Exam 5: Managing Entrepreneurially

For the past year,Jessie has been running her sports marketing/advertising agency and has managed to retain four significant clients-one more than she needed to break even for the year.She is thinking about how to organize the growth of her business in a way that will allow for bringing in the talented people she wants without creating too much chaos all at once.Jessie realizes that she needs to look at three key areas to support her growth,and if she does this properly,her business will expand with greater ease.She needs to focus on ensuring she has enough capital,hiring the right people before she needs them,and,most importantly,________.

As the entrepreneurial venture grows and the entrepreneur finds it increasingly difficult to go it alone,the next step is usually to ________.

A business plan ________.

To be an entrepreneurial venture,a small business must also be innovative and constantly seek out new opportunities.

Angela's Thesis Coaching Company (Scenario) Angela is finally starting to feel more at ease with her business. Six months since the launch of her Ph.D. Thesis Masters she is starting to see revenues climb and her associates are producing great work—and more importantly, her customers are happy. Ph.D. Thesis Masters (PTM) provides coaching and research services for masters and Ph.D. students working on their theses. Angela discovered that many students need help with much of the grunt work of formatting, meeting deadlines, and doing secondary research of the existing literature. Her associates are Ph.D. graduates who have successfully completed their theses and can now guide other students and help them with the related pressures and quality guidelines. Angela has worked out a formula where she charges student clients $75 per hour and pays her associates $45, leaving her with a $30 gross profit (or gross margin) for every hour of work completed. Her customers are happy and her associates are happy. -With approximately 10 associates serving the company's clients,Angela was challenged by the leadership duties she had to perform.Originally,she thought it would be easier because they were professionals who were working independently.But what she found was that it was a bit like doing what Max Depree says in the book-that good leadership is a lot like leading a ________.

Ingrid has been working as a brand manager for a large multinational consumer goods company for the past 12 years.She is starting to get tired of working for someone else and wants to start her own company.Right now her job is giving her the opportunity to scan the industries her company is involved in and look for opportunities in areas her company cannot address quickly or is not interested in pursuing.She is being ________.

Research supports entrepreneurial innovation,but not all types of research are the same.Research that focuses on investigative activities that lead to discoveries which will fuel new products or procedures is known as ________.

Entrepreneurship is the process of starting a new business or organization in response to perceived opportunities.

A Mature Café (Scenario) Sarah has been operating and growing her café in an upscale neighbourhood for almost five years. She is happy with how the business has continued to increase in revenues as her customer base has become loyal over the years. She has just over 30 employees, two of whom are managers. The lease on the space is coming up for renewal and this has brought up the notion of leaving the business and exploring other interests she has in travelling through Africa and Southeast Asia. Sarah has worked hard and she wants to be sure she gets as much out of the business as she put into it. Another factor is the increasing competition in the area and the sinking feeling she has that it will be next to impossible to differentiate her business from the big chains opening on several street corners. Her fear is that her sales may have plateaued and there in fact will be a decrease in sales in the near future. -It is difficult for Sarah to sell her business,as it would be for many entrepreneurs.She has created it from nothing and sees all of her heart and soul in the venture.She has consoled herself that it is at least worth a lot of money-perhaps enough for her to retire on (and she is only 42).She needs to be sure she gets a(n)________ so she can decide clearly if it is worthwhile to sell the business.

As the entrepreneurial venture matures and the opportunity becomes clear,owners can look to increase financing from ________.

Because organizational change of any type can be disruptive and scary,an entrepreneur must support the change efforts by ________.

Large global businesses are at the forefront of job creation as small enterprises downsize their workforces.

Angela's Thesis Coaching Company (Scenario) Angela is finally starting to feel more at ease with her business. Six months since the launch of her Ph.D. Thesis Masters she is starting to see revenues climb and her associates are producing great work—and more importantly, her customers are happy. Ph.D. Thesis Masters (PTM) provides coaching and research services for masters and Ph.D. students working on their theses. Angela discovered that many students need help with much of the grunt work of formatting, meeting deadlines, and doing secondary research of the existing literature. Her associates are Ph.D. graduates who have successfully completed their theses and can now guide other students and help them with the related pressures and quality guidelines. Angela has worked out a formula where she charges student clients $75 per hour and pays her associates $45, leaving her with a $30 gross profit (or gross margin) for every hour of work completed. Her customers are happy and her associates are happy. -When she started the company,Angela wanted to be sure she could develop a loyal team of skilled thesis coaches and researchers.Without them being full-time employees,this can be difficult since she cannot guarantee them the hours they want.However,Angela was great at ________,getting them to join her team,by offering them a higher hourly rate and the freedom to work with other research companies.To ensure ________ in the long run,she offered them a potential partnership in the overall business-and this was attractive to some of her associates.

Imagine you are the entrepreneur behind a new wellness and yoga centre.Business planning has taken you about five months to complete.After that came the location development,construction of the wellness centre,and launching of the business.You are now in week 4 of the centre's operation and you are feeling a little tired from the seven-day weeks that have led up to this point.Thankfully you are noticing that revenues are about 15 percent above your most realistic projections.With a total staff of 17 (4 support staff and 13 wellness professionals and yoga teachers),you are realizing that a big part of your time is spent looking after people management issues.Which of the following is NOT a concern directly related to managing people?

In organizing a business venture,the entrepreneur must address four main issues: organizational design and structure,human resource management,how to stimulate and make changes,and the continuing importance of innovation.

One study showed that visionary companies financially outperformed nonvisionary ones six times over.

Launching an On-Line Yoga Studio (Scenario) Deborah was thinking about what it would take to launch her new business. Like many entrepreneurs, she had an idea and wanted to get started but really did not know where to begin—not to mention experiencing both the normal excitement and fear of launching a new enterprise. -As Deborah contemplates the possibility of launching her venture,she is likely to get caught up in the excitement of the startup.Fortunately she is getting good advice and is thinking about the three key facets of operating a new business: managing the various processes of the venture; managing people; and ________.

The main human resource challenge an entrepreneur faces is recruiting,ensuring they find the right people and bring them into the venture.After that,things start to take care of themselves.

Curiosity-driven research and applied research are essentially the same thing: both generate new knowledge that can be used in some practical or commercially driven way.

Entrepreneurs are able to perceive opportunities for profits by ________.