1. Based on your evaluations on entrepreneurial mindset, summarise your level of need for achievement, individualism, control, focus, and optimism, what strategies and tactics could enhance these in the next 6 months.
The entrepreneurial mindset is “being an entrepreneur in the state of mind” the process involves the examination of the possibilities and opportunities that exist around the businesses. The entrepreneurial mindset is based on personal meditation on the economic and corporate culture by putting the available business ideas into practice and later translating the insights into the required action (Norris, 2018). First, to accomplish my business targets, there is a high need to achieve the setup objectives and goals written down as the pillar for the entrepreneurial success. Secondly, there is a need to think about my progress on the individual basis and competitively challenge myself on the various methods that can be used to achieve the success. The focus will be my crucial drive in marking the business to succeed, and this will be possible only through giving priority to the critical business areas and the available resources. The need for optimism will make me look at my entrepreneurship skills more positively and always approach every step made in the business as a success. All in all, the achievement of these goals will only be possible when am highly independent, committed to my duties and always be there to closely monitor the business activities.
2. Based on your evaluations on entrepreneurial motivations, summarise your level of self-efficiency cognitive motivation and tolerance for ambiquity. What strategies and tactics could enhance these in the next 6 months.
Personal motivation is the key to business success. The level of my self-efficiency for the business will be represented by the rate of business growth and the level of its profitability (Rauch " Hulsink 2015; Karimi et al., 2016). Again within six months of operation, I will want to achieve a ten percent growth in revenue and to be a top grocery store within the our local area. The target will be achieved through the analysis of the external forces that might have a more significant influence on the grocery business. The parameters that will be examined include the general the industry, the customers, product sustainability, brand strength, and supply chain management. I will carry out a thorough environmental scanning by analyzing the legal, political, cultural and economic determiners of the business before starting the operation. The move will ensure that I understand the possible variables that can cause my business to fail. Likewise, I will create room for managerial positions and delegate the roles according to the individual skills. Segregation of will duties establishes a pool of fresh ideas for business success.
3. Based on your evaluations on entrepreneurial behaviours, summarise your confidence, risk tolerance, interpersonal relationship skills and social capital. what strategies and tactics could enhance these in the next 6 months.
My confidence in the grocery business is my ability and the desire to meet the set revenue targets. The strategies that I will use maintaining the high profile of business confidence within the first six months include embarrassing my bad scenarios positively, keeping the monthly revenue target at five thousand, listening to what others say to get the best opportunity forward and launching new grocery product without and trying to perfect it myself. Risk tolerance represents the ability to manage the general grocery business challenges (Hsu, Shinnar " Powell, 2014; Kautonen, van Gelderen, " Fink, 2015). These risks may include the perishability of the products(vegetables), theft due to insecurity and negative government policies. Strategically within the first six months of business inception, I will analyze the demand for my products and only stock what is needed for the customers. The move will ensure that the customers get fresh products from the farm and at the same time minimising wastes. Again, security will be employed to provide extra protection to the business premise especially at night when am not available to check what is happening at the premise. Likewise, the business will maintain high compliance with the prevailing state laws on environmental pollution and the tax laws to ensure that it fully meets the set standards. Grocery business just like any other business growth requires and good capital planning to maintain the required targets. Before setting the business off, I will go for a two-month short course to learn the basics of bookkeeping. The skill will be vital properly keeping the books and monitoring the growth of the business.
4. Describe an innovative business idea that you have that is the basis for the rest of these opportunity analysis canvas questions.
Innovative business idea refers to the creation of more effective and unique business processes and products. In addition, the innovation may also stipulate the implementation of the complete idea or developing the already existing products (Günzel-Jensen, et al., 2017). For the case of this opportunity analysis canvas, I prefer the already existing business idea. Existing business have readily available data on the consumption trends, customer demand, availability of the suppliers and the general industry risks. Similarly, the risks of the success of these businesses have already been proven compared to the newly established. I have a passion for running a grocery business because it requires a smaller amount of set up capital and customers readily available. The requirement for setting up the business include identifying a suitable location for the grocery store. The store should be situated in a place with a higher volume of customers. The monthly rent payable of about $ 500( $ 6,000 annually). Other requirements include cash register machine for $ 4,000, freezers for $ 4,000 and refrigerators for $ 5,000. Shelves and display cases installing will cost approximately $ 3,000 while the carts and baskets are costing $ 700.
5. For your business idea, what are the knowledge and demand conditions related to this idea.
The demand for the grocery commodities refers to the amount of the groceries that the customers are eager and capable of purchasing at a given price over a stipulated period. The preparation of the grocery demand schedule is essential in determining the relationship between the various price and the quantity of the commodities that are consumed within price brackets (Negahban " Smith, 2016). Also, the program will provide critical evaluation the amount of the products to supply and what price margin to charge the consumers. The determiners of the demand are also important in studying the consumption trends and consumer behavior. The determiners of the grocery demand include the price of the product, the credit availability to the consumers, government policies, change in taste and preferences, level of family disposable income and availability of the credit facility to the consumers, the level of advertising.
6. For your business idea, what is the life cycle stage of your industry and the exiesting industry structure.
The grocery industry is at the growth stage. The industry growth rate depends on the increase in the population. For instance, an increase in the level of the population always create more demand for the grocery product hence making it to keep on growing every moment. The industry structure organization is characterized by several sellers who are competing actively for the customers. The industry players consist of larger stores and the small seller who operate at microscopic scale due to the capital constraints. Similarly, the grocery industry posses the structure of a free competitive market (Negahban " Smith, 2016). Every player in the sector has perfect information on the prices of the products. Many buyers and sellers also characterize the market. Again, the grocery industry is preferable to the small-scale entrepreneurs because it requires minimal capital for operation and experiences a minimum level of restrictions to join or leave the industry. The demand curve for the grocery industry is infinitely elastic. In most cases, the industry price is fixed by the market conditions since the contributions of every firm is considered insignificant. Just like other industries, the grocery market prices are determined by the interaction between the forces of demand and supply.
7. For your business idea, what are the demographic, psychographic, technical and societal changes as well as the political and regulatory forces in your industry.
Population, culture, and consumers behavior have a more significant impact on the grocery industry. For instance, an increase in the level of population will lead to an equivalent rise in the demand for grocery products while a decrease in the population leads to reduced sales within the industry. The statistics by the U.S Census Bureau predicts that the population age of 25 will likely increase by 20 percent come 2020 (Cho " Volpe, 2017). Increase in the population segment will create a more substantial increase the consumer purchasing power hence a possible increase in demand for the grocery industry products. Psychographics primarily looks at the consumers' cognitive attributes like their emotions, values, and attitudes. Therefore, the players in the industry can use the psychographics factors to study the changes in the consumer taste and preferences. Changes in attitude, emotions, and values may cause a segment of the population to stop the consumption of a particular commodity and in the event leading to a decrease in its demand and supply.
Technical developments are the primary drivers of the business today. Technological progress has moved the industry to the next height large grocery stores such as Amazon Fresh, and Walmart can sell their products online and make a door to door delivery to the clients. Based on the observation, technical changes have created a big difference in the method of doing business between the smaller grocery stores and the large grocery stores. The business regulatory environment is essential in marketing market efficiency. Some of the regulatory bodies that the business must ensure fully comply with include the United States Department of labor, the Federal Trade Commission (FTC) and Food and drug administration. These bodies maintain a healthy business competition within the industry, and thus every firm must comply with their provisions.
8. your team eliminate, reduce, raise and create. Describe why the factors that you all selected for the value curve are important for the customers.
Value curve will assist the team to determine where the value has been created in the business. For instance, the team will be able to identify all the competitive industrial factors, the buyers taste and preferences and the profile of the primary customers. The curve reflects how the buyers' strategies manifest and how they drive the grocery industry towards the red ocean (Sheehan " Bruni-Bossio, 2015). Based on the business idea, the factors which the team can eliminate are common industry factors such as the demographic considerations, industry cultural differences, and cognitive preferences. These factors may be temporarily eliminated because they do not directly affect the short-term business growth, but will only be felt in the long-run. On the other hand, we will devote ourselves to providing the customer with the excellent services and fixing their cognitive preferences. The parameters which should be created into the business plan involves the addition of the online shopping platforms and the mechanisms through which the product bought online can be supplied to the consumers. The team believes that the business must make good use of the available technology to improve its level of revenue and growth.
9. For your new business idea. Discuss how the learning curve influences your success, the complementary assets that are critical to develop for your venture and the reputation of the competitors.
The learning curve theory postulates that the time required by an entrepreneur to perform a particular task decreases with the level of experience gained. According to Wong, (2018), the time and cost of doing a specific task will significantly reduce with the increase in the level of skills learned in the course of conducting the business activity. For the success of the grocery business, the learning curve will help during the cost estimations, individual order bidding, setting work standards and budgeting for the business-labor requirements. Also, the concept will be applied in the labor performance evaluation and setting of various work incentives. Assets that are vital for the grocery business include cash register machine, the freezers, refrigerators and the shelves and display cases for carrying the items on sale. The industry faces a higher level of competition and success relies on customer satisfaction and loyalty.
10. For your new business idea, summarise why the problem is real, how your team’s solutions creates value for stakeholders, the types of advantage that you all possess, and your ability to build the right team.
Teamwork creates a breed for new ideas which are very relevant for business success. The primary challenge with the grocery business is the intense competition within the industry and financial constraints for the expansion of the existing business. However, the team can come up with unique business products including the consumer after sale services such as free delivery when they purchase products through the online platform.
11. List the references used for the analysis in APA.
References
Cho, C., " Volpe, R. (2017). Independent grocery stores in the changing landscape of the US food retail industry (No. 265463). United States Department of Agriculture, Economic Research Service.
Günzel-Jensen, F., Moberg, K., Mauer, R., " Neergaard, H. (2017). Self-efficacy and the entrepreneurial mindset revisited. In Revisiting the Entrepreneurial Mind (pp. 319-335). Springer, Cham.
Hsu, D. K., Shinnar, R. S., " Powell, B. C. (2014). Expectancy theory and entrepreneurial motivation: A longitudinal examination of the role of entrepreneurship education. Journal of Business and Entrepreneurship, 26(1), 121-140.
Karimi, S., Biemans, H. J., Lans, T., Chizari, M., " Mulder, M. (2016). The impact of entrepreneurship education: A study of Iranian students' entrepreneurial intentions and opportunity identification. Journal of Small Business Management, 54(1), 187-209.
Kautonen, T., van Gelderen, M., " Fink, M. (2015). Robustness of the theory of planned behavior in predicting entrepreneurial intentions and actions. Entrepreneurship Theory and Practice, 39(3), 655-674.
Negahban, A., " Smith, J. S. (2016). The effect of supply and demand uncertainties on the optimal production and sales plans for new products. International Journal of Production Research, 54(13), 3852-3869.
Norris, S. E. (2018). The Development of the Entrepreneurial Mindset, Critical Thinking Skills, and Critical Reflective Practices Through Experiential Learning Activities in Graduate Business School. In Critical Theory and Transformative Learning (pp. 148-169). IGI Global.
Rauch, A., " Hulsink, W. (2015). Putting entrepreneurship education where the intention to act lies: An investigation into the impact of entrepreneurship education on entrepreneurial behavior. Academy of management learning " education, 14(2), 187-204.
Sheehan, N. T., " Bruni-Bossio, V. (2015). Strategic value curve analysis: Diagnosing and improving customer value propositions. Business Horizons, 58(3), 317-324.
Wong, L. (2018). A Generalized Learning Curve Adapted for Purchasing and Cost Reduction Negotiations. Retrieved on 07 December, 2018 from http://dx.doi.org/10.1155/2013/584762
