Entrepreneur - Person founders of the company.

Entrepreneurship - The process and wotking of the busness.

Enterprise - The company eg- Adani Group.

Entrepreneural Traits(qualities): -
Entrepreneur is a person but all people may not become an entrepreneur.
1.) Vision - Mission: Vision: The postion where the entrepreneur would like to to
see his business. There is no definite period to achieve it.
Mission: How to reach to the vision can be said as mission.Mission roles out the
road map that is the means through which the vision can be achieved.
2.) Leadership - Every entreprenuer is essentially a leader. Leader is someone who
is capable of taking initiatives. Willing to explore. There are two types of
leaders:
i.) Barometric - Leader is acceptable to everybody. Example - Ratan Tata,
capability of accomodate small businessman.
ii.) Agressive - Leader trying to dominate every domain. Takes decision on
authoratative manner and interested in expanding the business at any cost.
3.) Critical Thinking: Comes out of constraints, when the entrepreneur faces
limitation. Eg- Karsanbhai Patel.
4.) Creative thinking: Comes out of innovations. Eg- Steve Jobs
5.) Innovation:
6.) Risk Taking: Inherent quality of an entrepreneur. Eg- GSA.
7.) Organizing Skill: Every entrepreneur should have a great amount of organizing
quality i.e. organizing the factors of production - Land, Labour, Capital,
Entrepreneural skill.
8.) Managerial Skill: Planning, Directing, Communication, Staffing(HR), Control.
9.) Better Health: Decision making ability, mental ability, reasoning ability.
10.) Pro-active.
11.) CSR(Corporate-Social Responsibility): Social activities.
12.) Academic Qualification.

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.) What is Entrepreneurship?
It is the process through which the business idea is tranformed into actual
business.
Step 1: Ideation- Generation of ideas.
a.) Triggering new needs.
b.) Socio-economic problems- Different income levels, social category, sectoral
problems(Agriculture).
c.) Existing products: Product modification.
d.) RD: New product Development.
e.) Emerging substitutes.
f.) Affordable products and solutions.
g.) Sustainable or Eco-friendly.

Step 2: Idea screening-

a.) Evaluation
b.) Pros+cons
c.) Business Outcomes
d.) Costing
e.) Market
f.) Advertising and technology
g.) Competition
h.) Business Eco-system
i.) Consumer preference

Step 3: Business Analytics-

 a.) Technical
b.) Economical
c.) Financial
d.) Technological

Step 4: Finance(Raising Capital)

Business angels are those who lend money from individual capacity, while venture
capitalist or institutional lending. Private equity. Banks.

Step 5: Type of Business:

Sole Propriotery- Single owner
Partnership- minimum two owners. max 50 people. Garner vs Murray case.
Companies- governed by law board.
Startup: Conventional or Technological start-up.

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Ch: Business Model

It creates value proposition.A business model is a strategy, it is the USP of the

product.Value proposition means consumer gets a better value for the price they
pay. Value > benfit > price. Many a times, business models are established with
unique features in any of the following components:
1.) Production
2.) Procurement of raw materials. Procurement department coordinate the supply
chain management. New tech solutions are applied in the procurement department. New
ideas are required. Learning from behavioural economics us required. Learning from
game theory is required. A business strategy is called game. Games are operated
where the firms are close rivals.
Types of games(business strategy):-
A.) Dominant strategy- I do what I do, no matter what you do. It is an aggressive
business strategy. Eg- Adani Group, RIL.
B.) Nash Equilibrium- I do given what you do. Prisoner's dilemna. Eg- Tata Group
C.)Max-min strategy- The firms operating in the business maximize the minimum
profit.
D.) Min-Max strategy- In this the firm gets minimum profit in some products, and
maximum profit in other products. It can be initiated by a multi product firm.
E.) The first mover advantage
Nirma penetrated the Indian rural market with low price strategy. Siemens can be a
good example of high price strategy. After sales service can also be considered
advantage. Effective after sale service is a unique selling proposition(USP).
Attractive packaging is also an effective strategy, eg- chocolates.

Types of business models:

A.) B2B(Manufacturer's business model): Franchise model. Business between two
businessesd.
B.) B2C(Retailors Business model): Retailers format: Mall(Above 1 lac sq.ft),
hypermarket(50000-1 lac sq.ft), supermarket(25000-50000 sq.ft), departmental
store(5000-7500 sq.ft), convenience store, specialized stores(<5000 sq.ft).
C.) Subscription based business model: Journals, Youtube channels.
D.) Fee for services: Hourly rate, monthly rent.
E.) Freemium model: LinkedIn
F.) Bundling Model: Joint product business model. Razor blade business model.
G.) Advertising or Marketing model: Bloggers.
H.) Distribution Model: Dominos

Business Model canvas: Explains the business plan strategy.

1.) Key activities.
2.) Key partners.
3.) Key Resources(Finance).
4.) Value proposition.
5.) Consumer market.
6.) Consumer relationship Management.
7.) Cost structure.
8.) Distribution channel.
9.) Revenue model.

Essential components of a business model:

1.) Core strategy: Vision & Mission
Customer - Maximize utility
Business - Maximize profit
Tradeoff - Value proposition
Product differentiation

2.) Strategic asset: a.) Physical Infra.

Infosys business model. Rotating CEO
b.)Founder's competancy
c.)Processing quality

3.) Partnership Network:

a.)Strategic alliance
b.)Outsourcing
c.)Outbound logistics
d.)Marketing Logistics: 1.) Transportation, 2.) Warehousing, 3.) Inventory, 4.)
Order processing
e.)Insurance
f.)Finance
g.)Consultancy

4.) Customer Interface:

How the companies interact with the consumers in the selling process assumes great
significance.
a.) Discounting: seasonal(clothes), daily(DMart), hourly(Walmart).
b.) Customer Relationship Marketing(CRM)
c.) Grievance settlement: Guarantee/Warranty. There will be a free warrant, and for
extended period there will be paid warranty.
d.) Creating value chain across supply chain.

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.)How to analyze competitors ?

The popularity of monopoly is done. The market is becoming more and more
competitive. Perfect competition is idealistic. Monopolistic and Oligopoly.
Monopoly - Automobiles, large but distinctive products. Competitors adopt the
strategy of product differentiation to win over the rivals. Eg- Mahindra XUV. Uisng
its significance its popularity for exhorbitant price as there are no substitute
available in the market. Since the monopoly serve the market with product of
lasting distinctiveness.
Oligopoly - Oil, tyre, airlines. Few competitors but having nice amount of share in
the market. Huge rivalism. Few sellers compete each other.Here the rival firms
adopt flexible price or price rigidity with non-price competition or price
leadership, collusion(cartel) or game theory.
Porter's five force model(Competition Advantages):
1.)Inter-firm Rivalism-
a.) No. of competitors
b.) Industry Growth
c.) Market concetration ratio
d.) Quality difference
e.) Brand loyalty
f.) Switching cost
g.) Exit Barrier

2.) Threat of substitutes-

a.) No of substitutes available in the market.
b.) Buyer propensity for substitute.
c.) Switch cost
d.) Perceived level and product differentiation
e.) Pricing strategy
3.) Threat of new entry-
a.) Barries to entry(patent)
b.) economoies of scale.(large scale production, capital intensive)
c.) Brand royalty(still new competitors can enter eg- Honda Activa)
d.) Access to distribution channel. (Eg- Patanjali vs Dabur)
e.) Government policies(Recent policies of GoI)
f.) Switch cost
4.) Bargaining power of buyers-
Buyers bargaining power is determined by following factors-
a.) No. of customers.
b.) Size of each order.(This will determine whether the firm would offer quantity
discount or not)
c.) Differences between competitors.(Rival strategy)
d.) Price sensitivity
e.) Avaibility of substitutes
f.) Market Awareness
g.) Switch cost.
5.) Bargaining power of suppliers.
Following factors determine the bargaining power of suppliers:
a.) No. of suppliers.
b.) USP- product differentiation.
c.) Companies ability to substitute or product improvement.
d.) Supply chain cost.
e.) Switch cost.
f.) Life-cycle- The ability of the prodcut to stay in the market.