1. What is the advantage of entrepreneurship?
- We are able take our first step into the business world by starting
up our own business, for example, in the make-up industry.
- We are the own boss of our company, hence we can control how
things are handled in the company, for example, we have the
authority to motivate employees to brainstorm for new ideas.
- We can provide job opportunities for other individuals in this
current state of low economy of our country since we are the boss of
our company.
- The profit that we earn is for ourselves. The income from sales
is entirely ours because it is our own company.
- We can start up a business based on what we like, for example
fashion industry.
- We can increase the GDP of our countrys economy and in turn
increase the income of ourselves and also that of our employees.
With higher income, we do not have to worry in spending a bit more
of money in things that are desired.
- We can bring in more investors into our company. Investors are
important because a growing business requires adequate funding.
- Being the boss, there is flexibility in what we do.
2. What is SMART goals?
- SMART goals ensure that your goals are in line and you are able to
achieve them.
- S for Specific, a detailed and narrow goal. For example, you plan
to make handmade souvenirs and sell them on Carousell.
- M for Measurable, a logically figured goal. For example, you aim
to sell a minimum of 5 souvenirs in a period of one week.
- A for Attainable, whether it can be achieved or not. For example,
build an inventory of 30 souvenirs to be sold and start promoting
business by words of mouth and local networking.
- R for relevant, within the availability of knowledge, time and
resource. For example, selling handmade souvenirs allow me to
benefit financially from my hobby.
- T for target dates, datelines. For example, my carousell will be up
and running within 4 weeks and I will have an inventory of 30
souvenirs to sell within 6 weeks.
3. Vision and mission statement? How to write a good vision and
mission statement?
- memorable and recitable: easy to understand
- relevant to companys objectives: include philosophy and values
- tells managers where to look and avoid when seeking for strategic
opportunities
- distinguishes firm from competitors in the industry
- clear and creative
- approx. 200-300 words
4. What are the risks that entrepreneurs face?
- risk of losing business: fail to keep up with needs of target market
- bankruptcy: no sufficient funding
- competition
- no personal time: affect interpersonal relationships
- legal and compliance policies: lawsuit
5. How many types of goals? What are the goals?
- Strategic goals: set by and for top management, focuses on
objectives of company as a whole. For example, 500 bottles per
week.
- Tactical goals: set by and for middle level managers, focuses on
actions to be taken to achieve strategic goals. For example, increase
production by upgrading machines service.
- Operational goals: set by and for first line managers, focuses on
short-term matters related to realizing tactical goals. For example,
work overtime.
6. Broad-based environmental factors?
- Governmental factors: changes in government policy, tax
changes. For example, GST and KWSP dividend increase.
- Economic factors: how the falling economy affects us. For
example, many people are jobless or do not have a stable income.
- Technological factors: machinery, advancement in technology.
For example, fax machines instead of overnight mail delivery.
- Demographic factors: age, gender, race, ethic make-up, education
etc. For example, meet demographic requirements of target market
when planning the launch of new product.
- Social factors: preferences of a society. For example, keep up with
trends in society when coming up with new products.
- Global factors: expand business internationally. For example,
satellite communication, easier and faster mode of transportation
and economic alliance among countries.
7. What is MBO and the process?
- Management by objectives
- Manager and employees jointly set objectives for employee
- Manager make an action plan: to meet needs of employees who are
working for them
- Manager and employees jointly review the performance of
employees over time
- Manager make a performance appraisal and reward accordingly: in
terms of bonus or job promotion
8. What is SWOT analysis?
- an outside-in business tool that is used to evaluate attractiveness of
organization structure
- internal factors: strength and weakness, external factors:
opportunities and threats
- S for Strength: any resources that helps an organization realize its
objectives and strategies, capitalize on its opportunities and prevents
it from threat. For example: staff, product quality, production
capacity, financial resources, etc.
- W for Weakness: any resources that inhibits an organization from
realizing its objectives and strategies, capitalize on its opportunities
and is vulnerable to threats such as competition. For example: same
as Strengths.
- O for Opportunities: room for improvement. For example,
competition analysis, product analysis, government policies.
- T for Threats: can implement counter measures prior to facing
threats such as competition. For example, same as Opportunities.