Table of Contents

Question no. 1 ........................................................................................................................................... 1

i) Who are intrapreneurs?................................................................................................................. 1
Answer : ............................................................................................................................................... 1
ii) Explain the difference between Entrepreneurs and Intrapreneurs using suitable
examples. ................................................................................................................................................ 2
Answer : ............................................................................................................................................... 2
Independence ..................................................................................................................................... 2
Risks..................................................................................................................................................... 2
Funds ................................................................................................................................................... 2
Relationship With The Business ...................................................................................................... 3
Question No.2 ........................................................................................................................................... 4
i) Explain the 3 steps involved in identifying the target market. ................................................. 4
Answer : ............................................................................................................................................... 4
Step 1: Define Your Market ................................................................................................................ 4
How Big Is It? .................................................................................................................................... 4
What’s Your Competition? ............................................................................................................ 4
Study Demographics....................................................................................................................... 5
Identify Specific Technologies ..................................................................................................... 5
Look at Geography .......................................................................................................................... 5
Step 2: Define the Product................................................................................................................. 6
Step 3: Promote the Product ............................................................................................................. 7
Customize Your Promotion to Your Market Segment ............................................................ 7
Understanding Targeted Marketing ................................................................................................ 7
Question no. 3 ........................................................................................................................................... 8
i) Explain with local and international examples, the advantages of franchising to the
franchisee (entrepreneur). .................................................................................................................... 8
Answer : ............................................................................................................................................... 8
Franchising and entrepreneurship A McDonald's Restaurants case study .................................... 8
Page 2: Advantages to the franchisee ............................................................................................... 8
Reference ................................................................................................................................................. 12
Question no. 1

i) Who are intrapreneurs?

Answer :

An intrapreneur is an employee within an organization who has certain

entrepreneurial skills and who is given the responsibility and authority to use those
entrepreneurial skills to develop a new product without incurring the risks associated
with it.

Precisely:

An intrapreneur is what we get when we deduct entrepreneurial risks from the life of an
entrepreneur.

That is, you get your salary even if your product fails.

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 ii) Explain the difference between Entrepreneurs and Intrapreneurs using
suitable examples.

Answer :

The ways in which entrepreneurs and intrapreneurs work are similar yet differentiable.
An entrepreneur has full liberty over his decisions which he uses to envision and create
the company and its products from scratch. While an intrapreneur experience less
liberty but a broader vision in decision making as he is entitled to create a new
productfor a brand that already exists and can also capitalize on its existing brand
equity and positioning.

The following points may clear the difference between an entrepreneur and an
intrapreneur:

Independence

An entrepreneur is independent to take any decision for his company. He may or may
not consult anyone before taking any decision. However, an intrapreneur usually reports
to the owner and other top official and is usually dependent on them.

Risks

An entrepreneur is always at a risk to lose everything he has invested in the company

whereas the risks of new products developed by intrapreneurs are usually borne by the
company.

Funds

An entrepreneur has to struggle with fund generation and there are cases when
the startup fail because entrepreneur could not generate enough funds for its survival.
Funding is not much of a problem in intrapreneurship. They get the fund if the company
feels it’s necessary.

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Relationship With The Business

In the early life of a startup, the entrepreneur and the business act as one. The
entrepreneur and his startup cannot be separated. However, the intrapreneurs often
lack this relationship with the company they work with.

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Question No.2

i) Explain the 3 steps involved in identifying the target market.

Answer :

A lot of people think about marketing, and they think about selling to a niche, and to me
that’s not really a very specific way of thinking about marketing. Market segmentation is
really a science, and you seriously have to do your homework.

Unless you define your market specifically to meet your needs, develop complete
products for your customers, and then market specifically to the target market
customers’ needs, wants, and desires, you’re just not going to be successful.

Step 1: Define Your Market

How Big Is It?
First of all, you have to divide up a big market and you have to look at the size of the
segment. If it’s too small, it needs to be economically interesting, especially to your
investors. But it’s too big, you’re not going to be able to address it. So you have to really
do some research on the size of the market, and also you have to look at whether or not
you can address that market.

If you look at a market for which you don’t have the core competencies or you don’t
have the skill set needed to address it, you’re not going to be successful – or you’re
going to have to invest a lot more money to be able to get into that particular market.

What’s Your Competition?

You also want to look at what the competition is in those markets. If there is somebody
there that already owns the market, you really have to calculate whether or not you’re
bringing something new to the party; whether or not you’re bringing an innovation that’s
going to disrupt that market.

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Study Demographics
So the kind of characteristics that you look at in order to create a segment would be
things like demographics (gender, lifestyle, etc…).

You might also look at age. I did a project once with the PGA, and they were looking to
sell something to the golf market. It really has a wide variety of people. You would
develop something that was quite different for retirees than you might develop for
millennials. So you want to look at the characteristics of each age groups. What are
their buying patterns?

Identify Specific Technologies

You could also look at technologies. You can look at it in terms of an industrial or B2B
play. You might be looking at the kind of technologies that are specific to that area.

Look at Geography
You can also look at geographic markets. Often, companies that are large or are
working on an international or national level might look at geographical characteristics.

Particularly in an industrial setting, you might wondering what the supply chain
constraints are? It’s very difficult to get people in industrial production to change what
they’re doing currently, or the kinds of products that they’re buying. They face huge
expenses if they change from one product to another, so there has to be a real reason
for them to do so. Those might be real barriers to market entry.

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Step 2: Define the Product
Once you define what your market is going to be, and decide on going into a particular
market segment, the first step is always to define the product.

Bill Davidow, who was the VP of marketing at Intel many years ago, wrote a book
called Marketing High Technology. It’s still in my mind one of the best marketing books
for technology companies I’ve ever read. One of the things that Bill says is that the
definition of marketing is: “creating complete products and driving them to commanding
positions in defensible market segments.” When you think about a product, it has to
answer all the needs, wants and desires of the customer in that particular market
segment.

Once you have your product and you know what your product is for that specific market
segment; only then can you really decide on the price, place, and promotion.

Price will fall into line once you have the products designed, as will your marketing and
distribution channels.

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Step 3: Promote the Product
Lastly promotion, which is funny to me because many people start with promotion, but
you can’t promote until you know the other three elements.

Promotion has to be really specific to your market segment, but this also saves you a lot
of money if you’re doing a good segmentation plan. You don’t have to advertise in Time
magazine, where single pages cost $90,000-$100,000 dollars, or on the front page of
USA Today. You can now advertise in the areas that are specific to your market
segments.

Customize Your Promotion to Your Market Segment

A really great example of this again is the work we did with the PGA, where they really
wanted us to do a lot of viral marketing and they really wanted us to do a lot of Social
Media. They were saying, “oh, it’ll go viral.” When you’re marketing to retirees, who are
in their 70s or 80s, these people aren’t spending all their time online. Some of them are
on Facebook, maybe, to see what their grandkids are doing, but they’re typically not
checking it the way that young people do. So we found it was much more effective to
work on radio. They all listened to oldies stations, they all went to all these oldies
concerts; they had a lifestyle that was quite different from the mass market.

Understanding Targeted Marketing

When you know your target market, and you understand their psychographics, how they
think about things, and what holds them emotionally; once you really have all those key
elements in place you will be able to nail market shares.

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Question no. 3

i) Explain with local and international examples, the advantages of franchising

to the franchisee (entrepreneur).

Answer :

Franchising and entrepreneurship

A McDonald's Restaurants case study

We choose mcdonald’s restaurants as our examples for the advantages of franchising

to the franchisee.Below are the advantages to the franchisee.

Page 2: Advantages to the franchisee

Being their own boss

In return, the franchisee agrees to operate the restaurant in accordance with

McDonald's standards of quality, service, cleanliness and value. McDonald's regularly
checks the quality of the franchises output and failure to maintain standards could
threaten the licence. The franchisee is also expected to become involved in local events
and charities. Ray Kroc believed strongly that a business must be prepared to put
something back into the community in which it operates.

The franchisee, for all the training and support McDonald's offers, is running his or her
own business. They fund the franchise themselves and therefore have much to lose as
well as gain. This makes them highly motivated and determined to succeed.

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Selling a well established, high quality product

In this case, the product is recognised all over the world. A large proportion of new
businesses and new products fail, often due to costs of the research and development
needed. The McDonald's formula, however, has been successfully tried and tested. Ray
Kroc's insistence that all McDonald's outlets sold the same products and achieved the
same quality has led to a standardisation of the process and great attention to detail.
The cooking processes in McDonald's restaurants are broken down into small, repetitive
tasks, enabling the staff to become highly efficient and adept in all tasks.

This division of labourand the high volume turnoverof a limited menu allows for
considerable economies of scale. For the franchisee, this can considerably reduce the
risk of setting up their own business. There is no need to develop the product or do
expensive market research. Nor will they have sleepless nights wondering if the product
will appeal to the consumer. McDonald's carries out regular market research.

Intensive initial training

Every franchisee has to complete a full-time training programme, lasting about nine
months, which they have to fund themselves. This training is absolutely essential. It
begins with working in a restaurant, wearing the staff uniform and learning everything
from cooking and preparing food to serving customers and cleaning.

Further training at regional training centres focuses on areas such as business

management, leadership skills, team building and handling customer enquiries. The
franchisees will have to recruit, train and motivate their own workforce, so they must
learn all the skills of human resource management. During the final period, the trainee
learns about stock control and ordering, profit and loss accounts and the legal side of
hiring and employing staff. Consequently, no McDonald's franchisee would have to ask
a member of his or her staff to do something that they couldn't do themselves. Knowing
this, can also be a powerful motivator for the staff.

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Continuous support

McDonald's commitment to its franchisees does not end with the training. It recognises
that the success and profitability of McDonald's is inextricably linked to the success of
the franchises. A highly qualified team of professional consultants offer continuous
support on everything from human resources to accounting and computers. The field
consultant can become a valued business partner and a sounding board for ideas.

Benefit from national marketing carried out by McDonald's

A brand is a name, term, sign, symbol or design, (or a combination of these) which
identifies one organisation's products from those of its competitors. The phenomenal
growth of McDonald's is largely attributed to the creation of its strong brand identity.
McDonald's trademark, the Golden Arches, and its brand name has become amongst
the most instantly recognised symbol in the world.

In the UK, McDonald's recognised the need for a co-ordinated marketing policy. In order
to be successful, an organisation must find out what the customers want, develop
products to satisfy them, charge them the right price and make the existence of the
products known through promotion. Cinema and television advertising have played a
major part in McDonald's marketing mix. McDonald's is now the biggest single brand
advertiser on British television.

Radio and press advertisements are used to get specific messages across emphasising
the quality of product ingredients. Promotional activities, especially within the restaurant,
have a tactical role to play in getting people to return to the restaurants regularly. All
franchisees benefit from any national marketing and contribute to its cost, currently a
fee of 4.5 percent of sales.

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 The franchisees additionally benefit from the extensive national market research
programmes that assess consumer attitudes and perceptions. What products do they
want to buy and at what price? How are they performing compared to their competitors?

Any new products are given rigorous market testing so that the franchisee will have a
reasonable idea of its potential before it is added to the menu. The introduction of new
products, which have already been researched and tested, considerably reduces the
risk for the franchisee. Massive investment in sponsorship is also a central part of the
image building process. Sponsorship includes:

 Football World Cup

 Olympic Games
 Community Partner of The Football Association
 The Scottish Football Association
 The Northern Ireland Football Association
 The Football Association of Wales

all of which increases awareness of McDonald's brand. However, McDonald's still

follows Ray Kroc's community beliefs today, supporting the Tidy Britain Group and the
Groundwork Trust, as well as local community activities.

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Reference

1) https://www.feedough.com/intrapreneur/
2) https://businesstown.com/shows/market-segmentation/3-steps-identifying-target-market/
3) http://businesscasestudies.co.uk/mcdonalds-restaurants/franchising-and-
entrepreneurship/advantages-to-the-franchisee.html
4)

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