ASI-Management Skills and Entrepreneurship-01.04 Reviewed (2) PDF

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Management Skills and Entrepreneurship

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Table of Contents Task-1..........................................................................................................................................4 1.0

Introduction..................................................................................................................4

1.2 Literature review...............................................................................................................4 Critical Analysis..........................................................................................................................7 1.4 Conclusion.......................................................................................................................10 Task2.........................................................................................................................................12 2.1 Introduction.....................................................................................................................12 2.2 Business Summary..........................................................................................................12 2.2.1 Business ownership structure...................................................................................13 2.2.2 Hierarchy Structure...................................................................................................13 2.2.3 Mission of the business.............................................................................................13 2.2.4 Objectives.................................................................................................................13 2.2.5 Products and Services...............................................................................................13 2.3 Marketing Plan................................................................................................................14 Market segmentation.............................................................................................................14 2.3.1 Target market segmentation strategy........................................................................14 2.4 Competitors.....................................................................................................................14 2.5. Factors determines the success or failure of Restaurant................................................14 2.5.1 Product Demand.......................................................................................................14 2.5.2. Unplanned business expansion................................................................................15 2.5.3 Managing overall operations....................................................................................15 2.5.4 Lack of finance.........................................................................................................15 2.5.5 Inefficiency in operation...........................................................................................15 2.5.6 Appropriate management plan..................................................................................15 2.6 Financial Overview.........................................................................................................15 2.6.1Payroll........................................................................................................................16 2

2.6.2 Utilities.....................................................................................................................16 2.6.3 Advertising................................................................................................................16 2.6.4 Insurance and other taxes.........................................................................................16 2.6.5 Profit and Loss..........................................................................................................16 2.6.6 Balance Sheet...........................................................................................................17 2.6.7. Break-Even Analysis...............................................................................................17 2.6.8 Sales Forecast...........................................................................................................18 References.................................................................................................................................19

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Task-1 1.0 Introduction [Highlight what task1 is all about write 5 lines

The focus of this assignment is on the managerial skill

Managerial skill and the the business knowledge that are necessary for an indicates the overall performance about how the entrepreneurs can perform the task related to themto start the new venture. For all types of entrepreneurs, business knowledge, managerial skills and the development of the entrepreneurship skills are termed as the important factors. Managerial skills includes the activities that have the eight functions related to the business. such as They are as marketing, human resource, finance, general management, purchasing, operations and administrations. This report aims at highlighting the factors that contributes in success or failure of a new venture. With the help of suitable theories and practices a deeper understanding on the concept of leadership and entrepreneurship is explained. In fact, the maximum the entrepreneurs

passion and the enjoyment, maximum the chance of success.

Entrepreneurs and the small business managers plays different roles in their respective fields. ]

Entrepreneurs are self-made persons, and they are big contributors to the economy. They work to earn profits and due to this per capita income of the nation are increasing. Entrepreneurs provide jobs to other people. They develop a new business models and collect people from different backgrounds and qualifications to hike the business plan. Entrepreneurs are responsible for all the successes and failures because they take all the risks exist in the corporate world. Entrepreneurship is the continuous process means it is a never ending process until and unless any necessity is arising to curtail the business materially. Abandonment of one product line is not discontinuation of the business. An entrepreneur can create corporate policies for all the stakeholders and management and have the ability to create and maintain the goodwill of his own and his business (Aulet, 2013). An entrepreneur should have a cool mind and polite nature. They should be ready to take initiatives, and he should have the leadership qualities, punctuality, good communication 4

skills. They should have the qualities to managing the things in difficult situations in the business. He should be a good decision maker because all the long term and short term plans of the business and policies has to be made by him with the help of some professionals (Minniti, Zacharakis, Spinelli, Rice and Habbershon, 2006). The growth of the organisation and growth of the employees, workers and all the staff is dependent upon the entrepreneur. If an entrepreneur takes good initiatives and innovations, he can add new clients and due to this overall growth would be possible. Entrepreneurship is directly associated with the true uncertainty. If there is no ready market for some products, then the entrepreneur may face the problems. An entrepreneur should be able to convince the customers for their product and should have a good marketing team to market their product. So that profits can be earned and if there are new market and good strategies then an entrepreneur can be very successful and if there is no good strategy then he may face the failure. An entrepreneur with the proper mission and proper vision will always be a successful businessman. An entrepreneur is also a very good manager because he controls all the activities of the business from starting to end (Aulet, 2013). An entrepreneur is self-motivated and energetic person; he is all the abilities to conduct the business; he is a leader of a business. 1.2 Literature review According to Hisrich ,(2014), to be an an entrepreneur there is a need of good ideaGood business ideas are not come very easily, which doesn’t come at ease, yet the entrepreneurs generate them and modify them occasionallyas per the situation. The idea generated by them are further evaluated to check the feasibility then very often translated to the various department for the discussions and then they are implemented. implement it. The ideas of them serve as the value added service that can change the nature of the business completely. So, who is an entrepreneur? Entrepreneurs is defined as a person who captures the opportunities that are new and has smart insight to create and have the ability to bear the risk in order to generate the quality work and organises the planned environment accordingly. As per Nieuwenhuizen, Below are some of the fundamental activities emphasis on the followingthat should be focused by entrepreneur :  Planning- In the long run, short run and middle term, planning should be adequate.  Organising- It refers to the how the work or the task are assigned to be successful in

accomplishing it. 5



Leading- Motivation of employees and the effective supervision are included in this activity.

 Control- In this activity, the evaluation or monitoring of the performance takes place ,

in other words, comparison of the planned and the observed task or work happens in this category. The important area of the effective managerial skill is getting the things or the work done through others and not doing all the work by yourself and to facilitate that the task should be completed by the time, and also the employees and the customers should also be satisfied. No doubt, the success of the business depends upon the entrepreneurship and the managerial skills and they should have to go hand in hand and should not be separated from each other. As per Longenecker, Petty, Palich and, Hoy, (2011), The early concept stated that some of theBelow are some qualities that an entrepreneur must possess includes:, 

cComprises of raising and creating the funds,



mManaging the funds, u



Utilization of the funds, r



Repayment of the funds



and tTo earn profit from those funds after interest and taxes

. These activities differ substantially from one organization to another. however, it is not applicable in today’s world of Entrepreneurial Activities In today’s competitive environment, entrepreneurs raising their funds from bridge financing, venture capitals, commercial banks, by issuing bonds and equity shares to trade on equity (Wojciech, Gasparski, Ryan and Kwiatkowski, 2011). The growth of the organisation and growth of the employees, workers and all theother staff staff member is dependent upon the entrepreneur. If an entrepreneur takes good initiatives and innovations, he can add new clients and due to this overall growth would be possible. Entrepreneurship is directly associated with the true uncertainty. If there is no ready market for some products, then the entrepreneur may face the problems. An entrepreneur should be able to convince the customers for their product and should have a good marketing team to market their product. So that profits can be earned, and if there are new market and good strategies then an entrepreneur can be very successful and if there is no good strategy then he may face the failure. An entrepreneur with the proper mission and proper vision will always

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be a successful businessman. An entrepreneur is also a very good manager because he controls all the activities of the business from starting to end (Aulet, 2013).

Entrepreneurship is all about risk and uncertainties. Financial security and career of an entrepreneur depends upon the business and ideas. Opportunities for the entrepreneurs Finding an opportunity is one of the toughest parts for an entrepreneur to enlarge the business, there is always another opportunity exists, but the entrepreneur has to go with one opportunity at a time. The entrepreneur will go through a detailed analysis to select the best opportunity for his business.The entrepreneurial opportunity exists when there is a favourable economic and social condition for an individual to create a new product from the existing resources (Martin, 1994). Types and needs of resources In entrepreneurship, resources are very important, before starting a business an entrepreneur should determine that what kind of resources will be needed to run a business. Otherwise, many problems may arise later on in the day to day operations. There are many resources like money, labour, machines and educational resources. However, resources can be categorised broadly into two parts: Human Resources This resource is the most important and most viable asset to run a business successfully. The Cost of this resource cannot be easily determined, many people has many criteria to determine the cost of the human resource. This resource plays a key role in the success or failure of the new venture. Start-up venture needs a skilled manpower who can under the processes and can contribute in achieving the organisational objectives without which start-up venture would fail drastically. Financial resources The financial resource is also a very important part to run the business in the competitive environment. Financial resource is also one of the critical resource of the business, investment in the new business line, profitability, production capacity, procurement of raw materials all these things are key aspects to run a business successfully. An organisation having no scarcity of financial resource are almost secured. Wojciech (2011) mentioned that certain short- term benefits of funds are also arranged with the help of private and public agencies. This is the backbone of the business because procurement, operations, conversion into finished goods cannot possible without money (Wojciech, Gasparski, Ryan and Kwiatkowski, 2011). 7

1.3 Entrepreneur’s Leadership and Management competencies list

Critical Analysis According to Morato (2013), a good business plan should determine the relevant resources required and then obtaining themobtaining them and managing the venture successfully. It is also determine the resources needed for addressing the opportunities. The process of determining the resources starts up with the appraisal of resources. There are many types of resources needed for the entrepreneurs. Few of them are as follows such as

well-defined

business plan, crime prevention control, advertising, business plan, buying and selling of existing resources, cash flows, ethics and social responsibilities, financing, forms of ownerships, human resource management, law, technology, personal selling, quality, purchasing and inventory control, strategic management, corporation of the company, etc. As the business gets established, probably of requirement of funds increases with the development of the venture. By understanding the suppliers of the resources, and entrepreneurs can structure the deal with the low cost acquisition of the resources. Therefore, after acquiring the necessary resources entrepreneur should of implementation a of the business plan. Hence, it is true to say that entrepreneurs require necessary resources to start a successful business venture. Entrepreneurs play a vital role towards the The plan and the strategy need to be implemented on timeconomic prosperity and also contributes to the gross and net growth of the employment (Baumol, 2010). The availability of the resources (such as the financing, human, technological etc.), organisational factors and the external environment nurtures the development of the venture (Nieman and Pretorius, 2004). If the entrepreneur does not have the desire to take the venture to the great extent, then there will be no possibility for the growth of the venture. The Entrepreneur needs the various resources to pursue the business growth. These involve the people that contribute their efforts, capital that is needed to invest in the business, physical assets like building, machinery, equipment, and the information’s that are needed for the decision-making. The limiting factor of any venture is mainly the resources. One resource is sometimes necessary to make use of another resource. Hence, the entrepreneur should make the correct mixes of the resources for the growth of the venture. Human resources are the resources that include the skills, effort and the knowledge and are very necessary for the development of any venture. Human resource is classified under four 8

major categories that includes top management, middle management and professional staff, supervisory management and the non-managerial staff. By working as the team, many unavoidable circumstances or problems can be avoided that can occur in the very early stage of the business. Therefore, it can enhance the chances of growth of the venture. An entrepreneur should be a good leader and good manager to control and manage its business venture. Hence, it can say thatt competencies matter for an entrepreneur. Competency ultimately helps to enhance the performance of an individual as well as of employees. Some of the qualities of an effective entrepreneur is provided below: Direction An entrepreneur should be able to guide his/her team in an effective manner, as the overall performance of the organisation would depend on his direction. The entrepreneur must be able to formulate a vision and establish an objective for the growth of the organisation. Values shared by the entrepreneurs are reflected in his team members and hence it is of utmost importance to provide a clear set of direction (Bornstein, 2010). Responsible An entrepreneur should hold the accountability that comes with a responsibility of managing and sustaining the organisation. The entrepreneur will be held responsible for the results of the organisation, if he understands the accountability and responsibility then his clients and employees will always be satisfied. Initiation Entrepreneurship is all about new thoughts, ideas and new business models. An entrepreneur should always be ready to take initiatives. An entrepreneur is fully competent of accomplishing the desired objectives by taking prompt actions. An initiator will always look into all the matters of the business and try to get better things revolving around the business (Stokes, Wilson, Wilson, Mador, 2010). Team builder An entrepreneur shall be a good team leader and builder. An entrepreneur should help all other members of the team i.e. its employees, resolve their problems and make effective and efficient team in an organisation so that all the team members will work with each other with brotherhood. Adaptable to changes

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An entrepreneur should be flexible. Changes like technological advancement, customer preferences should easily incorporate in the organisation as per the need of the industry and customer. It is essential to be flexible in today’s dynamic world. Use of critical resources Some resources are very precious due to their scarce nature. Effective utilization of those resources is a very big challenge for an entrepreneur, taking a decision in reference to critical resources an entrepreneur makes the influence of its next five decision. An entrepreneur should ensure that his critical resources are in good and responsible hands. The arrangement of proper training should be done for the employees of entrepreneur’s organisation to handle all the resources. So that productivity will increase, and profitability will be increased (Stokes, Wilson, Wilson, Mador, 2010). Below is the example of a successful entrepreneur who made effective use of the available resources: Warren Buffett: He is known as “Oracle of Omaha” and he is also a god of investment. Warren Buffett is one of the best-...