bpd-i-final_1

8/7/2019 BPD-I-Final_1

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BUSINESS PLANDEVELOPMENT

MMS SEMESTER-II


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Contemporary BusinessEnvironment


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Wh

yentrepreneursh

ipeducation?


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Employee Intrapreneur

Intrapreneurship is theactofbehaving likeanentrepreneur,except withina largerorganization.

Intrapreneurshiprefers toemployee initiatives in

organizations to undertake someth

ingnew, withoutbeingaskedtodo so."

Hence,theIntrapreneurfocuses on innovationandcreativity,andtransforms an idea intoaprofitableventure, whileoperating withintheorganizational

environment. Thus, intrapreneurs areInsideentrepreneurs whofollow thegoal oftheorganization.

Intrapreneurship is anexampleofmotivationthroughjob design,eitherformallyor informally.


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Entrepreneurship:A Perspective

Entrepreneurship is morethanamerecreationofVENTURE. Its a

Mindset It is seekingopportunities,takingrisks

beyond security,andhavingthe

tenacitytopushan ideat

hroug

hreality.


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Who is an Entrepreneur???

Anentrepreneur is an individual whoacceptsfinancial risks and undertakes new financialventures. The wordderives fromthe French

"entre" (toenter)and"prendre" (to undertake),and inageneral senseapplies toanypersonstartinganew projectortryinganewopportunity.


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Contd..

Entrepreneurial process is definedas involvingallthefunctions,activities,andactions associatedwithperceivingofopportunities and creationof

organizations topursuethem Schumpetertiedentrepreneurshiptothe creationoffive basic new combinations namely:introductionofanew product, introductionofanew methodofproduction,openingofanewmarket,the conquestofanew sourceofsupplyand carryingoutofanew organizationof industry.


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Difference between Businessman &Entrepreneur

Anentrepreneurone who initiates, conceptualizeandmaterializea business process which isentirely unique. Inotherwords anentrepreneur is

someone who starts a business fromafresh ideaandmake it work.

A business manone who starts a business onanexistingmarketplatform laid bytheentrepreneurs.Inthis context it we can seethatentrepreneursweighmorethana business man.

It is usuallyanevolution.A businessmantransforms intoanentrepreneur


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Difference between Businessman &Entrepreneur

Businessman Entrepreneur UsuallyaprofitorientedCustomeroriented Usuallyplays safe Boldandambitious

Generallytraditional An innovator


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Basic Types ofEntrepreneurship

Opportunity-based entrepreneurshipanentrepreneurperceives a business opportunityand chooses topursuethis as anactive career

choice.

Necessity-based entrepreneurshipanentrepreneuris left withnootherviableoptiontoearna living. It is notthe choice but compulsion,whichmakes him/her, chooseentrepreneurshipas acareer.


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Factors conduciveforentrepreneurs in India

IndiahighonConsumerconfidence Index Huge Domestic Demand Sterling Demographic Dividend


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19th century Entrepreneurs

HENRY

FORD

WALT

DISNEY

JAMESETJI

TATA

ESTEE

LAUDER Wanteda betterqualityof life Hadavisionofthefuture Experimented & Constantly Improvedtheiroffer Soughthelpfromothers Ignorednegativeviews

Notdeterred by setbacksCombinationofIDEAS + DREAMS + EXPERIMENTATION


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20th century Entrepreneurs

Dhirubhai Ambani - A visionary Verghese Kurien The Milkman of India N R Narayana Murthy Powered by Intellect

and Driven by Values Karsanbhai Patel Naresh Goyal Ratan Tata Subhash Chandra Vijay Mallya Tulsi Tanti


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21st century Entrepreneurs


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Global Entrepreneurship Monitor(GEM) -2002

Among 28 countries, India is highest in Necessitybasedentrepreneurship, whereas it is 5thfromthelowest inopportunity basedentrepreneurship.

India TEA 12.1% Chinas averagerateofEntrepreneurshiphas averaged 14.1%.

World Average = 10.6% Asia (11.2%) Europe (6.4%)

NorthAmerica (13.4%) SouthAmerica (19.2%) Middle East (11.8%)


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Social entrepreneurs

A social entrepreneurrecognizes a social problemand uses entrepreneurial principles toorganize,createandmanageaventuretoforge social change.

Unlike business entrepreneurs,theydontmeasureperformance inprofitandreturns, butassess successbythe impacttheyhaveon society

Ashoka Fellow is anonprofitorganization supportingthefieldofsocial entrepreneurship.Ashoka was

founded by Bill Drayton in 1981 to identifyandsupport leading social entrepreneurs througha SocialVentureCapital approach


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Social venture capital

Social venture capital is aformofventurecapital investingthatprovides capital tobusinesses deemed sociallyand

environmentallyresponsible. Theseinvestments are intendedtoprovide bothattractivereturns to investors andtoprovidemarket-based solutions to social and

environmental issues.


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Fabindia - John Bissell

Fabindia is synonymous withthe country'shandloom couturerevolution. The birthofthechain in 1960 markedthe beginningofthe

transformationoftraditional Indianfabrics intofashiontextiles forapparel anddesignerhomedecor. Italsopushedtraditional Indian weavestotheAmericanmarket.


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Vishal Talreja CofounderDreamA Dream

Empowering childrenfromvulnerablebackgrounds bydeveloping life skills,

Today, Dreama Dreampartners with six

NGOs. Dreama Dreamruns structuredprograms inthesepartnerships:fordevelopmentof life skills inthese children


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Mitra Technology SocialEntrepreneurship

Owns andmanages Indias largestvolunteerplacement initiative iVolunteer


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Entrepreneurofthe Year ETAwards

Narendra Mukumbi Shree Renuka Sugars


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Background?

Theirapproach?

What is Common among thesepeople?


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Background

SUHASGOPINATH

MONEY?

AGE?

RAYKROC

LAKSHMIMITTAL

VIJAY MALLYA


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DHIRUBHAI AMBANI NARAYANMURTHY

EDUCATION?

Background


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How havethey builtsuchgreatempires?

IS THERE A METHOD INTHEIR MADNESS?


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THE ENTREPRENEURSHIP PROCESS

SPOTTINGOPPORTUNI

TY

IDENTIFYINGRESOURCES

ACQUIRINGRESOURCES

MANAGINGVENTURE

(Capturing opportunity without owning resources)


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BUSINESS CHALLENGES CurrentBusiness Scenario

Managing Bottom line

Meeting stakeholders expectations

Developingandretainingtoptalent

Creatinga customerresponsiveorganization

Diminishingtimetomarket

Marketagility

Pricingandquality


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What do you mean by BusinessEnvironment???

Theenvironmentofanyorganization is theaggregateofall conditions,events and influencesthat surroundandaffect it.

Characteristics ofBusiness Environment: Complex

Dynamic Multi-faceted Far- reaching impact


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Types ofEnvironment

Internal Environment External Environment

o Microenvironmento Macroenvironment

EconomicNon Economic


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Internal Environment

Refers toall thefactors thatare withinanorganization whichimpartstrengths or cause weaknesses of strategic nature.

Controllablefactors. These include:

Value system

MissionandObjectives

Management Structureand Nature


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Components of Internal Environment

Human Resources

Company Imageand Brand Equity

OtherFactors

Physical Assets and Facilities

R & D and Technological Capabilities

Marketing Resources

Financial Resources


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External Environment

Includes all factors outsidetheorganization whichprovideopportunities orposethreats totheorganization

Uncontrollablefactors

Consists of Micro and Macro environment


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Micro Environment

It consists of the factors in the companysimmediate environment that affect the

performance of the company.


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Micro Environment Factors

SuppliersCustomersMarketing IntermediariesCompetitors

PublicsFinancial Community


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Macro Environment

It comprises general trends and forces thatmay not immediately affect the organizationbut sooner or later will alter the way

organization operates.

Macro Environment :- Economic

Non Economic


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Economic Environment

Economic stages thatexists atagiventime ina country Economic systemthat is adopted bya countryforexample.

Capitalistic, Socialistic orMixed Economy Economic planning, suchas fiveyearplans, budgets,etc. Economic policies forexample,monetary, industrial and

fiscal policies Economic Indices suchas National Income,PerCapital

Income, Disposable Income, RateofgrowthofGNP,

Distributionof Income, Rateofsavings, BalanceofPayments etc. Economic Problems Functioningofeconomy


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Non Economic Environment

Regulatory Environment

Socio- Cultural Environment

Demographic Environment

Technological Environment

Political Environment


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Non- Economic Environment

Cultural Environment

Social Customs & Rituals andpractices

Lifestylepatterns

Family structure

Role & positionofmen, women, c

hildrenandaged infamily & society


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Non- Economic Environment

Demographic Environment

Growthofpopulation

AgeComposition

Life Expectancy

Sex Ratio

Fertilityand Mortalityrates

Inter-statemigration


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Macro Environment

Technological Environment

Sources oftechnology

Technological development

Impactoftechnology

Political Environment

o Political parties inpower

o Political Philosophy


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Macro Environment

Regulatory Environment

o Constitutional framework

o Policies relatingtopricingandforeign investment

o Policies relatedtothepublic sector, SSIs,developmentofbackwardareas and control of

environmental pollution


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International Environment

Importantfactors thatoperateatglobal level whichhavean impactonorganizationare:

Growthofworldeconomy

DistributionofworldGDP

International institutions IMF,WTO ILO

Economic relations betweennations

Global humanresource-natureandqualityofskills,mobilityof labor

Global technologyandquality standards

Global demographic patterns


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Environmental Analysis

Environmental ScanningTheprocess by whichorganizations monitortheiropportunities andthreats affectingtheirbusiness is

knownas environmental scanning

SWOTAnalysis


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ComparisonofPriorandContemporaryBusiness Environment

Manufacturing

Prior BusinessEnvironment


Basis ofcompetition Economies ofscale,standardization Quality,functionality, customersatisfaction

Manufacturingprocess

Highvolume, longproductionruns, significantlevels of in-process andfinished inventory

Low volume, shortproductionruns,focus onreducinginventory levels andothernon-valueaddedactivities and

costsRequiredLabourskills

Machine-paced, low levelskills

Individuallyandteam-paced,high-level skills

Emphasis onquality

Acceptanceofanormal orusual amountofwaste

Goal ofzerodefects


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Contd..

Marketing


ContemporaryBusinessEnvironment

Products Relativelyfewvariations, longproducts life cycles

Largenumberofvariations, shortproduct life cycles

Markets Largely Domestic Global


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ContdManagement Organizations



Focus Financial measures ofperformance

Non Financial Measures suchas quality, customerservice,timetodelivery

Managementorganizationalstructure

Hierarchical, commandandcontrol

Network basedorganizationforms,teamwork focus employeehas moreresponsibilityand control,coachingratherthancommandand control

Management

focus

Emphasis onthe shortterm,

shorttermperformancemeasures and compensation,concernforsustainingthecurrent stock price,myopicfocus

Emphasis onthe longterm,

focus on critical successfactors, commitmenttothelongterm success ofthefirmincludingmaximisingshareholdervalue


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Tools for Analyzing Macro Environment

PESTAnalysis PESTLE STEEPLE

o

S - Socialo T - Technologicalo E - Economico E - Environmentalo P - Politicalo L - Legalo E - Ethical


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Emerging Business Opportunities

Organic food is thegrowingmarket segment in Indiaestimatedto bearound 1500cr,mainplayers areConscious food, Downto Earth,Angel foods and Motherearth.Challenges are certificationandPricing

Rural BPOs anemergingoutsourcing story in India

Agrotourism Coxand Kings took to Israel. Travelcompanies design special tours forfarmers thatgivethempractical training. Notonlytoforeign countries butalsointernal i.e. within India. Kesari is organizing bytaking 2000farmers within India.


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Emerging BusinessOpportunities

TataAIGGeneral Insurancehas launchedHNIsjewelleryandvaluables insurance:has designedspecializeddivisionprivate clientgrouptoprovidetheseservices be ithighend cars,rarepaintings,etc

Private jets & luxury choppers anemergingopportunityin India: ReligareAviationthe charteredairservicewants totapthegrowingdemand

Luxury cell phones notonlyforcommunication butasstatus symbol:ConceptofDesignerphones to capturethepremiummarket byChristian Dior, Nokia,Gucci


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BRIC Economies &Entrepreneurship

BRAZIL:

Roughlyoneofeightadults are selfemployedandtherestare workingforsmall companies.

UnfortunatelyforBrazil mostoftheseentrepreneurialminds donotoperategrowth companies butrun

small shops,restaurants andare streetvendors.Theseentrepreneurs areentrepreneurs outofnecessity inorderto survive.

In western countries mostentrepreneurs areentrepreneurs outofopportunity.


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Contd..

RUSSIA

Very low onentrepreneurshipduetoexistingnewpolitical and legal institutions

CHINA

Chineseentrepreneurs arevery important.Whenforeigndirect investments eventually start slowingdowneconomic growthhas to comefromdomestic consumptionandentrepreneurship. So,

inorderforChinatothink aheadandplanfor itsfutureChinaneeds todevelopanenvironmentthat supports domestic entrepreneurship.


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Thank You

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