Deepika Agarwal

Why does it matter? What is it? Some examples . . .

McDonalds (New Venture / Franchising) Polaroid (Technology) FedEx (Business model)

Entrepreneurship as a means of hope for prosperity and an increase in living standard

The last great period when entrepreneurs transformed the American economy was in the late 1800s In fact, most of the 1997 Fortune 200 were already
among the largest corporations in 1917 197 of the 200 largest companies in America were started by entrepreneurs Many of these entrepreneurs were first generation Americans

Opportunity
Where knowledge, skills, abilities and motivations meet favorable market characteristics

Risk
Absolute . . . sinking the boat Relative . . . missing the boat

Resources & Capability Process, not person: Balance is key . . .

Communication Opportunity Business Plan Fits and Gaps Resources

Ambiguity
Creativity

Exogenous Forces
Team Leadership Capital Market Forces

Uncertainty

Founder

OPPORTUNITY

Entrepreneurship begins with an opportunity Money, contacts, networking, Lots of ideas, few opportunities that fit your needs! Opportunity first, Cash last

A person with both business skills and technical knowledge.

Scientific approach to problems Willing to delegate Broad view of strategy Diversified marketing approach Longer planning horizon Sophisticated accounting and financial control

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Having intimate knowledge of customers needs Market driven Obsessed with value creation and enhancement

Calculated risk taker Risk minimiser Risk sharer- e.g. partners, creditors, suppliers and customers. Tolerance of uncertainties and lack of structure Tolerance of stress and a conflict Ability to resolve problems and integrate solutions

Introduction Opportunity in professional life Domestic detergent market Innovative formulation Attained market share in the premium detergent segment Risk - Cheapest brand in the market

Achievements

Udyog Ratna award Outstanding Industrialist of the Eighties Chairman of the Development Council for Oils, Soaps & Detergents

Opportunities Growth Grabbed the internet market Understanding users needs Risk Microsoft Internet explorer Google Chrome

Harvey Firestone founded Firestone Tire & Rubber company (1950-60s) Monument success for 7 decades Its culture and operations reflected the vision of its founder, Harvey Firestone, who insisted on treating customers and employees as part of the Firestone family. The Firestone country club was open to all employees, regardless of rank, and Harvey himself maintained close friendships with the top executives

They saw the Big Three Detroit automakers as their key customers Goodyear and the other leading U.S. tire makers as their competitors, and they saw their challenge as simply keeping up with the steadily increasing demand for tires

A French company, Michelin, introduced the radial tire to the U.S. market. Based on a breakthrough in design, radials were safer, longer-lasting, and more economical than traditional bias tires.

Ford declared in 1972 that all its new cars would have radials, it was clear that they would dominate the U.S. market Firestone swiftly took action: it invested nearly $400 millionmore than $1 billion in todays dollars in radial production, building a new plant dedicated to radial tires and converting several existing factories. It clung to its old ways of working rather than redesign its production processes, it just tinkered with them even though the manufacture of radial tires required much higher quality

By 1979, Firestone was in deep trouble. Its plants were running at an anemic 59% of capacity The company surrendered much of its share of the U.S. market to foreign corporations, and it suffered through two hostile takeover bids Bridgestone, a Japanese company, in 1988.

Know your customers better Keep updating Once a success does not mean always a success Active Inertia-???

There is no return without a risk. Good projected risks often go unnoticed. Well run projects appear to be almost effortless, but a lot of work goes into running a project well. If decision makers would have cared about risk then they wouldnt have had reached the heights.

It thus shows that opportunity obsession is a very important characteristic of an entrepreneur. Entrepreneurship is a way of thinking, reasoning and acting that is opportunity obsessed.

Strong High Desirable Protect position: - Invest to grow - Concentrate on maintaining strength

Medium Desirable Invest to build: - Challenge for leadership - Build on strengths - Reinforce vulnerable areas

Weak Build selectively: - Specialize around limited strengths - Overcome weaknesses - Withdraw if sustainable growth is not possible Limited expansion or harvest: - Look for ways to expand without high risk - Minimize investment and focus operations Divest: - Sell when possible to maximize cash value

Medium

Low

Desirable Build selectively: - Emphasize profitability by increasing productivity - Build up ability to counter competition Protect & refocus: -Defend strengths -Seek ways to increase earnings without speeding markets decline

Manage for earnings: - Protect existing strengths - Invest to improve position only in areas where risk is low Manage for earnings: - Protect position - Minimize investment