Key Issues

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07/29/05

Key issues for discussion

Key concepts/issues are:

1. Entrepreneurship concept

It is a process of creating or seizing an opportunity and pursuing it. It is characterized by some type of innovation and creativity. More importantly is to implement the business idea into actions is the key to succeed.

2. Role of an entrepreneur

An entrepreneur is a person who has a bright business idea, organizes it and put it into action through a business venture and is prepared to take calculated financial risks.

3. A good entrepreneur is characterized by,

	independent
	self confident
	determination and perseverance
	goal oriented
	high achiever
	creative
	able to act quickly

4. Key issues in starting a business

The issues include

	source of expertise
	knowledge of business and technology
	relevant working experience
	special interest/expertise
	capital budget
	operating cost

These issues are concerned an entrepreneur who wish to either buy over a new business or venture into a new business.

5. Financial planning

A good financial planning allow entrepreneur to manage his finances and operations. Applying appropriate methodology allows him to generate cash flow, profit and loss and balance sheet statements.

Understanding the concept of

Cash flow statement
Profit and loss statement
Balance sheet statement

6. Marketing segmentation

Marketing positioning strategies are based on the company's position relative to its competitors in its chosen segment.

Examples of a market leader:
Firm with largest share has the ability to dictates the market conditions, has to defend its position and has to keep introducing new products and services.

strategy:

	flanking defense, hit competitors from its weak sides
	pre-emptive defense, constant improvements on price cutting
	counter offensive defense, counter attack in direct response to competitor actions
	contraction defense, concentrate on core business which are its strengths and give up weaker business

7. Marketing mix

The marketing mix focuses on product, price, promotion and place.

Example of how a product is function,

7.1 Product is divided into:

core product: communicate tool

Actual product: brand, feature, warranty and packaging

Augmented product
customer service

Hence the most efficient and effective marketing mix ensure the company's highest market capitalization, sales and profits.