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5 views4 pages

Untitled Document

Uploaded by

Musa Gorod
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BBM 227:ENTREPRENEURSHlP

ASSIGNMENT

1.Discuss the competitive analysis of an entrepreneurial environment.


(1O marks)
1.The Bargaining Power of Buyers.
Buyers threaten an industry by forcing down prices, bargaining for higher quality or more
services, and playing competitors against each other. These actions erode industry profitability.

2.The Bargaining Power of Suppliers.


Suppliers can exert bargaining power by threatening to raise prices or reduce the quality of
purchased goods and services. Powerful suppliers can squeeze the profitability of firms so far
that they can’t recover the costs of raw material inputs.

3.The Threat of Substitute Products and Services.


All firms within an industry compete with industries producing substitute products and services.
Substitutes limit the potential returns of an industry by placing a ceiling on the prices that firms
in that industry can profitably charge.

4.The Intensity of Rivalry among Competitors in an Industry.


Firms use tactics like price competition, advertising battles, product introductions, and increased
customer service or warranties. Rivalry occurs when competitors sense the pressure or act on
an opportunity to improve their position.

5.The threat of new entrants refers to the possibility that the profits of established firms in the
industry may be eroded by new competitors.

2.Analyse the policy and conceptual framework for small businesses in Kenya. (20
marks)
1. An overall purpose of business.
This is the main reason as to why the business exists i.e. what does business do? What does it
plan to achieve? What customers does it serve? What stakeholders does it relate to? How does
it perform in a given ministry? Number of products and services, branches or organization
programs undertaken etc.

2. Identity of the business.


This is the unique characteristics that the business is known for. This helps the business to
carve a niche in the industry. Also help business to ensure survival in the midst of competition.

3. The activities.
This refers to what the business does to achieve its overall objectives. This may involve,
designing and marketing of products and services, providing social services to surrounding
communities motivating and encouraging the stakeholders to be better off, acquisition of the
factors of pattern etc.

4. The resources.
Includes all factors of production that are used as the activities are undertaken when developing
policies the management must identify, mobilize, allocate, utilize and control all the factors of
production. The management must ensure that the costs are in line with the identity of the
business. Also that the quality and quantity of the factors of production are maintained.

5. The Environment.
Environment as a variable of business policy framework sets the limits of business survival
depending on whether the environment is controllable or non-controllable. Controllable
environment includes all the factors within the business that the policy maker can change e.g.
the organization climate, organization culture, organization structure, channels of
communication and devolution, the quality and quantity of resources, the relationships within the
business, the control systems within the business etc.

3.Evaluate the concept of a business plan and business project report and their role in
entrepreneurial practice. (20 marks)

After you create your Business Plan, in order to succeed, it is essential that you evaluate it
periodically and modify the sections that you feel are not working for your business.

we will explore 5 ways in which you can evaluate your business plan:
1. How Viable is your Plan?
While starting up your business, there may have been many assumptions you made that do not
translate well into the functioning of your business.
When evaluating your plan, look for the gap between these assumptions and the reality of your
business. Make adjustments and corrections to ensure that your business plan is more realistic
and in touch with the current and future scenarios of your business.
Create a Business Action plan based on this evaluation and ensure it works well with your
strategies for growth.

2. Involve your employees


Your employees are involved in the details of the running of your business. Share your Business
plan with them and ask for their feedback.
This will allow you to gauge how the plan actually impacts the running of your business. It is key
to ask them questions such as:
● Do they have suggestions to improve ways to provide better customer service?
● Do they feel the objectives laid out in the business plan align with the way they currently
do their jobs?
● Do they feel that the correct target audience is being reached?
● Is there any possible target group that could also be targeted for your business?
3. Is your Target Group correct?
Before starting your business, you may have listed out your ideal consumer based on age,
income, gender and so on.
After your business has been running for a period of time, you will need to look at these
demographics, check if your assumptions were right and if you can find a way to widen your TG
by enhancing your products or services.
Getting a good grip on which the right TG is for your business will enable you to make better
marketing decisions as well as allocate funds in a better, smarter way.

4. What are Current Industry Trends?


When evaluating your Business Plan, it is important to look at industry trends and ensure that
you are making the best of current trends that impact your business.
It is also essential that you examine the ways in which competitors have changed their
functioning to accommodate the change in trends.
This does not mean that it is necessary to ape competitor moves but rather you look at the best
way you can better your service and deliver benefits to consumers that competitors are unable
to due to their restraints in the market.

5. Are your funds allocated properly?


Every month, spend an hour with your accountant or set up a weekly meeting in order to get a
clear picture of how your resources are being spent.
Discover if there are other ways in which your resources can be optimized, how you can reach
more people by concentrating on more marketing channels or focusing on the ones that will
reap you better benefits for the time and effort spent on them.
It is very important as your business grows and expands to ensure that you are on the right
track with your business plan. Make sure that you take the time to evaluate your plan at least
every quarter to make sure your business and your business plan is on the path to success.

5 roles of a business plan:

1.It will help you steer your business as you start and grow.
Think of a business plan as a GPS to get your business going. A good business plan guides you
through each stage of starting and managing your business. You’ll use your business plan like a
GPS for how to structure, run, and grow your new business. It’s a way to think through and
detail all the key elements of how your business will run.

2.It’s not as hard as you think.


A business plan is a written tool about your business that projects 3-5 years ahead and outlines
the path your business intends to take to make money and grow revenue. Think of it as a living
project for your business, and not as a one-time document. Break it down into mini-plans – one
for sales and marketing, one for pricing, one for operations, and so on.
3.It will help you to reach business milestones.
A well-thought-out business plan helps you to step back and think objectively about the key
elements of your business and informs your decision making as you move forward. It is
essential whether you need to secure a business loan or not. Keep in mind that the plan does
not have to be like an encyclopedia and does not have to have all the answers.

4.It can help you get funding.


Business plans can help you get funding or bring on new business partners. Having one in
place will help investors feel confident that they will see a return on their investment. Your
business plan is the tool you will use to persuade others that working with you (or investing in
your business) is a smart decision.

5.There’s no wrong way to write a business plan.


There is no right or wrong way to write a business plan. You can pick a plan format that works
best for you. What’s important is that your business plan meets your needs. Most business
plans fall into one of two common categories: traditional or lean startup.

Evaluate Business Project Report

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