9-02-2023

Who are the characters?

Jill is our entrepreneur ??

Yang- friend from business school and part of her
network
Joo - ceo of electronic ( Jill will partner with him to sell
outside stores )
Cho - designer
Zhou- manufacturing company
Most imp point: She has an idea because of which she is an
entrepreneur as she wanted to turn it into an opportunity
( pursue opportunities) by getting external resources from
others to achieve her aim. She was able to create time for
opportunities without being instable and letting problems
hold her back in the process. She was able to create
opportunities to make things happen and move forward.
She has idea, convert idea into opportunity, following
process which was to coordinate resources beyond her
control which shows why she was a entrepreneur
She tried drifferent risks
She is always able to put work for her purpose through her external
resources
She has an vision to work on the opportunity
Context:

Imp to think of the context cause it can also constraint the process for
a entrepreneur
 What is the problem that Jill has ?
• She did not have money to pay to the manufacturer.
• her broad problem was to get a license from committee cause she
was pushed by the committee to define who will be the manufacturer
to get license to use Olympics logo .
• Last moment, before meeting zhou, yang her friend offered her to
preorder 20,000 watches in order to give money to Zhou in return for
a certain number of stake.
She did not sit home and create business model cause if she did that she
wouldn’t succeed
Entrepreneurial process
( in this process we develop business model)
Opportunity

I
Joo
Research Zhou
She did research to know more
about the size of the market,
Idea revenues, competition, or any
other info that will help to better
Where is idea coming from? understand the sector industry
She has certain kind of experience cause product, service and supply
she was a consultant in previous
chain. She mainly focused on
Olympic, her idea basically originated
from Experience ( worked in apple, size of the market
Research is an imp
Cho
Yang Olympics committee
She tried to look for individuals
in her social network that can
help with the business idea that
was in her mind. In this case
she found Yang. Yang was the
one that opened the market/
industry for her cause she
emotional effect
cause Yang chose to
do business with her
cause they r friends.
And also for
economic incentives
( ownership stakes &
royalties )

↓
earbuds company too). She knows she
worked for this kind of field before. She part in entrepreneurial didn’t have it herself. Helped Jill
knows what it means to have a license , process cause it to contact with the designer
she has her own experience in the helps in putting a Cho, olympic committee , Zhou
market. Ideas come from experiences,
finding a need etc. like Aus parkings are
perspective what we the manufacturer, and open
not enough for everyone, so it is a
want to achieve ‘ the moon store to sell the products.
experience and u can come with
vision’ cause it may Basically “How did she start
be our first test, so connecting with different

founda dilemma
solutions like carpooling, underground
parking, valet parkings, and app to book we are testing our stakeholders that she will need
in advance parking spots ideas. to start the business.”

She controlled her resources ( the people she found ) through using
incentives to align others objectives with her objectives into one
common goal. Like offering royalties agreements and stake
ownerships. It’s like giving people what they want for what I want.

I 5% royalties offered to Yang in exchange to sell in moon store.

Then Created a new firm known JYD with joo (40%) and Jill and Yang

I
and 20% of share with Yang , while 2% royalties to choo the designer
to create the product.

She is losing possibility to become rich and make money and she is
trading off how much money she wants to earn and how much control
she wants in business. She decided to give up control by sharing the
resources that she will not control. She trade off “ king “
She is reducing impact of failure that could impact her own income ,
family, or wealth through distribution of risk to all the characters
involved in the case. She is distributing also the possibility to earn

giony-
money to her partners.
2 hou
& Rik

-Jill-oc
Ruck
·

I00
k
Risk

Distributed among all partners

Now, today , what happened ?

What is the solution here?

Take offer of Yang in order to preorder 20,000 watches in

order to have enough money to give it to zhou to manufacture,
and cause Yang is owner of moon store. And there is
proximity between the context and Yang.
Now :
Decide whether Yang can have equity for pre order and enough money
for starting business to have agreement with Olympic committee

With Zhou, alternative is equity we don’t know how much and or

royalties which he may not expect cause it is huge risk and if things
don’t go wrong zhou won’t get anything cause it is owned by their
company anyways
Next class : read text again, look info for key point and in one para
structure your idea in order to define with whom u will partner with.
Show ur rationale and how much equity we would give to Zhou or
Yang and we can also perhaps maybe negotiate and make one strong
and one less strong.
 No essay , PARAGRAPH short one to point to develop idea
accurately to convince the people
In my opinion, it is fair to provide zhou with royalties rather than granting him
with ownership rights such as shares. I also searched and found that
royalties are guaranteed form of income which will be a great deal for zhou
as it will guarantee him some kind of income while giving Jill more ownership
over the other parties in this case. Also shares heavily rely on the
performance of the business and if the business does not meet the expected
revenue, zhou would still receive his royalties as per agreement of royalties
whereas if he was to be part of the shareholders in JYD , then he would face
the loss incurred by JYD in any circumstances that may impact the
performance of JYD. Royalties are less volatile than shares and more stable
thus it will also help Zhou to be more efficient in producing good quality
outputs of the watches.
And for Yang, Jill should accept his offer because she is aware that yang has
a good network in Korea and a lot of connections. Moreover he is more
familiar of the business culture in Korea which will help Jill succeed and be
more efficient in running her business in Korea. Also Yang can help her with
the prepayment of watches from Zhou and once that batch is sold , she can
use the profit margins to preorder once again from the profits while granting
some authority / shares to yang. This will also help her to be more powerful
in authority within her business along side with Yang .

This will help Jill to maintain exception stage of the

diagram we discussed in class while being as close
as possible to financial gain and control although
one may argue that it is difficult to be the exception
but she can try maximizing it as much as possible