.

..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

CEDR342:BUSI
NESSDEVELOPMENTANDMANAGEMENT

SOMEABBREVI
ATI
ONSI
NCEDR342ANDTHEI
RMEANI
NGS

APR=Annual Percent ageRat e

ICA=International Cooper at iveAl l
iance
AGM =Annual Gener alMeet ing
NBCI=Ni ger i
aBankf orcommer ceandi ndustry
SMEs=Smal landMedi um Scal eEnt erprises
NIDB=Ni ger i
aindust rial Dev elopmentBank
PUSA=Passpor tUSA
WWW =Wor ldWi deWeb
PTOs=Pr i
vateTel ecom Oper ators
EDI=ElectronicDat ainter change
SMs=Shor tMessageser v ice
VTN=Vi rtual t
ermi nal Net wor k
SE=Scr eeningExami nation
JMEs=Joi ntMat ri
cul ationExami nations
CAMA=Compani esandAl liedMat tersAct
ISA=Invest mentandSecur itiesAct
SMAAT=Speci fi
c, Measur abl e,Attainable, Act
ionabl
eTimer el
ated.
NDE=Nat i
onal Direct orateofEmpl oy ment
NPEP=Nat ional Pov ertyEr adi cati
onPr ogramme
NEEDS=Nat i
onal Economi cEmpower mentDev el
opment
NeGST=Nat i
onal e-Gov er nmentst rategies
NITDA=Nat ional i
nfor mat ionTechnol ogyDev elopmentAgency
CEO=Chi efExecut iveOf f i
cer

CHAPTERONE:BUSI
NESSGROWTH:ANOVERVI
EW

Busi
nessgrowthi
stheresul
tof“posi
ti
vel
ymotiv
atedbusi
nessi
ntent
ionsandact
ions
onthepar
toftheowner
-managerort
heentr
epr
eneur”
.

Busi
nessgrowthisnei
theraut
omat
icnort
her
esul
tofchanceorgoodl
uck(
Lambi
ng
andkuehl
,2007)

Theentrepreneur
’schar
acter
ist
ics,educat
ionallev
el,Knowl
edgeofbusi
nessandhis
cont
inuedlearni
ngall
aff
ectthegrowthpotenti
alofthebusi
ness(
All
i
sonetal
,2003)
.

A company
’s gr
owt his al
so af
fect
ed byi
nter
nalcompanyfact
ors,t
he r
esour
ces
av
ail
abl
eandexternalf
act
orssuchaspoormar
ketcondi
ti
ons.

1
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

Oft
enitisnotsmoot
h,somefirmsgrowsandt
henbacksl
i
dewhi
l
esomeski
pgr
owt
h
st
agesthatot
her
sexper
ience(
Egger
sandLeahy
,1995)

Anentrepr
eneurseeki
ngbusinessgrowthmustbeknowledgeabl
eabouttheproducthe
i
scurrentl
yproduci
ngandsel l
i
ng,andaboutthegroupofcustomerstowhichtheyare
cur
rentl
ysell
i
ngthatproduct(
theexi
stingmar
ket)
.Hisr
ich,pet
ersandshepher
d,2009.

STRATEGIESFORBUSI NESSGROWTH
Growthcomeaboutint wo(2)ways,namely;
1.Throughmanagi ngcurr
entpr oduct
sf orgr
owt handaddingnew productl
i
nes
(Anugwom,2007) .Anent r
epreneurdoest hi
sbydevelopingoracquir
ingnew
businessest
hroughint
ernalandexter
nalsources.

Str
at egi esbasedoni nternal sources
1.I nt ensi ve gr owt h st rategies:i denti
fying t
hose oppor
tuni
ti
es av
ailabl
et othe
entrepr eneuri ni tscur rentspher eofoper ati
on.
a.Mar ketpenet ration
b.Pr oductdev elopment
 Dev el
opi ngnewpr oduct s
 Dupl i
cateway sofusi ngorappl icati
on
c.Mar ketdev elopment
 NewGeogr aphi calMar ket
 Newdemogr aphicmar ket
 Newpr oductuse
2.Int egr ativ
egr owt hst r
at egies:identif
yingopport
uni
ti
esavail
abl
eforgrowththr
ough
i
ntegr ationwi thot herpar tsofmar ket i
ngsy stems
a.Backwar dint egr ati
on
b.For war dintegr ation
c.Hor i
zont alintegr ation

3.Div
ersif
icati
onSt r
at egies:sel
li
nganewpr oducttoanewmar
ket
.
a.Concentri
cdiversi
fi
cat i
on–Addi t
ionofr
elat
edproducts
b.Hori
zontaldiver
sifi
cation–Addi ngunrel
atedproduct
s
c.Congl
omer atediversifi
cation

Str
ategiesBasedonExternalSour
ces
1.Franchisi
ng:Anal
ter
nati
vemeansbywhi
chanent
repreneurmayexpandhisbusi
ness
byhav ingot her
spayf ortheuseofthename,process,pr
oduct,ser
viceandson
on(Hisr
ich,etal,
2009)

Ty
pesoff
ranchi
sing

2
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

a.Productfranchi
singordealer
shi
p
b.Manuf act
uringfr
anchisi
ng
c.Businessformatf r
anchi
sing

Advantagesoff ranchi
singt othefranchisee
a.ProductAccept ance
b.ManagementExper ti
se
c.Capit
alRequirement s
d.Knowledgeoft heMar ket
e.Operati
ngandst r
ucturalContr
ols
Advantagesoff r
anchisingtothefranchisor
a.ExpansionRisk
b.CostAdv ant
ages

Disadvantagesoff ranchisi
ng
ToFr anchisee
a.Inabil
it
yoft hefranchisortoprov
ideservi
ces,
advert
isi
ngandl
ocat
ionaspr
omi
sedi
n
thefranchiseagreement
b.Thef r
anchisor’fai
lureorbeingboughtoutbyanot
hercompany

ToFranchisor
a.Dif
ficul
tyinfindingqual
it
yfranchisees
b.Poormanagement
c.I
ncreasei nthenumberoff ranchisees
2.JointVenture:itisaseparateent i
tyt
hati
nvol
vesapar
tner
shi
pbet
weent
woormor
e
acti
vepartici
pants( Hi
sri
ch,etal,2009)

Fact
orst
hatr
esul
tinj
ointv
ent
ure

a.Thedegreeofsymmetrybetweenpartner
s
b.Theagreementofthepart
nersinter
msofobj ect
ivemat
ter
s
c.Theaccurateassessmentofthepar t
iesinv
olvedinor
dertobestmanaget
henew
enti
tyi
nli
ghtoftheensuingrel
ati
onshi
ps.

Merger
sandAcqui si
tions:Amer geroccur
swhent wocompani escombi
netof orma
si
nglecompany.I
tissi mil
artoat akeov
eroranacqui
sit
ion,exceptt
hati
nthecaseof
merger
;exi
sti
ngstockholdersofbothcompani
esinvol
vedretai
nasharedi
nter
estinthe
newcorpor
ati
on.

Reasonsformergers
a.Toincr
easeone’smarketshare
b.Questfordomi
nanceincompet i
ngmarket
c.Combiningav eryprofi
tabl
ecompanywi t
hal
osi
ngcompanyi
nor
dert
ouset
he
l
ossesasat axwri
te-of
ftooffsett
hepr
ofi
ts.

3
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

TypesofMer ger s
a.Horizontal
mer ger
b.Verti
calmer ger
c.Market–ext ensi onmer ger
d.Product–ext ensionmer ger
e.Conglomer ati
on
 Mar ketext ensioncongl omerates
 Pr oductext ensioncongl omerates
 ACombi nationofthet woabov e

Twot
ypesofmer gerdi
sti
ngui
shedbyhowt
heyar
efi
nancedi
ncl
udes;
 Purchasemerger
s
 Consoli
dat
ionmergers

Acqui
sit
ions:Usual
lyr
efert
oapur chaseofasmallerf
ir
m byalargerone;onecompany
pur
chases a bulk ofa second company’
s stock,creat
ing an uneven balance of
owner
shipinthenewcombi nedcompany.Atypeofacquisi
ti
oniscall
edreversemerger

Rev
erseMerger
:occur
swhenapriv
atecompanythathasstr
ongpr
ospect
sandiseager
torai
sefi
nanci
ngbuysapubli
clyli
stedcompany,usual
lyonewit
hnobusinessand
l
imi
tedasset
s.

DISTI
NCTI ONBETWEENACQUI SITI
ON&MERGERS
Inacquisi
ti
on,onecompanytakesoveranotherandclear
lyest
abli
shesi
tsel
fasthenew
owner.Thetargetcompanyceasest
oexist.
Inmerger,twofir
msof t
enofaboutthesamesi zeagreetogof or
wardasasinglenew
companyr at
herthanremai
nseparat
elyownedoper at
ed.

LEVERAGEDBUYOUTS:Thi
shappenswhenanentrepr
eneur(oranyempl
oyeegr
oup)
usesbor
rowedf
undst
opurchaseanexi
sti
ngv
ent
ureforcash.

Anent repr
eneurusessomecr i
teri
at odet
erminewhetherspecificcompanyisagood
candidateforleveragebuyout
a.Theent r
epreneurmustassessthef or
m’sdebtcapaci
ty.
b.The ent repreneurmustdet er
mine whetherthe presentowner ’
sasking pr
ice i
s
reasonable
c.Theent repreneurmustdeveloptheappropri
atefi
nancialpackagewhichmustmeet
theneedsandobj ect
ivesoft
heprovider
softhefund

THECHALLENGESOFBUSI
NESSGROWTH

a.Pr
essur
esonexi
sti
ngfi
nanci
alr
esour
ces
b.Pr
essur
esonhumanresour
ces

4
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

c.Pr
essur
esont
hemanagementofempl
oyees
d.Pr
essur
esont
heent
repr
eneur
’sti
me

CHAPTTERTWO:
CONCEPTOFBUSI
NESSANDNEW VENTURECREATI
ON

Fort heEconomi sts,Businessi sanyactivi

tythatseeksprofi
tbyprov i
dinggoodsand
servicest ogether( Wi l
l
iam,1996)
Forschol arsofManagement ,Businessisanyact iv
itythatseeksto( pref
erablyata
profit)satisf
yexist ingandcreatedneedsofcust omers(Drucker,
1993)
Planni ngisdecidi ngi nadvancewhatt odo,whent odoi taandwhoi st odoit,knoontz
i
nuj o( 1984)
Sopl anni ngisdef inedasdeci di
ngi nadvancewhattodo, howtodoit,whent odoi tand
whoi st odowhati nmakingav ail
ablegoodsorser vi
cesforthesati
sfacti
onofexi sti
ng
andcr eatedneedsofcust omer s.
Thebusi nesspl ani sanagreementonhowy ourmanagementt eam planstocar ryout
certainf uncti
onst oachievebusi nessresult
sandser veasameansofmeasur i
ngt he
company ’
sperformance.

Busi
nesspl anningentai
ls:
 Prepar ati
onaheadoft i
me
 Earl
ierdet er
minati
onofwhatt odo
 Determi nati
onofhow t oprofi
tabl
ymakegoodsandser vicesav
ail
abl
efort
he
sati
sf acti
onoftheexisti
ngandcreatedneedsofcust
omer
s
 Whent odowhat
 Thedet er
minati
onofwhoi stodowhat

ProcessofBusinessPlanni
ng
a.Defi
nit
ionofthescopeofbusiness:Whati
sourbusi
ness?Whatwi
l
litbe?
b.Deter
mi nat
ionofgoalsandobject
ives

Goal
sar egeneralt
arget
sthatt
heent
erpr
isei
ntendst
oachi
eveov
eral
ongper
iodof
t
ime,usual
lyfi
ve(5)year
sandabov
e.

Object
ivesarespecif
icandmeasur abl
etargetst
heent er
pri
seint
endstoachiev
eov
era
rel
ati
velyshort
erperi
odofti
me, usuall
yoneweek, onemonth,oneyearetc.
S.W.O.T(str
ength,
opport
uni
ties,Weakness,andthreat
s)isconsi
deredhere

c.For
mul at
ionofst rategies:Thefoll
owingareconsi
der
edher
e
 Resourcesav ailabl
e
 Manager ialcapacity
 Organization,cult
ureandphi l
osophy
 Inter
nalandext ernal envi
ronmentalf
actor
s
 Flexi
bil
ity
 Consistency

5
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

 Ef
fect
iveness

d.I
mpl
ement
ati
onandexecut
ionofst
rat
egi
es:Thi
spr
ocesscompr
isest
hef
oll
owi
ng;

 Assigni
ngoft askandr esponsi bi
li
ti
es
 All
ocati
onofr esources
 Motivat
ion
e.Eval
uat
ionandcont r
ol:Thisprocessent ail
sthefol
l
owing;
 Determinati
onofev aluati
oni nter
vals
 Determinati
onoft ool
sofev aluat
ion
 Consist
entandconst antmoni tor
ingofenvir
onment
 Constantrevi
ewofst rategies

CONCEPTOFBUSI
NESSSTART-
UP

Start
-upisacompanywi thal imi
tedhistor
y,i
.e.
,newl
ycreat
edandi
sinaphaseof
developmentandr esear
chf ormarket
s.“ St
art
-upCompany”i
soft
enassoci
atedwi
th
hi
ghgr owth,
technologyori
entedcompanies.

Star
t-upper
s:are peopl
einvol
ved i
nt he cult
ivat
ion ofhi gh t
echnology star
tup
companies.Theycanbeent
repr
eneur
s,hacker
s,webdesi gner
sordev el
opers,vent
ure
capi
tali
stset
c.

Conceptofopportunit
yident
ifi
cati
on
Entr
epreneuri
alopportuni
ti
esar ethosesi
tuati
onsinwhi
chnew goods,serv
ices,r
aw
materi
alsandorganizi
ngmet hodscanbeintr
oducedandsol
datgreat
erthanthei
rcost
ofproduct
ion(ShaneandVenkat ar
aman2000)

Entrepr
eneuri
aloppor
tuni
tyisf
easible,pr
ofi
t-seeki
ngpotent
ial
ventur
ethatprov
idesan
i
nnov at
ive new product or servi
ce to t he mar ket
,improves on an existing
product
/servi
ceorini
ti
ateapr ofi
tableproduct/
servi
ceinlessthansatur
atedmar ket
(Si
ngh2001)

Wet heref
oredefi
neentrepreneuri
alopport
uni
tyasaf easi
blepr
ofi
t-
seekingsit
uationto
expl
oitamar keteff
ici
encyt hatprovi
desaninnov
ativ
e,improvedproduct,ser
vice,raw
material
,oror
ganizi
ngmet hodinal esst
han–saturat
edmar ket
.

Onesour ceofentr
epreneuri
aloppor
tuni
tymaybeent
repreneur
s’soci
alnet
wor
ks(
Hil
ls
etal1997)
Socialnetwor
ksencompassal lofthepeopl
eanindi
vidualknows–f amil
ymember
s,
fr
iends,busi
nessassociat
es

Stagesi
nident
if
icat
ionbusi
nessoppor
tuni
tyandcommencementofoper
ati
on
1.Monit
ori
ngofbusinessenvi
ronment

6
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

2.Generati
onofbusi nessideast hrough:
Personal experi
ence
Hobbyorapar ttimej ob
Wor k–of f
Exist
inglicensesorf ranchises
Lit
eratur
ee. gtradej ournals,int
ernetet
c
Businessacquai ntances, bankersetc
Duplicat
ionofexi sti
ngbusi ness

3.Choiceoflocati
on
4.Concludi
ngaf easi
bili
tystudy
5.Recognit
ionoftheobst acl
esanddev isi
ngwaysofov
ercomi
ngt
hem
6.Pl
anningofoper at
ionalstrat
egy
7.Deci
dingont henatureofbusi nessf
ormati
on
8.Regi
strat
ionandcommencementofbusi ness

Legalfor
msofst art
-ups
1.Solepropr
iet
orshipBusi
nessEnter
prises
Thisisanent erpr
iseestabl
ished,f
inanced,owned,managedandcont
rol
l
edbyone
person.

Advantages
Easyorganizati
on
QuickDecisionmaking
Customersat i
sfact
ion
Fl
exibil
it
y
Supervi
sion
Profi
t
Taxati
on

Di
sadvantages
Li
mitedfinanci
alResources
Unli
mitedli
abil
it
y
Lackofcontinui
ty
LackofEconomi csofscale
MismanagementofResour ces
LabourTurnover
Fati
gue

2.Par
tner
shi
pBusi
nessEnt
erpri
ses
Thisi
sanenter
pri
seest
abl
ished,f
inanced,owned,managedandcont
rol
l
edbyt
wot
o
twent
ypeopl
e.

Adv
ant
ages

7
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

Largecapi t
al
Skillandexper i
enceofpar
tner
s
Cont inuit
y
Effect i
veDecisi
onmaking
Taxat ion
DivisionofLabour
Riskshar ing

Di
sadvantages
Confl
ictamongmember s
Unli
mitedli
abil
it
y
LackofContinui
ty
Li
abil
ityoft
heact i
onsofmember
s
Li
mitedsize
NotbeingalegalEnti
ty

3.Corporati
onEnterpri
ses(Li
mit
edliabi
li
tyCompany )
I
tisabusi nessorgani
zati
onestabl
i
shed,financedandownedbyami ni
mum oftwo
peopl
e,oftenrefer
redtoas“shar
eholder
s”.Ont henumberofshar
ehol
ders,
iti
sdi
vi
ded
i
ntoprivat
eandpubl i
c.
Pri
vate:Twot ofi
fty
Publi
c:Twot oi
nfi
nit
y

Advantages
Largecapital
Conti
nuityofBusiness
Eff
ectivemanagement
Easytransferofi
nvest
ment
Li
mi t
edl i
abil
it
y
Economi csofscale
LegalEntit
y

Di
sadvant ages
Organizati
onalcompl exit
y
SlowDeci si
onmaki ngpr ocess
Separationofowner shipfrom management
Rigi
dit
y
Heavyt axati
on
Lackofsecr ecy
Lackofper sonalcontactwi t
hcustomers

Viabi
li
tyAnalysi
sofNewVent ur
e
Therearethr
eebasicfi
nanci
alst
atement
stoanal
yzet
hev
iabi
l
ityofanewv
ent
urev
iz;
1.Thecashflowstatement

8
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

2.Thebalancesheet
3.Prof
itandlossstat
ement
Fi
nancingofbusinessEnt
erpr
ise
Entr
epreneursneedtoknowthetypesofcapit
alandt heassoci
atedcostbecauset
hat
wil
linf
luencethei
rchoi
ceofapart
icul
arsour
ceoffinancing

Typesofcapital
1.Equi
tycapital:compr i
sesofpersonalmoneyandot herasset
soft heowner(
s)oft
he
busi
nessenterprises(okungwuandsal eh,2004)
2.Debtcapital:compr i
sesofmoneyandasset sreali
zedf r
om loansfrom i
ndi
vi
dual
s
and/orfi
nancialinsti
tut
ionsli
kebanks, f
inanci
alhousesetc.

SourcesofEquityCapital
a.Personalr
esourcesofowner
s
b.ResourcesofRelati
vesandf
ri
ends
c.Resourcesofpartner
sandBusi
nessassoci
ates
d.Retai
nedEarnings

SourcesofDebtCapi t
al
a.Banks
Overdr
aft
Termloan
BankGuar antee
Commer cialloans
b.Gov er
nmentsuppor t
c.Special
izedf inanci
alinst
it
uti
on
d.Tradecr edi
t
e.Hirepurchase
f.Equipmentl easing

Factorsi nfl
uencingchoiceofsourcesofcapi
tal
1.Nat ureandv alueofavail
ableasset
s
2.Cost s
3.Dividendpay mentt osharehol
ders
4.Fi
nanci al
Needs
5.Existi
ngcapi talst
ruct
ure

CHAPTERTHREE:BUSI
NESSENVI
RONMENT

Envi
ronmenti sdefi
nedasal lel
ement soutsi
deanorganizat
ionthatarer
elevanttoit
s
operat
ion(stoner
,fr
eeman,Gi l
bert1995).Busi
nessenvi
ronmentdenotesthefullr
ange
ofpublicpolici
es,inst
it
uti
ons,regulati
onsandadmi ni
strat
ivesystemswi t
hinwhich
people and fi
rmsoper at
ive(Eboh and Lemchi,2010).Mar i
re(2004)describe t
he

9
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

env
ironment
alf
act
orst
hataf
fector
gani
zat
ionsandbusi
nessest
hus;

a.Internalenv i
ronmentf actorssuchast heorgani
zat
ionalmember sandthephysical
resourceneededf ortherunningoftheor
ganizat
ion
b.Ext ernalenvironmentf actorssuchast heeconomicf act
ors,t
echnol
ogical
,social
,
poli
ti
cal/ l
egalandet hical
factor
s

Theext
ernalf
act
orsofabusi
nessenv
ironmenti
ncl
ude:

1.Politicalandl egalenv i
ronment alfactors:Thisi ncludesgoodgov er nance,effi
cient
andt r
anspar entpublicadmi ni
st r
ationetc
2.Economi cenv i
ronment :economi cfactorswhi chaf f
ectt hebusinessesv i
zcapi t
al
l
abour ,gener alpri
cel evel,gov ernmentf iscalandt axpol icyandt hegener aleconomi c
growthet c.
3.Technol ogicalenv i
ronment :Ef f
ectsoft echnologyasi nt hedev elopmentofnew
products, newt ool
s,machi nesandnewser vicesont hebusi nesses
4.Infrastructuralenv ironment :t heef fectof( in)suf fi
cientaccesst oi nfrast
ructure
rel
evantt o communi cat i
on,ener gy,transpor t
,wat erwhi ch is sev ere concernt o
businessowner s.
5.Soci alenv ir
onment alf actors:Thi sconsi stsoft heat tit
udes,desires,expect at
ions,
general educationattainment ,culture,beli
efsandphi l
osophyofagr oup.

Eff
ectsoftheEnvi
ronmentontheor
ganizat
ion
1.Theysetli
mit
s
2.Theyprovi
deopport
uni
ti
esandchal
lenges

Env ir
onment alAnalysis
Thr eatsandoppor t
unit
iescharacteri
zethefutureandthepr esentofanybusi ness.To
i
dent if
ytheset hr
eats,theent
repreneurhast oanalyzetheenv i
ronmentinternal
lyand
externall
y.
Externall
y,he/ shemustcheckt hegeneraleconomi ccondi t
ions,indust
ryprojecti
ons,
technologicalchanges,compet it
ors,consumerpr ef
erences,t rends i
n gov er
nment
regulati
onet c
Internal
ly,
he/ sheshouldexaminet heorgani
zation’
sresourcestodet ermi
neitsstrengt
h
andweaknesses

MarketDevel
opmentProcess
Thisinvol
ves t
he i
ntr
oductions ofpr
esentpr
oduct
s orser
vices i
nto new mar
ket
segmentsorgeogr
aphi
calareas.

Itdel
iv
erst
hebusinessgr owththrough;
a.Newproductsorser
vicestoexisti
ngcustomer
s
b.Newproductsorser
vicestonewcust omers
c.Exi
ti
ngproduct
sorservicestonewcust omer
s

10
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

Anal
yzingMarketSi
tuati
on
A marketanal
ysisinvol
vesanal
yzi
ngthecurr
entsit
uat
ion,themar
ketdemand,t
he
pot
enti
almarketdemand,compet
it
ivet
rendmar
ket
ingout
lets.

Procedur eforanal y
zingmar ketdata
a.Def inedtheobj ectiveofst
udy
b.Conductasi tuationalanal
y si
softhemarket
c.Plant hemar ketst udy
d.Det erminethesour cesofsecondary
e.Det erminesuitabl emethodsf orgat
her
ingpr
imar
ydata
f.Pr
epar esurveyf ormsandf iel
dstest
g.Desi gnsampl eandcol l
ectdata
h.Processandanal yzebothsecondaryandpri
marydat
a
i
.Measur ethepr esentmar ket
j
.For ecastfuturemar ketdemand

CHAPTERFOUR:SOURCESOFFUNDS

Sourcesoff undsareplaceswher
ecapitalisorcanbeacqui red.Financeref
ersto
rai
singofcapitalf
undsandusi
ngthem f
orgenerat
ingret
urnsandpay ingret
urnsothe
suppli
esoffundswhichmaybeequit
yorborrowedfunds(Pandey
, 2001).

Nwudechuke( 2004)groupedsourcesoffundsi o:Theshor

nt tterm,medi um ter
m and
l
ongt ermf unds.
Unamka,P. CandEwur um U.F(1995)groupedthesourcesi o:Shor
nt tt erm andl ong
termf unds.
Shor ttermf inancedoesnotexceedt woy ear
se.gtr
adecredit,accrual,prepayment ,
bill
ofexchangeet c
Medi um t ermf i
nanceisbetweenonet ot enyear
se. gterml oan,v enturecapi t
al,
l
easi ng, hi
repur chaseet
c
Longt ermf inanceisbetweenteny ear
sandabovee.gBonds,war rants,shares,r
ights
i
ssues, depreciati
onetc

Theabov ecl assif

icati
oncanfur
therbenar
rowedt
oequi
tyanddebtf
inanci
ng.
Agener alsour ceoff undsi
ncl
udes;
1.Personal funds
2.Thri
ftsoci eti
es
3.Partnership
4.Agegr adeassoci ation
5.Tradecr edit
6.Creditunionf unding
7.Li
neofcr edit

11
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

8.Leasing
9.Depreci ati
on
10.Fami lyandf riends
11.Servicecont ractors
12.Capital stock
13.Cooper at
ivessocieties
14.Mor tgagel oans
15.Commer cialbanksloan
16.Angel sandv enturecapit
al
17.Retainedear ni ngs
18.Gover nment set c

Angeli
nvestor
s
Angeli
nvestor
sar
eAff
luenti
ndi
v i
dualsint
erest
edinbusinesseswi
thpr
omi
singgr
owt
h
pot
enti
als,
andwhopr
ovidecapi
talforbusi
nessstar
t–up

Vent
urecapit
al
Vent
ure capi
tal
s ar
efunds est
abl
i
shed i
nthe f
orm ofa t
rust
/companyi
ncl
udi
ng
cor
porat
ebodies.

Import
anceofi nformalsourcesoff undstonewv entur
e
1.Theyadoptaf lexibl
eloanpoli
cy
2.Loanprocessinganddi sbur
sement sareusuallyshortandtimely
3.Theyhav emadet hesmallandmedi um sect orenterpri
se,andbluechipf
ir
mst he
fast
estgr
owi ng
4.Theyarethelastr esor
ttoafewnewbusi nessesthatcannotaccessstar
t–upfunds
5.Manynewv enturesdependont hesesourcesfort hei
rgrowthandsurvi
val
.

Import
anceoff ormalsourcesoff undstonewv enture
1.Theyprovidealinkbetweent hosewhohav esurplussavi
ngsandthosewhoneedt
he
fundsfori
nvestment
2.Theyextendcreditfaci
l
iti
estof armers
3.Theyprovidever
yi mportantservicestot hesoci
ety
4.Theyprovidel
ongt ermloanwhi chr educesr i
sks
5.Theyprovidel
ongt ermfinancesf orprojectswit
hl onggest
ati
onperi
od.

VenturecapitalProcess
1.Dealorigi
nation
2.Screening
3.Duedi l
i
gence
4.Dealstruct
uring
5.PostinvestmentAct i
vit
ies
6.Exist
TypesofVent urecapitalfunds

12
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

1.Seedmoney
2.Star
t-
upfinance
3.Devel
opmentf i
nance
4.Workingcapit
al

CHAPTERFI
VE:CREDI
TMANAGEMENT

Credi
tisthetrustwhichall
owsonepar t
ytoprovi
der esour
cestoanot
herpar
tywhere
thatsecondpartydoesnotrei
mbursethefir
stpart
yi mmediat
ely
,buti
nst
eadarr
anges
eit
hertorepayorret
urnthoser
esourcesatalat
erdate.

Typesofcr edit
1.Tradecredit:Referstot
heappr
ovalf
ordel
ayedpay
mentsf
orpurchasedgoods.
2.Consumercr edit
:consumercredi
tismoney,goodsorserv
icespr ov
ided t
o an
i
ndividual
inlienofpay ment.

Recordkeepi
ng
Thi
sisthepracti
ceofmaint
aini
ngther
ecor
dsofanor
gani
zat
ionf
rom t
het
imet
heyar
e
cr
eatedtothei
revent
ual
disposal
.

Moneycanflowintothebusinessthr
ough;
1.I
ncomefrom sel
li
nggoodsorser vi
ces
2.Moneyf
rom sell
i
ngbusinessassets
3.Moneyyouhavecontri
butedtothebusiness
4.Moneyyouhaveborrowed

Moneycanfl
owoutoft hebusi
nesst hr
ough;
1.Pay
mentsforexpensesofcarryi
ngont hebusi
ness
2.Pay
mentstobuyorr epl
acebusinessassets
3.Pay
mentstoyoufrom thebusiness(drawi
ngs)

Practi
ci ngr ecor
dsmanagementi nvol
v es:
1.Planni ngt hei
nformationneedsoft heor gani
zat
ion
2.Identifyingi nf
ormat i
onr equi
ri
ngcapt ure
3.Dev elopi ngar ecordsstorageplan
4.Identifying, cl
assifyi
ngandst oringrecords
5.Coor dinat ingdataprivacyandpubl i
caccess
Fi
v e(
5)C’ sofcr edit
1.Char act er
2.Capaci t
y
3.Capi t
al
4.Condi tions
5.Collater al

13
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

Costofcr
edit
Thi
sistheaddit
ionalamount,overandabovetheamountbor r
owedt hatt
hebor
rower
hastopay.
Wheninter
estr
atesarerai
sing,
fixed-
rat
eloansareusuall
ybet
ter
.
Wheninter
estr
atesarefal
l
ing,vari
abl
eratesaregeneral
l
ymoreattr
acti
ve

LoanTenor
Thi
sistheamountoft
imel
eftf
ort
her
e-pay
mentofal
oanorcont
ractort
hei
nit
ialt
erm
l
engthofaloan.

Credi
tRi
sk
Credi
tri
skisaninvest
or’
sri
skofl
ossar
isi
ngf
rom abor
rowerwhodoesnotmake
payment
saspromised.

Guar
antor
Aguarant
ori
sani
ndi
vi
dual
,companyori
nst
it
uti
onpl
edgi
ngt
omakegoodonadebtor
pr
oduct.

CHAPTERSI
X:CO-
OPERATI
VES

Co-operati
v esmeanswor kingt oget hertoachiev
eapar ti
cularpurpose
I
ncreasedst rengthf rom j ointef fort
,twoheadsar ebet t
erthanone,ormanyheads
makel i
ghtt hewor k(Gretton, 1971) .
A co-operat i
vei s an associ ation ofper sons forsol vi
ng theircommon pr oblems
(Munkner, 1978) .
Ar evi
ew panelonco- oper ati
vepr i
ncipl
esin1978r eveal
edt hatat rueco-oper
ativ
es
musthav et hef oll
owi ngat t
ributes:
1.Openandv oluntarymember ship
2.Democr at i
ccont rol byt her uleof“ onemanonev ote”
3.Promot emembereducat i
on
4.Cooperat ewi thotherco- oper ati
v eifneedbe
5.Paymember sbackpar toft hesoci et
y’ssurplusearningsont hebasisofeach
member ’slevel ofpar tici
pat ion
6.Payonl yal imitedint erestoncapi talemployedinthebusinessoft hesoci
ety.

Costofcr edit
:Thisistheaddi
tionalamountov
erandabov
etheamountbor
rowedt
hat
theborrowerhast opay.
1.Open, soci
al,associ
ati
oni
standintegr
ati
ve
2.Voluntary

14
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

3.Amor al
lyconsci
ousorgani
zati
on(f
airandequal
)
4.Apeoplespriv
ateor
ganizat
ion
5.Educati
onal
6.Anautonomousself-
helporgani
zat
ion

According t oI CA ( 1995) ,a cooper at

ive societ
yis an autonomous associ ati
on of
personsuni tedvolunt ari
lytomeett heircommoneconomi c,socialandculturalneeds
andaspi rationsthroughj oi
ntl
yownedanddemocr ati
cal
lycontrol
ledenterpr
ises.
Objecti
v esofcooper ativ
es
1.Provisionofser v i
cesatl owercost s
2.Eli
mi nationofusur yandunnecessar yprofi
t
3.Prevent i
ngexpl oitationoft heweakbyt hest r
ong
4.Protectingt herightsofpeopl e(asproducers&consumer s)
5.Promot i
ngmut ual understandingamongmember s
6.Inculcatingt hehabi toft hrif
tinitsmember sandtheresultantcapit
alaccumul at
ion
fordevelopment

TypesofCooper at
ivesSocieti
es
1.Accor di
ng t othe functions per
formed withrespecttothe members’soci
o–
economicinterests
a.Producti
vecooper at
ivesociet
ies(PCs)
Ordi
naryPCs:Member sr untheirbusi
nessesseparatel
ybutowncommonasset s
cooperati
vel
y.
FullPSc:Allproducti
veactivi
ti
esarefull
ycol
lect
ivi
zed.(Gr
ouppr
oduct
ion)

b.Auxil
iar
yCooperati
v esoci
eti
es–Theyr enderessent
ial
ser
vicest
omember
s.
2.Accordi
ngtothelegalstat
usofthecooperati
ve
Regist
eredcooperat
ivesociet
ies
Unregist
eredcooperati
vesoci
eti
es

3.Accordi
ngtothegeogr
aphi
cal
areaofoper
ati
on
Urbancooperat
ives
Ruralcooper
ati
ves

4.Accor
dingtotheor gani
zat
ional
lev
elofoper
ati
on
Pri
maryCooper at
ives
SecondaryCooperatives
Tert
iar
yCooperatives

5.Accordingtot
hesect
oroft
heEconomywhent
hecooper
ati
vesoci
eti
esoper
ati
ve
Agricult
ural
Industri
al
ServiceCooper
ati
veset
c

15
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

6.Accordi
ngt otheeconomicstatusofmember
s
Producers’cooperati
vesoci
eti
es
Consumer s’cooperati
vesoci
eti
es
Workerscooper at
ives

7.Accordi
ngtonumberoff i
eldsofoperat
ion
Singl
epurposecooperati
vesocieti
es
Multi–purposecooperat
ivesociet
ies

8.Accor dingt onumer i

cal si
zeofmembershi
p
Smal lcooper ativ
es
Medi um si zedcooper atives
Largeco- oper ati
ves
9.Accor dingt ot hedecisionmakingar
rangement
Traditional cooper at
ives
Mar ket–l i
nkedcooper ativ
es
Int
egr atedcooper ati
ves

StepsInvol
vedi nf ormingaCooper ati
v eSociety
Step1:
Establ
ishmentofser vicegapswhi cht hef or
mat i
onofacooperati
vesoci
etycanfil
l
Step2:
Searchforsuitablepr oject/t
ypeofcooper at
ive
Step3:
Setupanor ganizingcommi ttee
Step4:
Conducteconomi candsoci alfeasibi
litystudyoftheproj
ectthatthecooperati
veist
o
embarkon
Step5:
Invi
teprospectivemember stoagener al meeti
ng
Step6:
Commenceeducat i
onal programmesandt r
ialr
unofthecooperat
ivepr
oject
Step7:
Commencel egal document ation
Step8:
ManagementSt ructureoft heCooper ativesisconfi
rmedandelecti
onofoffi
cershel
d
Step9:
Regist
eredwi t
hcooper ati
veDepar tment
Step10:
Operati
onsoft henewcooper ati
vesoci ety.

Foracooperati
vetooperat
ivesuccessf
ull
y,somebasi
crequi
rement
smustbemet
.
1.Or
ganizati
onofthecooperat
ivemustbebasedonfel
tneed
2.Member scont
roloft
hesocietyi
sessenti
al

16
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

3.Suff
ici
entvol
umeofbusi ness
4.Competentmanagement
5.HomogeneityofCooperators
6.Adequateaudi
tandfinancialcont
rol

StructureofCooper at i
veManagement
1.Thet abularorf lator ganizationalstr
uctur
e
Member s
Commi t
tee/ Board
Secretary
ManagerAManagerBManagerCManagerD
StaffStaffStaffStaf f
2.Theci rcul
aror gani zational Struct
ure
Staff
Manager s
Secretary
Commi t
tee/Board
Member s
3.Py r
ami dalorgani zational structur
e
Themosti mpor tantor ganofmanagementi nacooper at
ivesoci
etyisthegener
al
meet i
ngofmember sdeci sionsr eachedateveryothermeeti
ngoft hecooper
ati
ve
societyissubjectt oappr ovaloft hegener
almeet
ingofmembers.

TypesofGener alMeet i
ng
a.OrdinaryGener alMeet i
ng:Normalmeet ingofthecooperat
ivesociet
yheldatagreed
i
ntervals–weekl y,mont hl
yorquarterl
y.
b.Extra-Ordinary/
Emer gencygener almeeting:meet
ingthatisheldwhenaneedt hat
requi
resur gentattent
ionarises.
c.AnnualGener almeet i
ng( AGM):perfor
mssomest at
utoryfunct
ionsfunct
ionforthe
cooperative.
Staff
Manager s
Secretary
Commi t
tee/Board
Member s

CHAPTERSEVEN:MARKETI NG
“Market
ing”i
sderi
vedfrom t
heword“ mar
ket
”whi chrefer
stoagr
oupofsel
l
ersand
buyerst
hatcooper
atet
oexchangegoodsandser
vices.

Marketi
ngistheactiv
ity,setofinst
it
uti
on,andpr ocessesforcr
eating,communicat
ing,
del
iver
ingandexchangingof f
eri
ngsthathavev al
uef orcust
omers,cli
ents,
part
nersand
soci
etyatl
arge.kot
lerPhili
p(2008).
Marketi
ngisasetofpr ocessthatareinter
-connectedandi nt
erdependentwit
hother

17
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

funct i
ons, whosemethodscanbei mprovedusingav arietyofrel
ativelynewapproaches
(Selden, 1997).
Mar keting concept aims at f ulfi
ll
i
ng its organizationalobj ectives t
hrough the
anticipationoftheneedsandwant sofconsumer sandsat i
sfyi
ngt hesemor eeff
ici
entl
y
thancompet i
ti
on(Amstrong,2008).
Mar ketingt her
eforei
susedt oidenti
fythecustomer ,sati
sfythecust omerandkeept he
cust omer .
Product ionconceptoror i
entati
oni sthespecial
izati
onofaf irmint heproducti
onofa
givenpr oductorser vi
ceasmuchaspossi bl
e.Pr oductor i
entat
ionemphasi zesqualit
y
ofthepr oductinthemidstofmanypr oducts.

Recentapproachesinmar keti
ngi udeB2C,B2B,B2S,B2Ci
ncl sr el
ati
onshi
pmar keti
ng
withfocusont hecustomer.B2Bi sbusinessori ndustr
ialmarketi
ngwithfocusonan
organi
zati
onori nst
it
ution.B2Sissocialmar ket
ingt hatisconcernedwithbenefi
tsof
thesociet
y.

NB
B2C=Busi nesstoCust omer s
B2B=Busi nesstoBusiness
B2S=Busi nesstoSociety
Alsot herei si
nternetmar keti
ng(e-market
ing.Onli
nemar keti
ng,
aff
il
iat
emarket
ing)
Const ructivecrit
ici
sm hel psmar ketersadoptof fer
ingstomeetchangingcust omer
needsandwant s.
TheSI VA – Dev .Cheki t
ansandshul ts(
2005)pr ovi
dest he4Psmodelofmar ket
ing
(product ,pri
ce,pl
acement, promoti
on).
Selli
ngi sj ustt
heactofper suadingorinfl
uencingacust omertobuyapr
oductser vi
ce
oridea.
SixSt epsaConsumerorbusi nessbuyermov esthroughwhenmaki ng
apur chasedeci sionincludes;
Awar eness
Knowl edge
Li
king
Preference
Conv i
ction
Purchases

Accordi
ng t
o Michaelport
er’scl
assi
cbook“ Competiti
veSt rategy”thethreemost
commoncompet it
iveSt
rat
egiesar
e:-l
ow-
costsuppl
i
er ,
differ
entiati
onandniche
Thewhol et
hinki
ngherecanbesubsumedintoanal gebraicrepresent
atonof6W +H
i
whichmeans:What,Who,Why ,
When, Wher
e,Which+How?

CHAPTEREI
GHT:CUSTOMERLOYALTY

18
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

Thewor dcustomerref
erstoonewi thint
enti
onorwi l
l
ingnesst
oencourageorst andfor
thebenefi
tandbusinesssuccessofabusi nesspersonbybuyingandmot ivat
ingother
user
soft hegoodsandser vi
cestobuyanduset hegoodsandser vi
cesproducedbyt he
busi
nessperson
Customersarealsocurrentorpotenti
albuyerorusersoftheproduct
sofani ndivi
dual
ororgani
zati
oncall
edthesupplier
,sell
er,
orvendor.

TypesofCustomers
1.Busi
nesscustomers–buy
store-
sel
l
2.Consumercustomer–buy
stoconsume

Customercaremeansser i
ousat
tentiont
oentr
epreneur
’scaut
iousnessi
nrel
ati
onwi
th
customer.
Customer’sbehavi
ourref
erstohow customer
sreactintheprocessofacqui
ri
ngand
uti
li
zingeconomicgoodsandser
vices.

Factor
sthatcontr
ibut
et ocustomer ’
ssatisf
act
ioni
ncl
udes;
1.Theval
ueofmoneyy ouoffer
2.Howwel l
yourproductsmat chcustomerneeds
3.Youref
fi
ciencyandreli
abi
li
tyt oorders
4.Theexpert
iseofyouremploy ees
5.Howwel l
youkeepy ourcustomer sinf
ormed
6.Theaft
ersalesserv
icesyoupr ovi
de.

Cust omercar eser vicei smadeupoft henatureoftheor gani

zati
on,typeofservi
ces
render ed by t he or ganizat i
on t ot he customers,customer ’
s servi
ce needs and
expect at i
onsandsat isfact i
onofcust omers’expectati
ons.Lyons( 1970)stat
edthat
cust omercar eser v i
cei sal lthedi r
ectandindir
ectcontactbetweenanor gani
zat
ionand
i
tscust omer s.
Effi
ci entandef fect i
v ecust omerser vi
ceinvol
ves;
Attentivelist
eni ngt ocust omer s
Maki ngpol it
esuggest i
ons
Maki ngpr omi sest haty ouwi llkeep
Takinganext raef fort
Buildinganef fi
cientcust omerser vi
ceteam
Knowi ngwhoi st heboss
I
dent ifyi
ngandant icipati
ngneeds
Maki ngcust omer sf eel i
mpor tantandappreciat
ed
Helpingcust omer sunder standy oursyst
ems
Appr eciati
ngt hepowerof“ yes”
Givingmor ethanexpect ed
Get t
ingr egularf eedback
Treatempl oyeeswel l

19
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

CHAPTERNI
NE:E-BUSI
NESS

Electronicbusinessisaflexi
bleprocessthatenabl
esever
yonei nanygeographicalarea
topar takeactiv
elyi
nbusinessar oundtheworldbothi
nabstractandrealobjectfor
ms.
E-commer cedealsdirect
lywiththeexchangeofgoodsandt heirpaymentfacili
tat
edby
electr
oni ctr
ansacti
one. gretai
lshopping,ai
rl
inebooki
ng,andbankingEt c.Thedr i
vi
ng
forcebehi nde-busi
nessistheNet worki
ngeconomy .
E-Tradi ngdealswitht heselli
ngoff inanci
alinst
rument
ssuchasst ock,bondsand
treasurieselect
roni
call
y.(B2B,B2C)

E-Busi
nessandi t
simpact
1.Thecommer ci
alexchangeofgoods,serv
ices,i
nfor
mat
ionenabl
edbyanel
ect
roni
c
medium
2.Acoll
apseoft i
meandspacebet weenpart
ners
3.Thetransi
ti
ontothe‘newwor l
d’networ
keconomy
4.Creat
ingthewebenabl edent
erpri
se

ChangesEnabledbyaTechnol
ogyPush
1.Conver
gingchannel
s
2.Di
vergi
ngchannels

Basi
csofE–Busi ness
1.Theparti
es( actor
s)y ouaredealingwithe.
gcustomers,suppli
ers,Gover
nment,
Competi
tor
s.
2.Theresourcesaty ourdisposale.ginv
est
mentfunds,inf
rast
ructure,per
sonnel
,
st
rat
egyetc
3.Thebusinessf uncti
onstobeper for
mede.gDel
iver
y,Promotions,Procur
ement,
Management,Operati
onsetc

Cri
ti
calSuccessFact or(CSFs)f orE-busi
nessintheDevelopingWorld
1.I
tful
fil
lsaneedofagr oupofuser s
2.Theusershav esuffi
cientmeanst omakeuseoft heservice
3.Thenecessaryinfr
astructur
ei sadequateinrel
ati
ontothephy si
calenv
ironment
4.Thetargetgrouphassuf fi
cientknow-howt omakeuseoft heservi
ce
E-Busi
nesspr ocesscy cle
1.Awareness(vi
sion)
2.Ambiti
on(Scope)
3.Concept(r
oadmap)
4.Real
izati
on(ontheroad)

EDIinvol
ves data exchange among part
ies t
hatknow each ot
herwel
land make
ar
rangement
sf orone–t o–oneconnect i
on,usual
lydi
al–up.

20
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

I
mpor t
antImplicati
onofI ncreasedE-
Tradi
ng
Reducedcostoft ransacti
ons
Great
erli
quidi
ty
Great
ercompet it
ion
I
ncreasedTranspar ency
Ti
ghterSpreads

CHAPTERTEN:MANAGI
NGTRANSI
TION:
FROM START–UPTOGROWTH

Tr ansit i
oni nbusi nessi sapr ocessi nwhi chabusi nessunder goesachangeand
passesf rom onef orm orstagetoanot her.
Tr ansitmustoccuri nmanynewv entureseitherforther easonofretir
ementordeat
hof
theowner ,orexpansi onofthebusi ness.
Thel i
fecy cl
eofani ndustr
yisdepi ctedasanS–shapedcur veandi smadeupoff our
stages;
Exper i
ment ati
on
Exploi tati
on
Mat ur i
ty
Decl i
ne
A successi on plan isa pr ocessi n which l eader
ship,and ev entuall
yownershi
pi s
transf erredtasuccessor
Per sonalDi sci
pli
nei nBusiness
Thi sist heabili
tyt odowhati snecessar yorsensi blewi thoutneedingtobeurgedby
somebodyel se.Theabi li
tyoftheent r
epreneurt ostickt otheri
ghtcodeofconductor
behav iourinspiteofhi spersonaldesi r
eslargelydependsonhi str
aits,
attitudesandhabi t
s.

1.Trait– Extr
aversi
on,opennesstoexper
ience,agr
eeabl
eness,Consci
ent
iousness,
Emotionalst
abi
li
ty.
2.At
titudes–careerat
ti
tudes,
Mental
att
it
udesetc
3.Habits

Thethree(
3)wi delyusedmethodofbusi nesseval
uati
oni ncl
udes;
1.Asset,
2.Cashf lowand3.Earnings.
Speci
fi
c eval
uat i
on enables an ent
repreneurdetermine the pr
esentval
ue oft
he
company,i
.e.
,valui
ngt hecompanybasedoni tsf
uturesalesandprofi
ts.

StressandPr
essure
Stressmaybesimplydefi
nedasaperson’
sadapt
iver
esponset
oast
imul
ust
hatpl
aces
excessi
vepsy
chologi
calorphysi
cal
demandsonthatper
son.

St
ressor(
sti
mul
us)r
efer
stoany
thi
ngt
hatcani
nducest
ress.St
ressmaybeposi
ti
veor

21
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

negati
ve.Whenst ressemanatesfr
om agoodsour ce,f
orexamplegett
ingapromoti
on
orpoli
ti
calappointment,i
tiscal
ledeust
ress.Butnegati
vestr
essiscal
leddi
stresse.
g
Excessi
vepressure,badnewsetc.

An ent r
epreneurcan applythe f
oll
owing copi
ng st
rat
egi
es i
n managi
ng st
ress i
n
businessespecial
l
yintransi
ti
onsi
tuati
on.
i
.Exer ci
se
i
i.Relaxati
on
i
ii
.TimeManagement
i
v.Rol eManagement
v.SupportGroups

CHAPTERELEVEN:LEADERSHI
P

Leadershi
pisthepr
ocessofdir
ecti
ngthebehav i
ourofot
hersororganizi
ngagr oupof
peopletoachi
eveacommongoal .Aleaderisapersonwhohasav i
sion,adr
iveanda
commi tmentt
oachi
evethatv
isi
onandt heski
ll
stomakeithappen.

Char acteristi
csofagoodLeader
Discipline
Self–conf i
dence
Honest y
For ward–l ooki
ng
Compet ence
Inspiration
Intell
igence
Aleadercanbet ask–or
ient
edorpeopl
e–or
ient
ed

Dif
ferencesbetweenLeader shipandManagement
1.Manager shavesubordi
nateswhi l
eleadershavefol
lowers
2.Manager s ar
e authori
tarian and hav et r
ansacti
onalst
yle,whi
l
eleader
s ar
e
chari
smat i
candhav etr
ansformat i
onalst
yle
3.Manager sareworkfocuswhi l
eleadersarepeopl
ef ocus
4.Manager sseekcomfortwhileleader
sseekr i
sk

Effect
iveLeader shi
p
Accordingt oken“ SKC”Ogbonni a,“effect
ivel eadershi
pist heabil
it
ytosuccessful
ly
i
ntegrateandmaxi mi
zeav ail
ableresourceswi thintheinter
nalandexter
nalenvi
ronment
fortheat t
ainmentoforganizati
onal orsocietalgoals”
Anef fecti
veleaderisgener al
lysomeonet hatl eadsbyexampl eandotherpeoplej
ust
tendtof ol
lowbecauset heybeliev
ewhatt heydoi stheri
ghtthing.
Keepingpr omisesisanothersignofef fecti
veleader shi
p.

22
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

Somecomponent sessentialtoef f
ect i
vel eadershipare;
a.Communi cati
on
b.Knowl edgeandunder st
andi ng
c.Team wor k
d.Vi sion
e.Et hics
f.Commi t
ment
g.Recogni t
ionandEncour agement
h.Flexi bi
li
tywi thleadershipst yl
es
i
.Ri skandi nnov ati
on
Situat i
onalLeader shi
p
Thisl eadershi ptheorywasdev opedbyPaulHer
el sey,pr
ofessorandaut horoft
hebook
Sit
uat ionall eaderandKenBl anchar d,leadershipgur uandaut horoft heonemi nute
managerwhi l
ewor ki
ngont hef i
rsteditionofmanagementofor ganizati
onalbehaviour
(nowi nis9thedi
t t
ion)
.
Thef undament alunderpinni ngoft hesi tuati
onalleadershiptheoryist herei
snosi ngle
“best ”st yl
e ofl eadershi
p.The dr i
v i
ng phi l
osophybehi nd Blanchar d and Hersey’s
l
eader shi
pt heoryi sthei mpor t
anceofagoodmat chbet weenl eaderandf oll
ower.
Leader smustbemat ureenought ot aker esponsibil
it
yforthei
ract i
onsandchoi ces.
Thef ourbasi cway sofleadingf oll
ower si nthesituati
onalleadershipmet hodar e;
 Di recting
 Suppor t
ing
 Coachi ngand
 Del egat i
ng

InterpersonalSki ll
s
Int
er personalski l
lsar esomet imesr ef
erredtoaspeopl
eskillorcommunicat
ionski
l
ls.
Int
er personalski l
lsar et heski
ll
st hatapersonusestoint
eractwithot
herpeopl
esuch
asact i
veli
steningandt oneofvoi
ce.
Hel pfulti
psf orimpr ovinginter
personalskil
l
s
a.Smi l
e
b.Beappr eciate
c.Payat t
entiont oot hers
d.Pr acti
ceact iveli
st ening
e.Br i
ngpeopl etoget her
f.Resol veconf l
icts
g.Communi cateCl early
h.Humort hem
i
.Seei tfr
om t heirside
j
.DonotCompl ain

Conf
li
ctManagement
/Resol
uti
on
Conf
li
ctref
erstopercei
vedincompat
ibi
l
iti
esr
esul
ti
ngt
ypi
cal
l
yfr
om somef
orm of
23
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

i
nt erfer enceoropposi ti
on.
Conf lictmanagementi st hent heempl oymentofst rategi
estocor r
ectt hesepercei
ved
differ encesi naposi ti
vemannerConf li
ctmanagementwer eintoducedbyNur
r miand
Dar ling.Dy sfunct i
onalconf l
ictis dest ructi
ve and leads to decreased producti
vi
ty,
funct ionalconf lict may act uall
y encour age greater work effort and helpt ask
per for mance.
Sour cesofConf lict
Accor di ngt obot hDr af
tandt err
y,sev eralfactor
smaycr eat
e
organi zat ionalconf l
ict:
Scar ceResour ces
Jur isdi cti
onal Ambi guit
ies
Per sonal ityClashes
PowerandSt atusDi f
ferences
Goal Differences
Communi cat i
onBr eakdown
Conf lictManagementSt yles
1.Av oi dingConf l
ictResolutionSt yle
2.Compet ingConf li
ctResolut i
onSt yle
3.Accommodat ingConf l
ictResol utionSt yl
e
4.Compr omi singConf li
ctResol utionSt yl
e
5.Col labor at i
ngConf li
ctResol uti
onSt y
le

CHAPTERTWELVE:TI
MEMANAGEMENT

Timemanagementi stheactofar r
anging,or
gani
zi
ng,scheduli
ngandbudget
ingone’
s
ti
mef orthepur poseofgeneratingmoreef f
ecti
vewor
kandpr oduct
ivi
ty.
TipsforEffecti
v eTi meManagement
1.Spendt i
mepl anningandorganizi
ng
2.Setgoals
3.Pri
orit
ize
4.Createa‘todol i
st’
5.BeFlexible
6.Learntosayno
7.Rewar dyourself
8.Eli
minatetheur gent
TimeManagementTechni quesForSt udents

1.Studydi
fficul
torbori
ngsubj
ect
sfi
rst
2.Beawareofy ourbestti
meofday
3.Usewaitingti
me
4.Getoffthephone
5.Avoidnoisedist
ract
ion

24
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

Procrasti
nati
on
Thisistheartofdoingsomet hi
ngelsewhenther
ear
emor
eimpor
tantt
hingst
odo.
TipsToAv oidProcrast i
nati
on
1.Makeapl anqui cklyandst ar
tworki
ngwit
hit
2.Compl et
eat askandmov eon
3.Practi
cetimemanagementt echni
ques
4.Donotbeaper fectionist
5.Dev el
opselfdiscipl
ine

CHAPTERTHI
RTEEN:I
NFORMATI
ONMANAGEMENT

Inf
ormat ionmanagementr efer stoanyactt hatut il
i
zesinfor
mationsystemst echnology
andmanagementski l
l
st othet askofmanagi ngent erpr
isedataresources,t
of ul
fi
llthe
i
nformat i
onneedsofbot hinternal andext ernalrequirementsofthefir
m.
Businessi nformationmanagementcanbeappl iedinthefoll
owingareas:
1.Mar keti
ngi nformati
onsy stem
a.Mar ki
ng/ mar ket
ingresearch
b.Mar ketmanagement
2.Manuf act ur
inginfor
mat i
onsy st
ems
3.Humanr esour cemanagementi nformationsy stem
4.Account inginformationsyst ems
5.Adv ert
isementandpr omot ioni nfor mati
onsy stems
6.Salesmanagementi nfor
mat ionsy stems

Functi
onsofInformati
onManagers
Strat
egi
cplanningandcontr
ol
Tacti
calpl
anningandcontr
ol
Operati
onalpl
anningandcontr
ol

TypesofInfor
mat i
onManagementSy stems
1.Documentmanagementsy stem( DMs)
2.ContentManagementSystem( CMs)
3.Lear
ningManagementSy stem( LMs)
4.Li
braryManagementSystem( LMs)
5.RecordsManagementsystem ( RMs)
6.Geographi
cInfor
mati
onSy stem( GI
s)
7.Digi
talI
magingSyst
em (DIs)

ManagementI nf
ormati
onSystem (
MI s)
Thisref er
st oallaggr
egat
esy st
emsi nanor gani
zat
iont
hatall
owsmanager st
omake
decisionsforthesuccessf
uloperat
ionofthei
rdaytodaybusi
nessent
erpr
ises.
Thef unctionalli
nesarest
ruct
uredasf ol
lows:

25
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

1.Fi
nancialMIs
2.Accounti
ngMI s
3.Manufactur
ingMIs
4.Marketi
ngMI s
5.Humanr esour
cesMIs

I
nfor
mat i
onandCommuni cati
onTechnology
(ICT)
I
CT refer
st ot he speci
fic,pur
posefuland sy st
emati
c use ofel ect
ronic/
manual
t
echnol
ogicalappl
i
ancesincomput ing,f
orbusinesspur
poses,t
elecommuni cat
ionet
c,
t
oprocessanddistr
ibut
einformat
ion.

ICTusuall
yconsistsoffourmai
ncomponent
s
1.Theinputunit
2.Thememor yunit
3.Thecentral
processi
ngunit
4.Theoutputunit

CareofI CT
1.Cov erappli
ancesal wayst opreventdust
2.Pl
acet heappliancesinav enti
latedenv ir
onment
3.Cleant hesurfacewithdr yclot
hdai ly
4.Connectwi thSt abi
li
zerorUps
5.Nev erplaceheav yobjectsonICTappl i
ance
6.Nev erplaceICTsonwetsur face
7.Alway sshutdownappl i
ancespr operly
8.Donotat t
achI CTswithspl i
cedext ensionwir
es

MiniProjectWr iti
ng
I
nabi dtoat tr
actf inanci ng/investment s,new v enturerequir
eagoodmi niproposali
n
othertoser v
easamar ket i
ngt oolmeantf ort hepur posesofsecuri
ngbankloansandto
applyforfi
nanci alsuppor tf r
om ot herr el
evantsour ces.
Four(4)aimsofami ni–pr oposali ncludes;
Toest abli
sht hev iabi
lityoft hepr oject
Toactasasel l
ingdocumentt opot enti
al inv est
ors
Todev elopabusi nessst r
ategyf ort heproj ect
Toconv incef i
nanci alinstit
ut i
onst oassistt heproject.
Toef f
ectivelygiveapr esent ati
on, theentr epr eneurneedst ocheckthef
oll
owing;
Mot i
ve
Goal
Purpose
Audience

St
epstowardseffect
ivepr
esent
ati
on
For
mulat
ey ourgoal

26
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

Anal
yzeyourAudience
Thebasi
crelevancet est(BRT)
Convi
nci
ngthroughor ganizing
Convi
nci
ngthroughuseofl anguageSt
ruct
ure
Theopeni
ng
Thebodyofthepr esentation
Theconcl
usionofy ourpr esentati
on

VisualAids
Thepur poseofvisualai
dsi st osupportver
balcommuni
cat
ion.I
tshoul
d
beusedt oshow;
a.Whatsomet hinglooksl i
ke
b.Howsomet hi
ngl ooksorwor ks
c.Relat
ionshi
pbet weent hings
d.Highli
ghtsimportantinformat i
on
e.Clari
fythestr
ucturesofy ourargumentat
ion
f.Emphasizetechnicalt
er ms, names,ti
tl
esetc.

Choosi
ngv i
sualAids
Usechalkorwhiteboar
ds
Usefl
ipchar
ts
Usetheoverheadproj
ector

CHAPTERFOURTEEN:DECI
SIONMAKI
NGPROCESS

Decisi
onsarehy
pothesi
sputfor
wardf orthesoluti
onofapr obl
em.–Okol
i(2004)
Decisi
onisachoicewherebyaper sonf ormsaconcl usi
onaboutasit
uati
onAppleby
(1981)
Decisi
onisaconclusi
ondrawnf r
om f actualpremisesandv al
uepr
emises–Her ber
t
Simon(1957)

Decisi
onMaking
Decisi
onmakingimpl
iest
hesel
ect
ionf
rom amongal
ter
nat
ivesofacour
seofact
ion–
(Chukwuemeka1998)

Si
tuationunderdeci
sion-
maki
ngi
ncl
udesdeci
sionmaki
ngunder
;
Certainty
Risk
Uncer tai
nty
Turbulence

Aspect
sofDeci
sionMaking
1.Fact
orst
hati
nfl
uencet
hechoi
cepeopl
emake

27
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

2.Fact
orsthatbi
asori
nter
fer
ewithdeci
sionmaki
ng,
otheraspect
sincl
ude:
Inf
ormati
on,knowl
edgeandexperi
ence
Cooperat
ion
Procedur
e

Phases/stagesofDecisi
onMaki
ng
1.Expl
orationstage
2.Anal
ytical
3.Expl
oringpossibl
esolut
ion
4.Deci
sionSt age

Stepsf ormaki ngagoodDeci sion

1.Probl em identif
icati
on
2.Evaluat ionofrelevantinfor
mat i
on
3.Gather ingdat a
4.Dev elopal t
ernativesoluti
ons
5.Studyt heeffectofalternat
ivesonprobl
ems
6.Selectt hebestal ter
nativescourse
7.Impl ementandmoni torthechosencourse
8.Alway scheckont heprogressofthesol
utions

TypesofDeci si
on
AccordingtoDrucker(1954)
TacticalDeci
sion–r out
ineandf
ewal
ter
nat
ive
Strat
egicdecisions

Othertypes
Organizat
ional deci
si
ons
Personaldecision
BasicDecision
RoutineDecision

Her
ber
tSi
moncl
assi
fi
eddecisi
onsasf
oll
ows:
Pr
ogr
ammed
Non–pr
ogr
ammeddeci
sions

Rati
onalDecisi
onsaccordi
ngt
oIl
e(2001)canbecl
assi
fi
edi
nto
1.AutomaticDeci
sion
2.Memor yDecisi
on
3.Cognit
iveorNormativ
e

Threebasi
ccommuni cat
ionchannel
sar
e:
1.Downwardchannel
2.Upwardchannel

28
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

3.Lat
eral
orhor
izont
alchannel

Barri
ersandBr eakdownsi ncommuni cati
on
1.Lackofplanning
2.Poorlyexpressedmessage
3.Communi cationint heinternati
onalenvi
ronment
4.Lossbyt r
ansmi ssionandpoorr etent
ion
5.Poorlist
eningandpr emat ureeval
uati
on
6.Distr
ust,t
hreatandf ear
7.Infor
mationov erl
oad

CHAPTERFI
FTEEN:BUSI
NESSPLAN

Abusi
nessplanisawr i
tt
enstat
ementthatdescr
ibesandanal
ysesy
ourbusi
nessand
gi
vesdet
ail
edproj
ect
ionsabouti
tsf
utur
e( Mckeev
er,2007)
.

Whywr it
eabusinessplan?
I
tgivesy ouali
stofgoalsandst epst ofoll
ow
I
thelpsuncoverobstacl
esy oumi ghthaveot herwi
seoverlooked
Itimpr ovesyourmanagementcapabi l
it
iesbygi vi
ng you pr
act
icei
n ant
ici
pat
ing
si
tuati
onsbothgoodandbadf ory ourbusiness
I
ttrai
nsy outoanaly
ze,organizeandmakebet terdeci
sions
I
ttransformsyouintoarespectedpr ofessional

PRODUCTI ONPLAN
Product
ionpl
anningisthepr
ocessofmakingdeci
sionsast
otheresour
ceswhi
cht
he
or
ganizati
onwil
lrequi
refr
om i
tspr
oduct
ionoper
ati
on.Dil
wor
th(
1993)

Acarefullydevelopedpr oductionplanwil
lal
l
ow yourcompanyt
omeett
hef
oll
owi
ng
obj
ecti
ves:
Mini
mi zecosts/maxi mizeprof i
ts
Maximi zecustomerser vice
Mini
mi zeinventoryinvestment
Mini
mi zechangesi npr oductionrat
es
Mini
mi zechangesi nwor k-f
or celev
els
Maximi zetheutil
izati
onofpl antandequi
pment

Advantagesofpr oductpl anni

ng
1.Reducel abourbyeli
mi nati
ngwast edti
me
2.Reducei nvent
orycost
3.Opti
mi zesequipmentusageandmaxi mi zescapacit
y
4.Uti
li
zeshumanr esourcest othei
rful
lpotenti
al
5.I
mpr oveson–t i
medel iveri
esofproductandservices

29
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

Keyf actorsofpr oducti

onplanni
ng
a.For ecastmar ketexpect
ati
ons
b.Inventorycont r
ol
c.Av ail
abil
ityofequipmentandhumanr
esour
ces
d.Standar dizedstepsandtime
e.Riskf actors

Howt opl an
The pr oduction plan needs t
o addr
ess speci
fi
c keyel
ement
s wel
lin adv
ance of
production:
Mat erialorderi
ng
Equipmentpr ocurement
Bottlenecks
Humanr esour cesacquisi
ti
onsandtr
aini
ng
Communi catetheplantotheemploy
ees
Consi derchanges

MARKETI NGPLAN
Thi
sisawr i
tt
endocumentthatspeci
fi
esi
ndetai
lsanorgani
zati
onmarket
ingobj
ecti
ves
andhowmar ket
ingmanagementcanusethecontr
oll
abl
emar kett
ool
stoachi
evethese
obj
ecti
ves.

Contents ofMar ket

ing Pl
an (kot
ter,2008)Exchange summary,curr
entmar keti
ng,
opportuni
ty and str
ength/i
ssues analy
sis,obj
ect
ives,market
ing,act
ion pr
ogr ams,
proj
ectedprofi
tandlossstatement
, cont
rols.

Themarket
ingstr
at esencompassessi
egi x(6)P’s:
PRODUCT,PRIZE,PROMOTION,PACKAGING, PEOPLEANDPLACE
ORGANIZATIONAL&MANAGEMENTPLAN

Organizati
onalplanisbasi call
yat odoli
stforanor
ganizat
ional
thatl
i
stsoutt
heplanof
work,programsandor ganizati
onalgrowthoveraperi
odoft i
me-si
xmonths,ayear
,fi
ve
year
s.Itencompassest hef ol
lowingaspect
:
a.Formsofbusi nessor ganizati
on
b.Organizati
onst r
ucture(organogram)
c.Staf
fingpattern
d.Pre-
oper at
ingactiv
iti
es
e.Scheduleofpr e-
operatingactivi
ti
es
f.Pr
e–oper ati
ngcost

Stepstocreat
inganorgani
zat
ionalpl
an
1.Deci
deoncat egor
ies
2.Setgoals
3.Settasks

30
 .
..
.TOREDUCEYOURSTRESS!(CHISOM EI
.,
07085402972,
07064494085)

4.Planaschedule
5.Chooseresponsibi
l
iti
es
6.Suppor
t
7.Foll
owthrough
8.Planev
aluati
on

Staff
ingpat
t er
n
Thisindi
catesthepersonal
/per
sonnelr
equi
rement(ski
l
lsrequi
redandpersonnel
)by
funct
ion (
mar ket
ing,pr
oducti
on,admini
str
ati
on,and fi
nance)and an est
imate of
compensati
on.

FINANCIALPLAN
Thisisthemeanswher ebyt heent
repr
eneuranswersquesti
onsontheimmediat
eand
futur
esolvenciesandli
qui
dit
yandadequatefi
nancegenerat
edint
ernal
l
yorext
ernal
lyat
thebestpossibleter
msofrevenueandcapi
talr
equi
rement.

Threef i
nancialareasar
ediscussedher
e:
1.Salesforecast
2.Projectedcashf l
ow
3.Projectedbalancesheet

SUCCESSI
NYOUREXAMS!
!!

31