Entrepreneurial Management

Closing the window: sustaining competitiveness

Manu N Widge

Entrepreneurial Management
Where

to look for Growth Opportunities:

Penetration Strategy

Strategy to grow by encouraging existing customers to buy more of the firms current products
Strategy to grow by selling the firms existing products to new group of customers
New Geographical Market New Demographic Market New Product Use

Market Development Strategy

Product Development Strategies

Strategy to grow by developing and selling new products to people who are already purchasing the firms existing products

Entrepreneurial Management
Where

to look for Growth Opportunities:

Diversification Strategy

Strategy to grow by selling a new product to a new market Backward Integration - A step back (up) in the value-added chain toward the raw materials Forward Integration - A step forward (down) on the value-added chain toward the customers Horizontal Integration - Occurs at the same level of the value-added chain but simply involves a different, but complementary, value added chain

Entrepreneurial Management
Implications of Growth for the Firm:
Pressure on existing Financial Resources Pressure on Human

Resources

Pressure on the Management of Employees Pressure on the Entrepreneurs Time

Entrepreneurial Management
Overcoming pressures
Managing Cash Flow

on Existing Financial Resources:

Managing Inventory

LIFO Inventory costing method whereby last items into Inventory are first items out FIFO Inventory costing method whereby first items into Inventory are first items out Managing Fixed Assets Managing Costs & Profits Taxes Record Keeping

Entrepreneurial Management
Overcoming

pressures on the Management of

Involves others in

Employees:
Participative style of Management

the decision-making process Establish Team Spirit Communicate with Employees Provide Feedback Delegate some Responsibilities to others Provide Continuous Training for Employees

Entrepreneurial Management
Basic Principles of Time

Management:

Principle of Desire Recognition of the need to change personal attitudes and habits regarding the allocation of time Principle of Effectiveness Focus on the most important issues Principle of Analysis Understanding how time is being currently allocated, and where it is being inefficiently invested Principle of Teamwork Acknowledgement that only a small amount of time is actually under ones control and is taken up by others Principle of reanalysis Periodic review of ones time management process Principle of prioritized planning division of tasks by the degree of their importance & then allocation of time to each tasks
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Entrepreneurial Management
How can External Parties help grow business
Franchising - It is a arrangement where by the manufacturer or

sole distributor of a trade mark product or service give exclusive rights of local distribution to independent retailers in return for their payment of royalties and conformance to standardized operating procedures.
Joint Ventures- It is a separate entity involves a partnership

between two or more active participations, sometime also called strategic alliances.
Acquisitions -

It is the purchase of the entire company or part of a company, by definition, the company is completely absorbed and no longer exists independently .

Entrepreneurial Management
How can External Parties help grow business
Mergers- A merger or a transaction involving two, or possibly

more, companies in which only one company survives is another method of expanding a venture. A key concern in any merger is the legality of the purchase.
Leveraged

Buyouts- A leveraged buyout (LBO) occurs when an entrepreneur (or any employee group) uses borrowed funds to purchase an existing venture for cash. Most LBOs occur because the entrepreneur purchasing the venture believes that he or she could run the company more efficiently than the current owners.

Entrepreneurial Management

Thank You & All the best to you

for your life ahead, Thanks for being a lovely bunch of students
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