BUS-227, New Business Development (Monday)

INDIVIDUAL MID-SEM WRITE-UP

Submitted by -Yuvraj Singh Grewal , 300186803

Yuvraj.grewal@student.ufv.ca

Submitted to- Prof Shyam Vyas

Date Submitted: 21-02-2022

Date Due: 21-02-2022

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 TABLE OF CONTENTS

Contents
BUS-227, New Business Development (Monday)..................................................................................i
TABLE OF CONTENTS.............................................................................................................................ii
ACKNOWLEDGEMENTS........................................................................................................................iii
CERTIFICATE OF ORIGINALITY..............................................................................................................iv
QUESTIONS AND ANSWERS...................................................................................................................5
CITATION ……………………………………………………………………………………………………………………………………… 18

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 ACKNOWLEDGEMENTS

I would like to express my gratitude to Professor Dr. Shyam Vyas for

giving us the opportunity to work on this Write-up. Your lectures tell us
about new business development in a realistic manner. You've also
recommended us to consider it from a variety of different perspectives,
which has assisted us develop a better understanding of the course

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Certificate of Originality

•I have used my own words.

•I have not copied.

•I have not plagiarised.

•I have cited all sources from where quoted or adapted.

Questions/Answers

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Q1.

Write Short notes on the following …..

1.0 What is happening as regards “NBD”, “start-ups” and the “general

environment of entrepreneurship” in India? Has Covid impacted the pace of
new business development in economy? Any lessons for emergent class of
entrepreneurs and business creators?

Ans. New company growth is fast multiplying, and these advances constitute the
backbone of the economy since they benefit society and have an influence on
everyone, whether directly or indirectly. According to an economic poll performed
by the Economic Times in 2022, the number of Indian start-ups has surged by 20
times in the last five years. After the United States and China, India has become
the world's third largest start-up ecosystem. The following are some of the
outcomes of India's new business development.

 Small Business-MSMEs generate around 29 percent of GDP through

national and international commerce. Small enterprises in India provide
40% of the country's overall industrial output. It accounts for about 45
percent of the country's overall exports.
 Women entrepreneurs: Women's entrepreneurship has exploded in the last
decade. Women-owned enterprises have climbed from 14 percent to 20
percent in India, according to official sources. Women entrepreneurs are
being encouraged by the government, and this trend is expected to continue
in the future years. According to a survey, women-owned businesses in
India are expected to increase by 90 percent in the next five years.
 Job creation: new business development makes a big contribution to job
creation. Up to 48,000 new enterprises reported 5,49,842 positions, with
each start-up employing an average of 11 people. Despite the emergence of
COVID-19 in 2020-21, new enterprises created 1.7 lakh employment. In
addition, India's digital innovation industries, food industry, tourist industry,
education & training, and retail industry are among the top sectors for job
growth.

The COVID-19 epidemic touched a wide range of new firms, including micro,
small, and medium-sized businesses. Only 22% of Indian MSMEs and start-ups
had over 3 months runaway in 2021, after the second wave of COVID-19
epidemic. 41% said they were out of money or had less than a month's worth of
money. New firms faced a great deal of uncertainty, effort, and difficulty.

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Nonetheless, a small number of Indian entrepreneurs are not only contributing to
the economy, but also prospering and expanding at the same time.

The traits listed below are essential for aspiring entrepreneurs.

• Ethical  

• Effective communicator

• Good listener  

• Critical out-of-the-box thinking

1.1. Advantages & disadvantages of owning/starting a small business enterprise.

Elaborate citing some success stories & interactions with those that
succeeded.

Ans. Small businesses are crucial for every country's economic growth, but
they are especially important in developing countries since they manage
economic activity and provide jobs. The following are some of the benefits
and drawbacks of owning/starting a small business:

Advantages

 Advantages
 Control and independence
 Flexibility
 Financial incentives for innovation
 Development of skills and enjoyment

Disadvantages

 There are certain risks involved.

 Many skills are necessary.
 Financial benefits are limited.
 There's a lot of tension here.
 The clock is ticking.

Mahesh Gupta, the chairman of KENT RO Systems, was a mechanical

engineer who started his company in a small room in his house in 1985 with
only 20,000 saved from his employment at IOCL. His first innovation was
in the field of oil conservation instruments, for which he acquired a half-
dozen patents and gained renown. In 1998, he decided to launch a new firm,

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 KENT RO SYSTEM, after his kid was diagnosed with jaundice in a posh
suburb in South Delhi. The experiment turned out to be a big success. With
a one-lakh investment and a four-person crew, he started from the ground
up. With a sales of 580 crore and 2,500 employees, Kent presently has a
40% market share in RO mineral. Every business begins modest, but it
takes a lot of hard work and perseverance to grow to new heights.

There are several success stories in which a tiny firm grew to become one
of India's largest and most successful enterprises. Dhirubhai Ambani has
long wished to start a multinational corporation. At the age of 16, Dhirubhai
relocated to Aden, Yemen, after finishing his tenth grade. He worked there
as a gas station attendant as well as an oil company bookkeeper. He
returned to India in 1958 with a sum of money of Ry 50,000 and started a
textile business. He put in a lot of effort, and today everyone in India is
aware of his contribution to Reliance's success. His life storey is similar to
the typical rags to riches storey. He is renowned with rewriting the history
of Indian business and constructing a genuinely global company.

1.2. Possible ways to evaluate any business opportunity – what would you do –
as you evaluate a business idea/opportunity?

Ans. Finance's Components

Analyse your own resources after learning about the funds required to buy
an existing company or franchise, as well as the initial start-up costs. A
financial appraisal considers the amount of personal money you'll need to
put into the first investment. Banks frequently need entrepreneurs to provide
a portion of the investment to exhibit good trust and willingness to take a
risk with the lender. Consider the seller's, investors', and lenders' financial
alternatives when calculating your chances of success.

Market Research

Conduct extensive market research to determine your company's

profitability so you know precisely what you're getting into. In addition to
acquiring information on trends and current client purchase behaviours, you
must know who your customers are, where they are located, and what kind
of rivals exist in your area. Consider market research to be the first step in
opportunity analysis since it will help you figure out how you'll sell your
products or services to a certain market.

Self-Examination

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 The majority of small businesses fail owing to poor management and the
owner's inability to manage resources. Before you start researching the
viability of your concept and the market you want to enter, evaluate your
own talents, interests, and goals. Consider your desire to attempt, as well as
the amount of time and work necessary to make the firm successful.
Examine your financial, human resource, and marketing skills to ensure you
have the necessary expertise to help your new business succeed.

Assessment of the Risk

A risk assessment is part of a thorough examination of a company concept.

An honest evaluation of the possible risks involved with your new business
can help you anticipate problems and decide if the risks are worth the effort.
Factors that might have a negative impact on your business, such as the
overall state of the economy, weather events, and your rivals'
competitiveness, are all details to consider throughout the risk assessment
process. Internal aspects to consider include your own health, the amount of
money you have on hand, and the number and type of employees you'll need
to run the business properly.

Support

When considering a job prospect, both professional and personal elements

must be taken into account. It's possible that outside hobbies and duties will
have to be placed on hold for the time being. The attitudes and cultural
prejudices of your society may have an impact on your ability to develop
and operate your business. Examine your position on each of these fronts to
ensure you have the resources necessary to succeed.

1.3. Advantages & disadvantages of buying an existing business.

Ans. Buying a business is less hazardous than starting one from scratch. The
following are some of the benefits of expanding an existing business:

• Saves time, money, and effort: the onerous job of creating a business has already
been done, saving time, money, and effort.

• Reduced competition: There is already a market for its product or service, which
helps to reduce competition.

• Capitalization of business strength: Purchasing a well-established firm generates

immediate cash flow and aids in the capitalization of business strength in order to
address issues and improve society's quality of life.

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• Possible prior owner assistance: past owners may aid in gaining existing
relationships, goodwill, customers, employees, suppliers, plant, equipment, and
stock.

• Easier planning: an existing firm will have a market presence, customer trust,
financial history, and other factors that will offer a new business owner a sense of
market expectations and make planning easier.

Disadvantages Not every company on the market is a good investment. Many

company owners sell enterprises that are unprofitable or underperforming.
Investing in these types of businesses is extremely risky. The following are some
of the disadvantages of purchasing an existing business:

• Physical facilities: Physical facilities might be obsolete, which can be difficult for
a new business owner to deal with.

• Employees: employees in an existing firm may be non-performers, which might

obstruct the organization's operation.

• Inventory: a current firm may have too much inventory, limiting its flexibility
and capacity to respond to changing client demands. Furthermore, it consumes
additional floor space and limits the introduction of new items.

• Accounts receivable: an existing firm may have a huge amount of accounts

receivable, which may be highly costly.

1.4. Franchising – history, role, issues (advantages/disadvantages) and steps-to-

take to become a franchisor

Ans. Franchising Agreement is a business model in which the franchisor gives an

existing business, complete with name and logo, for the franchisee to operate
independently. A product franchise is a contract that allows manufacturers to sell
their products while also enabling retailers to utilise their names and trademarks. A
manufacturing franchise is a licencing arrangement that allows a manufacturer to
create and sell items under the name and trademark of the franchisor.

A company's authority to sell or distribute its goods or services in a certain region

is known as a franchise.

The franchisor benefits from regular royalty payments, lower financial risk
expansion, and a greater worldwide footprint.

Franchisees benefit from fewer risk, lower launch costs, existing brand recognition,
and parent company marketing assistance.
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Franchisees can pick a franchise depending on their location, interests, resources,
and requirements, making it a flexible way to get into a franchise arrangement.

- Royalties payments

The following are some of the benefits of being a franchisee: – A higher chance of
success due to a tried-and-true business model — Support, training, and experience
from the franchisor

- Brand awareness and national marketing

Q2

Name & discuss the life, background, values & strengths, weaknesses and
accomplishments of any ONE new business developer/ creator whom you
personally admire and look-up to. List qualities / values and ethics of this
individual as compared to those of successful business icons like Sam Walton,
Tom Monaghan, or Dhirubhai Ambani.

Ans. In terms of his work ethic and sharp-minded agility in reaction to the dynamic
business environment, Mark Zuckerberg has always been a role model for me.
In 2003, Zuckerberg was a brilliant Harvard student with a keen interest in
computing, and he managed to develop a website called Face Mash with the help
of a few of his classmates, which was supposed to allow Harvard students to
connect with one another by posting their recent activities and pictures. After
Zuckerberg saw that the website's potential was enormous and that it could be
scaled up to a worldwide level, the concept was refined further, and Facebook as
we know it today was born.
The most remarkable characteristic about Zuckerberg, in my opinion, is that any
young aspiring entrepreneur can transform an idea into a revolutionary business
model if they look in the proper places and talk to the right people.
Another thing that appeals to me about him is that he is always looking for ways to
improve the content that Facebook provides, which means that the introduction of
Metaverse is quite possibly his next step towards a revolution in which people can
virtually meet and interact with each other in a virtual world almost as if they were
meeting in person while sitting halfway around the world.
When it comes to the negative traits of Mark Zuckerberg, he has a reputation for
being unethical, since Facebook has been accused of infringing on its users'
privacy rights several times, with numerous trials attempting to prevent the
corporation from doing so. We all know that data and information are the oil of the
twenty-first century, and Facebook has access to some of its users' most sensitive
data, making it an ethical obligation to protect it. However, in light of the

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Cambridge Analytica scandal, it's clear that data and information are the oil of the
twenty-first century. As a result of the Cambridge Analytica incident, many users
have realised that their data has been compromised. While Zuckerberg has the
ability to be a businessman, he and his company lack the ability to meet and fulfil
ethical obligations to users, and as a result, he is not the most ideal entrepreneur
amongst the legendary names such as Dhirubaj Ambani, Tom Monaghan, and Sam
Walton who carried out their work while being bound by their ethical obligations.

Q3

Recently presented Union Budget 2022 – does it give any incentives / support /
direction for small & medium enterprises, and new business developers? Elaborate.
Be specific. Do you see the government “supportive / or not supportive” of new
business development? – and why? Be specific with facts.

Ans. The Union Budget for 2022 places a strong emphasis on entrepreneurial
prospects for young people who aspire to start their own business. The budget
includes several new and important financial incentives for budding entrepreneurs,
with a strong emphasis on developing India's start-up culture. One of these aids is
the National Bank for Agriculture and Rural Development's recently established
blended capital fund to assist start-ups in the agricultural area and rural enterprises
that are important to the farm product value chain (NABARD). Furthermore,
MSMEs were given an Emergency Credit Line, which has now been extended until
March 2023, with an extra IN 50,000 crores added to the overall coverage under
the plan, bringing the total coverage to IN 5,00,000 crores.
With all of these measures in the Union Budget, it is evident that the government is
eager to assist budding entrepreneurs, and that if one were to consider entering the
business field right now, the government would give assistance.

Q4

Write a brief note on the evolution of Business Houses and development in India
between 1900 and now. How has the focus of these businesses evolved?

You may draw upon class discussions, your readings and understanding of
materials as regards established and emerging business houses in India.

List & discuss some business dynasties/ houses that have lasted decades after
establishment- even today? What is the secret of these business creators
/organizations? A personal assessment please.

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Ans. India transitioned from an inward-looking democratic socialist economy that
discouraged international trade/investment and allowed private business but
overregulated it in the 1990s to a set of market reforms that attracted foreign
investment, connected India to the global market, and allowed Indian companies to
expand internationally. A wide variety of actors, both in the official (ruled by
government policies) and informal (governed by market forces) sectors, juggled to
secure their own niches in the face of fresh waves of policy changes, globalisation
tendencies, and competition from foreign investors. As a result of India's upward
growth trajectory, the service sector was kick-started, entrepreneurship and
innovation were pushed, global business leaders were produced, and the jugaad
phenomenon, a characteristic Indian attribute that drove Indians to strive and
prosper, was institutionalised. Jugaad is a Hindi term that is frequently connected
with disruptive and imaginative practises at various levels in India's extremely
organic business. It is a way of dealing with everyday problems that Indians
confront and attempting to find answers without the help or participation of any
institution. It has enabled Indians to not just survive, but also to thrive in a very
competitive market.

For centuries, India was dominated by caste, region, and language—or religion-
based business groupings. Thanks to the colonists, traditional trading patterns were
broken, and economic control was handed to colonial masters. As a result of the
loss of ancient family companies under British rule, new banking systems,
management agencies, and chambers of commerce were established, seamlessly
connecting the Indian subcontinent to the global economic order. Both
international and indigenous corporate players were among the newcomers.
Traditional commercial communities such as Sindhis and Chettiars exist.

Many well-known names are the consequence of generational business and shared
family ownership. The Birlas, for example, were opium and jute dealers in Calcutta
(Kolkata) before expanding into the jute, cotton, sugar, chemical, paper, and
insurance sectors. Other names came from unusual business castes, such as the
Kirloskars, who were Maharashtrian brahmins.

On October 31, 1904, Kumbakonam Bank, presently known as City Union Bank
Ltd, was founded as a limited liability company. It began with a regional emphasis
and an agency model, and its first branch was founded in 1930. The name was
changed to City Union Bank in 1987.

Ramnarain Ruia, the leader of the Ruia business family at the time, bought Phoenix
Mills and two other mills in 1905 to launch his textiles firm. The firm was founded
in 1959 and listed on the Bombay Stock Exchange (BSE). In 1987, it ventured into
real estate, building Mumbai's well-known retail area, High Street Phoenix. In
2001, India's first hypermarket, Big Bazaar, opened in the mall.

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Q5

Is new business development required and important only for small businesses? Or
is it that there are other parties and entities that benefit from NBD activity? Is it
that the idea of new business development also central to the idea of any and all
continuing businesses – small, medium and large. Give examples and fact-based
argument to support your view.

Ans. Business development is the thread that runs through all of a company's
activities or departments, supporting sales, revenues, product offerings, talent,
customer service, and brand recognition. In a variety of ways, someone in charge
of business development may assist drive change and nurture growth across
divisions. Here are four reasons why expanding your business is critical.
It's a crucial strategy for growing income and lowering expenditures. One of the
most prominent metrics for analysing growth, and one of the most typical
measurements for gauging growth, is the bottom line. Developing strategies to
increase the amount of money flowing into a company while reducing the amount
of money flowing out is an essential aspect of the business development process.
It has the ability to improve the company's image in general. A business developer
may aid in the creation of a better brand, which is crucial to a company's success.
A business developer can work together with the marketing team to produce
campaigns that consolidate the company's target demographic while also reaching
out to new consumers and markets.

Having taken advantage of the emerging areas of opportunity might be a profitable

growth strategy, and keeping up with industry trends and possibilities is a crucial
component of business development. By reviewing demographics and consumer
data, a company developer may devise ways to break into these markets and reach
new client groups.
It might open the path for fresh market expansion. Taking advantage of new areas
of opportunity might be a profitable growth strategy, and keeping up with industry
trends and possibilities is a crucial component of business development. By
reviewing demographics and consumer data, a company developer may devise
ways to break into these markets and reach new client groups.

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Q6.a)

What is your understanding of a “Business Plan”?

Why is it important that an entrepreneur should prepare a business plan? Why??

List, explain and elaborate the 10 points and any other issues that need
emphasizing during preparation of any proposal for a business plan. In a separate
paragraph state - what part(s) of the Business Plan in your view are the “most
critical” & why? Explain.

Ans. Any company's business plan is considered as a crucial instrument. It is a

written document that outlines in detail the nature, goals, and financial status of a
company, particularly one that is new, as well as how the company will achieve its
objectives. A business plan can also be developed for an established firm that
wants to expand its operations or ask for a loan or finance.

A business plan is essential for anyone just starting out and growing their own
business, whether it's a small freelancing business from home or a new enterprise
with an office and a small team of workers. It's a map, an overview, or a document
that explains who your firm is, what its goals are, and how it intends to achieve
them. So, outside defining your business, what else can a business plan help you
with? What is the size of the market of your commodity? What is the rate of
growth? What proportion of the marketplace do you think your product has a
chance of capturing?

Issues in creating a business plan-

1. Are you able to put a number on the benefits to customers? What is the
price's beginning point?
2. What stage of development is your product now in?
3. What issue are you attempting to resolve? Who are you solving it for? What
is your long-term strategy? When you grow up, what do you want to be?
4. What is the nature of the service or product you're promoting? What is the
problem's solution? What makes it unique?
5. Who are your competitors? What distinguishes you from them? What are
the entrance obstacles to this market?
6. How do you intend to operate your company?
7. What is your strategy for breaking into the market? 
8. What distribution channels do you plan on using?
9. What will be the year-end financial projections Up to 4-5 years out, which
should be both hopeful and realistic.
10.What is the total amount you aim to raise? What exactly will it be used for?
What do you believe the duration will be?

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The executive summary is the most important part of your business plan, and it
may be the only one read, so make it shine! The executive summary's goal is to
encourage the investor to read the whole business plan. He undoubtedly has a lot of
business plans in his email that he has to sort through. As a consequence, he'll
almost certainly skim through each business plan in under two minutes and select
just the most interesting ones. In a few lines, introduce the concept, the team, the
market, the potential for profitability, and the financial requirements. Keep it high-
level, and if the investor is intrigued, he'll study the remainder of the plan to
understand more.

Q6.b)

What is your Group’s “Business Idea”. Have you started work on Business Plan
preparation? Briefly state what your group has done / accomplished so far. What
has been your personal contribution to your group’s New Business Plan
preparation? State clearly your Vision, Mission, Goals and possible strategies you
may have formulated thus far. You may state what your group intends to do as you
go about the project - your group’s business plan

Ans. The product category that my group has chosen is PCP Circuit boards with a
focus on niche manufacturing and marketing.

The work on the business plan is ongoing and going well and good with all the
group members working hard to complete it. The product category, choosing the
final operation location has been located, manufacturing details have been taken
into consideration as well, information on raw material and equipment has also
been done , regular discussions with the NPS are being done to make the business
plan as better as we can. Potential threats and future market volatility has been
taken into consideration too. Market competition and innovation in the product is
also being updated regularly.

My contribution to the group is that I have been in constant contact with NPS for
guidance and criticism as well as research work for the business plan.

The mission, vision and goals that we have set are:

Mission- To be apart from the competition and making the best product

Vision- To become one of the biggest manufacturers

Goals- Capturing the market share from the competition

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Q7

Who in your opinion is a true entrepreneur? Do you believe you are cut-out to
become an entrepreneur/ new business creator? Yes or no? Give reasons to support
your response.

What qualities and qualifications would tend to indicate that a person may become
a successful entrepreneur? Are successful entrepreneurs & small businesses
important for Canadian and Indian environments? Why? Give hard facts to buttress
your response & your personal point of view.

Who benefits when the culture of entrepreneurship spreads in any society? Should
the entrepreneur have good ethics? Why?

Ans. Ratan Tata, in my opinion, is a real entrepreneur since his presence in the
Indian business climate has definitely sparked a sense of inspiration and optimism
among India's aspiring entrepreneurs. The way the Tata Sons have managed to
build on the basis put down by their forefathers while being ethical and open with
their consumers and acknowledging their faults when they occurred is truly a
model for the industry.

I genuinely think I am can be an entrepreneur because I have the desire to take
calculated but rewarding risks, as well as the ability to assess such risks while
making wise investments, which I hope will continue to instil more wisdom in me
in the future so that I can make sound financial decisions.

The capacity to listen before responding, having a proactive approach to the

business environment, and being adaptive to any existing market conditions are the
most critical qualities that a successful entrepreneur must possess. The effective
attributes of an entrepreneur are naturally reflected in the business that he or she
leads, thus being the best version of yourself personally as an entrepreneur is
critical to running a long-term successful business.

The importance of successful entrepreneurs cannot be overstated, especially in the

twenty-first century, since entrepreneurs create jobs, and it is imperative that we
continue to advance together as an economy and, eventually, as a civilization,
where ethics and humanity play a critical role. Humans are nothing more than
creatures gorging on prey without ethics and sentiments, but our capacity to feel
for others by putting ourselves in their shoes is what makes us human, and a great
entrepreneur is one who is able to address societal issues by putting others before
himself.

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The entrepreneurial culture eventually helps the whole society because as the
number of entrepreneurs increases, so does the number of businesses and hence the
number of people employed by those businesses. Because, as previously stated, in
order to flourish as a civilization, as a community, we must endure and nourish that
very thing that makes us human and cultivate it so that it finally becomes a win-
win scenario for everyone, the entrepreneur must have solid ethics.

REFERENCES

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Staff, O. (2022, February 1). Union Budget 2022–23: MSME sector gets a boost, more focus

on skilling and entrepreneurship, credit line extended. OpIndia.

https://www.opindia.com/2022/02/union-budget-2022-23-msme-sector-boost-focus-

skilling-entrepreneurship/

Mergers and Acquisitions Examples: Failures & Successes | Ansarada. (n.d.). Ansarada.

https://www.ansarada.com/mergers-acquisitions/examples

Boyce, P. (2021, April 14). Mergers and Acquisitions Definition. BoyceWire.

https://boycewire.com/mergers-and-acquisitions-definition/

McCreary, M. (2020, February 18). The 19 Oldest Franchises on the Franchise 500.

Franchise500. https://www.franchise500.com/slideshow/345716

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