Principles of entrepreneurship notes pdf

Indeed, it is not enough to have a game changing idea and a great team in place unless the entrepreneur knows the art of execution. As happened during the Dotcom boom, there were many startups with great ideas and equally great teams that promised the moon for anyone willing to listen. However, the fact that they failed in their businesses was mainly due to the gap between ideas and execution. Therefore, the entrepreneur has to be a leader who walks the talk and understands the meaning of execution.

Further, leadership means that entrepreneurs must not be afraid of failure and must instead, turn adversity into triumph and transform failure into a stepping stone for success. Indeed, great entrepreneurs are those who are willing to trust their instincts and intuition and back themselves up when the venture is yet to fructify or even making losses. In other words, if you think that you have a great idea and are executing it well with the right team, you need to persist and keep going even when the conventional wisdom says that you are getting it wrong.

Ask any successful entrepreneur and they would say that while money is indeed important and profits are indeed essential, it is always not about the money or that making profits is the only thing that matters. Instead, great entrepreneurship is all about heeding the inner voice, creating jobs and opportunities for others, be conscious of societal prosperity due to the venture instead of having a me, myself only attitude, and most importantly, translate their vision into success.

National culture is the values and attitudes shared by individuals from a specific country that shape their behavior and their beliefs about what is important. A framework developed by Geert Hofstede serves as a valuable framework for understanding differences between national cultures. Hofstede studied individualism versus collectivism. Individualism is the degree to which people in a country prefer to act as individuals rather than as members of groups.

Collectivism is characterized by a social framework in which people prefer to act as members of groups and expect others in groups of which they are a part such as a family or an organization to look after them and to protect them.

Another cultural dimension is power distance, which describes the extent to which a society accepts the fact that power in institutions and organizations is distributed unequally. Uncertainty avoidance describes a cultural measure of the degree to which people tolerate risk and unconventional behavior. Hofstede identified the dimension of achievement versus nurturing. Achievement is the degree to which values such as assertiveness, the acquisition of money and material goods, and competition prevail.

Nurturing emphasizes sensitivity in relationships and concern for the welfare of others. Long-term and short-term orientation. People in countries having long-term orientation cultures look to the future and value thrift and persistence.

Short-term orientation values the past and present and emphasizes a respect for tradition and social obligations. The increased threat of terrorism, economic interdependence of trading countries, and significant cultural create a complicated environment in which to manage.

Successful global managers need to have great sensitivity and understanding. Managers must adjust leadership styles and management approaches to accommodate culturally diverse views.

Chapter 5 Social Responsibility and Managerial Ethics This chapter discusses issues involving social responsibility and managerial ethics and their effect on managerial decision making.

Both social responsibility and ethics are responses to a changing environment and are influenced by organizational culture Managers regularly face decisions that have dimensions of social responsibility. Social Obligations to Responsiveness to Responsibility: Social obligation occurs when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities.

Social responsiveness is seen when a firm engages in social actions in response to some popular social need. Purposes of Shared Values are: 1 They act as guideposts for managerial decisions and actions. Factors That Affect Employee Ethics 1. Stages of Moral Development. Research confirms three levels of moral development. Each level has two stages. The majority of adults are at Stage 4. The higher the stage an employee reaches, the more likelihood that he or she will behave ethically.

Individual Characteristics: A person joins an organization with a relatively entrenched set of values. Values are basic convictions about what is right and wrong. Values are broad and cover a wide variety of issues. Individuals who score high on ego strength are likely to resist impulses to act unethically and are likely do what they think is right. Locus of control is a personality attribute that measures the degree to which people believe they control their own fate.

Individuals with an internal locus of control think that they control their destiny, while persons with an external locus of control are less likely to take personal responsibility for the consequences of their behavior and are more likely to rely on external forces.

Externals believe that what happens to them is due to luck or chance. A third factor influencing managerial ethics is structural variables. The existence of structural variables such as formal rules and regulations, job descriptions, written codes of ethics, performance appraisal systems, and reward systems can strongly influence ethical behavior. An organizational culture most likely to encourage high ethical standards is one that is high in risk tolerance, control, and conflict tolerance.

A strong culture exerts more influence on managers than does a weak one. However, in organizations with weak cultures, work groups and departmental standards strongly influence ethical behavior.

Finally, the intensity of an issue can affect ethical decisions. Six characteristics determine issue intensity a. Greatness of harm b. Consensus of wrong c.

Probability of harm d. Immediacy of consequences e. Proximity to victim f. Concentration of effect Improving Ethical Behavior Organizations can take a number of actions to cultivate ethical behavior among members.

In addition, decision rules can be developed to guide managers in handling ethical dilemmas in decision making.

Job goals are usually a key issue in the performance appraisal process. Performance appraisals should include this dimension, rather than focusing solely on economic outcomes. At the least, ethics training should increase awareness of ethical issues. Social Entrepreneurship: A social entrepreneur is an individual or organization who seeks out opportunities to improve society by using practical, innovative, and sustainable approaches. Social impact management: Managers are increasingly expected to act responsibly in the way they conduct business.

Managers using a social impact management approach examine the social impacts of their decisions and actions. When they consider how their actions in planning, organizing, leading and controlling will work in light of the social context within which business operates, managers become more aware of whether they are leading in a responsible manner. Decision making is such an important part of all four managerial functions that decision making is said to be synonymous with managing.

The Decision-Making Process A decision is a choice made from two or more alternatives. The decision-making process is a set of eight steps that include the following: Identifying a problem: A problem is a discrepancy between an existing state and a desired state of affairs. In order to identify a problem, a manager should be able to differentiate the problem from its symptom; he should be under pressure to taken action and must have the authority and resources to take action. Identifying decision criteria: Decision criteria are criteria that define what is relevant in a decision.

Allocating weights to the criteria: The criteria identified in the previous step of the decision-making process may not have equal importance. So he decision maker must assign a weight to each of the items in order to give each item accurate priority in the decision.

Developing alternatives: The decision maker should then identify viable alternatives that could resolve the problem.

Analyzing alternatives: Each of the alternatives are then critically analyzed by evaluating it against the criteria established in Steps 2 and 3. Selecting an alternative: The next step is to select the best alternative from among those identified and assessed. If criteria weights have been used, the decision maker would select the alternative that received the highest score in Step 5.

Implementing the alternative: The selected alternative is implemented by effectively communicating the decision to the individuals who would be affected by it and their commitment to the decision is acquired. Evaluating decision effectiveness: The last step in the decision-making process is to assess the result of the decision in order to determine whether or not the problem has been resolved.

Managers can make decisions on the basis of rationality, bounded rationality, or intuition. Rational decision making. Managerial decision making is assumed to be rational—that is, making choices that are consistent and value-maximizing within specified constraints. A rational manager would be completely logical and objective. The assumptions of rationality can be met if the manager is faced with a simple problem in which 1 goals are clear and alternatives limited, 2 time pressures are minimal and the cost of finding and evaluating alternatives is low, 3 the organizational culture supports innovation and risk taking, and 4 outcomes are concrete and measurable.

Bounded rationality. Intuitive decision making. Managers also regularly use their intuition. Intuitive decision making is a subconscious process of making decisions on the basis of experience and accumulated judgment. Although intuitive decision making will not replace the rational decision-making process, it does play an important role in managerial decision making. Types of Problems and Decisions Managers encounter different types of problems and use different types of decisions to resolve them.

Problems can be structured problems or unstructured problems and decisions can be programmed decisions or nonprogrammed decisions. Structured problems are straightforward, familiar, and easily defined. In dealing with structured problems, a manager may use a programmed decision, which is a repetitive decision that can be handled by a routine approach.

Managers rely on three types of programmed decisions: a. A procedure is a series of interrelated sequential steps that can be used to respond to a structured problem.

A rule is an explicit statement that tells managers what they can or cannot do. A policy is a guideline for making decisions.

Unstructured problems are problems that are new or unusual and for which information is ambiguous or incomplete. These problems are best handled by a nonprogrammed decision that is a unique decision that requires a custom- made solution.

At higher levels in the organizational hierarchy, managers deal more often with difficult, unstructured problems and make nonprogrammed decisions in attempting to resolve these problems and challenges. Lower-level managers handle routine decisions, using programmed decisions. Decision-Making Conditions Decision can be made under conditions of certainty, uncertainty and risk.

Certainty is a situation in which a manager can make accurate decisions because all outcomes are known. Few managerial decisions are made under the condition of certainty. More common is the situation of risk, in which the decision maker is able to estimate the likelihood of certain outcomes. Uncertainty is a situation in which the decision maker is not certain and cannot even make reasonable probability estimates concerning outcomes of alternatives.

In such a situation, the choice of alternative is influenced by the limited amount of information available to the decision maker. Decision-Making Styles: Managers have different styles in making decisions and solving problems. One perspective proposes that people differ along two dimensions in the way they approach decision making. Diagramming these two dimensions lead to a matrix showing four different decision-making styles.

The directive style is characterized by low tolerance for ambiguity and a rational way of thinking. The analytic style is one characterized by a high tolerance for ambiguity and a rational way of thinking.

The conceptual style is characterized by a high tolerance for ambiguity and an intuitive way of thinking. It aims at enabling students to gain insights in concepts and application of talent and knowledge management in organizations.

Download link is. Know the characteristics, significance and functions of Management. Find relationship between Administration and Management. Familiar with Management as a Science or an Art. Acquaint with Professional Management. Just Now Marketing Management Study Notes - Marketing management is the firm's discipline that aims at the practical application of marketing orientation, techniques, and methods. Get free access to the library by create an account, fast download and ads free.

Pharm then you are in right place. We have the largest collection of PDF Notes from where you can easily download the notes and use it for your study. Check above the download link text. This definition points out that management is entrusted with the primary task of planning, execution and control of the operating activities of an enterprise.

It constantly needs accounting information on which to base its decision. Notes on the Definition of Management : Management is defined as the process of getting things done through the efforts of other people. This often involves the allocation and control of money and physical resources. A manager is not a manager if he works alone, i.

Marketing management notes study material includes marketing management book, courses, case study, syllabus, question paper, MCQ, questions and answers and available in marketing management pdf form.

Material Management Notes can be downloaded in Material Management pdf from the below article. 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. Cus- market, for example — have been transformed by their tomers may cancel the sale. But a Web site also can be for complaints, suggestions, or compliments, and re- used for selling tickets, offering discounts, or letting cus- spond to them.

This can boost customer loyalty. After creating an online store, there is still much to do. An To start an online business, an entrepreneur must: entrepreneur needs to attract potential customers. There are many ways to advertise a Web site. For example, to create a Web site or hire an expert to do so.

Design a restaurant specializing in food from Afghanistan might an attractive and easy-to-navigate online store. Include clear instructions to order by phone or Web site promotion is crucial. Getting noticed is the first online. Choosing a Form of Business I n many countries, entrepreneurs must select a form The largest disadvantage of any partnership is the of organization when they start a small business.

The potential for disagreements, regardless of how well basic forms of organization are sole proprietorships, or how long the partners have known each other.

Each has advantages and disadvantages. Moreover, the laws and regulations that Experts agree that a partnership agreement drawn up apply to business owners vary from country to country by an experienced lawyer is essential to a successful and by local jurisdiction. Entrepreneurs should consult partnership. Examples include writers and consultants, local restaurants and shops, and Corporations: Corporations are recommended for home-based businesses.

As a legal entity that has a life separate This is the easiest and least expensive form of business from its owners, a corporation can sue or be sued, to start. In general, an entrepreneur files all required acquire and sell property, and lend money. The disadvantage is that there is unlimited personal liability — all personal and Corporations are divided into shares or stocks, which are business assets owned by the entrepreneur may be at owned by one, a few, or many people.

Ownership is based risk if the business goes into debt. Shareholders are not responsible for the debts of the corporation, unless they Partnership: A partnership consists of two or more have personally guaranteed them. Corporations can more business. The greatest advantage comes from shared re- easily obtain investment, raise capital by selling stock, sponsibilities.

Partnerships also benefit by having more and survive a change of ownership. They provide more investors and a greater range of knowledge and skills.

Their potential for growth is unlimited. There are two main kinds of partnerships, general partner- ships and limited partnerships. In a general partnership, However, corporations are more complex and all partners are liable for the acts of all other partners. All expensive to set up than other forms of business also have unlimited personal liability for business debts. Creating a Business Plan A comprehensive business plan is crucial for a start- A standard business plan is usually about 40 pages in length.

The language should be free of jargon and easy to understand. There are many reasons for writing a business plan: The tone should be business-like and enthusiastic. The executive summary is the cornerstone of a good plan. This A well-organized plan is an essential part of any loan application. It should concisely summarize the technical, marketing, money. The entrepreneur also should take into account all startup financial, and managerial details.

More importantly, it needs to expenses and potential risks so as not to appear naive. What differentiates it from opportunity they envision. Is it innovative? These require detailed estimates of expenses Some entrepreneurs create two plans: a planning and sales. Expenses are relatively easy to estimate. Sales projections document for internal use and a marketing document are usually based on market research, and often utilize sales data for for attracting outside investment.

In this situation, similar products and services produced by competitors. For example, Writing a business plan may seem overwhelming. However, an internal document intended to guide the business there are ways to make the process more manageable. First, does not need detailed biographies of the manage- there are many computer software packages for producing a ment. However, in a plan intended for marketing, the standard business plan. Numerous books on entrepreneur- background and experience of management may be ship have detailed instructions, and many universities sponsor the most important feature.

Generating sales takes time, sales as well as anticipated cash payments of bills. Therefore, entrepreneurs or quarterly basis, but experts recommend that need to estimate how much money they need and then it be done at least once every month for the first raise that amount to transform their dream into a reality. By calculating this forecast on business. In many cases, goods are cessful financial Web site. Mean- while, the entrepreneur still has to pay his bills. There are many ways to reduce will result in a growing negative amount.

At this point, the negative cumulative cash flow will begin to However, all entrepreneurs need to estimate how much decrease and move toward a positive one.

The cumulative cash they need to cover expenses until the business begins cash flow amount reached just before it reverses direction to make a profit. For this task, the best financial tools are indicates approximately how much capital the new business the income statement and cash flow statement. Cash flow will need. It is the dif- Financial projections are inevitably somewhat inaccurate ference between cash receipts money taken in and cash simply because every contingency cannot be predicted.

For disbursements money spent over a specific time period.