IB06.ppt
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IB06.ppt
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6PartII:
StartingaNewBusinessPartII:
StartingaNewBusinessEntrepreneurshipandBusinessPlanningLearningGoals1.Identifyadvantages&disadvantagesofbeinganentrepreneur&creatingabusiness2.Identifymarketconditionsthatshouldbeassessedbeforeenteringamarket3.Explainhowtodevelopacompetitiveadvantage4.Explainhowtodevelopabusinessplan5.Identifyrisksofabusiness&explainhowtomanagethem2022/11/72IB-CHAPTER6KeyTermsinitiativesegmentsmarketsharebusinessplaneconomiesofscalebusinessrisk2022/11/73IB-CHAPTER6CreatingaNewBusinessSmallbusinessesarecreatedbyentrepreneurswhohaveabusinessidea&willingtoinvesttheirownmoneytobacktheideaInternetmakestheprocesseasierSomeusefulwebsites:
p1672022/11/74IB-CHAPTER6ResourcesAvailabletoAssistEntrepreneurSBA:
TheSmallBusinessAdministrationwebsitehttp:
/www.sbaonline.sba.govprovidesmanyresourcesrelatedtocreatingasmallbusinessYahoo!
:
Yahoo!
SmallBusinessSitehttp:
/agoodplacetofindlinksformoreinformationAmericanExpress:
AmericanExpressSmallBusinessSitehttp:
/Potential-YourOwnBoss-DirectRewards-Moreself-satisfaction-LossPotential-Accountability-FailurePossibility2022/11/76IB-CHAPTER6EntrepreneurialProfileRisktoleranceCreativityInitiativeneedtohaveambitionneedtobepersistent2022/11/77IB-CHAPTER6MarketConditionsDemandCompetitionLaborconditionsRegulatoryconditions2022/11/78IB-CHAPTER6Demandpartiallyinfluencedbygeneraleconomicconditions:
buymorewheneconomystrong&haveagoodincomeinfluencedbyconditionswithinthespecificmarketofconcerneg.babyclothesnumberofbabybornhotelsinFloridaweatherchangesovertimewithinaparticularmarketAfirmshouldcloselyexamine:
ProductMarketsChangeFlexibility2022/11/79IB-CHAPTER6CompetitionMarketshare:
afirmssalesvolumeasapercentageofthetotalsalesinaspecificmarketLimitedcompetition:
easiertoincreasemarketshare,(higherprice),morerevenueIntensecompetition,marketsharemaydecline,lowerprice,lessrevenue2022/11/710IB-CHAPTER6Competition2022/11/711IB-CHAPTER6Segmentedmarketbytypesofcustomersbyquality2022/11/712IB-CHAPTER6LaborConditionsLaborCostsUnions2022/11/713IB-CHAPTER6RegulatoryConditionsstate/governmentregulationsespeciallyrestrictiveregulationsindustryregulations2022/11/714IB-CHAPTER6ImpactofRegulationsonSmallBusinesses2022/11/715IB-CHAPTER6EffectsofMarketConditionsonaFirmsPerformanceExhibit5.12022/11/716IB-CHAPTER6IndustryResearchAftertrackingpetindustrystatisticsformorethanadecade,TheAmericanPetProductsManufacturersAssociation(APPMA)releasednewfigurestodayprovingthepetindustryisleadingthepack.Petspendinghasmorethandoubledfrom$17billionin1994toaprojected$35.9billionfor2005.And,accordingtotheU.S.CensusBureau,thepetindustryisnowtheseventhlargestretailsegmentinthecountry*.In2005,Americansspendingonpetsisprojectedtobehigherthanever:
$14.5billionforfood$8.8billionforsuppliesandO-T-Cmedications$8.6billionforveterinariancare$1.6billionforliveanimalpurchases$2.4billionforotherservicesPetspendingin2004wasevenmoresuccessfulthanprojected,withtotalsalescominginat$34.4billion.Thispositionsthepetindustry60percentlargerthanthetoyindustry($20billion)and33percentlargerthanthecandyindustry($24billion).Source:
www.appma.org/press_releasedetail.asp?
id=51-33kacessed7/11/052022/11/717IB-CHAPTER6DevelopingCompetitiveAdvantageWaystomaintainorincreasemarketshare:
ONEofFOURLow-costproductionBetterqualitythancompetitorsProductdifferentiationTechnologicalAdvantage(ReviseforGLOBALMarkets)2022/11/718IB-CHAPTER6KeyAdvantagesProduceproductsefficientlyefficientmanagementofHRefficientmanagementofproductionprocessProduceHigher-QualityProductshigherqualitywithoutexcessivecosts2022/11/719IB-CHAPTER6Web-BasedBusinessAdvantageofWeb-BasedBusinessreplaceastorereachadditionalcustomersExpensesofWeb-BasedBusinesscostofdevelopingawebsite&installingashoppingcartsystemcostofscreeningcreditcardpaymentscostofpayingawebsitefirmmonthlyfeecostofpayingmarketingexpensestoincreaseitsvisibilitytocustomers2022/11/720IB-CHAPTER6SWOTAnalysisFirmsuseSWOTanalysistodevelopacompetitiveadvantageAssessstrengthsandweaknessesIdentifyopportunitiesandthreatsUsestrengthstocapitalizeonopportunities&reduceexposuretothreats.2022/11/721IB-CHAPTER6CompetingWithinanIndustryIntensecompetitioncanseparatetheperformanceofwell-managedfirmsfrompoorlymanagedfirmsFirmsshould:
Assessitscompetitors.Developacompetitiveadvantage.2022/11/722IB-CHAPTER6SourcesofIndustryInformationManyfirmsattempttomonitormarketconditionsontheirown.WallStreetJournalValueLineInvestmentSurveyStandardandPoorsIndustryOutlookwww.lib.pdx.edu2022/11/723IB-CHAPTER6ExposuretoIndustryCharacteristicsSomefirmsaremoreexposedtoindustryconditionsthanotherfirms.FactorsThefirmsmarketshareThefirmsfocusonitsmainindustryStarbucksvs.McDonalds2022/11/724IB-CHAPTER6AssignmentUseaSWOTAnalysisforyourcompany.WhichStrategywillyoucompanyuse?
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