ENTREPRENEURSHIP

MANAGEMENT
ASSIGNMENT DEC 2023
Answer 1-
INTRODUCTION:
Industry analysis is a method that helps a business venture to assess
its position in relation to other companies that make similar products or
services. Effective strategic planning requires an understanding of
the forces at work in the whole industry. Industry analysis allows
small business owners to identify the threats and opportunities facing
their businesses, and to focus their resources on developing
unique capabilities that could lead to a competitive advantage. Mr.
Verma can use following tools that will aid him in industry analysis:

CONCEPT:

1.MICHAEL PORTER’S FIVE FORCES MODEL

Porter’s Five Forces model is a strategy for determining an industry’s
vulnerabilities and strengths by identifying and analysing five
competitive forces that define every business. This model is widely
used to define corporate strategy by identifying an industry’s
structure, understand the level of competition within an industry and
improve a company’s long-term profitability in any sector of the
economy. Michael E. Porter, a Harvard Business School professor, is the
creator of the Five Forces paradigm. Porter’s Five Forces is a business
analysis model that explains why different industries may maintain
varying degrees of profitability. With certain qualifiers, Porter
identified five indisputable forces that shape every market and
business. The five forces are widely used to assess an industry’s or
market’s competitiveness, attractiveness and profitability.

The five forces are-

Competition in the industry

Potential of new entrants in an industry

Power of suppliers

Power of customers

Threat of substitutes

2.PESTEL ANALYSIS

It is a strategy framework that breaks down possibilities and hazards

into Political, Economic, Social, Technological, Environmental and
Legal elements in order to evaluate a company’s external
environment. It is a useful tool for determining the benefits and
drawbacks of a business strategy in corporate strategy planning.
The PESTEL framework is a variation on the PEST strategic framework
that adds a consideration of environmental and legal variables that can
affect a company.
The following are the elements of PESTLE analysis:
‰‰ Political factors: These factors are concerned with the
intervention of government in the economy affecting businesses. Some
of these factors include tax policy, trade restrictions, tariffs,
bureaucracy, etc. These factors have significant impact on
businesses.
Economic factors: These factors consider numerous areas of
the economy and how the forecast in each sector may affect the
company. Some of the economic factors include economic growth
rates, interest rates, exchange rates, inflation, unemployment rates,
etc.

Social factors: These are social aspects that are linked to cultural
and demographic trends. Consumer behaviour is heavily influenced
by social conventions and influences.

Technological factors: Technological aspects are linked to industry

innovation as well as overall economic innovation. Being out of
touch with current industry trends can be immensely detrimental
to business operations.

Environmental factors: These factors are concerned with the

effects of the environment on business. Some of these factors
include weather conditions, temperature, climate change, pollution,
natural disasters, etc.

3.SWOT ANALYSIS
SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
Strengths refer to benefits that a business has over the competition,
while weaknesses are internal limitations of the business in comparison
to the competition. On the other hand, opportunities refer to existing
external trends that can be exploited, while threats are external
movements that may cause a problem and have a negative impact on
the firm.

TOWS ANALYSIS

A TOWS analysis is extremely similar to a SWOT analysis, however,

there is a significant difference between the two, aside from a
few letters reshuffled. While SWOT analysis focuses on the internal
environment (strengths and weaknesses), TOWS pushes to start with
the outside world (threats and opportunities). TOWS analysis
involves answering the following questions:
‰‰ What can be done to make the most of the assets?
‰‰ How to get over the flaws?
‰‰ How can an advantage of outside opportunities be taken?
‰‰ What is the best way to deal with threats?

4. 5W1H MODEL WORKSHEET

The 5W1H method can be defined as one where one can address all
the Ws and H and gain an understanding of a problem. The questions
can be changed to make it pertinent to whatever problem or issue is
being addressed.
‘What’: It poses the question of what should be improved. What
improvements would be beneficial to attain and what should be
done?
‘Where’: It relates to questions about where something is located.
Is it necessary to alter a worker’s method or orientation?
‘When’: It deals with concerns such as operation sequence, duration,
and time. When should it be done? Is it possible to improve
execution by altering the timeline?
‘Who’: It refers to who is accountable for addressing the problem
or putting the solution into action. It is about task delegation,
collaboration and manpower.
‘Why’: One can ponder everything here, from the perceived problem to
the approaches that have been presented on how to solve it and
improve it.
‘How’: It relates to how a technique or method should be changed,
whether a method requires less expenditure or expertise and
whether a procedure should be replaced with a better one.

CONCLUSION:
These tools can provide valuable insights into the industry, help identify
opportunities and threats and guide decision making. Hence, Mr Verma
can use these tools for industrial analysis.

Answer 2-
INTRODUCTION:
Yes, I do agree with the statement, ‘Trend in entrepreneurship, in the
current era have made it booming as comparing to the ancient form of
entrepreneurship’. The following factors can be stated for the same:

CONCEPT:
1. TECHNOLOGICAL ADVANCEMENTS: In the past, entrepreneurs
faced significant barriers due to limited access to technology.
 Nowadays, technology has revolutionized the way businesses
operate. The internet has opened up a world of opportunities,
enabling entrepreneurs to reach a global audience and market
their products or services more effectively. E-commerce
platforms, social media and digital marketing tools have made it
easier for entrepreneurs to connect with customers and build
their brand.

2. ACCESS TO INFORMATION AND RESOURCES: Back in the day,

aspiring entrepreneurs had limited access to information and
resources. Today, we have an abundance of resources at our
fingertips. Online platforms offer a huge array of educational
materials, courses and tutorials that can help businessmen
acquire essential skills and knowledge. In addition, networking
events, startup communities, and mentorship programs provide
valuable guidance and support.

3. CHANGING MINDSET AND ATTITUDES: The perception of

entrepreneurship has shifted significantly over time. In ancient
times, entrepreneurship may have been associated with risk and
uncertainty, making it less appealing. However, in the current era,
there is a growing recognition of the value and impact that
entrepreneurs can bring to society. People are more open to
taking risks, pursuing their passions, and embracing
entrepreneurial ventures as a viable career option.
4. SUPPORTIVE ECOSYSTEM: The entrepreneurial ecosystem has
evolved and become more supportive. Incubators, accelerators
and co-working spaces provide entrepreneurs with access to
funding, mentorship and a collaborative environment. In addition,
venture capitalists and angel investors are actively seeking
innovative ideas and startups to invest in. This supportive
ecosystem fosters creativity, innovation and growth for
businessmen.

5. GLOBALIZATION: In today’s interconnected world, globalization

has opened up new markets and expanded the reach of
businesses. Entrepreneurs can now easily tap into international
markets, collaborate with partners from different countries and
leverage global supply chains. The increased connectivity has
provided entrepreneurs with a broader customer base and more
opportunities for growth.

6. CHANGING WORK CULTURE: The traditional 9 to 5 work culture is

gradually shifting, and more people are seeking flexibility and
autonomy in their careers. This change has created a fertile
ground for businesses, as individuals are more willing to take
control of their passions. The rise of remote work and the gig
economy have also provided avenues for entrepreneurship.

7. FUNDING OPTIONS: Access to capital is crucial for starting and

scaling a business. Fortunately, there are now more funding
options available to entrepreneurs. Apart from traditional bank
 loans, crowdfunding platforms, angel investors and venture
capitalists are actively investing in innovative startups. This
increased availability of funding has made it easier for
businessmen to turn their ideas into reality.

8. SOCIAL AND ENVIRONMENTAL CONSCIOUSNESS: Today’s

customers are more conscious about the impact of their
purchasing decisions. This has created a demand for socially and
environmentally responsible businesses. Businessmen who focus
on sustainability, ethical practices and social impact have found a
receptive market for their products and services. This shift in
consumer preferences has provided a unique opportunity for
socially conscious business personnel.

9. RISE OF DIGITAL NOMADISM: The ability to work remotely and

travel has become increasingly popular. Many entrepreneurs
embrace the digital nomad lifestyle, where they can run their
businesses while exploring the different parts of the world. This
freedom and flexibility have attracted individuals who value
adventure and new experiences leading to a rise in business
ventures.

CONCLUSION:
Today’s entrepreneurship has drastically changed due to the advancement of
technology. The introduction of the internet has led to Globalization. Society has
become hi-tech. The definition of the corporate world has changed. Cutting edge
technology has changed the perspective of entrepreneurship.
Answer 3-
(a)
Raj Sharma believed that he possess the requisite knowledge and skills
to formulate a viable business plan. Raj Sharma had high expectations
from his business plan and overly expected to obtain financial aid. He
was really banking on getting financial aid to kickstart his venture and
make it a big success. But unfortunately, things didn’t quite go as
planned.
Raj Sharma needs to understand that one of the most important things
to remember is that businesses take time to grow. It takes time to build
a customer base, generate revenue, and become profitable. There's no
magic formula for success, and there will be ups and downs along the
way.
It's also important to set milestones for your business. These are
specific, measurable goals that you can use to track your progress. For
example, a milestone could be reaching $1 million in annual revenue or
signing up 100 new customers.
Again, the key is to be realistic. If the goals that are set are too high,
one will likely miss them and feel like a failure. However, if a person set
achievable milestones, he'll be able to track his progress and feel good
about his accomplishments.
In summary, it's important to set realistic expectations for growth and
milestones when starting a business. By doing so, one will be more
likely to achieve goals and feel good about thier progress.

(b)
Many investors rejected his business plans and ideas as they were of
the view that his venture would not survive for long.

There were some of the following loopholes in the business plan of Raj
Sharma:

Lack of planning: Businesses fail due to a lack of both short- and

long-term planning. The business strategy should address where
a company will be in the coming months and years. Quantifiable
objectives and outcomes and specific to-do lists with dates and
deadlines will be included in the correct plan. Your business will
suffer if you do not plan ahead.

Poor management: Inability to listen, micro-managing – often

known as a lack of trust – operating without standards or
processes, poor communication and a lack of feedback are all examples
of poor management.

Lack of capital: This might prevent you from attracting investors.

A lack of capital is a red flag. It indicates that a company may be
unable to pay its payments, loans and other financial obligations.
Lack of finance makes it harder to expand the firm and puts day-
to-day operations in jeopardy.

Poor location: Inconvenient location is a disadvantage that may be

difficult to overcome. If your business relies on foot traffic, choosing
the right location is crucial. Your client acquisition expenses
may be excessively high due to a bad location.

There may be following reasons why many businessmen rejected Raj

Sharma’s business plan-

Inadequate market experience: One of the most prevalent roadblocks

for many entrepreneurs is a lack of understanding in the
sector of their business. An entrepreneur must have sufficient
industry experience by working in the necessary area. Instead of
rushing into a business based on the success of others, it is necessary to
gather sufficient knowledge about market circumstances, the nature of
the business firm, demand and supply of that specific commodity or
service, and so on before launching a new endeavour.

Non-strategic planning: Inadequate strategy planning may also

be a major stumbling block on the road to entrepreneurial success.
Many entrepreneurs began their businesses as a pastime and did
not have a long-term strategy or plan.

Lack of practical knowledge: Many young people feel that in

order for a firm to succeed, an entrepreneur must have a good
educational background, but the truth is quite different.

Difficulty in reaching to more people: Another challenge that

an entrepreneur may encounter is reaching out to more people
or acquiring new consumers to tell them about the products or
services that the company offers.