ENTREPRENEURSHIP

1. Why do we need to understand the industry we want to venture?

To determine how the industry dynamics work for the specific industry under consideration. The
significance of understanding it for marketing capability cannot be overstated. Understanding
industry and the skills required to conduct industry analysis are critical for your business because
they will help you gain a thorough understanding of the environment in which you operate.

2. How does franchising works in the Mansmith Franchising Model?

It takes into account the company’s quality, product value, franchisor, and local effort. The
framework has two sides, one for franchisors and one for franchisees. The three elements for
franchisors are quality of product value, quality of company, and quality of return on investment
(ROI). The franchisee, on the other hand, consists of three distinct elements: quality of
prospects, quality of local efforts, and quality of leadership. Quality of product value includes
the product and its packaging, the brand, and its pricing. Quality of company includes having
systems and manuals, regular training, franchise support, and prompt communication. Fees and
royalty, stock availability, terms and conditions, and having the right location all contribute to
the quality of ROI.

3. Explain the two parts of a business model.

a.) Operating model

An operating model focuses on the business model’s delivery component. An operating
model is one of the tools available to leaders to aid in the formulation and execution of
strategy. Operating models describe how a company’s core processes are organized.

b.) Offering model

An operating model focuses on the business model’s delivery component. An operating model is one
of the tools available to leaders to aid in the formulation and execution of strategy. Operating
models describe how a company’s core processes are organized.

4. What are the tests to spot a weak concept? What will happen if you do not consider these tests?
 Are you unique without being relevant?
 Are you investing in cost that does not add value?
 Are you guilty of having a lower price – higher cost business model?
  Will consumers prefer the status quo than change their preference in your favor?

The product or service concepts will not be founded on customer insights, and marketers will be unable
to acquire skills in observation or ask critical questions that explain test failure.

5. Why is having a model essential not only in business but also in every undertaking?
The phrase “business model” originally became popular with the introduction of the personal
computer and spreadsheet. Prior to the spreadsheet, business planning often entailed creating a
single, base-case prediction. You conducted, at most, a sensitivity analysis around the
projection. Although the primary purpose of strategic company management is to aid in profit
and decision making, its roles may also be divided down.