Strategic Exploration of Entrepreneurial Directions

An opportunity to explore entrepreneurial opportunities and

create a viable business plan

The Task• Appraise the Opportunities• Plan the Enterprise• Explore the Planning Process• Explore Knowledge Needs & Research• Explore Financial Issues & Strategy• Explore Marketing & Customer Strategy• Explore Operational & Resourcing Strategy• Fund the Enterprise

The Simulation

Initial Familiarisation

Appraising the Opportunities

Plan the Enterprise

Ratify your business plan

Compare and discuss

Prologue

A cross faculty project

Involving:– An engineering student– A mathematics student– A medical student

The product

The Cuddl-MD

A glorious failure!

Unfortunately it proved impossible to

• Sterilise the Cuddl-MD between children

And, even worse!

• Retrieve it after use

The opportunitiesThree opportunities were identified1. Early Learning

2. Companions

3. Autistic Children

The Business Situation

• Funding

• Clicks & Mortar Distribution

• Product & Manufacturing

• Marketing & Promotion

• Human Resources

• Physical Resources

FundingThe Students

Venture Capital• Aunt-E• Retired Business Person• Source of Advice

The Bank • Overdrafts & Loans

Clicks & Mortar

Via the web– Basic Information Only Site– Basic Credit Card Sales Site– Full Shopping Cart Site

Via retail outlets

Product & Manufacturing

Components– Soft toy– Electronics– Software– Instructions– Packaging

Manufacture

Marketing & Promotion• Direct Selling

• Advertising

• Public Relations

• Web Design

• Point of Sale Display

• Packaging

Human Resources• Executive

• Administrative

• Accounting

• Selling

• Production

Physical Resources

• Office Equipment• Production Equipment• Transportation• Accommodation

Learning ProcessPC there to:

– Provide opportunity research– Provide (if needed) business advice– Allow you to prepare plans– Provide comments about the plans

While you– Think, discuss and argue

The Tutor’s Role– Answer questions

Opportunity Research

Select what you wish to research from a listE.G.    Market Potentials

Web Pricing

Outlet Pricing

When you do this you will be provide some information and research details will be provided to the planning models.

Policy Advice

To support you and if necessary you can ask for business policy advice:

E.G. Promotion Policy Advice

Selling Policy Advice

Product Range Advice

But, on the other hand, you may know all about this!

Creating Plans

You can create several plans that cover:– Market to Serve– Finance– Marketing– Resources

These will be analysed and several reports produced forecasting the outcomes.

Comments

Besides your own analysis and appraisal of your plans you can ask “Aunt-E” to comment on elements of your plans:

E.G. Pricing Decisions

Promotion Decisions

Staffing Decisions

These comments are perceptions and not prescriptive.

Using the Computer

1. Choose a team name

2. Research & Plan

3. Simulate (get research and forecasts)

4. Repeat stages 2 & 3 (the planning cycle) until you are happy with the plan or time runs out!

Each planning cycle takes one month of simulated time.

Observations• it takes time to understand• but the opportunity must be analysed & planned• therefore your decisions will not be perfect• time will be a constraint

• by the end you may (just) have created a viable plan• your business skills will be challenged

• remember the purpose is to learn!• so, take time to reflect & review

(and consider your priorities and work)• and have fun!