Essay Test

Entrepreneurship

Name: Dao Hao Hao

Student ID: HS140098
Class: IB1404
Lecturer: Mr. Trinh Trong Hung
What is creative destruction?
Explain with an example.
The fall of existing techniques, procedures, goods, or services is referred to as "creative
destruction," and it is followed by more novel, disruptive activity.

It is founded on the idea that in order for new efforts to take advantage of available resources
and energy, outdated presumptions must be disproved. The shift from the industrial revolution
to the usage of oil and today till we enter the high-tech society of today, where renewable
energy is on the rise expand exponentially, is an example of creative destruction in history. New
models are rendered obsolete by waves of invention, which forces everyone and everything to
innovate. Additionally, corporate leaders frequently refer to unusual cost-cutting strategies like
outsourcing and downsizing as "creative destruction" in the business context. The idea is that
even while certain activities may be seen as harmful, especially for the workforce, they will
change the company.

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 How can an entrepreneur make a
more ethical decision using ethical
decision-making? Explain.
Because it acts as the adhesive holding long-lasting fruitful commercial
and personal relationships together, ethics was that ethical behavior is at
the foundation of long-term company success. Business schools need to
start focusing more on teaching ethics if the free enterprise system is to
survive. They should be aware that trust, which is based on sincerity and
honesty, is the foundation of business. A lack of honesty is immediately
apparent in a small business. If our civilization is to advance, it won't be
determined by how much wealth any one person or group of people has
amassed. That is my basic concept of ethics: treating everyone equitably
will advance our civilization. I am aware of a number of managers,
presidents, and the like whom you wouldn't want to interfere with in order
to further your own goals or financial interests. The corporate sector of
our society, in my opinion, is by far the most moral and law-abiding.
Instead of crusading with ethics, it is much more beneficial to make good
ethics an intrinsic element of business—and it is. Ethics should be
addressed, analyzed, and extensively explored. A high ethical standard is
seen by the vast majority of CEOs, investors, and business owners as the
single most crucial element in long-term success.

Therefore, in order for an entrepreneur to use ethical decision-making to

create more moral decisions, we must always follow the following steps:
Define the moral issue as a first step. Is there anything ethically
questionable about this choice, you should ask yourself? What is the
moral conundrum, and what is the effect of this choice? This stage is
crucial because without recognizing the issue, business owners cannot
know whether their choice is ethical or not.
Step 2: Come up with solutions that satisfy your ethical, legal, and
financial objectives. Create as many potential solutions as you can
once the issue has been identified. The entrepreneur will be able to
select the strategy that is best for him and ethical in his decision-
making if there are numerous options available.
Step 3: Put the best option into action and keep an eye on the situation.
Find a BATNA for yourself from those options. Use BATNA to address
every issue you first discovered. Before making a decision, review the
procedure once again to ensure that the entrepreneur chooses a moral
course of action.

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In conclusion, you must know yourself and be able to
recognize the extent and impacts of your self-interest in
order to make wise and moral actions. Entrepreneurs
face a variety of moral conundrums throughout their
most vital survival situations, much like a perilous walk
on a tightrope. However, you should make more moral
decisions so that your firm can grow.

Compare and contrast today's five

most typical types of entrepreneurial
personalities.
Risk-taker
Loner, socially Hard

Fast learner seeking
isolated worker
wealth

Loner (however
Hard
Idea person can cooperate), Fast learner Risk taker
worker
socially isolated

Small business Loner, socially Hard Medium

Risk averse
owner isolated worker learner

Contemporary
Team player, Hard
classic Fast learner Risk taker
socially connected worker
entrepreneur

Salesperson Team player, Hard

Fast learner Risk averse
entrepreneur socially connected worker

Managerial Team player, Hard

Fast learner Risk averse
entrepreneur socially connected worker

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Overall, all five of today's business personalities are driven self-starters who
concentrate on growing their companies; if only everyone else shared their
enthusiasm, determination, and perseverance. To succeed, put out a lot of
effort. Perhaps putting in a lot of effort doesn't guarantee success, but it is the
foundation and a critical step in determining whether you will be successful or
not.
The group comes next. While each entrepreneur's journey will involve the
team's input, some may have independent beginnings while others may be self-
starters. The business can only grow when there is a team, and that team is
being led by a leader. Additionally, it goes without saying that effective
communication is a crucial step on the road to success for every entrepreneur,
even though there isn't much of it.

Regarding the issue of quickly absorbing information, it can be seen that ideas
people, contemporary classic management, and a contemporary are those who
have a fast absorbing level because they have good ideas or plans available from
the very beginning. Additionally, small businesses are no less capable of doing
this, but they learn by observing entrepreneurs who can be regarded as being in
the top 3 as above. The final example is sales employees, who progressively
absorb and gather knowledge from their everyday work to learn every step,
even the tiniest one, to advance themselves and pick up talents from their
forebears. Naturally, business owners have some ambition to be wealthy since,
even after earning the desired sum, people want to continue earning more to
validate their success. Identify yourself and offer evidence that the work you
did was worthwhile.

The idea person and the contemporary classic entrepreneur accept risks and
deal with challenges in order to achieve the greatest rewards, as can be
observed from the analysis. The last three individuals desire to expand
themselves just enough to take mild risks, and it may be said that they go in a
safe way in search of rewards.

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 How can a small business owner
get into an innovative frame of
mind? Explain.
Entrepreneurship is crucial for boosting the economy, creating jobs,
and raising living standards while adjusting to contemporary social
demands. Innovative entrepreneurship can generate concepts for
expanding both new and current companies, creating goods to
benefit regional economies, and promoting change to better
consumer experiences. Understanding what innovation comprises is
helpful because it is a crucial element of successful firms. There are
three cutting-edge approaches available to small business
entrepreneurs.

The creation of a new product based on the implementation of an

existing innovation is referred to as "imitative innovation." The use of
an established business model to introduce new services, business
concepts, revenue models, etc. is known as an imitation strategy. A
corporation can introduce a similar product with a different brand
name, marketing approach, etc., saving money on R&D, new product
development, etc., by using an imitation strategy. Imitation is doing
something after someone else or using their example as a guide. As
an illustration, consider how many other smartphone manufacturers
quickly adopted similar touch screen technology and aesthetics after
the release of the Apple iPhone.

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Incremental strategies describe a succession of minor upgrades made to a business's
current goods or services. Typically, these low-cost upgrades strengthen present
offerings while helping a business stand out from the competitors. Gloria Barczak,
professor emerita of marketing and innovation at Northeastern's D'Amore-McKim
School of Business, asserts that "you're not really attempting to bring new technologies
in, nor are you really trying to look at a new market." "You're attempting to in some way
enhance the product." Take the iPhone as an example: Apple hasn't yet introduced a
whole new class of phone, and the phone's basic form hasn't changed much since it first
appeared in 2007. Instead, the tech giant often releases an iPhone that is just marginally
enhanced, adding better cameras, graphics, and other features to the current model.

A new business model and the power of technology are two components of radical
innovation. By replacing existing goods and services or creating new product categories,
it is a concept that alters the dynamic between consumers and suppliers. Radical
inventions drastically transform the consumer environment and leave the status quo far
behind, much like how cars finally supplanted horse-drawn carriages. Or one of the most
fundamental household items that is frequently used in a household is the washing
machine. In the past, people used to hand-wash their garments in rivers and streams.
We have now switched from hand-washing to using a washing machine to clean our
garments.

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 Briefly describe the sources that lead small
business owners to their business ideas.

Business idea refers to a thought that can be used to generate revenue. The main emphasis of a
business idea is a good or service. Despite the possibility of financial gain, the business idea
has little commercial value. The creation of a fresh, valuable idea is the main responsibility of a
dynamic entrepreneur.

The process of coming up with a new business or project idea requires a lot of ingenuity on the
part of the entrepreneur, and it mostly results from careful evaluation by the entrepreneur of
the following variables, such as the market opportunity and genuine need for any good or
service. And the following are some of the places small business entrepreneurs can find their
business ideas:
Pay attention to the clues and ask lots of questions. Innovation is the use of a creative
concept or opportunity that produces profitable and successful results.
Opportunity recognition is the process of looking for and seizing new ideas that present
business prospects. This requires creative thinking, which results in the discovery of
fresh, practical ideas.
The ability to notice things that have been overlooked without actually starting a formal
search for opportunities as well as the drive to look for opportunities are all examples of
entrepreneurial alertness. Entrepreneurial alertness is a special set of observational and
thinking skills that help entrepreneurs identify good opportunities.

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 Discuss the different ways to reach your customers
once you have created your Website.

There always appears to be a new technique to market your company and get new customers to
your website in the sea of never-ending changes to the digital world that we know as the
internet.

Optimization for search engines. By optimizing your pages with the keyword phrases that people
are most likely to look for, SEO works to make your website more visible in search engine's
natural results. Do you often go past the first few pages of results when you conduct a Google
search for something? Likely neither will your prospective customers. Editing already-existing
material, reducing obstacles to search engines' indexing efforts, and boosting the amount of
backlinks or inbound links are some prominent strategies for enhancing organic search results
(links your website receives from other webpages — which indicates the popularity or
importance of your website). In the beginning, SEO can take a lot of time, but it's a necessary
step if you want to increase traffic and rank well for your major keyword phrases. It may take
several months to start noticing real SEO effects if you haven't already optimized your website
for search engines.

Guest blogging and blogging. By providing free, original material on your website, you can stand
out from the crowd and attract more visitors. Writing for other well-known blogs in your niche,
however, is even more effective in driving traffic. You can attract new readers from a source that
likely receives a lot more traffic than your present blog or website by putting a link to your
website in your biography at the end of your guest post.

Topic 8

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Marketing via social media. Undoubtedly, social media continues to be highly praised. Even
now, in spite of all the algorithm adjustments to platforms like Facebook and Instagram,
company owners continue to use social media to expand their brands. In fact, this is one of
the quickest techniques available today to promote any kind of business. But conquering
social media is not a simple task. There are ways to grow multi-million dollar businesses
just through social media, and there are lots of Instagram influencers you can work with to
spread the message. Whatever marketing approach you choose, social media may help you
reach a global audience quickly with the sale of your goods and services. However, don't
anticipate social media success to happen overnight. Building a valuable profile takes time
—in fact, it takes years. If you are persistent, a large number of customers who are
interested in what you are offering will find it simple to access your platform.

Public relations. Driving traffic to your company website is crucial for establishing your
brand and increasing your influence. You can establish your reputation as a credible
authority in your field through public relations techniques. By doing this, you may improve
conversion rates and raise brand awareness. By providing a source for a journalist's stories,
for instance, the outlet frequently links back to your website, which typically receives a lot
of traffic and converts well all while enhancing your reputation. Additionally, people are
more likely to believe you when you are mentioned in a well-known press source, which is a
source they trust. Press releases can also assist in increasing traffic and stoking interest in
your company's goods or services.

Useful websites for several small businesses give the general public information and list
their listings on the Internet search engines that many people use nowadays to find
businesses, goods, and services. It is a crucial stage in the expansion of a business.

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Differentiate between value and cost benefits.
Provide four examples for each type of benefit.

Benefits are features of a good or service that the intended client would find valuable. Value
benefits and cost benefits are two common ways to explain benefits.

Cost is the sum spent on materials such as land, labor, capital, businesses, etc. to generate any
good. It is the sum of money that a business invests in the creation of a good. As an illustration,
the price of shoes manufactured by a company is determined by the expenses of the raw
materials, labor, rent, interest, taxes, duties, etc. Cost advantages include the fact that the
business's competitive edge grows when the price is cheap but the product is still of high quality,
which will be a powerful selling point to draw in clients. Additionally, it directly affects revenue
and profit. Sales and production costs are subtracted to arrive at profit. Therefore, the profit will
change if one of the other two parameters does. Profits will also be at their highest when costs
are low and revenue is high. Any company aspires to strive for this.

The usefulness of a product to the customer determines its value. It varies from customer to
client and cannot possibly be calculated in monetary terms. Example: If you spend $1,000 a
month to visit the gym, the value you add to the facility in relation to the services offered there is
regarded to be worth the expense. Value is what it is here. The advantages of having attractively
exhibited and explicit product value are as follows: Make a clear distinction between your
business and the competition. Increase both the quantity and the caliber of prospective clients.
Boost your market share in the targeted segments. Boost the business's ability to be managed
and operated. Increase profits. Make sure that the company as a whole communicates with
customers using the same messaging. The capacity of the product to satisfy client wants "may
have little or nothing to do with market prices." Successful companies are aware of the value of
identifying the underlying causes of a customer's particular purchasing decision.

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Here are some instances of how the benefit of value and cost differ:

Example 1: A plumber may charge a customer £5 for travel, £2.50 for materials, and £10 for an
hour of labor to mend a burst pipe in their home. Although the service only costs £17.50, the
customer receives significantly more value from it. The assistance could have stopped leak
damage. The plumber can opt to charge a total of £50 and base his fee on value rather than cost.

Example 2: The cost of manufacturing, rather than the price of the product, should be your top
priority if you are a watchmaker who makes millions of watches every day. In order to create
more for less money, you can aim to attain economies of scale. In the case of the consumer, the
watch should serve the function for which it was acquired, regardless of the expenses incurred
during creation. The buyer must understand the worth of purchasing a watch, whether for a
functional purpose like telling the time or aesthetically as a lovely accessory.

Example 3: Assume that a bottle of pure water costs 1,000 VND, which covers the cost of
manufacture by 500 VND, bottling by 200 VND, and shipping by 300 VND. However, the
product's worth to the thirsty consumer after a hot and dehydrating soccer match is significantly
higher than its price, which is 4,000 VND.

Simply said, value is what your customers perceive your product or service to be worth to them,
whereas cost is how much you spend producing it. While considering the rates your competitor's
charge, pricing should be in line with the value of the benefits your firm offers to clients. Learn
what advantages your consumers get from utilizing your product or service, what factors they
consider when making purchases, and what value they set on getting the advantages you offer if
you want to increase your earnings.

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 When you present your business plan to influential
people, what are they looking for? Explain.
People inside and outside the corporation will read the business strategy. The management team
and board of directors will likely be the only internal readers. We must explain this strategy to
outsiders, primarily the sponsors, so they may better comprehend how the business is conducted.
As a result, you need to be well-prepared for the possibility that you'll need to locate investors who
are ready to assume this risk in exchange for a share of your company's revenues in the future.

Recognize the needs of investors. Make sure you comprehend the questions that these prospective
investors have. Think on what facts will interest them the most and what they may already know
about your business initiative, especially information about their expected return on investment
and its time frame.

Clearly state the advantages of the good or service. Investors must be able to properly define your
product's or service's purpose and features. Investors must also recognize the value your good or
service actually provides for the consumer. Describe the advantages and the driving factors for
clients to purchase.

Display your advantage over the competition. Make it clear that you have done your homework and
understand the market as well as the competition. Know what makes your product or service
special and how it will distinguish itself from the competition in the eyes of your target audience.

Putting forth a capable management group. A major concern for your potential investors is the
success of your management team. Utilize the abilities, knowledge, and talents that you and your
team bring to this business endeavor. Demonstrate your leadership skills and zeal for your
company.

Describe the risks. Discussing hazards is important. Demonstrate to investors that you have
considered the dangers your business may face and the threats it may face in succeeding. Talk
about your strategy for handling these dangers if they materialize.

Give the cash to them. Make sure you are able to communicate the financial picture for this business
venture and that you have a solid grasp of your numbers. Create financial estimates that
demonstrate to investors the required investments and the anticipated return on those
investments. Investors will also be interested in the prospective timeliness of their return on
investment.

In a short, your presentation should clearly explain to potential investors why your proposed
Topic
business will be8successful and generate an alluring, timely return on investment with some risk.
acceptable.

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Thank You
FOR READING

Name: Dao Hao Hao

Student ID: HS140098
Class: IB1404
Lecturer: Mr. Trinh Trong Hung