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the relationship between entrepreneurship and small business management
relationship between entrepreneurship and a small business
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Question 1: Is Big Kev a traditional small business owner or an entrepreneurial owner? Explain the key differences between the business objectives of the traditional and entrepreneurial owner.
The ownership style of Big Kev is best described as entrepreneurial. An entrepreneurial owner is one that is focused on advancement through growth, profitability, and the use of strategic management plans (Holmes et al., 2003). In contrast, the traditional owner views the business as means to achieve personal goals, as an expression of their individuality, and as a commitment needs satisfier (Holmes et al., 2003). It is clear that Big Kev has engaged in a process of expansion, underpinned with a strategic plan to further the growth of the enterprise. Big Kev does not view the enterprise as a personal needs satisfier exemplified through his offering external stock to enable expansion. Therefore, big Kev is an example of an entrepreneurial owner.
Question 2: Do you think Big Kev can let his ‘baby’ leave his control? Is Big Kev really like most small business owners: focused on control of his operating entity? How do you think Big Kev will cope with his new equity partners? Keep in mind that the company floated is called Big Kev Ltd.
It is clear that Big Kev views his role in the enterprise as fundamental, indispensable, and similar to the typical small business owner. While the enterprise is publicly listed and ownership partially separted from Big Kev, the founder still sees the management of the new entity as fundamentally similar to prior to the listing: management decisions resides with a few individuals and the personal objectives of the owner are the motivational factors that dominate the strategic plans of the enterprise, both of whi...
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...proach to finance that has been followed by the owners of M&H Refrigeration is best described as conservative. The self-imposed limitation on capital financing appears to be an attitudinal aspect of the owners. The business quite probably could increased its expansion into the technological aspects of the business and remote controlling with a risk management strategy in place. The owners are clearly attached and proud of their achievements. This translates into control issues and thus the options of capital acquisition: venture capital or public listing is not an option where control is often digressed. This leaves financing through loans as the only reasonably perceived choice. It is my firm opinion that the owners should investigate the benefits of capital acquisition in order to facilitate the expansion, an area in which I believe the business needs to be more
As with many small business owners they vision of their business usually only extends to their own abilities. They are driven and full of determination and believe their abilities will be able to sustain the business to success. Unfortunately, many small businesses lack the knowledge to be able to effectively be owners’ and leader’ to their organizations.
In 2014, JB Hi-Fi announced the retirement of their CEO Terry Smart. He had been with the company for more than 14 years. In an interview with Smart Company, Smart explained the process for hiring his successor. Smart (2014) stated that succession planning is not something that can be done overnight, it’s a long-term process and it’s part of the board’s role. When JB Hi-Fi promoted Richard Murray to CEO it was because of his extensive experience, knowledge, skills and contribution to the organisation over 11 years (Keating 2014). This example of JB Hi-Fi’s succession planning not only demonstrates their diligence in following their charter but also the emphasis placed on laying the right
external and focus on moneymaking. The responsibilities and decisions of a chief executive officer may seem daunting, how...
And finally LVMH diversification strategy (Bernard Arnault) is making acquisitions outside the company’s sector. In sector where they don’t have the “know-how” and don’t match the company Image. The current CEO (Arnault Bernard) is also the major shareholder which makes him easier to make decisions on new acquisitions
What major technology change has had the greatest impact on the quality of your life?
Not all strategies “fit” within the companies activities, some are hit and misses such as when Stewart placed Charles Koppelman to the board, where “he became chairman of the board in 2005, where he negotiated a paid consulting arrangement for himself. He was viewed as enabling Stewart’s self-regard as much as tending to th...
This separation between ownership and managerial control in this instance can be problematic as the principal and the agents have different interests and goals. In a large publicly traded corporation such as NOL/APL, shareholders (principals) lack direct control when the CEOs (agents) make decisions t...
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
The case study is about an interview, conducted to four venture capitalists from four of the most prominent VC Silicon Valley firms, Kleiner Perkins Caufield & Byers (KPCB), Menlo Ventures, Trinity Ventures and Alta Partners. These firms invest both in seed as well as in later-stage companies, which operate mostly in the information technology sector. However, each VC has developed different sector portfolio depending on the expertise of the venture capitalists, the partner network and other factors. Professor Mike Roberts and Lauren Barley a senior research associate, both from Harvard Business School, have made a series of seven questions to their interviewees to understand how they evaluate potential venture opportunities and what they look at in order to decide if they will fund them and in which way. The questions were dealing with how VC’s evaluate potential venture opportunities, how they conduct due diligence, what process id followed for the decision making, what financial analyses is performed, the role of risk in the evaluation and how they think of potential exit routes. These questions were asked individually and revealed several similarities as well as differences in the strategy and the criteria that are used for the evaluation.
The Body Shop International case is an interesting case study into the miscommunication of owners and stockholder interests with regard to financial conditions. Anita Roddick, the founder of The Body Shop had no financial experience and thought that all she needed to do was expand her business and the financing would take shape as she developed her business. While Anita’s product concept of a natural skin-care line was good; her lack of experience in financial matters took its toll on her business.
1. Ken Lay served as CEO and chairman and Jeffrey Skilling also served as CEO. They both were responsible for planning, organizing, controlling and leading the company. They set goals for the company and organized how they would be achieved. Kay’s role was as the figurehead and the leader. He also served as the spokesperson for the company and made many of the decision on the future of the company. As CEO’s they both possessed effective communication skills, where decisive, which was evidenced by their vision for the company and refusal to admit wrong even at the end, and visionary. Throughout Lay’s tenor the company continued to grow and prosper at a fast pace.
“Going forward, the company is well positioned for future growth, and Nigel and his team remain focused on driving franchisee profitability and delivering shareholder value” shares Lead Director Raul Alvar...
Pruett, M., & Winter, G. (2011). Why do entrepreneurs enter franchising and other share relationships?1. Journal of Small Business and Entrepreneurship, 24(4), 567-581,603-604. Retrieved from http://search.proquest.com/docview/923419785?accountid=39476
Owner’s capital means the resources that the entrepreneur put when he starts the business. That capital can be many different things, for example machineries, equipment and money. In different forms of business ...
The owner has the ability to grow or contact its operation at will with no need to consult with a boss or board of directors