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Bahria University Spring 2011
BBA VI (A)
Entrepreneurship Student Individual Project 2
(Book Review)
Instructor: Prof Manzoor Iqbal Awan, Col (R)
Faculty Member & Senior Consultant
* USQ (Australia), COMSATS & NUML.
* Bahria, Air & Preston Universities
* University of Lahore
* Dual Matrix Inc. & MDi
Cell: +92 321 850 0732 ; Email: [email protected]
Profile: www.linkedin.com/in/manzooriqbawan
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Teacher’s Note
It is the endeavor of every business school of repute to provide
environment conducive for producing business executives with
ability to think out of the box. Recognizing that Bahria University’s
Management Sciences Department very much falls in that category,
and with a strong faith in the abilities and potential of our youth, I
have been prodding my students over the last couple of years to come up with relevant
study/research papers, and then compiling those as reference material for subsequent
studies. That has been done in the case of the students of Bachelors of Business
Administration 6th Semester Section A during the spring 2011 semester too, and
with very stimulating results. They were required to complete three major assignments
as part of Comparative Management program – first the allotted country study on
individual basis, the second a multi-dimensional individual study of comparative
management practices of allotted large multinational corporations, and lastly the study
of business environment of select region as a group project. All of these required high
degree of understanding and application of the international management concepts
covered in the class as well as painstaking research work and creative thinking. Initial
words of caution about the required rigor were generally taken lightly, but the
situation soon changed when their usual online searches would not yield the data
suited for ‘cut and paste’ work. Thereafter there was no dearth of the burning of
midnight oil, leading to the production of some thought provoking study papers. Not
only these were rich in valuable data, the attempted analytical work was generally of
high standard. It would be a pity if such wealth of knowledge is not made use of; thus
this effort at compilation for suitable placement as reference material.
Needless to say that these are the works of students in an area to which they have been
exposed for the first time. Hence there is room for improvement, and at places
substantial one. But what is of special significance is the originality of work, and that
this could serve as a humble beginning towards attaining greater creativity in the times
to come, besides developing ability to handle independently and in teams such
projects calling for diligent research work.
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It will be unfair if labor of Anwa Suhail in making this compilation possible with the
assistance of Asma Noreen is not recognized. The final product itself reflects this
amply.
I wish the contributing students success, with prayers that Allah Almighty may crown
their efforts at professional development, and bless them with success and happiness.
Prof Manzoor Iqbal Awan, Col (R)
Faculty Member & Senior Consultant
* USQ (Australia), COMSATS & NUML.
* Bahria, Air & Preston Universities
* University of Lahore
* Dual Matrix Inc. & MDi
Cell: +92 321 850 0732
Email: [email protected]
Profile: www.linkedin.com/in/manzooriqbawan
24 May 2011
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Candidate’s Declaration
We hereby declare that the work presented in this compilation of 41 BOOK REVIEWS
titled “REVIEW OF BOOKS ON ENTREPRENEURSHIP” submitted towards
completion of mini-project in sixth Semester of BBA at the Bahria University, Islamabad.
We have tried our level best to present the best possible work to Sir Manzoor Awan, still
pardons for any, if found, as we are all humans and prone to mistakes. We have covered the
major flaws in compilation regarding editing of reports (spelling mistakes, borders,
alignment, front pages, table of contents and graphical presentation). It was an excellent
experience compiling the work of all our class fellows. Of course there were hurdles and
mistakes, triumphs and setbacks, yet it is all this, that made it a good learning opportunity.
Our past experiences were limited to just making our own projects and presenting them in an
appealing fashion while this one constituted of us integrating the individual efforts of
students to create one masterpiece, wherein lies its uniqueness.
Lastly, we hope you enjoy going through the content of the document and find it
knowledgeable☺
It is an authentic record of our original work pursued under the guidance of Mr. Manzoor
Awan.
(ANWA SUHAIL, ASMA NOREEN)
Place: BAHRIA UNIVERSIRY, ISLAMABAD Date: 24 -MAY-2011
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Acknowledgement
There is always a sense of gratitude, which we express to others for the help and the services
they render during the different phases of our lives. We also wish to express our gratitude
toward all those who have helped us directly or indirectly in preparing this report.
First and foremost, we would like to express our sincere gratitude to our project compilation
guide, Mr. Manzoor Awan. We were privileged to experience a sustained enthusiastic and
involved interest from his side. This fueled our enthusiasm even further and encouraged us to
boldly step into what was a totally dark and unexplored expanse before us.
I would also like to thank my class mates who were ready with a positive comment all the
time, whether it was an off-hand comment to encourage us or a constructive piece of
criticism.
Above all we shall thank Allah Almighty whose endless blessings and mercy are always with
us.
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Contents
ENTREPRENEURIAL SEEDS OF SUCCESS ........................................................................... 10
SMALL ENTREPRENEURS IN DEVELOPING COUNTRIES................................................ 14
CORPORATE ENTREPRENEURSHIP AND INNOVATION .................................................. 18
BUSINESS STRIPPED BARE: ADVENTURES OF A GLOBAL ENTREPRENEUR ............ 25
FUNDAMENTALS OF ENTREPRENEURSHIP ....................................................................... 28
ENTREPRENEURIAL MANAGEMENT ................................................................................... 32
DIRECT FROM DELL................................................................................................................. 36
THE WOMAN ENTREPRENEUR.............................................................................................. 42
FLYING SOLO: HOW TO GO IT ALONE IN BUSINESS ....................................................... 47
BLUE PRINT FOR GREATER SUCCESS ................................................................................. 51
ENTREPRENEURSHIP: CONCEPTS THEORY AND PERSPECTIVES ................................ 55
PATTERNS OF ENTREPRENEURSHIP ................................................................................... 58
ENTREPRENEURIAL MANAGEMENT ................................................................................... 61
THE ENTREPRENEUR NEXT DOOR....................................................................................... 66
THE KNACK................................................................................................................................ 70
ENTREPRENEURSHIP: NEW PERSPECTIVE IN GLOBAL AGE ......................................... 78
BUSINESS ELITES ..................................................................................................................... 82
ENTREPRENEURSHIP ............................................................................................................... 87
LEAD LIKE AN ENTREPRENEUR ........................................................................................... 90
MY BIG IDEA.............................................................................................................................. 94
THE ART OF DEAL .................................................................................................................. 104
THE ILLUSIONS OF ENTREPRENEURSHIP ........................................................................ 110
LATERAL LEADERSHIP ......................................................................................................... 114
ENTREPRENEURSHIP: VALUES AND RESPONSIBILITY ................................................ 118
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ENTREPRENEURSHIP ............................................................................................................. 121
SMALL GIANTS ....................................................................................................................... 125
INNOVATION AND ENTREPRENEURSHIP; PRACTICE AND PRINCIPLES .................. 129
THE INTENTIONAL ENTREPRENEUR ................................................................................. 135
FUNDAMENTALS OF ENTREPRENEURSHIP ..................................................................... 138
ENTREPRENEURS ARE MADE NOT BORN ........................................................................ 141
GOOD TO BE GREAT .............................................................................................................. 147
ENTREPRENEURSHIP THEORY, PRACTICE AND PROCESS .......................................... 162
THE SUCCESSFUL ENTREPRENEUR’S GUIDEBOOK ...................................................... 165
THE ENTREPRENEUR NEXT DOOR..................................................................................... 169
GOOD TO GREAT .................................................................................................................... 173
THE TIPPING POINT................................................................................................................ 181
THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE .............................................................. 185
GOOD TO GREAT .................................................................................................................... 191
PURPLE COW ........................................................................................................................... 195
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Entrepreneurial Seeds of Success
By: JOHN FORBAT
AHSAN AUSAF
01-111082-004
BBA 6A
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Whenever someone asked me about what I would do in life my answer was I’d like to do
something different, something unique, something that I myself was unable to put into words
until I read this book and came to know about entrepreneurship and at different levels.
This book is makes the readers learn practical business experiences and challenges gleaned
by the author, to the formation of the budding entrepreneur’s attitude and business
aspirations. The down to earth ideas and experiences related here provide valuable reading to
all budding entrepreneurs and practicing business executives. It is a valuable and practical
addition to the curriculum of business Schools and gainful reading for civil servants and their
masters in Government, who ha ve such a profound effect on the environment in which
entrepreneurs have to live.
The book mainly relates to entrepreneurship in industry and cover topics from issues for start-
ups, to problems of the more complex company’s chief executive. They thread an instructive
path of real life, first hand case studies and developed ideas, through aspiration to success,
without neglecting occasional failure and painful disappointment. It is intended to show that
entrepreneurs can successfully challenge the normally accepted limits of “what is possible” in
business. The author relates to different aspects of entrepreneurship and illustrates actual
business experiences – enumerating the lessons to be learned. Entrepreneurship is usually
associated with individuals and small companies. Yet it is the successful entrepreneurs who
develop businesses into large corporations, when it is their spirit, leadership and
determination that engender continuous growth.” For a chance of success, every entrepreneur
needs imagination and vision, perseverance in pursuit of a dream and the capacity for sheer
hard work. If success leads to a corporation style business, leadership skills and sensitivity to
people become as important as the continuation of the entrepreneurial spirit.
Forbat quite affectively narrates success and failure, hope and disappointment. Their
origination from one pen tends to weave a thread, which follows particular experiences,
without constituting a complete story.
Forbat Challenge’s the normally accepted limits of "what is possible" in business
He quote’s that entrepreneurship is usually associated with individuals and small companies.
Yet it is the successful entrepreneurs who develop businesses into large corporations - their
spirit, leadership and determination lead to great things.
In this book John Forbat, serial entrepreneur, covers:
- Characteristics you will need to succeed.
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- Issues those start-ups face.
- The TASK principle and the 4 T's.
- Management and company politics.
- Spotting unrecognized markets.
- Convincing people that the "cure for which there is no ill" does have an ill.
- The importance of R&D and how it doesn't have to cost thousands.
- How necessity can be a real mother of invention.
The book includes case studies which provide fascinating insights into how the author:
operated a company on two continents (without capital!); turned a company facing
insolvency into a takeover target; and managed to turn a good business plan and a relatively
small amount of credit into a company with profits of $200,000 p.a.
The book gives amazing success tips to budding entrepreneurs and suggest at working
something you enjoy and become proficient at it. He elaborates his points by telling that is no
good starting off as a wide looking generalist, who knows little about anything. The next
thing is to do a lot of listening. A university degree mainly enables one to realize how much
more there is to know. Then think. Always think, work out why, figure out solutions to
problems, then suggest, recomme nd and help to make decisions. The book contains easy to
read solutions that are easy on mind and one grasps them quite easily. One of such many
principles mentioned in the book is TASK which states:
It is only necessary to think, to analyze, to solve and then to kill the problem.
• THINK
• ANALYSE
• SOLVE
• KILL
TASK is the principle to follow if you want to ensure success of a project or a business.
Another such essential principle to success is that every problem has a solution.
The down to earth ideas and experiences related in this book make it essential reading for all
budding entrepreneurs and those already in business. Few of many lessons that can be learnt
from this book are
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• Get a good education.
• Become proficient in a trade or occupation that you enjoy.
• Immerse yourself in the business of a company and see the big picture.
• Learn to analyze business situations in the widest sense.
• TASK: Think – Analyze – Solve – Kill the problem.
• The four Ts: Truth – Tact – Thick skin – Toughness.
• Listen; prepare to quantify and to take risk.
• Be decisive
Entrepreneurship: The seeds to success are an easy read that will make idea’s hover over your
mind and make you realize how to make use of opportunities in opportune time and way. I
would recommend every aspiring entrepreneur and student to read this amazing work.
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Small Entrepreneurs in Developing Countries
BY: DR. ASGHAR S. NASIR.
ASMA NOREEN
01-111082-017
BBA 6A
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This book is an amazing read that highlights two questions; whether it is really worthwhile to
pay attention to small scale industries, and how to identify among them those entrepreneurs
with potential to receive all encouragement and assistance to facilitate their entry in modern
sector of small scale industries.
The second question is how to transform additional business practices with modern methods
to conduct business and what are those practices that need to be introduced to formulate
programme and statistical measures to implement action oriented approach in developing
countries.
Author suggests exploring the ways by which governments, internal organizations can co-
operate in re orienting developmental strategy towards more effective outward approaches to
develop and assist small enterprises.
By small-scale industries, author has in mind the modern sector of small industries and
creation of enterprise and development of entrepreneurship which is subject of this book.
The writer has in view the small industries that are modern to a degree in respect of
equipment, but not in techniques of production and management.
Author has made a point in emphasizing that small scale industry development is beyond any
question and has an important role in overall economic criteria.
Policy makers and administrators have responsibility to give serious considerations to the
recommendations highlighted in this book, to offer guidance to entrepreneurs for equal
opportunity to build confidence to enter challenging sector of small scale industries as
successful entrepreneurs. The gaps among the practices to conduct business by more
sophisticated techniques to meet challenges of modern industrial revolution are being
mentioned in this book.
Author’s suggestion itself speaks of solving the pr oblem through operational research
approach, the principal output that is characterized by the word “choice” and “decision”. The
answers to both are objectively analyzed to tackle the problems of today’s and tomorrow’s
business.
The economic problems and technocratic approaches to policy making cannot be solved in a
political vacuum; and qualitative appraisal is as important as quantitative calculations in
public policy formulation. The formal economic principles must give way at some point to a
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value judgment. In considering each problem, you will have to exercise own judgment on a
set of questions. What crucial policy issue is the problem? How can they be resolved? What
course of action may be preferable? The first priority has been given in this book, to those
management areas which seem to be lacking techniques for yield out puts by more
sophisticated techniques to diagnose problems and then some answers to facilitate institutions
to assist small entrepreneurs. Today, the question of what services, if any governments should
or should not provide is still seem by contradictory policy. Small businesses need assistance
to introduce appropriate business management practices for improving productivity, quality
and technology. Success or failures in these vital areas depend on professional managers.
Winners in the productivity race distinguish themselves from losers because they understand
this fact. Every operational area needs assistance through strategic planning to the
organization of people. Managers of most small to medium size businesses have not had
management training. This book addresses the fundamental input to introduce in different
dimensions, for upgrading business practices as well as for governments to tailor a program
for entrepreneur development. You may find portions of the text already within your sphere
of knowledge, but been led in recipe – like fashion through the process of implementing
professional management may re-enforce that knowledge.
My personal opinion is that the author’s observa tions appear rather scattered and
heterogeneous; it may be because we in developing countries have not yet been able to reach
at an approach and concept for entrepreneurship in development to participate. It appears that
we need to extend our knowledge in several fields and to do a good need in partial research
before any workable theory can usefully be constructed.
In a nutshell, our problems may be stated as follow. We can in a sense view economic
development as taking place when entrepreneurs are “successful”. For the development
economist, interesting question, what is it that constitutes successful entrepreneurship? If we
know more about the “environment” of private enterprise in any one community, could we
better envisage the way it might develop in the long run, and better design policies and
perhaps also institutions, which would enhance the prosperity of the community as a whole?
Of course we cannot hope to settle these questions once and for all in this book. We still need
to find out more about the environment in which a private industrial sector can merge in a
less developed country especially with reference to government policies and seek to reveal
what constitutes more or less successful entrepreneurship.
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The purpose of this book is to present a simplified way of projecting the vital issues of small
industry development strategies, which might be adopted. The presentation is to provide a
panoramic view of subject without entering into detailed discussion. The suggested models
are simplified since differences in the level of development of countries of third world are not
as sharp as those assumed and since exceptions to the strategies proposed in reports are found
in actual practice in certain countries for good reasons or otherwise. Never the less it is felt
that the main orientations proposed here would be the base to diagnose weakness at the early
stages of development on the one hand and on the other hand at the threshold of rapid and
self sustained industrial growth. The book reviews successfully the over gaps and has made
astute suggestions for improvement measures.
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Corporate Entrepreneurship And Innovation
By: MICHAEL M. MORRIS
AMINA SHAHAB01-11082-008
BBA 6A
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This is the classic on how entrepreneurial ventures go to market. It focuses on good examples
and explains core concepts of strategic and product marketing like segmentation, whole
products, and of course, the famous “chasm.”This serious, detailed book offers a
nonconventional marketing approach for high-tech promoters and investors. Consultant
Geoffrey Moore has thought long and hard about how to market new technology, so the book
sometimes reads like an intriguing personal essay. He makes an elaborate case about different
technology users, citing product examples to explain why each consumer matters at certain
stages in product marketing. At times, his presentation get a little strained, such as when he
tries to describe how consumer groups "reference" each other or how marketers must engage
in "informed intuition." Moore devised his own explanations for the successes and failures of
different high-tech marketing tactics, so your level of agreement depends on how much of his
detailed theory fits your marketing concerns
About the author:
Geoffrey A. Moore is a managing partner at a consulting firm in San Mateo, California, and
a partner in a venture capital firm in Menlo Park, California. He is the author of Inside the
Tornado, the Gorilla Game and Living on the Fault Line.
Book Review:
Key Points:
• There is a “chasm” between early adopters and the early majority users in a product’s
life cycle into which many promising products fall, unable to make the leap.
• One successful way of making this connection is to target a specific niche where you
can be not just a competitor, but the winner. Having established this ‘beachhead’, it’s
easier to expand into other niches and the market at large
In Crossing the Chasm, Moore begins with the diffusion of innovations theory from Everett
Rogers, and argues there is a chasm between the early adopters of the product (the technology
enthusiasts and visionaries) and the early majority (the pragmatists). Moore believes
visionaries and pragmatists have very different expectations, and he attempts to explore those
differences and suggest techniques to successfully cross the "chasm," including choosing a
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target market, understanding the whole product concept, positioning the product, building a
marketing strategy, choosing the most appropriate distribution channel and pricing.
The method outlined to cross the chasm follows these steps:
• Target the attack - you must choose a niche to use as a beachhead. As a startup or new
market entrant, you aren’t likely to have the resources necessary to focus on a large
market, so it’s better to be more effective in a smaller one.
• “Assemble an invasion force” - create a “whole product” that provides a solution to
the customer’s problems in its entirety. Early adopters might be happy stitching
together different pieces, but early majority users are less likely to want to do so.
Think about not just the product, but support, training… the entire “ecosystem”, as it
has come to be known.
• “Define the battle” by creating positioning to show that you are the leader in the
segment you are attacking.
• “Launch the invasion” with a direct sales force, which is the best channel for high
tech, and the best for crossing the chasm.
Moore, who defined the Technology Adoption Life Cycle Landscape , in his books “Crossing
the Chasm” and “Inside the Tornado “attitudes toward the adoption of new technology
become significant, any time users are introduced to high tech products that require them to
change behavior or modify other products and services they rely upon. Products causing this
pattern are referred to as discontinuous innovations. A high definition monitor, with format
incompatible with current equipment, is an example of discontinuous innovation. A
continuous innovation, on the other hand, refers to the normal upgrading of products (i.e. a
regular monitor with a sharper image) that do not require any changes. A basic marketing
model was created
based on discontinuous innovations, relating to psychographic buying that do not require any
changes. A basic marketing model was created based on discontinuous innovations, relating
to psychographic buying habits, forming a bell curve with divisions roughly equivalent to
where
standard deviations would fall. The divisions included:
• innovators - had larger farms, were more educated, more prosperous and more risk-
oriented
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• early adopters - younger, more educated, tended to be community leaders
• early majority - more conservative but open to new ideas, active in community and
influence to neighbors
• late majority - older, less educated, fairly conservative and less socially active
• laggards - very conservative, smalls farms and capital, oldest and least educated
The above model depicts marketing success by winning one segment after another, with each
captured segment acting as a reference base for the segment following. Moore’s model shows
gaps between all of the segments, with the largest and most difficult gap to overcome being
‘The Chasm’ between the early adopters and the pragmatists.
The fundamental proble m lies in the transition from the early adopters to the pragmatists.
Careful analysis of the psychological profile of these two groups shows that they do not have
much in common. The early adopters like making decisions by themselves that do not depict
the norm. The pragmatists, on the other hand, want to communicate with others and put
together a good decision. The key to crossing the chasm was derived by studying the
fundamental
differences between the last early adopter and the first pragmatist. While the early adopter
would purchase a product that could deliver an 80% solution (seeing it as only 20% more to
go), the pragmatist takes the position of buying when it is 100% complete (a ‘whole product’
as
Moore puts it) and can be referenced as working within their industry. There are many
pragmatists out there–all in different industries.
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Moore’s solution for making the transition is to focus on a ‘beachhead’ and deliver a total
solution to one of those niche markets as quickly as possible. Identification of target
customers and their compelling reason to buy are keys to fulfilling the’ whole product’
concept, which will allow you to win over the pragmatists in a particular market segment.
Crossing The Chasm contains insights of value to anyone who has worked on a technological
labor of love and wants to see it flourish and become a ubiquitous part of our world like
certain Microsoft operating systems seem to have. Moore has a marketplace model that
identifies four major groups:
Early adopters populated by visionaries who will take a new technology, gather other parts
from elsewhere and assemble a whole product that will give them a revolutionary new
solution. This marketplace segment is the one most familiar to engineers. These are the folks
we love to work with. We code and debug. They take and use. But this segment is very small
compared to the mainstream.
Early majority is a big, and crucial marketplace segment. These folks are pragmatists, with
the need to solve particular problems. They will only adopt products that they see have been
successful for others they know. For these guys its more important that they know the product
does one thing well for someone else just like them, than that the product be able to do a lot
of things.
Late majority is a segment as big as the early majority. These folks have the same
perspective and needs as the early majority. The difference is that these folks are less
comfortable with new technology. They're only going to buy after the early majority has
really shaken out all the surprises, and shown that this product is here to stay.
Laggards are a segment about the same size as the early adopter segment. These folks will
only adopt a technology when failure to do so gets in the way of doing what they've always
done. These days, very few technologies get so well established and become so important that
the laggards ever take them. I'd say the telephone was a recent example of something that the
laggards finally adopted.
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Moore's book is about getting a product across the chasm between the early adopters and the
early majority. It’s called a chasm because the needs and perspectives of the two segments
are so different.
To summarize Moore's methodology:
Pick a target market in the early majority that is small enough that you can quickly become
the dominant player in that market segment. The target should be of strategic value. I.E. you
should be able to invade other nearby segments having established yourself in the first target
market. It is vital that you choose a single market to focus on, and that it be a market you can
take like a strategic objective in a war. Moore's model is the D-day invasion of Normandy:
One strategic beachhead taken, and established as a starting point for other focused
initiatives.
Moore defines a whole product. We engineers often hope the customer take the part we built
and fill in the rest, like learning how to use it, fitting it in with other tools, and getting others
to provide the content that feeds the system. You get the sale in the early majority if you can
present a whole solution to an important problem. All the pieces have to be in place, though.
For example, If you're going to sell an electronic book, you also have to show the customer
where to get the content. Otherwise you get no sale.
Moore provides a way to craft the message for the customers into two sentences:
For the <target customer>
who is dissatisfied with <current alternative in the market>,
Our product is a <new product category>
that provides a <capability to solve target customer's important problem>.
Unlike <the product alternative>
we have assembled <key features that demonstrate you have the whole product, not just a
piece of a puzzle>.
An example he gives is Quicken:
For the bill paying member of the family who uses a home PC, who is tired of filling out the
same old checks month after month, Quicken is a PC home finance program that
automatically tracks all your check writing. Unlike Managing Your Money, a financial
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analysis package, our system is optimized specifically for home bill paying. Moore points
out that breaking into the mainstream requires relationship building as the key activity. For
this reason he recommends direct sales into that first target market. He also provides
principles to guide the transition from the penetration of that initial target to the ordinary
sales channels that will be used when the rest of the early majority begins to notice the
product and begin to consider buying it.
A particularly useful distinction he makes is easy to sell versus easy to buy: He advocates a
focus on the latter. Instead of developing a really easy to present sales pitch, make shopping
for your product fun for the potential customer. People like to shop, but hate to confront a
sales pitch.
By the time I finished reading this book, I had understanding of why certain of my pet
projects did not catch on, why really ugly designs made it while beautiful ones didn't. I feel
much more able to get my ideas into the world. If you read this book, you will too.
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Business Stripped Bare: Adventures of a Global Entrepreneur
BY: RICHARD BRANSON.
ALI ZAFAR KHAN
01-11082-007
BBA 6A
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BUSINESS STRIPPED BAR E: ADVENTURES OF A GLOBAL ENTREPRENEUR
Business Stripped Bare, a book by Richard Branson, is about Business in particular reference
to the Virgin Group of companies. The book is easy to read, enjoyable as well as informative.
Richard Branson points out in the introduction that it is not necessarily to consider all things
in terms of bottom-line, profit, trade, commerce, formality, winning, etc. What is more
important is the business itself. This makes the book appealing to every type of reader rather
than just business people. The book starts by creating a unique analogy, comparing a business
to a painting: starting; making initial decisions; how those decisions must relate to one
another; becoming committed and invested in the endeavor; swallowing your fear; focusing
on and working out the details; determining if it is good or bad; deciding whether to keep it or
sell it; and finally learning so that the next one is even better. The rest of the book is broken
into seven categories that are people, brand, delivery, learning from mistakes, innovation,
entrepreneurs and leadership a nd social responsibility.
The book details that finding great people is much more about looking for attitude,
enthusiasm and talent than it is about looking for skills. Jobs can always be learned. He
prefers the “Small is Beautiful” organizational size though he can’t always achieve it,
especially in the airline industry. According to Branson, smaller businesses foster greater
innovation and idea generation, faster communication and a friendlier working environment.
After many great stories and adventures in various chapters, Richard Branson talks about
organizational structures, corporate governance and how the bonding power of the Virgin
Brand ties all their diverse businesses together within a venture capital (VC) model. Delivery:
Special Delivery. “We thrive on ideas but our day-to-day business is about delivery”, “It’s the
attention to detail that really defines great business delivery”, “Delivery is not just hard work.
It’s endless” and “Protect the Downside” are some of the timeless quotes from Richar d
Branson. While much of the focus of the book is on how Virgin has handled challenges and
endless change in their businesses, Richard intermixes it with simple, practical advice such as
keeping a notebook, jotting down everything that needs doing, ideas and the occasional
philosophical musings. Part of protecting the downside involves having numerous smaller
companies. This also, according to Branson, increases their creativity and ease of action and
decreases bureaucracy.
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In the book, Branson candidly admits how he has made mistakes in the past and shares some
of the lessons he has learned so we, as readers, might avoid similar errors or misjudgments.
“Never do anything that means you can’t sleep at night”, “It’s always worth getting the
contract right in the first place” and the seemingly contradictory but effective: “Protect your
reputation, Don’t be afraid to make mistakes”.
Richard talks about companies that he finds innovative. Encouraging employees to generate
and develop new ideas, making changes and continual improvements, being responsive and
flexible are techniques and strategies he discusses. Asking some of the most elementary
questions has led Virgin to effective innovation and increased customer satisfaction. Later on
in the book the author talks about the bigger picture and the power of research and
development. This is also where Space enters the book in a major way. He goes on to
describe other pioneering areas of interest to Virgin, particularly green fuels. The importance
of innovation and R&D rarely gets attention in most business books.
The book also describes Virgin’s contribution in the territory where business and making the
world a bit of a better place, meet. Starting with the Student Advisory Centre, Richard also
outlines the company’s endeavors into research into AIDS/HIV in Africa, climate change and
creating small war rooms to tackle big issues. Without retelling the excellent, informative and
entertaining stories, indeed the adventures of Richard Branson and of Virgin would not have
been such a delightful reading. His great sense of humor, curiosity and ability to poke fun at
him shine through. This book is well worth reading if you are interested in Space, creativity,
innovation, environmental and social responsibility and especially if you are interested in
Business.
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Fundamentals of Entrepreneurship
BY: HITESH S VIRAMGAMI
ANUM RIAZ KHAN
111-082-010
BBA 6A
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Page 29
Entrepreneurship has played a premium mobile role in development. Presently entrepreneur
is at the crest of popularity. The whole world is undergoing an entrepreneurship renaissance.
Increasing number of educated youth is getting attracted towards entrepreneurship and is
setting up their business ventures. With the liberalization , privatization and globalization of
our economy , the manager’s role is shifting from efficient utilization of resources to being
innovative and opportunity seeker, which are basic qualities of successful; entrepreneur. The
youth management students are attracted towards entrepreneurship as I offer vibrant vision of
means of fulfills their highest potentials. More so, it is the entrepreneur who has largely
recognized globally as the key to rapid and sustainable economic development as well as the
welfare and progress of mankind. Entrepreneur does the things that are not generally done in
the ordinary course of business. That is why many universities have introduced
entrepreneurship development as a compulsory subject in their syllabus. Basically
entrepreneur is a person having specific skills, ability, knowledge, awareness and self-
confidence who bears the risk of operating a business in the face of uncertainty about the
future conditions. Characteristics of an entrepreneur are establishment of a business unit by
accepting the responsibility of risk. A good entrepreneur has ability to inspire specific
personality, as has ability to motivate others to work. An entrepreneur is neither technician
nor manager. Entrepreneur is a person or a group of persons. The risk of uncertainty is higher
and he is the one who bears risk in which there is not any certainty of profit. Due to the
coordination on economic agent (entrepreneur) the society ge ts valuable goods and services.
He is innovative person who is recognized as a prime source of innovation, by innovation he
searches new products, services, production methods markets and helps rapid economic
growth. Most successful entrepreneurs tend to change if the situation so demands. They
create new opportunities and play an important role in the development of society and nation.
They are very flexible and are easily adjustable to any type of environment suitable to his
business. They have decision making ability or selecting the best alternative .An entrepreneur
has to get the things done through and by his employees so he must provide sound leadership
to his employees. Entrepreneurship is a human skill, which can be developed. Due to
entrepreneurship development, living standards of society can tend to rise, new opportunities
of employment can be created and rapid economic and industrial development becomes
possible. The factors effecting entrepreneurship or motivating entrepreneurs are individual,
industrial environment, social environment, economic environment, technological
environment, political environment, incentives, profit making. The entrepreneurs are
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classified according to the types of business, use of professional skills, motivation ,growth
stages of development , use of technology, regional area etc. types of entrepreneurs are:
innovative entrepreneur, imitative entrepreneur, educated and uneducated entrepreneurs, rich
and poor, urban and rural, man and woman entrepreneurs. An entrepreneur should understand
the impact of these factors (nature of organization, scale of operation, capital requirement,
ownership rights, controlling and decision making rights) and decide the most suitable
business unit. Types of business units are: sole proprie torship, partnership, co-operative
society and Joint Stock Company. Entrepreneur is a person who always searches for change,
responds to it and exploits it as an opportunity. Opportunity is a specific event, from which
some individuals can gain specific advantages as compared to other. it arises occasionally and
for limited period, important features of business opportunity are , occasionally arise, related
with innovation, difficult to identify, comes up due to environment changes, specific benefits,
specific skills are required to identify opportunity, related with risk, favorable condition,
related with entrepreneurship. Important factors affecting business environment are economic
environment, social and cultural environment, political, legal, demographic, constitutional,
regulatory, technological, marketing, ethical and international environment. Innovation is
another important factor as it plays dominant role in creation of new product; innovative
behavior is very important entrepreneurial function. Characteristics of innovation are; it is a
process, it’s a continuous process, it has universal application, it gives economic and social
gains, creative wealth, important function of an entrepreneur, it has different forms, requires
specific qualities. Entrepreneur can play dominant role for generating employment
opportunities, an entrepreneur can create basically three types of employment opportunities,
self employment, generation of employment opportunities in own unit, ancillary employment
opportunities. The role of entrepreneur as complementing and supplementing factor of
economic growth will be cleared by these factors. Supplier of raw materials, production of
finished product, marketing activity, environment of entrepreneurship, earning of foreign
exchange as human life has many ups and downs, a business unit has also many ups and
downs during its life span. As human beings, since his birth to death, faces many crises and
also tries to overcome such crises. In the same way, many business units’ faces a number of
business crises from beginning to windup and owners are trying to beat such crises. Starting
crisis in business emerges due to, lack of managerial experience, mistake in selection of
business, lack of complete study of market feasibility, lower estimation of required capital for
the project, lack of knowledge of tax liability, wrong selection of technology, material and
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project, careless in accounting, lack of knowledge about various legal requirements. Cash is
lifeblood of business, it keeps business live due to cash entrepreneur can make routine
payments without delay, due to lack of cash, cash crises arises and reasons for emerging cash
crises are, credit sales and cash purchasing, much more investment in fixed assets, not getting
adequate finance from bank, expansion of business without planning, continuous fluctuation
in interest rate, more importance to sales and profit. Management succession crises are very
difficult to overcome reason for emerging these crises are, problem of taxation and legal
matters, problem of transfer of control, problem of ownership and partnership rights, problem
of succession right among more than one successor, sadden death of owner and not any
successor. How to beat management succession crisis; plan management succession right,
pre-selection of management successor, development general management skill in one
successor and specific management skill in another successor, selection of successor team,
instead of selecting only one successor, welcome efficient personnel in board of directors,
develop expert businessmen team having homogeneous thinking, selection of successor after
proper discussion with banker, financial institution, legal expert , make regular note in brief
about assets, responsibility etc, develop managerial skills in the successor.
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Entrepreneurial Management
BY: DR.S M NAQI
ANUM TASADDUQ
01-211082-016
BBA 6A
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Page 33
The small scale organizations have proved to make profitable gains and their importance to
Entrepreneurship has lead to the growth of the economy. Small-scale enterprises has created a
lot of jobs around and manifested to increase the economy .Through innovation and there has
been an economic growth by these enterprises. The need for managerial concepts and
techniques through training and counseling ended up in success. A guideline from the field
experience in the design and delivery of entrepreneurship developmental programs
monograph was written. Monograph had the themes, topics and issues of successful field
experience in the design and delivery of effective programs. Business creation involves
entrepreneur and the project. While some programmers concentrate on one aspect or the other
or maybe a mixture of both. The most acknowledged aspect of small scale enterprises is to
create employment, less burden on the government and more focus on self -reliance for e.g.
Japan and Korea.
The programme design consists of why is it being attempted, to whom is it directed and
resources available. Although there may be opportunities but resources are not available to
that extent. There is a need to ensure that the government does not discriminate against the
small firms i.e. licensing procedures, import controls taxations and other regulatory
mechanisms. The people making the programme design should be aware of the social,
political and economic factors. Taking a look at the economic factors he/she should consider
these points in mind:
Nature of the market: if it is a large scale or a small scale market. Small scale enterprises deal
with small local markets and vice versa.
Market analysis is an important part in trainees training in developing their projects. The
trainees which already have motivational and technical skills are selected. Training
entrepreneurs for business cr eation for business creation has multiple objectives:
Creating large supply of entrepreneurs, Industrial development of rural areas, Employment is
generated, Improving the performance level of small industries by selecting trained
entrepreneurs.
The economic factors affect the social and political goals as well due to the reason that the
economic activity generates employment and the income generating project earns a high rate
of return which raises the self-esteem of people. They are as legitimate social and political
factors as economic objectives.
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Programmes are measured on such grounds that start and remain in business but if the
program is directed at people with specific characteristics harpers research shows that success
rate can be affected by prior experience i.e. higher experience high success rate, young
people were highly to succeed more than older people. The success rate depends on the
factors whether they are social political or economic.
Small scale firms get their supply of resource either through personal savings, retained
earnings and getting loan. This is a precise way to start a business for small firm companies.
The site of the business without premises adds to difficulties in a way that no credibility with
customers, no security of the firms assets etc.
Training and development organizations have formal and informal training. In the United
States introduces an awareness of the operation of the economic system and the role of
businesses, small and big, in providing goods and services. In the North America and
elsewhere, many colleges and universities now have entrepreneurship courses, and some even
have degree programs in their curriculum.
Evaluation: appropriate methodology, and what should be measured. In harpers survey he
contacted over 100 programs and received 52 replies out of which 33 should successful
trainees.
Most training programs for entrepreneurs combine some form of classroom activity with field
experience. Here the managerial refers to management training, as distinct fr om the process
of business creation which consists of feasibility analysis, business planning and project
implementation. In the monograph we shall examine the following programmed
components:
(a)Identification, recruitment and selection of trainees
(b)Opportunity guidance
(c)Business motivation and behavior training
(d)Technical training
(e)Management training
(f)Entrepreneurship training
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Madhya Pradesh consultancy organization ltd, India conducts entrepreneurship development
programs for four categories of entrepreneurs those are technical graduates, unemployed
graduates, scheduled castes, tribes and other categories of workers, women entrepreneurs.
The program consists of 5 stages:
1. Identification of industrial opportunities in the target area
2. Advertising and promoting the program to attract applicants
3. Selection of the participants
4. Training in the identified project
5. Follow-up with the industrial development and financial institutions
Recruitment, identification and selection of trainees: publishing in newspapers etc
advertising for finding the following characteristics of trainees required.
Hawaii entrepreneurship training and development institute was a non-profit making
corporation established in 1977. They provided training to the individuals by the following
steps of recruitment and selection, entrepreneurship training workshop, implementation and
evaluation of results.
Executive summary:
Small scale firms are definitely an important part of our economy as they play an integral part
in raising the revenue of our country by creating employment, increasing exports etc.
Economic, social and political factors need to be put in consideration before opening a small
scale firm. Entrepreneurs need to be trained before starting up such businesses and there are
firms that provide training programs to individuals through which they learn and then start up
their own business.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
DIRECT FROM DELL
BY: MICHEAL DELL
ANWA SUHAIL01-11082-011
BBA 6A
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The book”DIRECT FROM DELL” describes Dell's history, but most importantly, it explains
why they were able to offer such low prices - and it wasn't because they used crummy parts.
This book has also put light on tactics for increasing customer data base (direct business
model) and also how dell revolutionized PC industry.
The book has many issues. This work is full of the most amazing collection of clichés,
platitudes, sweeping generalizations and jargon that I have ever run across. There are some
tasty nuggets, but you will have plenty of opportunities to practice your skimming skills.
And there were parts that become just too painful to read.
Starting with Michael Dell's story which begins in his childhood in Texas where from a
very youthful age he was interested in making things work faster and in making money.
While in his teens he became fascinated with computers and began buying them and taking
them apart to see how they worked. He discovered that he could buy computer components
for 1/4 the cost of what an assembled computer was selling for, assemble it quickly himself,
and sell it for a large profit.
He also discovered what many of us have discovered over the years the hard way: If you go
into a store and buy a computer and then have a problem with it, many of the people who sell
those computers don't have a clue as to how to fix it quickly and easily. That, too, was very
interesting to DELL. .
But Dell did not create his company overnight. While he did assemble and sell "home-
grown" computers as a teenager, his family wanted him to become a doctor, so he went to the
University of Texas at Austin. He enrolled and attended classes, but the majority of his time
was spent in the ever-engrossing enterprise of building and selling computers to more and
more people. His room at school was the "assembly laboratory" where he lived and put
computers together while at the University. His parents were very concerned about all the
time he was "wasting" on this "computer stuff," and once when he got wind that they were
making a surprise visit, he had to hurriedly hide all the computer components scattered across
his room in his roommate's bathtub with the shower curtain drawn to hide the "goods."
Eventually, to his parents' horror, Dell left school, rented a building, hired some employees,
and started a business of assembling and selling computers. Ever the smart salesman, Dell
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sold excellent computers to people at a cost far below that of the companies such as IBM and
the word spread about the product even as Dell bid on corporate and governmental contracts
in the Austin area. Orders multiplied and Dell and his people innovated on-the-fly like surfers
jumping waves on the North Shore of Oahu. Incidentally, at some point in this exploding
business story Dell's parents saw the lottery-payment-like cash flow and they forgave him for
his youthful "diversion." Not long after, he says, he forgave them too. Ah, how a positive
cash flow in your life can bring joy to your parents' hearts!
Michael Dell then began dreaming big about what his company might do. Like most
successful entrepreneurs he saw things where other businesspersons were apparently blind.
Perhaps the greatest of these insights was that people don't need to go to a computer store, or
ANY kind of brick-and-mortar store to get a computer any more. If you made an
advertisement about your reliable and less expensive computer available to people, they
could call you on the telephone and you could send it to them DIRECT. First his company
used the telephone and next the company added the internet, using an interactive web site.
These two tools, the telephone and the internet, continue to be the mainstays of Dell's "direct
marketing" approach.
The whole thing hangs on TRUST, of course. Most people want to see and feel and try out a
product at a retail outlet before they buy it. What Dell was saying to such a customer was, in
essence, "Look. You know this is a great computer. Millions of people are using it. PC
Magazine and others are giving it high marks. You know if you have a problem you can
either get on the telephone and we will fix the problem, or you can send it back to us and we
will fix it quick, or we can even send someone to your home or office to fix it. TRUST ME.
Buy our computer." So credibility drives the direct marketing approach, and Dell earned a
high place on the credibility scale, with bandwagon results. This is both the key to the
company's success, and as he notes, it is also the soft spot of vulnerability for any potential
corporate decline. If Dell gets overloaded with complexity, or loses its sharp edge, the
credibility will decline, and the "direct advantage" will in time drop off.
The first part of Michael Dell's book deals with how the company was built from the
ground up, and eventually Dell discusses numerous innovative ideas that have
strengthened the company. Two of them intrigued me.
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One was the way the company takes great pains to place blocks of stock into the
compensation of each employee. If you want to work for Dell, you are strongly encouraged to
take and hold stock in the DELL Company. The incentive is obvious: over the long haul,
many people have become as rich as if they had in fact won the lottery. But the net effect on
employee relations in terms of company loyalty and internal company harmony may be
summed up in one phrase: "Every effective employee becomes a believer in the company." If,
as one man put it, "Your attitude determines your altitude," Dell makes sure that his people
have a good attitude and therefore that helps the whole company's altitude in the
sometimes unfriendly skies of the competitive computer industry.
Another interesting thing about Dell is how it deals with its parts suppliers . Dell seeks to
change the whole relationship to suppliers of parts and components from "outside suppliers"
to "inside members of the Dell family." For example, Dell computers use Zip Drives. So Dell
has gone to pains to bring Iomega, the company that manufactures Zip Drives, right into the
internal corporate planning and development areas of Dell just as if they were fellow
employees, and has worked to bring about an inventory relationship which is as seamless as
possible. It is an attempt to move from a "them and us" status to an "all of us together" status,
and it has worked consistently well.
Dell built their business in what was, at the time, a little used approach for the PC industry.
Customers bought their machines directly from Dell. They called an 800 number, discussed
their order with a rep, and then Dell built the machine to the customer's specifications and
shipped it. They have maintained that model, with one brief foray into selling through the big
chain stores, and have become one of the top companies in the PC and server business. Dell
attributes that direct model to their success...on almost every page . The direct model is
based on direct selling – not using a reseller or the retail channel. Because we built only what
our customers wanted when they wanted it, we didn’t have a lot of inventory taking up space
and soaking up capital
This approach DID set them apart and give them some significant advantages. They were
able to interact directly with their customers, learning their needs, being in real-time contact
with the market place, and being able to quickly adapt to changes in demand. Because they
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built to order and had that real-time information, they could keep incredibly low inventory
levels (that was the real key to their lower prices...low inventory). Since PC technology
changes so rapidly, keeping low inventory was critical.
Unfortunately, the authors seem to be of the opinion that Dell invented this approach. In fact,
in one passage, he implies that he revolutionized the computer industry and pretty much came
up with direct selling. Never mind that IBM and the other computer companies had been
doing this since way before Dell was born.
Another organizational tactic that they used, which also isn't new, but is interesting, is
segmentation. They organized their company by the markets they served, not by products.
And as markets got bigger, they re-segmented and more narrowly focused. This makes a lot
of sense, since it allows you to have a big company that keeps maintaining a tight focus on
the most important thing - the customer. And it allows them to maintain high rates of growth,
since the smaller actual business units can grow more quickly than a larger organization.
As one would expect from someone at the heart of the computer industry, Dell is a tireless
and fanatical believer that the Internet is absolutely necessary to every business's survival. If
you don't provide access from every one of your users' desktops, you'll be gone. I disagree.
But I wouldn't expect any other statement from him anyway. And he does make a decent
argument for some of the benefits of the Internet (and intranet).
By using the Internet to maintain a continuous flow of materials from our suppliers into our
factories, our people spend less time placing orders or expediting parts and more time adding
value. The other thing the Internet gives us is immediate transmission of product quality data.
Because of the direct model, and the development of technology, like the Internet, that
allowed an electronic link between the customer, Dell and Dell's vendors, they've been able
to tightly integrated their entire supply chain and get inventory costs even lower.
Concluding review by saying that I found this book to be very good on several levels. It was
fun and interesting learning about the man Michael Dell and who he is and how he thinks. It
was very informative to catch his take on the history of the PC revolution in our world in the
last few years. And it was fascinating to see how Dell's company has grown to its current
level, and where he thinks he may go. The very core thing that drives the business is the fact
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that everything revolves around the customer, listening to customer feedback, acting on it
promptly, adding value to the customer, etc
If you are interested in computers and where you may fit in out the future of computers here
in these "early years", you'll be rewarded by this book. Someday, out in the future, it may be
an important part of the overall history of the computer revolution.
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THE Woman Entrepreneur
BY: LINDA PENSON AND JERRY
AREEBA ALTAF
01-11082-012
BBA 6A
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The woman entrepreneur is mostly devoted to the profiles of those 33 women whose success
stories are both interesting and inspirational. The book includes self written piece from all the
33 women, who are telling their success story themselves. Before writing the book, the author
had decided that the book will comprise of 3 things; profiles of successful women, history
and statistics and the third part on resources for women who might like to start their own
business.
With regard to the statistical part, it includes all the necessary charts and graphs.
With respect to the resource section, there is a list of library references, government offices
trade association, business organizations and books and publications.
Talking about the history, the book gives a brief overlook on the historical endeavors done by
women. Women have always faced personal difficulties, legal barriers, ridicule and dangers
to pursue own business. But in the 18th and 19th century, there were women, who successfully
could overcome these hurdles. Few examples are: Madame Veuve Cliquot, Sarah Buell,
Rebecca Webb and Victoria Woodhull. In 1940’s men were called into army for the Second
World War, women replaced them in workforce, giving rise to the women movement. Annual
growth rate became 9.4%.
In 1979, Charlotte Taylor, in her report, indicated the following barriers to women
entrepreneurs:
• Limited access to commercial credit
• Virtual exclusion of women-owned business from government procurement activities.
• Limited management and technical training to fast track women into the marketplace.
• Inadequate information and data on women-owned business.
Coming back to the profiles part of the 33 women, one problem seems to be common,
that it seemed to be that they were operating in a ‘boys club’, that looked upon women
entrepreneurs as small time operators that would never enter the real business world.
In it, they have included their personal lives; marriage, children and all, also their
professional lives; how they had coped up with very hurdle in their way. And how their
entrepreneurial goals were the most important thing before their eyes, for instanc e, one of the
women, Enita Nordeck, says that her goals were somewhat disturbing her husband and he
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himself had goals different from her, therefore she had no choice but to leave her husband to
pursue her goals.
Production methods and employees are the key cogs to any business, says one of the
entrepreneur, and the statement seems to be agreed upon by the stories of the rest.
The book reveals the sorrows and hardships behind all the fame and money. Grace
McGartland, owner of GM consultants, was diagnosed with cancer in 1984. But she did not
give up, and kept on struggling hard. And in 1991, saw the birth of her new company, the
Border Gang.
Stories tell how, committed and devoted entrepreneurs can be, starting from grass root and
taking it to heights of achievement and success. Helen Shih, cofounder and CEO of the
SHE’s flowers, started off with a flower stand and today, it’s a full service floral franchise in
California.
This book also removes certain myths about women entrepreneurs that they can only be in
hosiery, food or sewing industries. Stephanie Slavin is a good example of how women can
take pert in more complex businesses. Stephanie is the president of Aviation Business
Consultant. She says; “the male dominated aviation world has been an outstanding training
ground, teaching focus, self control, and how to adroitly deal with chauvinism.
Also, how, truly devoted entrepreneurs try to get over hurdles like discrimination too. She
realized that all the leading cosmetic brands in the market were serving the skin tones of the
white and totally, did not suit the black ladies; therefore she wanted to come up with a line
having all new shades that would go with the black skin tone. Vera Moore was a black lady,
who came up with a comprehensive line of skin care and cosmetic products for professional
and retail market. Today, women from all walks of life, including models, actresses and
housewives, go for Vera More cosmetics as their first priority.
Successful entrepreneurs are those who take interest in what they are doing, and make
profession out of their passion. For instance, Marty Maschino, she turned a hobby into
business. Her obsession of dolls led her to start her own doll business called Attic Babies.
She says, “I love every one of these attic babies. Their personalities resemble little impish
kids, all like extensions of my own children”.
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Another piece of advice from one of the female entrepreneurs, Joyce McLaughlin, owner of
interstate Tele marketing, is that no matter what business you are starting, there are certain
factors that you have to always keep in mind.
• Have a plan, do your homework, investigate your competitor.
• Have a different financial option.
• Set time frames and goals.
• Control expenses.
• A CPA, attorney and bankers are must.
• Don’t expect great things immediately, BE REALISTIC.
This book tells us, how consistent, strong and diverse minded an entrepreneur needs
to be. Mona Tollin, a certified business consultant, survived the death of a grown up
child and the loss of a business; yet she still believes in hard work and the ‘right
attitude’.
What is to be served in the business and who is to be served is important, but what most
important is the commitment in whatever one is doing.
Mona has had 4 business altogether in different time periods. Starting off with a beauty
supply store, to a custom design shop, then to a health food store and finally into
consultation.
Most of the entrepreneurs given in the book, when asked about what advise would they want
to give to the other prospective women entrepreneurs, they somewhat had similar replies;
prepare yourself to the best of your ability before coming into the business. Keep your
knowledge through education, association and support groups. Make your own decisions, do
not be afraid to recognize your mistakes, be tenacious and flexible. And most importantly,
keep a positive attitude.
One of the entrepreneurs seems to be so passionate about her work that she said,
“Other than the birth of my sons, being an entrepreneur has been the most exciting and
fulfilling experience of my life”.
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All the women have agreed upon the fact that they have used their ethnicity, femininity,
education and culture as their strengths.
Dawn Wells, owner of the wishing well collections, says something that, can lead to wonders
if practically applied in ones life.
Dawn says, “Plan like you are going to live forever and live like you are going to die
tomorrow”.
When we think of entrepreneurship, the first few things that immediately come into our
minds are capital, opportunity, attorneys, advisors and lots of things vital in business. But
after reading this book, it’s evident that there are few things, too plain to be talked about yet
very important in an entrepreneur’s life; a good nights sleep, a regular exercise program, and
leisure time.
When I read the book, I realized that every woman seems to have the same dilemma, that is,
men do not seems to take us seriously. And according to them, even the women themselves
seem to underestimate themselves if return on investment is low in the beginning.
Bettye Smith, says, “Every business has its peaks and valleys. This is a natural phenomena
and it is vital to prepare yourself for the tough times”.
Most of the entrepreneurs have diverse personalities but similar beliefs, they are motivated by
recognition, achievement and respect for ones job. It has cost them their health, physical and
mental rest and their married lives, yet their dream of accomplishment took them through.
Most of them think that the entrepreneurial experience is worth the risk involved in it. So
‘just do it’.
Concluding, if a woman has a skill or area of knowledge which meets the needs and
demands of our society today, she should take the risk of developing a small business at least.
In addition to the financial rewards possible, the opportunity for both professional and
personal growth is great. To be a successful business person, it takes talent, energy, desires
and overall idea of not settling for second best because if you do, you will be sure to get it.
Lastly, the book, in its third part gives information that can be of a help to the prospective
women entrepreneurs. It includes, organizations, associations and magazines names
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Flying Solo: How To Go It Alone In Business
By: Robert Gerrish and Sam Leader.
ARHAM TAUSIF
01-111082-013
BBA 6A
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So I’ve just finished reading Flying Solo: How to Go It Alone in Business. And it has been a
very interesting and exhilarating book to read. I had been searching for a book to review not
just for the sake of writing one. I admit it did take me some time before I finally found my
book of choice. Initially, I had not been very picky about the whole task and thought any
book will do. After a while, procrastination set in. I got too lazy. Can you blame me? It’s
summer after all, and the constant load-shedding doesn’t help either. One day however, I was
searching for books on a local bookstore’s online database and came across Flying Solo. The
name caught my attention and I read some good online reviews which convinced me that this
book is the one. I went in the next day and bought my copy and started reading as soon as I
got home.
Robert Gerrish and Sam Leader have a very interesting collaboration here. The style is pretty
straight forward and casual, it avoids business and entrepreneurial jargon and makes the
reader feel comfortable and at ease. The introduction provides a quick preview of what’s to
come up in the following chapters. Gerrish and Leader constantly emphasize on the word
‘solo’. After all, it is the universal theme of the book. What is ‘soloism’? How can an
understanding of the word help you spread your wings and take off on your journey?
This complete handbook to taking the plunge into self-employment presents the necessary
tools needed to plan and begin a solo venture. Combining inspirational advice and practical
strategies, the habits and behaviors of successful self-employees are discussed along with
time management, networking, and marketing strategies. For those stuck in a professional rut,
the suggestions provided can make going to work a more satisfying experience.
Working for yourself is fast becoming the characteristic work style of the 21st century –
there’s never been a better time to turn your dreams of independence into reality. Flying Solo
is the complete guide to breaking out on your own and gives you the tools to start your own
solo venture, or totally overhaul and rejuvenate one that’s been ticking along for years. The
introduction to the book provides an understanding of different ‘solo’ professions, such as
consultancy, accountancy, lawyers, life coaches and the likes of them.
The book is divided into three sections: Thinking Solo, Acting Solo and finally, Staying Solo.
The first section is concerned with how to adopt an attitude that allows you to pursue an
independent business or venture, the mentality of a soloist and the power of vision. Why do
people start thinking about a solo business? What motivates them to do so and what are the
benefits of it? All these questions are answered in the first section.
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The authors emphasize on the liberal aspect of sole proprietorships and the feeling of freedom
and independence. A person who chooses to go it alone in business can design his/her dream
job and acquire satisfaction from their work. The most important thing is to enjoy your work
and not feel bound by it. Don’t work for your job, have it work for you. It’s amazing how
quickly this book immersed me. What’s great about it is that you actually understand what
the authors are talking about and they’ve also included little exercises and pointers to help
people start their solo journey. It’s simple really. For example, in one chapter where the
authors focus on the power of a vision, they have come up with a small exercise where a
person answers a few questions regarding where they see themselves in a few year’s time and
what they actually want to achieve with their solo venture. The authors then instruct to keep
on reviewing this list as time passes and add or subtract from it once as you see fit.
In the second section of the book, we move away from theory and put everything in practice.
We are introduced to three chapters which provide insight to how to start turning your solo
dream into a reality. The first part discusses how to develop a game plan and manage
finances and the likes in order to start a solo journey. I read about quite a few solo
entrepreneurial accounts of actual people who have shared their stories. It was interesting to
read these because they were everyday people who had dreamt of an independent business
and had been able to do conceptualize it. The most interesting chapter in this section was
‘Spreading the Word’. It focused on how to generate awareness about your solo venture and
the importance of word of mouth and referrals. I particularly enjoyed the bit about how a
particular soloist had met a few people at a business convention and turned them into ‘Raving
Fans’ from ‘Total Strangers’. I’m sure you’re confused about these concepts so I’ll elaborate;
anyone who wishes to see you and your business prosper is a raving fan. They refer your
business to other people and generate a fairly considerable amount of awareness about your
business. Strangers are people who you don’t know and who you’ve never met. This chapter
also taught me a really interesting concept about how o introduce yourself and your business
in a manner which interests the person who is listening and draws certain responses from
them. For example, a friend of one of the authors was in the coffee machinery business and
every time someone would ask him about his business, he would reply; ‘I make widgets that
make coffee owners’ coffee machines percolate at twice the speed’. This is a much more
interesting statement than ‘I make coffee machine widgets’. The former statement would
probably elicit a response such as ‘Really? Tell me more!’ Finally, the authors teach us about
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the eight essentials of a solo venture and include more exercises and activities to plan and
organize your game plan and strategy.
Finally, we arrive at the end of the book which teaches us how to maintain a solo venture and
business. Small basics and pointers here and there, which I’m sure, can really help a person in
their practical life.
I learnt a great deal from reading Flying Solo. Honestly, I’m glad that I chose this book fro
my review because I’m quite sure it will be very helpful in the future. I have recommended it
to a few friends and cousins who are currently stuck in jobs that they find unsatisfying and
thankless, and hope that they find all the answers they’re looking for in the book. I have
seriously started thinking about ‘Going Solo’ one day myself. I’d like to conclude this review
with one of my favorite quotes:
“You have to learn the rules of the game. And then you have to play better than anyone else.”
– Albert Einstein
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Blue Print For Greater Success
By: David GOH
AROOJ ABID
01-211082-018
BBA 6A
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Blueprint for Greater Success is an inspirational writing of David Goh aiming to develop the
basic virtues and values of human lives as a foundation for their future success. This book
explains why people fail in life and also provides a blueprint for those who have potential and
urge to achieve happiness , financial success and peace of mind. The author highlights that
rough path is an old way of industry; all great men have been through it to achieve happiness
and success. It clarifies the reasons for misery, frustration and tension among people who
strive so hard to achieve their lives’ ambitions and illuminates how to accomplish your
dreams in pursuit for excellence.
The book is full of stimulating examples from practical life of author and many other
successful personalities, which makes it such an interesting read. The quotes in almost every
chapter also break the monotony and keep all sorts of readers engaged. The way author has
played with simple words and shaped new concepts, the book becomes a great learning
experience. The book polishes your skills showing how you already knew but never realized
your actual potential and its worth in your life’s ambitions. The author has very uniquely
encouraged his readers by proving how much power they have: he defines purpose as the
power of seeking the end desire, describes the power of choice that every human being
posses; t is exercised in every simple decision we make each day in our life. All decisions
always have consequences which one must be prepared to accept because that’s when you
take charge of life and that’s what leads you to success. When your homes and schools have
done all they can for you, and you begin the work of life, you must take the hold with a will
and be content to work hard on long lines. It shows that there is temporary defeat and the
final defeat. The temporary defeat when you don’t give up and keep striving harder and better
for your goal make your final success greater.
Blueprint for greater success is written in a layman’s language, focusing on individuals start
up attitudes, and not on organizational trends to achieve success. It is basically about the
personality traits and characteristics needed for successful entrepreneurship and emphasizes
on desire and determination for success that resides within the individual. The author shows
that running a successful organization and leading a meaningful life are to some extent
similar. He has elaborated on every step to achieve success by references to his own personal
life experiences, nevertheless it is important to realize that not every person goes through the
same scenarios. The book also fails to comprehend other functional factors necessary to
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fulfill ones dreams like financial assistance, acquiring management support and team
approval.
The idea of book is based on ten inter-linked pillars that are, as stated by the author, universal
and timeless and significant for success to have stronger foundations. The book keeps
warning against negativity as it results in slowing down your progress. It highlights the
importance of truly believing in your Creator, yourself and finally in your aims; emphasizing
on goodness of positivity six of the pillars being faith, courage, indomitable determination,
perseverance, positive thinking, positive self image. It strictly teaches to believe in your year
when it hasn’t been your day, week or month. Other pillars with subheadings of realizing
your purpose, self suggestion, self discipline, and overcoming adversity are also self
explanatory, touching upon the same point of optimism and confidence. The book is written
based on the fact that everyone wants either money security power fame success or happiness
the most in life. Everyone has ability, not discovering it is living in ignorance limiting your
self to your dwarfed reality and capacity. The book ela borates on how an individual can build
discover and utilize the entrepreneurial qualities and what limits them. Even in adversity,
there is an equal source of strength and opportunity.
The author has aimed to get the word “impossible” out of his reader’s dictionary. It attempts
to eliminate the fear of the unknown. He believes that human beings are like magnifying
glass; if one brings all the concentration and energy to one focal point, great changes can be
achieved while if the focus keeps deviating nothing can be done. In this read one comes
across interesting concepts like that of self depreciation when nothing is achieved in life and
an individual starts suffering from lack of courage and confidence. It teaches how rejection
and dejection of people can lower your morale and how important it is to not let it get in the
pursuit of your goals. The fire for your desire determines the level of miracle that can happen.
The book also give ten bricks of life that help you develop the pillars more effectively. Love,
honor, enthusiasm assist you by gathering support for your idea. You have to be vocal and
with your vigor charisma and believe one can be sure of making others believe in you too. if
the focus, observation is right and your thinking is accurate there is no reason for you to not
achieve what you desire; even if your path takes time to take you their, never giving up in
your believe is the technique. It is extremely important to be conscious and careful enough.
The book analyzes the constraints to ones cautiousness as well. It explains that your driving
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force strongly effects your determination. The crisis you face in life ignite the fire in you to
get rid of them. The book completely scrutinizes the ultimate secrets of success.
David Goh is one of the most successful motivational speakers in the circuit. He has written
around ten books on the same entrepreneurship related topics which shows the importance of
success and achievement in his life and how he wants to ignite the fire within the people who
have potential to get out of their miseries; He is a strong writer with the skills and
experiences to share that motivate people to achieve their dreams. This book is written with
biographical stories shared from his own life which not only make the book enterta ining but
one also learns about the author with literature. Other than serving with his writings he also
conducts seminars and workshops whenever he can. He has worked for thirty years as a
trainer and done extensive research to be able to produce such inspirational pieces of writing.
As he said on the cover page “in every negative situation in life, there is always a positive
opening somewhere. U just need to press in and hold on to your ultimate dream in life, never
to give-up or give-in. if your blueprint is must worthy for success, then success be pursued, at
the end, you will know, how sweet the taste of success is.”
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Entrepreneurship: Concepts Theory and Perspectives
By: Alvaro , DOMINGO & SALVADOR
ARSALAN AKBAR
01-211082-019
BBA 6A
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The book entrepreneurship concepts theory and perspective is a combined effort of Alvaro,
Domingo and Salvador who have edited different author’s concept about the subject title of
the book and analyzing them to systematize entrepreneurship for future development and
study. Their effort has resulted in covering the subject in three parts first concepts, second
theory and third perspective. The book provides in depth and systematic theoretical,
conceptual and perspective knowledge compiled from existing material.
The first part, concepts, describes and classifies theories that have been used to give
structure to and formalize the field of study for such a classification the author create a matrix
based on four theoretical approaches: economic, psychological, institutional and managerial
and three levels of analyses within entrepreneurship micro, meso and macro. He then
discussed the contribution of entrepreneurs to small businesses and to the economy as a
whole, how the entrepreneurs are different from the managers and capitalists and how
entrepreneurial firms differ from new or small firms. The author addresses the problems of
differences that exist in the terminology used to describe entrepreneurship with the ides of
reducing the confusion that surrounds the field and reconciling differences between existing
definitions. The author defined entrepreneurship that covers the occurrence of organizational
creation or innovation that occurs inside or outside the existing organization and
entrepreneurs as individuals or group of individuals that act independently or as a part of a
corporate system that create new organization or innovation within an existing one. Later
high levels of risks taken by the firms were analyzed.
The second part, theory, deals with three important paradigms in the evolution of
entrepreneurship and contributes to theoretical viewpoints that, despite having a more limited
scope, have the advantage of strong links with other disciplines or bodies of knowledge
The apparent conceptual conflict between entrepreneurship and corporate entrepreneurship
has been discussed along with the acceptance of the concept of entrepreneurship as a process
by which individuals look for opportunities without taking into account the resources they
have at their disposition at a given time.
The promise of entrepreneurship as a field of research reflects the discovery of opportunities
as real core of entrepreneurship which is recognized by some and not by others in making the
most of the opportunities to the form they take. The book also discusses concepts of
entrepreneurship based on intuitions that processes the perception of opportunities and
assesses their desirability and feasibility. Cognitive theory is currently the main link between
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entrepreneurship and the science of psychology. The resource based theory covers the
recognition of opportunities and opportunity seeking behavior.
The third part, perspectives, focuses on presenting suggestions for future investigations in
entrepreneurship with the aim of achieving consolidation as a scientific field. This section
also includes an international project on entrepreneurship and recommendations for analyzing
and facilitating the publication of research on entrepreneurship.
CONCLUSION
I personally found the book a successful effort with multiple views inviting ones curiosity
and interest for entrepreneurship. The authors have toiled hard in compilation of concepts and
research by individuals. This book helped me understand the concepts and importance of
entrepreneurship and its implication in the field today. I recommend this book as a must read
for all the present and future entrepreneurs.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
PATTERNS OF ENTREPRENEURSHIP
By: JACK M. KAPLAN.
M. Arsalan Khan
01-211082-075
BBA 6A
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“Patterns of Entrepreneurship” is authored by Jack M. Kaplan who is a Professor of
Entrepreneurial Studies in Columbia University Business School. He himself is owner of
three successful businesses relating to smart cards and electronic gift. Since he is also
affiliated with the technological side of the businesses and entrepreneurial activity he is more
focused on them in his book.
“Patterns of Entrepreneurship” is an interactive learning experience that all about the
challenges, issues, and rewards faced by entrepreneurs in starting and growing a venture. The
text is different from othe rs because it provides with more easy to understand and defined
guidelines about entrepreneurial strategies and how to develop them plus how to come across
challenges of the real world. Throughout this book are certain tips which would help a person
become a successful entrepreneur and plus the things which should be avoided are also
mentioned. Throughout the text book author relates the theories and the text with the real
entrepreneurs which makes it really easy for students to understand and relate that how a
certain strategy or a certain decision help that entrepreneur gain more success. There are
many case studies which are about real life situation and how they were dealt with by the
entrepreneurs this actually very helping form of experiential learning. There is a lot of focus
on the technology and since it is growing everyday “Patterns of Entrepreneurship” provides
with the solutions which can help students overcome the technological issues created during
an entrepreneurial activity. Patterns of Entrepreneurship also gives awareness to students
about all the legalities and formalities of the entrepreneurship like; business plans and their
formats, financial plans, patent registration and many more.
The book is divided into four phases which are identica l to the entrepreneurial process. Each
chapter is designed to develop the understanding that part of the entrepreneurial process and
how the best result can be reached. First Phase is about “Starting the Venture” which walk
you through the details one mus t know before thinking about starting an entrepreneurial
activity. Second phase is about “Source of Financing” which happens to be yet another very
important topic. Third Phase is about “Implementation” and fourth one is about “Alternatives
and Options”. This simple and relevant classification of book into chapters which explain all
the ambiguities of the entrepreneurial process are very helpful and easily understandable. The
book also defines the alternatives which a person can choose and what would their results be.
Similarly there are several assessments and task which could be performed to know that what
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would be your stance on a particular entrepreneurial situation after you have been taught the
guidelines of making a fruitful decision in that particula r field.
The book is very interesting and gradually provides knowledge about entrepreneurship and
all the related fields of business and entrepreneurship in a way which is easy to understand
and comprehend and then easy to apply in to real world with all the basic and detailed
knowledge about the alternatives and options and their respective results. The book focuses
upon motivating the students that they should also look around for opportunities and make
the right decision on the right time and avail them using your creative and practicality and
make the world better someway.
What I enjoyed mostly was its simple and direct structure – the chapters are easy to read and
the book is easy to navigate. In this respect, “Patterns of Entrepreneurship Management” is
more of an experiential book rather than the dry textbook. The many entrepreneur profiles
actually give you a vivid picture of what it means to struggle every day with your own idea,
and what is the taste of success. Lots of case studies, examples, assessments and exercises all
a very good supplement material for the theory.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
Entrepreneurial Management
By: Dr. S. M. NAQI
Arsalan Ayaz Kiyani
01-211082-020
BBA 6A
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Management:
Management is a process of effectively using the given resources and mobilizing additional
resources to achieve an agreed goal, or else to get things done through others.
There are several styles of management such as autocratic, participative, consensus,
charismatic, transactional, management by fact, coaching, democratic.
Henri Fayol developed a list of management functions.
• Planning
• Organizing
• Directing
• Coordinating and controlling
Skills necessary for effective functional management
• Technical skills
• Human skills
• Conceptual skills
David Starr Jordan said `the world stands aside to let anyone pass who knows where he is
going`.
Planning
It is that if you fail to plan, you are planning to fail.
Planning is the thoughtful process in which an entrepreneur thinks, anticipates, forecasts,
judges and decides.
Types of plans
There are for types of plans
• Strategic plans
• Operational plans
• Short term plans
• Specific plans
Winston Churchill once said `a goal without a plan is just a wish `.
Organizing
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Organizing it basically means that necessary physical arrangements be made in terms of land,
building, materials, staffing, financing, infrastructure, machinery, plants, tools, technology
and above all to setup a suitable organizational structure and system to enable the enterprise
to function and implement the plans developed by the entrepreneur.
Effectiveness
Doing things right is called effectiveness.
Types of effectiveness
There are three types of effectiveness
• Apparent effectiveness
• Personal effectiveness
• Leader`s effectiveness
Criteria of effectiveness
• Productivity
• Adaptability
• Organizational flexibility
Efficiency: -
Efficiency is accomplishing a job with the use of minimum resources or maximum output
within minimum inputs.
Productivity
It is a measure of efficiency and in its simplest and most basic form, it can be expressed as :
Productivity =output/input
Factors affecting productivity:-
Hard factors
• Plant and equipment
• Technology
• Material and energy
Soft factors
• People
• Organization and systems
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• Work methods
• Management styles
Human resource and their management:-
It is the responsibility of the manager or the entrepreneur to manage the human resource
because it is the one who has to perform work or tasks for the organization.
Decision making
In ultimate analysis, management is all decision making. You decide what to achieve? How
to achieve? What to achieve? What organization is needed? How to organize?
Different approaches to decision making:-
• Entrepreneurial
• Instinctive
• Traditional
• Common sense
• Professional
• Opinion based
Peter .F. Drucker said `wherever you see a successful business, someone took a courageous
decision`.
Communication:-
Communication means exchange of information. Managers manage mainly through
communication verbal, nonverbal, implicit, explicit, direct, indirect, personal, close, remote,
written, formal and informal in short in a host of ways.
Communication helps entrepreneurs in different ways such as negotiations, finalizing deals,
motivating subordinates e.t.c.
P.F. Drucker said` the most important thing in communication is to hear what is not being
said`.
Time management
It is something which is a must for everyone not just entrepreneurs or managers.
According to Sir Arthur Keith “Want of punctuality is a want of virtue”
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Qualities of Entrepreneurships
1. Creative and innovative
2. Flexible and dynamic
3. Task solving attitude
4. Leadership skills
5. Excellent communication and public dealing skills.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
THE ENTREPRENEUR NEXT DOOR
By: JEFFREY GITOMER
ARSLAN JAWAID01-11082-014
BBA 6A
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Someone once said “There are no elevators to success. You have to take the stairs.” Perhaps
there are no elevators, but when armed with The Entrepreneur Next Door, there are certainly
escalators. In The Entrepreneur Next Door (Entrepreneur Press, June 2006), Bill Wagner
analyzes the characteristics and personality traits that make up a successful entrepreneur
and invites readers to take an online personality test to determine their own entrepreneurial
strengths and weaknesses.
The Five -Tier Performance Pyramid outlined in this book helps the reader learn more
about their own personality, job behaviors, actions, results and metrics in comparison with
those of already successful entrepreneurs. Studies have shown that a person will be five
times more successful in a position if he or she has the right personality for that particular
job. In addition, research indicates that many personality types, even less entrepreneurial
ones, actually do have the potential to birth a successful business.
This is a well written, well researched book that is funny and insightful. As a business
executive we are always looking for the "How to" and very few business books provide the
how to. It is the stories, the anecdotes and the research that together create a very compelling
story about success, self awareness and accomplishment. Test takers are determined to have
one of seven different personality types. Four are more Generalist, big picture, more strategic
in their thinking and orientation and three are more Specialists, more careful, by the book,
more tactical with a well defined area of expertise. The Generalist is referred to as having a
stronger Entrepreneurial type of personality whereas the Specialists are referred to as more of
a Wantrapreneurial type of personality. The book is then written from seven different
perspectives so that readers are able to learn specifically about themselves. This is unique in
that most writers write from their perspective and rarely write from the perspective of the
reader. That plus the fact that the reader gets their own personality test is really cool stuff.
Successful entrepreneurs have one of two things going for themselves. They either have
the right personality to be an entrepreneur or they have the self awareness to
unders tand the difference that exists between who they are and who they need to be. It
is this GAP that allows the entrepreneur to use a cognitive process by which they can change
their behaviors in order to drive the results they desire. On page eleven of the book I
introduce a Five Tier Performance Pyramid that takes readers through this cognitive
process. Tier I is our natural personality and we all have a natural style of personality. Tier
II represents the behavioral requirements of our position. It could be an entrepreneur but it
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could also be the behavioral requirements for the position of a truck driver. They do not
typically have the same personality. The behaviors (Tier II) represent the requirement and
Tier III represent the actions that are necessary or requisite to make things happen. As we
all know, Actions with a method of Metrics leaves us with planned failure. Metrics represent
Tier IV and finally Tier V is the Results we are able to accomplish. It is the reader's ability
to cognitively understand and embrace this Five Tier Performance Pyramid that allows them
to drive positive change.
The book is written for a broad spectrum. It has a great message for existing business ow ners
and their significant other, their employees and partners as it provides insights as to why they
do what they do. Years ago, I was presenting to a group of entrepreneurs in Guatemala City
and after the meeting of entrepreneurs and their respective spouses one of the spouses
approached me and said, "I use to think that my husband was the rotten apple, now that I see
the personalities of all of these entrepreneurs I realize that the whole bushel is rotten." This
was her epiphany that her husband being different was a good thing because it allowed him to
have the level of success that he required.
The Entrepreneur Next Door is also written for those that desire to go into business for
themselves as it provides them with a roadmap, an objective roadmap. Our research indicates
that it is easier if you have a personality that is perfect for an opportunity but what about the
other 60+ percent of the population, those that are more risk averse, and those that prefer
taking their time and really teach a subject well those individuals can be great as a franchisee
or a distributor. They can be great where the brand brings their customers to them so they
don't have to be the aggressive marketer themselves.
There is a third and unexpected group that has strongly benefited from their reading of The
Entrepreneur Next Door and, that is, existing companies and corporations. Their upper
management has struggled for years with those that lack initiative which is something that
entrepreneurs have in strong supply. The se corporate readers always know who they have
issues with, their new found understanding has provided them with the Why the issues exist,
what they can do about it and How they can fix it.
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Wagner says, “Over the past eight years, I, and the members of my company, Accord
Management Systems Inc., have interviewed and studied the behaviors of more than 1,500
fearless business founders and leaders. Most were under 40 years old, primarily in their 20s
and 30s. They also all had annual sales of more than $1 million. What we discovered from
our study is that, as different as these entrepreneurs appear, with relation to each other, they
share a number of common personality traits. These traits were the predominant indicators of
their success; far outweighing what we usually rely on to determine one’s success: education,
family ties, skills, and experience.” Wagner is the top expert on understanding workplace
behavior and knows what successful traits entrepreneurs posses that lead to financial
independence. He can tell potential entrepreneurs how to start a business based on their best
qualities and skills, and what they can do to achieve entrepreneurial success.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
The Knack: HOW STREET SMART ENTREPRENEURS LEARN TO
HANDLE WHATEVERCOMES UP
By: NORM BRODSKY
AWAIS TARIQ
01-111082-020
BBA 6A
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Brodsky and Burlingham offer an excellent book for entrepreneurs, stressing the thinking
necessary to deal with many different situations and to identify and capture opportunities as
they arise. Brodsky is an entrepreneur and mentor for numer ous other entrepreneurs, and the
authors use the experiences of one small business as an example of the challenges and
growing pains common to all new ventures and what the owners learned along the way to
their success. Excellent attention to detail is provided, including the basics of accounting,
establishing a goal, determining the viability of a business, and the importance of gross profit.
Each chapter, which concludes with important summary points, covers a critical step in a
start-up journey including the right stuff, handling inevitable mistakes; why start-ups fail;
finding investors; how to lose customers; and what it takes to be the boss.
People starting out in business tend to seek step-by-step formulas or specific rules, but in
reality there are no magic bullets. Rather, says veteran entrepreneur Norm Brodsky, there’s a
mentality that helps street-smart people solve problems and pursue opportunities as they
arise. He calls it “the knack,” and it has made all the difference to the eight successful start-
ups of his career. Brodsky shows readers how to apply “the knack” to their own businesses.
Brodsky and Burlingham offer essential advice such as:
• Follow the numbers—that’s the best way to spot problems before they become life
threatening • Keep focusing on your real goal--it’s amazingly easy to get sidetracked by
secondary concerns • don’t get so close to the problem that you lose all perspective.
• How relying on your receivables as your “inner bank” can help you survive today’s credit
crisis
• What to do if customers stop paying bills on time
• How to protect yourself from the inevitability of creeping expenses
• How to retain customers when your competitors cut prices
• Why you must never confuse good sales with good cash flow
• Why having competitors is far better than being first to market
• Why the most impressive business plans are the least trustworthy
• Why a “sales mentality” is dangerous for business
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• Why it’s better to have many small customers rather than fewer larger ones
• Why you should avoid socializing with employees outside the office
• Why it’s better to hire salespeople from outside your own industry
• How to judge if your business is viable
Readers will learn these and many other insights from Brodsky own stories of facing such
challenges as discovering theft from a trusted employee, realizing when it was time to hand
over management to his team, and rescuing his business from bankruptcy after trying in vain
to grow it to $100 million. Readers will also meet Bobby and Helene Stone, the first of many
entrepreneurs that Norm has personally mentored. He helps steer them from nothing to a $3
million dollar business in just a matter of years by focusing their attention on all the critical
factors that make a business healthy, from gross margins to cash flow. Brodsky and
Burlingham prove that business acumen is within anyone’s reach.
They are also pragmatists who understand what works...and what doesn't...in the
contemporary business world. The "toolbox" metaphor is especially appropriate because the
reader will find in this single source just about all they need to achieve and then sustain
success. For example, in the first two chapters, Brodsky and Burlingham explain how to
• Make the right decisions
• Manage cash flow properly
• Balance the sales mentality with the business mentality
• Anticipate and then prepare for changes with analytics
• Be resilient when countering failure and learn from it
• Identify root cause rather than respond only to symptoms
• Balance focus and discipline with resiliency
• Recognize answers and solutions with peripheral vision
Then in Chapters Nine and Fourteen, Brodsky and Burlingham explain how to
• Build relationships that retain your most profitable customers
• Help those customers to become "smarter buyers" by understanding your business
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• Treat long-time customers like new prospects so they won't feel taken for granted
• Allocate sufficient time for face -time with customers
• Select salespeople who will be appropriate representatives of the company
• Determine criteria for determining who should not be hired to sell
• Compensate salespeople to avoid internal competition and division.
• Involve all other employees as an extended sales force.
The Knack does not offer a formulaic approach that can be implemented to achieve goals.
Rather it unveils a way of thinking that allows the reader to understand how others have dealt
with many different entrepreneurial challenges. For instance, Brodsky believes the No. 1
quality successful entrepreneurs exude is resilience, the ability to bounce back from failure
and to learn from mistakes.
Further, his calm and reassuring manner prepares the reader for what lies ahead. “Sure, we
like to think we’ll eventually get so smart we won’t make mistakes anymore,” he says.
“Forget about it. You will never stop making mistakes. Hopefully the new ones won’t be the
same as the old ones, but they’ll be equally painful.”
He says that people on their first business venture are almost always overoptimistic and, at
the same time, they are scared to death. Both traits have to be held in check before they lead
to bad decisions about how to spend limited capital. For instance, entrepreneurs must temper
the urge to grow by maintaining patience and solid risk assessment. But, too, instead of
fretting over problems, they should engage in the fun and excitement of finding solutions.
To be sure, having that mentality doesn’t guarantee that you’ll succeed at everything you do,
but it does improve your chances significantly.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
FUNDAMENTALS OF ENTREPRENEURSHIP
B y: NAFEES A KHAN
AYESHA ARSHAD01-111082-022
BBA 6A
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Entrepreneurship has been recognized as the engine of economic development and
industrialization. Small business serves as the seedbed of entrepreneurship. The book with its
wide coverage is an attempt to present a lucid treatment of a wide range of issues involved in
the Development of entrepreneurship. It has focal emphasis on the identification of business
Opportunities, Creation of a venture, financing and managing it. The book highlights concept
of Entrepreneur and entrepreneurship, emergence of entrepreneurial class, motivation and
entrepreneurial behavior promotion of venture opportunity class, environmental analysis,
small scale units, various legal requirements for establishing a new unit, raising of funds,
venture capital sources and documentation, entrepreneurial development programmers and
concludes with role of entrepreneur. This book provides exposure to the students to the
entrepreneurial culture and industrial growth as to prepare them to set up and manage their
own small units. An entrepreneur may be defined as an individual who desires to add value to
the economy by creating a new business venture through the utilization of his knowledge,
passions, and dreams and desires .An entrepreneur is neither a technician nor a financier but
he is considered to be an innovator an organization builder and a risk taker. An entrepreneur
should posses all such characteristics with help of which he can perform successfully. Most
common attributes of an entrepreneur can be courage, good- judgment, initiative, skilful,
competent, perseverance and emotional stability. An entrepreneur being are risk taker
,innovator ,organizer ,creative ,motivator ,competency, self confidence, optimistic, ability to
drive, mental ability, human relations ,communication, decision maker, business planner,
visionary and adversities. In the initial stages of economic development, entrepreneurs tend to
be shy and humble but as the development process picks up speed, they tend to become more
enthusiastic and confident. Three different functions of an entrepreneur are given in this book
are primary functions, functions for developing countries and other functions. In primary
functions, there are seven steps planning, organization, decision making, management,
innovation, risk bearing and uncertainty bearing. Entrepreneurship is found in all professions,
including education, medicine, law, architecture, research, social work and engineering
.entrepreneurship growth in India is slow as compared to other countries. Women’s
entrepreneurship is still slower and rather negligible. Some social factors are lack of
education, lack of independence, responsibility of rearing the children, family burden etc.
some of economic factors could be lack of mobility, lack of exploitation, shortage of finance
etc.
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The concept of entrepreneurship is as old as civilization. Theories of entrepreneurship can be
broadly be classified into four categories, economist’s view, sociologist’s view,
psychologist’s view and anthropologist’s view. Entrepreneurs are motivated and talented
class of people as key figures in the growth of new enterprises. Leadership is an
indispensable activity which every manager has to perform for directing the people working
under him. A leader may or may not be a manager, but manager must be a leader. A good
manager achieves maximum co-ordination from the group members by providing two way
communications. There are six different types of leaders. Intellectual leader, Institutional
leaders, Democratic leaders, Autocratic leaders, persuasive leaders and creative leader.
Promotion is the discovery of business opportunities and the subsequent organization of
funds, property and managerial ability into a business concern for the purpose of making
profit. Stages in promotion of a venture are concerning an idea, exploring the possibilities,
carrying detailed investigations, making projections on the idea, entering into necessary
contracts, and fulfilling legal formalities. Opportunities are of three kinds. Additive
opportunities are those which enable the decision maker to better utilize the existing
resources, complimentary opportunities involve the introduction of new ideas and break
through opportunities involve fundamental changes. Some ideas may be discovered by the
consumers, existing companies and market survey, distribution channels, professional
experts, government and their agencies, trade fairs and exhibition, research and development.
Environment analysis or scanning involves monitoring and evaluating changes and trends in
the environment of a venture. It is a sort of strengths, weaknesses, opportunities and threats
(SWOT) Analysis which helps in deciding about the right course of action for the
entrepreneur. External environment can be analysis by economic, natural, socio-cultural,
political-legal and technological environment. The entrepreneur of a small scale should seek
registration with the state directorate or commissioner of industries or district industries
centre of the concerned state. Registration is voluntary and not compulsory. there are two
types of registration certificate is provided and after commencement of production ,a
permanent registration certificate is issued provision registration certificate (PRC) is valid for
5 years and permanent registration is given later on .A firm can adopt three types of financing
policies to finance its working capital .short term finance, long term finance and spontaneous
finance. Long term loans are available for more than 5 years .Medium terms loans are made
for 2 to 5 years. venture capital is also described as unsecured risk financing features of
venture capital is also described as un secured risk financing features of venture capital are
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equity and debt, high risk, professional entrepreneurs, new technology, participation in
management, long term investment and expectations. Motivation is an art of getting work
done by the people and there by achieving the best results .motivation is the process of
creating organizational conditions which will impel employees to strive to attain company
goals. There are two theories which are particularly relevant to entrepreneurship Maslow’s
need hierarchy theory (psychological needs, safety and security needs, social needs, ego
needs and self actualization needs), McClelland’s acquired need theory. Entrepreneurs are
born and not made. . A good entrepreneur has ability to inspire specific personality, as has
ability to motivate others to work. Entrepreneur is a person who always searches for change,
responds to it and exploits it as an opportunity.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
Entrepreneurship: New Perspective In Global Age
B y: ANNE DE BRUIN ANN DUPUIS
AZIN MUFTI
O1-11082-024
BBA 6A
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Written & edited by Anne de Bruin & Ann Dupuis , it’s a book that truly provides a fresh and
innovative approach to Entrepreneurship and I personally found it quite interesting as it used
a multi-dimensional approach. The book focuses on the underlying global aspects and their
implications for entrepreneurial activity and also identifies the need for new research
directions. It puts forward a flexible, expansive conceptualization of the continuum of
entrepreneurial behavior and integrates context, culture, social networks and entrepreneurship
as an embedded activity. Its main perspective is based on showing entrepreneurship as a
continuum of activities. It also demonstrates the problems in establishing thresholds for ideas
such as ‘innovation and risk’. The book says that there are 3 key characteristics which need to
be present for an activity to qualify as entrepreneurial, those are uncertainty and risk,
complementary management competence, and creative opportunism. Different types of
entrepreneurial ideas and fields where entrepreneurship is common are talked about in this
book chapter by chapter making it easier for us to understand.
The first chapter basically discusses the innovativeness and the risk taking involved in an
entrepreneurial process and how important is the term idea generation and creativity in this
entire process. The following chapter extends the concept of constrained entrepreneurship,
the main aim of the chapter is to heighten the awareness of the entire context in which the
entrepreneurial activity is located so it puts forward the constrained entrepreneurship as a
broad framework for contextual studies of entrepreneurship noting that all entrepreneurships
occur within constraints of social processes including institutional constraints at macro level
of the individual.
The concept of Ethic al entrepreneurship has been discussed in this book and it says that it
may be viewed in terms of constrained entrepreneurship where it was pointed out that
entrepreneurship exists within constraints at both micro level and macro levels. It is often
said that investors in capital markets are not concerned with the ethical issues and that their
only concerned with the financial returns which is a misconception. Being ethically
responsible may be very important for an entrepreneur. The demand for socially responsible
behavior, environment friendly products and services, and the sustainable use of inputs
creates new markets for the entrepreneurs to serve. It also gives scope for entrepreneurs to
develop creative differentiation strategies as means to gaining competitive advantage in
gaining and attracting customers and investors for whom ethics is an important consideration
in their buying and investing decisions. Thus you must have great ethical values to succeed as
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an entrepreneur. And entrepreneurs must capitalize on the opportunities that arise from
serving a heightened ethical conscious in an economically integrated world. Entrepreneurial
capital has also been discussed in one of the chapters which focus on the nature and the
characteristics of the entrepreneurial process, and it examines the process from a resource
based perspective. Capital is known to represent material wealth which is owned and that can
be used to generate further wealth. This book here employs a broader view of capital that it is
used to encompass a range of non financial assets and resources that can be used in the
entrepreneurial process. Now there are 5 types of capitals which are talked about here namely
economic capital, human, social, physical and cultural capital. Collectively these forms add to
make a person’s total capital, parts of which will have entrepreneurial value.
The concepts of Electronic and Familial Entrepreneurship have also been discussed in the
book. As far as electronic entrepreneurship is concerned, the constant de velopment of
technology in the accompanying economy has had significant influence on the various
possibilities for developing innovative business concepts based on electronic information and
communication networks and realizing these by establishing a new company. Against this
background the term E-entrepreneurship respectively describes the act of establishing new
companies specifically in the net economy. The main purpose of this chapter was to highlight
that electronic entrepreneurship opens up a range of new opportunity in terms of resource
based perspective of entrepreneurial activity. Whereas Familial entrepreneurship explores the
overlapping domains of family and business. It suggests that joint careers are preferable to
that of symbiotic careers. It describes what we term the primary career and auxiliary career
which often go to make up a joint career. Both strands of career are a prerequisite for the
resilience and success of the family business. Observations from New Zealand are drawn on
in this book to illustrate our discussion. It wants us to further understand the boundary less
career and help move forward the research agenda on the united career trajectory.
The book tells us about the importance of Youth entrepreneurship which focuses on many
interesting facts. Youth are often referred by the adults as very complex to understand.
Unfortunately unlike adults youth rarely have the opportunity to share their opinion or have
the power to share public opinion about themselves. The ultimate results of this bias, needless
to say, are disastrous, with society shortchanging the potential contribution of youth. Youth
represent energy, sexuality, hope, fun, potential, future and freedom from responsibility. A
nation’s failure to successfully nurture and enhance the competencies of youth spells doom
for the future of that country. In short it tells us the importance of the youth and how we
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should take them towards achieving more and giving them important roles and enhancing
their confidence so that they may achieve what they want. It tells us that youth
entrepreneurship is still in its infancy and may evolve in countless ways in the not too distant
future.
Municipal-Community Entrepreneurship has been discussed in the book which shows the
importance of the maintenance of the dynamism of cities and other sites of localization. It
also brings to specific prominence the forces of localization and decentralization of the role
and responsibility of state to sub national tiers of the Govt. Thus the inclusion of dual
terminology Municipal and community effectively communicates the need for active
community participation with an explicit, overarching support provided at local government
level rather than that of central government. It also tells us that as with community
entrepreneurship, municipal-community entrepreneurship can open new horizons through
market leading activity. Secondly there’s a chapter dedicated to State entrepreneurship in this
book which provides a global perspective on the changes that have taken place in the role of
the state. It has a strong synergy with the Municipal-community Entrepreneurship. The
differentiation in this chapter is the spotlight on the entrepreneurship at the central
government driven and national policy making level. It tracks the implications of the global
age for the structure and the changing nature of the state. It is further illustrated in the book
through the use of models based on New Zealand and South Korea.
Basically this book covers all these aspects and makes is easier for us to understand them and
relate to all the entrepreneurial activities which take place in different fields. It shows that
innovativeness, idea generation and risk taking exists at all levels as portrayed by the book. It
should help us to rise above age, sectors, communities, races and genders, and thus help us to
gain a better understanding of how variations in entrepreneurial behavior occur. In short the
book is perfect for understanding the entrepreneurial activities and how they take place as
they are happening at every level without us knowing about it and how we can capitalize on
them. I would like to conclude this with one of my favorite quotations;
“Every worthwhile accomplishment, big or little, has its stages of drudgery and triumph; a
beginning, a struggle and a victory” – Mahatma Gandhi
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
Business Elites- THE PSYCHOLOGY OF ENTREPRENEURS AND
INTRAPRENEURS
By: REG JENNINGS CHARLES LOX & CARY L COOPER
ASAD ALI SHIGRI
01-111082-015
BBA 6A
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Page 83
This book is not about the struggling entrepreneurs, rather an in-depth study of the traits that
distinguish two equally important business elites, independent entrepreneurs and the new
breed of corporate ‘intrapreneur’ who head such firms as W.H. Smith and Cadbury
Schweppes.
Based on interviews with around forty prominent business leaders, the book presents a set of
profiles showing the social origins, childhood influences, education and work ethic which
have helped shape these exceptional people. It is clear that a different pattern emerges in the
development of entrepreneurs from that of the intrapreneurs. This finding offers invaluable
insights into the different forces that shape modern leaders, both inside and outside the
corporation.
By ‘elite’ the books states the highly successful entrepreneurs and intrapreneurs who are
heading very large and successful organizations. They are all successful in the sense that they
are wealthy, being multi-millionaires. By entrepreneurs, the book states the individuals who
have started their own businesses and built them into large organizations. The intrapreneurs
are individuals who are heading large corporations of which they are not the owner and
which they did not themselves develop. They may, however, be a major or minor
shareholder, although they are members of the family of the original founder. The book
shows what motivates these individuals and what factors contribute to their development.
Some case histories of prototypical entrepreneurs and intrapreneurs have been presented.
From these a number of broad generalizations concerning their similarities and differences
were made. Both groups show very high levels of motivation and need to achieve. The
intrapreneurs, however, have a more cautious approach to life, showing more concern to
develop their businesses stage by stage, consolidating each step as they go. The entrepreneurs
show a higher level of innovation and risk-taking, together with rather greater versatility.
The book tells us about two distinct streams in terms of childhood experiences. The male
entrepreneurs suffered more deprivation during childhood, but appeared to have had a closer
relationship with their mothers than male intrapreneurs. Women entrepreneurs and
intrapreneurs tended to show a pattern of rebelliousness against their parents. Entrepreneurs
suffered the loss of a parent during their childhood considerably more often than did
intrapreneurs. All business leaders have some childhood experiences in common, which
generates common character istics such as tenaciousness, ability to recover from trauma, and
the need to achieve. It appears to be the reaction to a childhood trauma and not the event
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itself which counts in later life. Some basic intellectual capacity is genetic, but there is little
doubt that childhood shaping events contributes significantly to developing the leaders-to-be.
A combination of learning from adversity and tenaciousness in relation to early personal
trauma, leading to the successful testing out of different survival hypotheses, are the elements
used by business leaders to overcome failure, Entrepreneurs display a high degree of self
motivation and mastery of their environment. They demonstrate a remarkable resilience in
the face of failure. Finally, parents, particularly the mother play a most powerful role in
establishing entrepreneurial actions in the male child.
Seventy two percent of the entrepreneurs in the study were discovered to come from working
class backgrounds where their fathers worked as coal miners, plumbe rs, bookmakers, or
clerks from the ranks in the military. Only twenty percent of intrapreneurs were seen to have
working class origins. Marginalization was also almost exclusively the domain of the
entrepreneur. Forty seven percent of entrepreneurs had suffered some form of
marginalization, social, physical or religious, whereas only fourteen percent of intrapreneurial
interviewees came from marginal back grounds.
Regardless of lowly origins or marginalization, and in spite of barriers or hardships, it
appears that familiarity with obstacles that have to be overcome in some way has a
motivating quality to the entrepreneur, driving him on to ever greater achievements.
Entrepreneurs have come from a variety of educational backgrounds but, accountancy is
popular, although they are much less likely than intrapreneurs to have a university degree.
Sixty eight percent of intrapreneurs graduated from university, whereas only twenty one
percent of entrepreneurs achieved a university degree. A university or business school
education is not a prerequisite to success as an entrepreneurial business leader. However, if
one wants to climb to the top of the corporate ladder within a large organization, or assume
the leadership of a family firm, it is best to have a university degree and some school
experience. Intrapreneurs are far more likely than entrepreneurs to have had a mentor or
guardian angel who helped and supported them during the early stages of their career.
There are a number of personality characteristics on which entrepreneurs differ from
intrapreneurs. Some of them are:
1. Entrepreneurs show very high levels of innovation. Intrapreneurs score very close to
the population norm, being neither strongly innovators nor adaptors.
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2. Intrapreneurs are close to average on efficiency(being methodical and precise)
3. Entrepreneurs are much less efficient.
4. Entrepreneurs are much more conformist than intrapreneurs.
5. Both groups see themselves as good verbal communicators.
6. Entrepreneurs easily become bored with routine work; intrapreneurs are more able to
deal with detail.
There is a general belief that entrepreneurs are hardnosed and greedy but there are many acts
of pro-social behavior shown in the book. Generally, their acts of philanthropy or charity
were anonymous.
In some cases, guilt seems to have been the main motivator for acts of charity. Others saw a
chance to promote their firms by being associated with good works, and some glimpsed the
possibility of knighthoods or other honors which might accrue from such acts.
Basically they do charitable acts mainly from their parents and religious teachings of moral
obligation, together with a strong work ethic, combined with internalized norms of behavior
and concern for others needs.
Although both groups achieve much the same thing – wealth, status and power – their paths
to success, their motivations and their personality characteristics are, on many counts,
significantly different.
Entrepreneurs have usually experienced and can cope with catastrophic financial failure.
They are able to rebuild their businesses after collapse. Entrepreneurs are far less likely to
have had support and help from others than intrapreneurs. Equally expected is that elite
entrepreneurs are greater risk takers and tend to be inner directed. Intrapreneurs, in the main,
being other directed, are more risk averse. Entrepreneurs can usually point to some
significant shaping event which set them on their present career paths.
However, members of both groups also had several common dimensions. They all work
extremely long hours, both groups are steeped in the work ethic, both groups are
philanthropists. They are intrinsically motivated by, interested in, and find enjoyment in their
work and the sense of achievement it provides.
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Although all are multi millionaires, most claim that wealth was not their main motivator.
Wealth can be seen as a by- product of these successful men and women, who do what they
enjoy doing. They see themselves as having good communication and decision making
skills..
Successfully coping with extreme difficulties while very young seems to set a pattern of
resilience and the ability not merely to cope with but to learn from adversity. It is this ability
which is, suspected to be the key attribute of these successful individuals.
Most significant study from the findings in the book is that many successful entrepreneurs do
not learn their skills from for mal development programs, but from real life experiences.
The independent entrepreneurs’ ability to overcome failure and setbacks is amazing; it is this
do-able philosophy that keeps them winning. If success means deciding what you want to do
and then going out and doing it, perhaps by studying these high flyers, others may benefit by
learning how to achieve their own goals. After all, truly well adjusted individuals, in harmony
with the environment and community, do not need to achieve great things but simply their
own ambitions.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
Entrepreneurship
By: ALAN L. CARSRUD, MALIN BRAN BACK.
BADAR TUFAIL
01-111082-025
BBA 6A
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Page 88
The authors Carsrud and Brannback are executives in well known multi-national companies.
They have taken their years of valuable professional experience and compiled it into this
book titled ‘Entrepreneurship’ to act as a guideline for those who want to excel in the field.
This book is aimed particularly at those considering starting a business as well as students
and researchers, this book defines entrepreneurship and its importance for economic systems.
Considering the level of experience and expertise that the authors have I have found the
information provided by them to be practically applicable and quite frankly they’ve
convinced me into their fan.
In their book the authors have examined various areas of entrepreneurship firstly giving a
brief introduction by offering various perspectives to the subject describing the importance of
entrepreneurship and the pursuit of opportunity in greater detail along with the
entrepreneurial minds, types and personalities to help the reader understand what will be
demanded of them if they choose entrepreneurship as a career alternative which I personally
feel the authors have elaborated very well. Then they have described the entrepreneurial
environment by explaining how important it is for an entrepreneur to understand the business
environment before launching a new venture. The next step described is idea generation the
part which defines an entrepreneur, providing some idea generation exercises and methods
for rapid screening of opportunities for potential new ventures. Critical in this stage is to get
the reader to get their business concept in black and white and to start on an executive
summary for their business plan.
Further on entrepreneurial strategies have been discussed in which they have said for starting
entrepreneurs the task of handling competition is new and many are quite unprepared for the
challenge. So the authors have identified different ways how the entrepreneurs can deal with
competition through different forms of innovations, be it product innovation, or business
concept innovation. Moving on new ideas for products and services have been encouraged,
underling the importance of addressing customer needs, wants and fears in developing
products and services. Also describing the criteria that successful products and services have
to meet to gain customer acceptance, including financial consideration with respect to new
products and services. Furthermore authors have provided a brief overview of the concept of
strategy and have described the role of strategy in entrepreneurial companies. Key issues of
managing the industry environment have been brought under discussion as well as the
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business environment at large, including the global business environment and legal
environment.
The book also focuses on how markets and customers can be identified, categorized and
reached based on a variety of criteria. However, all activities are based on understanding and
responding to customer wants, needs and fears. Once the external world has been examined,
it is then critical for the entrepreneur to look at the proposed internal operations of their
venture to see what they need to exploit the opportunity they have identified earlier. Also
identifying the importance of an operations plan, pricing strategies, as well as financial needs
and resources that the entrepreneur may have and be able to address. Next comes the
management of human capital since people make a new venture work or fail they are the
biggest resource (and expense) any entrepreneur has. The differences between being a
manager and an entrepreneurial manager have been discussed with specific attention being
paid on hiring, out-sourcing personnel, compensation, employee management and
motivation. Finally the authors move beyond the issues of opportunity, recognition and
planning into the fundamentals of inciting a business. Focusing on the issues of growth, such
as how to manage growing organizations, building effective entrepreneurial management
teams and the management of change. Also showing how to keep the entrepreneurial spirit
alive in a larger organization.
While going through this book I have learned the ways to tackle the very basic problems that
a common man may have trouble solving in his entrepreneurial career. Before going through
this literature I perceived entrepreneurs as sheer lucky people obsessed with acquiring riches
through any means but this misrepresentation about them has been corrected and brought
their true characteristics to light.
Carsrud and Brannback have supported each topic by stating very good examples along them
to prove the practical aspect of each entrepreneurial stage. And keeping in mind all the
articles and books I have gone through on this subject are in alignment with their teachings. I
would like to recommend this book to anyone whom may like to add to his knowledge and
clear any misunderstandings that he may have regarding entrepreneurship.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
Lead Like An Entrepreneur
By: NEAL THORNBERRY
BASIT ALI01-111082-026
BBA 6A
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This book is about the entrepreneurial leaders, who they are, what they do, and how large
companies can benefit significantly from identifying, developing, and supporting these new
corporate leaders. Book reveals how to tackle the creativity and innovative thinking that is
typical of entrepreneurs and use it as solution to the organizational problems that affects so
many established companies. According to Neal risk taking leaderships creates substantial
benefits because it takes only a few such people within an organization to make significant
differences to the top and bottom line. Promotes the entrepreneurial spirit in your
organization by integrating leadership and management within an entrepreneurial framework.
Identifying new business opportunities with high growth potential. Focusing human energy
on value -creating activities. Identifying and developing the four types of entrepreneurial
leaders--explorers, miners, accelerators, and integrators. Attracting and supporting
entrepreneurial leaders through focused management development programs.
This book is also featuring in-depth profiles and success stories from some of today's top
companies, including IBM, 3M, Intel, General Electric, and many others, "Lead like an
Entrepreneur" reveals how to foster innovation at all levels of the corporation and how to
employ entrepreneurial leadership qualities to turn ideas into economic value.
Leading like an entrepreneur requires both an entrepreneurial mindset and entrepreneurial
skills set into their daily lives as organizational leaders and managers. Entrepreneurial
leadership is more like transformational leadership and they focus a great deal of their energy
on aligning people behind the vision and then recognizing, restructuring, outsourcing , hiring
and firing so that the vision becomes a reality.
Entrepreneurship is about opportunity identification, development and capture. This is what
they do and why they are called entrepreneurs. Author is of the view that entrepreneurs are
made rather than born and proved with real life experience when he taught Dieter 52 year old
engineer who was nil and was not having single entrepreneurial skill and how he turned to
successful entrepreneur and established his own business plan just with the learning and
guidance in only 6 weeks. So it is important for companies to be optimistic about their
abilities to either find people with entrepreneurial skills or to develop these people through
focused management development experience. Entrepreneurial Leaders are the visionaries
and future for the success of large corporations. Today everyone wants to play it safe and
follow strategies of other companies within their own industries.
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Developing entrepreneurial leaders is the key to finding hidden value in any organization.
Learning how to create or rekindle the entrepreneurial spirit in your organization, and all of
your stakeholders will benefit. Terms like innovation and entrepreneurial is starting point for
the rekindling of entrepreneurial spirit. Organizations not only require identification and
development of right people it also requires critical support mechanism if more
entrepreneurial activity is to be sustainable. Entrepreneurial Orientation Survey (EOS) and
Entrepreneurial Leadership Questionnaire (ELQ) are aimed at helping companies get a
baseline analysis on the people side and organizational support side of entrepreneurship
before they rush into anything. There are 7 F’s introduced by author which are basis for EOS.
If company wants to be high in entrepreneurial orientation company must score well on the 7
F’s. They are:
1. FAST
2. FLEXIBLE
3. FOCUSED
4. FRIENDLY
5. FRUGAL
6. FAR-REACHING
7. FUTURISTIC
At the end better Leadership, better management, and increased entrepreneurial activity only
come from people agreeing and working together in the creative process that is the heart of
the entrepreneurial spirit.
Overall in the book “LEAD LIKE AN ENTREPRENUR” language and selection of the
words were good and mostly familiar. Very good real daily life examples were quoted to
simplify the concepts which made it very easy to understand the concept practicality. Some
of the very useful skills of the leadership are highlighted and explained. Individuals, students,
managers, CEO’s, can very easily learn to lead like an entrepreneur after reading and
analyzing this book. Neal Thornbe rry gives specific examples of entrepreneurial leaders
within large corporations. Most of these people are individuals that we have not heard of, nor
are they CEO's of large companies. They are for the most part everyday managers that were
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opportunity obsessed and became the catalyst for change within their own respected
companies. For people that work in big corporations this book is eye opening and hard to put
down, as you start to wonder what you can do to change and add value to your organization.
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My Big Idea
By: RACHEAL BRIDGE
ERUM AHSAN
01-11082-028
BBA 6A
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The book I selected is titled “My Big Idea” by Rachel Bridge. This book focuses on 30
entrepreneurs, and reveals how these people achieved success. The author writes in detail
about entrepreneurial qualities that helped each entrepreneur develop their business. The
book is very entertaining and enticing as every chapter is about a different entrepreneur and
the information is clear and precise. Bridge focuses on the lives of each of the entrepreneur
and explains in detail how each of them structured their big idea. Book begins by stating that
it easier for people to think of hopeless ideas. The secret to finding potential ideas is to see
each problem as an opportunity. The author emphasizes on the point that people should often
ask themselves if there is a better way to find solution to problems. The best ideas are usually
the simplest ones, the ones that make you think “Why didn’t I think of that.” Post-it note and
the cardboard sleeves around a cup of coffee are both examples of such ideas. For an idea to
be practicable there should be a market for the product or service. It also helps to identify
gaps in the market and then develop a product or service that completes the gaps and the
potential customers needs. And the best way of doing this is to think about what other
people’s lives would be like without your idea. Speed is of the essence; it is important to
make sure these ideas are carried before somebody else thinks of it. The point of this book is
to get an ordinary individual to develop a continual flow of ideas by viewing the world as a
series of unsolved problems. Even though the book covers 30 different entrepreneurs that
have different personalities, interests and lifestyles, there are similar characteristics which
help define them to be the successful entrepreneurs they are today.
Throughout the book Bridge focuses on the traits embodied by the entrepreneurs, such as
confidence and determination. The second chapter, details the amount of courage it took for
Judy Craymer to mention her idea of developing a movie script built around the music of the
infamous band Abba. She says that “…you have to make people believe in what you are
doing.” It is necessary for every entrepreneur to be passionate about what they are doing in
order for people to believe in them and in their ideas. Stephen Waring, the founder of Green
Thumb quotes “It helps to have a strong personal belief in your own abilities and not to feel
insecure.” Waring’s challenge was to start an industry in the United Kingdom from scratch.
Even as a high achiever in school, Waring didn’t go to university because he believed that he
didn’t need qualifications to take advantage of business opportunities. Thus, through the
process of trial and error, Warring started a lawn treatment company. These people represent
the fact that in order to pursue one’s idea it is important to be confident.
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Entrepreneurs also believe that they are the masters of their own fate; they have an internal
locus of control. They believe that they have control over their destiny and don’t rely on
factors such as luck. Will King is the creator of the company King of Shaves, which was a
shaving oil developed for men with sensitive skin. King believes that his secret to success
was to be able to create a product that people actually need. He says “You have to
demonstrate that there is a reason for it in people’s lives. Why isn’t there a five-wheeled
car?” Deirdre Bounds, is another entrepreneur with high internal locus of control. She says
“I remember deciding that I was going to succeed in everything I did, and that the only
person who could change things was me.” Bounds came up with the concept of creating an
online TEFL (Teaching English Foreign Language) course. She believed that she had control
of her life and when she made mistakes that would be an opportunity for her to grow and
learn.
David Sanger, says coming up with a creative idea is just a matter of keeping your eyes
open. People usually don’t just come up with ideas such as mobile phones. Instead they just
tweak or improve something that has been around us. It is important to look at the simplest
things as they turn out to be good ideas. Anthony Ward Thomas is the owner of Ward
Thomas Removal, which is a company that is responsible for moving furniture. He
recognized the problem with traditional firms was that they were employing the wrong type
of people in the business. Thomas says that his business secret was to take an already existing
idea and improve it. He believes that people make their biggest mistake when they try to
reinvent the wheel. He says “Take a simple business idea and apply a different angle.”
Pacific Directs owner Lara Morgan reveals her secret to success- continually learning. “It is
of huge value if you have no pride and no shame and are willing to say look I don’t know
what I am doing, could you help?” It is important to keep learning about the field you are in,
and it is also important to put aside your ego and be willing to ask for help. Most
entrepreneurs learn about what the market needs are by asking prospective customer’s about
their products. As an entrepreneur you will learn the most by talking to a prospective
customer, and they can help you determine if an idea is good or bad. Deirdre Bonds, founder
of I to I, says that she gets most of her ideas while talking to strangers. This just comes to
show how important it is for an entrepreneur to keep interacting and socializing with others to
create a free flow of ideas.
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“You will never get rich working for someone else” is the personal philosophy of Karen
Darby who is the owner of the organization known as simply switch, which is a telephone
based service that allows people to switch suppliers. Entrepreneurs often feel unhappy when
they are forced to work for someone else. They feel as if they are not in control, or that they
don’t have the complete freedom that they want. Nick Austin, the creator of Vivid
Imaginations which is now the Britain’s largest toy company, was tired of making money for
other people. Working for other people can make entrepreneurs feel restricted and create
limitations and constrict them.
“My Big Idea” is a book that glorifies the ideas of 30 entrepreneurs and goes into detail
about how an ordinary individual can come up with such ideas and turn their life around. It
focuses on the characteristics that people need to develop in order to achieve their desired
goals. The best part about this book is that it emphasizes on the fact that people can build
upon these qualities and embody them. This book is also a good read as it is interesting, by
providing a story of 30 entrepreneurs and it prevents the reader form getting bored. The only
negative aspect of this book is that the author chose many entrepreneurs to write about. After
a few chapters the traits represented by the entrepreneurs became very repetitive. I would
suggest this book to everyone as such topics are interesting for most people. The reader
becomes curious and is determined to learn how it was possible for most of these people to
achieve such success. This book is a precise and detailed version of the entrepreneur’s lives
that inspires others to act on ideas that they must have had.
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ENTREPRENEURSHIP: IDEAS IN ACTION
By: GREENE
FAWAD AHMED
01-111082-032
BBA 6A
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Entrepreneurship: An idea in action goes step-by-step through the entire process of starting
and running a business. Creating a business plan is covered extensively, and a business plan
project is part of every chapter. Highlights of real entrepreneurs' pitfalls present the realities
of entrepreneurial challenges.
This book comprises of all together 13 steps of an entire process of starting and running a
business. These steps are categorized as the 13 chapters of the book. These will be discussed
in the book in steps through which a firm goes through the chapters are:
1. Should you become an entrepreneur
2. Entrepreneurship in a market economy
3. Develop a business plan
4. Identify and meet a market need
5. Market your business
6. Distribution promotion and selling
7. Select a type of ownership
8. Locate and set up your business
9. Plan and track your finances
10. Operations management
11. Human resource management
12. Risk management
13. Management for the future
The first step is basically should you or should you not become an entrepreneur? This is
basically elaborated by first identifying what basically is entrepreneurship. The main
definition that it is the process of running a business of one`s own. in it you have to
identify your business , weather it falls under the entrepreneurial businesses or not what
are the main opportunities and how well you recognize them. Then is analyzing weather
your business will succeed or fail. You have to identify weather entrepreneurship is good
for you or not.
Is it the right path or not by analyzing the characteristics of successful entrepreneurs and the
characteristics of good team workers. After this the turn of exploring ideas and opportunity
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comes looking for new ideas, investigating opportunities and setting your goals according to
it the last thing in checking whether you should become an entrepreneur or not is problem
solving for entrepreneurs. The best method for problem solving is claimed to be the by using
solve the problem process. This will enhance the problem solving skills as well.
The second step is entrepreneurs in the market economy. This chapter basically focuses on
the analysis of the economic conditions of the market and how the decisions are altered by
them. All entrepreneurs have to satisfy their needs and wants so in order to do that they need
to make profit which can only be achieved by making economical decisions while
considering the current economy of the market. The prevailing conditions of market
regarding the price factors , the inflation, the growth factors.
The next step is to develop a business plan. In order to do that you should know the
importance of the business plan. It is very important to have a business plan because it is
basically the foundation of the whole business that you have and if you don’t have a business
plan then the business cannot have a direction towards its goals.. A business plan is a
summary of the business owners operational, financial and marketing plans as well as a
detailed description of the backgrounds of the key personnel that will form the management
team of the proposed business. The business plan should be very comprehensive in scope and
should include a mission statement (the purpose of the company), the goals and objectives of
the business, as well as some financial information. Business plan should include a detailed
description of the proposed (or actual) business. This portion of the business plan should
include the type of business form used (partnership, corporation etc.) as well as the type of
business (merchandising, manufacturing service, franchise or other). A statement of the
potential opportunities for growth should be included.
The fourth step is to identify and meet a market need. This step includes identifying the
market, researching the market and knowing your competition. According to the business
plan you choose the appropriate market for you business where you know that your business
will flourish, keeping in view the pros and cons of the market which you will have to bare.
Researching the market. Market research is any organized effort to gather information about
markets or customers. It is a very important component of business strategy. Market Research
is the key factor to get advantage over competitors. Market research provides important
information to ide ntify and analyze the market need, market size and competition. Few
techniques of market research are
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• Customer analysis
• Choice modeling
• Competitor analysis
• Risk analysis
• Product research
• Advertising the research
• Marketing mix modeling
The next step is market your business, this chapter includes developing the marking plan.
Your marketing plan is an essential part of your overall business plan. When you start a
business or introduce new products or concepts, the plan will help you:
• Assess the needs of your customers and develop a product or service to meet those
needs.
• Communicate the attributes of the product or service to the customer.
• Establish distribution channels to get the products/services to the customer.
Before writing a market plan you go to do some research on such factors which include,
Executive summary - What is my overall plan? Identify yourself - Who am I and what are my
values? Describe the product or service - What need do I meet? Identify your target market -
Who are my customers? Know your competitor - Who else can woo my customers? Detail
your distribution and delivery channels - How will I deliver my product to my customers?
Group your marketing activities - How will my message reach potential customers? Outline
how to overcome potential marketing challenges - What can I do about them? Indicate your
price or pricing strategy - How much should I charge? Project where you will be in one,
three, and five years - What are my long-term goals? Provide a date at which to review your
marketing plan - When will I review my plan?
The sixth step is distribution promotion and selling. This includes the distribution of your
markets and the promotion strategies. It basically includes the promotion mix and the main
elements of the promotion mix
• Personal Selling.
• Sales Promotion.
• Public Relations.
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• Direct Mail.
• Trade Fairs and Exhibitions.
• Advertising.
• Sponsorship.
The next step which is the seventh step is basically selecting the type of business and
ownership. This includes the type of business you are getting in whether it is a joint venture
or a new business or a partnership. This identifies what your business is formally is and what
legal rules apply on it. Different types of businesses have different legal implications on them
depending upon the nature of the core business. The chosen form of business should be legal
according to the governmental laws and consideration of legal issues and business ownership
is of high importance.
The eighth step is to locate and set up your business. To start your business you have to find a
perfect location for your business where you think is the best flourishing physical location of
your business. Then you have to design the main physical appearance of your business,
considering the growth factor. Another thing that should be kept in mind is purchasing of the
necessary equipment which includes resources like office equipment, supplies inventory etc.
The ninth step is to plan and track your finances. Planning and keeping track of finances can
be done by a six step process
1. Understand your new reality
2. Recheck your financial plan
3. Adjust your risk profile
4. Seek lower investment fees
5. Protect yourself from inflation
6. Evaluate longevity protection
The next turn is of the tenth step which is operations management. Operations manage ment
includes of three basic contents operating procedures, financial management and the
inventory management.
Eleventh step is basically the human resource management. the primary functions of human
resource management are:
• Equal employment opportunity
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• Staffing (recruitment and selection)
• Compensation and benefits
• Employee and labor relations
• Health, safety, and security
• Training and development
This step basically compromises of the fulfillment of all these primary functions of human
resource management. For example identifying your staffing needs , staff your business and
direct and control the human resource.
The second last step is the most important step because it is what describes an entrepreneur
and this step is risk management. Risk taking is basically the willingness to peruse
opportunities that have a reasonable likelihood of producing losses or significant performance
discrepancies. This step defines which risks are to be taken, is the risk worth taking or not.
What risk is there for your market and what risks your business will have to face over time?
The last step is the management for the future. This defines the future growth strategies of the
business, in it are defined the strategies that should be adopted in order to achieve future
goals and for the achievement of success. It also analyzes the ethical and social issues i.e. the
social and ethical responsibilities which are of the organization. The last thing is the
identification of global trends and the future opportunities.
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THE ART OF DEAL
B y: DONALD TRUMP
FAZ ZAEEM
01-211082-038
BBA 6A
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Trump starts his book by giving us a view of his typical week, i.e. lots of telephone calls. He
speaks with his investment broker on acquiring stock, he speaks with the commissioner of the
USFL, he calls a few people to express interest in their property, and the list goes on. Also
telling from this section is whom he'll take calls from. He takes a call from his son, he calls
his attorney, he calls his accountant, and, still, the list goes on.
First he mainly tells you how a normal day of Trump the man is spent. How he goes about
things in his daily routine. How he starts it and how he ends it. Discusses matters related to
business, meets up with clients and associates. He travels places and manages himself very
well. He is efficient in doing so and is a man of his words.
Mr. Trump tells you how a deal is done, what constitute a successful deal and things to be
taken care of while making a deal. Following are some significant issues to be looked upon
while making a deal:
• Think big. He is happy while you are not thinking big, because then you won't be a
competitor of his.
• Protect the downside and the upside will take care of itself. He states he is more of
a negative thinker in this regard and in this way protects his capital, or the downside
of a deal.
• Maximize your options. By having more options going into a deal so that in the case
of one failing you can go on to another.
• Know your market. Do not worry too much about what the 'experts' say, but use
your own knowledge and conduct grass roots surveys.
• Use your leverage. It is best to go into a deal with something that the other guy wants
or, better yet, needs.
• Enhance your location. Besides location, work to make it a better location.
• Get the word out. Market your product or service so that people know about you.
• Fight back. Do not let anyone trample on you or abuse you unfairly.
• Deliver the goods. What more do I need to say - deliver the goods!
• Contain the costs. Spend what you have to but do not overpay.
• Have fun. Live life and have some fun.
He also tells about his own learning experiences and how he went about matters in the early
days. He used his knowledge of Finance, Accounting, Mortgage and Money well. He jumped
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into markets that weren’t considered to be friendly and made his mark in them. He defied the
odds and made something big out of possibly nothing. He used his persuasive and
negotiations skills to the fullest to strike deals and made a name for himself in the elite class.
He was a one man army sort of a thing and wanted to make decisions on his own and not let
others influence him in doing so. He used his instincts and mind to his advantage and made
sharp and quick decisions. He wasn’t a big fan of formal business plans and strategies and
thought them to be of less use to him.
Being an entrepreneur is about availing the opportunity at hand and that is exactly what Mr.
Trump tells here. If you don’t avail it, someone else might and the chance goes begging.
Trump also realized that it is the quality of the work rather the quantity which matters. It’s
not the hours you put in but what you do in the hours is what matters the most. He had a thing
for cleanliness and that also stood him well in his management. He wanted his places which
he hired to be clean and well maintained. He thought of presentation to be very important for
a thing to be sold. He used business tricks which he learned from his experience to good use.
Mr. Trump just wanted to get done with the job at hand no matter what. That was by hook or
by crook. He sometimes even employed people with shaky backgrounds but didn’t care as
long as they delivered.
Also he made certain contacts using his father’s name and sources. He was a charmer and
knew how to get things done. He didn’t back out from a challenge when he saw one and took
it as a challenge. He was an excellent negotiator. He took special interest in his projects and
took notice of every single detail. He had learned to be a good manager over the years and
knew how to handle the human capital. He used to talk to his employees on regular
occasions and kept them motivated. He wanted to be the best in whatever he did and quality
was his main objective.
He was a man of innovations and did not believe in written strategies and goals. He
promoted new ideas which were different from the old traditional view of handling stuff. He
appreciated quality where ever he saw it, even if it was someone else’s work that might be
his competition. He did things his way and believed in whatever he did. Stood by his actions
and believed that he was doing right. He didn’t believe in crying over spilt milk and moved
on from the situation and learned whatever he gained from it and applied it in his next
projects.
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According to Mr. Trump gambling should be legalized. The reason for this is that he believes
that deals in which higher risk is involved, there is higher profit. Gambling is all about risk,
luck and your instincts. If one is to engage himself in any project or dea l, he/she must
carefully carry out his plans with planning and good intention.
Budgets and time constraints could only be met if they are well thought out. Being
cooperative and confident about certain situations; one can easily carry tedious procedures
in no time.
Mr. Trump states that ones instinct, risk and competitors are directly related to each other.
You should be able to predict someone’s behavior and act accordingly. You must know the
weaknesses of your opponent and use them for your benefit. Every mistake your opponent
makes is an opportunity for you.
Mr. Trump discusses that one must be good at negotiation skills as they can either make or
break a deal. Negotiation skills vary from situation to situation and one should adopt a
flexible behavioral approach towards any situation thrown. Whenever it comes to negotiation,
setting a price is the first thing you should prioritize. Many deals fail in the end because there
was a dispute over the price. One can save a lot of time if price is discussed first.
Focusing on the task at hand is very important. One must not deviate from the task at hand as
it would result in poor overall performance. Minor problems though sometimes can result in
larger problems but one should not keep his/her entire attention towards these small
problems. An entrepreneur should always be in the look out for lower risk, keeping on mind
the future. Entrepreneurs prefer moderate risk but Mr. Trump states that taking big risks is a
must.
A business does not always bear profits. Mr. Trump states that one should always be
prepared to face loss. It can either be financial or psychological. If you are facing loss in a
certain project or deal you should move your investment into more profitable areas.
Aggressiveness can be an advantage to an entrepreneur. Certain situations require
entrepreneurs to be and take aggressive decisions. For your competitors an aggressive
approach can be really worrying. One way to show your aggressiveness is through the media
which is a strong player when it comes to publicity and money. If finances allow, you can use
the media against your competitors.
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On the other hand expensive strategies to bring down your competitors won’t always work.
You can use low cost, creative and unconventional techniques (guerilla marketing). One
should be in habit of getting things done the hard way as it would help you in getting used to
pressure and tough competition. You should not lose hope and be optimistic about a
comeback.
Mr. Trump throughout this book emphasizes the role of planning and reorganizing. Any task
can be accomplished if you are well prepared. With it he also tells us about the key to
getting a job done “Leadership”. Under the right leadership any project can be steered
towards fruitful results. People would always be present who would hinder your work but
you must adopt a tunnel vision approach towards projects.
One of the toughest business decisions Trump ever made was in 1979, when he gave up his
option on the West Side Yards (approximately 100 acres of land). The easiest business
decision was buying back those acres in 1985.
Mr. Trump states that if you have to sell something, it requires that you have both something
unique to sell and a very aggressive approach to selling it. If you are selling something you
must portray it as majestic and inspiring. One should think out of the box and produce a
product that could become a symbol in the future. One could even focus on a single strong
selling point (Views from the apartments Mr. Trump was going to make). Mr. Trump
believes that one should keep low carrying costs and a person who has low land costs can
charge more reasonable prices to consumers as compared to competitors. Keeping costs low
can give a very strong advantage to a person both in the short and in the long run.
Whe never one has to make a decision, one should consider all the external factors , the stake
holders who have a direct or indirect influence and impact on your decision. E.g. Mr. Trump
had to get clearance from the zoning department and in the process had to face many
challenges including many non friendly gestures from the mayor of New York. Mr. Trump
emphasizes the role of media on a project and that one should try not to let the stakeholders
get the upper hand. Mr. Trump believes that to solve the conflict of interest the key is to find
a mutual interest. He states that “deals work best when each side gets something it wants
from the other”.
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Also the economy of the area in which a project is to be started requires deep study and one
should contribute in the betterment of the economy rather than only taking into account
personal interests (such in the case of NBC one of New York’s pride, which was planning to
re locate from New York because of less space and the local authorities incompetency
however Mr. Trump was ready to make an offer which could cause him a loss of millions of
dollars just to keep NBC in New York). Loss can be of two types, one financial and the other
psychological. The psychological impact of loss can have a long term impact on people.
One must design a project to be self supporting as it is built or else one would risk
everything before making a single dollar in profit. Another important advice Mr. Trump has
given in the chapter is never to sign a letter of intent whenever in the development business
as years could be spent in court trying to get out of a seemingly “non-binding” agreement.
Mr. Trump states that a person can face a lot of opposition but one should be strong and face
all the challenges or else people can take advantage of you and your weaknesses.
At the end of the book Mr. Trump is talking about how certain deals came out. Most of the
deals came out in his favor and in some cases he had to withdraw his decision.
He writes that going into partnerships with friends is a great risk and making choices is a lot
easier when you have to answer only to yourself. He believes that one should conduct his/her
operations in nearby areas. E.g. Mr. Trump preferred Atlantic City over Nevada as it was
closer to New York. Short term investments could be profitable if one plays his/her cards
right. Overall in this book Mr. Trump mentions that you should go with your gut feeling even
if statistics show some other results.
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The Illusions Of Entrepreneurship
By: SCOTT A SHANE
GULMINA SHAUKAT
01-111082-034
BBA 6A
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“The Illusions of Entrepreneurship: The Costly Myths That Entrepreneurs, Investors, and
Policy Makers Live” is written by Scott Shane who is a Professor of Entrepreneurial Studies
at Case Western Reserve University. This book is a very well written book (comprising of 10
chapters) about the myths of entrepreneurship. It is an essential resource for everyone who
has dreamed of starting a new business, for investors in start-ups, for policy makers
attempting to facilitate the formation and survival of new businesses and for researchers
interested in the economic impact of entrepreneurial activity. There are far more
entrepreneurs than most people realize. But the failure rate of new businesses is
disappointingly high, and the economic impact of most of them disappointingly low,
suggesting that enthusiastic would-be entrepreneurs and their investors all too often operate
under a false set of assumptions. In this book Scott Shane debunks popular theories with
research-based answers to questions such as why people start businesses, which industries are
most popular for startups and what are the most common characteristics of the typical
entrepreneur. Scott Shane offers research-based answers to these questions and many others:
• Why do people start businesses?
• What industries are popular for start-up?
• How many jobs do new businesses create?
• How do entrepreneurs finance their start-ups?
• What makes some locations and some countries more entrepreneurial than others?
• What are the characteristics of the typical entrepreneur?
• How well does the typical start-up perform?
• What strategies contribute to the survival and profitability of new businesses over
time?
In this book it is shown why policy makers, entrepreneurs and investors should focus more
attention on high growth, high potential start-ups and less on the new companies than is
currently the case. Scott Shane shares that most entrepreneurs do not engage in due diligence
and writing business plans. And unfortunately, their bad information and over-optimism will
lead them to make poor investment decisions. Shane makes a simple argument: Entrepreneurs
should focus on industry segments that have higher profit and higher potential. He shares
how to identify them. This book shows that the reality of entrepreneurship is decidedly
different from the myths that have come to surround it Scott Shane demolishes the myths and
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in the process provides much-needed guidance to entrepreneurs, investors, and policymakers.
Here are some of the myths he talks about in the book that are quite surprising (which I
quoted directly from the book):
• The typical entrepreneur doesn’t start a business because of a desire to make money,
for the thrill of starting a business, to support their families, or become well known;
the typical entrepreneur starts a business because he doesn’t like working for someone
else.
• Education doesn’t hinder entrepreneurship; getting an education makes people more
likely to start businesses.
• Working for someone else increases the chances that a person will start a business
• It does not take a lot of money to start a business; the typical new business established
in the United States take less than $25K in initial capital.
• Informal investors are a more important source of capital for startups than venture
capitalists.
Shane argues that increasing the rate at which new companies are formed does little for the
economy or job growth; instead, expanding existing businesses would be a more efficient
way to spend time and money.
The author tells some tips for success. Few of them are as follow:
• If you can make it through the early years, your odds of success go way up.
• Pick a favorable industry: agriculture, mining, construction, manufacturing,
wholesale and retail trade and the finance sectors
• Industry is even more important when considering what new businesses will not only
survive, but will grow the fastest. For instance, software companies are 608 times
more likely to be one of the top 500 fastest growing private companies than new
restaurants, with companies that have a patent or trade secret doing the best.
Scott Shane starts off the book by revealing a bleak picture of entrepreneurship in the U.S. I
was surprised to know that America is not as entrepreneurial as i thought it would be. In fact,
the data shown by the author that the proportion of the US population that is starting business
is not growing but possibly shrinking. In fact, the author corroborated data with the US Small
Business Association. On the self-employment rate in the Organization for Economic
Cooperation and Development (OECD) countries, US is the third lowest with countries and
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rank lower than countries you would perceive to be entrepreneurial: Korea, UK, Japan,
Turkey and Italy. The number of new businesses emerging is significantly much higher than
in China as compared to the US based on the Global Entrepreneurship Monitor 2005 report.
In second chapter Scott says that the chances for success are much higher if people choose
the right industry. Some industries have dismal success ratios and people may want to avoid
them.
In third chapter, people don’t get a rosy picture on who becomes an entrepreneur. Scott Shane
states that physiological factors account for much less than demographics like age, race and
gender. Some may view this as a controversial viewpoint.
By reading the book you start to think in new directions. Plenty of the old myths are taken
care of in an elegant way. It is reassuring to read the following paragraph:
“Starting a new business isn’t as quick, painless, linear, collective or all-encompassing a
process as our popular conception suggests. A remarkably small percentage of entrepreneurs
– one third – manage to get business established within seven years of starting the process,
and even then it often takes several years to do so.” (Forth Chapter).
Scott Shane ends the last chapter with criticizing the government’s intervention in the
business field, pushing their own agenda to show the voters that they have “created”
economic growth by actively promoting the establishment of new enterprises.
This book is important not just for clearing our minds of what is incorrect but for
reconsidering our public policy, which is based on the widespread feeling that startups are a
magic bullet that will create a lot of jobs and generate innovation. And after reading his book,
I am convinced he is right. The Illusions of Entrepreneurship is written in an easy to read and
direct style. Besides charts and supporting evidence to explain why a particular myth isn't
valid, all busted myths are summarized at the end of each chapter.
I will like to end this review with a great quote from the conclusion:
“We shouldn’t get rid of the start-ups. Despite the dismal story about the typical start-up
portrayed in this book, getting rid of start-ups isn’t the answer. Entrepreneurship is central to
the success of a capitalist economy.”
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
LATERAL LEADERSHIP
By: ROGER FISHER
HAIDER SHAHID01-111082-036
BBA 6A
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This book basically aims to develop leadership skills in all of us. It emphasizes on the
importance of a cohesive work teams. Even though this book doesn’t have much to do with
entrepreneurship directly, I think it is developing the skills necessary to become an
entrepreneur someday. A good entrepreneur is a good leader as well, you don’t have to be an
assigned leader to become one, leadership and championship arises from even the most
unlikely of sources.
The author first of all emphasizes the importance of personal skills, how we must improve
ourselves as not only a team member but also an individual. The better we are individually
the better we will work when in a group. The writer also suggest 5 elements that are the key
to getting things done, these elements are discussed in more detail in the later chapters.
Next the author describes why “telling” is ineffective and what are the various methods that
can be used to influence others and to get your point of view through without having anyone
feel undermined or offended. If you put your idea forward in the right manner, instead of
facing a line of resistance from your colleagues you will instead get a flurry of ideas which
not only make the co-workers feel like a part of the plan but will also make your idea into a
better and more effective plan.
Next step is the purpose, now the purpose maybe present in the form of the company’s
mission statement etc but do they truly inspire you to work hard? Your purpose needs to be
clearly defined in measureable and attainable. They should be enough to motivate you. You
should define your purpose in terms of distant results initially, that where you want to be after
a certain period of time, a mid-range purpose, that say half way through ill look at what I
have done till now and see how far long and how effectively my purpose is being fulfilled
and finally an immediate objective. You should revise all three set of goals till the point that
they’re totally aligned and start to complement each other and that they inspire and motivate
you with high levels of confidence. Secondly, you should formulate and clarify a purpose that
everyone wishes to achieve together, as a cohesive unit. These goals should be formulated in
collaboration with your colleagues so that everyone is guided by them and they are motivated
by this vision. The purpose should be understandable by all. Finally, the purpose of the
purpose has to be defined, why are we doing this in the first place? Why is it that we are
doing all this hard work? You can do this by asking everyone to help formulate the goals in
the first place, if they help design it, they’ll know the reason why they were being designed in
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the first place. The final step is to ask everyone to derive subsidiary goals, so that the larger
purpose is broken down into smaller and shorter term orientated goals that are achievable.
Once the purpose has been defined, you move onto the thinking part. Once again the writer
has emphasized the point that we have to adjust ourselves before adjusting the lot. Since
everyone thinks differently, we have to learn to take advantage of such a situation, rather than
fighting over the fact that our own thinking is better than the others and being stubborn over
it, we should learn to listen to others, make others listen to us and create an outcome which is
a result of everyone’s combined effort and input.
Learning is an ongoing never ending process, we learn from not only each other but from our
own past mistakes as well. The writer has again emphasized the point that he has been trying
to tell us since the very first page of this book, that we need to fix ourselves before having to
bring everyone aboard with the cohesive unit theory. We have to accept our past mistakes and
we have to listen to others if we are to learn. An integrative thinking process where past
experiences have a high contribution will have a positive outcome.
Most people only work because they have to, that in itself is a big de-motivator and is a big
hurdle between you and success. You have to start to enjoy working if you want to get it
done. You have to engage yourself onto different tasks and different options, sometimes
venture onto the unknown or where your jurisdiction has ended. You should include tasks
that are challenging but attainable. At the end of the day everyone has a personal interest
everywhere, you have to be able to serve those interests to some extent so that everyone is
engaged in the process. With proper collaboration and good communication between
colleagues the results will almost always be positive.
One of the most important parts of team work is feedback; we shouldn’t only judge others
around us but also judge ourselves and let others judge us as well. Feedback isn’t only a
process where you evaluate your peers; there are multiple types of feedbacks with evaluation
only being one type of feedback. Appreciating, advising and evaluating are important factors
of feedback. Giving feedback should be like a casual conversation where you discuss
amongst each other, the good and bad of each and every individual. Feedback may also be
means of coaching individuals, when people realize what they’re doing wrong they start to
rectify those problems and everyone, even they are juniors may act as a coach. But a positive
feedback and support environment is required for this to work out.
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The final step in all this is putting all this together. After we have learnt all the stuff described
above, we put it all to use. Make all of this into a systematic ongoing process where there is a
sense of co-operation and unity amongst you and your colleagues.
So in a nutshell this book teaches us how to develop group cohesiveness which paves the way
to success for not only you and your company but also your colleagues. The author has given
a lot of emphasize on the fact that we ourselves are the first hurdle to cross and he has told us
in great detail as to how we can overcome those issues and make ourselves better team
players, even if you aren’t the leader of a group or a manager. The book comprehensively
defines the 5 main variables (purpose, thinking, learning, engagement and feedback) on every
level and scale.
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Entrepreneurship: values and responsibility
By: LEO RYAN, STEFAN
HAIDER ALI TAHIR
01-111082-035
BBA 6A
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PURPOSE OF THE BOOK:
The main purpose writing this book is to explore the entrepreneurship values &
responsibility. You can term it as an academic forum exploring values and responsibility in
regard to entrepreneurship. As entrepreneurship is not an easy subject to write about it’s a
slippery an amorphous term. It has been used to such excess that it has lost specific meaning.
WHY DID AUTHOR WRITE ON THIS BOOK?
Leo Ryan & Stefan wrote this book to clear & explore more on the definition of
entrepreneurship from different perspectives, to better understand the values and
responsibility in regard to entrepreneurship. The author has also discussed on the religious
impact that has an effect on entrepreneurial decision making and in last part author discussed
entrepreneurship in action.
THEME OF THE BOOK : this book basically is based on three parts
1) PERSPECTIVES ON ENTREPRENEURSHIP:
Part one examines some foundation theories about entrepreneurship, historical definitions,
and contemporary classification of entrepreneurs, the role of ethics & values, the potential for
entrepreneurial society & the challenges.
2) RELIGION & ENTREPRENEURSHIP:
Part two explores the role of religion, culture & personal value formation & how those values
affect entrepreneurial decision making.
3) ENTREPRENEURSHIP IN ACTION:
Part three integrates the first two parts with the examples of men and women entrepreneurs
who demonstrate that how value influence their decision making. These men and women are
executives whose values guide their decision making.
INTENDED AUDIENCE:
According to my study of this book I came to jaw down a list of intended audience who can
benefit from this book.
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1) Business students.
2) Large & middle size company owners.
3) Managers of corporate companies.
4) People who want to have knowledge about entrepreneurial activities.
AUTHOR'S STYLE:
Author has used a formal style of communication and has maintained the standards of clarity,
originality, correct use of technical words, conciseness, fullness of development, fluidity. & it
suits the intended target audience.
AFFECT OF BOOK ON ME:
After reading this book I came to know more detailed view of entrepreneurship, the classical
view about it and a bit of history of entrepreneurship. Another interesting thing that I learned
from reading this book was the second part of the book i.e. (Religion & entrepreneurship) it
was interesting to know that how your religious beliefs and your culture, values can have an
effect on your entrepreneurial decision making. I think it was a good learning process which
gave me extra information and views of different corporate entrepreneurs. After reading this
book I had a change of my views on certain things.
ACHIEVEMENT OF GOAL:
According to me yes the author has achieved its goals & has given his message clearly as it is
the latest release of 2011 the information given in the book is also up to date and the target
audience can get a very clear understanding of the topic and content of the book. It is all
because of the hard work and efforts of author that we are able to understand the few aspects
of entrepreneurship which were not discussed in detail before.
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Entrepreneurship
By: LINDA DOKE
HAMZA AHMED KHAN
01-11082-037
BBA 6A
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In the summer of 2008 I set out with my friends with dreams and plans to start an advertising
agency. Our ultimate goal was to make the best ad films and short films in the country one
day. Five months later two us were out, one continued forward with his dream. His manner of
operations caused us to back out. He planned to change and planned big, 30 months later
(today) he is running his father’s construction company. We planned to operate as unit with a
single brain divided in three. We ended up operating as a trio of stupid boys looking at the
business world through their lens of stupidity. I am not saying that it was the mistakes of one
man that cost three boys their dreams. One has to admit responsibility and I admit my
mistakes. The hunger for success helped us push each other, only the direction and the way
was wrong. The question that remains is, what was the one big reason we failed?
The answer is “knowledge”.
This book is taught and used to help students and lecturers teach at different vocational
colleges in South Africa. Linda Doke is a journalist by profession and a trail runner by
passion. What she and co-authors Rob Smorfitt and Ed Hatton have done with this book can
be deemed as the perfect handbook for entrepreneurs.
The book has six chapters comprising of
§ The entrepreneur
§ Entrepreneurial opportunities
§ Customer relations and marketing
§ Basic finances
§ Manage time and work processes
§ A business plan
The authors have covered pretty much everything with the very minor of details ranging from
patents and intellectual properties to business plans. The first two chapters deal with the
entrepreneur himself. Who is an entrepreneur, the basic objectives, task opportunities and all.
They also deal with the research part and recognizing those opportunities.
Chapter Three and Four deal with basic finances and customer relationships. This is the part
where they tell us how to operate customer relationships and how to market our business. The
book has details over surveys and how to find potential customers. How to promote the
business how to satisfy the customers so that it’s easier to retain them.
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Basic finance starts up with the very basic terminologies and methods for pricing and
financing. But as the chapter progresses they dig into the subject of financing a small
business and how to maintain the flow. They also tell on how to do situational analysis and
dhow to take calculated business risks in order to expa nd.
The last two chapters deal with managing time and developing business plans. These are
indeed very important chapters. The book has detailed guidelines over how to develop work
processes and how to manage time for the business. Most business face the problem of
recruitment and placement, this book solves those issues by providing set guidelines and
ideas that have previously worked.
In the last chapter of the book, the authors discuss how to develop a business plan and how to
make sure it works.
The beauty of the book lies in the very basics, where the author discusses everything from the
birth of an idea (be it new or innovative), how to patent it. The author discusses everything
from copyright laws and patent filing keeping South Africa as a focal point, to financial
techniques on how to protect an idea or a plan.
But then comes the part where they discuss the tricky financial terminologies and customer
attraction and retention techniques. How to evaluate an idea, how to evaluate the market and
things as simple as SWOT analysis. Business plans are discussed in deep detail and the
authors made sure to point the most common and lethal mistakes made by entrepreneurs.
This book has structure that works in peculiar fashion to help those who seek it and make it
interesting for those who find the subject dry. The book is loaded to the brim with examples
and activities. One thing I must admit that I learnt from this book is that ‘NANDOS’ is a
south African brand.
The book has easy to understand, every day English. The use of jargon has been omitted on
purpose and the terminologies in the book have been explained very efficiently. The case
studies in the book help students apply theory in real work environment. The study skills
section in the book helps the students to practice their entrepreneurial skills and knowledge.
This book is not something I would recommend to be taken along on 9 hour bus ride, but it is
something that I would recommend for students. Because the content and material is very
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good and up-to-date both for students and for lecturers. It will help the user to be prepared for
the real world and for the final exams.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
Small Giants: COMPANIES THATCHOOSE TO BE GREAT INSTEAD
OF BIG
By: BO BURLINGHAM
HASSAN INTASAR
01-11082-038
BBA 6A
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When you typically think of a "business," the image that comes to mind is an enterprise
existing for the purpose of profit - and the more profit the better. That's what capitalism is all
about, right? The entrepreneurial dream of starting from nothing and making it big - like Ray
Kroc did with McDonald's, or Michael Dell with Dell Computers.
That image makes a 180-degree turn in Bo Burlingham's book "Small Giants". He's identified
and analyzed 14 businesses that "choose to be great instead of big."
Why would a business intentionally try to keep a lid on growth? Quite simply, so it doesn't
lose its soul. Burlingham calls it "mojo."
How does a company get this mojo to begin with? The author notes these common elements
in the companies he profiled:
• Culture of intimacy.
• Close ties to their communities.
• Personal, one-on-one relationships with customers and suppliers.
As a business grows, it becomes harder and harder to keep these elements in place, so
consequently the "Small Giants" chose to keep "bigness" out of their business equation.
Of particular interest was Burlingham's discussion of the "culture of intimacy" fostered in the
Small Giants. He identified three imperatives that are pursued to create it:
1. Articulating, demonstrating, and imbuing the company with a higher purpose. This is not a
"mission statement" - rather, it's a framework that makes the work meaningful for employees,
and "continually reminds them how their contribution matters, and why they should care
about giving their best effort."
2. Reminding people in unexpected ways how much the company cares about them. This
goes beyond the usual perks, awards, and bonuses, by "doing what most companies wouldn't
dream of doing or by using one of the standard tools in an unusual way."
3. Collegiality. Burlingham is referring to "feelings that employees have towards one another,
the mutual trust and respect they feel, the enjoyment they get out of spending time together,
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their willingness to work through any conflicts that might arise, they collective pride in what
they do, and their collective commitment to doing it well."
It's understandable how this would be easier to achieve in smaller scale companies, but does
that mean that it's folly to believe that the culture of intimacy could be achieved in a high
growth, dynamically expanding company?
Burlingham doesn't suggest it's impossible. It's just more difficult.
However, in a business environment where ownership changes hands fairly often and the
private equity or public shareholder "return windows" take over, going for the true "mojo"
Burlingham describes is not possible, because, in his words, if these types of investors choose
to acquire or invest in a company, "...it won't be because (they) share the passion or believe in
the mission (whatever the new management may say). They'll want to own it only if they
think it will improve their financial returns. People will work there mainly because they need
a job. Customers will buy its products and services only if they offer the best value for the
money. The company will be an economic mechanism and little more."
Anything really wrong with that? Burlingham says no, but acknowledges that there are some
people who are looking for more - they want to build companies that "allow them to pursue
their passion and follow their bliss". They want a business that will contribute "something
great and unique to the world."
Burlingham has delivered a great read that takes us deep inside fourteen remarkable
companies that have chosen to march to their own drummer. They include Anchor Brewing,
the original microbrewer; CitiStorage Inc., the premier independent records-storage business;
Clif Bar & Co., maker of organic energy bars and other nutrition foods; Righteous Babe
Records, the record company founded by singer-songwriter Ani DiFranco; Union Square
Hospitality Group, the company of restaurateur Danny Meyer; and Zingerman's Community
of Businesses, including the world-famous Zingerman's Deli of Ann Arbor.
While doing research within these companies, Burlingham outlined The 7 Qualities of Small
Giants that ran through all of the profiled companies:
1. They consciously questioned the usual definitions of success and imagined different
possibilities than the usual ones. This concept had surfaced in the world of professional
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businesses, such as CPAs, physicians, and architects, where people talk about having a
profession rather than a job.
2. The leaders had to overcome enormous pressures to take traditional paths to success. Often
this meant rejecting outside capital and growth opportunities outside their usual geography.
3. Each company has an extraordinarily intimate relationship with its local community in
which it does business.
4. Each company cultivated exceptionally intimate relationships with customers and suppliers
based on personal contact, one-to-one interaction, and mutual commitment on delivering on
promises.
5. They had unusually intimate work places, which were in effect functional little
communities that strove to address a broad range of their employee's needs as human beings,
creating an emotional, spiritual, and social, as well as the economic ones.
6. This sample represents a broad variety of corporate structures and modes of governance
that they have come up with to help them achieve their driving force.
7. The passion that the leaders brought to what the company did-they loved the subject
matter, whether it was music, safety, food, lighting, special effects, or constant torque hinges.
They had deep emotional attachments to their business, and this deep emotional attachment
extended, as mentioned earlier, to employees, vendors, customers, and their community.
Burlingham shows how the leaders of these small giants recognized the full range of choices
they had about the type of company they could create. And he shows how we can all benefit
by questioning the usual definitions of business success. In his new afterward, the author
reflects on the similarities and learning lessons from the small giants he covers in the book
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
Innovation and Entrepreneurship; PRACTICE AND PRINCIPLES
By: PETER F. DRUCKER
HIRA JAVED
01-111082-042
BBA 6A
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Thomas Edison once said that "genius is 1% inspiration and 99% perspiration." Since Edison,
the nineteenth century's most prolific inventor, was also a successful businessman, he is often
regarded as the archetype of the modern entrepreneur. Unfortunately, in spite of Edison's
comment on genius, most of the articles and books devoted to entrepreneurship have tended
to focus on the largely apocryphal "flash of inspiration' rather than on the tremendous amount
of hard work that goes into every successful new enterprise.
If you're looking for a good, theoretical introduction to entrepreneurship with a healthy dose
of business history thrown in, consider the classic, Innovation and Entrepreneurship: Practice
and Principles by management theoretician Peter F. Drucker.
In his latest book, Peter Drucker seeks to reverse this trend and place the emphasis where it is
due. "Innovation and entrepreneurship are," he asserts, 11 purposeful tasks that can [and
should] be organized." They are, in fact, simply part of the effective manager's job. This is
not to deny the importance of inspiration. An open mind, a willingness to exploit change
rather than resist it, the ability to see opportunities where others see threats these are all
important characteristics of successful entrepreneurs. Drucker's premise is that these attitudes
and skills can be cultivated and that the search for innovation can be systematized and
managed.
Entrepreneurial attention is focused on customer values. This is an especially important point
for us in the information industry since we, more than those in other, "low tech" industries,
tend to associate innovation with technical features of our products. Without devaluing the
importance of our advances in areas such as semiconductor technology, communication
systems design, and continuous service architecture, we must recognize that our opportunities
for treating new value for our customers extend far beyond the technical feature our hardware
and software products.
Drucker focuses on large-scale entrepreneurship, e.g., aiming to dominate an industry niche
or entire industry, rather than small business management. Drucker discusses innovation,
which Drucker says is both conceptual and perceptual. Perceptual in that you must go out and
talk with your market to learn from it. Drucker's recurring theme is that good
entrepreneurship is usually market-focused and market-driven.
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Contrary to the belief of many, Drucker says that innovation isn't inspired by a bright idea;
rather it "is organized, systematic, rational work." Innovation can be mastered and integrated
into a company or non-profit organization.
The process, the "business system," by which we create and deliver products and services to
our customers starts with technology, but then relies on the design, manufacturing, marketing,
sales, distribution, and service skills of thousands of NCR people. At every stage, innovation
is possible and, in many cases, "non-technical" innovation can provide the key to success in
the marketplace.
For example, Ray Kroc, the founder of McDonald's, didn't invent the hamburger; he
established a new system of clean, reliable, fast food delivery that created a whole new
industry. Similarly, Henry Ford didn't invent the automobile and J. P. Morgan didn't invent
banking; but they applied their imaginations to the systems by which cars were produced and
money was exchanged.
Drucker first opens our thinking to the many targets of innovation and he then describes a
method by which we can begin to identify and to explore successful new ways of doing
things. If innovation really is the tool of entrepreneurs, then, like a tool, it must be easy to
use. Drucker proposes that there are seven sources of innovative opportunity:
• unexpected events,
• incongruities between the expected and the actual,
• new process requirements,
• unanticipated changes in industry or market structure,
• demographic changes,
• changes in perception, mood, or meaning, and
• New knowledge.
Drucker asserts that the last entry in this list, new knowledge, is the least reliable and least
predictable of them all! This runs counter to conventional wisdom, which holds that
innovators are usually scientists or technicians who extend the frontiers of knowledge.
Drucker argues convincingly that many, many more business successes can be attributed to
innovations in the business process than to a knowledge breakthrough at the product level.
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There is a great deal of practical advice for NCR managers in this, the latest book from a man
who is widely considered the father of modern management. While many of the ideas are not
new, the structure into which Peter Drucker places them transforms them from a collection of
interesting thoughts into an effective management tool. The responsibility that we all share
for changing the shape of our business and delivering more value to our customers can no
longer be denied or underestimated.
Drucker gives us guidelines for identifying innovative opportunity. For example, unexpected
successes or unexpected failures within an industry often point to opportunity. Drucker also
suggests that innovative opportunity exists where there is "an internal incongruity within the
rhythm or the logic of a process" or a process need.
As a great example, Drucker tells us the story of William Conner, a salesman to the medical
industry who decided he wanted to start his own company. Conner went out and spoke with
surgeons about the problems and difficulties the surgeons faced.
While talking with surgeons, Conner learned that the process for cataract surgery was
generally routine and easy, except there was one incongruity making the surgery difficult and
unpleasant for physicians. During the surgery, surgeons had to cut one ligament which
involved some risk.
With research Conner learned that there was an enzyme that dissolved this ligament. Conner
also learned that new methods of storage could preserve this enzyme allowing it to be used in
surgery. After patenting his compound, Conner quickly captured a niche market providing his
compound to surgeons performing cataract surgery. No longer did they need to cut the
ligament. They could dissolve it. With process need, the market already exists for the
innovation. Drucker notes this is a relatively low-risk type of entrepreneurship.
While process need is a great area of entrepreneurial innovation, Drucker also suggests
demographics may provide opportunities. I'm more dubious of this. Even though we may
know how the population will change in ten years, capitalizing on this change isn't easy.
Further, most entrepreneurs already tend to be focused on a particular industry or market and
large-scale demographic changes wouldn't induce them to change their company's focus.
Plus, there are entrepreneurial opportunities even in declining industries.
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Sometimes, there is a dissonance between reality and the perception of reality in an industry.
This may offer innovative opportunities, according to Drucker.
For example, Drucker mentions the evolution of the ship container industry. While
established shipping companies focused on cutting transit time and cost by making ocean-
going ships faster and more cost effective, this really wasn't the key. Ships were already very
efficient in transit.
Rather, the real problem with the shipping industry was the loading and unloading of cargo,
which kept ships in port and tied up valuable harbor space. When the shipping container was
developed, it could be pre-loaded on land before the ship arrived. The pre-loaded container
could then quickly be loaded onto the ship when the ship arrived in port. This made ocean
transit much more cost effective and efficient. Drucker notes that the big cost of ocean transit
was having ships held up in port, effectively tying up a capital asset without being able to
utilize its full earnings capability.
Drucker discusses entrepreneurial management, claiming three keys to building a successful
new organization are
• having a market focus
• financial foresight, i.e., cash flow budgeting and planning for capital needs
• assembling a top management team
Other topics covered in Innovation and Entrepreneurship include creative imitation,
entrepreneurial judo, and filling a specialized, ecological niche. Peter Drucker's Innovation
and Entrepreneurship provides great insight into seeking entrepreneurial opportunities
SHORT SUMMARY:
INNOVATION AND ENTREPRENEURSHIP is divided into three main sections: “The
Practice of Innovation,” “The Practice of Entrepreneurship,” and “Entrepreneurial
Strategies.” The introduction describes innovation and entrepreneurs in relation to the
economy; the conclusion describes them in relation to society.
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In Part 1 , Drucker defines innovation as a means by which entrepreneurs may exploit change
in order to create new service and business opportunities. Entrepreneurial enterprises by their
nature create a market niche and fill a consumer need. These enterprises include small
businesses, large enterprises, and non business service institutions. Sources for innovative
opportunities in enterprises include new knowle dge (scientific and non-scientific) and
changes in industry structure, demographics, and perceptions. Drucker’s principles of
innovation require analysis of opportunities, receptivity to new opportunities, starting small,
looking to the simple, and achievement of leadership.
Part 2 focuses on managerial strategies for the new venture, the existing business, and the
public service institution. All organizations must acquire entrepreneurial competence to keep
pace with changes in economy and society. Leaders in the three types of organizations must
become skilled in entrepreneurial management.
Part 3 examines practices and policies that entrepreneurs should follow in the marketplace.
Drucker’s strategies involve aiming for leadership and/or dominance of a new market or
existing market, finding and occupying a specialized niche, and changing the economic
characteristics of a product, market, or industry.
In concluding, Drucker stresses the need for innovation and entrepreneurship in society. To
obtain this, entrepreneurial executives must make innovation and entrepreneurship “a normal,
ongoing, everyday activity,
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THE INTENTIONAL ENTREPRENEUR
By: DAVID L. BODDZ
HIRA HABIB KHAN
01-11082-040
BBA 6A
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The book written and edited by David L. Bodde is ideal because it is guided by the view that
entrepreneurship is a behavioral skill, and that we benefit most from opportunities to practice
the behaviors and thinking of successful entrepreneurs. Written with an appreciation and
understanding for technology by an accomplished engineer, who went far beyond the practice
of engineering during his life, it relates to how technical ideas only succeed when they are
merged with an even more important understanding of the market and customer needs. The
book emphasizes that success is driven more by understanding markets, customer
development, and timing than the technology itself.
It introduces you to Kevin Bolin, founder of EnerTech Environmental and Maurice
Gunderson co-founder (with Nancy Floyd) of Nth Power Technologies in the first chapter
that is ‘a tale of two entrepreneurs’. Their stories are woven throughout the book so you
become familiar with them and develop empathy for the way they respond to the challenges
they face. As you progress through the chapters of the book, you continue to reflect on these
stories, and ask yourself how well the behaviors practiced by the protagonists mesh with your
own interests and character.
The book covers a wide range of topics related to entrepreneurship and its different aspects.
For example, it tells about the creation of opportunity and how it has been grabbed. David L.
Bodde touched upon a very important part which is the need for entrepreneurial innovation
and the competition and competitive advantage that firms have because of technology. It
focuses on the opportunities to creating lasting value from technology and build the new
economy of knowledge of the physical world enabled by advances in science and technology.
The book takes you towards the process of creating economic value with technology, both as
an independent entrepreneur or as part of a team from an established company. This book can
easily improve your chances for success. It makes you learn the basics of entrepreneurship
within the context of the unique disadvantages and challenges posed by advanced technology.
It helps you Gain skills in the analysis of interesting business cases that continue throughout
the book and build interest and build understanding as new subjects are addressed. Secondly
the author has a unique ability to communicate concisely and persuasively and provide
interesting examples to illustrate key points. It helps develop sufficient understanding and
insight to prepare a business model for an independent venture you might actually like to start
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or for a venture launched from an existing enterprise that you might like to lead. One
important aspect I have learned after reading this book is that it is quite unique because it is
so down to earth and interesting.
There have been many topics which have been covered by this book and some of them may
take you towards creating effective market value from technology. Bodde the author of the
book covers Technology cycles, marketing strategy, intellectual property protection, and
financing of high growth businesses. He also indicates on how to quickly scrap a business
model and adopt a new one if the market so dictates. It tells us how management teams work
and how they must have knowledge base appropriate to the purpose of the enterprise. The
book also tells us a bit about the concept of intrapreneuring from within an existing business.
The book deals with defining what technologists need to know to turn invention into product.
In particular, Bodde says that such ventures must include market insight, a business model
that combines both technology and market knowledge, and an effective organization.
He finishes the book with a discussion of how the business landscape is changing. He
illuminates a complex area of our economic system that is usually leaned through experiences
rather than in the classroom. This book brings principles and structure to the subject of how
to bring a new idea or technology into the competitive marketplace and succeed. The
experience that the book relates to shows the value of team organization, energy, enthusiasm,
and persistence. They show the overriding importance of considering what is to be needed in
the future world as it moves dynamically forward. The book focuses on the audience it tends
to serve that is ‘people with great ideas but not necessarily great business sense’. We've all
seen the graveyard of great ideas ruined by bad business decisions. For example, the inventor
who has a single great idea makes a popular product and then is beaten by a competitor with
an even better idea. So the book spends a fair amount of time discussing the service concept
of technology and I quote “you're not just creating a better widget but a bundle of services
that unlocks the true value of the widget and gives you a chance to evolve with the market”.
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FUNDAMENTALS OF ENTREPRENEURSHIP
By: HITESH S. VIRAMGAMI
JAMAL RAZA01-111082-051
BBA 6A
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The book Fundamentals of Entrepreneurship is a master piece of Hiteshs S.Viramgami. It
consist of 13 chapters based on entrepreneurial activities. I will give a brief description, an
overall summery of what the author tells us about in each chapter;
Chapter 1: This is an introduction about entrepreneurs and entrepreneurial activities. An
entrepreneur is a person who has specific skills, ability, knowledge, awareness and self
confidence who bears the risk of operating a business in the face of uncertainty about the
future condition. In this chapter author has briefly defined characteristic of entrepreneurs,
definition of entrepreneurship and relation of different terms with entrepreneurship. Author
also has explained theories if entrepreneurship and the factors br inging the change. Chapter 2
author has briefly described the various types of business organization and legal
requirements. The core of the chapter is based on different types of business and advantages
and disadvantages related. He also explained the laws or act faced by all types of businesses.
In chapter 3 authors has analyzed different types of business opportunities, their characteristic
and the sources which lead toward particular opportunities. As these opportunities lead to be
the success of an ent repreneur. chapter 4 comprises of analysis of business environment, as
environment of an organization has a great impact on business .author has explained all the
kinds of environment and the factors effecting the environment as it helps an organization to
minimize its strength and minimize its weakness. Chapter 5 comprises of the resources
involved as business capital. Author has explained the importune of the resources on the basis
of two main categories (1).owned funds (2).borrowed funds. Chapter 6 is ba sed on venture
capital which means that output of which is uncertain but which is accompanied by the risk of
danger of loss. Author has explained major characteristic and the steps involved in venture
capital. Chapter 7 is based on innovation that helps an entrepreneur to shift the resources in to
area of higher productivity, in chapter 8 authors has briefly described the characteristic of
innovation and the important areas of innovation where an entrepreneur can be effective.
Chapter 8 consists of achievement theory for entrepreneur which explain how an entrepreneur
can be motivated and on what basis .author has also explained the ways to measure the
performance of entrepreneur. In chapter 9 authors has explained the term project report where
project is a map of an industrial unit and report is prepared after detail study and analysis of
various aspects of a project. in hater 11 author has explained the step to investigate a project
report, element of project report and the importance of project report .chapter 12 comprises of
various roles of an entrepreneur and the effect they have on a organization .author has also
explained role of an entrepreneur on the basis of different fields of a business .chapter 13 is
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based on crisis of entrepreneurship, the term business crises, emerging issues of business
crises and how could an entrepreneur crush the issues to make an organization effective.
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Entrepreneurs Are Made Not Born
By: LIYOD E SHEFSKY
MAHAM FARRUKH CHAUDHRY
01-211082-059
BBA 6A
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The idea behind this book is to provide with an insider's view on entrepreneurship as the
author has combined personal stories of successful entrepreneurs along with his own
experience and theories to give secrets to generating ideas, taking risks, overcom ing the fear
of failure, developing strong work ethics, breaking the rules and boundaries and preparing for
opportunity in advance. The book starts off with a brief understanding of what
entrepreneurship really is and what and who is an entrepreneur.
Entrepreneurs are the prototype of the American persona. They are given as much respect as
any other heroes because of the added dimension they have other than managers.
Entrepreneurs are creators who have the ability to make something from nothing. They are
passionate about their dreams and have the chance of doing what they want. Entrepreneurs
don't' have a boss, instead the y get to be their own boss. so one doesn't have to be a genius,
an MBA , a hot shot or wealthy, as long as you know what you want and want it very much
the is nothing stopping you from becoming an Entrepreneur. An entrepreneur is in easy word
an individual who enters a business in order to change something. It is important for
entrepreneurs to focus on the opportunity, have confidence in their dreams and in the ability
to make it happen along with knowing the risks that every opportunity comes with. Many
entrepreneurs also may have to face rejection of their ideas but the most successful
entrepreneurs were the ones who were immune to the barriers they were confronted with.
All that is needed to become an entrepreneur is to have a dream. It can be all sorts of dreams.
The dreams are not always about being independent but about a particular product or service,
methods of distribution or manufacture, or new form of marketing or selling alongside a long
term goal. It is said that the dream lies in the eye of the beholder not necessarily the creator,
so if it’s not your dreams u can adopt it and it can become your dream as well. sharing a
dream can be very helpful as it helps greatly in making your dreams come true if you have
strategic partners as having strategic partner can bring in required investment, ideas,
decisions and missing components for creating or growing etc. if one doubts whether their
dream is viable or not they can just be onto the safe side by doing something they have good
knowledge of. It is much easier if you follow dreams that you understand because it should
be the dream of your destination.
Lack of confidence or trust or fear of failure has forced many dreamers to tuck away their
dreams in dream drawers. At times some early entrepreneurs have a number of ideas in their
dream drawers which many at times they have saved for the future or for some other time.
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this is when the know that their dream will probably turn out to be somewhat different in
execution than in conception, and that market conditions change and opportunities open up.
Many at time dreams also meet coincidences.
There is a large variety of excuses that many people use and sometimes the apparent excuse
hides the real one but to become a successful entrepreneur your dream need to be more
important than your excuses. Many excuses have even gotten to the levels of conventional
wisdoms.
Interference created in making your entrepreneurial dreams into becoming a reality are
certain myths. The most common is the chauvinist myth that is men are better entrepreneurs
than women which is nothing but a social stereotype. Another myth in different dreams
different genders but this is because both men and women have been raised in separate
environments with their own likes and dislikes and so the point is that gender is not an
impediment but an opportunity. another myth is that women are lightweights but women
should be taken seriously social stereotype are changing and more and more women are
becoming entrepreneurs. Other myths are that usually immigrants and ethnic minorities
become entrepreneurs but the truth is that they start their own personal businesses to get
independence and because they don’t really have proper education or experience etc. Another
one famous myth is that only children born with a silver spoon and children of current
successful entrepreneurs can become entrepreneurs but in reality a great many entrepreneurs
come from families where entrepreneurship was neither practiced nor understood. There are
ways that one can break the myths that could stop you. First when you notice a myth you
must stop and see them for what they are, then separate the myth from its source and think
about it and lastly scrutinize over it. After one overcomes the myths one must overcome the
fear of failure. It is different from excuses or myths, it’s a terror inside you and to master the
fear of failure you must first understand it. But you should know that failing isn’t that bad.
Failure teaches you that failing isn’t fatal. In the long run failing may be better for you. In
today’s world failing in business teaches you what to do and how to succeed and it
strengthens your resista nce to barriers and teaches you how to resolve the hurdles. In short
there is no entrepreneur who has not failed ever and there is no entrepreneur who is a failure.
Besides other reasons for leaving your dreams unfulfilled, trap of the attractive track is the
other most common. The thinking of ‘one bird in the hand is better than two in the bush’
refrains people from risking their settled, permanent and secure jobs.
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Risk, It is all a question of magnitude. Some put more at risk and some not that much.
Entrepreneurship is a win-win situation as entrepreneurs are economically productive, they
create jobs, profit, etc... Entrepreneurs handle risk differently than managers as they put a lot
more at stake.
Every entrepreneur does ‘work’ differently. They all have a different meaning of work. But
what binds all entrepreneurs together is the work ethic. Work ethics are developed very early
in life and usually it is influenced upon oneself. Entrepreneurs do not work for the sake of
working but work towards achieving a goal, usually very specific goals. Entrepreneurs are
usually workaholics but their addiction is to make their dreams come true.
Entrepreneurs break the rules. But before breaking the rules you must understand what the
rule is and why it exists. Breaking the rules seems natural for most entrepreneurs, it is, after
all, a pre requisite if you want to break the shackles of restrictive behavior and build a new
nerve centre for your business.
Failing shouldn’t be the goal but it is necessary to succeed. Obstacles cause failures and
entrepreneurs cannot study their failures but they can study their obstacles. Many
entrepreneurs that the author interviewed said they had never failed. Nevertheless
Entrepreneurs may not be affected by their past failure itself but they are molded but what
they have learnt from how they dealt with past failures.
Next step is preparing for an upcoming opportunity. One must be prepared before the
occasion arises so that any valuable time should not be wasted. The preparatory work
involves increasing your business knowledge and capability so when the opportunity arises
you won’t have to think about preparing for it rather than think of taking maximum
advantage of it. Once fully prepared the entrepreneur has a natural energy and focus that
comes naturally with preparation.
Making the first step is usually the hardest part. You have to decide if you want a partner,
how you want your partner to be, and what kind of partner do you want. Then you define
what types of partnership do want. Then you decide what other help you may need which
would include an accountant, an insurance consultant, a lawyer, financial consultants, and
other specialist consultants. Also one needs to ha ve a good working network while being
beware of false positives, crosschecking is very important, understanding the needs and goals
of fellow professionals etc.
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All entrepreneurs cherish what they have created and can do whatever it takes for it. They
have such a desire that they are even willing to let go of their sleep but it is not a good thing.
Also one must learn to harness your energy rather than fight it.
A pre requisite of entrepreneurship is being a leader. Leaders are different from one another.
They come in all shapes, sizes, persuasions and nationalities. Leaders need to have a realistic
but clear vision of a goal, the means to accomplish it, and a sense of how, once achieved,
success will be measured and rewarded, and the ability to communicate the vision the means
and the measures to others. But do remember leaders are not managers. But anyone comes
across some points while working where they are faced with difficulties regarding other
employees but if you are fair and compassionate all turns out well. All entrepreneurs lead by
different means. There are a few steps to develop your entrepreneurial leadership. Keeping
perspective, knowing why you want to lead, identifying your targets, being clear and fixed,
observing when people listen to you, leveraging your small successes, being tough and not
mean, letting them see your err, showing you are willing to pay your price, creating positive-
sum games, withstanding temptations, studying your opportunities, selecting the right
followers, taking the responsibly for their mistakes, selecting the birds you flock with,
giving, keeping your goal in sight, trusting, communicating to inspire, being a cheerleader,
remembering that others wish they were in your place, and do the windows but not the
details. Entrepreneurs are special people but only after the become entrepreneurs. Clearly
they are made not born. All you need s desire and willingness and you must remember that
becoming an entrepreneur is not an accident, you are always surrounded by opportunities and
you have to fine the switch that lights the way. There is no specific education necessary for
becoming an entrepreneur.
It is important for entrepreneurs to only chase their dreams and not to chase after the
rainbows that may appear along their way because they tend to lead people astray. They must
focus on their dream and they may well find success and money will come in but if they
focus on keeping score they won’t find success. Entrepreneurs don’t do t for money, they do
it to follow their dreams. .
There comes a time when one should realize that its time to stop dreaming. It is difficult to
give up something one becomes so attached to and something that one has worked so hard for
but a good entrepreneur is one who keeps on trying, trying and trying.
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In this book Shefsky defines entrepreneurs as people with dreams. They're not necessarily
smarter than the average bear, or more ambitious. They're not more courageous or bigger
risk-takers.
Unlike the people whom Shefsky interviewed, I've found that quite a few entrepreneurs
decide to pursue that lifestyle after finding that their jobs have been outsourced, downsized,
or otherwise eliminated. They take this opportunity to finally try something they've thought
about for a long time.
Shefsky tells us that entrepreneurs have the passion to pursue the dream that they nurture.
There is nice, inspirational material on the excuses, myths, fears, traps, and risks that can
cause you to "keep your dreams tucked away."
Shefsky points out that there's a big difference between entrepreneurs and workaholics.
Entrepreneurs aren't driven to work. They're self-administering task masters, with a fervent
pursuit of their own dreams
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Good To Be Great
By JIM Collin
MUHAMMAD ALI BAIG
BBA 8
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GOOD TO GREAT
Jim Collin. In the first five chapters of the book it is basically the concepts that Collins and
his research team has learned about the companies who make this remarkable transition from
good to great. According to him they really don’t do it over-night. He compared their success
to that of a flywheel, where a sustained momentum accelerates the energy output. The
companies able to create this flywheel effect had the following characteristics in common:
Level 5 Leadership –Leaders are not charismatic, media types and celebrities. Chances are
you’ve never heard of them. They are humble, self-effacing, humble, shy, reserved and more
concerned about the prosperity of the company than their individual success.
First who…Then What – Using a bus analogy, Collins claims that great companies first get
great people on the bus, then decide where to drive it. According to Collins, the right people
are your most important asset.
Confront the Brutal Facts (Yet Never Lose Faith) – Good-to-Great companies maintain
unwavering faith that they can and will prevail in the end, regardless of the difficulties, and at
the same time have the discipline to confront the most brutal facts of their current reality –
whatever that might be.
The Hedgehog Concept (Simplicity within the Three Circ les) – Good-to-Great companies
do what they can do best (as opposed to what they want to do best), what they are deeply
passionate about, and they focus on what drives their economic engine.
A Culture of Discipline – Having a disciplined culture is the opposite of having a controlled
one. There is no need for hierarchy, bureaucracy, or excessive control.
Technology - None of the Good to Great executives put technology as one of their top 5
drivers. None of them jumped on the .com bandwagon out of panic. All of them took a
cautious approach as to how technology can already help them do what they do well even
better.
The 5th Level Leader – 5th Level Leaders have a combination of strong will and personal
humility. The 5th Level Leader demonstrates an unwavering resolve and sets the standard for
building great companies. In balance, he/she demonstrates a compelling modesty, relies on
inspired standards and channels ambition into the company, and not into the self. The 5th
Level Leader “looks in the mirror, not out the window” when focusing on responsibility and
does just the opposite when apportioning credit for success of the company.
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Collins asked a critical question: Can 5th Level Leadership be taught? Well, yes and no. To
the extent someone is gifted with these innate capabilities, they certainly have a head start.
For any leader it is a matter of degree. It is about growing into the role of a 5th Level
Leadership leader.
It is interesting to note that most 5th Level Leaders do not live extravagant lifestyles. They
have strong family and community relationships. They have healthy and long-term marriages.
Most of them are highly spiritual people who attribute much of their success to good-luck and
God, rather than personal greatness. These men and women are servant leaders, not self-
serving ones.
First Who…Then What
Once you have the right people on the bus, the problem of how to motivate and manage
people largely goes away. The right people don’t need to be tightly managed or fired up; they
will be self-motivated by the inner drive to produce the best results and to be part of creating
something great. (Doesn’t that describe you?) According to Collins “if you have the wrong
people, it doesn’t matter whether you find the right direction; you still won’t have a great
company. Great vision without great people is irrelevant.” Again, I couldn’t agree more.
While Collins doesn’t say it, here is the reason having the right people is so important. Until
recently, business has been largely dominated by how we can do things. How well we can
implement the latest technology. In fact, until recently, the Fast Company magazine motto for
success was “faster, better, cheaper”.
But now things have changed. We are seeing a fundamental shift. It is becoming less about
what we can do than who we can become less about rugged individualism and more about
connectedness. Interestingly, Fast Company’s new mantra is “change, learning, and
leadership”. Notice the fundamental shift from things to people. The reality is, we can no
longer compete based on faster, better, cheaper. We’re already going as fast as we possibly
can, producing better quality than ever and to compete on price is a game only few can win.
Today’s great company competes on the strength of its relationships.
While we may wish it otherwise, the vast majority of people are not going to take 100%
responsibility. In large part, it is because few of them are convinced they can. They are still
stuck with the notion that their life is being controlled by external circumstances. These
workers are not self-disciplined. They want handholding. Then when things don’t go right
they want to blame someone else. Given simple statistics, the reality is the vast majority of
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companies are not capable of “greatness” because of the available workforce talent. This is
also why top talent commands the best opportunities.
There will be a handful of companies where the need to externally motivate is not all that
necessary. However, for the majority of companies, self-motivated individuals will continue
to be a key to productivity.
How people are compensated makes little difference when it comes to productivity. Again,
this makes common sense. Pay someone a fair day’s wage for a fair day’s work, and money
is usually no longer an issue. For those people who are motivated primarily by compensation,
send them to the competition. Their energy is not that of a Level 5 person. They may cause a
short burst in productivity, which is guaranteed to be followed by lots of drama and the
eventual crash. These unnecessary dramas you can best do without. According to Collins “the
purpose of a compensation system should not be to get the right behaviors from the wrong
people, but to get the right people on the bus in the first place, and to keep them there”.
Here are some additional suggestions that Collins makes in order for us to improve our
workforce:
1. Lead with questions, not answers – Level 5 Leaders spend a lot of the time “just trying to
understand”. They have an open door, engage in radical honesty and have non-agenda
meetings. In my terms, they are “present”.
2. Engage in dialogue and debate, not coercion – Any of you that have heard me speak
know one of my favorite subjects is that of dialogue. Dialogue creates a “safe place” for
communicating. According to Collins “all the good-to-great companies had a penchant for
intense dialogue”. Amen. One reason why I preach performance dialogues over performance
evaluations.
3. Conduct autopsies, without blame – Again, in a responsible corporation there is no
blame or justification. What comes its way is simply a learning lesson. Adjustments are
made, and you move on towards a new and higher understanding. As Buckminister Fuller so
aptly stated, “The reward we get for solving one set of problems is yet a greater set of
problems”.
4. Build “red flag” mechanisms – According to Collins, there was no evidence that the
good-to-great companies had more or better information than the comparison companies.
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They had virtually identical access to good information. They key then is in turning the
available information into information “that cannot be ignored”. The ability to wave a red
flag so that you can get someone’s attention is a must. Whether by using surveys, open
agenda meetings, or other mechanisms, your company has to get access to critical
information…and do something with it.
The Hedgehog Concept
According to Collins, the hedgehog concept is a “simple crystalline concept that flows from
deep understanding about the intersection of the following three circles”:
1. What you can be best in the world at,
2. What drives you economic engine, and
3. What you can be passionate about.
A critical point is the “hedgehog concept is not a goal to be the best; it’s a strategy to be the
best, an intention to be the best, a plan to be the best. It is an understanding of what you can
be the best at. The distinction is absolutely critical”. For example, you may want to be the
greatest violin player in the world, but if you don’t have natural talent for music, you’re out
of luck. Make it your hobby, not your profession. Collins points out how companies that stray
outside their core competency pay for it dearly. In contrast, when a great company can no
longer do a certain thing better than someone else, despite the fact that it had been doing it for
a long time, it dropped that line of work. And it never looked back. The question for you
might be “what can we become best in the world at”, or maybe in your city, or industry at.
George Rathmann established a biotechnology company Amgen, creating blood products to
improve the lives of the people suffering through chemotherapy and kidney dialysis. It is
one of the biotechnology companies which are providing consistent growth and profit to the
company and high capital gain to the investors.
The success of the entrepreneur lies behind his creativity and imagination. Lack of
structural functions can cause problems with the customers, cash flows etc. the entrepreneurs
who indulge themselves to create bureaucracy and hierarchy in their business can not achieve
their objectives but Rathmann didn’t follow this rule and created culture of discipline with an
ethic of entrepreneurship.
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Rathmann admired the rules of the company Abbot in which he worked for few years and
now he is successful in his business. According to him Abbot Company believed that when
an entrepreneur sets his goals to accomplish he must revise those goals and make the best
strategies to achieve them for the particular year.
The new appointed financial officer created a new framework called Responsibility
Accounting, in which every employee was responsible for his work and the entrepreneurial
leaders and individuals were free to take the best path to achieve objectives but within the of
a highly developed system. The Abbot company best use the combination of financial
discipline and entrepreneurship and using the creativity formula the company was successful
in launching the new mechanism 3M.
In this paragraph the author has tried to explain that the system of the company is not as
much strict and inflexible as the air traffic system where the traffic control officer has to
follow the rules strictly even in the crucial stages and there was no need of creativity,
freedom to experiment in take of or landing of the aero plane.
The company like City circuit added new technological items while remaining within the
framework of system and beat the general stock market. This was all done by creating a
culture of discipline . According to them the great results can be produced by getting self-
disciplined people to engage their rigor thinking, they then take action within the
framework of consistent system according to Hedgehog Concept.
Every company would like to become “Good to Great” which requires discipline but
unfortunately most of the organizations lack the golden rule “Discipline”. These
organizations could not best select the ways to accomplish the objectives. They lack
discipline to rinse their cottage cheese.
There is a comparison of Wells Fargo to Bank of America. The Wells Fargo was a great
company because it rinse is own cottage cheese by taking away all the comforts from the
Executives suite to rip the old mentality of the bankers. On the other hand, Executive suites in
bank of America were provided with all comforts but when the bank faced loss due to
deregulation it decided to get rid of comforts given to Executives.
Eric Hagen, conducted an analysis on Leadership Culture of companies. He found that the
CEO’s of the companies brought tremendous discipline to their companies due to which they
acquired the great results. But there are two different approaches with respect to discipline.
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Good-to-great companies of Level 5 building an Endure culture of discipline and the
unsubstained comparisons having Level 4 who Personally designed the culture through
Sheer force.
Ray McDonald used Sheer Force of Personality to get the things done in McDonald.
Another example of discipline is in Gault’s Rubbermaid Company where he organized
discipline and due to this discipline culture the company beat the market.
Another example of disciplinarian syndrome is Chrysler under Lee Iacocca. Chrysler played
a role model for his organization and imposed his personality discipline to shape the
organization. He focused more on the improvement of organizational structure and product
and produced spectacular results in industrial history.
But in the second half tenure Chrysler focused less on the business activities in which he
made investments and due to undisciplined diversifications his attention distracted and
because of this reason the company slide away and faced bankruptcy. The above illustrations
show that great results cannot be produced without three circles i.e Endure and personality
culture of discipline and the disciplined action.
Pitney Bowes had a monopoly in the Postage mail market. It earned the excess margin of
gross profit of 80% with no competition. After six years Pitney had 16 competitors . Pitney
reacted towards them and invested a lot in acquisition and joint ventures and in 1973
company lost a large amount of money first time in its history.
Pitney faced a loss due to lack of discipline in 1973. Then Allen and his successor Harvey
created a model of disciplined diversification and he invested a lot in new technologies like
Paragon and due to this Pitney outperformed Coal-cola, 3M, GE etc from 1973-2000.This
illustration shows that when company lacks discipline within three circles it bears loss and
take benefits when regain discipline.
Another classic case is R.J Reynolds whose tobacco company was best in the world for 25
years but after 1964 his and Philip Morris company faced loss due to cancer diagnosed by
doctor report. Then R.J bought Sea Land company but could not succeeded in his business
due to undisciplined culture and finally sold that but Morris on the other hand, redefined his
Hedgehog concept and remain in better position to R.J which disappeared from the market.
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Hedgehog concept was used by Nucor to harness culture and produce steel. His idea was to
remove hierarchical inequality from his organization he translated the simple concept into
disciplined action consistent to that concept. But there are some organizations where concept
of hierarchical inequality exists.
The executives working under Nucor did not receive better benefits. Nucor’s office was just
the size of the small dental practice. When Nucor had a prof itable year, the workers were so
well paid. But when Nucor faced difficulties, everyone from top to bottom suffered. And
pays went down in 1982 during recession.
Nucor took an extraordinary step by mentioning the names of all employees in annual report
through class distinction. In contrast to small sized Nucor’s steel mill Bethlehem steel mill
was 21 storey office and the executives were provided with all benefits. But Bethlehem
declined because the culture was to focus more on negotiating social hierarchy and not on the
customers, competitors etc.
From 1996 to 1999 Nucor generated the higher margins of positive profits while at the same
time Bethlehem loses money. Bethlehem faced a problem of union which Nucor did not due
to aligning workers interests with management interests.
The Good-to-Great companies much used “stop doing” lists. These companies used a
budgeting discipline to decide that which sectors of the company needed more funding and
which needed less and which activities best support the Hedgehog concept and which are
eliminated completely. The example of this concept is Kimberly-Clark paper industry.
It can be seen that all the Good-to-Great companies mentioned above would be succeeded by
“Being right” means using Hedgehog concept and “highly undiversified” means investing
in the business which would be in the three circles of discipline. Getting the right people can
make the better decisions within the framework of the designed system.
A culture of discipline is not just about to act. It is about getting disciplined actions. Sub
stained results require the specification of disciplined culture. Such a system allows duality
interims of adherence to consistent system and also giving freedom and responsibility to
people.
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Chapter 7: Technology Accelerators
In 1999 drugtore.com which was a pharmacy decided to sell its hare to the public and within
4 month its share price increased by 4$ which was great for a company which wasn’t very
large and profitable.
All this was due to the new technology internet in the field of business. You can generate lot
of profit by creating company related to internet even if its non-profitable you can still earn a
lot by selling shares, all you have to do is jut convince people to buy it. Some entrepreneurs
didn’t even build a real company like in 2000 one entrepreneur create a website and some
information with business plan nothing more and he still convinced investors to buy his 1.1
million shares. All this was due to new technology of internet.
Drugstore.com became big competitor for Walgreens due to which Walgreens stock price
suffered up to 40% due to drugstore.com which was using the internet and generating 398
times revenue as compare to 1.4 times of Walgreens.
Walgreen reaction was slow at first because of their approach “crawl, walk and run”. They
decide to experiment with website at first. Lot of debates was going on within a company
whether it’s good or bad. They were confident that they can be a great company on internet
but some internet leaders have few doubts.
Then Walgreens were little faster (walk) and decided to connect internet with their business
like distribution model. At last they enter into their approach ‘run” and build a well-designed
website which really increased their momentum and within a year their stock price nearly
were double after the set back in 1999.
Drugstore really suffered from this and they came down all the way and lost all its initial
value. To become great again they will have figure out how to apply technology to a coherent
concept.
As internet was new technology it came and burst but as other technologies come and goes
same was happening with internet and will happen to other new technologies but all the great
companies have adopted very well like past and will do so in future.
We could predicted Walgreen will adopt internet very well like they did in 80s when they
linked all their stores electronically and send customer data to central source and had a
system called intercom. When Walgreen invested (400$ millions) in intercom in 70s no one
had any idea about it which really improve Walgreen staff, offices so internet was just one
more step. They used technology perfect as a tool not just as new thing.
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Every good company became pioneer in the application of technology who itself varied
greatly.
Like Kroger who was pioneer in the application of bar code scanners and replaced their small
stores into superstores which required huge amount of investment 9$ billion. They used cast
intensive revamping for that throughout 80s and 90s and modernized whole setup.
Other example is Gillette who became pioneer in specially manufacturing technology. They
invested 200$ million in technology and kept it secret as Coco Cola with lot of security
because it was unique and very expensive.
There is a table of companies at page 150-151 who shows their strengths in technology.
Technology As accelerator not creator of momentum
When Jim Johnson became CEO of Fannie Mae he was a consultant Kelvie to move
company ahead with the help of technology audit which improved their ranking within short
time. He and his team created over 300 computer applications and created expert system
which lower their cost and saved $4 billion for home buyers. In the beginning of Fannie in
1981 they were lacking technology which become their key in 90s similarly happens with
other companies like Kroger, Gillette etc. which adopted technology late not at beginning. To
become pioneer it is important to see which technology suits well and without a clear
hedgehog concept technology can’t make company great.
20th century will be remembered as its advancing in the field of technology and science. In
past if Einstein wouldn’t be the way for technology to come it still had to come even maybe 5
or 10 years later but technology had to come. In 1999 time editor instead of Einstein picked
Jeff Bezos as the person of century due to his theme Amazon.com which shows the
importance of technology. Some people think technology will sneak up and know them on
the head which fear them but it’s not true because it is important force of change still any
executive hardly talk about technology even knowing inside out of their technologies in
which they are pioneer which also hailed by media. E-g Nucor who are pioneer in mini-mill
steal manufacturing but when asked their CEO to put technology rank wise in their success
he didn’t put it in top 5 and when asked other members just one of them picked technology as
number one rank. But technology was the main factor of their success which mostly denied
and mostly put it in secondary not primary. Mediocrity failure also happens due to
management failure not due to technology because it is an accelerator not a cause.
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There is not a single company which came down due to technology no matter if it’s R. J.
Reynolds or A&P. Throughout the history early pioneer companies hardly prevail in the end
like VisiCalc no one todays knows what is it. There can be a list of companies who were
pioneer at early but didn’t finish as a great company which shows technology can’t lonely
turn companies into great one as well as can’t destroy it you need to have planning and
thinking that how to use technology.
Examples of USA war against Vietnam even having all latest weapons they failed because
they lacked coherent concept of war on which to attach technology instead they just only
relied on it.
On other hand Vietnam used coherent planning attach with technology such as AK 47 very
well so technology alone don’t hold key success.
Chapter 8: THE FLY WHEEL AND THE DOOM LOOP:
The picture is showing heavy and huge fly wheel. The task is to get the flywheel rotating on
the axle as fast and long as possible. Pushing with great effort, you get the flywheel to inch
forward, moving almost imperceptibly at first. Keep pushing, and the flywheel begins to
move a bit faster, and with continued great effort, you move it around a second rotation. You
keep pushing in a consistent direction till it takes 100 turns.
Each turn of the flywheel builds upon work done earlier, compounding your investment of
effort. The huge heavy disk flies forward, with almost unstoppable momentum. Some pushes
may have been bigger than others, but any single heave -no matter how large-reflects a small
fraction of the entire cumulative effect upon the flywheel.
B U I L D U P A N D B R E A K T H R O U G H
The flywheel image captures the overall feel of what it was like inside the companies as they
went from good to great. No matter how dramatic the end result, the good-to-great
transformations never happened in one fell swoop. Good to great comes about by a
cumulative process. the media does not cover a company until the flywheel is already turning
at a thousand rotations per minute. This entirely skews our perception of how such
transformations happen.
Forbes magazine published an article on Circuit City. It was the first national-level profile
ever published on the company. it was, the first public acknowledgment that Circuit City had
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broken through. The concept of a warehouse showroom style of retailing met with success,
and the company began systematically converting its stereo stores into Circuit City stores. it
transformed the concept into the first-ever Circuit City store. Over the next five years, as it
shifted entirely to this concept, Circuit City generated the highest total return to shareholders
of any company on the New York Stock Exchange.
Graph of a circuit city is given and explained. Ken Iverson and Sam Siege1 began turning the
Nucor flywheel in 1965. For ten years, no one paid any attention, certainly not the financial
press or the other steel companies. By 1975, the year of its transition point on the stock chart,
Nucor had already built its third mini-mill, long established its unique culture of productivity.
Different histories about their articles are also given.
All the major magazines and newspapers jump on the event, writing feature stories-"The
Transformation of Egg to Chicken!". From the chicken's point of view, cracking the egg is
simply one more step in a long chain of steps leading up to that moment. the good-to-great
executives simply could not pinpoint a single key event or moment in time that exemplified
the transition. Frequently, they chafed against the whole idea of allocating points and
prioritizing factors.
The good-to-great companies had no name for their transformation. There was no launch
event, no tag line, and no programmatic feel. According to some executives, they were not
even aware that a major transformation was underway until they were well into it. It was
often more obvious to them after the fact then at the time.
NO M I R A C L E M O M E N T I N GOOD TO GREAT
There were certain representative quotes from the interviews. Some of them are as follow:
Abbott "It wasn't a blinding flash or sudden revelation from above”.
Fannie Mae "There was no one magical event, no one turning point. It was a combination of
things. More of an evolution, though the end results were dramatic."
Kimberly-C lark "I don't think it was done as bluntly as it sounds. These things don't happen
overnight. They grow. The ideas grow and mushroom and come into being.”
An example of the UCLA Bruins basketball dynasty of the 1960s and early 1970s has been
considered. Most basketball fans know that the Bruins won ten NCAA Championships in
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twelve years, at one point assembling a sixty-one-game winning streak, under the legendary
coach John wooden. John wooden has been coach for fifteen years from 1948 to 1963.
Like the Wooden dynasty, lasting transformations from good to great follow a general pattern
of buildup followed by breakthrough. At Circuit City, the buildup stage lasted nine years, at
Nucor ten years, whereas at Gillette it took only five years, at Fannie Mae only three years,
and at Pitney Bowes about two years. But, no matter how short or long it took; every good-
to-great transformation followed the same basic pattern.
NOT J U S T A L U X U R Y OF C I R C U M S T A N C E
It's important to understand that following the buildup-breakthrough flywheel model is not
just a luxury of circumstance. the good-to-great companies followed this model no matter
how dire the short-term circumstances deregulation in the case of Wells Fargo.
The key is to harness the flywheel to manage these short term pressures. The good-to-great
companies were subject to the same short term pressures from the wall street as the
comparison companies. The have the patience and discipline to follow the buildup- break
through flywheel model.
Like Fannie Mae and Abbott, all the good-to-great com panies effectively managed Wall
Street during their buildup-breakthrough years, and they saw no contradiction between the
two. They simply focused on accumulating results, often practicing the time -honored
discipline of under promising and over delivering.
T H E “F L Y W H E E L E F E C T”
The good-to-great companies understood a simple truth: Tremendous power exists in the fact
of continued improvement and the delivery of Results. Point to tangible accomplishments-
however incremental at firsthand show how these steps fit into the context of an overall
concept that will work. The flywheel diagram is also shown in the page number 175. In
which the four points are clearly defined which helps to complete the fly wheel circle. You
can see the diagram.
The good-to-great companies did get incredible commitment and alignment, but never really
spent much time thinking about it. We learnt that under the right conditions, the problems of
commitment and alignment and change just melt away.
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Collins describes two cycles that demonstrate the way that business decisions tend to
accumulate incrementally in either an advantageous or a disadvantageous manner. Both, the
author emphasizes, accrue over time. Despite the popular misperception that business success
or failure often occurs suddenly, Collins asserts that it more typically occurs over the course
of years, and that both only transpire after sufficient positive or negative momentum has been
accrued.
Collins describes the advantageous business cycle that, in some cases, can foster the
transition from Good to Great as "the flywheel effect." By making decisions and taking
actions that reinforce and affirm the company’s "hedgehog" competencies, executives initiate
positive momentum. This, in turn, results in the accumulation of tangible positive outcomes,
which serve to energize and earn the investment and loyalty of the staff. This revitalization of
the team serves to further build momentum. If the cycle continues to repeat in this manner,
the transition from Good to Great is likely to transpire. In contrast, the doom loop is
characterized by reactive decision-making, an overextension into too many diverse areas of
concentration, following short-lived trends, frequent changes in leadership and personnel,
loss of morale, and disappointing results.
Chapter 9: From Good to Great to Build to Last
In the concluding chapter of Good to Great, Collins makes a connection between this book
and his previous work, Built to Last, which represented the findings of a six-year study into
the factors that determined whether a new company would survive in the long-term. First and
foremost, Collins contends that companies need a set of core values in order to achieve the
kind of long-term, sustainable success that may lead to greatness. Companies need to exist for
a higher purpose than mere profit generation in order to transcend the category of merely
good. According to Collins, this purpose does not have to be specific -- even if the shared
values that compel the company toward success are as open-ended as being the best at what
they do and achieving excellence consistently, that may be sufficient as long as the team
members are equally dedicated to the same set of values.
Although many of the conclusions of both of the books overlap, Collins notes that Good to
Great should not be seen as the follow-up to Built to Last, which focuses on sustaining
success in the long-term. Instead, Good to Great actually functions as the prequel to Built to
Last. First, a company should focus on developing the foundation that is necessary to work
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toward greatness. Then, they can begin to apply the principles of longevity that are set forth
in Built to Last.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
Entrepreneurship Theory, Practice and Process
By: Dr. KURATKO
MUHAMMAD HARIS
01-111082-074
BBA 6A
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The author of this book is Dr. Kuratko (known as “DR. K”). Dr. Kuratko is considered a
prominent scholar and national leader in the field of entrepreneurship. He has published more
than 160 articles on aspect of entrepreneurship, new venture development and corporate
entrepreneurship. He has authored 24 books, including the leading entrepreneurship book in
American universities today, Entrepreneurship: theory, process and practice.
This book is attempted to provide a broad perspective on entrepreneurial revolution. The
entrepreneurial revolution that captured our imagination during 1990’s has now permeated
every aspect of business thinking and planning. as exemplified by the “dynasty builders” of
the previous decades such as Sam Walton of Wal-Mart, Fred Smith of FedEx, the
applications of creativity, risk taking, innovation and passion lead the way to economic
development far greater than anyone could imagine. Basically this book is structuring and
illustrating the discipline of entrepreneurship in a manner that is unique and creative as
entrepreneurship itself. This book is to bring together in one place the most significant
resources for exploring the development of new and emerging ventures and to present them
in an exciting, organized and challenging manner.
The book contains four parts and each part contains four chapters. First part introduces the
entrepreneurial mind-set that permeates our twenty-first century. Examining the
entrepreneurial revolution throughout the world, this part reveals the evolvin g nature of
entrepreneurship and its importance to the entire global economy. The book has addressed the
entrepreneurial mind-set that resides within individuals by exploring individual
characteristics as well as the “dark side” of entrepreneurship. This part is also telling us about
the corporate entrepreneurship as an emerging corporate strategy to foster entrepreneurial
innovations within the larger domain. Finally and perhaps most importantly this part has also
focused on social entrepreneurship and ethical perspective that entrepreneurs need to take in
developing a morally conscious approach to business.
Second part tells us about initiating of entrepreneurial ventures. We begin with the pursuit of
ideas and opportunity recognition by examining creativity for individuals and the concept of
innovation. The pathways to enter in a new venture are then explored, whether one is starting
a brand new venture, acquiring an existing firm, or purchasing a franchise. The legal
perspective is discussed through structures of organizations. This book is also presenting
certain legal issues, such as proprietary protections and bankruptcy laws are examined. This
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part concludes with a thorough examination of the sources of capital formation available to
entrepreneurs.
Third part focuses on development of an entrepreneurial plan. This part includes the method
of assessing new ventures and business opportunities, as well as the discussion of the issues
in marketing that affect the preparing, planning and operating of entrepreneurial start-ups.
The financial tools that entrepreneurs need also are discussed. Finally, the development of a
clear and comprehensive business plan is examined.
Fourth part focuses on the growth, valuation and harvest of entrepreneurial ventures. The
need for strategic planning, the challenge of managing entrepreneurial growth, and the global
opportunities available entrepreneurs are all discussed in this part. Then presenting the
valuation process for an entrepreneurial venture, as well as the effective methods for
valuation that need to be considered. Finally told us about the harvesting strategies available
to the entrepreneurial firm.
I have found the eighth edition of this book to be remarkably effective, in both stimulating
interest in entrepreneurship and in equipping students with the basic tools and understanding
they need to be successful in the entrepreneurial realm. The book is well organized and
establishes a foundational basis for theoretical concepts of entrepreneurship prior to moving
onto application and the development of practical skill sets necessary to actually start a new
business. Additionally, the book is filled with contemporary examples of real startup
anecdotes and commonplace business issues that make the book highly releva nt and
intriguing to students in building a bridge from the class room to the real world.
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The Successful Entrepreneur’s Guidebook
By: COLLIN BARROW, ROBERT BROWN AND LIZ CLARKE
MUSA KHAN AFRIDI
01-11082-077
BBA 6A
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To be honest when I was first told that out entrepreneurship cour se would consist of a book
review I did not feel the least bit motivated to have to pick up and read an extra book related
to an academic course.
The reason for this was mostly due to the fact that having done a similar assignment in the
previous semester the task seemed dull and would not be able to hold my interest. So when I
had to shortlist my choice of books for the task I did so with a feeling of reluctance.
A familiar name
I tried to choose the smallest possible book, but a certain name caught my eye. The name was
Colin Barrow. I recognized the name because he had written a book on economics I had
studied for my economics A’ Levels Examinations. It was my favorite subject and the book
had done it justice.
So I added “the successful entrepreneur’s guidebook” to the shortlist even though it was quite
daunting in terms of size. Picking up the book I skimmed through the pages and noticed that
it had more diagrams and examples tha n actual text.
Never a fan of text books, this was a good sign and I picked up the book again with a
renewed sense of interest. Reading the one page ‘About this book’ page that greeted me I felt
I had already read the entire 324 pages.
The section had a brief yet comprehensive overview of the three main sections the book was
divided into; which were ‘Where are we now?’, ‘Where are we going?’ and ‘How will we get
there?’ Pretty much the three main stages an entrepreneur has to go through.
An early scare
After leafing through the introduction which did not hold my interest and was more of a
general overview on the field of entrepreneurship, I was worried the rest of the book might
follow in the same vein of monotony. Luckily enough that was not the case and the tone of
the book shifted from formal to a more relaxed and open form.
The ‘Where are we now?’ section of the book consisted of many smaller sections each
continuing where the previous left off. I found myself actually intrigued by some of the
many, many examples that followed every theoretical section, and was looking more forward
to how the theory had been put into practice by real people in real world situations.
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The section did a pretty decent job of explaining how one can get a sense of where one’s
business is in terms of room for growth, any weaknesses or strengths that needed work on or
enhanced as well as identifying opportunities and threats.
Another thing that bothered me initially was the amount of assignments littered across the
textbook. By the 53rd page there had been a total of five assignments the book had suggested
for the reader’s benefit. At first glance they seemed pointless yet it turns out they required no
more than a few minutes and were mostly applied rather than theoretical.
While no student or reader would like extra work on top of what was already required, I got
the sense that the assignments were just there as short exercises rather than heavy duty
assignments as the heading seemed to suggest.
Learning to think like an entrepreneur
One is constantly told how an entrepreneur thinks, yet the description and explanation is
mostly generalized and brief, it gets the job done but one finds it hard to apply when it comes
to being specific.
The book again did a good job explaining in detail (backed up with real world examples) the
process of deciding where to take the company after assessing the firm’s current situation.
The last section of the book dealt with the “How will we get there?” aspect of the
entrepreneurship cycle. By now any reader would have gotten into the flow of the book and
know what to expect.
Yet here it seemed a bit dragged on, mostly because some of the things suggested were either
too vague or too general. I felt that this part of the book was based more on the aut hor’s own
opinions on the subject, more than the actual theory.
While this may seem a good thing, the previous two sections seemed to strike a balance
between the two factors and were a more interesting read. This bit however, seemed more
like a lecture rather than a lesson.
By the time I’d read through the book I had mixed feelings. Firstly the book was a textbook,
it tried to do things different but at the end of the day it dealt with theory.
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Secondly the way the book was compiled and presented seem intuitive at first but by the end
of the read, the text seemed too crammed together and the topics seemed to mix with either at
times restricting the flow.
There were plenty of examples throughout the book and at times it seemed that some were
just put there to fill the space rather than teach something. Though they were rare not every
example seemed relevant.
On the flip side however, it was a more applied read than most other books, something that
Collin Barrow seems to have in nearly all his books. That took the sting out of it being a
textbook to such an extent that it was more than just a little bearable. In fact it was
interesting.
The overall flow of the book was very smooth and one felt that he was on a kind of
entrepreneurial journey rather than an academic course.
Overall “the successful entrepreneur’s guidebook” did an admirable job of trying to be
different from one’s standard text book and is a good option if one wishes to read up a little
extra on the subject with practical real world applied examples, rather than just theory.
To be honest I will not be picking up this book again if it was up to me, but if I ever had to
use a book for reference in the future this would be top of the list.
REVIEW OF BOOKS ON ENTREPRENEURSHIP.
THE ENTREPRENEUR NEXT DOOR
By: JEFFREY GITOMER
NOOR UL HAYA
01-211082-100
BBA 6A
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The idea of having your own business and being your own boss sounds like a fantasy come
true. Unfortunately, although many individuals have the dream, not everyone actually follows
through on entrepreneurship. Furthermore, off those people who do start their own
businesses, many fail within the first three years simply because the entrepreneur doesn’t
have the skills, the know -how, or the right personality to do the job at hand. The Entrepreneur
Next Door primarily looks at personality types. The book id entifies seven different
personality types: Trailblazers, Go-Getters, Managers, Motivators, Authorities, Collaborators,
and Diplomats. These groupings are based upon levels of dominance, sociability, relaxation,
and compliance. The first four personalities in this list are labeled generalists and tend to be
natural entrepreneurs while the final three categories include specialists that tend to be more
successful when they find a particular entrepreneur opportunity that matches their area of
expertise. I found these personality categories very interesting and helpful. At first, it didn’t
seem like the category closest to my personality actually suited me. However, after going
through the chapters on how each personality type leads, learns, sells, and what tic ks them
off, I realized that the information was quite insightful and useful in my planning and
strategies.
Purchasers of the book are invited to complete a personality test. Test takers are determined
to have one of seven different personality types. Four are more Generalist, big picture, more
strategic in their thinking and orientation and three are more Specialists, more careful, by the
book, more tactical with a well-defined area of expertise. The Generalist is referred to as
having a stronger Entrepreneurial type of personality whereas the Specialist is referred to as
more of an apreneurial type of personality. The book is then written from different
perspectives so that readers are able to learn specifically about themselves. This is unique in
that most writers write from their perspective and rarely write from the perspective of the
reader. That plus the fact that the reader gets their own personality test is really cool stuff.
The author write this book because he believe most readers are interes ted in becoming
millionaire and he did a survey that 70 percent of people read these sort of books who are not
entrepreneurs.
The book is written for a broad spectrum. It has a great message for existing business owners
and their significant other, their employees and partners as it provides insights as to why they
do what they do.
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The Entrepreneur Next Door is also written for those that desire to go into business for
themselves as it provides them with a roadmap .An objective roadmap. Our research
indicates that it is easier if you have a personality that is perfect for an opportunity but what
about the other 60+ percent of the population, those that are more risk averse, those that
prefer taking their time and really teach a subject well those individua ls can be great as a
franchisee or a distributor. They can be great where the brand brings their customers to them
so they don't have to be the aggressive marketer themselves.
There is a third and unexpected group that has strongly benefited from their reading of The
Entrepreneur Next Door and that is existing companies and corporations. Their upper
management has struggled for years with those that lack initiative which is something that
entrepreneurs have in strong supply. These corporate readers always know who they have
issues with, their new found understanding has provided them with the Why the issues exist,
what they can do about it and How they can fix it.
The entrepreneurial next door describes the natural entrepreneurial personality types
1. Born leaders
2. Corporate leaders
3. Wantapreneurs
This book is helpful because it discusses the pitfalls and potentials that go hand in hand with
entrepreneurial personalities and offer insights or solving challenges.
EQ and IQ play important roles in business.
After reading this book I get to know that four personality factors really works in achieving
goals and these are:
1. Dominance
2. Sociability
3. Relaxation
4. Compliance
After reading this book I can say that I lie in GO-GETTERS. That means that I have a higher
than average level of both dominance and sociability and are also very driven and
independent and welcome authority and responsibility but share some of the spot life.
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One of the greatest challenges is developing an appreciation as to why others can do what we
can so easily accomplish.
This book was very interesting and motivating. It helped me to evaluate myself and my
personality. I learnt a lot from this book but I feel as if the author has provided examples of
successful and unsuccessful entrepreneurs it would be easier to understand. And author
should also mention the concept about corporate politics because corporate politics play an
important role in business.
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GOOD TO GREAT
By: JIM COLLINS.
RAJA KHALID HAFEEZ
01-111072-233
BBA 6A
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Key Points
• “Level 5 Leaders” - leaders who have both “personal humility” and “professional
will”. These are not rock-star leaders whose companies go into decline when they
move on. They are diligent and hard working - more bite than bark. Celebrity leaders
often work for a time, but appear to be damaging in the long run, because they don’t
create sustained results.
• Get the right people on the bus - that has to happen before the “what” decisions are
taken. That can change if you have the right people, but the wrong people will
certainly make the enterprise fail.
• You must always be willing to “confront the brutal facts”. Don’t ignore reality in
favor of what your hopes reflect it to become. Only by having accurate information
can you achieve success?
• The “Hedgehog concept” means having a simple, extremely clear concept of what
their business is. That business is something they can
1. Make money at
2. Be passionate about, and
3. Be the best in the world at
These are also known as “The Three Circles”
• A culture of self-discipline is critical, because it creates an environment where people
work within a defined system, and yet, because the confines of the system are known,
gives them more freedom to act within that system.
• Technology is an accelerator, not an agent of change. Good companies use it to
execute better, but it won’t save a mediocre company.
• “The Flywheel” refers to the idea of momentum - keep pushing in one direction and
you’ll build up a lot of it that will help you to overcome obstacles. Momentum is built
a little bit at a time - it’s not a dramatic, revolutionary change, but constant, diligent
work.
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• Summary
The idea that sparked this book was to answer questions about how good companies might
become great companies, and how they went about doing so.
Methodology
The study looks at companies from 1965 to 1995, looking for those that, for 15 years, either
tracked or underperformed the stock market, followed by a transition, and subsequently
returning at least 3 times the stock market for at least 15 years. The goal was to eliminate
“flash in the pan” success from the results. Further filtering was performed in order to ensure
that companies also outperformed their industries, so as not to include spurious results
showing entire industries that grew by leaps and bounds in a given period. Eleven companies
were located that matched these criteria, and were studied in depth, and compared to
competitors in their fields
The companies studied were:
• Abbot Laboratories
• Circuit City
• Fannie Mae
• Gillette
• Kimberly-Clark
• Kroger
• Nucor
• Philip Morris
• Pitney Bowes
• Walgreens
• Wells Fargo
Level 5 Leaders
All the companies studied had what Collins describes as “Level 5 Leaders”. Despite sounding
like something from a space-alien worshiping cult, what the term refers to is an individual
who is very humble on a personal level, but who possesses a great deal of drive and desire to
succeed, where “success” is not personal, but defined by creating something great that will
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outlast their time at the helm. These are people with an unwavering will and commitment to
do what is necessary to drive their organization to the top. Most of the good to great
executives discussed luck as an important factor in their success [and perhaps cynical readers
of The Black Swan will agree with that assessment more than the factors Collins cites -
davidw]. Level 5 leaders, are, in any case, the kind of people who do not point to themselves
as the cause for an organization’s success. The chapter closes with a discussion of whether
Level 5 Leaders are born, or made, with the conclusion that many people probably have the
kernel of abilities and attitude necessary to attain that status.
First Who … Then What
During the transformation from good to great, rather than concern themselves first with the
“what” - products, direction, strategy - the companies studied ensured they had the right
people “on the bus” before anything else. By having a strong team, these companies avoided
the pitfall of the “lone genius” CEO. For example, think what would happen to Apple’s share
price were something to happen to Steve Jobs. “Great” companies are those that have a very
solid foundation, and don’t depend on the brilliance of any one person.
The research indicated that compensation did not correlate at all with the “good to great”
process. No particular compensation scheme appeared to be advantageous.
Also important was that, while the companies were “tough” places to work, they were
because of the general high quality and hard-working mindset, not because of ruthless
management. Some practical tips for how to be rigorous:
• Don’t hire someone unless you’re %100 sure that they’re the right person. It’s better
to wait and get someone that you know is a good fit.
• Once you realize you need to fire someone, don’t put it off. Do it quickly and fairly,
but do it and be done with it, rather than put it off.
• Give good people good opportunities, rather than the biggest problems. Fixing
problems makes you good, but taking advantage of the right opportunities can make
you great.
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Good to great teams were mostly composed of people who had a good sense of balance with
the rest of their lives - family, church, and so on. Of course, they had a deep commitment to
their companies, but not one that blinded them to the other important things in their lives.
Confront the Brutal Facts
One of the key factors in the success of the great companies was a series of good decisions.
The good decisions flowed from the fact that they all made a consistent and thorough effort to
confront reality, internalizing the facts relevant to their market. Having lofty goals can be
good, but you can never lose sight of what the reality is on the ground, no matter how much
you will it to be different.
In a large organization, where it’s impossible to personally poke your nose in all corners of
the company every day, it is crucial to create a climate where honesty is valued and honored.
If people aren’t telling it like it is, those at the top may not realize the truth until too late.
Some tips to create this kind of climate:
• It’s often better to ask questions rather than dispense “answers”.
• Encourage healthy debate. It has to be real debate, not a show put on to make people
feel included. It should also not just be argument for the sake of argument - reach a
conclusion and move on.
• When things go wrong, investigate to avoid repeating the mistake, instead of
assigning blame. If people are too worried about protecting themselves, it becomes
difficult to honestly analyze and learn from failures.
• Create mechanisms, “red flags” that allow people to communicate problems instantly
and without repercussions, and in a way that cannot be ignored.
Amidst these “brutal facts” that must be faced, you must also have faith in your final goal. By
maintaining this vision, and keeping your ear to the ground, it won’t be necessary to motivate
people - if you’ve got the right people, they’ll be motivated of their own accord.
The Hedgehog Concept
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The “hedgehog concept” refers to a parable of a hedgehog and a fox, where the fox knows
many things, but the hedgehog knows one big thing. The good to great companies were by
and large built by “hedgehogs” - this doesn’t mean stupid - au contraire - it just means that
they were able to focus on one big important thing that made their companies great.
Sometimes it takes real genius to see through all the clutter and grab the one, simple, unique
thing that gives you the advantage.
The “three circles” is an idea regarding how to find your “hedgehog concept”: think of three
interlocking circles, representing 1) what you are passionate about, 2) what you can make
money at, and 3) what can you be the best at. At the intersection of these three things lies the
winning target. If you can bring all three things to bear, you have found a way to excel. Learn
to realize, as well, what you will never be the best at - those are things you must avoid, if
possible. The economics of various industries varied widely, but the good great companies
were winners, even within industries that weren’t rising stars. One consistent rule of thumb is
to identify a ratio, profit per X, (where X could be customer, web site user, per unit sold, per
employee etc…) and focus on that. Sometimes it may not be obvious.
Passion, on the other hand, does not come from executive rah-rah sessions with employees,
but by doing things that make people passionate on their own. Passion isn’t something that
can be forced on people; it has to come from a mission that they truly believe in, that’s more
than just a paycheck.
Another practical suggestion is to create a “Council”, of between 5 to 12 people, to discuss
and gain insights into the organization. It should meet regularly, not a one-time group. Its
members should bring to the table a deep understanding of some portion of the firm. They
need to freedom to speak their minds, and always have the respect of the other Council
members. The Council exists to help the chief executive, not reach a consensus. It is an
informal group, in the sense that it is not spelled out in official documents or org charts.
Culture of Discipline
Great companies have both an entrepreneurial spirit and a sense of discipline. They are both
necessary - without the drive to try new things, and some degree of independence, a company
becomes a rigid, stifling hierarchy. Without some sense of discipline, things begin to break
down as the company grows. The best companies have both latitude for individual action, as
well as a culture of disciplined behavior. This begins, once again, with the right people. It’s
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useless trying to create rules to force the wrong people to behave correctly - it simply won’t
work. Instead, you need to find people who have an innate sense of self-discipline that
doesn’t c ome from above. There is a big difference between having a “tyrant” that enforces a
culture of discipline by fear, and finding people who naturally adhere to a disciplined
approach. The former will disintegrate when the leader moves on, the latter creates a lasting
system.
One helpful approach to discipline is to have a “stop doing” list. Stop doing the things that
aren’t central to your business. Stop doing the things that are just clutter, but even more
importantly, stop doing even things that might be seen as important, if they are not in your
“three circles”.
Technology
“Great companies adapt and endure” - technology is not a differentiator in and of itself, but
rather something that enhances great companies. They use it to further increase their
leverage, in a conscious, directed way, rather than rushing to embrace it for the sake of its
newness. Technology won’t light a fire where there is none, but where there is already good
momentum, judicious use of technology can help accelerate it. Technology is an enabler of
change, not the cause of it - but the “people factors” must be in place before application of
technology will do any good. Technology as a reaction - to the latest fashion, to the
competition - was not what was found in great companies. These companies possess a drive
all their own that pushes them to be the best in their chosen field, and picking the right
technology is a natural part of that.
The “Flywheel” and “Doom Loop”
These two concepts represent positive and negative momentum. A flywheel is a heavy wheel
that takes a lot of energy to set in motion - to do so usually requires constant, steady work,
rather than a quick acceleration. Great companies’ transformations were like this as well.
There was no magic recipe or no ‘aha’ moment when everything changed. Rather, with
everything in place, lots of hard work slowly but steadily got the great companies going faster
and faster, with a lot of momentum. Once it’s in motion, all that stored ene rgy tends to keep it
moving in the right direction.
Conversely, the “doom loop” is the vicious circle that unsuccessful companies fall into,
rushing first in one direction, then another, in the hope of creating a sudden, sharp break with
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the past that will propel them to success. Some attempt to do this through acquisitions, others
through bringing in a new leader who decides to change direction completely, in a direction
incompatible with the company. The results are never good. The difference between the two
approaches is characterized by the slow, steady, methodical preparation inherent in the
flywheel, as compared to the abrupt, radical, and often revolutionary, rather than evolutionary
changes within the company.
Built to Last
The results from this book were obtained without regards to Collins’ earlier work, Built to
Last, but when all was said and done, Good to Great is what has to happen before a company
becomes Built to Last. Much of what is present in Good to Great was present during the
creation by their founders of the Built to Last firms. Companies that have endured have a
raison d’être beyond simply making money - they have distinguishing and unique
characteristics, goals and ways of operating that go beyond a simple desire to make money.
These core values are preserved, while tactics change continuously to deal with an restless,
tumultuous world that never stops.
The “Big Hairy Audacious Goal”, a concept introduced in Built to Last can be either good (as
motivation, something to pursue), or bad (if it’s impossible or a bad fit). Good BHAGs are
those formulated from a deep understanding, whereas bad ones come from brash recklessness
without regard for the actual values and capabilities of the company.
Why greatness?
Because it’s not really that much harder to be great than good, and if you’re not motivated to
greatness, perhaps you should consider doing something else where you are.
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THE TIPPING POINT
By: MALCOLM GLADWELL
RAMEEZ NAYYER RANA
01-1110720-236
BBA 6A
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The Tipping Point is the biography of an idea which is the best way to understand the
phenomena of word of mouth or any number of the other mysterious changes that mark
everyday life in to epidemic. Ideas, product, messages and behaviors spread just like viruses
do.
An event to assume the character of epidemic generally follows three characteristics
• Contagiousness
• The fact that little causes can have big effect.
• The change happens just happens it does not happen gradually but at one dramatic moment.
The idea that epidemic can rise and fall in one dramatic moment is the most important and is
named as “Tipping Point”.
The word contagiousness is generally associated with cold, flu or something as dangerous
cholera. However in the real world, it can also be used for describing epidemics of fashion or
epidemics of crimes. Even yawning is epidemic as it does have the yawning effect on the
others around. Contagiousness thus is an unexpected property of all kinds of things which
must be remembered if an epidemic change needs to be recognized and diagnosed.
The second characteristic that little changes can somehow have big effects is a fairly radical
notion. We know that what our behaviors should be in a dealing or relationship and what
should be its intensity and dimension. For example any rational person would speak
passionately if he is expressing his affection or liking for someone, however the same person
is likely to lower his voice and chose his words carefully if he is about to break a bad news to
anyone. This shows that humans are trained to make approximation between cause and effect.
If the actual outcome of an event is far greater than our expectation we find it hard to accept.
Epidemics however grow in ge ometric progression. Therefore we need to abandon the
expectation about the proportionality of cause and effect and have to accept the possibility
that sometimes small events can cause big changes and sometimes these changes can happen
very quickly.
The possibility of sudden change is at the centre of the idea of the “The Tipping Point” and
might well be the hardest of all to accept. It is the moment of critical mass, the threshold, the
boiling point.
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The case studies briefly described below would help elaborate the characteristics of described
above
Case of Hush Puppies is the classical American brushed-suede shoes are being manufactured
by company called Wolverine. Till early 1994 the brand was almost dead with annual sale
declining to just 30,000 pair’s annual sales. The company was thinking of discontinuing the
brand when Tipping Point for Hush Puppies came in late 1994 and early 1995 when the
demand for this brand suddenly picked up. The company sold 430,000 pairs in 1995 and in
the next year sold four times the figure. The company had neither resorted to any aggressive
promotion scheme nor did anything extraordinary to boast the sales. It turned out that few
kids turned up in a club wearing Hush Puppies classics they were not deliberately projecting
the brand they were just wearing those shoes because no one else was wearing these shoes.
The idea got the fancy of other youngsters at the club and became almost epidemic through
out the world town and spread like a virus through out the country in no time. Those kids,
who first who first wore the shoes brought the Tipping Point foe the sale of Hush Puppies.
When we say that handful of village kids started the Hush Puppies epidemics, we are actually
saying that in a given process or system, some people matter more than others. Social
epidemics work in exactly the same way they are driven by the efforts of a handful of
exceptional people.
In this book, Gladwell speaks about the above described concept in terms of three rules of
epidemics: Law of Few, The Stickiness Factor and the Power of Context. In the first rule,
Law of Few, he illustrates certain type of people who help tip the scales. These are
connectors, mavens and salesman. He gives an example of a famous connector, Paul Revere,
which was a most surpr ising story. In introducing the next rule, the Stickiness factor,
Gladwell uses Sesame Street and Blues Clues to exhibit repetition as a learning tool in the
youth of today. The law of the few says that there are exceptional people out there who are
capable of starting epidemics .all you have to do is find them .the lesson of stickiness is the
same .there is a simple way to package information that under the right circumstances can
make it irresistible .all you have to do is find it. The third rule, The Power of Context,
touched on the crime rate of New York City. A little gesture such as cleaning graffiti off the
subway walls helped to reduce crime in the area. He introduced the “Broken Glass Theory”
depicting that unchecked signs of deterioration in a neighborhood or community could result
in a declining quality of living. If a window is broken or left un-repaired, people walking by
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will conclude that no one cares or no one is in charge. This could lead to an epidemic of
crime. The power of context says that an epidemic can be tipped by tinkering the smallest
details of the immediate environment.
The three rules of Tipping point The Law of the Few, The Stickiness Factor, The Power of
Context .Offer a way of making sense of epidemics. They provide us with direction for how
to go about reaching a Tipping Point. The balance of these ideas will make us understand
how the epidemic occurs around the world.
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THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE
By: STEPHEN R. COVEY.
RAMEEZA ZAHID
01-211082-109
BBA 6A
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Introduction
They say acquiring knowledge in any field of life is the safest and quickest path to winning
success in this world. The term ‘success’ remains relative therefore different people draw
different inferences from it but the reality is that without happiness, health and meaning
success is nothing but a mirage. In Seven Habits Stephen Covey has chalked up the path that
allows a person to take control of his life and to become the complete, fulfilling person that
deep inside he envisions being.
The First Step
Before divulging into the details of the seven habits Covey has given a look into why
effectiveness is so important in our lives- be it our professional or personal. In this book,
Covey wants to express to us how we can base our behavior on a paradigm of the world
which is centered on our unchanging principles instead of being centered on what happens in
the world and the vicissitudes of life. Covey has divided the independent seven habits into
three groups: Private Victories, Public Victories and Renewal.
1-Being Proactive
“Proactivity” is a characteristic that enables a person to choose his responses to various
stimuli he is subjected to. Proactive people are driven by internalized values and are very well
acquainted with their inner self. According to Covey there is a basic difference between being
proactive and being pushy-in the former one has to take responsibility for the actions
conducted and therefore the credit as well. Being a courteous girl, I never forced or asserted
my opinion during group works which would often lead to difficult part of the project falling
under my domain. Continuously being subjected to this behavior frustrated me to a point
where I used to finish the whole project by myself just to prove to them and myself “I can do
it all!”
Keeping commitments, to ourselves or others, is another essential part of being proactive and
independent. I was determined to formally acquire religious knowledge along with doing
BBA no matter how tough it got, because I was really passionate about it and above all I had
promised myself I would. The idea that we are able to react to situations around us is
essential in developing effectiveness.
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2- Begin with the End in Mind
This habit is based on the principle that all things are created twice. There is a mental (first)
creation, and a physical (second) creation. The physical creation follows the mental, just as a
building follows a blueprint. Personal and business management can be divided into three
aspects; leadership, management and. A starting point in beginning with the end in mind is to
develop a mission statement which helps in focusing on our character,
contributions/achievements and on the principles upon which the former two are based. I
personally experienced this during my internship at a renowned organization. The head of the
department announced at the beginning of their official quarter that in order to complete all
projects in the given time frame they had to develop a department mission statement for
which everyone was to contribute, therefore boosting our confidence.
Another fact that Covey mentions in this habit is that the principles we base our lives on
should be deep, fundamental truths because they will become tightly interwoven themes in
the fabric of our lives. Visualization is a great aid that can be used to develop a personal
mission statement. When I decided to gain religious knowledge, it became my goal, and I
visualized every future scenario that I might encounter which greatly helped me out of many
difficult situations.
3-Put First Things First
The third habit is what Covey refers to as “Executing the Program” because this is the habit
where one has to implement the first two habits. Time management is an essential skill for
personal management and its essence is to organize and execute around priorities. Methods of
time management include checklists, calendars and appointment books, prioritizing etc. The
best method is where we manage ourselves rather than time which focuses on preserving and
enhancing relationships and accomplishing results. I decided to help my mother in the kitchen
by cooking one meal of the day which it turned out was a rather difficult service. Not only
was it a great responsibility but I also had to reschedule my day around it so that dinner was
served in time therefore managing myself rather than time so that I could become a better
daughter.
Another critical skill for personal management is delegation which if effectively done is
perhaps the single most powerful, high-leverage activity there is. Learning to drive is fun but
becomes a pain when one starts being treated like a driver; picking younger siblings and
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groceries etc. Later on in life I realized that if my father had not ‘delegated’ me these tasks I
would never have shined my driving skills.
4-Think Win-Win
The part of ‘Public Victory’ begins with this habit where Covey states that in situations of
human interaction we should aim for a win-win result, which is principle -centered and
mutually beneficial for all. Out of the six paradigms of human interaction mentioned win/win
is the only viable alternative when relationships are paramount. When the time came for my
brother to choose a career there used to be many heated discussions at home with both my
father and brother forming opposing parties. With passing time the inconclusive discussions
started marring their relationship and the environment at home which resulted in a cold
stalemate between them. My father was thinking on the lines of “Medical is a noble
profession and Art is useless!” while my brother thought “Art too can be used for noble
purposes.” To solve this dilemma my mother suggested that my father and brother spend time
learning both the fields and maybe they can learn to appreciate each others’ interest. Years
later my brother did become a doctor but continued to paint and my father appreciating his
passion sponsored his first show.
There are five dimensions of the Win/Win model: Character, Relationships, Agreements,
Supportive Systems and Processes. Competition has its place against market competitors, last
year's performance, or another location or individual where cooperation and interdependence
aren't required, but cooperation in the workplace is as important to free enterprise as
competition in the marketplace. The spirit of Win/Win cannot survive in an environment of
competition or contests. Students often complain that our education system is primarily
competitive in nature where everyone is just trying to get the highest marks without
understanding a word they read while the passion the teachers had in making their students
grasp concepts have consistently diminished now it’s a rat race where unfortunately no one is
the winner! If we have to succeed we have to walk the talk.
5-Seek first to understand, then to be understood
We often prescribe solutions before making a proper diagnosis when communicating. It is
essential for building concrete relations that we first take the time to deeply understand what
is being ‘said’ to us. Skills of empathic listening must be built on a character that inspires
openness and trust and high emotional bank accounts. It is the skill where we ‘listen’ with the
intent to understand the other person's frame of reference and feelings therefore listening with
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ears, eyes and heart. In school there was this girl in my class who used to have great difficulty
writing, even though she was bright she could never pen down her thought. She used to get
passable grades which baffled the teachers because they thought she could do much better;
her parents had no clue and often scolded her rather harshly. One day our principal sat down
with her and gently started asking her about her life at home and school- to her amazement
she found that that she had dyslexia and her parents never ‘listened; to her problems and
instead blamed her for being ‘careless’ with school. Such problems can be diagnosed much
easily if we try to listen and understand instead of making effort to be understood.
Empathic listening takes time, but not as much time as backing up and correcting
misunderstandings, including living with problems and the results of not giving the people
you care about psychological air. We by default are trained to give autobiographical
responses to every situation that we encounter when we hear someone got fired from their job
we assume he was incompetent in the first place. Parents scold him and relatives frown upon
him which completely destroys his confidence. If we instead give him a chance to explain we
might understand the hidden reasons allowing us to advice him better. Therefore this habit is
powerful because it focuses on our circle of influence making it an inside-out approach.
When we focus on building our understanding we can influence others easily- we appreciate
people more, they will appreciate us more.
6- Synergize
The essence of synergy is to value differences to respect them, to build on strengths, and to
compensate for weaknesses. While communicating synergizing allows us to open our mind
and heart to new possibilities, although it may seem like we are casting aside "beginning with
the end in mind," but in actual we are fulfilling it by clarifying our goals and discovering
better ones. When my sister was getting married my mother and she used to go out on long
shopping sprees only to come home empty handed-my sister liked the expensive designer
wear while my mother wanted her to be a traditional bride. Both had their own distinct taste
and not wanted to sour the environment by arguing so my grandmother suggested getting my
mother’s bridal dress‘re-created’ so that both my mother and sister can get their wishes
fulfilled. The result of combing ‘old’ with ‘new’ was terrific. The paradigm shift in this habit
focuses around differences, they’re not annoying, and they’re very precious. The moment you
realize this is wonderful, you recognize the hidden value in it.
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Stephen Covey notes that synergy is difficult for many of us as independence is promoted as
a strong value in the world today. Many people have been trained or have learned that other
people can't be trusted. Achieving synergy requires high trust and high cooperation and can
lead to better solutions than anyone thought of alone. Working in groups is often preferred in
every field of life because two brains combined can better solve issues than one but one has
to understand and acknowledge that everyone is different and must be dealt with differently.
In universities we often fight amongst friends when we don’t like the way the project is going
but the best ones are also the one where we sit together and listen to each other’s ideas and
create new ones.
7- Sharpen the Saw
All the 6 habits require that we all humans are ‘healthy’ enough to bring about changes in
ourselves. This is only possible if we regularly check and correct ourselves physically,
spiritually, mentally and emotionally. Our regular ‘checkups’ will help us become sharper
and more aware of our souls so that we can become a better, more effective person. I as a
student became so engrossed in my studies that I often neglected my family, causing relations
to become strained. I often felt like I didn’t know what was going on around me and did not
even bother finding out resultantly I started feeling lonely. It was not until my mom hugged
me out of the blue that I realized that I was a daughter too.
Self-renewal must include balanced renewal in all four dimensions thus we have to eat, think
and feel healthy. My father picked up jogging just to feel he had legs after sitting in a chair all
day long. It's so easy to get caught up in the demands of life, or even developing the Habits,
that we forget ourselves. We can't do that. We have to be proactive and do this for ourselves.
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GOOD TO GREAT
By: JIM COLLINS.
SARA BATOOL
01-111072-268
BBA 6A
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Jim Collins was a business consultant, author, and lecturer on the subject of company
sustainability and growth. In 1994 he wrote a book “Build to Last” which had a detailed
analysis of all the great companies of that time. After some years he came to realize that he
only focused on companies that had strong base and were logically destined to be great, and
he actually missed out the fact that real studying would be of the companies that transformed
themselves from being good to being great. This quest for greater knowledge led him to a
new project named as “Good to Great”.
Good Is the Enemy of Great
If we put all the goods and the greats on a graph with similar attributes, they will form a
pyramid which shows only a small ratio of goods transform themselves to be greats. “Good to
great” is focusing on the phenomenon of why so less becomes great and the major part settles
on just being good. The author studied two groups of organizations to identify the differences
which led normal companies to great heights and the good ones remained good. This book is
about the synopsis of all those differences, concepts, practices and even some un-identified
factors that were the cause of such dramatic development. These findings were not only
limited to business aspect of this world but it was to be used in all the parts of human
interaction/life.
Level 5 Leadership
By studying different organizations Jim Collins and his team identified the main reasons or
factors which facilitate a company to move from average institution to a great institution.
Level 5 leadership is one of those key factors. Jim Collins selected 11 companies out of 1400,
which moved from good to great and 10 out of those 11 companies have level 5 leadership
during crucial transition years. All most all of the level 5 leaders are self less, they credit
factors like luck for their successes rather then there personal greatness. They are highly
dedicated to their work, and amazingly they produce sustainable results to make their
companies great. Eventually the level 5 leaders set their successors to greater successes in the
coming next generation. These people are workaholics and they actually enjoy their work
which in return motivates them to work even harder. Effective decision making and
reasonable risk taking are the differentiated characteristics of the level 5 leaders. Mostly these
leaders praise other people involved for the successes and blame themselves for the failures
taking the full responsibility, however in most of the cases discussed in the chapter it is
opposite. The two sides of level 5 leadership include professional will and personal humility.
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Professional will support the idea of aggressiveness and doing whatever it takes to make the
company great, and also the idea of building the strongest and settling for nothing less than
that. While on the other hand personal humility demonstrates the idea of sustainability it may
include ; setting up successful successors, giving credit to the external factors and people for
the success and modesty. Potential level 5 leaders exist all around us, it’s just that we should
know what to look for there are a lot of people who have the potential to evolve themselves
into level 5 leaders.
First Who… Then What
Recruitment and hiring is one major stride which helps companies to do great in the market.
Recruitment is vital to any management process and failure in recruitment can certainly
create difficulties for any organization including a bad effect on its profitability. In this
chapter Collins says, “People are not your most important asset. The right people are.”
Confront the Brutal Facts
Jim Collins explains that how we should deal with the brutal facts that arise as time is
changing and the pattern of living and purchasing is changing. Many companies come across
with these facts because they didn’t come up with different strategies and lose the ir market
share and those who adopt with the trend are still holding the market share as well as
increasing profits day by day. Large companies need to maintain a climate where the truth
can be heard and everyone gets a chance to speak on certain issues. If people in an
organization do not speak truth then it will be very much difficult for the top management to
have a true picture until it’s too late. Some tips to create this kind of climate:
v Lead with questions, not answers.
v Support healthy dialogue/debate over different issues in organization.
v If something went wrong then investigate the root cause and then learn a lesson from
the findings instead of just blaming someone.
v Build "red flag" mechanisms.
Red Flag mechanism was also introduced by Jim Collins. In which students were given
complete freedom that they can raise their hand with red flag and share anything whatever
they want, this mechanism helped to sort out the information which cannot be ignored.
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Good-To-Great companies are dual in nature. On one hand they know that they are facing
severe problems but on the other hand they never lose the courage, they struggle hard and do
their best. This is called Stockdale Paradox. Name refers to Admiral Jim Stockdale, the
highest military ranked officer, who remained in prison for 8 years but he didn’t lose the hope
and struggled hard even in this situation. After his release he became the 1st Three Star Navy
Officer in the history of navy.
The Hedgehog Concept
Chapter 5 of the book “good to great” primarily focuses on the hedgehog model. The
hedgehog model is related to the hunting story of a fox and a hedgehog, telling that no matter
how clever the fox really is, the hedgehog always wins because of its sheer simplicity and
robust consistency. Simplicity is therefore the main key feature of the model. Jim Collins
strongly emphasizes on entrepreneurs to come up with simple ideas and pursue them with
high level of consistency by keeping in the hedgehog model. If, all the key points of
hedgehog model are not fulfilled then the company might be good but can’t be great.
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Purple Cow; TRANSFORM YOUR BUSINESS BY BEING
REMARKABLE
By: SETH GODIN.
UMER MANN
01-111082-112
BBA 6A
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Introduction:
Purple Cow: Transform your Business by Being Remarkable is written by Seth Godin. We all
know about the traditional P’s of Marketing, which are: Product, Price, Promotion, Position,
Publicity, Packaging, Pass-along, and Permission, but Godin went step further came up with
something new, the Purple Cow. The Purple Cow is all about being remarkable and comes
with many benefits. Being remarkable is always something that is worth talking about and
what makes a company better and there needs to be a way to make a company’s product more
noticeable.
Godin in his book says that financial success is no longer achievable through a remarkable
marketing plan. Instead, the key to success now lies in the creation of purple cows --
remarkable products that market themselves. In short, Godin’s plan requires that companies
create an idea and infect their targeted customers with it. This idea should transform its
recipients into sneezers, who subsequently spread the product information. Once the word
spreads, the result is a purple cow which can be milked for all its worth.
Review:
According to Seth Godin, there are more than the four P’s that we have learned about. They
are Product, Price, Promotion, Position, Publicity, Packaging, Pass-along, and Permission.
The newest P that has been created is the Purple Cow. The Purple Cow is meant to be
remarkable. The reason why the Purple Cow was created was because all the traditional P’s
just weren’t working right. Some terms that are important through the book are remarkable
marketing, TV-industrial complex, post-consumption consumer, and marketing department.
Remarkable Marketing is the art of building things that are worth noticing into the product or
service. TV-industrial complex is the relationship between the consumer demand, TV
advertising and the companies that are built around the investments in increasing marketing
expenses. Post-consumption consumer is when the consumer has nothing they need to buy.
Lastly, the
Marketing department spends money to communicate the benefits of the product or service to
the target audience. Before there was advertising, there was word of mouth and this was
when products were worth mentioning, were talked about and eventually purchased by the
mass market. During advertising, using the power of television, sales would go up if the
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advertising was directed towards the consumer. After advertising, companies are almost back
to where they started word of mouth.
There are many companies that sell the same product and there needs to be a way to make a
company’s product unique, which is where the Purple Cow comes in. Consumers are either
hard to reach or they simply cannot afford the product being marketed to them. Due to the
ideas, overwhelming the consumers, they are less likely to give their opinions to others about
products unless they are sure that others are willing to listen.
One of the best ways to effectively advertise a product is through the television. Television
has changed the way that products have been marketed to the mass media. However,
television is fading and so are newspapers and magazines. Godin mentioned some rules. Old
rule for the TV- industrial complex is: “Create safe, ordinary products and combine them
with great marketing” but the new rule is: “Create remarkable products that the right people
seek out”. The concept of the Purple Cow is very significant to the new rule of TV- industrial
complex.
Godin mentions that, problem is not that a company does not have any remarkable ideas but
that they do not know how to properly execute them. The lesson and goal of the Purple Cow
is to show that it is safer to be risky which will make a company fulfill their desire to do
something remarkable. Once a company knows that their product’s demand is decreasing, it
is time to create something worth talking about.
The only people willing to listen to risk-taking consumers are the innovators, who are people
that might not need a product but purchase it anyway. The early and late majorities listen
about a product but ignore the need to buy it. They only make an exception when there are
enough people talking about it. This is when they will follow the crowd and purchase the
item. Then there are those people who do not follow the newest trends and stick to older
products that can be considered obsolete and outdated.
Not many people like to adapt to a new product so they tend to feel stuck in the products that
they have. The only thing an advertiser can do is sell their product to people who are
interested in buying something new. This is when the company hopes that the idea will
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spread. The idea is to design a remarkable product that will attract the early adopters but
simple enough for them to spread the idea to others.
Brands are nothing more than just ideas which are more likely to succeed if they spread. Idea-
viruses are the code name for ideas that spread. People that are the key spreaders of ideas are
called sneezers. These are people who go around telling friends and family about an idea. The
way to break through to the mass market is to ta rget a niche. By creating a niche, a company
is targeting a smaller target market, making the idea easier to sink in and get appropriate
response. The sneezers from one of the targeted niches can get the company to the critical
masses needed in order to create an idea-virus.
Marketing in a post-TV world is not about making a product attractive after it has been
designed and built but to design it to be unique in the beginning. However, marketing has
become more time consuming and more expensive. Investing in the Purple Cow is a very
smart decision to make, one should know if a service or product is worth talking about.
Advertisements do work even though there is mention of the death of the TV-industrial
complex. They do not work as well, as they used to but they still attract and generate sales.
Advertisements are meant to target everyone in the market. This is a problem because not
everyone wants the same product. There is a big idea that has been created, “It is useless to
advertise to anyone (except interested sneezers with influence)”.
The problem with the Purple Cow is the concept of fear. If a product is already remarkable
then it is not likely it will receive much unanimous praise. However, if a company is
constantly avoiding feedback and criticism then it is not going to succeed. The thing that
most people do not realize is that those who do not listen to criticism will ultimately fail. You
can never predict how sales are going to be & the best thing is not to be afraid of the end
results, rather to focus on being remarkable which is the main ingredient of Purple Cow.
The catch-22 equation comes from the knowledge that mass marketing demands, mass
products and that mass markets beg for mass marketing. Companies that build their product
around mass marketing will develop their products in the same fashion. These are products
made for the entire market and are pushed to the market through the influence of prices and
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performance. When marketing to the masses it requires a large budget. When using a large
budget, everything should be perfect else the opportunity is wasted.
People who like to play safe by eliminating risk from their businesses are making a mistake.
When this happens fewer and fewer people are creating new Purple Cows. However, those
who do create a Purple Cow are succeeding because so many people avoid taking a risk. The
creators of Purple Cows usually receive huge benefits in form profits and success.
Marketing departments usually feel the need to refresh their slogan if they feel that it is
getting too old. These are usually due to budgeting or product compromise. A budget
compromise is when a company wants to launch a new slogan but has insufficient funds to
launch a new product. Product compromise makes it less radical so it will not offend the
customer base. By refreshing the product or slogan it makes it harder for the existing and new
customers to keep track of the item. Marketing should hence avoid confusing its customers.
Otaku is the feeling of wanting to try out a new brand or product because the reviews made it
sound remarkable. The Purple Cow phenomenon begins with Otaku. By using Otaku, the
early adopters spread the word and Sneezers will learn about the product, try it and tell
others. A smart business will target marke ts that already have Otaku giving them advantage.
There is no secret formula to creating a Purple Cow but there is process and a system. It is to
go for the edges i.e. challenge yourself and your team to see which of the edges will give the
desired results. In order to determine the edges and where the competition is, the P’s should
be reviewed.
“A camel is a horse designed by a committee” says Godin. This old saying is right.
Compromises can diminish the chances of success even though the goal of the marketing
department is to create a Purple Cow. Boring brands are hard to market compared to the ones
that have the real growth, because those are: too expensive, annoying, too simple and the list
goes on. Market leaders that once dominated due to the Purple Cow are now continuing their
profitability by compromising.
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There are four steps to the magic cycle of the cow. They are: To get permission from the
people, who were impressed, to be able to alert them the next time there is a Purple Cow.
Give the sneezers proper tools they need in order to get the idea to safely cross the chasm.
Once the product goes from remarkable to profitable, let others milk it. Lastly, it is necessary
to reinvest in the product to launch a new Purple Cow.
As Purple Cow is a new P in marketing the whole definition of marketing has changed.
Advertising has always been the better meaning for describing Marketing. Marketing
communicates the values of the businesses product to the consumers. Marketing consists of
inventing a product, designing, producing, pricing and selling the final product.
Consumers like cheap products and it never seems to lose its appeal. A cheap item will
always gain the advantage and market share over the repeatedly purchased item. The problem
starts because once a competitor sees that other companies have cheap items, then so will
they. A way to become an exception is to dramatically redefine the way the product has been
produced and even delivered.
These are all good insights to the marketing world of today and the need to always have
something new to keep your company successful. The Purple Cow can be used as a tool to
know what should and should not be done in the marketing world. Always know that the
Purple Cow is not something to be feared but to be used for new ideas that could have a
remarkable effect on the compa ny.