Entrepreneurship Essays

By April 29, 2019Academic Papers
TABLE OF CONTENT
 
 
EFFECTUATION AND CAUSATION———————————————————-3 BUSINESS PLAN FOR IN-NOLOGIC———————————————————-6 DRAGONS’ DEN PRESENTATION———————————————————–14 REFERENCES————————————————————————————–16
 
 
TASK ONE
EFECTUATION AND CAUSATION
Introduction 
This essay’s focal points are two relative analysis underpinning two entrepreneurship central concepts; Causation and Effectuation. An awareness of the behaviours and actions of entrepreneurs is crucial in making entrepreneurial decision. Dew et al (2009) highly developed an appreciation of entrepreneurial processes by relating two discrete looms to creating new ventures: which are causation and effectuation. “Causation and effectuation are two alternative approaches that entrepreneurs use in the new venture development process” (Dew et al.; 2009). Effectuation and Causation Approach 
 
 
In Sarasvathy’s article (2001) she discusses causation and effectuation as different moves towards the creation process. Causation processes are consistent with designed strategy models (Mintzberg, 1978). The foundation of these models is based on the rational reasoning found in neo-classical micro-economics. Causation is basically about the continuous or constant planning and applying strategic approaches in its recognising opportunities and developing new business plans (Ansoff; 1988, Mintzberg; 1978 and Brews & Hunt; 1999). According to Sarasvathy (2001, Pg.245) “Causal processes is particularly effective as it is given and focuses on selecting between means”. To be able to do this, entrepreneurs need to follow a clearlydefined goals and paid “leadership opportunities within companies of industries developed to meet these objectives, evaluates and selects options to maximize expected returns” (Drucker, 1998). These activities include planning, analysis and running operator applicant of its pre-existing knowledge and resources. Though companies are always considered from inception, we cannot and can never predict the future but can only try to control it. In contrast, Sarasvathy (2001) proposes an effectuation model of entrepreneurship. She states that, under conditions of uncertainty, situations are unique to the extent that it is impossible to form a group from which to draw statistical inferences. The effectuation processes is consistent (Read S; 2008) and aligned with emergent (Mintzberg; 1978) and it is a non-predictive strategies (Wiltbank et al.; 2009). Uncertainty makes it almost practically not possible to portray inferences statistically in unique circumstances. With no feasible way of calculating expected return for any particular course at the moment, the case of entrepreneurs’ choice of action pushes entrepreneurs into selecting option based on loss affordability instead of analysing the alternatives and selecting that with the largest expected return. Entrepreneurs sustain flexibility by experimenting with the aim of exerting future control. Entrepreneurs accomplish by getting pre-commitments and associating with potential competitors, customers and suppliers. Sarasvathy (2001, Pg.245) states “Causal processes is particularly effective as it is given and focuses on selecting between means”. To be able to do this, entrepreneurs need to follow a clearly defined goals and paid “leadership opportunities within companies of industries developed to meet these objectives, evaluates and selects options to maximize expected returns” (Drucker; 1998). These activities include planning, analysis and running operator applicant of its pre-existing knowledge and resources. Though companies are always considered from inception, we cannot and can never predict the future but can only try to control it”. However, Sarasvathy (2001; Pg. 245) argues that the achievement take all measures as stated and pertains to selecting among potential effects that can be configured for that means. At inception, some methods to reach entrepreneurs could kick start the process of a new venture with common discharge of ambition to start up a new company; but the choice of the decision marker and the available information for decision makingplays a vital role in whatever choice of action to take. Bearing in mind that the future is uncertain, employers could approach different market places before deciding on what business model to apply. In so doing, the entrepreneur is able to create mechanisms that enable them to exercise some degree of rule over the end result. “To the extent that we can manage the future, you will not be able to provide “theoretical approach lies in the realization of the cognitive sciences, especially work that focuses framing business”. Sarasvathy (2001) empirically and conceptually showed that, “the effectiveness of logical monitoring employers is unlikely to attempt predicting the future and more liable to alter their earlier objectives and visions of new business”. Instead of trying to predict the future, are more prone to work with the resources to monitor and create alterations (Dew et al, 2009). Logically and effectively developed emerging objectives action plans are anchored on how someone operates, what they know and how they know it. Differences between causation and effectuation
 
 
There are four very major different approaches to the principle of effectuation / causation which is; The former is short term and focuses on experiences to identify business opportunities in the foreseeable future while the later is concerned with predicting an uncertain future to define in advance the ultimate goal. The former is anchored on projects in which the loss in the worst case is manageable while the later compares to maximize expected returns. The former operates with flexible environmental contingencies while the later exploits existing resources and capabilities. The former is preciously committed and partnerships to control an unpredictable future while the later compares with business plans and competitor analysis to predict an the future To conclude and to be able to move this study from a promising to an intermediary stage, it becomes very vital to build up and confirm quantitative measure. Wiltbank et al. (2009) considered this as they calculate the forecast and control factors of effectuation. To this, one should be able to construct method of additional extent of effectuation which is theoretically important but has not been build-up. These are very vital to the entrepreneur as it will give room Sarasvathy (2008) states “empirical measures to allow future researchers to study the antecedents and outcomes of causation and effectuation with largersample sizes that will allow statistical analysis and verification”. 
 
 
TASK TWO
 
 
BUSINESS PLAN FOR IN-NOLOGIC
 
 
I- INTRODUCTIOIN:
 
 
Joseph Schumpeter (193), states that an entrepreneur is the innovator who implements change within markets through the carrying out of new combinations. The carrying out of new combinations can take several forms; 1) the introduction of a new good or quality thereof, 2) the introduction of a new method of production, 3) the opening of a new market, 4) the conquest of a new source of supply of new materials or parts, 5) the carrying out of the new organization of any industry. Joseph Schumpeter equated entrepreneurship with the concept of innovation applied to a business context. As such, the entrepreneur moves the market away from equilibrium. Schumpter’s definition also emphasized the combination of resources. Yet, the managers of already established business are not entrepreneurs to Schumpeter. Business Plans are considered as means to obtain funds for new ventures from a bank or other lender, rather than a vital document for business itself (Stokes et al, 2010)
 
 
II- EXECUTIVE SUMMARY
 
 
Many advertisers in Cameroon have a problem of communicating because they have exhausted all the communication tools available and ready to exploit new and innovative advertising and communication tools. It is in this light that the idea of IN-NOLOGIC was created. IN-NOLOGIC is the acronym of INNOVATION TECHNOLOGY IN COMMUNICATION. It is a business created by some three Cameroonian business professionals. IN-NOLOGIC is a new Marketing and Communication company trying to setting up in Cameroon. We are at the face of bringing into the Cameroonian communication market a new medium of advertising and communication which is the ‘INTERACTIVE BILLBOARDS’. And we equally have well educated and professional team to carry out this business.We will be getting into partnership with some well renowned and prestigious who are known for interactive billboards, street marketing and advertising and freelance advertising like GALVASTEEL in France. IN-NOLOGIC is situated in the Capital of Cameroon, Yaoundé.
 
 
i- OBJECTIVES:
Our primary objective is to be the leader of the Interactive billboard form of advertising in Cameroon for at least the next 10 years since we are the first. To bring in new and more innovative form of communication into the Cameroon market in the next 5 years. To acquire at least 60% of the advertising and communication market in the next 5 years with our new and innovative tools we will be introducing in the market. To achieve at least 60% of profit by the end of the second year of business
 
 
ii- MISSION:
Our mission is to bring into the Cameroonian market new and innovative ideas in marketing and communication. Our first business is to introduce interactive Billboards into the Cameroonian market. With this new technologic way of doing outdoor advertising, we are prepared to get a very great share of Cameroonian market and to serve the Cameroonian communication and marketing market with a new phase of advertising.
 
 
III- INTERNAL AND EXTERNAL ANALYSIS OF IN-NOLOGIC
 
 
In this section we will be looking and analysing the company from its strength and weakness. The model we will use to analyse this will be the SWOT Strength:
IN-NOLOGIC is a new company with younger professional who are highly experience in the field of Marketing, Business and Communication. Our idea of Interactive billboards is the first of its kind in the Cameroonian market. We are in collaboration with Creative Agencies like ‘Voodoo’ and ‘Nelson’ gives an advantage for us to get adverts from their portfolio of clients. We are dynamic and Innovative.
 
 
Weakness:
We lack experience in the business and in the Cameroon Market. This is because we are still new in it. We will need to struggle to be able to get our portfolio of clients. Opportunity:
The new technology will be the first of its kind, therefore we will be able to get many clients This new technology will excite lots advertisers and they will be willing to try this new tool. Our collaboration with ‘Galvasteel’ in France who is one of the biggest companies fabricating interactive billboards. Above we are number in the business.
 
 
Threats:
The risk of having a competitor in the nearest future
Our inexperience in the business makes us a little weak
The risk of putting high prices to be able to launch our business.
 
 
IV- MARKETING AND SALES
 
 
Our main market for our business is the advertisers in Cameroon that is all the companies who are communicating and willing to communicate. We will be applying the following strategies to be able to market out business. We will be applying the 7Ps of mix marketing. Product: For the start, we are setting up 8 billboards in the two major cities in Cameroon. Our product is of high quality and it is first of its kind in Cameroon. It is the latest technology in the world in terms of billboard or outdoor advertising. Price: We will be setting our prices for the start at minimal and affordable rate such that we will attract many advertisers. And given the fact we are just starting and new in the business, we will like to make the price affordable so as to give the chance for all companies to advertisers and thereby building our portfolio of clients. Place: This product will be available at 8 strategic positions in Douala and Yaoundé. Access to these billboards will be available in our offices in these two towns. Promotion:  
 
 
Advertising: we shall be using various advertising means to be able to portray our product. First of all we will be advertising through our billboards. Once the billboards have been planted in our strategic positions, we will start advertising our company on it. Written Press: Herewe will be using News papers like Cameroon Tribune, Le ‘messager’ and ‘The Post News’. And we will be using Peoples’ magazines like ‘Nyanga’ and ‘Ngola’. We will be buying advertising spaces and advertising our product in them. Internet: We shall be advertising on facebook and many other social media. We will equally advertise on our own company website and in other professional websites. Special Offer: we shall be giving some special offers to our first five advertisers. We will be giving them some weeks of free advertising on our billboards. People: We are well trained and qualified in the field of marketing and Communication. And for the start we will be operating this business just three of us the founders because it is still at the baby stage. We will probably acquire more staff when the business most has grown bigger. Processes: We will build a form of feedback on our website were our clients can write their opinion about our products. We shall always hand questionnaires to our customers after a business deal to know their satisfaction with our product. Physical Evidence: we will be setting up two offices, one in Douala and the other in Yaoundé. This will enable us be able to run the business in these two towns. 
 
 
V- MARKET ANALYSIS:
 
 
External Analysis:
 
 
When looking at the Cameroonian market today we will be analysing it using the PESTLE and SWOT model to be able determine both our internal and external market.
 
 
Political: Political the country is very stable our business has no problem with the government as we are following all the legal means to establish our business. It is not in any way bridging any political policies. Economic: At the begin of this business, we will working under the Cameroonian economic law which states that every new business has about 2 years to operate tax free. So this will enable us to be able to function smoothly. Social: It is going to be accepted by the Cameroonian marketing and communication companies because it will be good way for them to reach to their targets more efficiently. And our new form of advertising is going tobe very pleasant to the general public because they will be fascinated with the new advertising tool. Technology: This will be the latest form of advertising in Cameroon. It will be widely accepted by companies who will want to exploit this medium. Legal: Our business is legally accepted by the Cameroonian communication law especially as we are bringing in the latest technology in the world. Environmental: Our business has no negative impact to the environment as we are will not be destroying any form of nature. On the other hand we will be beautifying the environment with our Billboards and making the streets more modern.
 
 
VI- COMPETITORS:
As a new business we have three main competitors who have a great influence to the success of our company. These competitors have a good experience in the Cameroon market. We will be using Porter’s Five Forces. Supplier Power: At this beginning we have just one supplier who is Galvasteel in France. They provide us with the interactive billboards. We are at the moment still looking to get into collaboration with other suppliers to be able to get choices. So our supplier has monopoly over us now. Buyer Power: Our buyers are mainly our clients. At the moment, we have just one product and our clients don’t have choices. And equally we are the first and only one with this new technology so therefore our clients have to follow our regulations. Competitive Rivalry: Fortunately for us we are the only are the only company with this technology so we have monopoly over the market. Threat of substitution: We have a very big threat because since the technology is new in the market, we are not yet very sure of our clients are going to welcome it. They might decide to stick to their traditional way of advertising on billboards. Threat of new entry: We are equally threatened by the fact that we may have other companies who might want to invest in our kind of product. So we need to do our best to keep a good customer relationship with our clients. We have equally analysed our direct competitors personally to be able to help us reinforce or prepare us better for the business as shown below. Global Outdoor System
 
 
Strength: they have a long success in advertising sector in Cameroon and they have a good mastery of the environment. They have offices nationwide andwork with a wide range of companies. Weakness: Their prices are very high and they lack innovative ideas and mediums in this sector as compare to us.
 
 
Media Plus
Strength: They sometimes offer free advertising space for their clients and they have a good portfolio of very big and influential advertisers in Cameroon like MTN, Orange and Nestle. Weakness: They lack professionals in this field and most of their project they always hire professionals from different communication agencies.
 
 
Agenda
Strength: They have as clients very big and influential advertisers like Guinness and Coca cola. They equally have experience in other African countries as they have offices in Gabon, Nigeria and South Africa. Weakness: They don’t have innovative ideas and they lack loyal staffs as many of their staffs resign and they are always recruiting.
 
 
After examining our competitors, the greatest strength we have over them is the new technology we are introducing into the market which they don’t have.
 
 
VII- PRODUCT AND SERVICE DESCRIPTION
 
 
Our company will be providing new and innovative advertising spaces to advertisers to portray their products and services nationally. We will be having two format dimensions of billboards we will be offering. 300m X 250m 
 
 
250m X 250m 
These are the two different formats we will be offering. So advertisers will have to structure their adverts to this format. Structure:
Our billboards are built solely with the solar system technology. It will be powered by it and it is this is how it is structured. It has 1 to 12 solar system module and can withstand any degree of power. Its batteries capacity is proportional to the monitor.
 
 
The board will be using 200w bulb to light up.
It has a monitor of to diffuse the images with the above dimensions. It has a hard drive which will be carrying all the advertising information for the billboards and will be situated at the bottom of the board. All adverts will be direct through our wireless interaction with the billboards from our offices. And it will have some security box to enclose all the electrical components.
 
 
VIII- ORGANISATION AND MANAGEMENT 
 
 
This company is created by three Cameroonian business professionals who have decided to take a business venture into the field of Marketing and Communication and the new enterprise they are setting up called IN-NOLOGIC is basically going to be dealing with Interactive billboards. The structure of our business is shown in or Organisational chart below;
 
 
i- FINANCIAL DIRECTOR:
This post will be headed by Miss Egbe Emily. She has a BA in Finance and an MBA in Finance so she well suited for this post as her academic qualification makes her well qualified for it. Her role is to manage all financial aspects of the company and to analysis and check all financial dealings of the company.
 
 
ii- MARKETING AND COMMUNICATION MANAGER:
This post will be head by Mr. Mbongho Junior. He has a BA in Communication, specialised in Advertising and an MBA in International Marketing Management. He too is well qualified for this post as he is not only one of the CEOs but also has the skills to be able to carry out this job. His role will be to take care of the Marketing and Communication of our product and making sure the products gets to the consumers.
 
 
iii- TECHNICAL DIRECTOR:
It will be headed by Mr. Tanga Olivier. He has a BA in Electrical Engineering and an MBA in International Business. With his qualification, he will be able to direct all technical aspect of our company. His role is to make sure all the billboards are well fitted and put at strategic targeted positions.And to make sure these billboards work well.
 
 
With the background the founders have we are very qualified and skilled to carry out this business. Because our company is at is baby stage, we will be setting up two offices in Cameroon. We will be setting up an office in Yaoundé which is the political capital and Douala which is the economic capital of Cameroon. For the start we will start off with 8 billboards which will be planted in strategic positions in these towns.
 
 
IX- FINANCIAL PROJECTION
 
 
PROJECT
RESOURCES
Acquisition of 8 interactive billboards is 40.000.000 FCFA 
Installation price is 4.000.000 FCFA
Transportation is 300.00 FCFA
Legal procedures to establish is 10.000.000 FCFA
Acquisition of all documentation machines and files is 300.000 FCFA Communication Cost is 300.000 FCFA
Miscellaneous is about 6.000.000 FCFA 
Every member has to bring a contribution of 15.000.000 FCFA which will sum up to 45.000.000 FCFA. Loan from bank is 20.400.000 FCFA
TOTAL 60.900.000 FCFA
TOTAL 60.900.000 FCFA
 
 
TASK THREE
 
 
BUSINESS PLAN PRESENTATION IN DRAGONS’ DEN PROGRAM
 
 
Good Evening Ladies and Gentle, we are Mbongho Junior, Olivier Tanga and Egbe Emily. We are CEOs of a new Marketing and Communication company IN-NOLOGIC. We all have a Master in Business Administration in Finance, Marketing and in International Business. We decided to bring this idea to the Cameroon market because we saw the need for a new and innovative way of billboard adverts instead of the traditional pasting. Since we have studied in Europe,we have since these billboards and have been one way or another fascinated with it. We have decided to bring into the Cameroonian market a new product which will entice a lot of consumers. Our product is the Interactive billboards. There are a lot of new companies in Cameroon and many more are coming into the market. Many of which are international companies and the need to communicate is rising. That is why IN-NOLOGIC has come up with this new and innovative idea to the Cameroon market. At the moment IN-NOLOGIC is the only company with that idea ready to implement. Right now we will want the Dragons to give us 20.000.000 FCFA and we will give them 15 % share of the Company. This money we need is to enable us be able to buy the billboards from one of the greatest manufacturers it in France (Galvasteeel) whom we are already in partnership with. We will be using the Cost-plus pricing method to fix our prices so as to maximise a lot of profit. 
 
 
Business Opportunity:
First the greatest opportunity we have is that we have a monopoly of the market since we are the only ones with this new idea. Furthermore, due to the two year of tax free law from the government, we will be able to a great share of the market. This idea is new so we expect most of the international companies to use these interactive billboards because not only does it have images, it equally has sound. This will attract a lot of attention of the general public thereby reaching the advertisers’ target audience. We have set objectives below which will guide us to be able to run this business successfully. To bring in new and more innovative form of communication into the Cameroon market in the next 5 years. To have a 60% turnover at the end of the first year.
 
 
To achieve at least 60% of profit by the end of the second year Thank you all for your kind attention.
 
 
Expected Questions from Dragons
Question: How are we sure you business will work since it the first of its kind in your country? Answer: The economic situation in Cameroon is getting better as many foreign investors and companies are coming in everyday. These are ready market for our business. Almost all companies especiallyinternational ones always communicate and they will be very willing to use a new medium which is more effective than the tradition one. Thank You.
 
 
REFERENCES
 
 
Allen K (2003), “Launching New Ventures: An Entrepreneurial Approach”, Houghton Mifflin, Boston MA Ansoff H I (1988), “The New Corporate Strategy”, Wiley, New York Ansoff, H.I., 1988. The New Corporate Strategy. Wiley, New York. Brews, P.J., Hunt, M.R., (1999), “Learning to plan and planning to learn: resolving the planning school/learning school debate”, Strategic Management Journal 20 (10) Browne M W and Cudeck R (1993), “Alternative ways of assessing model” fit. In: Bollen K A, Long J S (Eds.), “Testing Structural Equation Models”: Sage, Newbury Park Chandler, DeTienne, McKelvie & Mumford (2008), “the role of social skills in the entrepreneurial style effectuation and causation”, … Dew N, Read S, Sarasvathy S D and Wiltbank R (2009), “Effectual Versus predictive logics in entrepreneurial decision-making” Journal of business venturing 287-309 Drucker P (1998), “The discipline of Innovation”, The Harvard Business Review: 149-157 Gaylen N Chandler, Dawn R DeTienne, Alexander McKelvie, Troy V Mumford (2011), “Causation and effectuation processes: A validation study”, Wichita State University: Crouse Avenue, Syracuse NY 13244-2130, United States Mintzberg; 1978, “The pattern in strategy formation”, management science; 934-948 Sarasvathy S D (2001), “Causation and Effectuation: towards a theoretical shift from economic inevitability to entrepreneurial contingency”, the academy of management review; 243-263 www.thwink.org 
 
 
Joseph A. Schumpeter (2012). ‘Capitalism, Socialism and Democracy’. Routledge Stock and Wilson (2010). ‘Handbook of Entrepreneurship Research’ An Interdisciplinary Survey and Introduction. Springer Frank Hyneman Knight (2002). ‘Risk, Uncertainty and Profit’. Beard Books John Howkins (2002). ‘The Creative Economy’ How People Make Money from Ideas. Penguin UK. http://notesdesk.com
 
 

 

Originally posted 2017-11-23 22:08:50.

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