TUTORIAL 1 FOR IIC-2

FUNDAMENTALS OF ENTREPRENEURSHIP AND

ENTREPRENEURSHIP SKILLS

Submitted by
SULAGNA DUTTA
Division.B... PRN..17010323124..Class 2017-22.
Symbiosis Law School, Hyderabad
Symbiosis International University, Pune
In
January, 2020

Under the guidance of

Dr. Prageetha G. Raju .
Assistant Professor
Symbiosis Law School, Hyderabad
Symbiosis International University, PUNE
 FERRUCCIO LAMBORGHINI

1. Who is this individual?

The story of Lamborghini Automobili traces back to 1963 and in order to study the roots of
this luxury brand we must go down to the roots of Ferruccio Lamborghini. This competent,
impetuous, robust-willed Taurus, born in 1916, was the key character in the company's
foundation and the early phases of its remarkable success. Ferruccio was already a very wealthy
person by the time he decided to build a factory of premium sports cars. He founded his tractor
factory in the period following World War II, which he launched with enthusiasm and
dedication, thereby becoming a major point of reference in this industry. By the early sixties,
Lamborghini was an influential and powerful man who knew exactly what he wanted but many
people assumed he was insane when he said he was planning to build the best super sports car
ever. Building this type of car was seen as an unnecessary indulgence, a risky leap into the
unknown, and something that would squander his riches without ever turning a profit.

2. What do you know about them? What are the entrepreneurship skills/competencies?
Ferruccio Elio Arturo Lamborghini was born under the Zodiac sign of Taurus on April 28,
1916, his parents were peasants but Ferruccio soon decided that he wanted to do something
with technology and motors. Lamborghini pursued his dream and built a company around
something he did really well and something that was not simple to do by any standard. He
used his military experience, and in just 20 years, Lamborghini has turned a small single-man
business into a sports car giant in the market of Luxury cars.

3. What companies did he start? When?

He started to, out of desire working on his father's tractor and was later able to join a technical
school in Bologna. He was enrolled in the Italian Air Force during the Second World War and
the year 1944 ended up making him a prisoner of war by the British Military Forces who made
him work for the Transport sections. This gave him first hand exposure to put cars to test on
the roads despite limited part supplies. Subsequent to him going home, he initiated the practice
of converting surplus motor parts into tractors for the needy peasant class. This was how the
Lamborghini tractor business had its start and soon it became successful to get successful
occupying much bigger premises from that of a small garage. Ferruccio had started optimizing
Fiat cars by then; he actually built himself a Fiat Topolino and joined the Mille Miglia
competition in 1948, but an unfortunate event struck him and the car was wrecked in an
accident.

By 1949 Ferruccio Lamborghini was able to start building tractors from scratch, without using
any leftovers, the Lamborghini Trattori factory was founded and production soon grew even
further. The Lamborghini tractors became known as the best in Italy and Ferruccio began to
arrange tractor-pulls in his hometown just to display the supremacy of his mechanical expertise.
Another factory of him was started to build air-conditioning and central heating systems. This
additional business made Ferruccio Lamborghini even more prosperous and he soon became
one of Italy's richest men, his love for fast cars became legendary as Ferruccio owned several
exotic cars back then, including a Mercedes SL300, a Jaguar and a Ferrari. When his personal
Ferrari ran into problems, he went ahead to Enzo Ferrari to complain about the same and the
latter refused to meet Ferruccio. He thereafter discovered that the clutch attached to the Ferrari
was similar to that of Lamborghini tractors.

Angered by this, Lamborghini concluded that there was nothing a Ferrari could do that a
Lamborghini couldn't do, and began producing prototypes for his own car, developing it around
a powerful new V12 engine, engineered by one of the ex-Ferrari engineers at Enzo. This is how
one of the most luxurious brands were born out of a single entrepreneurial idea of Lamborghini,
who still holds the image of a legend in the market for cars.
 4. Which are family firms? Still run by the family?
As already stated, Lamborghini was born to parents who were peasants engaged in the
occupation of farming. That was the starting point of his career as he started building tractors
to help his fellow men from the surplus parts of machines. Lamborghini was married twice
with his former wife dying while giving birth to his son, Antonio Lamborghini. His second
marriage did not last either. It was his son from the third marriage who started a clothing brand
under the brand-name of Lamborghini in certain parts of Japan. During the latter part of his
life, his large estate was used for the extensive production of wine. Each year rendered a total
production of 800,000 bottles of wine. This estate was also home to a museum which displayed
few of Ferruccio’s favourite Lamborghini models and visitors could see these by seeking
appointments. Today, Ferruccio Lamborghini, the vast collection of the major manufacturing
achievements of Ferruccio Lamborghini including a large number of tractors and some of the
most stunning cars ever made in Sant'Agata are kept as exhibit at Funo di Argelato. Today the
company is owned by Volkswagen Group through its subsidiary Audi.

5. Which are now owned by large MNCs? Did they have their IPOs?

During the first ten years, Lamborghini expanded rapidly but sales plummeted as the aftermath
of the worldwide financial collapse and oil crisis of 1973. Ferruccio Lamborghini sold the
company's shares to Georges-Henri Rossetti and René Leimer and retired in 1974. The
company went bankrupt in 1978 and was put in the Jean-Claude and Patrick Mimran brothers
' reception in 1980. By 1984, the Mimrans acquired the company from receivership and heavily
invested in broadening the business. Lamborghini's model line was broadened from the
Countach under the management of the Mimrans to include the Jalpa sports car and the high
efficiency off-road vehicle LM002.

Mycom Setdco and V'Power sold Lamborghini to the Volkswagen Group in 1998, where it
was put under the command of Audi division of the group. The Volkswagon Group has started
to consider options foe an IPO with regard to Lamborghini but no conclusion has been rendered
so far.

What are their brands?

Automobili Lamborghini, or commonly called as Lamborghini, is Ferruccio's brand name for
the luxury sports car. The name Lamborghini had come from the company founder's last name.
Lamborghini has successfully fulfilled the parameters to become a well-known brand as a mark
name in the market of luxury cars.
 VANDANA LUTHRA

1. Who is this individual?

Vandana Luthra is an Indian Entrepreneur who laid the foundation stone for one of the most
loved wellness and beauty Centre, VLCC. It is a wellness conglomerate that is known by the
name of VLCC Healthcare Ltd. Additionally, she was also appointed as the chairperson of
Beauty and Wellness Centre Skill Council, an initiative scheme under the Pradhan Mantri
Kaushal Vikas Yojana started by the Central Government.

2. What do you know about her? What are the entrepreneurship skills/competencies?
Vandana Luthra was born in 1959 in New Delhi. Talking about her family, her mother ran a
charitable yoga ashram and father was a mechanical engineer. When she started VLCC, it was
a male dominated market and there were hardly any females who dared to become an
entrepreneur. During the initial stages of her business, she was made subject to numerous
criticisms for engaging herself in the same and there were quite a few who tried crating obstaces
in her path to becoming a successful entrepreneur. Despite the offer made by her husband to
aid her financially during the early stages of setting up her business, she refused such help and
went ahead by taking a loan. Her dreams turned to reality when she broke even in the first
month of setting up her business considering the fact that the approach was unique and has a
clinical ethos attached to it. As a philanthropist now she also helps the underprivileged class.
 3. What companies did these start? When?
Though she was born in a high middle class family, her approach to looking at the world was
through simplicity. This gave her the idea to develop something that is not glamorous but which
concentrates on the health and wellness aspect in the day to day busy lifestyle of the Indian
consumers. She developed this idea from her mother who was by profession an Ayurvedic
Doctor. She thought of adding an aspect of wellness to the concept of wellness and thereby
giving birth to a holistic approach of wellness and beauty. This unique approach adopted by
her gave way to one of the most known brands not only in India but in 11 other countries all
over the world. Born as a beauty and slimming services outlet at Safdarjung in New Delhi in
1989, VLCC turned out to be a successful and unique entrepreneurial venture.

The company filed draft application for IPO to SEBI back in 2015 to raise 400 crore for
expansion in the domestic and International Market.

4. What is her brand?

Today, VLCC stand as one of the recognised brand not only in the domestic market but also in
the International market as one that has a wide array of beauty and wellness products and
services. The brand enjoys a high level of consumer trust and is worth. The company operates
its products business through its subsidiary VLCC Personal Care Limited in India and GVig in
Singapore, which it acquired in September 2013. VLCC is the largest company in the beauty
and wellness services industry in India.

QUESTION 2:

How have the views changed over 30 years? Are these conceptualizations still valid in today’s
business context? Justify your response with real business examples.

The analysis of the notion of Entrepreneurship was taken up one of the very first time by
Schumpeter in 1934. Often entrepreneurs are put on similar lines with small business owners
and managers. What the classical view discussed in the paper states and analyses is that
entrepreneurs have a concept of innovation attached to them. This means that an
entrepreneurial venture would be one that gets a new and innovative product into the market
that is produces by a means of production that is distinguished from the others. There exists an
implicit assumption about the difference between an entrepreneur and small scale business and
managers. Since the beginning of time, people have had the need to meet their own needs.
Originally, people took care of all their own needs and/or family needs by getting their own
food, building their own shelter, etc. Eventually, people realized that it worked better to earn a
living through some form of work and to use earnings to purchase other goods and services
that they might need.

China and India have been the two fastest growing economies in the recent trend. As of the
early 1970s, about three-fourths of India's total agricultural employment has been decreasing
steadily over the next several decades, reaching 47% in 2012. Meanwhile, both the secondary
and tertiary sectors expanded relative in scale, with the service sector reaching 28 per cent and
the secondary sector reaching 25 per cent by 2012.

Classic VS. Modern

In the "old days," starting a business was like climbing the Everest–yes, it could be done, but
only by a few brave souls. And while some risk-takers reached the summit, some were
inevitably swept under the weight and speed of the avalanche. Today, entrepreneurs are as
ubiquitous as the soya latte. If the entrepreneurs are really born and not made, there seems to
be one born every minute now. For instance JP Morgan was 50 years old when he actually
achieved success in the banking business whereas the present day entrepreneur Mark
Zuckerberg, through Facebook achieved super successful reviews and customer base at a mere
age of 19. Today his business has reached such heights that it has acquired social media giants
like WhatsApp and Instagram under its umbrella brand. The X factor in achieving success in
any entrepreneurial venture does not only mean an incorporation of innovation into the idea,
but it must an innovation that the public demands. This demand of the customer base has to be
researched and analysed before going forward with the venture. This is the paramount factor
that will ascertain the success rate of the Entrepreneur.

Moreover, compared to the last 30 years, the playing field for the Entrepreneurs has become
more diverse with an array of opportunities available to be explored. Unlike the classic male-
dominated approach to entrepreneurship, major portion of the present risk takers includes
women from all around the world. Falguni Nayyar, the founder of Nyakaa has become a
successful entrepreneur and her venture has turned out to be a successful e commerce cosmetic
and accessories 750$ million worth brand. She could capitalize her dream to this level because
of the diversity opened up in the playing field for entrepreneurs.

Technology developments have also aided the entry of number of Entrepreneurs that have
become Multi National e-commerce giants in the Global market. The development of
technology has eliminated the need for huge capital investments. This development has taken
place only in the recent years and was not a viable option 30 years ago. Jeff Bezos started
Amazon as an online book store in a garage which today turns out to be a barnd with a net
worth of $50.3 Billion.