Entrepreneurship And Selling Essay Example for Free

Entrepreneurship And Selling Essay 1.0 Introduction There are various types of white coffee are selling in the market currently. Therefore, I would like to share about my new brand of white coffee, Fah Sin white coffee. As we all know, this industry in Malaysia is well known, with different brands such as Old Town White Coffee, Nescafe White Coffee, Ipoh White Coffee and so many others. For this product that I am about to share, is it fully owned by myself. Therefore, this is a fully sole-proprietor company. Before we go any further, let us look through the history of white coffee. White Coffee is a native product of Malaysia. Malaysia Origin White Coffee is made of well-chosen Liberica, Arabica and Robusta coffee beans and premium skim milk, processing in mild low-temperature baking and special process to remove the bitter and sour taste cause by high-temperature grilled, and minimize the caffeine, bitterness and sourness to the lowest without any additives added, outstanding aroma, gentle to stomach and retain the original color and flavor of coffee, the color is more softer than the regular coffee, light golden yellow with pure classical taste. The white coffee is a unique coffee drinks in Malaysia with about 100 years of history. White coffee doesn’t mean the color of coffee is white; it is made of well-chosen Liberica, Arabice and Robusta coffee beans, baking without caramel at direct low-temperature which takes 2.5 times longer than the high-temperature charcoal baking, and grind into coffee powder. It removes the scorch and sour taste cause by common high temperature fried and charcoal roasted, but retains the natural flavor and rich aroma of the coffee, memorable fragrant and smoothness. Gentle to stomach, do not get inflamed, low caffeine, pure mild quality, suits the requirements for modern taste of life with outstanding aroma. 2.0 General Macro Environment Elements. Entrepreneurship can be defined as the method of utilizing one’s individual creativity and inventiveness to bring in changes to an already existing business or to initiate a new business with a view to developing and expanding it and make it an economically profitable venture. To ensure that this new product could create a success and a new impact to the public, we have to study the ventures of environment assessment. The following diagram provides a clearer vision of the important parts of the assessment. As an entrepreneur, we have to look closely at the factors that is surrounding in our society, in order to achieve the target sales that we plan. The macro environments include the major forces that act not only on the firm itself, but also on its competitors and on elements in the micro-environment. The macro-environment tends to be harder to influence than does the micro-environment, but this does not mean that firms must simply remain passive; the inability to control does not imply an inability to influence. Often the macro-environment can be influenced by good public relations activities. The main elements of the macro-environment are known as PEST, which means: P – Political and Legislation. E – Economy S – Socio-Cultural T – Technology 2.1 Political and Legislation – Political factors often impact on business: recent examples are the worldwide movement towards privatization of former government-owned utilities and businesses, and the shift away from protection of workers’ rights. Firms need to be able to respond to the prevailing political climate, and adjust the marketing policy accordingly. For example, British Telecom, Deutsche Telekom and Telstra of Australia have all had to make major readjustments to their marketing approaches since being privatized, and in particular since seeing an upswing in competitive levels. Almost all the firms’ activities have been affected, from cutting the lead time between ordering and obtaining a new telephone, through to price competition in response to competitors’ cut-price long-distance and international calls. British Telecom was the UK’s fifth biggest spender on advertising during 2003. This segment is the arena in which different interest groups compete for attention and resources. This is where I can exercise my political power by obeying and adhere to the policy, legislation and regulations on how the business operates. There are 2 types of issue which we need to consider, which is the global issues and the national issues. As for my company, I will only need to observe the national issues, where taxation and regulations are more important. The reason is because the impact of taxation on business operations can reduce the cash available for business ventures to invest while some taxes are favorable to only certain business and disadvantageous to others. 2.2 Economy – Economic factors encompass such areas as the boom/bust cycle, and the growth in unemployment in some parts of the country as a result of the closing of traditional industries. Macro-economic factors deal with the management of demand in the economy; the main mechanisms governments use for this are interest rate controls, taxation policy and government expenditure. If the government increases expenditure (or reduces taxation), there will be more money in the economy and demand will rise; if taxation is increased (or expenditure cut), there will be less money for consumers to spend, so demand will shrink. Rises in interest rates tend to reduce demand, as home loans become more expensive and credit card charges rise. This factor plays a vital role in the success or failure of a new business. As an entrepreneur, we need to analyze this factor at the global, national and local levels. Meanwhile, we must also scan, monitor, forecast and assess the macroeconomic factors that can affect the new business. 2.3 Socio-Cultural – This factor consists of two major related aspects: 2.3.1 Demographic changes: It happens due to changes in the population, ethnic groups, and population structures according to age, gender, geographical location, and their income. These elements will clearly provide the data of consumers’ demand, buying power and industrial capacity. We need to assess these changes in order to identify our business opportunities. Demographic changes can have major effects on companies: the declining birth rate in most Western countries has an obvious effect on sales of baby products, but will eventually have an effect on the provision of state pensions as the retired have to be supported by an ever-shrinking number of people of working age. Likewise, changes in the ethnic composition of cities or in the population concentration (with few people living in the city centers of large cities) cause changes in the demand for local services and retailers, and (more subtly ) changes in the type of goods and services demanded. 2.3.2 Social trends: This relate to the lifestyle of a person. We also need to monitor the lifestyle changes in order to identify business opportunities. But yet, as an entrepreneur, we also need to forecast and assess the meaning of changes for our business by looking at their own self-interest. 2.4 Technology – This is also a vital factor for a new venture through product development and commercialization. Technological change happens in two forms: 2.4.1 Pure Invention: This refers to the creation of something new that is different from existing technology or product. Normally it has economic value and has no competitors at initial stages and it is often monopoly by individual. But there will be no market at the early stage. On the other hand, new inventions can create new markets and opportunities for business. For example, the invention of semiconductors created business opportunities in computers and mobile phones. 2.4.2 – Process Innovation: This refers to the s mall changes in design, product formulation and manufacturing, materials and distribution. Scanning and monitoring changes in technology are not easy tasks due to information is not easily available. 3.0 Elements of Macro Environment That Affects Our Organization. At the very beginning, we have look through all the major factors or the macro environment elements. Can we discover what the factors that might affect our new business are? We have to collect more information and data before we can launch a new product and to do researches about our country’s current situation. 3.1 -Political and Legislation: Malaysia is a peaceful country. We have no wars compared to other countries like Israel or Pakistan. We have also many types of ethnic in Malaysia, where we have malay, chinese, Indian, kadazan and so many others. Our legislation is controlled by our ruling government and we always live in peace and harmony. 3.2 -Economy: Malaysia economy is growing rapidly, with many overseas investors and also new ventures. This increased the working opportunities and the average income of a local scholar is RM 1800.00 – RM 2500.00, and therefore this will also help to increase the buying power. 3.3 -Socio-Cultural: If we look closely to the lifestyle of the working adults, we are always busy and always looking for something instant to eat or drink during in the office. Therefore, our new white coffee is very convenient and suitable for working adults as it is a 3 in 1 coffee packet. Drinking coffee also consider as a culture to working adults, to boost up their stamina while at work. 3.4 Technology: As for this white coffee, we have our very own research and development team. We are also planning to add in other herbal plants into this white coffee as an additive ingredients so that our coffee will taste better compared to other brand. Entrepreneurship, as discussed earlier, comprises of all the aspects of the new venture and the entrepreneur can face challenges from all of them. For instances, the finances for the enterprise has to be calculated, planned, accessed and distributed according to the project plan. For start-up ventures, the establishment and infrastructure costs will be high initially and an interval has to be allowed for the profits to show up in the accounts. The necessary permits, licenses and governmental procedures for starting the venture have to be procured in time for starting the production. Hiring of adequately skilled employees, building a strong sales-force, building a relationship with the consumers by getting to know their needs and satisfying these needs at a fair price, and satisfying the investors by turning into a profitable venture as soon as possible are also challenges that the entrepreneur has to learn to handle effectively and efficiently. 4.0 Micro-Economic Factors. Micro-economic factors are to do with the way people spend their incomes. As incomes have risen over the past 40 years or so, the average standard of living has risen, and spending patterns have altered drastically. The proportion of income spent on food and housing has fallen, whereas the proportion spent on entertainment and clothing has risen. Information on the economy is widely publicized, and marketers make use of this information to predict what is likely to happen to their customers and to demand for their products. Micro environment factors are factors close to a business that have a direct impact on its business operations and success. Before deciding corporate strategy businesses should carry out a full analysis of their micro environment. In this assignment, we discuss common micro environment factors. 4.1 Customers As all businesses need customers, they should be Centred (Orientated) around customers. The firms marketing plan should aim to attract and retain customers t hrough products that meets their wants and needs and excellent customer service. 4.2 Suppliers Suppliers provide businesses with the materials they need to carry out their business activities. A suppliers behavior will directly impact the business it supplies. For example if a supplier provides a poor service this could increase timescales or product quality. An increase in raw material prices will affect an organization’s Marketing Mix strategy and may even force price increases. Close supplier relationships are an effective way to remain competitive and secure quality products. 4.3 Competitors The name of the game in marketing is differentiation. Can the organization offer benefits that are better than those offered by competitors? Does the business have a unique selling point (USP)? Competitor analysis and monitoring is crucial if an organization is to maintain or improve its position within the market. If a business is unaware of its competitors activities they will find it very difficult to â€Å"beat† their competitors. The market can move v ery quickly for example through a change in trading conditions, consumer behavior or technological developments. As a business it is important to examine competitors responses to these changes so that you can maximize the impact of your response. 4.4 Financial Institutions – In Malaysia, we have SME Bank as our financial-aid. An organization, which may be either for-profit or non-profit, that takes money from clients and places it in any of a variety of investment vehicles for the benefit of both the client and the organization. SME Info provides the latest information, industry news and updates about the Small to Medium Enterprise segments in Malaysia. The portal also provides insights and latest news on government announcements, industry trends and available financing and training programmes for SMEs. Various developmental aspects for SMEs in Malaysia that the portal provides includes advisory services, financing options, training programmes, business networking and matching, and further industry events organized by the government and private sectors. SME Info is run by Bank Negara (The National Reserve Bank of Malaysia), where they play host as the Secretariat to the National SME Development Council. 4.5 Non-Government Organization – This organization could provide useful information and advices to new entrepreneurs. FOMCA Federation of Malaysian Consumers Associations (Gabungan Persatuan-Persatuan Pengguna Malaysia) For example, we have a very active consumer association in Malaysia which is known as Persatuan Pengguna Pulau Pinang. They are a very active group which protects all the consumers in Malaysia. 4.6 Government Agencies -In Malaysia, we have many local authority that control a new establishment of a company. For example, Companies Commission of Malaysia (SSM), JAKIM, and many others. Therefore, in Seremban, we need to deal with Majlis Perbandaran Seremban (MPS) in order to obtain our license. 5.0 Summary After looking at all the major criteria in order to achieve success for my new venture in this white coffee business, I am very sure that we can implement all the macro environment factors which we discussed earlier. It will not only help us to improve our sales in order to meet our sales goal, but can also expand my venture to overseas and maybe international. Therefore, we need to improve our technology, which is our Research and Development sector to produce better quality of the product. A good product will also ensure our consumer to achieve maximum satisfaction. With good impressions from our consumers, I believe our new product will gain a great impact to the society.