Processes and definitions of Enterprise and Entrepreneurial Management Essay

Processes and definitions of Enterprise and Entrepreneurial Management - Essay Example The consideration of the above factors does assist an entrepreneur in achieving success in the business venture he intends to get into. A business plan includes the business idea that an entrepreneur is considering venturing into. It also describes his reasons for venturing into the business, his financial ability to invest in the venture, the location of his business and the available sources of raw materials (Parker, 2004). Strategic Objectives These are the goals that a business sets to achieve in the short and long run periods. They assist in the formation of the long-term plans in order to achieve a specific purpose for the business (Wiklund, 2006).These objectives are made by the strategic management in a business. They formulate these strategies to achieve the objectives that the business first intends to achieve (Landoli and Landstorm, 2007).When coming up with the strategic objectives for the business, the management will need to consider their scope of operations, their fin ancial abilities, their target customers along with their levels of income. The adoption of a strategy involves the interaction of societal, intellectual, monetary, political and emotional forces (Wiklund, 2006). When formulating strategic objectives, the consideration of the above issues will greatly enable an entrepreneur to achieve success in his business endeavors. A business plan has to incorporate the objectives that the entrepreneur aims to achieve in the long run and the means of achieving them (Landoli and Landstorm, 2007). Market Analysis and Research Market analysis involves the carrying out of extensive investigations into the elements that affect the market of a certain commodity or product (Parker, 2004). The market needs to be analyzed in terms of the supply of the raw materials, the demand for the products and services and the cost and availability of the raw materials requires for business (Fischer, 2007). The market analysis can also involve the assessment of the a ccessibility to the business by the customers and an analysis of the target market. When a proper analysis is done on the above conditions, success is likely to come to the entrepreneurs venture. The analysis should provide direction on what are the strengths and weaknesses of the business, the growth opportunities the business has and the threats the business is likely to encounter (Parker, 2004). A business plan should include the type of customers a business will deal with, the overall market share the business intends to control, the pricing strategy to be put to use, and the sales, promotion and distribution strategies to use in the business (Parker, 2004). A statement of the research methods that a business plans to use is also on display in the business plan. Research helps in the creation of better products that assist in satisfying the customer’s needs in a more cost effective way. It also assists an entrepreneur in learning the newest methods of producing goods that are of more superior quality than those currently in use by the consumers. Research is very essential for a success to be achievable in the efforts of an entrepreneur. This is because it gives him or her greater insight into their market systems thus enabling him to build a

Why might an existing non-franchised business choose to become a Essay

Why might an existing non-franchised business choose to become a franchisor - Essay Example The motive is consistent with the resource allocation theory that stipulates that organizational units are most productive when tightly controlled (Ashar & Shapiro, 1988), although the new resource-based view of the theory advocates value creation by combining local (or franchisee) and central (or franchisor) advantages (Combs, 2003). The motive was a major driver of franchising among American auto manufacturers in the 1900s (Combs, 2003). The auto manufacturers lacked funds to open dealerships across the country. Their workaround to the problem was to create chains of franchises across the US. The franchisees invested in stocks of vehicles and premises. In return, they enjoyed exclusive marketing territories. Although a business may want a franchise in order to use other people’s funds to grow, some scholars have cast doubt over the cherished notion that the ability to expand without investing their money and retain control over operations is one of the main reasons firms fra nchise. Franchisee financial constraints are a major cause of poor relations between the franchisor and franchise and a threat to the survival of both (Dada, et al., 2009). If this argument is true then it defeats the logic of the franchisor seeking to expand using the franchisee’s capital. A number of reasons explain the occurrence of such a situation. First, some franchisees may falsify their financial position in order to meet the stringent requirements of the franchisor. Such falsification of information, coupled with lack of due diligence on the part of the franchisor creates a situation where the franchise starts the franchise with inadequate capital. Shortly afterward, the franchise becomes unable to provide the product they set out to provide. Even in the absence of documented cases of this nature, the risk of such a scenario is real. The implication is that a business that is desirous of adopting a franchise model as a