 Roll no- TM1817288

 Name of institute- Balaji Institute of Telecom And Management

 Batch- 2018-20

 Specialization- Marketing

 Semester- 4th

 Subject Name – Entrepreneurship

 Submitted by- Anshit Nagpal

 Submitted on date- 17th April 2020

 Total no of pages written- 18 pages

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 Case 1

Answer (a)

 EcoWash” — an all-in-one system that could be used to clean both the exterior and interior of
any vehicle. Unlike most car washes, where the water used to wash the vehicle was discharged
as waste water, the 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.
 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.

The problems which was being faced by the Chao in her idea are:

 She has to decide about the financials that from where she will get the funding on her idea.
 She also has to know from where she will raise the capital and what are the ways she is
thinking to raise the capital
 She also has to decide what are the channels she should be using to promote her idea.
 What are the target audience she should be targeting.

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Answer (b)

There are 5 principles for the Lean Startup Methodology which are as follows:

 Entrepreneur Are Everywhere: this principle explains that the entrepreneur are everywhere
as there are many people who are operating from a small place but serving a very large
audience.
 Entrepreneurship is management: A start up is not only an institution but also a management
as there are lot of manpower required and financial management has to be done which will help
in making our business to prosper and we also have to do lot of marketing activity which will
help to recognize about our business or idea among the customers. We also have to check about
our marketing activity which make our business to prosper.
 Validated Learning: A startup is not only an idea but a permutation and combination of a lot
many more ideas which will help in executing an idea in this there are downfalls which makes
our idea as a fail but we have to learn about what are changes we have to do in different
situations which will help our business idea to prosper.
 Innovation Accounting: To improve entrepreneurial outcomes, and to hold entrepreneurs
accountable, we need to focus on the boring stuff: how to measure progress, how to setup
milestones, how to prioritize work. This requires a new kind of accounting, specific to startups.
 BUILD-MEASURE-LEARN:

The fundamental activity of a startup is to turn ideas into products, measure how customers respond,
and then learn whether to pivot or persevere. All successful startup processes should be geared to
accelerate that feedback loop.

Answer (c)

There are 5 principles for the Lean Startup Methodology which are as follows:

 Entrepreneur is everywhere: As in this case Chao is sharing a table which Mr. Patel who
wants to start a new business by his own but he is not getting the idea but when he know about
the invention made by Chao he was extremely amazed which is getting him a new start about
the new business.
 Entrepreneur is a management: Entrepreneur is a management as Chao and Mr. Patel has to
decide that from where they will get the funds and what are the ways from where they have to
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 raise the capital and also they have to decide that how they have to do the marketing of their
ideas and how many workers they need for this job etc.
 Validated Learning: We also have to validate that what are the potential problems which will
tend to arise in the course of the business and we have to sort it out and have the flexibility to
learn about what are the problems which were a rised and also have to take the potential
measures that the problems will not rise again.
 Innovation Accounting: means they also have to know what are potential upgradations or
innovations they have to do in their business idea which will help in maintaining their idea for a
large period of time So they will firstly serve to the customers till the time they will become
stable and then they will start to sell their own car wash equipment to the entrepreneur as a
product.
 BUILD-MEASURE-LEARN: As they have developed an idea and they have tested their
product in the field and in labs for the proper picture that what is the main function of the
service and in how much time the equipment needs maintenance and learn how can the
breakdowns will be reduced which will help them to incur low cost.

Answer (d)

Lean Canvas model for each business segment are as follows:-

Car Dealerships:

Car dealers We have to locate the It will help in There is an unfair Business
dealers in the close advantage that the
require frequent making our customers are the
proximity to each idea is already
washes which other as it would be vehicles look at its business segments
prepared by his friend
would made easy to fulfil the best as they are and they don’t have to as they want their
difficult to demand of large providing car invest more on the vehicle to be neat
provide car wash audience washes on the employees. and clean
service every wheels.
week.
Customers respond can
There is the direct
be one reason.
channels to the
Profits generated by the customers
customers.
There are existing Ecowash = car wash They are all business
alternatives awe can The number of vehicles with an eco-friendly customers and serving
also target to the end served. thought. to b to b customers.
consumers.

Expenses: Salaries, Supplies and maintenance Large number of customers for frequent washes.

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For Fleet Vehicles:

Fleet vehicles areas Do the tie ups with It will help in There is an unfair Business
car rental locations, fleet vehicle locations advantage that the
making our customers are the
and carry on work with idea is already
electric utility vehicles look at its business segments
dealers in BtoB prepared by his friend
vehicles, cable as they want their
segment. best as they are and they don’t have to
company vans need
providing car invest more on the vehicle to be neat
some yearly washes employees.
washes on the and clean
which will help to
generate less profits wheels.
Customers respond can
There is the direct
be one reason.
channels to the
Profits generated by the customers
customers.
There are existing Ecowash = car wash They are all business
alternatives as we can The number of vehicles with an eco-friendly customers and serving
also target to the end served. thought. to b to b customers.
consumers.

Expenses: Salaries, Supplies and maintenance Large number of customers for frequent washes.

For Valets:

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 They have to pay These people are less It will help in There is an unfair Business
some amount of sensitive about the advantage that the
making our customers are the
cost incurred in the car idea is already
money to the vehicles look at its business segments
wash services so they prepared by his friend
property holder to as they want their
can easily pay high best as they are and they don’t have to
carry on their amounts for high providing car invest more on the vehicle to be neat
business in the quality car wash . employees.
washes on the and clean
boundaries of their
property. Which will wheels.
increase the cost of Customers respond can
There is the direct
the services be one reason.
channels to the
Profits generated by the customers
customers.
There are existing Ecowash = car wash They are all business
alternatives as we can The number of vehicles with an eco-friendly customers and serving
also target to the end served. thought. to b to b customers.
consumers.

Expenses: Salaries, Supplies and maintenance Large number of customers for frequent washes.

For Other Aspiring Entrepreneurs:

To offer a product to Firstly we will offer car It will help in There is an unfair Business
other entrepreneur wash services to the advantage that the
making our customers are the
customers after idea is already
is more costly as it vehicles look at its business segments
stabilization we can prepared by his friend
requires a lot of as they want their
sell our ecowash unit best as they are and they don’t have to
employees to make to other entrepreneur providing car invest more on the vehicle to be neat
the unit and then as a product. employees.
washes on the and clean
we also need the
supply chain. wheels.
Customers respond can
There is the direct
be one reason.
channels to the
Profits generated by the customers
customers.
There are existing Ecowash = car wash They are all business
alternatives as we can The number of vehicles with an eco-friendly customers and serving
also target to the end served. thought. to b to b customers.
consumers.

Expenses: Salaries, Supplies and maintenance Large number of customers for frequent washes.

Answer (e)

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The key assumptions in the Eco Wash business model are as follows :-

 What wages to be offered to the employees, car wash workers are to be paid $10 for an hour,
sales representatives have to be paid $11 for an hour and managers are to be paid $20 for an
hour.
 260 days can be the working days for the company in an year which consider only 5 days
working and weekends are holidays.
 The supplies of car washes and maintenance of equipment will cost $3 per wash
 Each wash takes approximately 20 minutes
 We will charge $30 per wash
 We will work for 8 hours a day where we will spend about 2 hours a day or administrative
work while the remaining 6 hours will be spent in doing the car washes, which will help us
generating 15k of revenue a month.
 We don’t have to pay any rent as we have installed all the equipment in our truck so the
washing takes place in the truck itself.

Case 2

Answer (a)

The general concerns with the Delaney’s business idea is as follows:-

 She is having an idea to start a new business on online platform as she is having a large number
of followers which will help her in doing the marketing for her new website.
 This business can work for her as she don’t have to invest a large in amount of money in
purchasing the goods.
 Her mother is making baby dolls which can be sold on online platform, she has a friend which
will help her in supplying handmade chocolates through which she don’t have to invest much
on the supply and her mother is also dealing in baby clothes which can also help her to sell
those clothes on online platform.
 Instagram is a very booming platform now a-days which help her to attract large number of
customers which will help in increasing the profitability of the market.
 She can also do marketing by providing a catalogue of the products which she wanted to give
to her customers.
 She can also give the links of her personal websites which help her customers to know about
the website and also know about the products in which she is dealing.
 She also has to invest some of the capital for her promotion of the site every year which will
help their customers to know about the website.

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  There is a positive point in her online business as she don’t have to invest much on the
warehousing facility and for the suppliers as she is operating in online platform and she has her
batch mates and family working in the business.
This is the overall general concern about the business which will help her to organise her idea
accordingly.

Answer (b)

Sell artisanal chocolates to the general public

Pros
 help in providing the hygienic and good quality handmade chocolates to the customers.

 Also helps in providing the customers a large variety of quality chocolates in an

effective prizes.

Cons

 People normally don’t buy chocolates from the online platform as it human nature that
they prefer more to buy chocolates from the general merchant shops.

 As chocolates are perishable so due to which the reach for the business is also less and
if they have to increase the cost incurred is more.

Purchase surplus clothing from the baby products store and set up as a discount reseller, making a
margin on each item sold

Pros
 help in providing profit margins to the products which are being sold as charity.

 Also helps in providing the customers a large variety of quality clothes in an effective
prizes.

Cons

 People prefer buying clothes for the children or babies from the well established online
platforms as the customers are more concerned about their new bourn.

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  There are many other online competitors which are dealing in baby products. So it can
be difficult for her to establish her market platform.

Become an online retail specialist in children’s dolls, selling her mother’s products
together with others sourced from elsewhere

Pros
 Help in providing profit margins to the products which are being sold as charity.

 Also helps in providing the customers a large variety of quality baby dolls in an
effective prizes.

Cons

 People prefer buying dolls and toys for the children or babies from the well-established
online platforms as the customers are more concerned about their new bourn.

 There are many other online competitors which are dealing in baby products. So it can
be difficult for her to establish her market platform.

Answer (c)

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Effectuation Logic have 5 principles which are as follows:-

 Bird in Hand Principle : It is so opposite to what most working for a corporate feel and think.
If you fully grasp the full potential of this principle, you will start to see that a corporate might
well be the best place to be as an entrepreneur because in this principle we onlt talk about the in
which of the things we are going to dealing, what is our idea and how we have to execute it,
how much we knw about our idea etc.

This principles consist of some questions like:

who are we?
what do we know?
who do we know?
what do I have?

 Affordable Loss Principle: In most corporates, the people we ask to develop and write new
business development plans are the ones with the greatest ideas. This results in corporate
templates that have been designed with the utmost care.

Most important questions to be answered:

What will you create EXACTLY?
What will it cost?
When will we break-even?

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 What will the ROI be?
How about EBIT?
What revenues do you expect in the upcoming five years?

 Crazy Quilt Principle: The crazy quilt symbolizes a collaboration between partners. Every
partner is represented as a unique peace of cloth. These pieces of cloth are sewed into a quilt by
a thread symbolizing the pre-commitment each partner offers one another.

Two of the most important reasons for corporates not to pursue an opportunity in an
unpredictable market is either not having the means or not willing to invest them because they
don’t want to take the risks and uncertainties that are perceived to come with the package.

Entrepreneurs turn to collaboration for solutions, which is described by this crazy quilt
principle. Looking for quilting partners in your network offers you launching customers as well
as partners that contribute means to limit investments and offer experience with the aspects that
might make the next step less unpredictable and uncertain. In other words, the crazy quilt
principle offers you an approach to further improve and build value propositions while limiting
the downside of the risk involved. This eventually leads to an affordable next step with
minimal uncertainty.

 Lemonade Principle: In an unfamiliar and rapidly changing market, learning faster than your
competitor is key. When moving forward under uncertainty, you will come across quite a few
surprises. Some positive, often wrongly perceived as luck, and some negative with even the
potential to kill your entire project. In our opinion, you should never kill a project. If there is a
lemon that convinces you to do so, slice the lemon and juice it. Study the juice and understand
what the lemon is trying to teach you. It should offer you directions to change course and not
simply abandon ship.

Accountability is a good thing because it makes us persevere, it makes us strive to complete

tasks but it also keeps us from adapting ideas that are less than brilliant. We have passed the
tipping point of accountability. We are too much focused on achieving the short term results
and financial incentives and that has killed adaptability and learning. We have to rethink the
balance between accountability and learning in most corporates.

 Pilot In The Plane Principle: Doing the same thing over and over again and expecting
different results”. If we keep applying causal linear thinking in situations where the future can’t
be predicted, we will never become successful. We need to understand that the world has
changed. We can’t keep up with the speed of change if we don’t change our approach and
mindset.

We need to transform from passengers in a corporate plane, in which others are responsible for
our comfort and future, to pilots taking charge and co-creating the future. Effectuators, the
pilots in the plane, apply all the knowledge that is handed to you through this website and the
services we offer you through Effectuation-Intelligence.

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 Answer (d)

If I were Alyssa Delaney, I will go on with the idea for chocolate business as we have no other
investments for the labour and the supply chain we can only accept orders through our online platform
and forward it to my friend who was dealing the chocolate business. As the chocolate business has
further benefits which are as follows :
 Firstly, in the chocolate business we don’t have any type of external costs as we don’t have to
invest in labours, suppliers, warehouse etc which will increase the costs of the product.
 Secondly we will incur the cost of the website and the cost for marketing of the website which I
was making.
 The customers will be getting high quality handmade chocolates which will help in increasing
in customer base.
 We are providing our customers, large variety of chocolates in a very affordable prizes as there
is not much cost of production which will help to increase the market share of the company.
 It also have high profit margins as compared to the other options.

The above are the reasons that the idea of the chocolate business is a good option to start a
business.

Case 3

Answer (a)

 The world has embraced the domination of the patriarchal society since ancient times. All the
fields, sector, department, roles, posts, business has been bias towards the male leadership.
Gender picking has always been a tradition and it can be traced long back in history were the
son of a king are chosen to be the heir of the kingdom without giving a thought to the daughter
even if the son is unworthy, uninterested he would be given away the responsibility.
 In the current scenario the result of this gender biasness has excluded women from the
management of those businesses unless there were no other family member that could be
potential successors. Also family owned business of a country, contribute to the economy in a
big way hence they are important. So it is also important that the one who is running the family
owned business is able and worthy to run the business not just by the gender but from the
knowledge and capability.

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  Now that we have seen that how deep rooted this devil of gender bias is, it is very important to
deal with this social dogma. The society is under the grip of gender bias and it is our duty to
fight with it.

Example of gender bias are as follows:

 There is much that family-led businesses in India can learn from the experience and journey of
the over Rs 36,000-crore Murugappa Group that is currently run by the fifth generation of its
founding family.
 Valli Arunachallam the eldest daughter of former Murugappa group chairman, late MV
Murugappan. She has demanded a board position in the holding company, Ambani Investments
Ltd (AIL), if her uncles refuse to buy the stake held by her mother, sister and herself.
 Part of the problem so far has been that traditionally, family constitutions tend to ensure that
businesses get passed down to the male heirs of the family in business. Now, it appears some of
the leading Indian business families are revisiting family members' involvement in business
and enabling women to participate.

 But on the other hand there are companies like Cipla, Lupin, TVS where both sons and
daughters are actively involved in the business. Most seem to believe that there would be more
such cases in future with Indian family-led businesses increasingly creating space to leverage
the women power within the family.

Answer (b)

First of all, Rational thinking is the ability to think out of the box, to think critically, to produce “good
quality of thoughts” in certain situations to arrive at a rational decision. ... Rational thinkers are ones
who question everything and who are curious about the world. As the matter here is related to money it
demands the decision to be made only after giving rational and critical thought to it. And when it
comes to the family the decision making becomes more tough.

Hence there are many limitations which comes into play when a decision maker phase a highly
emotional family situation which can affect the business very negatively. Limitations can come in any
form and can drain the decision maker emotionally which may finally result in non rational decision
making.

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Limits of rational business thinking in highly emotional situation.

1. Here the decision maker does not have the complete knowledge regarding the matter or himself
choose to be in dark, for the sake of family. And hence decision making becomes more
difficult.
2. The other limit to the decision making in family related business matter are, emotions criticism
and relations.
3. The decision making in a family business situation may involve many goals to be fulfilled,
which makes it more difficult.
4. The phrase of “log kya kahenge” and criticism do not let the decision maker make a fully
rational decision.
5. The decision maker is also under the influence or under the fear of losing the relation while
making the decision.

Answer (c)

Although the life cycle of a family owned business does not differ from the normal business life cycle
there are some points of difference worth to be noted.

The owner or the first generation entrepreneur starts the business, makes a lot of effort to build the
business from scratch, putting his heart and soul into it.

He sees it growing and flourishing.

In the mean time to-be-successor sees the business growing the nuisances of the business also getting
emotionally attached or detached from the business. He/she also assess himself/herself to continue
with the family business.

Then comes a time when the business has stopped growing and has reached a maturity stage, and it
needs renovation and changes or it may go into decline stage, also the first generation entrepreneur has
lost interest and zeal to work as he/she used to work with.

And here comes the second generation entrepreneur with new ideas, new thinking and energy to take
over the business.

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We’ve seen this situation in many business houses of our country be it, Birla, Godrej, Ambanis, JIndal,
very business house has passed on their business to the younger generation as part of their succession
planning.

In the India we have seen Marwari community to be very efficient with succession planning. They start
training their kids at an early age. The first generation owners take their kids to work at a very young
age.

1. Our is a patriarchal society, dominated by men so the first preference is always given to the
male child of the family with the leadership role.
2. The decision regarding the succession planning has always been made by keeping the male
child of the family in a favourable position.
3. Also the girl child of the family has been bestowed with other responsibilities like marriage,
looking after the house and children. They get trapped in the responsibilities and get away from
the nuances of business.
4. Also the girl child is considered to go to a different family and lead a family life there, so the
society at the first place never accepted a girl child in any managerial or leadership role.
5. Owing to these social belief and dogma the decision regarding succession planning is done in a
family owned business.

Answer (d)

 What all are at stake

 What he is going to gain or loose
 How the life changes

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 Case 4

Answer (a)

The company was very enthusiastic about Process #887 because the average new saw blade would cut
for nearly 3 hours and 12 minutes. The current blade had a life expectancy of 2 hours and 5 minutes.
Changing saw blades was roughly an eighteen-minute process for the sawmill operator, and required
that the production line be shut down during that time.
The cost to manufacture steel saw blades using Process #887 was 12% greater than current processes.
The company had asked its salespeople what they thought of the new product. 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”.
The Government of Indonesia had declared this invention to be one of the five most commercially
viable innovations in the country and had given Memaksa Steel a National Science Institute Award.
This award, given to five inventors annually, carried a cash prize of approximately Indonesian Rupiah
500,000,000 (US$ 57,000)1.

Answer (b)

The company currently sold saw blades to sawmills in one of two ways:

 Saw blades and other metal products (such as drive shafts, metal rods, etc.) were sold to
industrial metal implement distributors, who in turn used their own sales force to call on
domestic fabricators, saw mills and industrial manufacturing facilities as it is an indirect
channel,

 These products were sold to industry outfitters, who in turn resold a broad line of goods,
including saw blades, to the sawmills. At times, outfitters bought these products directly from
the distributors and it is a direct channel.

 In general, distributors received a 20% discount while outfitters enjoyed a 15% discount.
Memaksa currently owned a 20% share of the domestic saw blade market. Exports were not a
material part of their volume.

Answer (c)

In general, distributors received a 20% discount while outfitters enjoyed a 15% discount. Memaksa
currently owned a 20% share of the domestic saw blade market. Exports were not a material part of
their volume.

Industry outfitters normally called on sawmills with a broad assortment of products that would be
required for use in the sawmills. That is, they sold specialty tools, safety equipment (e.g., safety
goggles, boots, and gloves for the workforce), maintenance equipment (e.g., lubricants, solvents, and
scrapping tools) and treatment chemicals for wood preservation processes. Typically, an outfitter
might carry between 3,500 and 6,000 stock-keeping units (SKUs). In contrast, a typical distributor
would routinely carry roughly100 metal-based products.

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Answer (d)

If the channel does not want this product the company no need to stop the production as the company
has to custom the products and distribute the products in the market.

The marketing department had concept tested the innovation for use in the manufacturing of custom
milling equipment, and for steel saw blades to be used in the lumber mills of Indonesia. Memaksa’s
management team recommended that they should further investigate the market potential for Process
#887 in the saw blade market.
The company currently sold saw blades to sawmills in one of two ways:

Saw blades and other metal products (such as drive shafts, metal rods, etc.) were sold to industrial
metal implement distributors, who in turn used their own sales force to call on domestic fabricators,
saw mills and industrial manufacturing facilities;

These products were sold to industry outfitters, who in turn resold a broad line of goods, including saw
blades, to the sawmills. At times, outfitters bought these products directly from the distributors.

In general, distributors received a 20% discount while outfitters enjoyed a 15% discount. Memaksa
currently owned a 20% share of the domestic saw blade market. Exports were not a material part of
their volume.
Industry outfitters normally called on sawmills with a broad assortment of products that would be
required for use in the sawmills. That is, they sold specialty tools, safety equipment (e.g., safety
goggles, boots, and gloves for the workforce), maintenance equipment (e.g., lubricants, solvents, and
scrapping tools) and treatment chemicals for wood preservation processes. Typically, an outfitter
might carry between 3,500 and 6,000 stock-keeping units (SKUs). In contrast, a typical distributor
would routinely carry roughly100 metal-based products.

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 Case 5

Answer (a)

Since the inception of the company, the co-founders has not carried out any hypothesis-driven
decision- making the reasons are as follows:

 As they didn’t carried out any type of research for the twin cities project.
 They also didn’t know about the customer behaviour of the customers towards their services
which they are offering.
 They also have to organize a survey regarding the demand for the customers.
 They also don’t know about the expenses which they will incur in the opening an headquarter
and satellite in Islamabad and Rawalpindi.
 They only thought that their business is running well in Lahore so it will also run at the same
pace in Islamabad and Rawalpindi.
 They also have to research about the spending power of the people living in Islamabad and
Rawalpindi

The above are the reasons that explains that the co-founders of the G.P has not done any type of
hypothesis testing of their business with respect to Islamabad and Rawalpindi.

Answer (b)

If you were in the co-founders’ shoes we will do the following things which are as follows:

 I will first do the business in Lahore only because our business is well established there
and we are getting good profits.
 But if I have to expand our business I will first make our survey regarding the demand of
the customers with regards to my services.
 After that by doing a survey we will come to know about the customer behaviour towards
the services which we were providing
 I will target only those areas which are near to us and have a very high amount demand
towards our services
 Then we will consider the amount of investment we have to invest according to the profits
which we will generate during a month.

Above points are the things which I will consider when I was in the boots of the co-founder.

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Answer (c)

The lean start-up model can be applied effectively to any particular instances in the company’s
timeline which are as follows:

 In this case only BUILD MEASURE AND LEARN principle is only applicable as they done
the expansion by not doing any type of research
 They have build a channel of their services in Islamabad and Rawalpindi
 Then they have started measuring the results (profits, demand and ROI )
 By seeing the results (profits, demand and ROI ) they understood that they have to start all over
again with the survey and research about the demand for their services.

BUILD MEASURE AND LEARN is the only principle of lean start-up model which is applying in
this case.

Answer (d)

This is not the right time to start up a business in twin cities the reasons are as follows :

 As their business Is running at a greater pace in Lahore and they are getting a good amount of
profits.
 By investing money in opening a headquarter in Islamabad is big fail as there is no profits at all
because we are not having much demand there.
 We invested money for opening the headquarters but we are not able to reach our breakeven
point in a short span of time
 We have not even done any type of survey and research in the area of Islamabad and
Rawalpindi
 By investing the money in the headquarters we has increased the cost of our services
 The money which is invested in the headquarters is either be a loss or cost which has to
recovered by increasing the customer base of our company

The above are the reasons why it is not the right to expand our market to Islamabad and Rawalpindi.

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