Enterprise Strategy Essay

This type of business structure that is E-business is more than common in the poseed countries than in leash class countries to sell products guests in the comfort of their homes is widespread in these countries, so Forejustin Passman the founder and general manager plans to make widespread this type of business eve in a developing country, Botswana. 1. 0 THE entrepreneur 1. 1 The motivation for starting the business Pull factors are exploiting opportunity and a financial bonus whilst the push factor that led him to open the business was threat of unemployment.The pull factors He was pulled into this business because he wanted to exploit an opportunity to sell gadgets such as tablets i. e. Apples Ipads, Amazons Kindle and Barnes &Nobles the nook. Consequently he decided to open class small, a predominantly virtual(prenominal) order, having little personal presence and high up internet presence. After a market research he pass waterd that most gadget stores in Botswana damp internet trading and he decided to exploit this opportunity.Citing most gadget stores are set up according to a dodge and are measuredly designed to make customer experience as pleasant as possible scarcely their websites normally do non defecate a uniform dodging applied to them, as the sites are normally a glorified business card that does not engage visitors and in some cases as yet impairment the business image. Mr Passman was also pulled to gain financial incentive he paid meticulous attention to primary research in order to weigh the bene adjoins, the woo and opportunities of his approach. The push factors The threat of unemployment is the only push factor that influenced Forejustin to start his business.At age 18 he performed poorly in his A-level results which caused him to fail to pursue a business degree at university, other(a) than compromising and pursuing other degree programmes that he lacked interest in he decided to re-sit some examinations. Whilst i n wait for examination results he did not want to be considered to be part of the unemployed so he started his company collection Little. 1. 2 Forejustin Passmans character traits Proactive- he is one of the few battalion who do not believe in luck, he seeks after opportunities other than wait for them to pre displace themselves to him.He is also quick and decisive, when faced with the dilemma of whether to go into just conventional retailing he decided and to have the virtual retailing, where he has limited carnal presence and a fully-fledged internet presence. His logic behind such a decision existence that the internet is a necessary portal for success in the 21st century business and beyond. He is regarded by some a restless while he considers himself easily bored because as he says he is easily diverted to the most recent market opportunity.He is especially known as a man who acts and then learns from the placecomes of his action, and thus far his closely-being approach has take a craped positively to advance the company. Visionary- Mr Passman has and had a clear vision for Group Little for it to become a household name in virtual companies of Africa and to be an expert in Africas virtual market space. He wants Group Little to be bench marked by any international company exploring to invest in the virtual market place of Africa. Now this visionary flair has positioned him to be always at the right place at the right time and being able snatch opportunities inside his vision. 1. MR Passmans personality type Mr Forejustin Passman is certainly spontaneous. Spontaneous because most of the things he does, he does instinctively. This matches positively with his proactive character trait mentioned previously in section 1. 2. He is a fanciful, lively and open-minded person. His humorous nature disposes a contagious zest for life. Forejustins enthusiasm and sparkling energy inspires the team to work harder, his strengths and so are imaginative problem solutions, discovering new ways and opportunities, the conceptualization of new ideas on one hand, but not so much his concrete implementation on the other.To compensate for this weakness he has rung of capable colleagues that takes over his concepts and runs with them. Spontaneous is the best classification of Mr Passman, other than classifying him as an introvert or extrovert which is a widely used approach of personality type definition, which in some cases is limiting to define comic individuals as Mr Forejustin Passman. 1. 4 Decision making and leadership style Decision making style Forejustin Passmans decision making style is conceptual.He has high tolerance for ambiguity in that even when he was not sure how Batswana leave behind respond to an e-business he still went on decided to do what he planned. He has a broad outlook in business, with the resident of truth being not enough Batswana are connected to internet currently, he deemed it fit to go ahead because most indus tries around the world are adopting e-business and even though Botswana is still lagging behind the time is eminent for her as well to join in. His conceptual decision making style is also evident in that he has found a creative way to solve the topical anaesthetic problem of segregated demand and supply.Where people in difficult to relegate areas have a high quantity demand of some products from businesses yet they cannot reach those businesses to be supplied with what they demand, so he decided the customers will shop in the comfort of their own far onward home and he will award the products to them. 1. 5 Leadership style Laissez-faire style, he is a leader who has consciously made a decision to pass focus of office to the outsourced employees. He considered since the men is already talented and qualified to do the job they must be able to positively exercise judgement to respond to issues.Mr Passman simply sets out the targets and deadlines afterwards he charges the taskfor ce to do the work that is at hand, he is not very interested in how they do the job he just wants the work to be done in due time. Some have criticised his type of leadership saying he is risking the success of his business by delegating power the employees but according to him this type of environment breeds creativity, and that is what he wants from his team, creative ways to solve problems, which is a direct match to his decision making style he wants them to think like him. 1. 6 Mr Forejustin Passmans role within the businessForejustin oversees the review of Group Littles corporate strategy, looks for market opportunities, acquires strategic assets and protects Group Littles existing competencies. As this organisation is relatively small, Forejustin has adopted this multidisciplinary role. His acquisition of strategic assets is done in order to solidify their position in the market, he cites sometimes organic growth is too slow for the companys vision therefore acquisition of so me assets provides an impetus to desired growth. The staff The majority of his staff is outsourced, the employees are highly knowledgeable about internet business.Being a cheerful entrepreneur he advocates for a cheerful workforce because he believes if employees are happy that drives up productivity which in turn brings healthier profit margins. 1. 7 Entrepreneurial profiting Forejustins decision to effectively network sprung up in the beginning stages of his business, he wanted a trademark for Group Little and he just happened to remember months earlier he sent his broken computer to some young technicians one of them named Kabelo had recently graduated from a creative arts university of Limkokwing where he studied graphic designing.He had salvage his contacts in case he needed computer help but his contact wound up birthing more than just computer solutions but also a trademark for his business. This was a highlight to Forejustin that networking especially in glob networking is a tool for success, his response * He strikes conversations with strangers, to get any bit of instruction he can, exchanges contacts with such an individual and then regularly contact that individual until they establish a network that can provide him relevant business information, advice and championship supporters. Chats with movers and shakers of different industries in order to get some referrals and leads. Mr Passmans formal networks In this the entrepreneur is lacking. He has not signed up to any formal network which fashion his chances for collaborative opportunities with others are diminished. It is highly unlikely for him to form new business relationships and lastly it is slow to solve problems because there is no entrance to a significant number of possible solution providers as emphasised by Kay (2010).His professed inhibitors to formal networking are high membership fees of some formal arrangements. He also attributed inflexible structured timetable for some of th ese formal networks as a major impediment for him join as he prefers groups that are open where he can come on casual drop in basis. But considerations are still being made to join the Diamond Trading order (DTC) network an outlet that informs and organizes exhibitions for small enterprises. 1. 8 InnovationThere a certain drivers of innovation that prompted Forejustin Passman to pursue e-business and figure a, is quite very useful in illustrating that. Source Sheth and Ram (1987) Figure a Because of technological advances, after the internet boom he realised he needed to adopt an approach in business which matches the changes in technology. The change in technology alters the business environment. This then means that threshold competencies and basic resources are redefined, he implication to Forejustins company is, whatever used to be basic necessities of successful trading is now redefined to fit the current robust and continually changing business environment. Group Littles busi ness environment is no longer just about having the right gadgets, it is also about close interaction with customers and widespread, effective marketing therefore Mr Passman had to approach service delivery differently. Competition for selling gadgets has intensified, with Incredible Connections, Hi-Fi, Game and other gadgets stores exerting pressure, Group Little had to distinguish itself by going online.Understanding that service delivery is directly related to the customers psyche he found it fit to offer technological products in a technological program such as the internet which sends a message to customers of technological proficiency. He also had to innovate since customer needs are frequently changing accordingly he had to effectively manner of speaking them. The weakness of his innovative approach Even though innovation is commendable and obtaining ideas from the international front is encouraged it is evident Forejustin Passman has failed to address the contextualizatio n of this worldwide trend.His payment outlets for instance should have been modified to fit the traditional payment outlets other than just adopting the internationally proclaimed payment system PayPal. 2. 0 The enterprise 2. 1 Business strategy According to Meyer (2010) strategy is the direction and scope of an organisation over the long-term. General enterprise strategy Emergent strategy is Group Littles adopted strategy. Having considered the high turbulence in the industry he trades in Mr Passman decided to use this approach to guide his business. This strategy has been adopted since this industry is uncertainty and innovation based.It allows frequent feedback on the business environment which in turn permits reallocation of resources to address any information that is authorized about any changes in the business external environment. Operations strategy Figure b Sourceibbusinessandmanagement. com(2012) Using Michael Porters generic cast figure b above, Forejustin has opted di fferentiation operational strategy. In this strategy unique attributes that are valued by customers and which are perceived to be better than the gadgets of the rival are intensively adopted by Group Little.This company has the following internal strengths to make this differentiation strategy successful * Highly skilled and creative development team. * Strong sales team with the ability to successfully communicate the perceived strengths of the gadgets The risks linked with this strategy include imitation by competitors and changes in customer tastes. In addition, a range of firms pursuing focus strategies whitethorn be able to achieve even greater differentiation in their market segments. 2. 2 E-businessAs Group Little is a typical example of an e-business it is quite instructive to use the SWOT model to analyse the strengths, weaknesses, opportunity and threats this organisation it has Strengths world-wide reach to marketing. Since the web is an international platform Group Lit tles marketing is not just limited to topical anaesthetic media and advertising opportunities it spreads out to other regions. There is improved customer interaction. The customer and the enterprise meet in the comfort zone of the customer, therefore the customer can openly offer ideas, orders and even complaints all this will better Group Littles service delivery.Weaknesses Security customers are always concerned with the integrity of their payments, most shy away from revealing confidential bank information in the web, which costs Group Little significantly. The other weakness is the customer has no idea of the quality and physical condition of the gadgets it is very common for discrepancies to exist between what sites advertise and the actual product. Opportunities New technologies surfacing could open up internet accessibility in Botswana which will be advantageous to Forejustins company since the critics argument pivots around this matter.Group Little also has prospects on cut ting down local competition. As local competition has not adequately used the online trading space which can give Group Little an online competitive advantage if Forejustin Passman chooses to invest significantly to develop this area. Threats Fraud given that there are some individuals that are out to deceive for financial gain are always Mr Passmans concern, they may excogitate Group Littles website and deceive the customers. Changes in law and regulation are always a threat.Regulatory authorities to protect customers from fraud they may place laws and regulations that will stifle Group Littles competitiveness. 2. 3 Organisational culture This has been defined as, a system of shared actions, values and beliefs that develop within an organisation and guides the behaviour. This is as cited by Uhl-Bien et al. (2010). Forejustin Passman has directed Group Little culture, one of the shared values is the no Sunday policy. In this Forejustin has reflected his Christian beliefs and his p hilosophy of people before profit into the corporations culture.His belief in God prompts him to keep the Sabbath which to him is Sunday and his people before profits philosophy leads him to protect their benefit by giving them rest on Sunday. Any order placed on Sunday is attended on Monday by rejuvenated and more productive employees. This has its limpid disadvantages such as foregone sales but Mr Passman believes his policy is beneficial to all parties involved. When work is on between Monday to Saturday the team is relaxed and open, this as Forejustin says allows for conception of creative ideas.Any facet that stifles creativity is minimized be it the tangible such as tables or chairs or the intangible aspect like a cordial attitude that stigmatizes mistakes. This culture solves two important issues external adaptation, which deals with reaching goals how to reach those goals and if members have developed this freedom to make mistakes they can effectively guide their casual a ctivities. It also solves the issue of internal integration, members can easily merge and share ideas when mistakes are not stigmatized and this leads to greater productivity. . 4 Critical success factors of his business branding Forejustins Group Little has to create a brand that appeals to the African technologically adept. Now as asserted by Perry (2009) a brand is more than just a corporate symbol it is an intangible asset that provokes emotional responses from individuals which presents a sustainable competitive advantage. This entrepreneur must position his companys brand to be able to leverage from being one of Botswanas few companies that are committed to successful internet trading.Little is known of Group Little but this is an incentive not a deterrent because the brand can be driven in any direction that Forejustin sees proper to feed his vision. Even though his company was registered with the Registrar of Companies and Intellectual Property in 2009, not long ago every product and or service he introduces must align to the strategy of the company he has to monitor Group Littles identity, as the perception portrayed to customers over these few age is the one that affords the company to leverage on the brand premium.Realising that the companys brand was its critical success factor efforts to protect his brand symbol from onset were undertook he decided to copyright the brand symbol. Distribution Comprehending their need for effective systems, Group Little has rationalized their distribution systems to call forth performance of their products. As an attempt to enhance the logistics execution and capabilities Mr Passman decided to form a synergy with Botswana Couriers.This he decided to do in order to quicken delivery of the gadgets sold, in contrast to send the orders via Botswana Post with their renowned in competence he decided to solidify his distribution by having an exclusive agreement with Couriers. As Meyer (2010) asserts exclusive distribu tor agreements will pull in a major impediment to the distributors if the distributor wants to switch from the commitment. In this synergy Group Little is offered discounts because of the volume of gadgets it trades around the country and basic efficiency in the distribution of the products is greatly enhanced.Technology It seems obvious yet still noteworthy that Group Little has technology as their trading platform has to remain on vigilant and aware of new technology developments. Most gadgets they sell use fluid applications, applications are pieces of software that are designed to fulfil a specific purpose, for Group Little that purpose simply is to make easy access to its websites content and increase sales, therefore Group Little is in the military operation of having their own application.The entrepreneur has looked at engaging a company named Bright labs which operates in Tlokweng for the development of Group Littles very own mobile application this will enable those who have bought these gadgets to also download the application and then browse for more products from Mr Forejustin Passmans Group Little. 2. 5 Conclusion Forejustin Passmans Group Littles performance has been average, but if he can put measures in place to direct its strategy the company will realise its potential to become a benchmark e-business in Botswana and even in Africa.He simply needs to re-assess who he is and what Group Little is, a demonstrate of focus (the target market to approach, how he is going to approach that market). In addition he is required to solidify his networks as this is one business competence he has ignored and it will ultimately cost him and his business from growing from being a small medium enterprise to being the envisioned benchmark multinational. Contextualisation of Group Littles business model also can provide an impetus its success as well, Mr Passman shall consider adopting traditional transaction means in order not to inhibit his business from reaching every possible customer.Bibliography Books 1. Meyer, R, Wit, B, (2010), Strategy-process, content, context an international perspective, 4ed, Hampshire Cengage learning EMEA 2. Perry, B, (2009), Enterprise operations, Oxford Cima publishing 3. Uhl-Bien. M, Schermerhorn J. R. , Hunt . J G, Osborn R. N, (2010), Organisational behaviour, Hoboken John Wiley & Sons 4. Kay. F, (2010), Successful networks, London Kogan Page 5. Yves, L, Goz, G. H, (1998), Alliance Advantage-The art of creating value through partners, Boston Harvard business School Press. 6. Sugars. B, (2012), Super Size your sales, the entrepreneur, August, p. 2 7. Bessant J, Tidd J,(2011), innovation and entrepreneurship, 2ed, Sussex John Wiley and sons 8. Moon. R, Gee. S, (2012), Creating business opportunity, Hampshire Palgrave Macmillan 9. Mullins L. J, (2010), management & organisational behaviour, 9ed, Essex Prentice Hall Websites 10. Multiply (2012) Spontaneous idealist online Available from http//mira u. multiply. com/journal/item/116/My-Personality-Type-Spontaneous , accessed 14 declination 2012 Appendix Personal reflection Studying real entrepreneurs and real companies always equips I as the student beyond lecture content.The study of this enterprise and Mr Forejustin Passman was a delight because I got to know interesting real aspects about business, I have learnt when in real business some academic theories will have to be set aside and suspended to deal with the challenges of real business. The more I researched I understood what differentiates successful entrepreneurs and unsuccessful entrepreneurs and that content I learnt were not part of the assignment requisite but I did learn This module lectures are also noteworthy, I figured this was a reiteration of Enterprise anagement I did in my certify year, so lectures consisted of emphasis of year two material. Even though the material is more or less the same as of second year the assessment was interestingly structured, it was strategic rather than operational that seems like an obvious comment but this has really marked the difference in our approach. We were no longer just reporting facts, concepts and academic theories we had to apply and use our groomed understanding to critically analyse the business case.