Entrepreneurship market strategies

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A business plan is a written description of your business's future, a document that tells what you plan to do and how you plan to do it.
  Product Development, Operations, and Financial Plan    Product Development It is the process of developing, testing, and commercializing a product or service with the ultimate objective of solving the problem of the primary target market. Four Sequential Steps: 1.   Developing a product or service description 2.   Creating a prototype 3.   Testing the Prototype 4.   Validating the market 5.   It describes how a product or service works and how it benefits the customers. 6.   It should directly address the primary target market in a personal manner using everyday language. 7.   It should highlight the features that will cater to the customer’s needs or address customer’s problems 8.   Realistic superlatives should be used for the product description. A Prototype is a preliminary model or sample of a new product or service that is created to test a product concept or service process. Advantages of Creating a Prototype 1. Enables the entrepreneur to engage in trial and error, provides room for improvement, and refines the functionality of the product design or service process. 2. Provides the entrepreneur a window to test the performance and specifications of various materials and service processes. 3. Helps entrepreneur effectively describe the product or service to the product team. 4. Elicits respect from key stakeholders and customers, gives credibility to the entrepreneur. Testing the Product Prototype    It is a vital process before an actual product or service is launched to the market.    This will uncover the final loopholes that need to be fixed before commercialization.    It gives the entrepreneur the leeway to examine and scrutinize the prototype and provide feedback as to what can be improved before the launch. Testing Methods applied by the Entrepreneur 1. Focus Group Discussion  –  participants will provide relevant insights about the new product or service. Its objective is to identify errors, deficiencies, and issues that may impede the success of the product. 2. Legality and ethical test  –  entrepreneur must ensure that the product or service complies with all relevant laws and regulations and has a necessary license or permit to operate a particular business. 3. Safety test  –  Entrepreneur must ensure that the product is safe to use, safe to be consumed, and safe to be applied. 4. Product costing test  –  entrepreneur must examine every stage of the manufacturing process or every process of the service blueprint to evaluate and finalize the costs involve. 5. Component test  –  each component of the product or service must be tested independently to identify component failures for goods or service failures for services. Any failure identified must be redesigned and tested again until become full operational and functional 6. Competitor’s product/service test –  entrepreneur must test a similar line of product or the competitor’s product or service itself to compare and get the best practices to be applied to the new product or service. Validation of Market Acceptability It is the process of finding out if the intended primary target market will be buying the product or availing the service. Market acceptability is a critical factor that the entrepreneur must validate before launching the product or service, because this can strongly suggest if business will be successful or not. Objective questions that should be answered in the whole process of market acceptability validation: 1.   Will primary target market like the product or service? 2.   Will the primary target market buy the product or service when it is already in the market? Activities to be performed by the entrepreneur to answer the objective questions: 1.   Use the most strategic marketing research tool(FGD, Survey, Observation, Interview, Online Survey, E-mail, or a combination of these research tool) to get the most relevant answer in the cheapest way possible. 2.   Prepare relevant open  – ended questions that answer the objectives questions. Do not go around the bush and be straight to the point. 3.   Activities to be performed by the entrepreneur:  4.   3. Find market experts who also target the same market but not directly competing with the entrepreneur. 5.   4. Collate all the data, analyze them, and prepare a summative report that answers the objective questions that were mentioned . The 4 M’s of Operations  The operations plan is an important part of the business plan because it simply states the details in operating the business. Operations management controls the implementation of the business plan. A strong operations plan should have the four operational aspects. The 4 M’s of Operations 1.   Methods  –  the process to be followed in effectively manufacturing or delivering a product or service. 2.   Manpower  –  the right human resources who will handle certain business operations. 3.   Machines  –  the technology used in efficiently operating the business. 4.   Materials  –  to be used in creating a product or performing a service, which includes supply chain management. Methods    It represents the day to day operations of a business. It describes how an entrepreneur will run the business from all facets of the business such as the manufacturing of goods, service delivery process, distribution of goods and services, logistics for delivery of goods, and inventory management, to name a few. Manufacturing  is the process of translating raw materials into finis hed goods that are acceptable to the customer’s standards. It consists of three elements: a)   Inputs  –  the materials or ingredients to be used in creating the product. b)   Process  –  the transformation phase where inputs are processed by manpower and machines to come up with the final product. c)   Output  –  the final product of the process stage, which is intended to be sold to target customers. Manufacturing site is the place where manufacturing process take place. Types of Manufacturing site: 1.   Home-based  –  the cheapest and highly flexible site to start and manufacture products that are usually manageable to be processed such as food products and customized clothes. 2.   Commercial space for rent  –  this is advisable if the business really requires a commercial space for the processing of goods and if the home option is not viable anymore. A commercial space gives the entrepreneur a more specialized and suited manufacturing site than manufacturing at home. 3.   Commercial space purchase  –  this option requires the biggest amount of capital expenditure, but it also provides the entrepreneur substantial freedom and flexibility to design and run the commercial space. Location  –  is where the delivery of raw materials and finished goods will be conducted. The transportation routes from or to the manufacturing sites should be efficient, so that the delivery of raw materials and finished goods will be seamless. Two options of Floor Plan: 1.   Product-based layout  –  where the facilities are prearranged according to the flow of the manufacturing operations. 2.   Process-based layout  –  where the facilities are grouped according to their function. Service delivery process Service blueprint  –  a detailed flowchart of the service business, the blueprint must be relevant to the service business to minimize wastage. Bottleneck  –  a part of the process where there is an apparent inefficiency and where the customer waits longer. Distribution Method Distribution  –  the process of bringing the products or services to customers. Distributors  –  are entrepreneur who often buy products or services to the manufacturers and sell them at a mark up price to either wholesalers or retailers. Agents  –  negotiate with buyers as to how much or how many are to be sold, so manufacturer will be able to deliver goods directly to the buyer. Agents get the commission for every product sold. Assistance of distributors/agents to the entrepreneur: 1.   Sharing industry knowledge, behavior, and activities of the primary target market, 2.   Pertinent rules and regulations imposed by the government, 3.   Best practices in marketing and selling the product, 4.   Best practices in operating the business,  5.   Their respective sticky relationship with business associates such as suppliers, financial institutions, or retailers, and others. Manpower One of the highest costs od operating a business but is also the most instrumental to its success. Having the right people encompasses a myriad of advantages. Job description  –  enumerates the duties and responsibilities of the potential employee, including the scope, limitations, and terms and conditions of employment Job title  –  the summary of what the employee will do. Compensation and benefit range  –  it details the potential salary and benefits that the employee will get. Duties  –  it clearly describe the job that the employee will assume with allowance for flexibility, it is usually high level descriptions only. Responsibilities and accountability  –  it must be communicated well to the employee so that the he knows what to expect with the job. Work schedule  –  the specific days and working hours the employee will perform Employee Qualifications a.   Educational background b.   Work experience c.   Special skills or knowledge d.   Work attitude Job Contract  –  summarizes the terms and conditions of the candidate’s employment with the business. Training people  –  one of the biggest investments of an entrepreneur or a businessman. Employee Qualifications a.   Educational background b.   Work experience c.   Special skills or knowledge d.   Work attitude Job Contract  –  summarizes the terms and conditions of the candidate’s employment with the business.  Training people  –  one of the biggest investments of an entrepreneur or a businessman. Strategies for talent management: 1.   Providing employees with a very competitive salary package. 2.   Nonmonetary benefits 3.   Additional benefits Machines Described as the “bestfriend” of manpower in producing goods and offering services. It is not limited to physical equipment but can also pertain to new technologies that help business operations become standardized and seamless. The sizes and shapes of the facilities and equipment affect the entire operations process, so the site must adapt to how big or small the pieces of equipment are. Telecommunications and Information Technology  They are mandatory equipment in business. The following are the tel. and IT equipment: 1.   Landline phones 2.   Mobile phones 3.   Laptops and desktop computers 4.   POS machines 5.   Accounting and inventory software 6.   Website Materials Whether the entrepreneur will offer products or cater services, he has to pinpoint a number of dependable suppliers of quality raw materials and supplies. The supplier must have a consistent and sufficient amount of raw materials and supplies that can accommodate the demand of the entrepreneur. Outsourcing  –  the process of appointing third party manufacturer to do the manufacturing operations of the business.
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