Entrepreneurship and Small Business

Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University

المملكة العربية السعودية وزارة التعليم الجامعة السعودية الإلكترونية

College of Administrative and Financial Sciences

Assignment-1

MGT402 – Entrepreneurship and Small Business

Deadline: 23/10/2021 @ 23:59

Course Name: Entrepreneurship and Small Business	Student’s Name: ZAINAB ALSULTAN
Course Code: - MGT 402	Student’s ID Number: 180237391
Semester: I	CRN: 12662
Academic Year: 1443/1444 H

For Instructor’s Use only

Instructor’s Name: Dr. Asif Hasan
Students’ Grade: Marks Obtained/Out of	Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

· Students must mention question number clearly in their answer.

· Read carefully Grading Rubric below for specific criteria: 0-5 Marks

· Late submission will NOT be accepted.

· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

· Submissions without this cover page will NOT be accepted.

Entrepreneurship and Small Business

ASSIGNMENT -1

Submission Date by students: Before the end of Week- 7th

Place of Submission: Students Grade Centre

Weight: 05 Marks

Learning Outcome:

1. Demonstrate a solid understanding of the potential of entrepreneur in today's competitive business world. (Lo 1.2)

2. Demonstrate ability to think independently and systematically on developing a viable business model (Lo 1.3 & 3.7).

3. Understand the place of small business in history and explore the strengths and weaknesses of small business. (Lo 1.1).

Assignment Workload:

This assignment is an individual assignment.

Start-up Business Plan

Imagine you started a new business as an entrepreneur in Saudi Arabia.

Please, think and share information on the following items:

1. Owners, capital structure and company profile

a. Your Business Name, Address, E‐Mail

b.  Form of ownership: What is the legal structure? Sole proprietor, Partnership, Corporation…..

C. Investment capital

2. Company Business Description (300 – 400 words)

A. Scope and type of business

What business will you be in? What will you do? What market segment will you choose?

• Business idea: what is your big idea? Is it a product or a service? What makes your idea different?

• Mission Statement

• Company’s short-term and long-term goals and objectives.

• Target market and demographics: Who will your customers be? Where do they live? What is your target market passionate about?

B. Business Philosophy

What is important to you in your business?

• Describe your Industry: Is it a growth industry? What long term or short-term changes do you foresee in the industry? How will your company take advantage of it?

• Describe your most important company strengths and core competencies: What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?

• Risk Assessment: Evaluate the strengths and weaknesses of your business using SWOT.

• Scale of the business and its growth anticipation: what is the growth rate per year for five years? What do your 5-year financials look like? What is your path to profitability?

•Who is your competition and how do you beat them?

• Start-up costs: what costs do you expect to make the business run for the next five years?

3. Products and Services

a. Describe in detail your products or services (Technical specifications).

b. Size of business: how many employees? How many offices and retail facilities?

c. What factors will give you competitive advantages or disadvantages? Examples, include level of quality or unique or proprietary features.

Answers

START-UP BUSINESS PLAN FOR HOLYS FOOD ENTERPRISE

1. Owners, capital structure and company profile

· Holys Foods

· AL AHSSA - AL HUFOF

· [email protected]

· Fancy Coreen, Christine Renee.

Fancy and Renee have been the two founders of the Holys food enterprise for quite a long time. They started their business in the year 2005 and conducted it to continue to expand it further. The Holys Food enterprise is a partnership business owned by the two scholars mentioned above. The enterprise acquires funds from the daily sales acquired during production, loans, and donors' funds to finance the entire project. Investment capital is the total amount of money acquired by the company to pursue its objectives.

2. Company Business Description

A. Scope and type of business

The enterprise specializes in the production of two products that is dairy products and specialty products. In this case, dairy products, a slight increase in production is witnessed because the consumption rate is high. Therefore, it refers to the enterprise's production depending on the consumption rate (Mader & Frankenberger, 2021). However, these results are attributed to more sophisticated processing techniques, which have increased the variety of dairy products available and increased technical know-how. For Specialty products, research indicates that its market will continue to the point it attains stability.

The best business idea for the enterprise is to sell products through Ebay and Etsy. This idea of the enterprise is unique because it specializes in the production of two products simultaneously to maximize profits. The profits realized will be used to boost business to a high level. To make homes smarter and ensure that there is a continuous flow of food in the market while helping people save on production costs and in the marketplace is the company’s mission. Further, the business is determined to own the position of the largest partnership enterprise in food production in the future. At the moment, the struggle lies in profit maximization and providing enough food to the needy. Demographic information indicates that the sector is the strongest in metropolitan areas and has a high rate of opportunities in communities. Packaging and purchase marketing efforts are important in this market.

B. Business Philosophy

Business improves the quality of life by providing goods of high quality and service to people required for their enjoyment and health. The owner of Holy's enterprise stays employed where he generates income to improve the quality of life. Holy's enterprise is a growth industry because it has a significant development rate in its products, and most of the operations there are done in a modern way. However, the enterprise has a strong industrial base. Perhaps the company will grow and join the biggest companies in the world and acquire a reputation. This process will be accompanied by several projects being carried at a time (Baranova et al.,2020). Will maintain high expectations in the case of financial stability. A big company will attract more customers, thus making the company more marketable.

A deep proficiency that enables a company to deliver unique value to customers is Holy's core competency. Therefore, its competencies include the quality and reliability of the two products, flexibility, and the innovation of cutting-edge products. The two products have a growing demand because it is healthier thus people will compete for them. Giving excellent products to customers is a great necessity (Barlow et al., 2021). with six years of experience in a big restaurant as a waiter, skills and strength are the knowledge of communicating with customers to bring them back.

Using SWOTS analysis, the business has a strong team to run the services encouraging high sales. In addition, there might be weaknesses in the team in that there is a lack of enough experienced employees. Consequently, investors have great opportunities, and the commodity will bring a spark motion in the market. However, despite the opportunities, there is a great threat in the market due to other core business partners who intend to sell their commodities at lower prices.

The growth rate of the business is high, and this can be reflected in the next five years. Holys company is expected to grow double because of people's increased interest in the two products. The rising population also increases demand for the two products. As a result, more money will be brought into the company hence high profit is recorded. Companies offering ng the same commodity with a large number of customers is a great competitor. To overcome this, shift to more new products which are not competed for. A huge amount of money is required to finance the entire business for the next five years.

3. Products and Services

The product will have consisted of dairy composition, which entails yogurt, butter, cheese. The business will be large enough to accommodate over three hundred employees, twenty offices, and approximately fifty retail facilities (Barlow et al., 2021). Considering the quality will be a competitive advantage as the milk will be fresh and healthy for consumption. On the other hand, the competitive disadvantage can be the price of the product that Hoys is going to sell were by other sellers might sell at a lower price inconveniencing the company.

References

· Baranova, E. A., Zheltukhina, M. R., Shnaider, A. A., Zelenskaya, L. L., Shestak, L. A., Redkozubova, E. A., & Zdanovskaya, L. B. (2020). New Media Business Philosophy in Conditions of Mass Media Convergence. Online Journal of Communication and Media Technologies, 10(4), e202021.

· Barlow, P., Baehr, M., Beyerlein, S., Horton, J., Hurd, B., Jain, C., ... & Watts, M. (2021). Business plan.

· Mader, S., & Frankenberger, K. (2021). Business Model Diversification in Multi-business Firms: Performance Implications from Business Model Diversification Scope.