Business Fundamentals

for Technopreneurs
[ENT 207/ENT607]

Desai Sethi Centre for

Entrepreneurship BFfT
 A Business You Know
■ Name:

■ Activity:

■ Key Person:

■ Size:
 A Business You Know
■ Name:

■ Activity:

■ Key Person:

■ Size:
Business, Individuals and Society:
Interdependent Elements
Customers and Employees
Businesses?
 The Nature of Business
▪ What is a business?
▪ Individuals or organizations providing products that
satisfy people's needs thereby trying to earn a profit .
▪ What is a product?
▪ A good or service with tangible and intangible
characteristics that provide satisfaction and benefits
Tangible Goods Services
▪ Automobile ▪ Dry cleaning
▪ Computer ▪ Photo processing
▪ Loaf of bread ▪ Checkup at doctor’s
▪ Television ▪ Movie star performance
1-5
 Economic System and Its Roles
The way a society distributes its resources to
produce goods and services.
Addresses the issue of how to fulfill unlimited
demand with limited supply of resources.
What goods and services and what quantity
will satisfy the needs of the consumer?
How will the goods and services be
produced?
Who will produce them and with what
resources?
How are the goods and services to be
distributed to the consumer?
Business Now: Moving at Breakneck Speed

 Business – any activity that provides goods

and services in an effort to earn profit.
 Nonprofit organizations focus on causes
not profit.
 In the last decade:
 The players have changed
 What consumers want has changed
 How we buy has changed
7
The History of Business: Putting It All in Context

•
The Industrial The Entrepreneurship
The Production Era
− Assembly Line
Revolution Era
− Refining Production
− Productivity Gains
 Mass Production Industrial
− Decrease Costs
Titans
Wealth creation
− Hard Sell/No Customer Focus
 Factories • Marketing Era
Increase in Living
− Consumer Power
 Work − Growth in Consumerism
Standard
Specialization − Product Differentiation
Competition
− Customer Focus
 Efficiency •
Exploitation
Relationship Era
− Long-term Customer
Relationship
− Use of Technology
8
The Business Environment: The Context for Success

9
The Business Environment: The Context for Success
 The Economic Environment – the state of the economy and current
actions by government agencies and consumers
 The Competitive Environment – many companies competing on
customer satisfaction
 Leading Edge Products
 Speed to Market
 The Workforce Advantage
 Technological Environment – the World Wide Web and digital
tools have transformed business and people’s lives
 The Social Environment
Diversity
Aging Population
Rising Expectations
Ethics and Social Responsibility
 The Global Environment – the U.S. interacts with other economies
10
across the world, especially as technology grows
Ease of Doing Business Index
 The Asian Giants
CHINA
■ Driving Force:
Manufacturing
■ Largest Communist
Country
■ Population: 1.3 Billion
■ Economic Growth Rate:
9%
■ Financial/Commercial
Capital: Shanghai
INDIA
■ Driving Force:
Services
■ Largest Democracy
■ Population: 1.25
Billion
■ Economic Growth
Rate: 7%
■ Financial/Commercial
Capital: Mumbai
 What Do Businesses Do?

Take Inputs Process/Manufacture Output

Costs – Fixed and Variable Revenue

Profit

Create/Capture/Deliver  Value
Value Chain for a Business
 Steps in the Management Decision Making Process

Recognize and Develop Analyze

Define the
Decision Situation Options Options

Select the Implement Monitor the

Best Option the Decision Consequences

There are Only Two Basic Activities of Management:

Figuring out what to do despite uncertainty, great diversity, and an
enormous amount of potentially relevant information, and,
Getting things done through a large and diverse set of people
despite having little direct control over most of them.
 Creating a New Value Equation
Reduce
What factors should be reduced
Eliminate well below the industry standard ? Create
What factors What factors
should be should be
eliminated created that
that the
New Value the industry
industry has Equation has never
taken for offered ?
granted ?
What factors should be raised well
beyond the industry standards ?
Raise
 How Are Businesses Organized?
■ Businesses are started by entrepreneurs who see a need,
recognize the opportunity, and go into business to meet
that need
■ Business and people need each other – there are many
stakeholders – we depend on businesses for products
and services, but also for employment
■ Buy inputs – raw materials, labour, machinery and
equipment, and land
■ Produce outputs – goods and services
■ Focus on efficient use of resources
■ Generate profit/surplus
 Building a New House
 Natural
 land, forests, etc. (not made by people)
 Material
 cement, steel, glass
 Human
 physical/mental abilities used by people to produce
goods and services
 Financial
 funds necessary to acquire needed
natural and human resources
 Time
 to build
 to use/deploy
 Factors of Production: The Basic Building Blocks

 Businesses rely on some combination of these factors:

 Natural Resources – land, water, wind, minerals
 Capital – machines, tools, buildings, information,
technology
 Human Resources – physical, intellectual and creative
contributions of labor
 Entrepreneurship – people who take the risk
 Entrepreneurship is a key factor.
 Most growing economies support and promote
entrepreneurship.20
 What Keeps the Business Going?
▪ Earn a Profit
▪ The difference between what it costs to make and sell a
product and what a customer pays for it.
▪ Profit
▪ The reward for the risks that businesses take in providing
products. Business reputation depends on profit AND
ethical conduct and responsibility
▪ Not all organizations are businesses.
▪ Nonprofit organizations provide goods and services
but do not have the fundamental purpose of earning
profits.
Those that have a stake in the success and outcomes of a business are
considered stakeholders.
Customers, employees, investors, government regulators, community
1-21
and society.
Maintaining
Profitability
Management skills
▪ Planning
▪ Organizing
▪ Controlling
▪ Leading
Marketing Expertise
▪ Products
▪ Price
▪ Promotion
▪ Distribution
1-22
 Managing a Business
 Business managers skillfully use and coordinate resources, such as
money, facilities, equipment, technologies, materials, and
employees, in a systematic manner to achieve particular goals.
 Managers have authority over their employees and are ultimately
responsible for their work.
 Managers must be creative problem solvers to achieve business
goals while minimizing costs.
 A good manager exercises the four management functions of
planning, organizing, directing, and controlling and also works to
build a positive company image and workplace climate.
 Business owners manage their expenses, credit, and cash flow
because these components are important to a business’s financial
health.
 Managing expenses requires knowledge of what they are and
actions that should be taken to reduce them wherever feasible.
 Cash is the life blood of a business.
 What Is Management
A process designed
to
achieve an organization’s objectives
by
using its resources effectively and
efficiently
in
a changing environment.
PESTEL Analysis: Issues and Impact
The People & Activities of Business
Management –
Management –
Focus on
Production and
employees
Manufacturing
▪ Coordinating
▪ Plan
employee’s
activities
actions
▪ Organize
▪ Organizing
staff
people for
▪ Control
efficiency
tasks
▪ Motivating
employees
toward
business goals.
Marketing – Focus on satisfying Finance – Primary responsibility of
customers
owners
▪ Determine what products
customers want ▪ Obtaining money
▪ Plan and develop products ▪ Using money effectively
▪ Determine distribution ▪ Accountants, stockbrokers,
▪ Determine place bankers
1-26
▪ Determine promotion
 Skills and Capacity Building
Why Study Business? Understand business activities.

Importance of Business impact

profitability ▪ Create products
▪ Individual businesses ▪ Hire employees
▪ Local and regional ▪ Attract capital
economic impact ▪ Fuel the economy
▪ Global economic ▪ Contribute to
impact society
 The offer—what will the business offer the customers?
 Target market—who will it serve?
 Production and delivery capability—how will it provide the products and services
it sells?

WHY: CUSTOMER
MOTIVATION
WHO: TEAM A well defined WHAT: SOLUTION
market need
The core execution A viable product or service
expertise (both internal that coherently addresses the
and advisors) need

WHEN: TRENDS WHERE: MARKET

Why is this the right An interesting existing or
time to address this? new emerging market
HOW: BUSINESS MODEL
How your solution reaches
the customer and you make
money

Elements of Business and Assessment

Business Fundamentals for Technopreneurs
Basic understanding of setting up and managing a business is
a pre-requisite for launching a technology based new venture.
This course is designed to help students understand the key
elements of business in the current environment.

1. Business and business environment Semester 1: 3 0 0 3

2. Organizing a business
3. Managing service and
manufacturing operations
4. Developing a team for a new
venture
5. Elements of Marketing
6. Basics of Finance
7. Setting up a technology based
venture
8. Business, Government and Society
9. Strategy and Leadership
10. Communication in business
Professor Anand Kusre and
Professor Devdip Purkayastha
Business: A Changing World,
7e, Ferrel, Hirt, McGraw-Hill,
2011.
MGMT Williams, Tripathy,
Cengage India, 2015
BCOM Lehman, Dufrene,
Sinha, Cengage India, 2012
Session-by-Session
Course Program
 Session # 1
Business and Business Environment
▪ Economic Systems ▪ Basic Types of
▪ Components of an Business Organizations
Economy ▪ Advantages and
▪ PESTEL Disadvantages
▪ Ease of Doing Business ▪ Entrepreneurship and
▪ Innovation Small Businesses

Right People, Right

Sheryl Time, Right Behaviour
Sandberg Lynn Reedy (eBay)
 Session 2
Organizing a Business
▪ Types of Companies
▪ Shareholders and Stakeholders
▪ Management & its Role
▪ Organization Structure
▪ Planning & Executing

Types of Companies Tata Group Companies

 Session # 3
Managing Service and
Manufacturing Operations
▪ What is a Manufacturing Company
▪ What is a Service Company
▪ Operations Management
▪ Supply Chain Management
▪ Quality Management

Operations Management
Trends in Customer
Service at General electric
 Session # 4
Developing a Team for the New
Venture
Group of founders, key employees, and advisors
50% to 70% of all new ventures are started by more than one
individual
Heterogeneous rather than homogenous teams tend to be more
effective
Higher Education
Prior Entrepreneurial Experience
Relevant Industry Experience
Broad Social and Professional Network
Board of
Directors
 Session # 5
Elements of Marketing

▪ What is Marketing
▪ What are the ‘4 Ps of Marketing’
▪ What is Branding
▪ Selling & Distributing
▪ Digital Marketing

Importance of Marketing Brand Management at

Management Procter & Gamble
 Session # 6
Basics of Finance
■ Accounting and Uses for Accounting
Information
■ Accounting Cycle
■ Financial Statements
■ Key Parameters
■ Money and Its Functions
■ Time Value of Money
■ Indian Financial System
■ Financing a Start-up
 Session # 7
Setting Up a Technology-based
Venture
▪ What is a MSME
▪ What is a ‘Startup’
▪ Who are Founders & Stakeholders
▪ What is a ‘Customer Problem’
▪ What is ‘Solution Designing’

Flipkart
What is a Startup Story
Startup ?
 Session # 8
Business, Government and Society
Relationship between business and government and in particular
the government’s role in influencing business decision making
Business Beliefs ▪ Reasons for Regulation
■ Maximizes concession to self- ▪ Controls natural monopolies
interest ▪ Controls negative externalities
■ Minimizes the load of obligations ▪ Achieves social goals
society imposes on the individual ▪ Other reasons
(personal freedom) ▪ Controls excess profits
■ Emphasizes inequalities of ▪ Controls excessive competition
individuals

Government Beliefs
Subordinated individual goals and self-interest to group goals and group interests
Maximized obligations assumed by the individual and discouraging self-interest
Emphasized equality of individuals
 Session # 9
Strategy and Leadership
■ Nature of Management and Leadership
■ Decision-making
■ Styles of Leadership
■ Vision, Mission and Strategy
■ Types of Strategy
■ Formulation and Execution of Strategy
 Session # 10
Communications in Business

■ The communication Process

■ Experience, Language and Meaning
■ Developing Rapport
■ Reading Non-verbal Messages
■ Belief and Value Systems
From Idea to New Venture
Desai Sethi Centre for Entrepreneurship
Established in June 2014 as an Inter-Disciplinary Program Centre
Autumn Semester Spring Semester
▪ ENT 201/603: Introduction to ▪ ENT 208/602: Technology
Entrepreneurship Venture Creation
▪ ENT 207/605: Business ▪ ENT 210/604: Marketing for
Fundamentals for Entrepreneurs
Technopreneurs ▪ ENT 205/601: Intellectual
▪ ENT 209/607: Managing Property Management for
Technological Innovation Entrepreneurs
▪ ENT 204/606: Developing a ▪ ENT 206/608: Developing Proof
Proof of Concept-Basic of Concept-Advanced
1,200+ students have joined these courses
Extensive networking with alumni entrepreneurs and Venture
Capitalists for courses and mentoring
New Program: B. Tech. (Minor) in Entrepreneurship
 JanYu Technologies EasyVoice
Enabling Digital Technology
Spearheading the robotic Solutions for Banks
revolution towards a mine-
free world
Tactical Remotely
Operated
Vehicle(ROV)
Felicitated by State Bank of
India for timely delivery of a
D S Centre project
Start-up Pipeline Proximal SoilSenS
Technologies Pvt. Ltd.

Optimizing
Trials on 6,000
Water/Nutrie
mothers
nts Usage
Over 100,000 tests
Through
Nano-tech Soil
Technologies for better Monitoring
healthcare delivery
Major Assignment

Product/ Service Concept

Developed During the Course
 Welcome!
Think Different!!

Bring On Your Idea!!!

 Business in Your Life
 Name two businesses you know
 1. Big corporate business
 2. A fast-growing start-up
 For each, write:
 Industry, Product/service and size
(sales and profits)
 People behind the business
 Factors for New Value Equation
Thank
You