Introduction to Entrepreneurship Assignment | Get Paper Help
This essay is the culmination of all you have learned in the course and should be written in an argumentative form. This is the form you will primarily use in the majority of your essays at the university. Take a specific side to a given topic and prove your thesis, based on the research you conduct.
Along with the other requirements already discussed involving academic papers, this essay should, at a minimum, include:
• a proper title which reflects the thesis
• an argumentative tone
• proper structure and paragraphs (including introduction and conclusion)
• a minimum of two peer-reviewed journals
• proper documentation of secondary source material
• be 3-4 pages double-spaced
What is the effect of outsourcing on the Canadian economy?
How should the federal government deal with the issues in the Canadian north? Consider mineral rights, the Northwest Passage, water or any other aspect you wish to explore.
Do public/private partnerships work for the taxpayers of a given sector?
Are Canada’s Olympic athletes properly trained and economically supported?
Is President Trump correct when he argues that coal is a sustainable resource?
Are boycotts/political interventions acceptable/ effective or not?
Is Canada a multicultural society? Choose one specific aspect and argue it through.
Many experts say it is time to introduce alternative forms of energy into our daily lives. Choose one sector of the economy and show how this could, or could not, be effective.
Is the Gateway/Keystone pipeline a positive or negative venture for the future of Canada?
Is foreign aid effective?
Choose a topic of your own design.
For this assignment, you must utilize and properly document at least two peer-reviewed journal sources. Proper documentation is expected.
Baking was done traditionally by women are home, generally for family needs. People used to bake commercially in restaurants and bakeries. Sweet and savoury pastry and bread in particular are one of the essential elements of our daily diet. The demand for baked food products motivates to try this business.
Yummy organic bakery private limited company was registered in Maldives to provide customers freshly prepared bakery products. The business initially will be small with five employees, who will include a business manager, two bakers, a sales representative, and an accountant. All the employees working in a specific position will be professional in their specific areas. Size of the bakery will be 1500 square feet, located in Addu City, Maldives. The area where I intend to start the business will be near schools and offices, which makes it a better hotspot for the business to run.
Addu City has a pleasant business environment, which will support small business to grow. The business will operate in the food industry, which is one of the essential industries. However, the business should expect too much competition in the market. In Addu City, there are many small and commercial bakers.
For Yummy Organic Bakery private limited to enter the market, it needs to have a competitive edge, so that it may attract as many customers as possible to the market. Aslam & Café’ is among the key competitors who have been in operation for a long time and can be a possible competitor for the business.
Some of the products that the business will offer include birthday, wedding cakes, cupcakes, muffins, bagels, sandwiches, wraps, buns, and rolls, etc. Our main customers will be all age groups mostly between 08-45 years age group. Our target market includes people who are health conscious and people with food allergies. Most bakeries do not carter to these needs because of high fiber diets.
Table of Contents
1.0 Introduction 4
2.0 Business Models 5
2.1 Brick and Motor model 5
2.2 Manufacturer Business Model 5
2.3 Retailer Business Model 6
2.4 Selected Business models (Brick and mortar) and justification 6
3.0 Growth strategies 7
3.1 Pricing strategy 7
3.2 Promotional strategies 8
3.3 Product Expansion strategy 8
4.0 Business Motives 10
4.1 Motives for stating the business 10
4.2 Reason for business success 10
5.0 Legal Issues 11
5.1 Explaining the legal issues 11
5.2. Main legal issues 12
6.0 Conclusion 13
7.0 References 14
Starting a new business is an overwhelming experience, and the choices that one makes at the beginning determine the success of the business in the long run. Yummy Organic Bakery private limited is a food business that will operate in the food industry. The business involves selling cakes and confectionaries in retail. The business will operate using the brick and mortar model, which involves interacting with the customer in an owned or rented store. This model is suitable for this business as it allows the business owner to interact with customers. Moreover, acquires insights about what needs to be changed or added to the business to make it more effective.
The bakery will use three growth strategies to attract more customers and maximize sales. Pricing strategy will involve setting prices lower than those in the market without compromising the value of the product.
The business will also use promotional growth strategies, which involves creating demands for products sold. The third growth strategy will be product expansion. As time progresses, Yummy bakery will create new products to reach a broader market. Some factors taken into consideration are having qualified employees, using leadership skills to control activities within the business and involving employees in making significant decisions pertaining to the business. To ensure that the business operates successfully, it is crucial to ensure that it meets all legal requirements such as having the right permits, getting a business license, and complying with requirements regarding employee rights. Overall, the strategies that Yummy Organic Bakery has put in place will help the business to grow into a successful venture.
(264 words )
2.0 Business Models
2.1 Brick and Motor model
Brick and Motor is a business model where it offers products and services to its customers face-to-face in a setting such as an office or a store. Space which the business owner uses could be rented or owned. Some examples of brick-and-mortar businesses include grocery stores and corner banks. The model is often referred to as the traditional business model since it has been in existence for a long time. People have always preferred looking for and purchasing products and services from physical shops. The reason behind this preference is that customers prefer to speak with the employees and make inquiries regarding the products and services that the business offers (Saleem 2017, p. 15). Importantly, customers get an experience shopping where they can test products such as electronics to avoid disappointments when they take their products home. This model also offers customers the perception of trust. Most people have trust issues when using their credit cards online; hence, they associate brick-and-mortar with legitimacy. Even though this business model has a wide range of advantages, some of its disadvantages include the cost of leasing space and utility bills such as electricity and water. Overall, brick-and-mortar is a business model that one should consider since it has benefits to both the customers and the business owner.
2.2 Manufacturer Business Model
In the manufacturer business model, the business utilizes raw materials to create products for sale. This type of business may sell its products directly to its customers; an approach referred to as a business-to-customer model. Moreover, a business may use the alternative of outsourcing its sales aspect of the process to another company, which is referred to as a business-to-business model. This business may decide to be a wholesaling manufacturer that sells its products to retailers who then resell the products to its customers. With the right technology, a manufacturers business can increase its productivity and increase its profits significantly. The reason this business model is effective is that it reduces the overall production time to reduce the cost of production.
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2.3 Retailer Business Model
A retailer business model is the one where a retailing business will purchase its products from a wholesaler or a distributing company and then resale the products to customers. The retailers may consider the brick-and-mortar approach to sell the goals or use online platforms. One of the reasons why this business model is efficient in that the retailer does not have to incur the costs involves in production.
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2.4 Selected Business models (Brick and mortar) and justification
The preferable business model for Yummy Organic Bakery private limited is brick-and-mortar. The reason I prefer this model as it enables face to face interactions with the customer. It will also help in receiving feedback about the products which can be useful in further diversifying products to the needs of the customers. The business will also offer space for customers who do not want to take away their products but would want to consume them immediately after purchasing. This is only possible if the business operates on the brick-and-mortar model. Overall, I prefer the brick-and-mortar business model since it will help my business to give customers a good experience through interaction with employees.
3.0 Growth strategies
3.1 Pricing strategy
Penetration pricing is a potential growth penetration strategy that I can use to enhance the growth of Yummy Organic Bakery. This type of growth strategy is where the new business will set the prices of its products lower than the higher prices in the market so that it can attain a dominant market share (Sigurdardottir and Candi 2019, p. 55). This marketing strategy is effective more so for businesses who want to enter the market just like Yummy Organic Bakery. When the business is starting, it will have a small market share; hence, the marketing strategy will help to build it. The bakery products are highly elastic, which means that they are sensitive to price. Hence, buyers will be attracted to the products if the bakery sells them at a lower price than the businesses around them. The strategy will help in increasing the business sales volume and reducing the cost per unit (Kampker, Achim, Philip and Benedikt 2018, p. 1082). Overall, pricing is a growth strategy that Yummy Organic Bakery may use to promote growth. The strategy involves setting the prices of the products lower than those of competitors in the bid to increase sales volume. While choosing this type of growth strategy, the company needs to realize that the approach is complex and sophisticated. There are many aspects that Yummy Organic Bakery should consider while utilizing this strategy, and they include the cost of production and customer attitudes. Otherwise, the business might set a low price for its products and end up making losses in the long run. (263 words )
3.2 Promotional strategies
The other growth strategy that the organic bakery may incorporate in its practice is the use of promotional strategies, which are referred often as pull and push strategies. Push promotional strategy is the approach where the business sales force and promotion activities help in creating a demand for the products being offered (Kampker, Achim, Philip and Benedikt 2018, p. 1082). Personal selling and trade promotions are examples of practical promotional tools that Yummy Organic Bakery should consider since it will ensure that the business sells in high volumes. This strategy involves selling directly to customers and bypassing other distribution channels. Consumer promotions and traditional or digital advertising are promotional tools that this startup business may consider to draw more customers to the business and boost sales.
Pull selling strategy will require that the business spends on advertisement and customer promotion significantly. By doing so, Yummy Organic Bakery will build up customer demand for its commodities. Never should a business regret spending on promotional approaches. For instance, without promotion, it will take a while before the public learns about the startup. The company should consider both traditional and digital promotional strategies to reach as many potential customers as possible (Sigurdardottir and Candi 2019, p. 55). The approach will also help in brand awareness and building the company reputation. Overall, this startup is less likely to be successful without promotion as a growth strategy. The strategy will help in creating brand awareness and boosting sales in the short and long run. (251 words )
3.3 Product Expansion strategy
Product and service diversification is an essential approach that helps a business to grow significantly. As the business grows, business looks for potential products that it may consider adding in its line to meet growing customer needs (Saleem 2017, p.16). For instance, the baking sector is diverse, and through creativity and innovation, a baker may create new products. When Yummy Organic Bakery is starting, it will not commence by baking everything that a baker can. Instead, the business will start by baking a small variety of products and increase as the business grows. One of the importance of product expansion is that people will always want to taste something new in the market (Sigurdardottir and Candi 2019, p. 55). If they are used to what has been offered for a long time, they are likely to get bored. Hence, they will leave the business to look for customer satisfaction in other similar businesses. Product expansion is also an approach to ensuring that the business maintains high sales in the market.
One strategy that this startup can use to expand its products is by penetrating new markets. For instance, Yummy Organic Bakery may consider taking its products to other islands within the Addu City. The company may consider opening a new store to reach as many customers within the Addu city and increase its sales. As mentioned earlier, product diversification will also help the business to not only attract more customers but also increase its sales and profits in the long run. Overall, product expansion is a significant growth strategy that will help a business to grow. (266 words )
4.0 Business Motives
4.1 Motives for stating the business
I have always wanted to be self-employed for a long time. Since I possess a wide range of talents, it has taken me quite a while to decide the type of business that I want. One of the motives for pursuing this business is that it will help me to put into practice the baking skills that I have. I have perfected the baking art since I was a child. Having baked for my family for two decades, I decided that it is about time I used the skills to earn a living. The other motive for starting this business is the desire to create employment. With the high number of people graduating from colleges and universities, the job market is crowded. Instead of being one of the unemployed graduates in the market, I decided to create a business and employ five people. If every other young person did that, it would help to solve the problem of joblessness. (159 words )
4.2 Reason for business success
The other motive for starting Yummy Organic Bakery is to continue my grandmothers legacy. My grandmother was a baker in Addu City, and even though she did not do it as a business, her neighbors and friends and people enjoyed her cakes and confectionary. Moreover, she is the one who taught me how to bake and helped me to perfect the art. My motive for this business is to honor her and let my business be a reminder of what she did for the community. Finally, my motive is to fulfil my personal goal. While growing up, one of my goals had always been starting my business. I have tried employment, and even though I like the experience, it does not give me the fulfilment that I expect from my own business. It will help to get me out of my comfort zone and give a sense of responsibility. I want to be able to help my family to settle their bills, pay rents and my parent’s medical insurance. Overall, the motive for this business is to fulfil my personal and financial goals.
Yummy Organic Bakery will be successful for various reasons. The first reason is that I possess entrepreneurial knowledge and skills. I have done an entrepreneurial short course, which has taught me how to run a startup. Through the course, I learned basic bookkeeping, human resource management, among other basic knowledge and skills that an entrepreneur should have. The second reason I am confident that this business will be successful is that I possess interpersonal skills that are vital in a business (Kampker, Achim, Philip and Benedikt 2018, p. 1084). I have excellent leadership skills, which I will use to navigate my team to success. I trust my communication skills as well, and they will help me to build a good relationship with my employees. Even though I will have authority as a business owner, I want to operate my business from a democratic perspective. Meaning that my employees and I will be open to each other so that we can share ideas that will help the business to succeed.
Moreover, I am a hardworking individual who only rests when all work is done. I will hire people to work in my business, but I will ensure that I am present at all times. My presence will not only help to reduce the workload that will be there, but I will also get the opportunity to monitor my business closely. Overall, I do not doubt that my business will succeed since I have all the knowledge and skills that I need to ensure that every activity within the business operates as expected. My complete presence at my business will help me to monitor daily activities so that I can make the necessary changes whenever they are needed. (472 words )
5.0 Legal Issues
5.1 Explaining the legal issues
When one starts to run a small business, things may get complicated since he or she might be faced with a plethora of issues and decisions that most individuals never have to consider. For Yummy Organic Bakery, legal inconveniences may be unavoidable.
5.2. Main legal issues
One of the legal issues that the business will face is licensing. If the business risks running the business without the necessary licenses, it will be charged fees that can be avoided if the business complies with what is expected as far as running a business is concerned (Volkhardt, Christen, Stangl, Braun, Lorkowski and Meier 2017, p. 100).
Trademarks are another legal issue that Yummy Organic Bakery is likely to encounter while starting its business. It is against the law for a business to have a name that already exists in the market. A business can sue the Yummy Organic Bakery for using its name to operate in Addu city.
The business is also likely to face employee termination legal issues, which is a common issue faced by many businesses all over the world. This bakery may hire someone who may present him or herself as qualified for the job (Volkhardt et al 2017, p. 100). However, after hiring, the business realizes that the employee is not as competent as he presents himself. Firing the employee may cause him or her to sue Yummy Organic Bakeries, mainly if he or she is laid off under unclear explanations.
The other crucial legal issue that this food business might face is an issue to do with public health. The bakery may face legal charges for operating a business without the necessary health documentation. This is among the most important legal requirement since food is a sensitive product that should be handled with ultimate care. (250 words )
The yummy organic bakery is a new business venture that will operate in Addu city, Hithadhoo.
The business will operate in the food industry to provide baked wheat products to its customers. The business will be small since it will involve only five employees. Brick-and-Mortar is the business model that this business will use. The model involves customers coming to the store to purchase their products.
I am confident that this business will work out since I possess the knowledge that an entrepreneur requires to run a successful business. Nonetheless, I possess interpersonal skills that will help in building a close relationship with the customers and employees. The business will involve three growth strategies, namely, promotional, product expansion, and pricing strategies. All these strategies will aim at enhancing sales and maximizing profits. Yummy Organic Bakery should be ready to face the legal issues associated with starting a new business such as trademark, licensing, employee termination, among others. Adhering to the expected regulations will help the startup to operate effectively. ( 170 words )
Kampker, Achim, Philipp Jussen, and Benedikt Moser. “Industrial smart services: types of smart service business models in the digitalized agriculture.” In 2018 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM), pp. 1081-1085. IEEE, 2018.
Saleem, M.A., 2017. The impact of socio-economic factors on small business success. Geografia-Malaysian Journal of society and space, 8(1).
Sigurdardottir, M.S. and Candi, M., 2019. Growth strategies in creative industries. Creativity and Innovation Management.
Volkhardt, I., Christen, O., Stangl, G.I., Braun, P.G., Lorkowski, S. and Meier, T., 2017. Legal aspects regarding product innovations in the food sector. Ernahrungs Umschau, 64(11), pp.158-165.