In contrast, some people are attracted to entrepre- neurship by the advantages of starting a business. No one reason is more valid than another; none guar- These include: antee success. They make hard work, can lead to a very engaging and profitable the decisions. They choose whom to do business endeavor. They decide what hours to work, as well as what to pay and whether to take vacations. Decisions and Downfalls E ntrepreneurship is an attractive career choice.
In contrast, a business? Is it money alone? Should the person start alone or with the product or service? Is the plan to compete partners?
Price is im- portant, but most economists agree that it is ex- Answers to these questions are not empirically right tremely risky to compete on price alone. Large or wrong. An entrepreneur gathers as vantage in lowering costs. Entre- ness with caution—to be a person of action who does preneurs often underestimate start-up costs and not procrastinate before seizing an opportunity—and overestimate sales revenues in their business plans.
Only duce the risks of the new endeavor. Go It Alone or Team Up? O ne important choice that new entrepre- of Technology MIT reported that technology neurs have to make is whether to start a companies formed by entrepreneurial teams have a business alone or with other entrepreneurs. Entrepreneurs of different ages can create comple- In the United States, for instance, studies show that mentary teams also.
Often the people know realism. In , for example, Marc Andreessen was a each other well; in fact, it is common for teams to be talented, young computer scientist with an innovative spouses. James Clark, the founder and chairman of Sili- con Graphics, saw his vision. Together they created There are many advantages to starting a firm with Netscape Navigator, the Internet-browsing computer other entrepreneurs. Team members share decision- software that transformed personal computing.
They can also give each other emotional support, which can But entrepreneurial teams have potential disad- help reduce individual stress. First, teams share ownership. In general, entrepreneurs should not offer to share Companies formed by teams have somewhat lower ownership unless the potential partner can make a risks.
If one of the founders is unavailable to handle significant contribution to the venture. Teams share control in making decisions. This Team interactions often generate creativity. Mem- may create a problem if a team member has poor bers of a team can bounce ideas off each other and judgment or work habits.
Most teams eventually experience serious conflict. Studies show that investors and banks seem to pre- This may involve management plans, operational fer financing new businesses started by more than procedures, or future goals. It may stem from an one entrepreneur. This alone may justify forming a unequal commitment of time or a personality clash. Sometimes such conflicts can be resolved; in oth- ers, a conflict can even lead to selling the company Other important benefits of teaming come from com- or, worse, to its failure.
In the best situations, team members have complementary skills. It is important for a new entrepreneur to be aware of One may be experienced in engineering, for example, potential problems while considering the advantag- and the other may be an expert in promotion. In general, the benefits of teaming outweigh the risks.
In general, strong teams have a better chance at success. Choosing a Product and a Market A prospective entrepreneur needs to come Business ideas usually fit into one of four catego- up with a good idea. This will serve as the ries that were described by H. Igor Ansoff in the foundation of the new venture. This is a difficult approach for a start-up to fill it.
Other times an entrepreneur gets an idea operation. It means winning over consumers for a product or service and tries to find a market for through merchandising appeal, advertising, etc. A Scottish engineer working at General Electric Entry costs are high, and profit is uncertain. Research, It requires the most research and planning.
If timing, and a little luck transform commonplace successful, however, it has the most potential for ideas into successful businesses. In , Chuck new business and can be extremely profitable.
Burkett launched a firm to make an ordinary prod- uct, novelty key chains. For example, entrepreneur- achieved tremendous success. Read a lot, American Greetings—the major greeting-card talk to people, and consider such questions as: What makers—to compete in an existing market. What would you like that is not available? The new market could be a different country, region, or market niche. In Australia in , two entrepre- offices, or who sell them on the Internet, are also neurs founded Aussie Pet Mobile Inc.
It is shopping or are too busy to do so. The last two categories have moderate risk, but Is society changing? What groups have unfulfilled product and market research can reduce it. They needs? Growing also offer opportunities for utilizing effective demand for healthy snacks created many business start-up strategies—innovation, differentiation, opportunities in the United States, for example.
Entry Strategies for New Ventures I t is easy to be captivated by the promise of may satisfy customer needs better than larger entrepreneurship and the lure of becoming competitors can. It can be difficult, however, for a prospective entrepreneur to determine what Changes in population characteristics may cre- product or service to provide.
Many factors need ate opportunities to serve niche markets. Then it is important to es include groups defined by interests or lifestyle, ask: Why would a consumer choose to buy goods such as fitness enthusiasts, adventure-travel buffs, or services from this new firm? Visionary business ex- pert Peter F.
New ventures tend to be small. Large mance. Pioneering or radical innovation by producing large quantities. Incremental inno- Successful entrepreneurs often distinguish their vations are modifications of existing products. But innovation occurs in all aspects of businesses, from manufacturing processes to pricing policy. It may be ated in developed countries. Drucker called this smaller, lighter, easier to use or install, etc.
Its first product was a how an innovation can be applied, used, or sold single-unit personal computer with a handle. By focusing on a fairly narrow market sector, a new venture U. Marketing Is Selling M arketing is often defined as all the activities Company-employed sales people can be effective for involved in the transfer of goods from the a new venture, particularly one aimed at a fairly narrow producer to the consumer, including adver- market.
Direct sales conducted by mail order or on the tising, shipping, storing, and selling. For a new business, Internet are less expensive options that can be equally however, marketing means selling. Without paying successful.
External channels also can be used. Intermediaries, such as agents or distributors, can be hired to market How does a new business get orders? Before launching a product or service. Such individuals must be treated the business, the entrepreneur should research the tar- fairly and paid promptly. Some analysts advise treating get market and analyze competitive products. Newspaper, magazine, television, and radio ad- the United States. A less expensive option is printing fliers, which can be mailed to potential customers, handed An entrepreneur can also develop a file of potential out door to door, or displayed in businesses that permit customers, for example, by collecting names or mail- it.
New companies can also compose new product re- ing lists from local churches, schools, and community leases, which trade magazines usually publish without groups or other organizations. This file can be used lat- charge. It is important to be listed in local telephone directo- ries that group similar businesses under a single head- After the new firm is launched, its owners need to get ing, such as the Yellow Pages in the United States.
It is information about their product or service to as many also useful to be listed on Internet search engines such potential customers as possible—efficiently, effectively, as Google or Yahoo, which are used by consumers for and within the constraints of a budget. This is the Publicity is also an extremely valuable way to promote person with the vision, the one who knows the advan- a new product or service.
New firms should send press tages of the new venture and who can make quick deci- releases to media outlets. A local newspaper might sions. Many famous entrepreneurs, such as Bill Gates publish a feature about the startup. A TV or radio sta- at Microsoft, have been gifted at selling their products.
Dot net. Many of its features can been registered. Good business Web site names are easy to remember be used to shape a new business. Communications: An entrepreneur must communicate with many The entrepreneur also needs a piece of property in cyberspace, where people—suppliers, distributors, and customers, for example. A quick her Web site will reside. Various forms of computer software are avail- able to protect documents from unauthorized access or alteration so Web site promotion is critical.
A Web site address can be put on busi- that they can be securely shared and easily authenticated. Or, an entrepreneur can pay to place a colorful advertisement on Research: Starting a business takes lots of research.
An entrepreneur non-competitive Web sites, such as ones for complementary prod- can find information on almost any subject very rapidly by using the ucts. The Web is a collection of text and mul- Web site. Many government agencies, universities, organizations, and businesses pro- Entrepreneurs also can provide information about their Web sites to vide information on the Internet, usually at no cost. For a fee, most search engines will promote a Web site when a selected set of search terms is used.
Online The easiest way to find information on the Web is by using a search en- shoppers, for instance, often use search engines to find businesses that gine—a data retrieval system. The user types key words for a subject on provide specific products and services. The items are linked electronically to the actual Safe Use: Just as shopkeepers lock their storefronts, entrepreneurs documents so that Internet users can read them on their computer who use the Internet need to take steps to keep their computer sys- screens.
Among the most popular search engines are Yahoo! One of the most effective steps is installing security software. Another is setting up an Internet firewall to screen and block undesired traffic Promotion: Web sites, pages of print and visual information that are between a computer network and the Internet.
A technology consul- linked together electronically, offer an opportunity for entrepreneurs tant on contract can install these and other computer defenses. In general, Web sites can be created and updated more free. More- staysafeonline. To create a Web site for her business, the entrepreneur can As Julian E. Many universities offer courses that the Internet offers significant opportunities to build new businesses teach how to build a Web site, also. Existing businesses A Web site needs a name and an address.
On the Internet, the two are will take advantage of myriad Internet applications — from customer usually the same. Web site names and addresses must be registered. The address of the online business is expressed as a portunities to delight customers and create exciting entrepreneurial Uniform Resource Locator URL. It usually ends in dot com. Some companies bill a Internet. The Internet provides access to customer before or after shipping merchandise. This a large and growing market. Approximately may cause payment delays, however.
Another option million people were shopping online worldwide in , is to have customers use credit or debit cards online. Alternately, it is possible to hire an on- tional group of potential customers. When entrepreneurs line payment service, such as WorldPay www. Hiring a technology of creating and managing a Web site has dropped, and expert is time and money well spent as compared to the number of Web site design and management com- the potential risk of security violations.
Options include let- force and maintain one or more bricks and mortar — or ting the business absorb the cost no charge , includ- actual — stores. Customers should never be surprised Some businesses — books, airline travel, and the stock at the end of a transaction with shipping costs. Chapter 15 focuses on the hospitality and tourism industry.
This is a very specific chapter embedded within the book about an industry while the rest of the book is mostly general information that could be applied to any number or types of organizations. Still, out of 17 chapters there are 15 solid chapters that provide great content and overview of the subject matter.
The book is written in an easy to read format with no noticeable grammatical errors or formatting issues. It is easy to find topics within chapters based on the layout, fonts, etc. The information itself is rooted in fundamental concepts of each chapter's topic or subject matter within the business discipline and there are no overt attempts to lead the reader in a particular manner to form bias or opinions, other than to establish critical thinking of topics.
While there are some examples that may seem somewhat dated, they are explained in a manner that is easy to understand and they are relevant or "fit" within the context of the chapters and course concepts being discussed. The book is quite lengthy but given the 17 chapters that is to be expected. The author could probably eliminate two chapters on ancillary material to make it a shorter text but the chapters are not unnecessarily bloated for the sake of adding more vocabulary or unnecessary graphics.
The book uses easy to understand language, explains course concepts and terminology, and reinforces abstract ideas with examples. Overall it does a good job of relaying topics that are being introduced to students for the first time.
The text remains consistent in present tense tone of voice, chapter structure is organized consistently throughout the text, and the use of masculine vs. One could easily pick up this course text and only read select chapters that were of interest.
Gaining an understanding of the legal topics Chapter 5 Forms of Business Ownership was not necessary to learning about subsequent chapters such as Marketing, HR, economics, etc.
An instructor could pull needed material from this course text to supplement other teaching materials as well as to expand on the introductory materials contained herein to build out a more robust, in-depth course on any of the topics contained within this textbook.
There is a very logical structure with the early chapters discussing types of business formation, teamwork, and ethics before moving to more operational activities such as financing, marketing, management and so forth. A few chapters could be reorganized. The book could use more graphs, pictures, diagrams, etc. There are no noticeable grammatical, spelling, or punctuation errors.
There are a few figures that are either not labeled or are not appropriately referencing the course text where they are presented, leaving "floating images" in some places that have no meaning to the topic discussed. Figure 7. There is a photo of someone's arm by a laptop and notepad next to sections discussing operational plans and planning for contingencies or crises. Gender neutral language is used throughout the course text and no offensive references are made or examples presented.
The textbook examples cover a wide array of businesses, industries, and geographical reference points. This course is an excellent resource for a first-year business student that is seeking a broad overview of several business disciplines and to lead into more in-depth study of the course topics throughout an undergraduate curriculum.
The text covers all the typical topics for introductory business course. The Chapter Hospitality and Tourism is relevant to the increasing industry segment. The last chapter on Personal Finances does come after Chapter 16 Accounting but seems The last chapter on Personal Finances does come after Chapter 16 Accounting but seems out of place with no connection to the rest of the text.
The textbook was recently written making issues and news items current. Social media marketing is thorough discussed. The Marketing chapter introduces the SAVE marketing model which is taking the place of the four Ps of the marketing mix.
Historic ethics cases such as WorldCom and Bernie Madoff are presented. Pages are of a simple layout with easy readability. All terms are defined and this would also be an appropriate text to use with high school dual credit courses. Graphics are appealing and provide a distinct look for the various sections of the text. All chapters start with learning objectives and end with take-aways. The individual chapters are of various lengths.
Chapter Labor Unions covers just the one topic. Other chapters are much longer with up to seven sections. There many chapters that could be assigned or presented in a different sequence. It is easy to find and refer to tables and divisions of the chapters. I find the placement of teamwork as the preface could be very be very beneficial in setting up for class activities and useful for students as they become active in college clubs and organizations.
Effective graphics make the chapters and sections clear. There are very few photos and those are clear and useful. Cultural differences, of course, are addressed in Chapter 4: Globalization of Business.
Although there are few photos only one features a person of color. While the chapter concepts are summarized with "Key Take-Aways", there is no end of chapter "check for understanding" such as review questions, discussions, or activities.
Adoption of this textbook would require significant development of assessment tools. The references section at the end of the book is organized by chapter and provides a valuable resource of website hyperlinks.
The text has an extensive coverage and actually has several chapters one doesn't normally find in an introductory textbook on business. If this was a traditional textbook, I would not adopt it since there are superfluous chapters and sections that If this was a traditional textbook, I would not adopt it since there are superfluous chapters and sections that I would not want in the book but since I can custom-make an electronic copy, I would cut the unnecessary section. The content is standard and can be found in many similar textbooks.
I did not find any errors or biased opinion. All assertions are backed by reputable sources. In such a book, the only areas that need regular updating are the examples, vocabulary, and technology. Examples must be current, real, and interesting for the students in order to drive home the issues. Most recent news from companies like Apple, Amazon, or Starbucks attract the attention of students.
Other than specific case studies which might have a historical significance, all references to hardware, software, and telecom should show the most current examples. It flows well if a freshman or any student new to the business major otherwise why one would read such a book can get past the boring look and "feel" of the book.
Proper use of deeper indentations and special boxes can give the book a more interesting and magazine-like feel, although I understand that part of the bland look is due to cost restrictions. This is where I will offer the bulk of my feedback. It should be moved to chapter 7, 8, or Chapter 12 Union-Management Issues is not necessary in such a basic business text.
The topic can be subsumed under chapter 3 or Another superfluous chapter is 15 Hospitality and Tourism. It looks like one of the contributors to this text has a specialty in this area. For instance, do students also need to read a chapter about Real Estate or another one about the Airline Industry? As much as Personal Finance chap. How about moving an itemized summary of it to an appendix at the end. In place of the deleted chapters, add or restructure as follows, so as to have more chapters about marketing which has the effect of making the text a lot more interesting for the commercial and consumer-driven society we all live in.
I did not find any of words or phrases that may come across as culturally insensitive or politically incorrect. Fundamentals of Business, third edition is an page open education resource intended to serve as a no-cost, faculty customizable primary text for one-semester undergraduate introductory business courses. It covers the following topics in business: Teamwork; economics; ethics; entrepreneurship; business ownership, management, and leadership; organizational structures and operations management; human resources and motivating employees; managing in labor union contexts; marketing and pricing strategy; hospitality and tourism, accounting and finance, and personal finances.
Stephen J. Former Associate Dean for Graduate Programs Senior executive with 25 years of business leadership experience, including positions as General Manager and Chief Financial Officer with divisions of Fortune companies.
Background includes financial services, consumer packaged goods, apparel, and industrial companies, with emphasis in turnaround situations. Fundamentals of Business - 3rd Edition 8 reviews Stephen J. Through a combination of practical instruction and a range of real-life examples, Entrepreneurship helps prepare students for their future roles in building, managing and growing businesses.
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