Roll no - HRD1815196

Name of institute - BIMHRD

Batch - 2018-20

Specialization - PM&HRD

Semester - IV

Subject Name - Entreprenurship

Submitted by - Prashant Navatre

Submitted on date - 17th April 2020

Total no of pages written - 28

CASE I: ECOWASH: A BUSINESS OPPORTUNITY WORTH PURSUING?

a) Chao called her product “EcoWash” — an all-in-one system that could be used to clean
both the exterior and interior of any vehicle EcoWash system had a patented wash head that
vacuumed up the dirty water as soon as the cleaning solution was sprayed onto the vehicle’s
surface. The wash head featured a soft foam brush, power spray and vacuum, which were
used to whisk dirt and water away without scratching the surface of the vehicle. The result
was an extremely efficient car wash system that was also very ecologically friendly. A car
wash performed using the EcoWash system used less than two gallons of water. This was a
considerable improvement when compared to the 38 gallons that were typically used at a full-
service car wash.

The EcoWash unit was not only efficient, it was also easy to install. The EcoWash unit and
all of the necessary equipment could be mounted on a small pickup truck for use by a two-
person crew. Complete controls would allow the operator to regulate water, soap mixtures,
spray rate and washing speed. Pre- soaking was unnecessary and washing was fast. Vehicles
could be dried with towels to provide the desired finish. In addition to exterior cleaning, the
EcoWash unit also functioned as a carpet or upholstery cleaner. The powerful vacuum
component could clean even the dirtiest carpets and the built-in sump pump could be used to
discharge dirty water into an approved receptacle. As a result, EcoWash was an
environmentally friendly carwash service that leant itself to mobile operators as well as those
who wished to use it from a stationary location.

Chao had basically build her product on 4 Important Pillars/Components :

 Product Features
 Car Wash Industry
 Potential Customer Segments
 Financials

The Potential Problems with this Approach can be as follows :

 Growth in the Car wash Industry

 Marketing
 Return on Investment
 Balancing the Demand - Supply Equation
 Prioritisation between B2B and B2C Segments
b) KEY PRINCIPLES OF LEAN STARTUP METHODOLOGY:

Understanding how the world of business works and the methods we should use in getting to
the promised land is the true meaning of going lean. In The Lean Startup , How Today’s
Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses and use
scientific approach which teaches how to create and manage a startup to grow successfully.

Using the Lean Startup approach, companies can create order, not chaos by providing tools to
test a vision continuously, which ultimately means you need to work smarter, not harder
regardless of company size.

The Lean Startup is a new way of looking at the development of innovative new products that
emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the
same time.

The 5 Key Principles of The Lean Startup Methodology are as follows :

1. Entrepreneurs are everywhere

You can be anywhere at any time and create a startup. The key is in thinking big, starting
small and scaling fast.

2. Entrepreneurship is management

As an entrepreneur, you need to be accountable for yourself by exercising effective

management skills. You must know the process in order to successfully implement the
process. It’s easier to avoid mistakes when you know how to assess value and determine your
next steps.

3. Validated Learning

Startups exist to learn how to build a viable business. Each component can be scientifically
validated by running experiments that demonstrate and test your vision. With validation, you
will be able to identify and address the key risks in your product or service and make
adjustments to properly position your brand.

4. Build-Measure-Learn

The "Build-Measure-Learn feedback loop is at the core of the Lean Startup model.” This
means the main activity of a startup is to transform ideas into products or services, measure
your metrics for audience response, and determine whether you need to pivot (change
something) or persevere (continue on). Every process within the loop should accelerate
feedback.

5. Innovation Accounting

This process holds entrepreneurs accountable for their actions and outcomes through
prioritization of work, measurement of progress, and delineation of milestones. All of these
elements work together to define entrepreneurship, introducing a new way of how it should
be done.

c) Lean Startup principles embraced by Chao in her quest to create “ECO WASH”

1. Entrepreneurs are everywhere

Chao and her partner uses Car Wash Trucks and will approach the customer (B2B or B2C) by
themselves. They are planning to increase their trucks every year. And the car wash system is
easy to install in those trucks. This gives them the advantage to be present in both the sectors
i.e B2B and B2C. And due to this they can expand their business to both sectors viz.
Organised as well as the Unorganised Sector. It will help them to increase their customers
and through partnership with dealers or malls or any other businesses, they can provide the
services very efficiently by targeting the customers.

2. Entrepreneurship is management

Startup is not only a product; it is about whole institution containing man, machine, material,
money, customers etc. Chao and her partner is planning to increase the number of trucks, car
wash workers, sales people, and managers every year provided that their customer base is
increasing. The Net Profit gets affected accordingly. If any other innovation within comes up
then they can also plan to reduce the manpower with use of more advanced technology.

3. Validated Learning

The lean startup is predicated upon a learning process. It is the simplest way of building a
corporation. While building a product, a private should search for following things: Time
building, Customer wants, continuously Startup should look for total no. of working days,
time required to wash one car, travelling time, setup time, skills etc. It will them to provide
better results.
4. Innovation Accounting

As we can see, the milestones are set for “ECOWASH” like increase in the no. of trucks,
sales people, workers, managers etc. For this, forecasting is to be done and it will be based on
how well you read the customers, industry players and Market Attractiveness.

5. Build-Measure-Learn

It helps to build the minimum viable product (MVP).They can used the POD i.e. the patent
they are having about wash head and how people will get an additional benefit over the
traditional ones by using it.

In addition, segregation of customer segments, targeting, financials, operating costs, features

used in the product (sustainability), how it will differentiate from competitors are important.

It will improve by building a proper strategy; measuring the results and learning form them
for continuous improvement of the startup.
d) LEAN CANVAS :

Car Dealership :

Fleet Vehicles :
Valets :

Other Aspiring Entrepreneurs :

e) KEY ASSUMPTIONS IN ECOWASH BUSINESS MODEL

 Dealers are not having washing facility.

It is ignored that dealers are not having washing facility or existing competition. Some
dealers should have kept it or some dealers have got service providers already which is
having a very strong relationship. So, it is big task to convert the customers

 Customer base will increase every year

It is not mentioned about what to be done if the customers don’t accept the product or it is not
feasible to them. There should be plan B or a backup plan so that if it doesn’t work then we
should have alternative. Because of which we could achieve our desired goals.

 Customers at shopping centers, restaurants, malls are less price sensitive

These customers are less price sensitive when they find any brand, which gives them
authenticity. As it is a startup, there is a need to increase the awareness among the customers,
and has to offer a value addition to the customer

 Needs, Wants and Demands of the customers are not mentioned

As customer only wants to wash a car by not damaging it. It is not mentioned clearly about
customer needs, wants, and demands. Therefore, it is difficult to say that customer will attract
only because it is ecofriendly. Some customers will but it will not capture large number of
segments. According to me, it is niche market if we segment by considering customers who
prefer ecofriendly products or services.

 Growth of the business in this segment is assumed

One should not start the business without a proper research. Forecasting should be done.
Company should do a survey or a secondary research about customer preference so that it
will be easy to target the customer.

 Patel may not be able to give full time and it will affect the performance

As he is not having savings or investment so that to get the living expenses, he has to do a
job. So, proper strategy should be made to cope up with this type of situation
CASE II: USING EFFECTUATION TO START UP A NEW VENTURE THROUGH
INSTAGRAM

a) General Concerns with Delaney’s business idea :

 Competitor Analysis :

In a serious situation, others will offer indistinguishable items and administrations from you.
Except if you have a technique to separates yourself, it is hard to endure. Complete research;
discover which items are more sought after. Expel obsolete things. Client benefits that go
well beyond give a course to remaining in front of your rivals. Stuck in at the old-fashioned
method for way to deal with selling Offer items in noticeable commercial centers like
Amazon, eBay, and so forth. These web based business locales as of now have a current
system of purchasers so pitching and marking your item turns out to be moderately simple.
Shopping truck surrender: Shopping basket deserting is an enormous issue. Indeed, even
internet business goliaths are not invulnerable to this issue. Consider upgrading your
shopping basket, ensuring there are no bugs or a superfluously long and disappointing
structure filling process.

 Maintaining customer faithfulness:

For sure, even with the best-arranged site out there, without customer trust and endurance, the
business will without a doubt fight. Making new customers and a while later keeping up them
requires a colossal effort. One-explanation online business associations explicitly face a test
in building customer trust and devotion is the shipper and buyer don't have any colleague
with each other. Nor would they have the option to see each other. You ought to guarantee
the customer is content with the whole strategy, from mentioning on the web to conveyance.
A great deal of online retailers may be selling a comparable thing. Competing against
retailers and creators

 Delivering an Omni channel client experience:

Currently, clients can connect through multiple of touch-points. They may visit your site,
contact your specialist, leave a message on your web based life page, shop from your store, or
get in touch with you through a live talk or an informing stage. “If any business that isn't
advancing toward an Omni channel retailing procedure will probably be deserted by its
online insightful rivals."

 Distinguish the key channels:

Client assistance staff should contact clients by means of their favored channels, telephone,
email, live talk, video call, online assistance communities, or in-application informing.
Incorporate and enhance those channels, including customized messages and offering
coordinated communication with live talk or video calling.

 Nonattendance of online personality confirmation :

At the point when a guest goes to a web based business site and joins, the entry is ignorant of
the client, bar the data they entered. Regardless of whether the client data is certified or not
stays faulty. Money down (COD) buys utilizing an invalid or phony telephone numbers or
addresses can prompt tremendous income misfortunes. By utilizing various way to check the
client's data. Send a check interface when a client joins, by means of instant message or
email, to approve the client is real. With COD buys, a robotized get could even dial out to the
client, requesting that they approve the conveyance address.

b) Pros and Cons of each of the Three Ideas :

• Sell artisanal chocolates to the general public :

Pros: Instagram is About Photos: Instagram makes it very easy to post pictures and video
from your smartphone. Posts of chocolates on Instagram remain there forever as long because
the user does not remove them.

Instagram Connects You to Your Target Audience: Instagram is that the fastest growing
social network. It currently has 800 million monthly active users and over 40 billion shared
photos.

Instagram Has High Engagement Rate: Instagram also can provides a high engagement rate
to your contents by comments, photos, and shares.

The engagement rate on Instagram is 70% above Facebook. Apart from that, its follower
growth is 9% above the follower growth on Twitter (at 0.11%).
Cons: The main advantage of Instagram also can be its biggest disadvantage: it relies on
images. Meaning you would like to be very mindful of the pictures you post because only the
image which will attract followers. You show artisan chocolate pictures but cannot provide
the taste without consuming.

Not most are on Instagram: this is often one among the foremost obvious disadvantages of
Instagram; Instagram is merely an iPhone and Android app.

Limitations on Your Contents: On Instagram, you cannot further explain the merchandise
in your post. You are only allowed to upload a video that is 60 seconds long (note that this
was recently changed to 60 minutes). Additionally, the perfect length of captions on
Instagram is 138-150 characters. For advertisements, the perfect length of the caption is 125
Characters.

• Purchase surplus clothing from the baby products store and found out as a reduction
reseller :

Pros: Instagram Photos of the merchandise may give nostalgic feelings and should attract the
customer to shop for this product for his or her children. Instagram Connects You to Your
audience Instagram is that the fastest growing social network. Instagram Has High
Engagement Rate: Instagram also can provides a high engagement rate to your contents by
comments, photos, and shares.The engagement rate on Instagram is 70% above Facebook.
apart from that, its follower growth is 9% above the follower growth on Twitter (at 0.11%).

Cons: The availability of baby product manufacturer might be challenging on obtain the
massive stock that to on discount basis might need infrastructure counting on the model of
business is taken into account . Biggest disadvantage it relies on images. meaning you would
like to be very mindful of the pictures you post because only the image which will attract
followers. you'll show baby product utilized by the youngsters , and the way it are often ,
helpful but cannot provide the demo without purchasing.

Not most are on Instagram: this is often one among the foremost obvious disadvantages of
Instagram; Instagram is merely an iPhone and Android app.

Limitations on Your Contents: On Instagram, you can't further explain the merchandise in
your post. you're only allowed to upload a video that's 60 seconds long (note that this was
recently changed to 60 minutes). additionally , the perfect length of captions on Instagram is
138-150 characters. For advertisements, the perfect length of the caption is 125 Characters.
• Become a web retail specialist in children’s dolls, selling her mother’s products :

Pros: Retailers were prepared to sell excess stock at a reduction, offered a chance to select up
an outsized stock of dolls at bargain-basement prices. She also remembered reading about
numerous cheap craft products that were made in developing countries, which could well
include dolls.

Instagram Connects You to Your Target Audience: Instagram is that the fastest growing
social network. It currently has 800 million monthly active users and over 40 billion shared
photos.

Instagram Has High Engagement Rate: Instagram also can provides a high engagement rate
to your contents by comments, photos, and shares.

Cons: Stocking Infrastructure have to be build alongside it the demand analysis for the
merchandise because the product were overstocked means there could be very less or only
few buyers for it.

Markup, discount, and margin must be estimated very accurately in order that will not
become losses

c) Causal and Effectual Logic :

The effectuation process is that the inversion of causal rationality, it is enactive and exceptive
as against the reactive and adaptive nature of causal, and rationality, the effectuation method
does not begin with a selected goal, very similar to a cook WHO makes a meal based on what
he has within the room and his own cookery skills. A causal method is once the venture is
visualized from the beginning and every one efforts are directed at achieving the pre-
envisioned state. Very similar to a cook WHO decides on the menu 1st before looking what
he has within the room.

Five principles of effectuation :

Bird in hand Principle : The entire corporate is one big candy shop! Entrepreneurs have
been standing outside of corporates for years, feeling jealous. Envious pretty much all the
methods accessible inside a corporate setting! Pause for a minute to envision what one could
make if just you had these methods accessible.

 How could you even assess all the means?

 Simple questions to ask yourself:
 Who are we?
 What are our values?
 What are our beliefs?

Affordable loss principle : Almost all corporates, the people we request to create and
compose new business development plans are the ones with the greatest ideas. These
outcomes in corporate formats that have been planned with the extreme consideration.

Most important questions to be answer:

  What will you create exactly?
 How much will it cost?

Crazy Quilt Principle : The crazy quilt symbolizes a collaboration between partners. Every
partner is represented as a unique piece of cloth. These pieces of cloth are vowed into a quilt
by a thread symbolizing the pre-commitment of each partner offers to one another. Two very
important reasons for businessperson not to pursue an opportunity in an unpredictable
market, is either not having the stability or not willing to invest them because they do not
want to take the risks and uncertainties that are perceived to come with the package.

Lemonade Principle: Leverage contingencies: In an unfamiliar and fast changing market,

learning quicker than your rival is critical. When pushing ahead under vulnerability, you will
run over significant number amazements. Some positive, frequently wrongly saw as karma,
and some negative with even the possibility to murder you are completely undertaking..

Pilot in the Plane Principle : Try not to anticipate, co-make: Albert Einstein characterized
INSANITY as "Doing likewise again and again and anticipating various outcomes". We have
to change from travelers in a corporate plane, in which others are answerable for our solace
and future, to pilots assuming responsibility and co-making what is to come. Effectuates, the
pilots in the plane, apply all the information that is given to you through this site and the
administrations we offer you through Effectuation-Intelligence.

d) If I was Alyssa Delane I would go with the maximum reach for the client using
Instagram’s various features which will enhance my account and make aware to the
maximum people which will be the potential client for me.

Some of the strategies I would like to implement are as follows :

 Creativity

Focus on the value proposition you provide, and not only the products you sell. On
Instagram, it is essential to add value to your customers and look pretty while you do it.
There are lots of different formats you can take advantage of to do this on Instagram - it’s
possible to upload photos, short videos (similar to GIFs, called Boomerangs) and videos up to
one minute in length.

 Instagram Stories
Instagram Stories have a slideshow group and are just live for 24hrs.These are a portion of
the advantages of utilizing Instagram Stories for brands: Stories are outwardly shown at the
highest point of supporter courses of events simply under the Instagram logo. Labeling
different records, for example @Instagram in Stories is perfect for partners and promoting.

 Utilization of IGTV

Instagram IGTV is a component, which permits clients to transfer long-frame recordings to

the stage. IGTV recordings are longer, giving you many chances to make fun, new and
drawing in video content for your or your customer’s image. Here is a portion of the
advantages of utilizing Instagram Stories for brands: IGTV recordings can be from 60
seconds as long as an hour long, leaving a lot of room for innovativeness. The
"Accompanying" tab in IGTV permits your fans simple access to your new substance.
Adherents will likewise be alarmed you post something new.

 Make a winning profile

As an organization, I would likely do a mess of things and offer much more arrangements.
Try not to be excessively got up to speed in fitting the entirety of that in 150 characters.
Concentrate on your most significant USP or your next enormous thing - be it an occasion,
advancement, or item dispatch.

 Take them behind-the-scenes

Clients have a characteristic interest about where their items originate from, and you can
utilize Instagram to show them their entire lifecycle. This is particularly important for
organizations that sell earth amicable or Fair-exchange items. Source pictures to show how
items are made - from the base material, creation, and conveyance. On the off chance that
nothing rings a bell, you can share something that everybody has - draws, notes and filled
whiteboards or boards. Each business has conceptualized thoughts, it is dependent upon you
to take a pretty picture and transfer it to Instagram. You may find that it is ideal to evaluate
diverse post types until you hit gold with the one that will connect with the crowd.

 Amplify the scope with #hashtags

Use hashtags to grow your compass. These can be crusade explicit or general - all that is
significant is that they are applicable. Try to likewise set up your fundamental organization
hashtag (#yourbrandname), and use it sparingly across Instagram (Twitter and LinkedIn are
acceptable as well). This makes it simpler for individuals to discover content identified with
you just as your fundamental record.

 Team up and @mention others:

Instagram is one of the most grounded internet based life channels for featuring teammates
and sharing client examples of overcoming adversity. Regardless of whether you don't
formally join forces with a non-benefit association, you can provide for a noble cause or do a
pledge drive two or three times each year. It's all acceptable as long as the reason lines up
with your image esteems and mission. Consider that not every person is observing hashtags
via web-based networking media, so labeling a record is typically a superior decision on the
off chance that you need to get took note.

Another system includes the utilization of 'yell outs'. An unpaid yell out is the point at which
you join forces with another brand that has generally indistinguishable number of devotees
from you to elevate each other to your crowds and you both profit by expanded presentation.

 Analyze your success and build on it:

Without making a stride back and breaking down what worked and didn't, advertising turns
into a speculating game. Truly, you can peruse all the articles on the planet about the
accepted procedures and distributing times; however you will just discover what works for
your customers through testing and estimating results.

Online life the board instruments can help, however. You can utilize them not exclusively to
plan your Instagram crusades ahead of time yet additionally utilize online networking
investigation to quantify their prosperity. Make a point to normally quantify your devotee
check, commitment and snaps, all to refine and improve your methodology. Our online life
reports can assist you with following your exhibition for Instagram and all other key web
based life systems.
 CASE III: LIU BAI: A CHINESE SUCCESSOR’S DILEMMA

a) Impact of Gender having on Family Business Succession :

As we can see Liu Bai’s family is handled by only one person i.e.Hong

Hong possess following characteristics of leadership:

LEADERSHIP

EXTREMELY
AUTOCRATIC MISTRUSTFULL
CONTROLLING

Because of these characteristics, Hong and Bai were having conflict and Bai went to London.

If we observe properly, women in that family also not encouraged and his mother is having
pressure of his father.

In addition, Bai’s three younger sisters were completely mistreated, ignored, and spoiled.

If Bai’s sister could have treated well, Hong will not approach again Bai and his sisters could
have handled business.

After seeing this scenario of Bai’s family, it is clear that there is no participation from any
family member, which causes lack of new ideas, which result in troubling the business.
Also, Hong never told about handing over of company to the Bai, which clearly shows that he
still wants to be dominating and he is extremely manipulative.

Yi, his mother also did not stand to Bai’s side, which shows she is not a strong woman, and
clearly understood that how Hong is dominating.

Due to Hog’s behavior, company is not doing well and he should change his attitude and
behavior. He should not be gender biased as now a days most of the companies are following
50-50 % criteria for male and female

For example, Kellogg’s is having 57% women. It shows how well structured a company is.
Moreover, it is giving an opportunity to every skilled employee.

This is the impact of gender on success of family business.

b) Limits of Rational Business Thinking in Highly Emotional Family Situations :

 Rational thinking is about how you think out of the box, to think and perform
critically, to produce good quality thoughts to arrive at certain rational decisions.
 In case of highly emotional family situations, there are limits to this type of behavior.
 Family is not about connecting through certain members, money, house but also, there
is an emotional connect between each and every member.
 So it is much needed that there should be balance between emotional and rational
behavior and one should know how to behave in a certain situation whether rationally
or emotionally.
 Looking at above case study, we get to know that Hong has treated his family very
rationally rather he controlled every member, manipulate the things with them and it
results into conflicts among them.
 It also reflects on their business.
 E.g. If you are celebrating a birthday of someone in the family or there is marriage
function, of course it is needed to look at financials but if you mentioned it every time
and forces everyone to certain things according to you, it results into start of conflicts
among the family members.
 Business needs thinking that is more rational but family situations need both rational
and emotional thinking.
c) Family Business’s Life Cycle Influence and Motivation in Succession Decisions and
Actions :

Family Business Cycle consists of 3 stages :

Creation

When it is an early stage of the business, the founder wants everyone to be part of his family,
because his challenge is personal, emotional, and economic.

In early stage of the business, structure of the business is unorganized and there are certain
problems like capital arrangement.

So, an entrepreneur should take participation of every employee and try to get maximum out
of them by giving each and every employee a particular task according to their capability.

If you get them a right opportunity, they will get motivated and will perform well.

Expansion

In this stage, business is organized and on a growth stage. Therefore, it is important to

motivate people by introducing schemes or incentive structure.

It will improve their actions, which will result in successful decisions.

This will result in increasing the market share of the company.

Also, it is important to build team spirit in the team and also make the ambience good to
create good environment for work.

It is also important to take care of third party organizations who are responsible for the
growth of the company.

Consolidation-Professionalization
It is the stage where business is in the maturity stage where business is stable. It is difficult to
motivate in this stage as market share is high and only task is to maintain it. However, a good
businessperson should look to diversify the business now and make their employee to work
strategically to buy out the competition and for this various competitions are held, promotions
are declared which helps them to take actions and it will lead to successful decisions.

Decisions regarding the company and assets must be taken in professional manner by
evaluating pros and cons.

d) Interdependencies and Interrelationships of the Succession Decision that Bai has to

make :

As until date, Hong, the father of Bai was handling the company, so if he wants to join the
company, he should take the advantage of his father’s experience.

He is also having below three qualities:

 Talent
 Hard Work
 Connections in Asia

If he wants to join the company, he should be clear that he would be the owner after his
father. Moreover, considering past conflicts, he should make an agreement with his father.

An agreement should contain the certain norms about decisions making authority and what
type of decisions he can make.

As he already got promotion, well payment, and stable life, he has to make a call of being
dependent on his father as his father is not willing to make him owner of the company.

Also while making decisions , he should not forget the treatment he has gotten ten years
earlier like:

 Underpaid
 Exploited
 Irrational
 Extreme Criticism
Also he has to take three phases of his life:

 Past Experience with Hong

 Current Situation of Job
 Future Prospects by Considering or Not Considering the proposal of Hong

By looking at above factors and considering interdependence and interrelationships, Bai will
make decision, which will be more feasible for his personal as well as professional life.

CASE IV: MEMAKSA STEEL

a) Memaksa Steel a manufacturer of steel product in Indonesia has started innovation of

Process #887. Process #887 is a new metal finishing process, which increases the wear time
of steel product subjected to intense abrasion by approximately 60%.

Key Areas which make process #887 successful are as follows :

Process Time – Average time for new saw blade would cut for nearly 3 hours and 12
minutes where current blade had a life expectancy only of 2 hours and 5 minutes. Also
changing saw blades was roughly an eighteen minute process for sawmill operator.

Easy to reach – Current saw blades are sold to the industry outfitters who in turn resold to
the sawmills. So now company will direct sold to sawmills so that it reduce delivery time.

Benefits by launching this product :

Great reach to the market – As memaksa steel is the first company, which comes up with
new idea, which reduces the process time of cutting whether it is wood or steel. So that it will
benefit the company to get more customers

Profit – Saw blades made by process #887 could be sold for a price of 35% more than
current saw blade. So that company can earn good profit by launching this product.

Increase wear time – Process #887 increase the wear time of steel product by approximately
60%. So that help companies who take saw blades for cutting can increase work potential for
a day.

b) Distribution Channel of Memaksa :

Manufacturer
 Regional offices and other divisions

Branch Sales offices Stockyards Consignment Sales Agencies

Retailers
Manufacturer - Makes product available to the
District all Dealers
level Rural Dealers
regional offices as per potential of market
under regional office.

Regional office and other divisions - Break the bulk into smaller packages and makes
available at Branch sales office, stockyards and consignment sales agencies.

Branch sales offices - Provide the products to all retailers in given area.

Stockyards- Dealers access the products from stockyard and then supply to the customer.

Consignment sales agencies - Keep track of rural dealer and supply products to the rural
dealers.

Retailers - Products and services are promoted and merchandised by the retailer. Retailer
give the final selling price to the product.

District level dealer – Makes product available for backward location.

c) Cost of a new product for a distributor and also for other channel partner share of
the domestic saw blade market :

In general distributor received a 20% discount while outfitters received 15% discount. At the
same time memaksa owned a 20%.

The costs to manufacture steel saw blades using process #887 was 12% greater than the
current process. The sales force reported that saw blades made of this new alloy could be sold
for a price of 35% more than current saw blades.

Example : Suppose current saw blade cost is Rs.150 for manufacturer. Manufacturer giving it
to distributor for Rs. 500 and also distributor is receiving 20% discount and if distributor is
supplying to outfitters in Rs. 750 and outfitters receiving 15% discount. In all this process
company is receiving 20% shares.

But steel saw blades using process #887 is bit expensive i,e 12% greater than current process.
So now by the report this new product which is made by process #887 can be sold by 35%
more cost than the current cost of saw blade.

Now, Manufacturer cost = 168 (profit increased by 157 ) // Previous profit 350, by process
#887 profit is 507 , Distributor cost = 675 (profit increased by 87),

Outfitter cost = 1012

So, As the cost is 35% more than current saw blades. But the cost of manufacturing is 12%
more than the current process so that manufacturer cost is increase by 18 than previous cost
of manufacturing. But it will 35% more for the distributor and outfitter. So that cost of
product for distributor is increase by 175 and cost of product for outfitter is increase by 262
but at the same time previous distributor was getting profit of 250 from outfitter but now he is
getting profit of 337. So that it’s a innovative idea which has introduced by memaksa steel
which help to reduce process time and also at the same time get good profit to the
manufacturer, distributor and outfitter too.

d) Channel management helps in developing a program for selling and servicing customers
within a specific channel. The aim is to streamline communication between a business and
the customer. For this company need to decide distribution channel but what if channel does
not want the product. So what management can do is given bellow :

Following are the terms that management can do to reach directly to the customer.

Right transportation partners: select partner with strength that align with business needs and
customer requirement. Also business should have unique needs such as special trailers, trucks
or delivery requirements.

Logistics planning an integral part of the production process: Logistic is often figured out
after the order is manufactured, but it should be the part of quoting process if you want to
keep your customer happy. Not only does that guarantee an accurate available-to-promise
commitment, but it can also ensure proper shipment planning as well as lead to a potential
cost savings.

Back-end and front-end deliveries: Logistics generally involves the delivery of goods from
organization, organization should consider the delivery of raw material to minimize costs and
improve delivery time.

Online order and delivery: Online order taking and delivering product to the customer in
stipulated time will help to company to build trust between end customers.

CASE V: GHARPAR: THE LEAN BEAUTY START-UP THE TWIN CITIES

EXPANSION

a) More than two years after the launch of GP in Lahore, the four partners brought GP’s
women’s services to the capital city of Islamabad. To effectively manage the on-the-ground
operations in this region, Mehvish shifted to the company’s new headquarters in Sector F-10
in Islamabad in order to personally oversee the company’s first major geographical
expansion. Since the inception of the company, have the co-founders consistently have not
carried out hypothesis driven decision making. As observed from the case the launch of city
was done in Islamabad based on an assumption of customer demand for which they had taken
social media inquiries and interest from the city as a proxy. However, now they believe that
more market research that is specific was required, which would have allowed us to reduce
our logistical and operational challenges. As it stood, they replicated the Lahore blueprint
onto Islamabad by launching their entire slate of beauty services for women and opening up
the entire city too quickly. In retrospect, we might have ‘phased out’ their launch, by
targeting specific services to specific localities where there was a greater demand for them. If
the decision carried out were made by using hypothesis driven, they might have received
greater insight for their geographical expansion of the business. Before launch if they made
hypothesis based research study it might have helped them to observe the demographics,
psychographic as well as behavioral patterns of the cities. By finding the correlation between
the drivers and the region, the GP might have got exact geographical region to launch their
product and services. Accepting and rejecting the hypothesis based on their assumption and
research would help them to manage the cost incurred and to launch in the phases, which
would make them successful with only 4 employees by tracking accurate data and extracting
the points from the data which they have gathered from the online survey.
Even from the start where they have to recruit the number of employees they have
generalized the assumption based on the situation of unemployment in the region which have
not served the purpose of the providing sufficient service in the Islamabad.

Secondly, while considering Islamabad and Rawalpindi as one city as many people do
because they are geographically widespread enough to be considered distinct markets. It was
done on the word of mouth and not on research based which have made delay of six months
in the launch that should been taken from the beginning.

If they have consider or opt for going through hypothesis and research method thy might
have got results and might not have lost six months on getting delayed in expansion plan.

b) If I was the Co-founder member I would have followed the certain steps to make sure

Stage 1: Concept and Research

It looks everyone has (what they consider) a million-dollar plan, however creating a thought
into reality is incredibly rare. Rarer still is that the “great idea” that not solely gets off the
bottom, however additionally finds its excellent audienceA huge factor in a start-up’s success
comes before the company itself ever launches. Before you do anything else, carefully
research your target audience and you are offering is potential product-market fit; Do people
really need your product or service? What problem does your offering solve? Is an existing
company out there, selling your idea already? Answering these questions entails a lot of
research into your potential competition and industry, but it also takes talking to hypothetical
customers about how your offering might help them. Research in hand, create a business plan
and mission statement. Set goals for your development over the coming years.

Stage 2: Commitment

Here is where you move from a concept to a company, putting your research into practice.
Create a prototype model, set a process, and start building a platform and team. Secure
funding. Continue to refine your business model. Work towards a minimum viable product;
begin initial marketing by spreading up some word of mouth, and then make launch.

Stage 3: Traction

Traction is typically the first year of a start-up. This is the stage where you begin to get the
word out about your product and gain your first customers. Here you find out whether or not
your company is truly viable. “Before companies start to grow, many entrepreneurs mistake
traction for growth. Both come at various stages in the lifecycle of the startup and play very
different roles,

Stage 4: Refinement

In the refinement stage, typically year 2, you are receiving—and soliciting—feedback from
early adopters, then using that feedback to continue refining your product or service. How
can you improve your offering? What about your customer experience? Concentrate on
expanding the aspects of your product that are most beneficial to customers. Your early
interactions with customers go a long way toward establishing your credibility and building
customer trust. Show that you are considering customers’ concerns as you continue to
develop your offering. Refinement also means filtering your process, making it more efficient
towards maximum output. How can you streamline your process? Is product performance
matching your projections, and if not, where is it being derail? Test your strategies and track
conversion rates, social media analytics, and any other data you can to inform your decisions.

Stage 5: Scaling

Scaling, or growing—further growing your customer base, your product offerings and value
propositions, and your company itself. In this stage, which can be start at year 2 to 3 and last
for years. Continue optimizing your marketing strategies to efficiently pull in customers and
increase your conversion rates. Build out your infrastructure to support your scaling
workload. For the smoothest scaling up, build scaling mechanisms into your business plan
from the beginning. How and when will you hire more employees? How will you expand
your marketing? What about growing your infrastructure and technological setup? Keep in
mind, however, that you will need to stay agile as you grow—the process can be
unpredictable. Like refinement, scaling also requires more awareness about your process and
the workflow. As a founder, this likely means delegating any non-essential tasks that you are
willing to performing.

Stage 6: Becoming Established

Now the company is no longer a start-up, but an established organization. In this stage, you
may see considerable growth, although not at the dramatic rate you did while scaling up.
Focus on maximizing customer retention and loyalty, testing and refining your marketing
strategies, and further developing your strengths.
c) Launching a new business whether or not it is a tech start-up, a little business, or AN
initiative among a large corporation—has always been a haphazard proposition. In step with
the traditional formula, you write a business set up, make a team, introduce a proposal, pitch
it to investors, and begin commercialism as hard as you can. In addition, somewhere in this
series of events, you will probably get a fatal setback. Recently an important countervailing
force concept has emerged; in which one make the process of can start a company with less
risk. The methodology called the “lean start-up,” and it favors experimentation overelaborate
planning, customer feedback over intuition, and iterative design over traditional “big design
up front” development. Although this methodology is just a few years old, its concepts—such
as “minimum viable product” and “pivoting”—have quickly uprooted in the start-up world,
and business schools have started adapting their curricula to teach them with this methods.

The Benefits of Using Lean Canvas. There are various benefits to using the Lean Canvas
model to plan a business idea, both on its own merits and when compared with the Business
Model Canvas. Firstly, the Lean Canvas is design for entrepreneurs. Like different versions
of the Business Model Canvas that have been considered for different niches, it has been
mapped out with entrepreneurs in mindset. The examples used for the Business Model
Canvas when it was release were all existing and successful businesses, making it difficult to
apply to a new business idea.

With the Lean Canvas, entrepreneurs can identify and focus on different problems and
solutions. It is designed to work for a startup mindset and help entrepreneurs build on their
ideas. Having the unfair advantage section as a part of the canvas permits entrepreneurs to
confirm they need one thing that may facilitate them stand out.Not only will they have their
unique value proposition, but also they will identify the one thing that no other brand will be
able to do in exactly the same way that they do it. The lean design and the limited boxes of
the Canvas are very easy to grasp and understand, and they make entrepreneurs to think
carefully. There is only so much space to use, which means it is essential to boil down key
points into the most important information. It recognizes that the business plan is for the
entrepreneur and is rarely shown to other people. It does not need to be extremely detailed
when the point is to get to the key things that matter when creating a business plan.
d) Growing beyond its boundaries is each native company’s dream. whereas few of them,
like ola, OYO, Zomato, square measure making a mark for themselves and benchmark for his
or her competitors within the international market, some have even did not go beyond their
home town.

A lot of startups fail to fly outside their home market as a result of they lack a transparent
strategy, a vision and a lot of significantly in depth plan of action along with plan B (in case
if the primary one fails). Few questions entrepreneurs should ask themselves while expanding
their brand :

 Do I have Hold in the Domestic Market?

 What is the Right Market to Target?
 Do I know My Target Group?
 What is the Cost of Logistics & International?

For Gharpar they have understood the various traits of their client, they got the zest of
customer acquisitions and found out that the new attractive market in new geographical
region of twin cities, so yes its right time for them to go for the opportunity of geographical
expansion. By doing this they will increase the business success rate. Global expansion is a
key to success, as it will provide organization with a bigger market and ideal consumers. In
new market, space companies often find their potential consumers who are keen interested in
their product offerings. Therefore, when a company becomes global it increases its success
rate phenomenally. This will also provide the first mover benefits and the core competency
building time for them as advantage to experiment in the marker. Hence therefore they should
go for geographical expansion of the business as the strategic move to cater new market and
make more revenue out of it.