Afd - AENT220218
Afd - AENT220218
Afd - AENT220218
Module : Entrepreneurship
Facilitator : Pn. Nor Bayah Binti Sainon
Centre : Angkasa Seremban
Assignment Submission :
Answer 5 of 6 questions
Jawab 5 dari 6 soalan.
An intrapreneur on the other hand is an individual who works on developing new ideas and
products within the confines of the business that they already work at. Intrapreneurs include any
person within the company that applies entrepreneurial skills, vision, and forward-thinking into
the role that they have in the company. One of the big benefits of becoming an intrapreneur is
that it allows you to form new ideas, products, and business goals without taking on the risks
that come with starting a new business as an entrepreneur, such as no income, limited team, lack
of time, unpredictable future, etc.
ii) Explain the difference between Entrepreneurs and Intrapreneurs using suitable
examples.
Terangkan perbezaan diantara “Entrepreneurs” dan “Intrapreneurs” dengan
menggunakan contoh yang sesuai. 16 marka
Since, last few decades, it has been noticed that people give more value to innovations, which lead to the
rise in the number of startup companies year on year. This is because the world is changing rapidly with the
advancement in technology. It has also resulted in the competition among companies. Now, if the enterprise
wants to stand in competition with other enterprises, it should bring something new in their products.
Entrepreneur and Intrapreneur play a major role here, to enter into new business and even markets.
First:
Identify the product or service to be offered
Second:
Focus the marketing effort
Third:
Determine target market from the market segments identified
3. Explain with local and international examples, the advantages of franchising to the franchisee
(entrepreneur).
Capital
For business owners, franchising can help reduce some of the financial burdens associated with growing a
business. Unlike organic growth, where an entrepreneur continues investing more of their own capital as
they open new locations, franchising provides opportunities for unit-level expansion where the franchisee
supplies the capital for the franchised location they bought. Franchisees pay an initial fee to join the
franchise network, and they invest their own capital to develop and open their location.
Motivated Management
Another stumbling block facing many entrepreneurs wanting to expand is finding and retaining good unit
managers. All too often, a business owner spends months looking for and training a new manager, only to
see them leave or, worse yet, get hired away by a competitor. And hired managers are only employees who
may or may not have a genuine commitment to their jobs, which makes supervising their work from a
distance a challenge. ut franchising allows the business owner to overcome these problems by substituting
an owner for the manager. No one is more motivated than someone who is materially invested in the
success of the operation. Your franchisee will be an owner -- often with his life’s savings invested in the
business. And his compensation will come largely in the form of profits.
Speed of Growth
Every entrepreneur I've ever met who's developed something truly innovative has the same recurring
nightmare: that someone else will beat them to the market with their own concept. And often these fears are
based on reality. The problem is that opening a single unit takes time. For some entrepreneurs, franchising
may be the only way to ensure that they capture a market leadership position before competitors encroach
on their space, because the franchisee performs most of these tasks. Franchising not only allows the
franchisor financial leverage, but also allows it to leverage human resources as well. Franchising allows
companies to compete with much larger businesses so they can saturate markets before these companies can
respond.
Ease of Supervision
From a managerial point of view, franchising provides other advantages as well. For one, the franchisor is
not responsible for the day-to-day management of the individual franchise units. At a micro level, this
means that if a shift leader or crew member calls in sick in the middle of the night, they're calling your
franchisee -- not you -- to let them know. And it's the franchisee’s responsibility to find a replacement or
cover their shift. And if they choose to pay salaries that aren't in line with the marketplace, employ their
friends and relatives, or spend money on unnecessary or frivolous purchases, it won't impact you or your
financial returns. By eliminating these responsibilities, franchising allows you to direct your efforts toward
improving the big picture.
Improved Valuations
The combination of faster growth, increased profitability, and increased organizational leverage helps
account for the fact that franchisors are often valued at a higher multiple than other businesses. So when it
comes time to sell your business, the fact that you're a successful franchisor that has established a scalable
growth model could certainly be an advantage. When the iFranchise Group compared the valuation of the
S&P 500 vs. the franchisors tracked in Franchise Times magazine in 2012, the average price/earnings ratio
of franchise companies was 26.5, while the average P/E ratio of the S&P 500 was 16.7. This represents a
staggering 59 percent premium to the S&P. Moreover, more than two-thirds of the franchisors surveyed
beat the S&P ratio.
Reduced Risk
By its very nature, franchising also reduces risk for the franchisor. Unless you choose to structure it
differently (and few do), the franchisee has all the responsibility for the investment in the franchise
operation, paying for any build-out, purchasing any inventory, hiring any employees, and taking
responsibility for any working capital needed to establish the business.The franchisee is also the one who
executes leases for equipment, autos, and the physical location, and has the liability for what happens
within the unit itself, so you're largely out from under any liability for employee litigation (e.g., sexual
harassment, age discrimination, EEOC), consumer litigation (the hot coffee spilled in your customer’s lap),
or accidents that occur in your franchise (slip-and-fall, employer’s comp, etc.).Moreover, it's very likely
that your attorney and other advisors will suggest you create a new legal entity to act as the franchisor. This
will further limit your exposure. And since the cost of becoming a franchisor is often less than the cost of
opening one more location (or entering one more market), your startup risk is greatly reduced. The
combination of these factors provides you with substantially reduced risk. Franchisors can grow to
hundreds or even thousands of units with limited investment and without spending any of their own capital
on unit expansion.
(iii) Labour-Intensive:
Small business enterprises are mostly labor-intensive. The machinery and equipment used are not very
sophisticated and are operated manually.
Organizational Structure:
Flat
Informal
5. For a business that you wish to start on your own, explain 6 stages of Business Development.
Bagi memulakan perniagaan sendiri, terangkan 6 langkah “Business Development (20marks)
A business plan is a document that defines in detail a company's objectives and how it plans to achieve
its goals. A business plan lays out a written roadmap for the firm from marketing, financial, and operational
standpoints. Both startups and established companies use business plans.
Executive summary
The executive summary is the first and one of the most critical parts of a business plan. This
summary provides an overview of the business plan as a whole and highlights what the business
plan will cover. It's often best to write the executive summary last so that you have a complete
understanding of your plan and can effectively summarize it.
Your executive summary should include your organization's mission statement and the products
and services you plan to offer or currently offer. You may also want to include why you are
starting the company if the business plan is for a new organization.
Business description
The next part of a business plan is the business description. This component provides a
comprehensive description of your business and its goals, products, services and target customer
base. You should also include details regarding the industry your company will serve, and any
trends and major competitors within the industry. You should also include you and your team's
experience in the industry and what sets your company apart from the competition in your
business description.
Competitive analysis
Your business plan should also include a detailed competitive analysis that clearly outlines a
comparison of your organization to your competitors. Outline your competitors' weaknesses and
strengths and how you anticipate your company to compare to these. This section should also
include any advantages your competition has in the marketplace and how you plan to set your
company apart. You should also cover what makes your business different than other companies
in the industry, as well as any potential issues you may face when entering the marketplace if
applicable.
Operating plan
This part of your business plan should describe how you plan to run your company. Include
information regarding how and where your company will operate, how many employees it will
have and all other pertinent details related to your organization's operations.