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Syed Muhammad Habib ur Rehman +92-333-220 2440 , Gulshan-e-Iqbal Karachi.

ENTREPRENEUR An entrepreneur is someone who identifies and anticipates a market need, plans accordingly and organizes resources in order to satisfy that need Main Characteristics of Enterpenureship Creativity Initiatives Recourse gathering Managing the recourse Managing the people Leadership Passionate

Dimensions of entrepreneurship 1- Individual skills Everybody cannot be an entrepreneur; it requires an inherent nature of creativity and risk taking ability to be an entrepreneur. Thus the role that individuals play in entrepreneurship is undeniable. 2- Environmental Skills Environment poses both opportunities and threats for new venture creation. There are certain technological, social and cultural changes that may elevate a new product or a new idea. 3- Organizational Skills An organization is made up of people who have skills and talents, values and beliefs, and may be recognition that by working together they can create something special. _________________________________________________________________________________ ENVIRONMENTAL ANALYSIS Evaluation of the possible or probable effects of external forces and conditions on an organization's survival and growth strategies. Process of environmental analysis 1- Scanning Scanning the environment is the process by which the entrepreneur first identifies the key elements and their characteristics. The goal of scanning is to detect change that is underway. 2- Monitoring Monitoring is less general and more focused than scanning. Data from scanning process is input into the monitoring process to specify the scope of study 3- Forecasting

Forecasting enables the entrepreneurs to develop possible projections for the future. The inputs for forecasts are the data available from monitoring. 4- 4- Assessing Assessing the environment is the most difficult and important of the four tasks of environmental analysis. Here, the entrepreneur has to answer the most difficult of questions that whether this project is feasible or not. THE FIVE FORCES THAT SHAPE STRATEGY 1. Threat of new entry The threat of entry in an industry depends on the height of entry barriers that are present. If the industry barriers are low newcomers expect little retaliation from the industry and threat of new entry is high. It is voice versa. BARRIERS TO ENTRY. Supply side economics. Demand side benefits. Capital requirements. Advantages enjoyed by veterans. Government Policies. Expected Retaliation.

2. Threat of substitutes The threat of a substitute is high if the buyers cost of switching to the substitute product is low. If an industry does not distinguish itself from substitutes through, Product performance, Marketing Or any other means then the threat exist for that industry.

3. Power of suppliers A supplier group is powerful under following conditions: 1. Not depending heavily on a specific industry for its revenues. 2. Serving many industries will never hesitate to extract maximum profit from each one. 3. Protect industry through reasonable pricing if earning large portion of revenue from that industry 4. Supplier can threaten to enter into an industry that is more profitable. 4. Powers of Buyers Buyers believe they can always find an equivalent product they tend to play one company against another at the expense of industry profitability. Buyers can also threaten to come forward & produce the product themselves, if the industry returns are too profitable. 5. Existing Rivals Industry depends on INTENSITY and Basis on which they compete

TIME HORIZON The most important step is to understand the appropriate time horizon. In order to understand appropriate time horizon, full business cycle of any specific industry at least for the last 3 to 5 years is analyzed.

STRATEGY Determination of basic long term goals. Objectives of an enterprise Adoption of courses of action Resources required

Organizational Goals

In a one day cricket match the objective is to win the match by outscoring the opposing team. The game plan to achieve victory is called strategy. Tactics are the decisions that a player or the team adapts according to the situation of the game. CHARACTERISTICS OF A STRATEGY CONSISTENT > identify the objectives, FLEXIBLE > adapt the changes. RESPONSIVE > From market IMAGINATIVE > Inspires commitment VISIONARY > Futuristic CHALLENGING > Required effort REALISTIC > Achievable FOCUSED > Clear defined FIVE Ps of strategy Plan > Described as some sort of consciously intended course of action. Ploy > Referred to as a GIMMICK OR TRICK intended to outwit competitor. Pattern > A plan requires a stream of actions what we call a pattern. Position > Defined in the context of its competitors with respect to markets or environment. Perspective > Fact that shared by members of an organization through their intentions & their actions.

CORE COMPETENCIES & STRATEGIC OUTSOURCING 1- Concentrating the firms own resources on a set of core competencies where it can achieve excellence and provide unique value for its customers. 2- Strategically outsourcing other activities, where there is neither a strategic need nor special capabilities. Benefits of 1 & 2 Maximize Return on internal resources by concentrating on activities that the firm can do best. Formidable Barriers are well developed core competencies that provide barriers against competitor. Full utilization of suppliers investments, innovations and professional capabilities to your own interest. Joint strategy decreases the risk factor, lowers the investments and creates better responsiveness to customer needs.