their long-term viability are influenced by family, education, religion, culture, government policies, and economic conditions (Kose, 2020). The risks arising from culture include individualism; the behavior of not caring about others, and uncertainty avoidance; feeling of unease when possessing unclear and inadequate information relating to a customers query, Femininity and masculinity; bestowed roles to societal gender, and power distance; occupying different positions with other individuals having more power than others, are also cultural potential risk factors (Kose, 2020). Furthermore, the risks of failure to comply with taxation rules and regulations, uncertain economic times, culture, and existing mismatch between employers and employees will interfere with the ventures operations (Kose, 2020). For smooth operation, the business venture should ensure it has enough capital, be sure about the economic times, comply with US trade rules, understand the culture. Both employees and managers will have to exhibit moral behavior and uphold proper working standards.

Trends in growth and Franchise Opportunities

Entrepreneurship is a concept which is becoming more popular as employment opportunities diminish in various regions. Many youths are embracing the concept and starting their own businesses as a way of ensuring their financial sustainability. This trend offers an opportunity to the consultancy business since the number of people who will be in need of the services continue to elevate. The United States of America has many states with youths who implies negative attitude towards starting their own businesses. Therefore, there is need for entrepreneurship consultation services to be rendered in all the states. There are a number of companies such as Boston Consulting Group, Deloitte Consulting LLP and McKinsey & Company among others which are already offering various consultancy services. However, having an organization which will solely focus on entrepreneurship will still be necessary. This will give the business an opportunity to offer franchise to other small experts who wish to offer the same services in their respective regions. Thus, it will be vital for the business to make a proper name and reputation upon starting its operations.

Formulating the Business Plan

Before setting up the business it will be critical to have a proper business plan. Some of the critical information that will be needed for the plan include: marketing and sales strategies, service line, sources of funding, financial projections, rate of growth, market size and the number of competitors. This information can be obtained in journals and government websites for particular industries. Others such as the rate of industry growth and size of the market can be obtained from annual reports of the competitor organizations.

Annotated Bibliography

Giudici, A., Reinmoeller, P., & Ravasi, D. (2018). Open-system orchestration as a relational source of sensing capabilities: Evidence from a venture association. Academy of Management Journal, 61(4), 13691402. Web.

The authors, Professors in various areas within the field of business, undertake a study to examine open-system orchestrations which they believe are under-theorized and yet important. They research also focus on enhancing dynamic capabilities by taking into consideration the emotional and cognitive micro-foundation which aid in enhancing a vision towards opportunities by using open-systems orchestrations. They provide insight which is critical to various people interested in having a better understanding of entrepreneurship as they aim at enabling the audience to improve their capacity to sense capability in the business field. The study reveals how opportunities can be identified and exploited to enhance optimum performance and sustainability in a competitive industry. Therefore, the source is relevant in this study because it enhances the idea on some of the possible areas of opportunities which can be identified in various markets.

Jung, D., & Lee, W. H. (2016). Crossing the management fashion border: The adoption of business process reengineering services by management consultants offering total quality management services in the United States, 19922004. Journal of Management & Organization, 22(5), 702719. Web.

The authors who are both scholar with an expertise in management consultancy, undertakes the study to build upon prior research on management fashion. The authors focus on consultant managers and consulting firms illuminating how the management consulting firms in the United States respond to different situations with a focus on the fashion industry. Explaining how the results and activities of the consultant managers change over time and circumstance, the article givens insight on some of the possible trends and decisions that may be made in the future business. As opposed to the other sources which are cited, the article mainly accesses the dynamics of consultancy management which is in line with the business idea in consideration. Although the authors have their focus in the fashion industry, the results and insight gained is applicable to the business idea which is captured in this paper.

Kim, J. Y., Choi, D. S., Sung, C.-S., & Park, J. Y. (2018). The role of problem-solving ability on innovative behavior and opportunity recognition in university students. Journal of Open Innovation: Technology, Market, and Complexity, 4(1), 113. Web.

The authors, lectures at the Dongguk University and Yonsei University, give an elaborate explanation on how universities engage in entrepreneurship to enable students to recognize opportunities in the outside world. Being in the departments of technology entrepreneurship, the authors conduct a research on 203 students to study the impact of entrepreneurship education on social value creation. The research shows a positive influence on opportunity perception and innovation behavior influenced by gaining problem-solving abilities. The authors in this article exploit the importance of entrepreneurial skills in addressing the challenge of unemployment and offering solutions to young people. The article helps in justifying the relevance of entrepreneurship which is the core area which the paper explores. Showing how rapid the youth are starting or purposing to establish their own businesses reveals the importance of the consultancy business.

Köse, E. (2020). Chapter 2 comparison of Turkish and American entrepreneurship cultures in the cultural axis of entrepreneurship. In E. Köse (1st ed.), Management Studies (pp. 11-26). Akademisyen Publishing House Inc.

Köse, a Doctor of Philosophy in Business Administration, examines the culture and concept of entrepreneurship. He explores various factors that are responsible for shaping the culture of entrepreneurship while taking some case studies into consideration. Focusing on various groups of people interested in starting and operating their businesses, he gives a deeper understanding of the importance of the concept and elaborates on strategies of embracing it. The author strives to enhance the understanding of the people on the importance of entrepreneurship hence showing why it is greatly gaining popularity in contemporary times. Addressing some of the pertinent issues which makes the area of focus lucrative, the article helps in identifying some gaps and opportunities which makes the consultancy business idea relevant.

Reymen, I., Berends, H., Oudehand, R., & Stultiëns, R. (2016). Decision making for business model development: A process study of effectuation and causation in new technology-based ventures. R&D Management, 47(4), 595606. Web.

The authors, academic scholars in Netherlands, explores decision making logics which are utilized by startups to enhance their business models. The authors focus on business people aiming at establishing businesses of their own and those aiming at venturing in new fields. Exploiting the logics of making proper decisions, they concentrate their efforts on the logics of causation and effectuation. The article helps to develop insight on how the dynamics of the logics are critical in developing the business models from time to time. The article is key in addressing the strategies which the future organization will use to get its services to clients within the population of interest. Therefore, it is a critical source which helps to answer one of the most important aspect of any person making preparations to establish a new venture. It adds significant value to the solution and helps in the justification of the business idea.

Suarez, M. D. (2016). An assessment of Hispanic entrepreneurship in the United States. Journal of Multidisciplinary Research, 8(3), 6776.

Suarez, a scholar from the University of the District of Columbia, focuses on the concept of entrepreneurship giving more a tension on a particular ethnic group; the Hispanics. She attributes the ethnic group to high business growth; the Hispanic business are the second fastest growing businesses after the African-American businesses in the United States. The paper targets business people trying to identify gaps in the market with interest on ethnicity. The article is relevant to the study because it helps to predicts the trends of prediction and also helps in identifying the best market for the future business. Suarezs study helps to justify the business idea of entrepreneurship consultancy since it gives a clear description of the trends towards the concept of starting peoples own businesses.

Tseng, C., & Tseng, C. (2019). Entrepreneurship as a key resolution for declining business dynamism. Journal of Applied Business and Economics, 21(3), 114. Web.

The authors, Cheng Tseng and Chien-Chi Tseng from University of Chicago and Morgan State University respectively, investigate some of the aspects contributing to decline in business dynamism. The authors address a number of entrepreneurial challenges which are experienced by various stakeholders in several markets. The research targets both potential and existing entrepreneurs as well as those willing to identify and offer solutions to these problems such as the consultants. The study explores six critical factors which have significant influence on the activities of the entrepreneurs. Identification and analysis of the factors is relevant to the business idea because it identifies some of the issues which the consultancy business will be addressing. The article is important because it offers some of the strategies which can be used to address the problem to avoid similar challenges. The information proves the need for the existence of the business in the future.

Tur-Porcar, A., Roig-Tierno, N., & Llorca Mestre, A. (2018). Factors affecting entrepreneurship and business sustainability. Sustainability, 10(2), 452. Web.

The authors, all from the University of Valencia, address an important aspect relating to sustainability in the business field. The authors target young people and all the people aiming at starting their own businesses and sustaining their lives in various settings. They focus on the factors which are established to ensure the sustainability of businesses. They conduct a research and collects information from experts to better understand the factors affecting efforts made in various businesses. The result from their study revealed business and behavioral factors to be the most critical drivers of sustainable entrepreneurship. The article is important in showing the gaps and the opportunities which makes the consultancy business lucrative in the future. Thus, the article is relevant similar to the other ones which have been utilized.

Executive Summary

This report presents an opportunity analysis for an entrepreneurial concept of an amusement theme park based on the historical, mythical city of Cibola. The park would use unorthodox methods of design and offer an authentic historical and cultural experience. It is a bold and innovative idea, meant to disrupt the highly commercialized and unauthentic amusement park industry. However, it is also a calculated opportunity to fill a potential gap in the market for such an entertainment experience. As a result, according to the entrepreneurial theory developed by Schumpeter and expanded upon by Kirzner, this makes it a worthwhile concept with the potential to create a new industry equilibrium.

The report will conduct an environmental scan by entrepreneurial frameworks which suggest that cognitive adaptability should be practiced by investigating and analyzing the market. A futures thinking analysis is presented to explore potential opportunities for the implementation of the concept. Furthermore, a PESTEL and Porters Five Forces analyses are conducted to present various influences and realities of the amusement park industry along with potential customer segmentation. Furthermore, the report presents a feasibility analysis that seeks to address practical issues of implementing the idea. It is noted that the original design concept may be impractical both in cost and environmental factors. However, with modifications, the idea presents itself as financially feasible. Funding can be achieved progressively as more concrete planning is done for the project which would allow for equity financing to achieve the substantial starting capital needed for implementation.

Concept Description

The business concept envisioned for this project is to create a recreational theme park that would be a representation of the mythical Seven Cities of Gold otherwise known as Cibola. Using historical manuscripts for accuracy, the city will be constructed as described by popular legends of the 16^th-century Spanish conquistadors. There would be exquisite attention to detail and authenticity of the project, including using gold as an actual construction material. It would be built inside a mountain for the location to have a unique and mystic atmosphere. This concept is most applicable to the amusement park and entertainment industry.

Vision

One of the earliest theories on entrepreneurship was proposed by Schumpeter, who suggested that its essence lies in the ability to depart from existing routines, disrupt the status quo with all systems and structures in place (Kirzner 1999). Entrepreneurship is the idea that causes disequilibrium and is the driving force behind capitalism. Kirzner later elaborated on the theory by explaining that an entrepreneur is not only driven by bold creativity but calculated identification of opportunities. Through the careful coordination of resources, an entrepreneur acts upon disequilibrium in the industry and creates the new equilibrium while tremendously profiting from the endeavor (Kirzner 1999). The vision for this project strongly adheres to these entrepreneurial theories as it seeks to revolutionize the industry. Amusement parks have become primarily commercialized on brand and recreation without offering visitors an authentic experience. The mystical concept of Cibola combined with the aesthetic and cultural value offered by the concept should serve as a unique outlier in a time when the industry is seemingly stagnating on ideas.

Core Competencies

Core competency in strategic management theory is a distinctive feature of a business which distinguishes it from competitors in the industry. It may consist of technology, process, expertise, or strategy. However, core competency is the ability to combine and balance its key distinctive characteristics to create an area of specialization (Schilling 2012). A core competency that is exemplified by the entrepreneurial concept is its unique and non-substitutable approach. It takes a rare idea and attempts to create an audacious innovation in the theme park industry and opening entry to a variety of markets such as entertainment. The planned use of location and construction materials is difficult to imitate as well.

When conducting opportunity analysis for this concept, the traditional causation perspective of entrepreneurship is followed. A predetermined outcome is set in the form of a concept created to create value and a unique amusement park experience in the industry. At this point, the opportunity is examined to select the most efficient methods of achieving this goal. It is a linear process that seeks to use the process of discovery, evaluation, and exploitation of opportunities to create a viable plan of action (Fisher 2012, p. 1022). This idea represents start-up entrepreneurship since it is a newly established business that is high risk. It is innovative in concept and can be flexible in its implementation since the theme is based on a mythical legend that leaves room for significant creativity during project development.

Environmental Scan

The framework for the entrepreneurial mindset suggests the presence of cognitive adaptability which allows being dynamic and flexible in the process of decision-making and uncertain environmental conditions (Kuratko 2016). Cognitive adaptability suggests asking questions that attempt to comprehensively investigate and understand the environment in the industry of an entrepreneurial concept. An opportunity analysis consists of conducting an environmental scan that presents essential information about entry into the industry and the potential for developing the concept in the said business environment.

Futures Thinking

In the development of an entrepreneurial concept, there are three aspects to innovation that should be considered: value generation from idea implementation, creativity and invention, and macro-level social change. Futures thinking in entrepreneurship consists of identifying a goal and then a method to achieve it. An entrepreneur seeks out the missing gap in industry or technology which may not even exist and seek to fill it through disruptive innovation and creativity (Yapp 2010). All of these aspects of futures thinking require leadership and critical analysis of a concept that can consider the current realities but be able to recognize any upcoming shifts that may occur in the industry.

The proposed city concept seeks to visualize a future for the amusement park and entertainment industry. It drives innovation by introducing an unorthodox design and location that are based on aesthetic creativity. The value would be generated by profit gains as well as providing infrastructure for public entertainment which contributes to social cohesion. In an industry driven by corporate and commercialized theme park concepts around a single brand, a trend may be set for more authentic and unique entertainment experiences from particular segments of the market.

PESTEL Analysis

Porters Five Forces Analysis

Industry rivalry is extremely competitive in the entertainment and theme park industry. Several large companies such as Walt Disney maintain a firm hold on consumer segments and continuously attempt to bring in new visitors by offering more content. Theme parks are dependent on visitors; therefore, buyer power holds considerable influence over the industry and makes customer attainment a key priority. Since theme parks provide an experience rather than a product, supplier power is not critical. However, parks are dependent on a variety of products and materials to support their function. Threats of new entrants to the market are relatively low due to high risks and a substantial starting capital necessary for construction. Threats of substitutes are high since theme parks follow similar patterns of producing entertainment based on similar content or ideas. Therefore, another park might recreate their version of Cibola since the intellectual property does not protect the idea.

Customer Segmentation and Needs Analysis

Marketing takes a significantly different approach in entrepreneurial contexts than traditional practices. Driven by innovation, entrepreneurs take a bottom-up approach to customer acquisition by using interactive marketing methods and informal networking to establish products. Instead of using the comprehensive and costly market analysis to target specific audiences, entrepreneurs choose to identify a market opportunity that attracts an initial customer base that gradually expands through word of mouth (Stokes 2000). This theme park concept would be appealing to many enthusiasts of history, mythical legends, and cultural exploration. That would continue to remain a primary customer segment for this concept. It would be critical to creating a high-quality family experience as well since that is a central concept to many major locations in the entertainment industry. The Cibola park would address the customer need for a unique cultural and aesthetic experience which is not based on the commercialization of its brand but rather a rustic authenticity for its atmosphere.

Feasibility Analysis

There is a common association between entrepreneurial activity and the concept of risk. These enterprises statistically face significantly high rates of failure and encounter various obstacles. Individual entrepreneurial decision-making significantly differs from that of managers or even corporate entrepreneurs who have the responsibility to protect a companys interests. Therefore, entrepreneurs became the focus on opportunity and desensitized to risk through psychological motivation that prioritizes value creation and rapid growth (Busenitz 1999). However, every entrepreneurial should be evaluated for its feasibility as part of the opportunity analysis. It presents an outline of the practicality of materializing an idea into reality based on real-world parameters.

Design and Environmental Feasibility

The theme park design is based on a mythical legend and encompasses the construction of a model city using gold. From a design perspective, using gold bricks for construction is unfeasible due to practical concerns involving modern regulations and building codes. Buildings can simulate being of a particular material using external design but must have modern and sound structural integrity. Furthermore, the environmental aspect of choosing the location to be inside a mountain is impractical. Development in such areas is usually prohibited and strictly regulated since construction would cause significant environmental damage.

Financial Feasibility

The projects initial investment cost is estimated at $90-110 million. Operating costs will range around $400,000 per year. The primary revenue stream will come from park visitors who would include ticket sales and additional purchases made inside. At an estimated $300 spent per visitor, the park would have to bring in close to 350,000 visitors to recoup initial investments. That is a realistic figure if the location is made easily accessible and near the major urban center or tourist destination. However, the gross revenue margins will remain low in the first years of operation. The cost-efficiency of using gold as a construction material is questionable. Technology allows us to use gold plating or chemical substitutes which are visually indistinguishable from the valuable material. Long-term financial feasibility should be investigated since the park does not currently offer an entertainment factor beyond a cultural or aesthetic experience that does not usually result in returning customers.

Funding

Entrepreneurial planning consists of a critical step in finding start-up capital. Financing can become more accessible once the economic feasibility of a project is determined and there is evidence of potential profit. An entrepreneur can achieve funding either through debt which places a burden on the individual or through attempting to find investors for equity financing that forces them to relinquish various degrees of control for the business (Kuratko 2016). Alternative methods of financing have become more popularised with the extensive outreach of social media. Crowdfunding offers an opportunity for people to support a business idea or project through numerous minor donations in exchange for potential rewards or products if the enterprise succeeds (OECD 2015).

An amusement park concept is a significant enterprise that will require a substantial start-up capital to create the necessary infrastructure. An individual entrepreneur would have to rely on a variety of funding practices. Crowdfunding may be a primary step to determine public perception as well as receive finances for the planning stages of the project. Furthermore, the project should be pitched to a large variety of venture capitalists that have expertise or interest in the industry. Due to the complexity and sheer size of a theme park concept, it would have to be financed by large-scale investors who would require surrendering considerable amounts of equity. Rule 506 of private placement regulation D can be applied here to achieve capital investment. Since the project would most likely cost over $100 million to construct, a corporate entity with legal distributions of equity and responsibility would be created that would take on debt to finance construction and implementation.

Reference List

Busenitz, L 1999, Entrepreneurial risk and strategic decision making, The Journal of Applied Behavioral Science, vol. 35, no. 1, pp. 325-340.

Fisher, G 2012, Effectuation, causation, and bricolage: a behavioral comparison of emerging theories in entrepreneurship research, Entrepreneurship Theory and Practice, vol. 36, no. 5, pp. 1019-1051, Web.

Kirzner, I 1999, Creativity and/or alertness: a reconsideration of the Schumpeterian entrepreneur, The Review of Austrian Economics, vol. 1, no. 1-2, pp. 5-17.

Kuratko, D 2016, Entrepreneurship: theory, process, and practice, Cengage Learning, Boston, MA.

OECD 2015, New approaches to SME and entrepreneurship financing: Broadening the range of instruments.

Schilling, M 2012, Strategic management of technologic innovation, 4th edn, McGraw-Hill Education, New York, NY.

Stokes, D 2000, Putting entrepreneurship into marketing: the processes of entrepreneurial marketing, Journal of Research in Marketing and Entrepreneurship, vol. 2, no. 1, pp. 1-16.

Yapp, C 2010, Innovation, futures thinking and leadership, Public Money and Management, vol. 25, no. 1, pp. 57-60, Web.

The catering business is a good way to make money for those who love to cook since catering is not always about making lunch for hundreds of guests. However, the sphere is quite competitive today because more and more people consider it profitable and reliable and are trying to create their businesses in the area of catering. Hence, in order not to work at a loss and lose time and money, it is necessary to develop a solid business strategy (Hill, 2019). It will enable the entrepreneur to reach success and not only recoup costs but also gain profits.

The first component of a business strategy concerns establishing a niche in the catering field. When doing that, the caterer should pay attention o those that are less competitive since, in that case, he will have more chances of reaching success. In order to find out what marketing niche not only suits a particular entrepreneur but also involves less competition, it is necessary to check what services local caterers and restaurants suggest (Hill, 2019). Then one needs to calculate an average price for the catering services in the local community as well as to analyze what dishes are the most popular among the customers. It should be done to see whether further business is cost-effective. For instance, when starting a lunchtime delivery business, it is necessary to take into account the location, the salary levels of the citizens, and their needs (Meyers, 2019). To make this business profitable, the businessman should analyze the market in order to see if there are other companies that offer better services than he is going to provide.

After finding a profitable niche that is not quite competitive, the caterer should pay attention to the legal aspect of the matter and get the business officially registered. To do that, the entrepreneur usually needs to get several licenses and permits that may vary from state to state. However, there exist several that are required in all states of the USA to open a restaurant or do other business related to the catering field. The compulsory documents for opening a catering business in the United States are an officially registered unique business name, business license, food service permit, food handlers permit, building health permit, sales tax license, and sellers permit. Apart from that, the businessman should have a resale permit and employee identification number. (Navarra, 2021). The licenses and permits may vary depending on the state and the type of business, but those mentioned above are the most universal and may be required in all states.

When speaking specifically about the area of lunchtime delivery that was used as an example before, caterers involved in this business should have all the mentioned above documents. Apart from that, the businessmen have to contact the local healthcare department that should give them the permits to handle and sell fruit as well as other details about the licenses needed (Meyers, 2019). Documents guarantee the entrepreneurs that they will get compensation in case of emergency and will not be sued for illegal actions.

After the niche is established and the licenses and permits are obtained, it is necessary for the caterer to think about the menu he is ready to offer to his clients. When planning the menu, one needs to consider several important aspects that will ensure the businesss profitability. First, the businessman should analyze the menus of the existing catering services and establish what dishes are the most popular among the customers. It will help organize the menu of his own restaurant and enable the caterer to base it on the needs of the customers, which will gain more profits and approval of the clients (Hill, 2019). In addition, it is necessary to take into account the cost of packaging since it is a compulsory part of the menu costs that are often forgotten by many caterers, especially inexperienced ones (Brady, 2018). Menu prices are also important for the business, but businessmen should establish reasonable prices to let the business stay profitable and competitive at the same time.

The next step in creating a catering business concerns one more important aspect: location. People who live in different places have different food needs and preferences, which is why the caterer should take this aspect seriously. When speaking about the lunchtime delivery business that is used as an example throughout the paper, it is necessary to pay attention to the location because different places have different juridical norms concerning this business (Meyers, 2019). In addition, food prices in different locations may vary depending on transportation time and price and on the preferences of the customers.

One of the final aspects that the caterer should consider concerns buying the equipment and supplies that will ensure the successful start of the business. In the initial stages, a businessman needs cooking equipment and utensils that are necessary for cooking the dishes mentioned on the menu. Apart from that, he will need the food supplies in sufficient quantities in order to provide the clients with freshly made food every day. In addition, if the business is concerned with delivering products, the caterer will need a vehicle for carrying the meals as well s containers for keeping food safe and hot during the delivery process (Meyers, 2019). The businessman should also take into account the costs of such supplies as packaging materials, napkins, disposable eating utensils, and sanitation supplies.

One more aspect some caterers do not pay attention to concerns the marketing and advertising of the business. The profits will grow if more people know about the catering services one provides. Hence, caterers should put advertisements about their businesses in the local newspapers or TV channels (Meyers, 2019). They may also choose other types of ads, such as distributing flyers on the streets or making colorful and memorable posters and slogans about their services. In addition, the Internet is a good instrument for promoting a business because almost everyone uses it today for searching and buying goods. Hence, a website or blog may serve a better promotion than ads in newspapers or on TV.

Considering all mentioned above, it is necessary to state that opening a catering business may be difficult for those with no experience in the field or who know nothing about marketing and management. However, the task is not impossible because one just needs to pay attention to several aspects that ensure the successful development of the business. They include the analysis of the competitors, providing all the necessary licenses and permits, and the development of the business strategy with clear consideration of all possible costs.

References

Brady, V. (2018). 4 ways to build healthy profit margins through catering. QSR. Web.

Hill, B. (2019). How to start a small catering business. CHRON. Web.

Meyers,J. (2019). What do I need to start a lunchtime delivery food service? CHRON. Web.

Navarra, T. (2021). Restaurant licensing: The 16 licenses and permits you need to open a restaurant. Lightspeed. Web.