Roll No.

MM1820368
Name of Institute Balaji Institute of Modern Management (BIMM)
Batch 2018-2020
Specialization Marketing
Semester 4th
Subject Name Entrepreneurship
Submitted By Praneet Selukar
Submitted on Date 18/04/2020
Total no. of Pages Written 24

Question: 1 (a)
It is stated in the case that Chao thought of herself as an inventor and was interested in
creating new things. It also states that most of her creations were made for her own profit
or benefit and while inventing such things she had created something that she thought
would have a business edge and could have been offered as a product or service. Even
before Patel could go and see her invention the”EcoWash”, Chao had already tested the
product widely in the market. This is how Chao went about building EcoWash. The
approach used by here here was the Lean methodology.The lean startup strategy believes
experimentation to be more significant than nitty gritty arranging. Five-years of
marketable strategies worked around questions are viewed as an exercise in futility, and
client response is vital. Rather than marketable strategies, lean new companies utilize a
plan of action dependent on theories that are tried quickly. Information shouldn't be
finished before continuing; it simply should be adequate. When customers do not react as
desired, the startup quickly adjusts to limit its losses and return to developing products
consumers want.Disappointment is the standard, not the special case. Entrepreneurs
following this method test their hypotheses by engaging with potential customers,
purchasers, and partners to gauge their reactions about product features, pricing,
distribution, and customer acquisition. With the data, business visionaries make little
changes called iterations to products, and huge modifications called pivots correct any
major concerns. This testing stage may bring about changing the objective client or
adjusting the item to more readily serve the present target client.
However there are some problems with this approach and those are-
1.The Lean Startup model encourages features vs. whole products- Obsession with
companies that are built around a single feature, which appeals to a small number of
acquiring companies. Be that as it may, clients, instead of procuring organizations, need
entire items to take care of their issues. What’s more, simultaneously, it appears that
numerous business people have deciphered the Lean Startup model as an excuse to rush
incomplete or fractional products to market. The outcome? Parcels and bunches of
organizations worked around a set of features that matters to basically nobody, least of all
customers.
2.The drive to be minimal can lead to entrepreneurs to consider sacrificing on quality
when they shouldn’t- In spite of the fact that I accept that an individual giving you cash is
the best trial of whether you are building something monetarily advantageous, the
response to 'what is the least and quickest thing I can do so clients will pay me?', will be
reliant on what you need to construct. In specific conditions, quality will be required to
make clients purchase from you, it may even be the reason they purchase from you.
3. The drive to eliminate uncertainty can kill artistic vision- Some of the time we need to
make things not on the grounds that they can be 'approved' rapidly, however essentially in
light of the fact that we need to transform our brain's vision into a reality. Now and then
continually requesting sentiments can be restraining. Now and then we may need to work
the other route round, beginning with what we need to make and discovering individuals

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who love it as opposed to discovering precisely what individuals need us to make and
then making it.

Question: 1 (b)

Startups face many challenges and only the best go on to become successful companies.
One issue that holds traditional startups back is that they often start with a product idea
and then build it without making sure there is a market for it. Often, a startup will fail
because it does not deliver something that people want. A lean startup attempts to solve
this problem scientifically by using specific principles and processes. The idea of a lean
startup comes from Eric Ries, who has written extensively on it in a book and a website.
According to him, there are five main principles for creating lean startups-
1. Entrepreneurs are everywhere- There are many types of entrepreneurs and startups.
Tons of opportunities exist that entrepreneurs can take advantage of to build a
successful business
2. Entrepreneurship is management- Startups need management just like any company.
However, lean startups have a unique type. Having flexible, learning oriented
management makes for a successful lean startup.
3. Validated learning- Lean startups primarily serve customers with their products. They
adapt to the needs of the target market by learning exactly what it is that customers
want. Through experimentation, they find what works best.
4. Innovation Accounting- Lean startups keep detailed records of tests and analysis to
figure out what works best. They gauge progress on the amount learned about the
innovation rather than the amount of new work created.
5. Build-Measure-Learn- Lean startups hit the ground running by building the simplest
product that does what it should, called the Minimum Viable Product (MVP). This
goes through rigorous evaluation through tests and user feedback to collect data on
how targeted users accept the product. If it works, then they learn from the feedback
and make it better in an iterative process.

Question: 1 (c)

Chao embraced the “lean start-up” principles in her quest to create EcoWash can be
learnt from the following-
1. Entrepreneurs are everywhere- Chow met with Patel at a wedding at in that short span
got a hold that he might be a suitable partner for her business this shows her
willingness to search an entrepreneur everywhere.
2. Entrepreneurship is management- Chow knew that she was an inventor and needed
someone to manage the marketing and finance of the company. This was the reason
why she wanted Patel be her business partner. This proves the second principle of
lean management.
3. Validated learning- Chow invited Patel to come and have a look at the product that
she had created but event before Patel visited he she had already started testing her
product into the market and gathering feedback from the customers.

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 4. Innovation Accounting- She was well aware of the car wash industry and the existing
product. With the innovative product she created she was keen of finding more and
more advantages that the customers as well as the business could achieve with it.
5. Build-Measure-Learn- Chow had already built the EcoWash, she had started
measuring feedback and was learning what people are expecting out of the product.
Question: 1 (d)
 Car Dealerships-
Question: 1 (d)
Problem Solution Unique Value Unfair Advantage Customer
Dirty car Only 2gallons of Proposition 2 gallons of water us Segments
needs wash water used. Can Quick and as compared to 38 Customers
with less be mounted on environment gallons to other car coming for car
water wastage small pickup friendly car wash. wash businesses in servicing and
(Environment trucks. In and out market repair.
friendly) cleaning of car.
Key Metrices Channels
Less water usage Direct marketing,
and wastage. Newspaper, coupons,
EcoWash patented partnering with car
wash head. dealerships, radio,
Instagram and
Facebook.
Cost Structure Revenue Stream
Pickup trucks, equipment, salaried Spot sales and subscriptions.
employees to do the washing.
Cost Structure Revenue Stream
Pickup trucks, equipment, salaried Spot sales and subscriptions.
employees to do the washing.
Problem Solution Unique Value Unfair Advantage Customer
Fleets have a Only 2gallons of Proposition 2 gallons of water us Segments
large number water used. Can Quick and as compared to 38 Businesses
of vehicles be mounted on environment gallons to other car
which needs small pickup friendly car wash. wash businesses in
washing trucks. In and out market
regularly. cleaning of car.
Key Metrices Channels
Less water usage Direct marketing.
and wastage.
EcoWash
patented wash
head.
Cost Structure Revenue Stream
Production cost, Employee Repair subscriptions and sales.
salaries at production plant.
 Fleet Vehicles-

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 Question: 1 (d)
 Valets-
Problem Solution Unique Unfair Advantage Customer
Fleets have a Only 2gallons of water Value 2 gallons of water us Segments
large number used. Can be mounted Proposition as compared to 38 Behavioural-
of vehicles on small pickup trucks. Quick and gallons to other car Spending
which needs In and out cleaning of environment wash businesses in Demographic-
washing car. friendly car market Occupation
regularly. Key Metrices wash. Channels
Less water usage and Newspaper, B2B
wastage. EcoWash sales.
patented wash head.
Cost Structure Revenue Stream
Pickup trucks, equipment, salaried On the spot sales, Partnering with valets.
employees to do the washing,
Valet rents.

Question: 1 (d)
 Other aspiring entrepreneurs-
Problem Solution Unique Value Unfair Advantage Customer
Fleets have a Only 2gallons of Proposition 2 gallons of water us Segments
large number water used. Can Quick and as compared to 38 Fleet owners
of vehicles be mounted on environment gallons to other car
which needs small pickup friendly car wash. wash businesses in
washing trucks. In and out market
regularly. cleaning of car.
Key Metrices Channels
Less water usage Newspaper, B2B
and wastage. sales, direct
EcoWash marketing.
patented wash
head.
Cost Structure Revenue Stream
Pickup trucks, equipment, salaried Subscriptions to Fleet companies.
employees to do the washing.

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 Question: 1 (e)

There are some assumptions made in the EcoWash business model and those are as
follows-

1. Price of representatives' wages, vehicle wash laborers are paid $9 for 60 minutes,

2. sales reps paid $10.50 for 60 minutes; chiefs $20 for 60 minutes.

3. Assumption that they will work for 260 days per year which is each week 5 days
every week (no occasions)

4. assumption that provisions for vehicle washes and upkeep of hardware will cost
roughly $3 per wash

5. each wash takes 15 minutes they will charge $25 per wash

6. they will work 8 hours a day where they will spend about 2 hours a day doing
administrative stuff while the other 6 hours are spent doing carwashes, leading to
around $12k in revenue a month

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 Question: 2 (a)

Following were the general concerns with Alyssa Delaney’s business idea-
1. The case says, “start-ups often face the challenge of making themselves visible to
potential customers.” Now this was the first concern highlighted in the case. Here Alyssa
is anxious and wants to find a solution of how to make the target customers aware of her
new venture.

2. It is also stated in the case that Delaney has a huge follower base on Instagram, and she is
concerned over how to utilise these followers in order to gain profit through her start-up.

3. While having a conversation with her mother Delaney thinks if her mother will be
interested in selling her toys online through her new business as her mother was happy
supplying toys to the store.

4. One of the concerns that I found is that the large followers on Instagram like Delaney’s
stories that she posted about fashion, fitness and health topics.

5. She was also knowing about the cost associated with starting the business but she had
learnt in her class the a business can be started with minimal capital.

6. One concern that I found was that Delaney wanted to make use of the existing follower
base but she was confused as to how she can engage them in her start-up, but one thing
that she was forgetting is all of he followers followed he stories on health, fitness and
fashion and the three options that she had were not related to it.

Question: 2 (b)

Let us understand the detailed pros and cons of each of the 3 ideas-

Idea 1- Sell artisanal chocolates to the general public

Pros-

1. Producing handmade, customized artisan chocolate was Nathan’s hobby so he will like it
converted into a business

2. He often gifted these handmade chocolates to friends and family and earning money out
of it would be a nice idea.

3. He as already selling some chocolates to his uncle at the hotel.

4. Compared with many of the more expensive corporate products being promoted on
Instagram, handmade chocolates were a fun and affordable treat

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Cons-

1. Nathan had a full-time job as an accounts clerk and that would restrain him from
producing bigger number of chocolates.
2. Also, for the business to run smoothly and without hiccups, Delaney would require
Nathan to leave his current job and be a full-time partner at the business.

Idea 2- Purchase surplus clothing from the baby products store and set up as a discount reseller,
making a margin on each item sold.

Pros-

1. Delaney believed she could pick up a lot of products for a very low price.

2. Low price products procured could lead to significant margins on product she resold,
even if she charged a relatively low price.

Cons-

1. When the store which was well set was having surplus, it would be difficult for Delaney
to sell all of it. Which means there must be a declining or stagnant demand of the
products.

2. Also finding prospects who would buy baby products will be a tough job.

Idea 3- Become an online retail specialist in children’s dolls, selling her mother’s products
together with others sourced from elsewhere.

Pros-

1. Delaney believed that overstock situations, whereby retailers were prepared to sell excess
stock at a discount, offered an opportunity pick up a large stock of dolls at bargain-
basement prices.

2. She also remembered reading about numerous cheap craft products that were made in
developing countries, which might well include dolls.

3. Her mother herself used to make dolls at home so that would be a good and reliable
source of supply.

Cons-

1. Delaney did not know much about children’s dolls, not knowing the market where you
want to do business can be of danger.

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 2. Cheap craft products can be cheap in quality aspects and that would lead to spreading of a
negative word in the customers.

Question: 2 (c)
Sarasvathy (2001) named the entrepreneurial approach of causation as a procedure taking "a
particular effect as given and focus on selecting between means to create that effect". Drawing
upon her compelling work, we state that causation infers an enterprising focus on a predefined
objective and a plan to recognize and discover the way to arrive at this objective. All the more
explicitly, causation stresses innovative deliberateness, distinguishing and assessing openings,
obtaining assets, and deliberately exploiting opportunities that may emerge (Fisher 2012). It
suggests that business visionaries center around the current methods, which they expect to
emerge into at least one objectives that were not really predefined.
The 5 principles of effectuation are as follows:

Bird-in-Hand : For the inquiry which ascends in every one's head, Where do I start? , What do I
do? ; Bird in the hand rule would toss light to the correct entryway. How frequently do we
consider making an answer for the issues we face? The odds are low. We typically will in
general adjust arrangements found by others and proceed. We never consider taking care of an
issue what we face. This is the huge contrast among business people and others. We have to
examine what we are, the place do I stand, and what do I know. The appropriate responses which
we would acquire would clear its way towards a pitch from where we can plan to dispatch
ourselves.

Affordable Loss : Many who might want to fire up, stress over money related vulnerability
which joins it. This is if there should be an occurrence of enterpreneur. Anyway for a business
person it is another kind of dread. Each start-up adventure battles to respond to the
accompanying inquiries: Will our item/thought really fill in as arranged? Will it convey the ideal
advantages to customers? Is the planning of its presentation too soon or past the point of no
return? Will the market be sufficiently large and continue extending? Will our rivals respond in
unforeseen manners? Will our supervisory group have the right stuff to develop the
organization? Will our financial specialists remain behind the company?Risks are the stuff of
everyday business in the beginning up world, and business people and speculators must attempt
to envision, evaluate and alleviate a large group of dangers. This is the thing that Affordable
Loss guideline instructs. Business people ought to have a reasonable thought regarding what
misfortune may happen if something falls flat. This would set them up to confront the most
exceedingly awful yet prop them up since their brain is as of now arranged for it.

Crazy Quilt : Nothing comes prepared for a business person. This rule says that, business
visionaries work from little bits accessible and afterward get set to sell their story. It resembles
weaving an insane blanket which is made of various quality and examples of material and
afterward think of a perfect work of art. Here contrasting the crazy quilt with group, Prof. Saras
says one needs to distinguish ability from various differing foundation and hold them tight and
become large. A great group can pull off anything together.

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Lemonade : All of us think about the famous expression "When life gives you lemons, make
lemonade". This is one fundamental exercise to be comprehended and inferred by everybody. At
the point when one realizes how to turn a rock to pearl there he goes towards progress. Nobody
prevails in his/her first endeavor. Enterprise is something which don't have pre characterized
rules to follow. It is somewhat a trial where disappointments may happen. At the point when
disappointment occurs, grasp it and adjust to make changes which fix it. At the point when we
bomb we find increasingly productive approaches to move toward the equivalent problem.For
model, you have one organization and can't locate a decent answer for something. You start a
subsequent organization to unravel it and the subsequent one increases than the first one. So one
mantra to follow is to think imaginatively which would help turning each disappointment as a
venturing stone.

Pilot-in-the-plane: Knowing business sector or foreseeing it is troublesome instead of I state it is

incomprehensible. After all market is the goal for one's item. Handling the market conduct or
anticipating it is first thing a business visionary should know. Control it doesn't mean it ought to
be represented rather business person should realize how to adjust to the market needs and gets
his story selling. This is what being a pilot in the plane instructs you.

Question: 2 (d)
If I was Alyssa Delaney, I would have first finalaized one out of the three options that I have and
after finalizing an idea I would go ahead with the following-
1. Talk it out with Trusted allies- When you have a business thought that you think has
genuine potential, don't hush up about it! Offer it with confided in partners for their
assistance in refining and idealizing your vision, particularly on the off chance that
they're inside your objective market as a potential client for your business thought. Try to
pose inquiries: Do you think this business thought has potential? How might I tissue it
out? OK purchase this item or pay for this administration and provided that this is true, at
what cost?
Imagine a scenario in which you don't have any partners in the business territory you are
seeking after. Sharpen your systems administration abilities, and remember that even
individuals who aren't associated with your business can give imperative input by playing
forthcoming clients. Getting fair input, while some of the time difficult, is a basic initial
phase in transforming your business dream into a reality.
2. Research the Market- After you have built up your center business thought, some
statistical surveying important. What different players consume the space you need to
seek after? In what manner will your contribution be comparable or unique? Also, where
will your clients originate from?
In the exploration procedure, make certain to concentrate on more than the examples of
overcoming adversity. Is there a comparative business you can look to that didn't
discover achievement? Ask yourself what you will do another way.
Further, attempt to distinguish potential accomplices during this procedure. On the off
chance that you are propelling a pet nourishments item, for example, what kind of retail
stores will you need to adjust yourself to? The equivalent is valid for administration
organizations. Is there an organization out there that may esteem your administration as
an extra? Organizations will be important as you attempt to develop your business.

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 During this procedure, you may learn things that will make you reshape or re-examine
your unique thought, which is significant during the arranging stage.
3. Draft a Business Plan- Another crucial advance in propelling another business is building
up a strategy. Field-tested strategies can be formal or casual, yet they permit you to take
shape the center segments of your business before dispatch.
Interesting points: your business "story" and how you will outline it to potential
speculators and other invested individuals, money related and operational objectives,
projections, and how you see the business scaling after some time.
On the off chance that you aren't prepared to jump into a full marketable strategy, the
One Page Business Plan is an incredible asset.
4. Build prototype- In this case a prototype would be the Instagram page on which the
products will be sold. Building this page showing it to allies getting feedback and
modifying it as per the need of the customer would be a great idea here.
5. Raising funds- As Delaney is going to sponsor the little money required to turn her
personal Instagram account into a business account and other fees will be paid by her this
is a bootstarp start-up. Bootstraped businesses are built by people with little or no outside
funds.

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 Question: 3 (a)

Gender has been one of the data sources customarily utilized in the progression arranging in
family-claimed organizations. The after effect of this gender fact used to be that ladies were
prohibited from the administration of those organizations except if there were no other relatives
that could be potential successors.

Liu Bai is a gifted 35-year-old Chinese youth working at Tate and Lyle and has 3 sisters. He was
a child from well off business family who ran a sugar exchanging firm in Malaysia. As a child of
an affluent family, he had carried on a favored life and had effectively ascended the positions in
his expert vocation given his family's profound established system.

Be that as it may, he was not initially intended to live abroad. He had decided to do as such after
he felt smothered by his dictator father during his preparation days. His dad's outlandish analysis
and control lead him to leave his home, and after finishing his MBA in the US, he moved to
London to seek after an autonomous vocation in a similar industry as his privately-owned
company was in.

His family had cut off up association with him and he had not addressed them for a long time
before one day, when his dad Hong called him. Hong communicated his failure to keep running
the organization and spare it from flopping after late floods and political turmoil in the nation.
He recommended that Bai should come to Malaysia and work for his privately-owned company
since Bai's sisters were not keen on maintaining the business.

Also Hong believed that Gender roles and stereotypes existing in society have contributed to
keep discrimination against women. Ladies have generally been answerable for household issues
and dealing with their family, so proficient vocation took a second spot for them since it is
derived from the entry as it is tended to that Hong's significant other was relied upon to be a
perfect Chinese spouse who should deal with the residential issues and be very about them
before outsiders.

Progression designs in Asia are vigorously impacted by Confucian qualities and conventions. Liu
Bai's dad's demanding style of the board was run of the mill of Chinese families, yet his basic
and testing way made it outlandish for Bai to work with him and Hong was not in the least ready
to hand over his business to his little girls. While it might appear to be unusual to Westerners,
kids should bow to the Confucian perfect of the patriarch, considerably more impressive than the
state the extent that the government assistance and administration of the family is concerned.
Clashes are settled by the family, inside the family.

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At long last, gender may impact all the variables that add to mentality. As the contextual
investigation shows, guys may see themselves as potential successors which can affect their
mentality towards working in the privately-run company. On the opposite side, females may not
see themselves right now, along these lines, they may have negative or uninterested mentalities
towards joining the privately-owned company as an official.

As an end to this case, Gender has played a fundamental for finding a successor for the business
as Hong who was tyrant character individual consistently accepted that men could demonstrate
out to be acceptable successor for the business when contrasted with ladies. This point has been
derived from the announcement made by Hong as, "Liu Bai should come to Malaysia and work
for his privately-run company."

Question: 3 (b)
The undertaking of working a family-claimed organization is frequently incredibly muddled by
pressure emerging from competitions including a dad and his child or other relatives who hold
positions in the business. Except if the principals face up to their sentiments of threatening vibe
the business will endure and may even kick the bucket.

The kid naturally has uncertain clashes with his dad, late reviews demonstrates. The person is
thus awkward when being administered, and begins own business both to exceed their dad and to
get away from the position and competition of all the more remarkable figures.

Lui Bai had gotten a touch of life Asia across to England. Bai was very open about being an
individual from an amazingly well off abroad Chinese business family. As somebody who had
clearly appreciated an advantaged childhood, entryways constantly opened before Bai needed to
thump.

The past had likewise left more subtle however difficult mental scars. Bai had gotten some
distance from convention, the privately-run company's domain, and the family itself – and had
fled toward the West to turn into a deliberate outcast in London. Bai's dad, Liu Hong, had been a
tutor somehow or another yet in addition a tormentor. There was no other alternative however to
escape from his impact and from the privately-run company.

Tragically, Bai's conduct, carrying on with an autonomous life a long way from home, was
unsuitable to the family, who felt disrespected by having a youngster who had uppded and left.
For an abroad Chinese family, a kid who dismissed his obedient obligation was more terrible
than having a kid who had died. Bai had been excluded and the family moved in around the
patriarch, Lui Hong, as they generally had.

Following quite a long while of declining benefits, Plantation Sugar Trading, the family
organization established by Bai's extraordinary granddad, was battling. It was a developing
industry and the Malaysia-based business had battled from the ongoing flooding and political
turmoil in the nation. Hong disclosed to Bai that he wanted to see the family firm gobbled up in a
securing, however he was old and not, at this point needed to show it to himself. As his other
youngsters were not inspired by business, duty regarding the family undertaking fell on Bai.

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Thus Bai would need to come back to Malaysia or Hong would sell the organization as fast as
could reasonably be expected, regardless of whether that implied selling at a misfortune. This, he
reminded Bai, would bring disfavor not just on the living individuals from the family yet
additionally on the memory of the previous ages.

Bai obviously required time to consider the proposition and vowed to offer Hong a response
inside about fourteen days.

The impediments of discerning business thinking in exceptionally enthusiastic circumstances:

Uncertain clashes with relatives effectively present in positions where they determine wages.
The delights of carrying on with an autonomous life and the dread of stopping those.
The weight of being named a disfavor to the family one has on him while deciding.

Question: 3 (c)

The tale of a privately-owned company is exceptional. Its eccentricity will rely upon the attitude
of the family, conditions, the economy, and different factors inside or outside of human control.
There are, be that as it may, common examples to be perceived in privately-run company
advancement. The manner in which privately-owned companies develop naturally characterizes
the clear stages, challenges, and practical techniques. The achievement or disappointment of
privately-run company relies upon a few components.

Progression designs in Asia are profoundly affected by Confucian qualities and ethnicity. Liu
Bai's dad's requesting style of the board was common of Chinese families, however his genuine
and requesting way made it outlandish for Bai to work with him, even in the Asian setting. While
it might appear to be uncommon nature to Westerners, kids should bow to the Confucian perfect
of the patriarch, considerably more remarkable than the state the extent that the government
assistance and administration of the family is concerned. Clashes are settled by the family, inside
the family.

For Liu Bai, a Chinese Successor's Dilemma, key gathering examination is significant in light of
different resons.

 Strategic industry elements

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• Help in investigating the vital elements and moves in the business.

• Identify the nearest rivalry and contending players for the business; help in evaluating the
key course of these contending players; and in conclusion, help in creating methodologies to
remain in front of the opposition.

 Assessment of market position of the Liu Bai current business

• The key gathering examination is likewise significant for Liu Bai, a Chinese Successor's
Dilemma since it will help with breaking down the present market position of players, just as
help in evaluating future key moves and headings of the opposition in the market.

• Assists in assessing and distinguishing diverse hidden variables that will impact the
organization's productivity.

• Make utilization of standard correlation angles between various players in an industry to

gather them according to vital bearings just as vital measurements.

• Liu Bai A Chinese Successor's Dilemma can move in the direction of building economies
of scale

• Maintaining business costs and controlling the last cost of the item can likewise help Liu
Bai, a Chinese Successor's Dilemma battle monetary shakiness.

• Liu Bai, a Chinese Successor's Dilemma can likewise progress in the direction of
building a reasonably overseen workforce.

• The speedy pace of mechanical change at Liu Bai, a Chinese Successor's Dilemma might
be passed through development.

 Combat the danger from substitute items

• Focus on conveying reliably high caliber.

• Focus on keeping up solid buyer connections.

• Integrate vital promoting to frame an enthusiastic association with the shoppers and
reinforce buyer unwaveringness.

• Invest in spring up stores claimed by the organization to stock the Liu Bai, a Chinese
Successor's Dilemma image solely, and incorporate it with brand qualities and character to pull
in purchasers.

• Another vital proposal for Liu Bai a Chinese Successor's Dilemma is to venture into more
up to date locales and markets. This should be possible by venturing into new markets, initially.

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The development will give the organization introduction to new shopper gatherings. Increment
the general utilization rate, just as spread salary streams. Likewise, it will give the organization
related colossal introduction provincially just as universally.

 Product broadening could prompt extend the business

• Another methods for development is through item enhancement. By including new items,
the organization will jump profound into existing markets bye investigating new shopper
gatherings, and new objective purchaser gatherings. This will likewise grow pay streams for the
organization, and increment its overalls portion of the market.

 Strengthen esteem system could contribute for a decent incentive to a business

• By combination the worth system further, and by including quality and upgraded
components at various stages, the organization will have the option to keep up upper hand, just
as put off new players from the business by expanding bars to passage. This will permit the
organization to keep up manageable intensity over different players, just as keep up a potential
administration position in the nearby and universal markets and industry.

Question: 3 (d)

Liu Bai was accessible with the accompanying choices to settle on the progression choice for the
business:
• Liu Bai had a choice to disregard his dad's call and keep living in status, proceeding with
his expert vocation in London.
• Bai could move to Malaysia and spoke with his dad and family to assist them with
maintaining the business, to in the end come into the business his incredible granddad had
established.
• Bai could concoct a center arrangement, recommending that he can return to help his
privately-run company without considering current circumstance, post which he would return
and proceed with his life for what it's worth.

Criteria for Evaluation of Bai's interdependencies and interrelationships of the progression:

1. One's Happiness and Satisfaction: Bai can decide to remain back in London inferable
from his present condition of fulfillment and substance with his expectations for everyday
comforts. He has developed to his positions freely and may jump at the chance to keep
living his live with no guarantees.
2. Inspirational Success in profession: The measure of accomplishment can be emotional
however is to a great extent quantifiable by the position at which Bai would be working
and the status he would have accomplished by the decision he makes.

3. Improving weary relations: The relations among Bai and his family have for some time
been focused and the choice could conceivably prompt the connections getting repaired.

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4. Family's status in question: The privately-run company conveys with it the pride and
regard of the family in the general public which is an additional inspiration to spare the
business separated from financial benefits.

Evaluation of Alternatives:

Serial No. Options  Ignore Go to Help bring

Hong’s call Malaysia business
and stay in and take back on
Evaluation Criteria london over track and
business return

1. One’s Happiness & ✓✓ ×× ✓

Satisfaction

2. Inspirational Success ✓ ✓ May or may

not be

3. Improving strained × ✓ May or may

relations not be

4. Family status at stake × May or may ✓

not be

1. Ignore Hong's get back to and afterward remain in London: The choice accommodates
Bai to keep owing his free space and not succumb to potential fit of rage that his dad may
have tossed to get him back to his home. This is basic given the enthusiastic unsettling
influence looked by Bai from his dad, and Bai might want to stay away from any
opportunity of him getting over into the resentful circumstance of his family's way of life.

2. Go to Malaysia and claim business: This alternative would lead him to forfeit all
theachievement he has accomplished as of not long ago and move to an acquired
achievement base, something he doesn't totally relate to.

3. Help bring business back on right track and return: This alternative opens up the chance
to add to the family without focusing on his dad. Nonetheless, this puts forth Bai helpless
against his dad's attempts to hold back his child.

Suggestion:

Based on the previously mentioned thinking and genuine investigation, it is prescribed that Lui
Bai should remain back in London. Given he has kept himself separated from his family for a
long time with no issues, he can proceed with the norm and spotlight on his own needs.

Strategy:

16
Bai should educated his dad to tell him that he has choose to not returned. He can tell him that he
can't connect with his privately-run company. Besides, he should communicate his emotions
about his youth which have had an essential impact in his choice. He should also offer all
monetary and working help remotely from London.

Alternate course of action:

It his exceptionally seen that his dad may attempt to harm his vocation as a reprisal. For such a
condition, Bai should keep his employer stability on need and might stay with his' authority on
top of it about his present circumstance.

Question: 4(a)
Memaksa Steel is an Indonesian steel products manufacturer. In recent times Memaksa steel has
urbanized a new finishing process which when subjected to intense abrasion during use, reduce
the damage time on steel by 60%.
The marketing department believes this modernization should be applied to steel saw blades to
be utilized in Indonesia's lumber mills. Saw blades manufactured using this new finishing
process would sell for 35% more cost than the older ones, but would significantly boost the
cutting time before soliciting for replacement. In order to launch a thought within the Indonesian
market, following factors would be the key to success:
The first step taken before launching a product or a marketing campaign is the suitable research.
Time and resources would be the key information required necessary for the implication of the
marketing campaign. The event of targeted audience and their expected response is important for
the launch to be successful. Also a pre-research must be conducted to stop from spending an
excessive amount of costs, time and resources. The success of a launch highly depends on how
effective the goals of the corporate are pre-determined. A product launch is totally different from
a whole business launch. The goals of launching a product could be identifying customer base
along with its growth in market share; and building a picture of the new product launch.
The targeted audience must be known before time, together with the relevant information
associated to the audience regarding their geographical dimensions. The audience targeted
should be considered via segmentation in keeping with their needs, choices, and perceptions. The
social and psychological factors pertaining to the environment, where the targeted audience
exists, must be considered as well.

A proper formalized plan could be a key factor of a successful product launch. The strategic plan
must be developed which should be in accordance with the objective of the corporate. All phases
of the launch must be incorporated with a plan.
The marketing plan, timings, nature, information regarding the targeted audience and therefore
the methodologies to achieve consumers must all be clearly identified. Design, pre-launch and
post-launch must be included in the breakdown of all phases. The budget and specialized
analysis tools to be used also are a key factor behind a successful launch.

The marketing channel is taken into account on where we would launch our product and what
methodologies would be opted. Selection of social media, planning a launch event, initial time
line, and pre and post measurement of the result comparatively to the goals initially set.

17
A rolling launch is appropriate to keep a launch being effective throughout the lifetime of the
expected launch. The outbound activities should be conducted in the beginning for the successful
implementation of the launch. The ease of use of products and services within the market before
time creates awareness for the audience especially those who are influential. An analysis of the
expected outcomes and the market conditions are extremely beneficial for the authentic outcome
to be effective.
The involvement of partners and every stakeholders is the key for every booming launch of a
product into a new market. The financial stake should go hand in hand with the operational
management’s stakes. Aside from this, the reliance should be based on actual data rather than on
data that does not add value to the business. Social channels and consensus could lead on to raise
the picture of the customers’ perceived value for the new product.
The allocation of resources could be a key success factor of a specific launch in the new
Indonesian market. In terms of time as a limiting factor, the company should reach dead set
partners before time, influencers who are able to invest or participate in the launch, those who
have accepted to assist during the launch; and accumulating all deadlines within a calendar.
The company would launch this product as the Government of Indonesia had declared this
invention to be one among the five most commercially viable innovations within the country and
had given Memaksa Steel a National Science Institute Award.

Question: 4(b)
Memaksa Steel, an Indonesian steel products manufacturer, has developed a new process that
reduces the wear time on steel by 60% for products that are subjected to intense abrasion while
using.
A proper formalized plan is a key factor of a successful product launch. The strategic plan must
be developed which should be in accordance with the overall objective of the company. The plan
must incorporate all phases of the launch.

18
The marketing plan, timings, nature, information regarding the targeted audience and the
methodologies to reach consumers must all be clearly identified. The breakdown of all phases
must include design, pre-launch and post-launch. The budget and specialized analysis tools to be
used are also a key factor behind a successful launch.
The marketing channel is considered as to where we would launch our product and what
methodologies would be opted. Selection of social media, planning a launch event, initial time
line, and pre and post measurement of the outcome comparatively to the goals initially set.
A rolling launch is appropriate to keep a launch being effective throughout the life of the
expected launch. The outreach activities should be conducted before the initial launch for the
successful implementation of the launch. The availability of products and services in the market
before time creates awareness for the audience especially those who are influential. An analysis
of the expected outcomes and the market conditions are extremely beneficial for the actual
outcome to be effective.
The involvement of partners and all stakeholders is the key for every successful launch of a
product into a new market. The financial stake should be in line with the operational
management’s stakes. Apart from this, the reliance should be based on actual data instead of data
that does not add value to the business. Social channels and consensus could lead to better
picture of the customers’ perceived value for the new product.
There were two ways of selling saw blades in the market channel:
Saw blades and other metal products (such as drive shafts, metal rods, etc.) were sold to
industrial metal implement distributors, who in turn used their own sales force to call on
domestic fabricators, saw mills and industrial manufacturing facilities;
These products were sold to industry outfitters, who in turn resold a broad line of goods,
including saw blades, to sawmill. At times, outfitters bought these products directly from the
distributors. In general, distributors received a 20% discount while outfitters enjoyed a 15%
discount. Memaksa currently owned a 20% share of the domestic saw blade market. Exports
were not a material part of their volume.

Question: 4(c)
Manufacturers have two primary channels for getting their products to plug and putting them
within the hands of shoppers.
 The channel could be direct sales, which holds many challenges for manufacturers. Direct
sales—selling on to customers—requires manufacturers to be specialists in every aspect
of the marketing and provide strategies involved in building, storing, marketing, selling,
and delivering their products to customers, retail stores, or other outlets. Because the
direct sales model is so challenging, many manufacturers opt to work through distribution
channels to plug their products. Distributors gets their product directly from wholesale
manufacturers, then market those products through a network of retailers. Distributors
look after the logistics and marketing requirements that manufacturers were not able to
handle in house.  
So during this case the manufacturer-distributor relationship benefits both parties. At its best, this
can be a partnership that helps both partners meet their goals. But so as to induce the foremost
out of the relationship, manufacturers and distributors need to carefully manage the relationship
to make sure both parties are in alignment.

19
The important factor of success in a manufacturer-distributor relationship is for both parties to be
on the same page as to whether the relationship is strategic or tactical.
 A strategic relationship requires connected partnership from both the manufacturer and
the distributor in marketing, branding, and development of the product. In a strategic
relationship, a distributor doesn’t force the selling of the product, they also provide
feedback and insights to the customers, possible product improvements, and new
products to meet demand identified in the market. The distributor is the expert on the
customer, while the manufacturer is the expert in designing, developing, and producing
the product.
 A tactical relationship has several limitations. Tactical manufacturer-distributor
relationships focus mainly on increasing sales. Manufacturers develop the product,
distributors handle the logistics and marketing involved in getting those products into the
hands of buyers. The software industry refers to its distributors as forced selling of the
product and while this is partial characterization of what software distributors and it does
shed light on how a tactical distribution relationship might supposed to be from the
manufacturer end. A tactical relationship is easy to replace, so both parties will look after
how to make the relationship more strategic or else they will face the loss of a significant
source of revenue.
The suitable relationship for this case is tactical manufacturer-distributor relationships which
helped company to gain a significant amount of income due to win-win situation for
distributor as well as for manufacturer which can be seen from the fact that distributor
received 12% discount due to which they preferred selling Memaksa’s products thereby
contributing for generation of income
Question: 4(d)
If the channel does not want this product, the management should prepare a proper formalized
plan. The success of a launch mainly rests on how effective the targets of the company are
already determined. A product launch is completely different from an entire business launch. The
goals of launching a product could be identifying customer base along with its growth in market
share; and building an image of the new product launch.
A proper formalized plan is a key factor of a successful product launch. The strategic plan must
be developed which should be in accordance with the overall objective of the company. The plan
must incorporate all phases of the launch.The marketing plan, timings, nature, information
regarding the targeted audience and the methodologies to reach consumers must all be clearly
identified. The breakdown of all phases must include design, pre-launch and post-launch. The
budget and specialized analysis tools to be used are also a key factor behind a successful
launch.The timing when the saw blade should be sold in the market in the large scale should be
dependent on the demand of the saw blade in the different geographic locations that depend on
how the steel mills are running in different geographies.
The targeted audience must be known before time, along with the relevant information
associated to the audience regarding their geographical dimensions. The audience targeted
should be considered via segmentation according to their needs, choices, and perceptions. The
social and psychological factors pertaining to the environment, where the targeted audience
exists, must also be considered.The allocation of resources is a key success factor of a particular
launch in the new Indonesian market. In terms of time as a limiting factor, the company should

20
reach out to partners before time, influencers who are ready to invest or participate in the launch,
people who have accepted to help you during the launch; and accumulating all deadlines within a
calendar.The marketing channel is considered as to where we would launch our product and
what methodologies would be opted. Selection of social media, planning a launch event, initial
time line, and pre and post measurement of the outcome comparatively to the goals initially set.
A rolling launch is necessary to keep a launch being efficient throughout the life of the expected
launch. The outreach activities should be processed before the initial launch for the successful
completion of the launch. The availability of products and services in the market before time
creates awareness for the audience especially those who are influential. An analysis of the
expected outcomes and the market conditions are extremely beneficial for the actual outcome to
be effective.
The involvement of partners and all stakeholders is the key for every successful launch of a
product into a new market. The financial stake should be in line with the operational
management’s stakes.
Apart from this, the reliance should be based on actual data instead of data that does not add
value to the business. Social channels and consensus could lead to better picture of the
customers’ perceived value for the new product.

Question: 5 (a)
Since the inception of the company, it is true that the co-founders consistently carried out
hypothesis driven decision- making. After the successful launch of “GHARPAR: THE LEAN
BEAUTY START-UP” in the twin cities it has been observed that due to the partners’ limited
market research which suggested that the majority of their customer demand existed in
Islamabad which leads to development of the headquarters in the relatively expensive Sector F-
10 and launched in the city but it was observed that the reality was quite different.

During the first three months, a larger number of customer orders originated from Rawalpindi
than from Islamabad, even though the company hadn’t formally launched in Rawalpindi yet.
Owing to the large distance [~15 km] between Islamabad and Rawalpindi, managing customer
orders in Rawalpindi through the headquarters in Islamabad proved to be inefficient. There is no
point in considering Islamabad and Rawalpindi as one city as many people do because they’re
geographically widespread enough to be considered distinct markets. The result of this situation
leads to launch of a satellite hub in Rawalpindi six months after the initial Islamabad launch, to
manage the area’s operations, but this step should have been taken from the beginning.

The partners also believed that, customer acquisition proved to be a significant challenge in the
twin cities market, they believe that difficulties with acquiring new customers in Islamabad was
due to the fact that a larger proportion of women in Islamabad prefer going out to salons as part
of their socializing or social activities as compared to Lahore. The nature of city life is much
more outgoing. In that sense, even Rawalpindi is slightly better than Islamabad because women
stay at home more often but this was completely based on assumption without any market study.

Also, the launch in Islamabad was based on an assumption of customer demand for which we
had taken social media inquiries and interest from the city as a proxy. However, I believe that
more specific market research was required, which would have allowed them to reduce the
logistical and operational challenges. As it stood, they replicated the Lahore blueprint onto

21
Islamabad by launching their entire slate of beauty services for women and opening up the entire
city too quickly. In retrospect, they might have ‘phased out’ the launch, by targeting specific
services to specific localities where there was a greater demand for them. Still, despite the
challenges and hurdles which lay ahead, the partners were more energetic than ever about
making the twin cities expansion a success.

So for successful launch of “GHARPAR: THE LEAN BEAUTY START-UP” in the twin cities
it was very important to make a complete market research study of these two cities rather than
bluntly making decision based on the vague assumptions. Since the thorough study of the two
cities would help company to completely understand the demand in the market catering to the
needs of women in the two cities and accordingly the company could have offered the
customized services to the women in the cities depending on the requirement.

Question: 5 (b)
GharPar's unique approach starts with training beauticians to a certain professional levels.
Beauticians specialize in one or more trade, and after successfully completing their training they
are connected with clients through a mobile app. GharPar provides its beauticians signature
cosmetic products. The company has nearly 30,000 clients in Lahore alone, and a team of more
than 100 beauticians. 
While great businesses are as difficult to find as they are rare, it’s never a bad time to start a
company.
One thing you should realize is that it’s extremely hard to build a product you don’t actually
need yourself—it’s possible, but you will only be making it so much harder for yourself to
succeed.
So, I thought of creating a product I will love: you need to be your own customer in your early
days, and there’s nothing better than creating a tool that solves a real problem or need you have.
While it's always a good idea to research your market early on and get a better understanding of
who will ultimately be using your tool, if it's your own issue you're solving, you'll be much better
positioned to build a first version which is closely aligned with what your target market really
wants.
Solving your own problem also makes your vision much stronger: you're building something you
truly believe in (unlike what we did, say, when we decided to build a mobile app that nobody
really wanted, including ourselves).
We would address a real need in a market that was growing; more importantly, we would build
something we ourselves would love to use.
Early on, we will put a lot of effort into learning all we can about the target market to truly
understand who we’re trying to sell to. We should also spend time learning about SaaS metrics
and the effect they can have on our business. We can only succeed in the long term if we give
our users a product that is incredibly easy to use. Even if the product offers unique functions
unlike any other product, if users find it difficult to use, they will look forward to the time they
either no longer require it, or to the day they can look up to a better alternative.
And if they stop using your product after a while, you may find you're not actually making any
money. Having a hard-to-use product can be one of the primary reasons your users churn.

22
We will think of ways to build a fan-base rather than user-base. Once we’ve built a tool that is a
pleasure to use, we will stay in touch with our users through a transparent, feedback-driven
product cycle. Instead, we need to build a company where everyone truly understands our users
and what they’re getting out of the product. For starters, giving our users an easy way to contact
us and give us feedback should be at the very top of our list for our products. When we collect
the initial feedback, we would be grateful that users are taking the time and energy to help, even
if it may sound like there’s little they like about the product.
The key here is to track every request we receive, and not necessarily act on each one. As a co-
founder, we will need to carefully decide which requests gel well with our vision and which do
not. If we’ve decided we won’t work on something, we will be honest with our users. We will
explain what we’re trying to do and share our vision. We would suggest alternative tools when
users would request features that will be completely beyond the scope of what we were trying to
do.
Question: 5 (c)
The lean start-up model method has three key principles:

1. Instead of engaging in months of planning and research, entrepreneurs accept that all they
have one is a series of untried hypotheses which are basically a good assumptions.

So instead of writing a complex business plan, founders summarize their hypotheses in a

framework called a business model canvas. Essentially, it is indication of how a company
creates value for itself and its customers.

2. Lean start-ups uses a “get out of the building” approach called customer development to
test the assumed hypotheses. Employees go out and ask potential users, buyers, and
partners for feedback on all elements of the business, including product features, pricing,
distribution channels, and affordable customer acquisition strategies. The emphasis is on
litheness and speed.

New schemes rapidly assemble minimum viable products and immediately produce
customer feedback. Instead of customer contribution to revise the assumptions, they
provide redesigned offerings and making further small adjustments or more substantive
ones to ideas that aren’t working.

This point can be made viable to the case as the people in the company could go and
identify the problem that the customer are facing and according to the varying requirement
of the people in two different cities customised services can be offered to the client so as to
increase the customer base thereby increasing the reach in the market.

3. Lean start-ups practice something called agile development, which is originated in the

software industry. Agile development works hand-in-hand with customer development. In
contrast to the development cycles that presume knowledge of customers’ problems and
stock needs, agile development eliminates wasted time and resources by developing the
merchandise iteratively and incrementally. It’s the method by which start-ups create the
minimum viable products they test.
23
The case can be related to this point as it is stated, “The processing of payments for Gharpar
Company services was automated through the Sim-Sim Mobile Wallet, with fortnightly payroll,
once deductions were made for toolkit instalments, product purchases, and penalties. The
beauticians only had to visit the HQ for the initial training and to purchase new product(s) to use
during the service. In the same vein as Lahore, customer order processing was completely
automated through the website and mobile application and beauticians were automatically assigned
to customer orders. However, given all of these facilities, challenges surrounding the utilisation of
beauticians had emerged even more significantly in this market than in Lahore. Manual assignment
of customer orders to beauticians [who were available and willing to take up the order] would
often take precedence over the formal criteria for assigning orders.”

So this problem of the company could be completely resolved by agile development. Since agile
development eliminates wasted time and resources by developing the product iteratively and
incrementally. It’s the process by which start-ups create the minimum practicable products they
test.

Question: 5 (d)

Yes, this is the right time to undertake geographical expansion into the twin cities.
Geographic expansion is undoubtedly one of the most expensive and most unsuccessful strategic
options that a contractor can opt for. However, almost every service provider of considerable size
attempts it at least a single time. The strain of managing a workload in the current geography,
bought together with starting up business development in a new geography, is one of the hardest
transitions any company can make.

In this hyper-connected environment, geographic expansion does not just mean opening an office
at a decent locality. It can come in the form of traveling with a customer for projects, sending
business development professionals to look for new opportunities in a market, or simply joint
offering in a new market to deliver a project up to your wheelhouse. Many successful contractors
know this and maintain most project and corporate services at headquarters.

There has been a considerable increase of demand in Lahore. There were difficulties with
acquiring new customers in Islamabad. Perhaps this is due to the fact that a larger proportion of
women in Islamabad prefer going out to salons as part of their socializing or social activities as
compared to Lahore. The nature of city life is much more outgoing. In that sense, even Rawalpindi
is slightly better than Islamabad because women stay at home more often. Although I can’t say that
we have had explosive demand from Rawalpindi either; nothing close to Lahore at least.

Keeping in mind the current condition, more specific market research was required, which would
have allowed to reduce our logistical and operational challenges. Replicating the Lahore blueprint
onto Islamabad by launching our entire slate of beauty services for women and opening up the
entire city too quickly. In retrospect, it might have ‘phased out’ the launch, by targeting specific
services to specific localities where there was a greater demand for them.

To keep employee busy during the transition, leaders need proper communication and strategies
that keep the team united. Also, lack of employees would be a problem here but with enough back-

24
up one can proceed. The over-confidence of co-founders can lead to some wrong decisions but if
processed thoroughly it can turn out to be a game changer.

Even with proper persistence and a good strategy in place, geographic expansion is risky and can
result in collapse. Many service providers fail when tackling new markets just because of market
dynamics of supply and demand. So, with a proper exit strategy at hand it shouldn’t be an issue to
undertake the twin city expansion, instead of continuously focusing on Lahore Market expansion.

25