ENTREPRENEURSHIP

ENTREPRENEUR
The word ENTREPRENEUR is derived from the French word entreprende which means to undertake .The Webster Dictionary explains that the term entrepreneur is applicable to one who organizes , manages , & assumes the risk of a business or enterprise.

 ROLE OF AN ENTREPRENEUR
Hebert & Link (1989) have come up with elaborate lists of various roles that entrepreneurs play An individual who assumes uncertainty associated risk An individual who supplies financial capital A individual who starts off a new venture A person who owns an enterprise An individual who allocates resources among alternative uses A person who employs factors of production An individual who is a decision maker A person who has leadership qualities A person who manages An individual who is an organizer & coordinate of economic resources An innovative person

SUSTAINABILITY OF AN ENTERPRISE
Sustainable business, or green business, is enterprise that has no negative impact on the global or local environment, community, society, or economya business that strives to meet the triple bottom line. Often, sustainable businesses have progressive environmental and human rights policies. In general, business is described as green if it matches the following four criteria:
It incorporates principles of sustainability into each of its business decisions. It supplies environmentally friendly products or services that replaces demand for non green products and/or services. It is greener than traditional competition. It has made an enduring commitment to environmental principles in its business operations Another definition It is a business that meets the needs of the present world without compromising the ability of the future generations to meet their own needs A more complete definition: A sustainable enterprise is one that contributes to sustainable development by delivering simultaneously economic, social, and environmental benefitsthe so-called triple bottom line.

The Worlds Largest Organic Foods Retailer

WHOLE FOODS MARKET

Growth Through Differentiation

WFMs unique value proposition - Friendly Operating practices Whole Foods motto is Whole Foods, Whole People, Whole Planet.

Quality standards

Sustainability
Animal and Poultry standards

Sustainability
Encouraged production of organically and biodynamically grown produce Promoted soil conservation Sold only bird friendly coffee and Sustainable seafood Usage of natural materials for construction and renewable sources of power Encouraged recyclable packaging, energy & water conservation

Spoiled produce and biodegradable waste was converted in compost

Store maintenance and cleaning programs were environment friendly Companies vehicles ran on bio-fuels Visitors were educated about use of renewable energy and water conservation through brochures and placards

Examples of sustainable enterprises-India

SELCO India GMCL /FRLHT initiatives Mother Earth- industree KMF SDM Temple trust ITC Waterhealth

CRISIS MANAGEMENT
Crisis management is the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public. The study of crisis management originated with the large scale industrial and environmental disasters in the 1980s Three elements are common to a crisis: (a) a threat to the organization, (b) the element of surprise, and (c) a short decision time.Venette argues that "crisis is a process of transformation where the old system can no longer be maintained." Therefore the fourth defining quality is the need for change. If change is not needed, the event could more accurately be described as a failure or incident. Crisis management consists of different aspects including; 1, Methods used to respond to both the reality and perception of crises. 2, Establishing metrics to define what scenarios constitute a crisis and should consequently trigger the necessary response mechanisms. 3, Communication that occurs within the response phase of emergencymanagement scenarios. Crisis-management methods of a business or an organization are called a crisis-management plan.

TYPES OF CRISIS

Natural disaster Technological crises Confrontation Malevolence Organizational Misdeeds Workplace Violence Rumours Terrorist attacks/man-made disasters

 Natural crises
Natural crises, typically natural disasters considered as 'acts of God,' are such environmental phenomena as earthquakes, volcanic eruptions, tornadoes and hurricanes, floods, landslides, tsunamis, storms, anddroughts that threaten life, property, and the environment itself. Example: 2004 Indian Ocean earthquake (Tsunami) Technological crises Technological crises are caused by human application of science and technology. Technological accidents inevitably occur when technology becomes complex and coupled and something goes wrong in the system as a whole (Technological breakdowns). Some technological crises occur when human error causes disruptions (Human breakdowns). People tend to assign blame for a technological disaster because technology is subject to human manipulation whereas they do not hold anyone responsible for natural disaster. When an accident creates significant environmental damage, the crisis is categorized asmegadamage. Samples include software failures, industrial accidents, and oil spills. Examples: Chernobyl disaster, Exxon Valdez oil spill

 Confrontation crisis
Confrontation crisis occur when discontented individuals and/or groups fight businesses, government, and various interest groups to win acceptance of their demands and expectations. The common type of confrontation crisis is boycotts, and other types are picketing, sit-ins, ultimatums to those in authority, blockade or occupation of buildings, and resisting or disobeying police. Example: Rainbow/PUSHs (People United to Serve Humanity) boycott of Nike Crisis of malevolence An organization faces a crisis of malevolence when opponents or miscreant individuals use criminal means or other extreme tactics for the purpose of expressing hostility or anger toward, or seeking gain from, a company, country, or economic system, perhaps with the aim of destabilizing or destroying it. Sample crisis include product tampering, kidnapping, malicious rumors,terrorism, and espionage. Example: 1982 Chicago Tylenol murders

 Crises of organizational misdeeds

Crises occur when management takes actions it knows will harm or place stakeholders at risk for harm without adequate precautions.Lerbinger specified three different types of crises of organizational misdeeds: crises of skewed management values, crises of deception, and crises of management misconduct. Crises of skewed management values Crises of skewed management values are caused when managers favor shortterm economic gain and neglect broader social values and stakeholders other than investors. This state of lopsided values is rooted in the classical business creed that focuses on the interests of stockholders and tends to disregard the interests of its other stakeholders such as customers, employees, and the community Example: Sears sacrifices customer trustIt has 4 stages -precrisis -acute -chronic and -conflict resolution Crisis of deception Crisis of deception occur when management conceals or misrepresents information about itself and its products in its dealing with consumers and others. Example: Dow Cornings silicone-gel breast implantCrises of management misconduct Some crises are caused not only by skewed values and deception but deliberate amorality and illegality.

 Workplace violence Crises occur when an employee or former employee commits violence against other employees on organizational grounds. Example: DuPonts Lycra Rumors False information about an organization or its products creates crises hurting the organizations reputation. Sample is linking the organization to radical groups or stories that their products are contaminated. Example: Procter & Gamble's Logo controversy

GROWTH & EXPANSION

The entrepreneur is that endless challenge seeker. Once their small business is humming along, growth is the next exciting challenge. Exciting, yes - but at the same time growth can make good business sense - better brand recognition, building value in the business for employees and customers, offering a wider range of products and services to a larger geographical market, and creating "economies of scale."

DIVERSIFICATION Diversification is a corporate strategy to increase sales volume from new products and new markets. Diversification can be expanding into a new segment of an industry that the business is already in, or investing in a promising business outside of the scope of the existing business. Diversification is part of the four main growth strategies defined by Igor Ansoff's Product/Market matrix:

 Product diversification involves addition of new products to existing products either being manufactured or being marketed. Expansion of the existing product line with related products is one such method adopted by many businesses. Adding tooth brushes to tooth paste or tooth powders or mouthwash under the same brand or under different brands aimed at different segments is one way of diversification. These are either brand extensions or product extensions to increase the volume of sales and the number of customers. Horizontal Diversification When the company gets into different types of businesses for the growth of business it is called horizontal diversification . Tatas, Reliance groups of Ambanis ,Birlas etc have a divesified groups of companies. Tatas for instance are in steel. trucks and busses, cars, textiles, hotels, IT,finance tea, energy, energy drinks, watches,gold jewellery, telecom marketing of eartmovers etc.

 Vertical diversification When a textile manufaturer of cotton cloth starts a spinning mill, also a ginning factory and later on starts growing cotton in an agricultural farm it is called backward integration under vertical integration. When the manufacturer of cloth get into manufacturing ready made garments and srarts marketing them under certain brands of their own it is called forward integration. Exploring of new markets or new territories are one way of increasing the sales but unless the operations are taken to other countries with new products,they cannot be considered as diversification in the strict sense. Diversification into new market is geographical diversification which may require design of new products to suit the tastes of the customers inthe new market.