Case Study 1. Development of an Entrepreneur
Summary of the case
Entrepreneur has a very important role in an economy. He takes good ideas and right decisions in the market, and by taking risks, he can make more profit. He acts as an innovator and business leader in the process of the development of business. An Entrepreneur can manage the business activity and he can co-ordinate the factors of production. He always faces risk and uncertainty in his business.
In this case study the growth of an entrepreneur named Samuel Truet is analyzed. He faced many difficulties in life and business. With the influence of his wife he succeeded in developing his business as a big one. He got the spirit of business from his wife and he gave its acclaim to his wife. He allowed his children to participate in his business and now they have become famous businessmen. He started a small restaurant in which ‘chick-Fila’ sand which became more popular and he could start ‘chick-Fila’ restaurant franchise chain. He gave more importance to sales promotion like advertisement as an important tool in developing his business. He showed how to make a business move forward effectively. He provided more incentives to his employees and helped them to lead a better life.
Statement of the problem
The main issue or problem discussed in this case study is the development of a successful entrepreneur with the help of various Media and other facilities. To become an efficient entrepreneur he overcomes many problems in life and business. He showed how a business entrepreneur can successfully run and make it the biggest one in the business world.
Proposal to the solution
Samuel Truet’s entrepreneurship started very early and he engaged in many jobs of selling different things. His interest in sales was very clear during his early period. He could generate new orders from consumers which increased the sales and production. He got award for better service in sales and this provided him incentives in the later period. His childhood experience really helped him in his future business journey. He could overcome the problems related to his life and continued his business. He could succeed by participating his family in business. His wife really helped him to develop his business world.
He sent the product to market experts to check the quality and the usage of the product. By doing so he could ensure market for the product. He considered that his employees are the important factor in business. He gave more importance to incentives for the franchise operators as it really helped his business.
Advertising is an important tool which familiarizes the product to the public and informs its usage, sources and price to the consumers. A market manager ensures the company’s message to its potential consumers through advertisement. It created demand for the new product It really helped the salesmen and reduced their selling efforts. By reducing the expense and increasing production, an entrepreneur can make more profit. By using all the advantages of advertising he can lead his business successfully. (Daharwal, 2008).
He gave more importance to consumers and considered them as ‘king’. He ensured quality of the product. He provided various customer services and met the requirements of the consumers; ensured market for his product. He accepted the taste and preferences of the consumers. He took into account the quality of the product. He had higher goals in his business and always tried to achieve that position.
Learning application
When reading this case study, one can realize that having higher goals, risk taking in any circumstances, providing incentives to the employees, giving more importance to sales promotion and consumers, one can become a good entrepreneur.
Case Study 2. Growth of the Business Enterprises
Summary of the case
The growth of the business enterprises is very important for the growth of economic system. Growth of business provides more employment opportunity to the people and it leads to the growth of the economy. Business is carried on by the entrepreneur who invests capital in the production process. If there is a profit in the business firm, it can contribute more to the economy. Business enterprises can contribute large market share if there is profit. All the factors of production are co-ordinated by the entrepreneur and he rewards the factors of production. He takes the risk of business and faces uncertainty in the production process.
Harley’s craze for motorcycling started in his teenage period, in the year 1901. At the age of 21 he could make a plan drawing of an engine which was suitable for a bicycle. With the help of his friend named Arthur Davidson, he introduced the first motorcycle which was known as ‘Harley-Davidson motorcycle’ in Milwaukee, Wisconsin and it was supplied to the public. They got the opportunity to use this new motorcycle. Their first factory named ’Harley-Davidson motor company’ was a small one and it was built with foot wooden shed. The first buyer of Motorcycle was their childhood friend and it was 1903 model. It was C.H Lang of Chicago Illinois; they were traders who sold the product for the first time. Harley-Davidson could expand the market of motorcycle very quickly when they came into motorcycle races. The growth of the company started with the opening of new factory in 1906. Its size was bigger than the first factory. The number of staff was increased to six. In the same period the first motorcycle catalogue was introduced. In the next year, strength of the employees increased to18 and the size of the factory also increased. Sales people were appointed to sell motorcycles produced by the company. It was Harley-Davidson motor company who introduced the motorcycle firstly for police duty in 1908. Company entered into international exporting market in 1912 and exportend motorcycles to Japan.
Statement of the problem
The main issue or problem discussed in this case study is the growth of motor cycle company with the help of various media and other facilities. The entrepreneurs started a small factory and achieved the highest position in the world. The special business strategy followed by the company helped it to achieve the highest position.
Proposal to the solution
Harley’s craze for motorcycle appeared in his early period. He had an idea of manufacturing motorcycle and it was very clear when he made the blueprint of engine suitable for a bicycle. Even though he started with a small factory he tried to expand the business with his friend Davidson. When they introduced Harley-Davidson motorcycle, they tried to familiarize it to the public and people could be made aware of the product. They always tried to find out the new area of market and find out customers for their product. When they entered into the field of motorcycle, their business grew faster and achieved higher growth. They introduced the catalog of motorcycle which helped the consumers to know of their product. Consumer could easily understand the product and purchase it. It provided a general idea about the product. Catalog represents value of the company. Harley-Davidson motor company took advantages of catalog by introducing it. (The advantages of catalogues, 2008).
They were ready to supply their product whenever situation demands; it was clearly shown during the time of First World War. They could take advantage of international trade by exporting their product to the other countries and appointed dealers in different countries. They always tried to keep up the business ethics in their business. “Business ethics is the application of ethical values in a business’ behavior and even its salespersons to how the company conducts its business in order to make profit.” (Institute of Business Ethics n.d.) “It applies to any and all aspects of business conduct, from boardroom strategies and how companies treat their suppliers to sales techniques and accounting practices.” (Institute of Business Ethics n.d.). (Title: “How would you define business ethics, and why are ethical standards necessary in professional selling”, 2008).
Learning application
By reading this case study one can realize that one can succeed in business if one has the spirit of developing business, capacity to find out new market area, risk taking in trade, keeping values in business. This is a good lesson for the novice who starts business. They can really achieve their goals in business and act as important agents in the business world.
Case Study 3. Challenges faced by entrepreneurs – Startup companies launched during troubled times
Summary of the case
The economic recession facing the world today has an optimistic side also. It is an excellent justification for rationalizing costs and pruning expenses down to the last cent. Thus, companies which hitherto practice generous dole outs now need to think twice before even investing a paltry sum. This is more so in the case of startup companies who are fighting for sheer survival in a ruthless competitive market. The focus is now being shifted to return on investments (ROI) for decision making purposes.
ROI is also called “the rate of return (ROR) and is a measure of the performance of any investment. It is the ratio between the financial benefit or loss of an investment and the amount of money invested.” (ROI, return on investment, n.d.)
Return on investments offers ample scope for conducting cost assessment for managerial decision making and effective cost control for survival and forward movement of enterprises. One of the redeeming features about recession is that factors of production get cheaper since they are available in plenty and there are fewer buyers.
Taking for example the labor market, large scale cutbacks makes labor cheap and affordable for smaller surviving companies. Materials become more accessible because of fewer buyers. Again, staff payments could be made in kind, in terms of stock options, non-cash benefits and perquisites.
Again trade regulatory measures during recession becomes taut and all major areas of accountability to government, creditors, stakeholders, employees and bankers need to be rigorously controlled and monitored. Superfluous and avoidable costs are scaled back and more emphasis is laid on revenue generation, productivity, cost control measures and profitability, including ROI and liquidity position.
The venture capital business has learned from earlier mistakes of concentrating on one business/industry and is now poised for future growth, thanks to the dynamism and risk bearable ability of venture capitalists.
Coming to small business owners, they may not be able to gain access to bank loans or institutional finance and thus have to depend upon close knit circles for funds to run business. During a recession, the impact on small business may be significantly lower than large debt-managed business houses. Thus the key words for surviving in today’s world are cost savings and revenue enhancement, besides adaptability and economic resilience.
Statement of the problem
How small businesses could successfully tide over economic recession. In the event these business enterprises are not able to adapt to changing scenarios, they run the risk of being declared bankrupt.
Proposal to solution
In order to be less impacted by economic recession, it is necessary that business needs to branch out to locations outside the United States, especially to countries that have not been impacted by recession, as the United States of America. (McCue, 2009).
Learning Applications
It is seen that in the context of the present economic meltdown, smaller companies could sustain their business provided they put in efforts to sustain their businesses through judicious and planned spending and cost savings. As a matter of fact, the present situation is ideal for many companies since the impact of competition, material and labor costs and other impacts are lowest, so the company needs only to control day-to-day business to stay afloat, unlike larger companies that would need to undertake massive cuts in overheads and fixed costs to remain in business. Another aspect about smaller business is its quick adaptability and competence to remodel itself at minimum time, change or modify production or marketing which may not be very practicable for larger companies who may be weighed down by procedures and need for being validated by top directors.
The private airlines industry in the US is a good example of smaller companies competing with bigger, established ones and yet winning. It may be due to the fact that smaller airlines concentrate on costs while larger ones on revenues. (Around the world on $48 (or so), 2005).
Case study 4. Development of an Industry
Summary of the case
An industrialist starts business with the means of Production. It is carried out by him. All the factors of production are co-coordinated by the industrialist and he gives reward to the factors of production. He takes the risk in production and faces uncertainty. If he introduces quality product, he could assure the market of the consumers.
John Deer born in Vermont, on 7th February 1804. When he was four years old, his father was lost at sea. He was bought up by his mother who had only a low income. He got education through a public school and worked as an apprentice in blacksmith trade for four years. He was rewarded for showing exemplary work skill. He was the only black smith in Illinois.
Being aware of deficiencies found in conventional cast Iron plow in sticky prairie soil, he introduced new, highly polished steel plow, used with broken saw blade. It worked well and its demand grew. He had an inventory of tools ready for the customers, suiting various requirements.
In 1868 he produced one thousand plows and his business became as John Deer Company. It is the oldest industrial company in America. It became the worldwide Corporation. John Deer Co. diversified its business to 160 countries and about 46,000 people were employed worldwide. It became an important global company producing farm equipment.
Statement of the problem
How a small factory became the biggest company in the world. John showed how success and fame could be achieved in the business world
Proposing a solution
Even though he faced many difficulties in his childhood, he overcame the situation with courage. His work skill was good when he worked as an apprentice in the blacksmith trade.
The aim of the product research and development is to meet the needs of tomorrow’s customers. This also helps to create better products. It assists in holding production cost, manufacturing processes and selling price. After product testing, it can be entered into production. The research of a product involves collecting, analyzing information, moving products to customers, etc.
By using all the advantages available in research and development, (R&D) he could assure quality of product and achieved faith in the minds of consumers. (Research and development, 2009).
Consumers’ demands are constantly changing and it is necessary for the market research.. He could produce equipment for other products too. Company could start new outlets in different countries of the world. People could understand the identity of production.
Learning application
By reading this case study, one could understand that the idea of introducing innovation in production, maintaining high quality in products and laying more importance to research and development could help one can achieve tremendous growth in business.
Case Study 5. Development of a Business company
Summary of the case
An entrepreneur is an innovator. He introduced new ideas in production which helps him expand his business. If he could face the risks and survive difficulties, he could run his business effectively and make profits. He could always find a market for his products and achieve strong faith in the minds of consumers.
During 1900, W.C Colomen sold lamps in Kingfisher and Oklahoma for money when he was studying in a Law school. His early experience of selling lamps dramatically influenced the course of his later life.
Later he decided to see light service and could able to attract his customers to start business with him and started Hydro-Carbon light company. He started to make his own lamp known as Coleman Arc Lamp and changed the name of the company to Coleman Lamp Company. In 1914, he introduced a new lantern and it was the starting of novel business campaign. The U S government announced that lanterns are an important item in World War- 1 and Coleman introduced G.I pocket stove at the request of U.S government for soldiers fighting in World War-2. When rural areas were electrified his company decided to develop its production area.
Statement of the problem
How a salesman became a big businessman and the owner of the company. Even he faced difficulties in sales job; he could start a company and achieved tremendous growth in business field.
Proposing a solution
His experience in selling lamps in his school days helped his future business ventures. He faced acute competition from other salesman in selling lamp and merchants were not ready to buy his product. But he was not ready to retreat from the challenges that faced him and he started to sell light service. New product development and its processes helps the market lead, technically and commercial viable, safe and environment friendly. It helps to support the business plan with low risk. New product development is not only the development of successful product but also the stopping of the product which is not successful. (New product development and introduction (NPDI), 2008).
Learning application
By reading this case study a learner could realize that ability to face competition, technical knowledge and innovation and through the use of introducing product diversification one can expand one’s business effectively.
References
- Around the world on $48 (or so): How high can discount airlines fly. (2005). Universia Knowledge Wharton: Strategic Management.
- Daharwal, S J. (2008). Role of advertisement and sales promotion in pharmaceutical marketing: A review. Pharmainfo. net: Pharmaceutical information for you.
- McCue, T J. (2009). Surviving the recession: What’s next for small business?. All Business: A D&B Company: Simple Solutions, Powerful Advice.
- New product development and introduction (NPDI). (2008).
- Research and development. (2009).
- ROI, return on investment. (n.d.). Economy Watch: Economy, Investment & Finance Reports.
- The advantages of catalogues. (2008). Catalogue Designers.
- Title: “How would you define business ethics, and why are ethical standards necessary in professional selling”: Essay text: Introduction. (2008). Cheat House.Com: Essays & Papers for Students.