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ENTREPRENEURSHIP

ENTREPRENEUR
• The word “ENTREPRENEUR” is derived from the French word entreprende which means “to undertake” .The Webster Dictionary explains that the term entrepreneur is applicable to one who organizes , manages , & assumes the risk of a business or enterprise.

• ROLE OF AN ENTREPRENEUR • Hebert & Link (1989) have come up with elaborate lists of various roles that entrepreneurs play • An individual who assumes uncertainty associated risk • An individual who supplies financial capital • A individual who starts off a new venture • A person who owns an enterprise • An individual who allocates resources among alternative uses • A person who employs factors of production • An individual who is a decision maker • A person who has leadership qualities • A person who manages • An individual who is an organizer & coordinate of economic resources • An innovative person .

is enterprise that has no negative impact on the global or local environment. business is described as green if it matches the following four criteria: • It incorporates principles of sustainability into each of its business decisions. . or economy—a business that strives to meet the triple bottom line. society. In general. • It supplies environmentally friendly products or services that replaces demand for non green products and/or services. social. and environmental benefits—the so-called triple bottom line. or green business. • It has made an enduring commitment to environmental principles in its business operations Another definition • It is a business that “meets the needs of the present world without compromising the ability of the future generations to meet their own needs” A more complete definition: • A sustainable enterprise is one that contributes to sustainable development by delivering simultaneously economic.SUSTAINABILITY OF AN ENTERPRISE Sustainable business. sustainable businesses have progressive environmental and human rights policies. • It is greener than traditional competition. Often. community.

The World’s Largest Organic Foods Retailer WHOLE FOODS MARKET .

Growth Through Differentiation • WFM’s unique value proposition . Whole People.Friendly Operating practices • Whole Foods motto is “Whole Foods. Whole Planet”.  Quality standards  Sustainability  Animal and Poultry standards .

Sustainability • Encouraged production of organically and biodynamically grown produce • Promoted soil conservation • Sold only bird friendly coffee and Sustainable seafood • Usage of natural materials for construction and renewable sources of power • Encouraged recyclable packaging. energy & water conservation • Spoiled produce and biodegradable waste was converted in compost • Store maintenance and cleaning programs were environment friendly • Companies vehicles ran on bio-fuels • Visitors were educated about use of renewable energy and water conservation through brochures and placards .

industree KMF SDM Temple trust ITC Waterhealth .Examples of sustainable enterprises-India • • • • • • • SELCO India GMCL /FRLHT initiatives Mother Earth.

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(b) the element of surprise. Methods used to respond to both the reality and perception of crises." Therefore the fourth defining quality is the need for change. . If change is not needed. and (c) a short decision time. or the general public. • Crisis management consists of different aspects including. Establishing metrics to define what scenarios constitute a crisis and should consequently trigger the necessary response mechanisms. • 1. the event could more accurately be described as a failure or incident.CRISIS MANAGEMENT • Crisis management is the process by which an organization deals with a major event that threatens to harm the organization. The study of crisis management originated with the large scale industrial and environmental disasters in the 1980s • Three elements are common to a crisis: (a) a threat to the organization. Communication that occurs within the response phase of emergencymanagement scenarios. • Crisis-management methods of a business or an organization are called a crisis-management plan. • 3. its stakeholders.Venette argues that "crisis is a process of transformation where the old system can no longer be maintained. • 2.

TYPES OF CRISIS • • • • • • • • Natural disaster Technological crises Confrontation Malevolence Organizational Misdeeds Workplace Violence Rumours Terrorist attacks/man-made disasters .

typically natural disasters considered as 'acts of God.• Natural crises • Natural crises. When an accident creates significant environmental damage. Exxon Valdez oil spill . tsunamis. anddroughts that threaten life. landslides. • Example: 2004 Indian Ocean earthquake (Tsunami) • Technological crises • Technological crises are caused by human application of science and technology. the crisis is categorized asmegadamage. and oil spills. industrial accidents. tornadoes and hurricanes. Some technological crises occur when human error causes disruptions (Human breakdowns). volcanic eruptions. floods. property. and the environment itself.' are such environmental phenomena as earthquakes. storms. People tend to assign blame for a technological disaster because technology is subject to human manipulation whereas they do not hold anyone responsible for natural disaster. Technological accidents inevitably occur when technology becomes complex and coupled and something goes wrong in the system as a whole (Technological breakdowns). Samples include software failures. • Examples: Chernobyl disaster.

• Confrontation crisis • Confrontation crisis occur when discontented individuals and/or groups fight businesses. ultimatums to those in authority. or seeking gain from. a company. • Example: 1982 Chicago Tylenol murders . and various interest groups to win acceptance of their demands and expectations. government. country. or economic system. Sample crisis include product tampering. and espionage. malicious rumors. • Example: Rainbow/PUSH’s (People United to Serve Humanity) boycott of Nike • Crisis of malevolence • An organization faces a crisis of malevolence when opponents or miscreant individuals use criminal means or other extreme tactics for the purpose of expressing hostility or anger toward. sit-ins. and resisting or disobeying police.terrorism. kidnapping. The common type of confrontation crisis is boycotts. perhaps with the aim of destabilizing or destroying it. blockade or occupation of buildings. and other types are picketing.

and the community • Example: Sears sacrifices customer trustIt has 4 stages -precrisis -acute -chronic and -conflict resolution • Crisis of deception • Crisis of deception occur when management conceals or misrepresents information about itself and its products in its dealing with consumers and others.• Crises of organizational misdeeds • Crises occur when management takes actions it knows will harm or place stakeholders at risk for harm without adequate precautions. . crises of deception.Lerbinger specified three different types of crises of organizational misdeeds: crises of skewed management values. This state of lopsided values is rooted in the classical business creed that focuses on the interests of stockholders and tends to disregard the interests of its other stakeholders such as customers. employees. and crises of management misconduct. • Example: Dow Corning’s silicone-gel breast implantCrises of management misconduct • Some crises are caused not only by skewed values and deception but deliberate amorality and illegality. • Crises of skewed management values • Crises of skewed management values are caused when managers favor shortterm economic gain and neglect broader social values and stakeholders other than investors.

Sample is linking the organization to radical groups or stories that their products are contaminated.• Workplace violence • Crises occur when an employee or former employee commits violence against other employees on organizational grounds. • Example: DuPont’s Lycra • Rumors • False information about an organization or its products creates crises hurting the organization’s reputation. • Example: Procter & Gamble's Logo controversy .

better brand recognition. • Exciting. growth is the next exciting challenge.but at the same time growth can make good business sense .GROWTH & EXPANSION • The entrepreneur is that endless challenge seeker. and creating "economies of scale. offering a wider range of products and services to a larger geographical market. building value in the business for employees and customers." . Once their small business is humming along. yes .

or investing in a promising business outside of the scope of the existing business. Diversification can be expanding into a new segment of an industry that the business is already in. • Diversification is part of the four main growth strategies defined by Igor Ansoff's Product/Market matrix: .DIVERSIFICATION • Diversification is a corporate strategy to increase sales volume from new products and new markets.

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energy drinks.Birlas etc have a divesified groups of companies. hotels. watches. Tatas. telecom marketing of eartmovers etc.• Product diversification involves addition of new products to existing products either being manufactured or being marketed. textiles. These are either brand extensions or product extensions to increase the volume of sales and the number of customers. energy. trucks and busses. Expansion of the existing product line with related products is one such method adopted by many businesses. IT. Tatas for instance are in steel. Horizontal Diversification • When the company gets into different types of businesses for the growth of business it is called horizontal diversification .finance tea. cars. Reliance groups of Ambanis . . Adding tooth brushes to tooth paste or tooth powders or mouthwash under the same brand or under different brands aimed at different segments is one way of diversification.gold jewellery.

Exploring of new markets or new territories are one way of increasing the sales but unless the operations are taken to other countries with new products. Diversification into new market is geographical diversification which may require design of new products to suit the tastes of the customers inthe new market. also a ginning factory and later on starts growing cotton in an agricultural farm it is called backward integration under vertical integration. . When the manufacturer of cloth get into manufacturing ready made garments and srarts marketing them under certain brands of their own it is called forward integration.they cannot be considered as diversification in the strict sense.• Vertical diversification When a textile manufaturer of cotton cloth starts a spinning mill.