Entrepreneurship QTR 1 PDF

Entrepreneurship turned into either a physical products or non Transcripted by Christian physical products. One great thing about being an entr...

Entrepreneurship turned into either a physical products or non Transcripted by Christian physical products. One great thing about being an entrepreneur is that the rewards are really great to those who CONCEPT OF ENTREPRENEURSHIP are ready to take the challenges. An entrepreneur must be willing to take risk To most people, Entrepreneurship means and prepare for the worst possibilities. putting up a business. THEODORE ROOSEVELT said “It is hard Economist believe that it is more than simply to fail, but it is worse never to have tried to starting it. succeed” For the Business People, an entrepreneur is someone who is willing to bear and take the WHO IS AN ENTREPRENEUR 7 risk of creating a new venture if there is a substantial potential for growth and profit. Economist Joseph Schumpeter (1883-1950) An entrepreneur is an individual who plans, -1 studied how the entrepreneurs are motivated to organizes to become a business. Idea creation took, innovate and create new and better ways is one; and operates a business or businesses, of doing business. taking greater financial risk, psychic and social Peter Drucker (1909-2005) describe an risk. entrepreneur as someone who searches for things to change, respond to it by researching and taking new ideas and trends, and exploits these changes as an opportunity to create and deliver something better Others believe that entrepreneur’s role is to be Y1 He is someone who creates, looks for ideas for business, which is then implemented the real deal is starting the business and making the idea a reality. There are lot of people who have great ideas in mind but failed to start, until someone started 12 the innovator of new products and services. it. Most economist and business people agree that IMPLEMENTATION AND PASSION IS entrepreneurship is a necessary component in THE KEY. encouraging economic growth. It also gives The more passionate the entrepreneuR is, the employment opportunities to the increasing more initiatives, hard work, patience the workforce, and helps resolves poverty in the entrepreneur will give for the success of the EM society. business. WHAT IS ENTREPRENEURSHIP? 13 ENTREPRENEURIAL COMPENTENCIES It is defined as the process of creating McClelland and McBer (1985) refers to the something new whether be it a product or fundamental characteristics and traits possessed by ST services that brings value by devoting the successful entrepreneurs that made them succeed in necessary time and effort considering the their chosen enterprise. financial, psychic, and social risk,` and receiving the resulting rewards of monetary 1. Initiative and personal satisfaction and independence. - the entrepreneur should take initiative in To be an entrepreneur or a businessman means learning their industry they belong to, go the someone has to be able to create something extra mile, and do more what is expected from new that can offer value to its chosen market them. to be able to get something in return and Examples: convert it to a profitable business. - Does things before being asked or PRODUCTS ARE CREATED BECAUSE compelled by the situation. OF A BIRTH OF AN IDEA, which is then - Acts to extend the business into new areas, products or services 1 2. Sees and acts on opportunities - A company that doesn’t innovate will for sure - an entrepreneur always has the eyes for new lose in the game. opportunities and most importantly acting on Examples them. - States a desire to produce or sell a top - It is important to always look at the industry or better quality product or service. trends, anticipate needs of customers, as well - Compares own work or own as opportunities that could help them expand company's work favorably to that of their existing business. others Examples - Sees and acts on new business 6. Commitment to Work Contract opportunities. - An entrepreneur places the highest priority - Seizes unusual opportunities to obtain on getting a job completed. 7 financing, equipment, land, work - An entrepreneur should always have in mind space or assistance that company’s reputation builds by delivering great products and service to -1 3. Persistence customer, and delivering on time is very - An entrepreneur is able to make repeated important. efforts or to take different actions to Examples Y1 overcome an obstacle that get in the way of - Makes personal sacrifice or expends reaching goals. extraordinary effort to complete a job Examples - Accepts full responsibility for - Takes actions to overcome an problems in completing a job for obstacle/problems encounter. customers - Takes action in the face of a - Pitches in with workers or works in significant obstacle. their place to get the job done. 12 - Expresses a concern for satisfying the 4. Information Seeking customer. - An entrepreneur is able to take action on how to seek information to help achieve business 7. Efficiency Orientation objectives or clarify business problems. - A successful entrepreneur always finds ways Examples to do things faster or with fewer resources EM - Does personal research on how to or at a lower cost. provide a product or service Examples - Consults experts or experienced - Looks for or finds ways to do things persons to get relevant information faster or at less cost - Seeks information or asks questions to - Uses information or business tools to clarify a client's or a supplier's need improve efficiency ST - Personally undertakes market - Expresses concern about costs vs. research, analysis or investigation. benefits of some improvement, change, or course of action 5. Concern for High Quality of Work - An entrepreneur acts to do things that meet 8. Systematic Planning certain standards of excellence which gives - An entrepreneur develops and uses logical, him greater satisfaction. step-by-step plans to reach goals. - The entrepreneur should always strive to - “Failing to Plan is Planning to Fail.” improve and enhance the products or Examples service in order to deliver the best work for - Plans by breaking a large task down its customers. This is the reason why into sub-tasks companies have their Research and - Develops plans that anticipate Development (R&D). obstacles - Evaluate alternatives 2  - Takes a logical and systematic - Asserts own competence, reliability, or approach to activities other personal or company qualities 9. Problem Solving - it is a requirement for an entrepreneur to know 13. Use of Influence Strategies how to solve problems if he wants the - An entrepreneur is able to make use of business to be in the market for long time. influential people to reach his business goals. Example - Developing a great relationship with other - Switches to an alternative strategy to businesspeople is a very important task of an reach a goal entrepreneur. - Generates new ideas or innovative Examples 7 solutions - Acts to develop business contracts - Uses influential people as agents to 10. Self-Confidence accomplish own objectives -1 - A successful entrepreneur has a strong belief - Selectively limits the information in self and own abilities. given to others Examples - Uses a strategy to influence or Y1 - Expresses confidence in own ability to persuade others complete a task or meet a challenge - Sticks with own judgment in the face CHARACTERS OF AN ENTREPRENEUR of opposition or early lack of success 11. Assertiveness A good entrepreneur has a set of attributes that - An entrepreneur confronts problems and demonstrate qualities of creativity and leadership. 12 issues with others directly. - As entrepreneur, you must have the courage 1. Ambition in looking for solutions, and find for A successful businessman is motivated to resources, and even people who can help in make something out of himself. He knows what he those tough times. wants, and he is setting a course for achieving it. Often Examples his desire to do something can be daunting and the EM - Confronts problems with others drive to create himself can be very consuming. The directly passion of an entrepreneur is often the main ingredient - Tells others what they have to do which takes him off his chair and brings him into - Reprimands or disciplines those practice, making his daydreams a reality. failing to perform as expected 2. Enthusiasm Also going hand in hand with determination, ST 12. Persuasion - An entrepreneur can successfully persuade or passion plays a big part in inspiring the entrepreneur. influence others for mobilizing resources, Although ambition is perhaps the key to the ignition of obtaining inputs, organizing productions and the entrepreneur, excitement is the gas. Every selling his products or services. successful businessman has a positive outlook which - Means influencing others reach company gives him the energy to pursue his endeavours. An goals. Great entrepreneurs are great entrepreneurial project will gradually wither away into salespeople. inactivity and failure without enthusiasm. Examples - Convinces someone to buy a product 3. Creativity or service You can rely on imagination to help you out - Convinces someone to provide when problems occur. In the first place, creativity is financing probably what led you to envision your company and it will be creativity that will help you understand the 3 potential solutions to any hitches that may come your - on the other hand, it is equally a great feeling way. Successful entrepreneurs will find motivation in to be able to help customers by providing the process, and also find ways to turn roadblocks into products that they need. opportunities. - entrepreneurs are also able to help workers provide for their families. 4. Decision-making Entrepreneurs call in all the actions needed. POSSIBLE PROBLEMS Although their imagination makes them men of ideas, ENTREPRENEURS WILL FACE that will make them men of action is their ability to make decisions. The decisions taken by businessmen 1. Usually business demands more hard work. will decide the company's destiny, because it is only by 2. It also demands long working hours. 7 decision-making that things really will happen. An 3. It requires a lot of sacrifices. entrepreneur with poor decision-making skills will see 4. Can cause a lot of emotional and his company placed in a state of inactivity and -1 psychological stress. degradation; good decision-making skills, on the other 5. Unforeseen Event. hand, will ensure the best possible steps are applied in setting up the firm. Y1 ENTREPRENEUR AS A CAREER 5. Perseverance Maybe the most significant of all - As an entrepreneur, you need to be work hard, entrepreneurs' characteristics is their ability to be smart in making decisions, creative and withstand the troubles that come with starting a think about improvement of the business, and company. Starting a new company is an incredibly willing to take risk. challenging experience and as an entrepreneur, if you - To be successful in the career of entrepreneur, 12 want your venture to be a success, you'll have to stick one must have a heart to do everything. through the storms and pressures. It often takes years - One of the best things about being an for a good idea to start making money, but when it entrepreneur is the wide open possibilities. does, you'll be pleased that you've stood up against - There are also downwards of entrepreneurship. adversity. As the owner of a starting business, you will be in charge of everything. EM REWARDS OF AN ENTREPRENEURSHIP - the opportunities are endless. The rewards can be high as well are the risk. - but if you are driven, passionate, creative, Some of the rewards of being an entrepreneur: willing to learn and desire to be your own boss. This may be the right career for you. 1. Financial Reward (Money) - “FIND OUT WHAT YOU LIKE DOING - the ultimate reward of an entrepreneur. ST BEST, AND GET SOMEONE TO PAY YOU - every business venture aim for profitability. FOR DOING IT.” — Katherine Whitehorn 2. Freedom - Truly entrepreneur is a ticket to freedom. FAMOUS TIPS FROM - as an entrepreneur, you have the freedom to SUCCESSFUL BUSINESS LEADER work at your own pace and decide on how to grow a business. - “Success is not necessarily connections, or - “Freedom... To ask nothing. To expect nothing cutting concerns, or chamba -the three Cs of and To depend on nothing.” bad business. Call it trite, but believe me: Success can be achieved through hardwork, 3. Psychological Rewards frugality, responsiveness to change and most - If financial goals are reach, one feels less of all. boldness of dream. These have never stress. been easy slogan for me. I have lived Them.” 4  — John Gokongwei Jr. Chairman, JG - Google co-founder Brin has a net worth of Summit Holdings $47.5 billion in March 2018, making him the 13th wealthiest person in the world. - “The more bitter the lesson, the greater the future success.” — Lucio Tan Chairman and 5. Elon Musk CEO LT Group Inc. - An Internet mogul who founded Paypal, SpaceX and Tesla Motors, Musk's net worth of - “I was born poor, but poor was not born in $20.8 billion in September 2018 placed him as me” — Manny V. Pangilinan, Chairman the 54th richest person in the world. Metro Pacific Investment Corporation 6. Mark Zuckerberg - The Facebook founder had an estimated net - “There is no such thing as overnight success worth of over $71 billion in March 2018, 7 or easy money, if you fail, do not be making him the 5th richest person in the discouraged; try again. When you do well, do world. In January 2013, Zuckerberg reduced h not change your ways. Success is not just is annual salary base to $1. -1 goodluck: it is a combination of hard work, good credit standing, opportunity, readiness MARKET NEED ANALYSIS and timing. 'Success will not last if you do not Y1 care of it.” — HENRY SY, Chairman and CEO SM Investments Corporation - Is a quantitative and qualitative assessment of a market ability to respond positively. It looks - “Dreams are free, so why limit what you are into the size of the market both in volume and aspiring for? But dreaming is not enough. One in value, the various customer segments and needs to put in enough energy and input.” — buying patterns, the competition, and the TONY TAN-CAKTIONG, FOUNDER economic environment in terms of barriers to 12 Jollibee Foods Corporation entry and regulation in industry. 1. Demographics and Segmentation MOST SUCCESSFUL ENTREPRENEURS - Demographics identify markets based on IN THE WORLD demographic characteristics, while segmentation divides into similar segments EM 1. Jeff Bezos based on size and market value, allowing - Founder of Amazon.com, Jeff Bezos has an competitors to focus on specific segments. approximate net worth of $159.6 billion in September 2018, doubling his net worth from 2. Target Market just 12 months prior and making him the - This is the type of customers that are focused richest person in the world. within the market. It is focused on the more qualitative side of market analysis by looking ST 2. Bill Gates what drives the demand. - Microsoft founder Gates is the second richest person in the world, with a net worth of over 3. Market Need $90 billion in September 2018. - Investors must determine the needs of the market through analysis based from research 3. Larry Ellison conducted focusing on their needs. Identify - Oracle founder and CEO, Ellison is now a what the customer wants to classify their full-time philanthropist with a net worth of needs. $58.5 billion in March 2018, making him the 10th richest person in the world. 4. Competition - Determining the competitor’s positioning and 4. Sergey Brin describe their strengths and weaknesses. 5  products are expensive because of the quality of the materials used. BARRIERS TO ENTRY - Non-durable goods are the physical products that are quickly and easily be consumed or 1. Investment (project that requires a huge worn out, become obsolete, unfashionable or investment) no longer popular. These products are 2. Technology (application of the combination of inexpensive and can easily be damaged. science and engineering) 3. Brand (the huge marketing costs required to Services – are intangible products that satisfaction can get to a certain level of appreciation) be measured in future preferences. 4. Regulations (licenses and permits in - Rented-goods services are the consumer particular) rented facilities of the sellers in a certain 7 5. Access to resources (exclusivity with period of time. suppliers, availability of supliers) - Owned-goods services are the repair and 6. Access to distribution channels (exclusivity maintenance services rendered by the sellers to -1 with distributors, availability of the products of the customer. intermediaries) - Non-goods services is personal service on the 7. Location (place, venue where the business is part of the seller; most common are the Y1 located) expertise and profession of the seller. CUSTOMER SERVICE IN THE ENTERPRISE PRODUCT: ITS NATURE AND SUSTAINABILITY 1. Define/list the customer service the company can provide. LEVELS OF PRODUCT 2. What are the company’s service strengths and 12 weaknesses? 1. Tangible products are the basic physical 3. Give strategies for improving the company’s appearance which can be a service or idea customer service. having precise specifications and is offered under a given/specified description or model CHARACTERISTICS OF SERVICE number. EM 2. Augmented products includes the image and 1. Intangibility if the services that cannot be service features of a certain entity. It gives displayed, transported, stored, packaged, or emphasis on the intangible benefits that the inspected before buying. customer will be getting from buying the 2. The credibility of the service provided most of product. the time counts. 3. Generic product emphasizes the impact of the 3. Inseparability is the service provider and product to the consumer, no the seller. This ST services that cannot be separated. It cannot will signify the purpose of its existence and the accomplish the purpose if one is missing. primary objective in creating the product. 4. Variability is when the service is difficult to standardize because it varies upon the TYPES OF PRODUCT: performance of the provider. Goods – are sale of the physical products from the Consumer products – these are goods and services manufacturer to the consumer or final and ultimate destined/produced for the final consumer for personal, user. These are tangible products that can measure the family, or household use. The use of the goods or satisfaction with result or evidences as manifested services designates it as a consumer product. through physical development. Convenience products are purchased with - Durable goods are the physical products that minimal effort due to consumer’s prior knowledge of are used over a long period of time. These product characteristics, preferring substitutes over searching for information. Categories are: 6  1. Staples - basic needs Product warranties – are crucial attributes that ensure 2. Impulse - wants; not needed a product meets its label specifications, and are legally a. Shopping products - required further interpreted to guarantee the product’s quality. research before buying b. Specialty products - loyalty to luxury TARGET MARKET brands/products Industrial products – are goods or services used in According to Philip Kotler (p.d), target market production, business operations, or resale, categorized is well defined set of customers whose needs the by decision-making complexity, cost, consumption organizations plan to satisfy. speed, product role, and form change. Target market must be defined in terms of size, These are the following: demographics, growth prospects, trends, and sales 7 1. Accessory equipments are affordable, potential market and the total aggregate sales of the long-lasting portable goods that require competitors. moderate consumer. -1 2. Raw materials are unprocessed basic DESCRIPTION OF TARGET MARKET materials from extractive and agricultural industries, which are primarily sourced from 1.) Distinguish or determine the consumer from the customer. Y1 the natural environment. 3. Industrial or operating supplies are 2.) Enumerate the benefits of the proposed inexpensive convenience goods which are product to the target market rapidly consumed and are necessary for the 3.) How and why would the target market buy the day-to-day basis. product or service? 4. Component materials are semi-manufactured 4.) Is there a potential to increase the target goods which undergo further changes in form market? 12 and later to be a part of the finished product. 5. Installations are very expensive materials, BUSINESS TO BUSINESS MARKETS INCLUDE: non-portable goods which are used in the production process and do not become part of 1.) Target market the finished product. 2.) Frequency of product purchase 6. Fabricated parts are finished products of other 3.) Tendency for the replacement needs versus EM companies which form part of the expansion purchasing process manufactured product without further changes 4.) Estimates of market size, initial targeted in form, but give added features to make a new geographic area, entrepreneur’s targeted product. market share. \ PRODUCTS SATISFYING FEATURES BUSINESS TO CUSTOMER MARKETS INCLUDE: ST Design – crucial for satisfying customers and gaining a competitive advantage, as it enhances product 1.) Demographic factors, such as income level, marketability and distinguishes it from competitors. age range, gender, educational level, ethnicity Product colors – customer rejection or acceptance in of the target market; products like clothing, cars, or furniture can lead to 2.) Psychographic factors of the target market; differential advantage in choosing the right color 3.) Behavioral factors such as market frequency of combination, challenging for fashion enthusiasts. the product purchase and shopping behavior of Product quality – refers to the feature and attributes the market. of a product or service that satisfy human needs, varying from individual to individual perceptions and CATEGORIES OF CONSUMER expectations, with optimal quality meeting customer expectations. 1. Price Shoppers – (praktikal) this group is interested in the best deal for a product. 7  2. Brand loyal customers – this group believes Gives the company a competitive edge in that their present brands are superior to others industry; and are willing to pay fair prices to acquire it. Gives the company a good reputation; 3. Status seekers – people who are interested in Makes a business profitable and get a new prestigious brands, and willing to pay at any investment; price. Bring a financial stability in the organization. 4. Service of feature shoppers – this group seeks a high value on customer and service and product features and will pay for them 5. Convenience shoppers – people who value - END - nearby locations, long store hours, and are willing to pay for easier shopping. Good luck on exams, dash 17! 7 Seamless Sensation - The online and offline experiences are -1 intertwined as consumers navigate their daily lives seamlessly, resonating with both physical and the digital realm. - CUSTOMER REQUIREMENTS Refers to the specifications or features of a product or services that are deemed necessary/need by customers. Y1 12 1. Develop customer-focused business strategy - An approach or strategy in business that prioritizes customers’ need, expectations, and satisfaction above all. EM 2. Listening to the various customer complaints - The organization must conduct survey on various complaints of the customers. 3. Learn how to identify customer segments - In identifying customer segments, select a ST specific process output and the list of customers on the product or service. 4. Present finding to participants - Customers have needs and requirements. A customer need establishes the relationship between the organization and the customer. Requirements are those characteristics that determine whether or not the customer is happy. Customer requirements; 8