Programme : Professional Diploma in Corporate Management

Module : Entrepreneurship
Facilitator : Pn. Nor Bayah Binti Sainon
Centre : Angkasa Seremban
NAME : SAMINATHAN GANESAN
NOMATRIK : PX229473MMJ263

Answer 5 of 6 questions
Jawab 5 dari 6 soalan.

1.i) Who are intrapreneurs?

Siapakah yang digelar ‘intrapreneur’ 4markah

An intrapreneur on the other hand is an individual who works on developing new ideas and
products within the confines of the business that they already work at. Intrapreneurs include any
person within the company that applies entrepreneurial skills, vision, and forward-thinking into
the role that they have in the company. One of the big benefits of becoming an intrapreneur is
that it allows you to form new ideas, products, and business goals without taking on the risks
that come with starting a new business as an entrepreneur, such as no income, limited team, lack
of time, unpredictable future, etc.

ii) Explain the difference between Entrepreneurs and Intrapreneurs using suitable
examples.
Terangkan perbezaan diantara “Entrepreneurs” dan “Intrapreneurs” dengan
menggunakan contoh yang sesuai. 16 markak

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 Parameter of Comparison Entrepreneur Intrapreneur

Definition It describes a person who It refers to a person who works

establishes his own in a company and is vested with
company and shoulders the the responsibility of carrying
risks and rewards involved out innovations in products,
in it. operations and services and so
on.
Objective To introduce something in To improve the performance
the market that is new and and market sustainability of an
of socio-economic value. established enterprise.

Status Founder of a company Employee in an existing

company
Nature of Enterprise Recently established. Well-established (stable)

Source of Capital Acquired by the Provided by the company in

Entrepreneur himself. which he works.

Risk Borne by the entrepreneur Taken by the company.

himself.
Works for Creating a leading position Change and renew the existing
in the market. organizational system and
culture.
Works for Creating a leading position Change and renew the existing
in the market. organizational system and
culture.

Since, last few decades, it has been noticed that people give more value to innovations, which lead to the
rise in the number of startup companies year on year. This is because the world is changing rapidly with the
advancement in technology. It has also resulted in the competition among companies. Now, if the enterprise
wants to stand in competition with other enterprises, it should bring something new in their products.
Entrepreneur and Intrapreneur play a major role here, to enter into new business and even markets.

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2. Explain the 3 steps involved in identifying the target market.
Jelaskan 3 langkah bagi mengenal pasti “target market” 20 marka

Three (3) steps:

First:
 Identify the product or service to be offered
Second:
 Focus the marketing effort
Third:
 Determine target market from the market segments identified

The goal in identifying your target market is to be as specific as possible, down to the
most minute details. A brainstorming session with others who know your product works well
because of the two-heads-are-better-than-one adage. Another person may think of the product
and its purchasers differently than you do and focus on a factor other than age, such as level of
education, technical knowledge, where they live or their gender. The new viewpoint makes you
think of an additional factor, and so on. Other ways to learn about your market are to study
survey data or conduct your own survey and research all you can about who buys your
competitors' products.

Of course, you'd be happy to sell to anyone, but defining your target market doesn't mean
you won't sell to anyone else, according to an Inc. magazine article; it just means putting your
marketing dollars where they are likely to bring you the most results. Defining your niche in the
market is a way that small businesses can compete with large businesses. Remember, too, that if
you sell more than one product, you may have different – or slightly different – target audiences
for each one. When you've defined all you can about your target market or the target audience
who will want to hear or read about your product, you may be shocked at the details you've
uncovered. For example, perhaps you started out thinking your target market was females aged
30 to 50, but from talking with others and doing some research, you now know that age isn't as
much of a factor as that the females have children, own homes in the suburbs of larger cities, or
have attended college but not necessarily earned a degree.

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 Using the STP Marketing Strategy
One of the most effective methods of target marketing is to use the segmentation,
targeting and positioning (STP) marketing strategy. First, divide your market into segments of
buyers who share certain characteristics. According to Smart Insights, the most common
segmentation is dividing the market by four criteria: demographics, psychographics, geographics
and behavioral characteristics. Next, in the targeting step, you analyze the segments and
determine which one or ones are currently your best target audience. For positioning, you
discuss ways to reach the segments you chose, narrow those down by discussing the pros and
cons of each, and design a plan of how and where to reach each target market.

 Dividing Your Market Into Segments

There are many possible methods of market segmentation; you aren't limited to
demographics, psychographics, geographics or behavioral characteristics, but they are a good
place to start. Demographic criteria are based on the data you have on those in your market,
including their ages, gender, level of education, occupations, sexuality, interests and family size.
Demographics is the most common segmentation because these characteristics most often
determine buying habits.
Psychographics is segmentation according to personality and traits, such as values,
opinions and favorite activities. For example, people with expensive lifestyles value luxury and
carrying, using or wearing high-end designer items. People who are thrifty value a well-priced
product but may also look for quality, though they're not interested in the brand name.
Geographic segmentation is concerned with customers' locations, which could be based
on their country, city and state, or whether they're urban or rural residents. Sometimes just a ZIP
code can reveal a lot of information. The 1980s television show, "Beverly Hills 90210," made
that ZIP code recognizable as standing for wealth, while other U.S. ZIP codes might be known
for areas with high levels of poverty or ones where high-tech individuals are known to live.
Behavioral segmentation looks at how customers behave by how they interact with the
business. Are they frequent buyers of one item or type of item? Do they usually buy online or in
a store? The USC Marshall School of Business advises in its teaching of the STP model that
behavioral segmentation also considers whether buyers are frequent customers – in other words,
loyal – or occasional buyers. With people using digital applications often to research products

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 and make purchases, businesses can easily track how often a customer uses their websites, what
products people are interested in by what they look at, and what they ultimately bought.

 Determining Your Targeting Strategy

After we finish the segmentation, it's time to analyze each segment and determine which
to target with your marketing plan. Have all the segments in front of you on one page or a
conference room wall so that everyone involved in the process can easily see the description of
each segment as you discuss it. Evaluate each segment on:
Size: If it's too small, it may not be worth targeting; if it's too large, it won't be feasible.
Reachability: How difficult or expensive will it be to reach this segment and relay your message
effectively?
Profitability: Run the numbers on expected profit from each segment based on the cost to reach
the people in it and how much you can sell your products for.
With your budget in mind, determine which segment or segments make the most sense to target
with your marketing dollars.

 Positioning in the Marketplace

The last step, positioning, refers to the position your business or product occupies in the
mind of your potential customers, as explained on the Wemla website. You may already have a
position in mind for your business or products, but if it's an inaccurate or incomplete one, you'll
want your messaging to change. If your business or products aren't known to a segment, you
need to carefully consider the message you want to convey. It's important to get your message
right the first time, according to Wemla, because once people have established a position on
something, they rarely change. Now that you have identified the target market(s) you're going to
reach out to, craft the overall message about your business or product(s). A well-rounded
marketing plan reaches your intended target market in a variety of ways with a consistent
message that appeals to them based on your detailed knowledge obtained through the STP
method of target marketing.

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 3. Explain with local and international examples, the advantages of franchising to the franchisee
(entrepreneur).
Terangkan / jelaskan dengan menggunakan contoh yang sesuai kebaikan,perniagaan
“franchise’kepada usahawan. 20 markah

The advantages of franchising to the franchisee (entrepreneur) is:

 Capital
For business owners, franchising can help reduce some of the financial burdens associated with
growing a business. Unlike organic growth, where an entrepreneur continues investing more of their own
capital as they open new locations, franchising provides opportunities for unit-level expansion where the
franchisee supplies the capital for the franchised location they bought. Franchisees pay an initial fee to join
the franchise network, and they invest their own capital to develop and open their location.
 Motivated Management
Another stumbling block facing many entrepreneurs wanting to expand is finding and retaining
good unit managers. All too often, a business owner spends months looking for and training a new manager,
only to see them leave or, worse yet, get hired away by a competitor. And hired managers are only
employees who may or may not have a genuine commitment to their jobs, which makes supervising their
work from a distance a challenge. ut franchising allows the business owner to overcome these problems by
substituting an owner for the manager. No one is more motivated than someone who is materially invested
in the success of the operation. Your franchisee will be an owner -- often with his life’s savings invested in
the business. And his compensation will come largely in the form of profits.
 Speed of Growth
Every entrepreneur I've ever met who's developed something truly innovative has the same recurring
nightmare: that someone else will beat them to the market with their own concept. And often these fears are
based on reality. The problem is that opening a single unit takes time. For some entrepreneurs, franchising
may be the only way to ensure that they capture a market leadership position before competitors encroach
on their space, because the franchisee performs most of these tasks. Franchising not only allows the
franchisor financial leverage, but also allows it to leverage human resources as well. Franchising allows
companies to compete with much larger businesses so they can saturate markets before these companies can
respond.

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 Ease of Supervision
From a managerial point of view, franchising provides other advantages as well. For one, the
franchisor is not responsible for the day-to-day management of the individual franchise units. At a micro
level, this means that if a shift leader or crew member calls in sick in the middle of the night, they're calling
your franchisee -- not you -- to let them know. And it's the franchisee’s responsibility to find a replacement
or cover their shift. And if they choose to pay salaries that aren't in line with the marketplace, employ their
friends and relatives, or spend money on unnecessary or frivolous purchases, it won't impact you or your
financial returns. By eliminating these responsibilities, franchising allows you to direct your efforts toward
improving the big picture.

 Increased Profitability
The staffing leverage and ease of supervision mentioned above allows franchise organizations to run
in a highly profitable manner. Since franchisors can depend on their franchisees to undertake site selection,
lease negotiation, local marketing, hiring, training, accounting, payroll, and other human resources
functions (just to name a few), the franchisor’s organization is typically much leaner (and often leverages
off the organization that's already in place to support company operations). So the net result is that a
franchise organization can be more profitable. Unfortunately, it is difficult to quantify or prove this
contention. This much we do know: Research done during the past 10 years shows top quartile franchisors
put an average of 40 and 45.6 percent to the bottom line in 2001 and 2002 respectively.

 Improved Valuations
The combination of faster growth, increased profitability, and increased organizational leverage
helps account for the fact that franchisors are often valued at a higher multiple than other businesses. So
when it comes time to sell your business, the fact that you're a successful franchisor that has established a
scalable growth model could certainly be an advantage. When the iFranchise Group compared the valuation
of the S&P 500 vs. the franchisors tracked in Franchise Times magazine in 2012, the average price/earnings
ratio of franchise companies was 26.5, while the average P/E ratio of the S&P 500 was 16.7. This represents
a staggering 59 percent premium to the S&P. Moreover, more than two-thirds of the franchisors surveyed
beat the S&P ratio.

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 Reduced Risk
By its very nature, franchising also reduces risk for the franchisor. Unless you choose to structure it
differently (and few do), the franchisee has all the responsibility for the investment in the franchise
operation, paying for any build-out, purchasing any inventory, hiring any employees, and taking
responsibility for any working capital needed to establish the business.The franchisee is also the one who
executes leases for equipment, autos, and the physical location, and has the liability for what happens
within the unit itself, so you're largely out from under any liability for employee litigation (e.g., sexual
harassment, age discrimination, EEOC), consumer litigation (the hot coffee spilled in your customer’s lap),
or accidents that occur in your franchise (slip-and-fall, employer’s comp, etc.).Moreover, it's very likely
that your attorney and other advisors will suggest you create a new legal entity to act as the franchisor. This
will further limit your exposure. And since the cost of becoming a franchisor is often less than the cost of
opening one more location (or entering one more market), your startup risk is greatly reduced. The
combination of these factors provides you with substantially reduced risk. Franchisors can grow to
hundreds or even thousands of units with limited investment and without spending any of their own capital
on unit expansion.

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4. Explain the characteristics of small businesses in Malaysia.
Jelaskan karekteristik perniagaan kecil di Malaysia. 20markah

i) Limited Investment:
In a small business enterprise, capital is supplied by an individual or a small group of individuals. As
per a census of small-scale units in India, mostly small business enterprises are run as sole-
proprietorship and partnership.

(ii) Personal Character/Owner-Management

A small business is identified with its owners; who themselves act as managers. Managers as such have
maximum motivation to work; as they themselves happen to be the owners also, at the same time.

(iii) Labour-Intensive:
Small business enterprises are mostly labor-intensive. The machinery and equipment used are not very
sophisticated and are operated manually.

(iv) Unorganised Labour:

Small business enterprises employ a smaller number of workers as compared with big business
enterprises. Workers of these units do not form labour unions and remain unprotected.

(v) Local Area of Operations:

The area of operations of small units is generally local as they have less capital and less marketing
facilities at their disposal. There is a local touch between employer and employees; and between
employer and customers though products of some small-scale enterprises are exported to many
countries of the world.

Organizational Structure
Flat
Informal

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6.i). What is a business plan.
Apakah “business plan” 2 markah

A business plan is a document that defines in detail a company's objectives and how it plans to achieve its
goals. A business plan lays out a written roadmap for the firm from marketing, financial, and operational
standpoints. Both startups and established companies use business plans.
Explain 4 reasons why a business plan is important .
Jelaskan 4 sebab mengapa “business plan’ adalah penting. 8 markah

 It puts a plan in place when starting a new business

A lot goes into starting a new business. In addition to coming up with a business idea, you also
need to solidify the specifics of the business, like what services or products you will sell, where
you will do business and who will work for the company. A business plan can help provide
guidance in this process, which can also help avoid mistakes along the way. It can offer you
insight into the steps you need to take to open your business, as well as the resources you will
need to obtain.
 To conduct the necessary research
You might create a business plan before even deciding to open a business. Writing a business plan
requires that you conduct the necessary research, which can be helpful in deciding if starting a
business makes sense. You might also create a business plan if you intend to take your existing
business in a new direction. By writing out the details and finances of the new plan, you can
determine if a shift will be profitable. This includes defining your market, pinpointing who your
customers are and how you will reach them.

 To evaluate competitors and find your audience

Another part of creating a business plan is researching the current companies in the industry in
which you want to work. By identifying competitors and where they are not currently reaching
customers, you can better predict how you will reach them. It can also help you choose your target
audience.

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 Sets objectives for employees and managers
Setting and measuring objectives will ensure that employees and managers are clear on their
duties. This can also help you choose the right staff for your business by setting clear expectations
and objectives. You might also use this information to help with training new employees and
managers. A business plan sets the expectations of the business from the beginning. If you change
or update your goals, a business plan can help share these new objectives, providing structure and
accountability.
 Sets goals for you as an entrepreneur
Setting clear goals is also helpful for you as an entrepreneur. You can use a business plan to list
specific goals that you want to achieve, along with target dates. This can provide you with a guide
to structure your daily responsibilities, while also providing you with accountability as an
entrepreneur.

iii.Explain the contents of a business plan.

Jelaskan kandungan “business plan” 10 markah

 Executive summary
The executive summary is the first and one of the most critical parts of a business plan. This
summary provides an overview of the business plan as a whole and highlights what the business
plan will cover. It's often best to write the executive summary last so that you have a complete
understanding of your plan and can effectively summarize it.Your executive summary should
include your organization's mission statement and the products and services you plan to offer or
currently offer. You may also want to include why you are starting the company if the business
plan is for a new organization.

 Business description
The next part of a business plan is the business description. This component provides a
comprehensive description of your business and its goals, products, services and target customer
base. You should also include details regarding the industry your company will serve, and any
trends and major competitors within the industry. You should also include you and your team's
experience in the industry and what sets your company apart from the competition in your
business description.

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 Competitive analysis
Your business plan should also include a detailed competitive analysis that clearly outlines a
comparison of your organization to your competitors. Outline your competitors' weaknesses and
strengths and how you anticipate your company to compare to these. This section should also
include any advantages your competition has in the marketplace and how you plan to set your
company apart. You should also cover what makes your business different than other companies
in the industry, as well as any potential issues you may face when entering the marketplace if
applicable.
 Management and organization description
This section of your business plan should cover the details of your business's management and
organization strategy. Introduce your company leaders and their qualifications and responsibilities
within your business. You can also include human resources requirements and the legal structure
of your company.
 Products and services description
Use this section to further expand on the details of the products and services your company offers
that you covered in the executive summary. Include all relevant information about your products
and services such as how you will manufacture them, how long they will last, what needs they will
meet and how much it will cost to create them.
 Operating plan
This part of your business plan should describe how you plan to run your company. Include
information regarding how and where your company will operate, how many employees it will
have and all other pertinent details related to your organization's operations.
 Financial projection and needs
The financial section of your business plan should detail how you anticipate bringing in revenue
and the funding you'll need to get started. You should include your financial statements, an
analysis of these statements and a cash flow projection.

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