Assignment on Mid–Term Exam

Course Code: MGT3135

Course Title: Entrepreneurship

Prepared for:

...........................................

S. M. Raihan Uddin
Lecturer
School of Business Studies
Southeast University

Prepared By:

Twasin Abduho Al Wares - ID No: 2015010000442

Sec: 3
School of Business Studies
Southeast University
Question Number: 1
a. Explain the term “Passion for the business” from the perspective of an entrepreneur.
“Entrepreneurs Love the Spotlight”- do you agree with this statement? If not then justify
your logic.
Answer:  Entrepreneur’s should always work with fun and in passion, which will help to
overcome difficult moments and he will be able to persuade people to work for him.
Passion can’t be taught. When it wanes, as it surely will in difficult times, take some quiet time.
Whether it is an hour or a week, take inventory of the entire reasons one started the business
and why one likes being one’s own boss.
Entrepreneurs love the spotlight: the vast majority of them do not attract public attention. An
idea is a thought, impression or notion A business opportunity is a favorable set of
circumstances that creates a need for a new product, service, or business. Opportunity is within
idea. An idea may not meet the criteria of an opportunity. An entrepreneur with just an idea
may fail if there is no opportunity or need.
Two ways entrepreneurial ventures Externally Internally stimulated
Externally stimulated: Decides to launch a firm, searches for and recognizes an opportunity,
then starts a business.
Internally stimulated: Recognizes a problem or an opportunity gap and creates a business to fill
it. It is this essential quality that creates or adds value for its buyer or end user.

b. As an entrepreneur, you wanted to introduce a new food delivery service in Bangladesh.

So, at first, you need to construct a plan to open new channels/outlets within the Dhaka
City to conduct your business operations. Later, based on response of your targeted
customers, you can expand your business area. Moreover, you want to design these
services for specific group of people. Therefore, you need to hire some people to
manage your business operations and some riders to deliver the foods from the
restaurants to the customer’s end. However, to generate the fund, you may take loan
from the bank or other sources. From your analysis, you have found that there are other
competitors such as foodpanda, Ubereats, Pathao foods, Shohoz foods and other
companies who are already articulating their operations in the food delivery service
industry. Now, explain a comprehensive feasibility analysis for your new venture.

Answer: As competition increases for high-quality products, low costs and excellent customer
service, businesses must continually assess the value they create. One of the most valuable
tools, the value chain analysis, breaks down each process of a business and creates
opportunities for innovation.

 A supply chain and value chain are similar in nature, but the value chain takes a few
more things into consideration, like product design, research and development, and
advertising.
 One of the goals of value chain analysis is to ensure the product is placed in the
customers' hands as seamlessly as possible.
 The final result of a value chain analysis should be a more competitive, efficient
business.
Value chain analysis can help companies in various ways. It can create change within a business,
the products and services it offers, and its connections with other businesses and their
customers or clients. The United States Postal Service (USPS) explains that the purpose of value
chain analysis is "to create value that exceeds the cost of providing the product or service and
generates a profit margin." The USPS also lists three goals that should take priority during an
analysis for you to see change:

 Achieve the best/lowest costs, including process, transactional and handling costs for
the entire supply chain.
 Pursue the fastest cycle time performance.
 Identify and implement "best-in-class" practices for each core activity, sub-process, or
process.

To conduct a value chain analysis, a business should begin by identifying each part of its
production process, noting steps that can be eliminated and other possible improvements. In
doing so, businesses can determine where the best value lies with customers, and expand or
improve said value, resulting in either cost savings or enhanced production. At the end of the
process, customers can enjoy high-quality products at lower costs. A value chain is the full
range of activities – including design, production, marketing and distribution – businesses
conduct to bring a product or service from conception to delivery. For companies that produce
goods, the value chain starts with the raw materials to make their products, and consists of
everything added before the product is sold to consumers.

Value chain vs. supply chain

A supply chain and value chain are similar in nature, but the value chain takes a few more
things into consideration. "The supply chain generally looks at the parts or materials that go
into a product, where a product is manufactured, and the transportation logistics of getting it
from the factory to the store," said Jon Gold, vice president of supply chain and customs policy
at the National Retail Federation. The value chain "takes into consideration contributions such
as product design, research and development, advertising and other marketing. Even the work
of lawyers, bankers, accountants and IT experts who help make a product possible is taken into
consideration."

Porter's value chain framework

Harvard Business School's Michael E. Porter was the first to introduce the concept of a value
chain. Porter, who also developed the Five Forces Model to show businesses where they rank in
competition in the current marketplace, discussed the value chain concept in his
book Competitive Advantage: Creating and Sustaining Superior Performance (Free Press,
1998). "Competitive advantage cannot be understood by looking at a firm as a whole," Porter
wrote. "It stems from the many discrete activities a firm performs in designing, producing,
marketing, delivering and supporting its product. Each of these activities can contribute to a
firm's relative cost position and create a basis for differentiation." In his book, Porter splits a
business's activities into two categories: primary and support. Primary activities include the
following:

 Inbound logistics includes the receiving, storing and distributing of raw materials used
in the production process.
 Operations are the stage at which the raw materials are turned into the final product.
 Outbound logistics is the distribution of the final product to consumers.
 Marketing and sales involve advertising, promotions, sales-force organization,
distribution channels, and pricing and managing the final product to ensure it targets
the appropriate consumer groups.
 Service is the activities needed to maintain the product's performance after it has been
produced, including installation, training, maintenance, repair, warranty and after-sale
services.

The support activities help the primary functions and comprise the following:

 Procurement is how the raw materials for the product are obtained.
 Technology development can be used in the research and development stage, in how
new products are developed and designed, and in process automation.
 Human resource management includes the activities involved in hiring and retaining the
proper employees to help design, build and market the product.
 Firm infrastructure refers to an organization's structure and its management, planning,
accounting, finance and quality-control mechanisms.

Value chain example: Starbucks

A prime example of creating value for customers is Starbucks. Through its operations, it creates
connections throughout the world, guarantees high-quality flavors and works to build a
sustainable future. "Starbucks invests in coffee communities, sharing agronomy practices and
our coffee knowledge," the company stated in its 2018 Global Social Impact Report. "We
leverage technology to develop new approaches to ensure the future of high-quality coffee,
including a new traceability pilot project announced in 2018." Starbucks' value chain, like many
others, is complex, but ensures value that will impress customers and keep them invested in
the company. Starbucks begins by tasting a variety of coffees that use beans from locations
such as Latin America, Africa, Arabia, Asia and the Pacific (inbound logistics). The company
spends time visiting coffee growers and building lifelong relationships. Starbucks creates
partnerships all over the world to ensure the best coffee for its customers. Its coffee is sold in
stores worldwide (operations, outbound logistics) and allows customers to enjoy high-quality
flavors at home or in a local Starbucks. Another part of Starbucks' value chain is interacting with
customers and ensuring it provides an excellent service. Its social media accounts are a prime
spot for interaction, where Starbucks offers twists on its classic drinks to provide a unique
experience to customers each time they visit (marketing and sales, service). Alongside these
processes, Starbucks maintains HR, technology development, finances and other operations.
Starbucks presents its coffee as "the end of a long journey – from the land, to the farmer, to the
roaster, to your eagerly waiting hands. Each step is important in defining what that coffee will
taste like."

Value chain management and mapping

Value chain management is the process of organizing all activities to properly analyze them. The
goal is to establish communication between the leaders of each stage to ensure the product is
placed in the customers' hands as seamlessly as possible. Managing these activities may involve
reworking various systems, structures, processes, etc. The key is to find areas of potential
innovation. Creating a strategy to develop processes is key to maintaining company value. It
helps businesses to see exactly what areas they need to strengthen and how they can reduce
costs. It also allows businesses to decide what is most important when thinking about the value
they want to create. Mapping out a value chain can be a great way to visualize all processes and
see how they're impacting both the company and customers. "To begin, the item manager and
the selected suppliers map the complete steps of providing a material or service, proceeding
from the supplier to the end user, including the delivery and use of the material or
service," states USPS. "What emerges is a picture of the intricate interlocking steps that span
the supplier/purchaser relationship."

Conducting the analysis

According to Strategic Management Insight, there are two approaches to the value chain
analysis: cost and differentiation advantage.

Cost advantage

After identifying the primary and support activities, businesses should identify the cost drivers
for each activity. A cost driver is something that affects the cost of an activity or process. Cost
drivers can include the following:

 Work hours
 Machine use and setup
 Wage rates
 Materials used to make products
 Shipping

Our business should then identify links between activities, knowing that if costs are reduced in
one area, they can be reduced in another. We can then identify opportunities to reduce overall
costs.
Differentiation advantage

Identifying the activities that create the most value to customers is the priority. These can
include the following:

 Using relative marketing strategies

 Knowing about products and systems
 Answering phones faster
 Meeting customer expectations

The next step is evaluating these strategies to improve the value. Focusing on customer service,
increasing options to customize products or services, offering incentives, and adding product
features are some of the ways to improve activity value. Lastly, businesses should identify
differentiation that can be maintained, and which adds the most value.

Goals and outcomes

According to Investopedia, the primary goal of the value chain analysis is to create or
strengthen your business's competitive advantage. "If a company can create an advantage ...
through a value chain analysis, it captures a competitive advantage and increases its overall
profit," the article explains. "To capture a competitive advantage, a company maps out its
specific activities within the five generic value chain activities and looks for ways to create
efficiencies." Ideally, value chain analysis will help you identify areas that can be optimized for
maximum efficiency and profitability. It is important, along with the mechanics of it all, to keep
customers feeling confident and secure enough to remain loyal to your business. By analyzing
and evaluating product quality and effectiveness of services, along with cost, your business can
find and implement strategies to improve.

Question Number: 2

a. As we know that the value chain is a set of activities that a firm operating in a specific
industry performs in order to deliver a valuable product (i.e., good and/or service) for
the market. Now, illustrate the value chain activities of your pre-determined business
idea.
Answer: A value chain is a business model that describes the full range of activities needed to
create a product or service. For companies that produce goods, a value chain comprises the
steps that involve bringing a product from conception to distribution, and everything in
between—such as procuring raw materials, manufacturing functions, and marketing activities.

A company conducts a value-chain analysis by evaluating the detailed procedures involved in

each step of its business. The purpose of a value-chain analysis is to increase production
efficiency so that a company can deliver maximum value for the least possible cost.
  A value chain is a step-by-step business model for transforming a product or service
from idea to reality.
 Value chains help increase a business's efficiency so the business can deliver the most
value for the least possible cost.
 The end goal of a value chain is to create a competitive advantage for a company by
increasing productivity while keeping costs reasonable.
 The value-chain theory analyzes a firm's five primary activities and four support
activities.

b. In 2009, Bangladesh Bank approved online payment and in 2013 the bank approved the
use of debit and credit card for online payment. The e-Commerce Association of
Bangladesh is the trade body for e-Commerce in Bangladesh. According to the
association, there are 8,000 e-Commerce pages in Facebook alone. Among them Daraz,
Piackaboo, Rokomary.com, Bagdoom.com and ajker-deal.com are major players. FBCCI
recommended removal of tax on e-Commerce. Ten billion Taka worth of transactions
take place through e-Commerce site per year according to a 2017 report. These
companies are creating employment opportunities in our country and many workers
earning their livelihood by engaging themselves with these companies. Therefore, this
industry is contributing in a larger scale in our economy. There are several companies
who have very efficient and accessible means of transport so that the customers can
save a lot of time. Moreover, these companies have great positive impacts, there are
some challenges too. So, our government needs to introduce regulatory mechanism to
overcome the arising problems. To identify an opportunity there are three ways such as
observing tends or identifying the ideas for solving existing problems or finding market
gaps. Thus, as an entrepreneur, if you want to introduce your new venture in this
industry then how you will recognize the opportunity?
Answer:
OVERVIEW
This case study will try and asses the feasibility for an ecommerce website.

CHALLENGE
The challenge in this case study is do the following Analyze the costs and benefits associated
with the implementation of an ecommerce website for a membership society.

Fig 1 Membership Process

Figure 1 illustrates typifies the processes of a generic membership system.  You can see the
effect e-enablement has on the current process on the right site of the illustration.

Costs for technology

To produce an ecommerce website requires a high speed connection to the Internet, a web
server, and software.  Other costs that are relevant is the cost of the payment system, whether
it is taking online payment directly from the societies web site or an alternative third-party like
Pay pal or more expensively using an online bank.

Costs for technological development

This will involve a number of programmers who are able to interpret your functional
requirements and program/create your website.

Costs for the consultancy support (design and implementation)

You would require the services of specialists in ebusiness design and implementation to guide
you through this process.

Costs for the organization for piloting training

During the technological development of a website it is always a good idea to allow admin staff
who will be using the system on a daily basis to pilot the system to as a training initiative.

Running costs
These are an upkeep of the web server and maintenance costs.

Running costs for change process

This is the cost of factoring in for your employees to train and adapting to the newly introduced
technology, mainly the strategies used to make the change as smooth as possible.

Additionally being on the Internet would result in the your company having to become familiar
to respond to emails, queries, and complaints that require instant or quick responses as
opposed to replying to a Customer/Client via a letter. To be successful online, your company
would have to address this issue of Change Management in that it would have to incorporate
into its business, processes in order to guide the company to successfully maximize its
effectiveness on the Internet.  “Business is streamlined and service is almost instantaneous
when it is done on the Web. (SolSystems LLC: E-Commerce, 2001)

FINANCIAL BENEFITS

Improve Cash flow

Online payment would result in the lead-time to receive payments for membership within the
same day of the application being made rather than the average 14 day delay.  E-enabling the
membership process is not just about reengineering a process so that it is quicker than before,
it would result in a complete overhaul of the previous way of managing membership.  Figure 1
illustrates the current membership process on the left and the E-enabled equivalent.  As you
can see in the E-enabled application and payment are made online.  Once the application has
been completed the documentation is sent via email to the member adding value by cutting the
waiting time.  This also saves on printing and postage for the Society.  Even if the member does
not have an email address the documentation will be available for download for registered
members to the web site.

Increase Revenues
The Internet will increase the volume of members. By going online with your business, you will
generate revenue from places you never imagined” (SolSystems LLC: E-Commerce, 2001). 

NON-FINANCIAL BENEFITS

Communication
Direct email marketing incurs little or no cost compared to the traditional direct mail
marketing.  Direct email marketing allows the flexibility of sending your companies message day
or night, exactly when they want.

Transparency
The Information Management Website will allow the membership process to become
transparent.  For example, for the first time ever, Management will be able to know as a matter
of fact:

 The total number of members

 Those members who need to renew their membership
 Those members who are in arrears with their membership fees
 Total number of members and accredited members
 Forecast for the expected revenue that will be generated in advance and look at historic
monthly generated revenues.

Exposure
The Internet means that your company will become a global Business.  Thus attracting potential
members from internationally.  “Using the Web to sell your products removes the physical
boundaries from your customer base.  Customers from all over the world can learn about and
purchase your products online” (SolSystems LLC: E-Commerce, 2001).

Wider Considerations

When prospective members are signing up for membership they are providing personal data. 
This data includes the members name, full address, and credit card details.  This means that the
Society should register for the Data Protection Act 1998 which has a one off fee of £35.

Furthermore, your company must take measures to secure the line of communication from the
visitor’s computer and your web site.  An SSL connection guarantees that this communication
cannot be intercepted by any other person like a hacker.
SOLUTION

Our site will be database driven.  For example; the storing, modification and retrieval of
Members, information can be efficiently incorporated into a Relational Database Management
System.  MS Access, MySQL and MS SQL Server are some of the most widely used databases on
the Internet.

 There are three options of making online payment possible.  These are:

a. Payment System Manually inputting credit card details into the existing ePDQ machine.
b. PayPal is a third party service, which is a cost-effective way for businesses to accept
payments online for a small fee per transaction.   This is the most likely method of taking
payment online and one which the author is considering to recommend; mainly because
it is has been tried and tested and has proved a real confidence booster to consumers. 
The only downside to PayPal is that members must have PayPal accounts to make
payment on PayPal.  Members who do not have PayPal accounts will be forced to open
a PayPal account.
c. Using an online bank to accept payment is the best choice because it’s safe and quick.

Technical Solution Analysis

MySQL has been chosen over the other possibilities with the following reasoning:

a. MySQL is license free for registered charities.

b. MySQL can handle 50,000,000 + records.
c. MySQL is an ideal database type to create a prototype of an e-commerce web site.
d. The MySQL database can be easily upgraded to MS SQL at a later date.
e. MySQL with the use of ASP (Active Server Pages) can best satisfy the functional
requirements.

Question Number: 3

a. If you are an entrepreneur and now you want to introduce your own venture.
Therefore, how you will recognize the opportunity? (Specify your industry name,
business types and other specifications)

Answer: If we want to start a business but don't know where to start, don't worry -- you're not
alone. In fact, given the new economic reality of our time, more people than ever  have found
the "job" they thought was waiting for them doesn't exist. Others have come to the conclusion
that they would rather create work they love, constructed to fit with their own life goals. No
matter what the motivation is to be your own boss, you can start today.
The name of our company is solar electronics ltd. We produce only bladeless fan, which runs
through solar power. Our big strength is our main office in Gulshan-2. Because it is very busy
and popular place in Dhaka city so many people will get to know about our product. Weakness
is our targeted consumers will be higher middle class people n higher class people. Our
consumers can be taken by other competitive products. Our main advantage is there is no risk
using a bladeless fan cause it has no fan wings. So, it will cause no harm. Threat is as it is our
new product in Bangladesh it will take time to cope with our countries climate.

b. Mobile Banking is one of the very latest services of banking business. This system has
brought some very important operations of banking in the pockets of people. People
can now know their balance, transaction history, products of the bank, transfer fund
through their mobile at anytime from anywhere. Mobile banking also prevents
fraudulent activities of banking. Moreover, mobile banking is a part of new banking
dimension i.e. branchless banking to make any bank digital. This branchless banking has
great potential to extend the distribution of financial services to poor people who are
not reached by traditional bank branch network; it lowers the cost of delivery, including
cost of both to the banks of building and maintaining a delivery channel and to
customers of accessing services. Mobile Financial Services (MFSs) are working as a
valuable driver in the changing socio-economic pattern of Bangladesh. MFSs in
Bangladesh was started by Dutch-Bangla Bank Limited (DBBL) in 2012 but the full fledge
operation took another two years. Currently 28 banks have the license for offering MFS
and many institutions are waiting for authorization. Even though 28 institutions have
licenses, 18 are providing the services. Construct the five competitive forces model on
mobile banking industry in Bangladesh.

Answer: