ENTREPRENEURSHIP: creating and leading an entrepreneurial organization

799 Pages·2014·17.953 MB·English

by  Kumar, Arya

Entrepreneurship
C L
reating and eading
e O
an ntrepreneuriaL rganizatiOn
Arya Kumar
Acting Dean
Student Welfare Division
and
Chief Entrepreneurship Development & IPR Unit
Birla Institute of Technology & Science, Pilani
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ns
Copyright © 2012 Dorling Kindersley (India) Pvt. Ltd
Licensees of Pearson Education in South Asia
No part of this eBook may be used or reproduced in any manner whatsoever without the publisher’s prior
written consent.
This eBook may or may not include all assets that were part of the print version. The publisher reserves the
right to remove any material present in this eBook at any time.
ISBN 9788131765784
eISBN 9788131797679
Head Office: A-8(A), Sector 62, Knowledge Boulevard, 7th Floor, NOIDA 201 309, India
Registered Office: 11 Local Shopping Centre, Panchsheel Park, New Delhi 110 017, India
Dedicated to my elder brother,
the late Shri Anand Kumar (19 April 1952 to 6 March 2012),
who was a constant source of inspiration
and guidance to me
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Contents
Preface xv
Acknowledgements xvii
About the Author xviii
1.  Fundamentals of Entrepreneurship  1
Learning Objectives 1
1.1 Introduction  2
1.2 Key to Development  3
1.3 Evolving Concept of Entrepreneurship  6
1.4 What is Entrepreneurship?  9
1.5 Resource Organization and Value Creation  12
1.6 Entrepreneurial Traits  18
1.7 Difference Between Inventors and Entrepreneurs  29
1.8 Inspiration from Role Models and Social Support  30
1.9 Business Model  34
1.10 Entrepreneurship—Mindset  35
1.11 Big Companies Vs Start-ups  38
1.12 Misconceptions and Myths About Entrepreneurship  38
Key Concepts 42
Endnotes 42
References 43
Conceptual Questions 45
Critical Thinking Questions 45
Case 1.1: How I Made My First Million 46
Case 1.2: From Candle Seller to CEO 48
2.   Entrepreneurship Development 
in Emerging Markets  50
Learning Objectives 50
2.1 Types of Start-ups  51
2.2 Intrapreneurship  53
2.3 Why Does One Become an Entrepreneur?  55
2.4 Entrepreneurship as a Career Option  57
2.5 Why Youth Is Suited for Entrepreneurship  63
2.6 Female Entrepreneurship  66
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vi    Contents
2.7 Small and Medium Business Enterprises  68
2.8 International Entrepreneurship  71
2.9 Entrepreneurship Development—Role of Educational Institutions  72
2.10 Mistakes Start-ups Make  76
2.11 Managing Start-ups During Downturn  80
2.12  Entrepreneurship—Emerging Trends in  
the Global Knowledge Economy  81
Key Concepts 85
Endnotes 86
References 86
Conceptual Questions 87
Critical Thinking Questions 88
Case 2.1: Pets.com 88
3.  Entrepreneurial Leadership  91
Learning Objectives 91
3.1 Leader Vs Manager  94
3.2 Why Do Ventures Require Dynamic Leaders?  99
3.3 Principle-centred Leaders  102
3.4 Entrepreneurial Leadership  106
3.5 Components of Entrepreneurial Leadership  108
Key Concepts 113
Endnotes 113
References 114
Conceptual Questions 114
Critical Thinking Questions 115
Case 3.1: Link_A_Media Devices 115
Case 3.2: XYZ Transport 116
Case 3.3: Entrepreneurial Profiles 117
4.  Creativity and Business Ideas  121
Learning Objectives 121
4.1 Introduction  122
4.2 Creativity and Entrepreneurship  125
4.3 Characteristics of Creative People  129
4.4 Blocks to Creativity  132
4.5 Creativity at Work—A Must for Survival  134
4.6 Sources of New Ideas  137
4.7 Techniques for Generating Ideas  143
4.8 A Good Idea Is Not Enough  160
Key Concepts 161
Endnotes 162
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Contents     vii
References 164
Conceptual Questions 164
Critical Thinking Questions 165
Case 4.1: Creativity in Start-ups 166
Case 4.2: Innovation: Creating and Defending New Sources of Value 167
5.  Idea to Opportunity  173
Learning Objectives 173
5.1 Introduction  174
5.2 Opportunity—Definition  175
5.3 Opportunity Recognition  177
5.4 Opportunity Process  181
5.5 Sources of Opportunity  181
5.6 Indian Economy—Opportunities  187
5.7 Steps Involved in Assessing Business Potential of an Idea  188
5.8 Steps Involved in Tapping Opportunity  196
Key Concepts 202
Endnotes 203
References 204
Conceptual Questions 204
Critical Thinking Questions 205
Case 5.1: Reusable Diaper 205
Case 5.2: Opportunity—Earthmoving Industry 211
6.  Legal Aspects of Business  214
Learning Objectives 214
6.1 Introduction  215
6.2 Formation of a Business Entity  215
6.3 Taxation Matters for Different Forms of Ventures  222
6.4 Meaning of Holding Company  225
6.5 Deemed Public Limited Company  225
6.6 Requirements for Incorporation of a Private/Public 
Limited Company  226
6.7 Board of Directors—Roles and Responsibilities  234
6.8 Procedure for Setting Up a Business in India  235
6.9 Legal Acts Governing Businesses in India  235
6.10 Winding Up a Registered Company  241
6.11 Need for and Selection of a Lawyer  242
Key Concepts 245
Endnotes 246
References 246
Conceptual Questions 247
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viii    Contents
Critical Thinking Questions 247
Case 6.1: Google 248
7.   Entrepreneurship and Intellectual 
Property Rights  251
Learning Objectives 251
7.1 Introduction  252
7.2 University Research Leading to Entrepreneurship  254
7.3 IPRs and Their Importance  255
7.4 Importance of IP for Start-ups  257
7.5 What are IP Rights?  260
7.6 What Is a Patent?  260
7.7 International Patents  265
7.8 Trademarks  266
7.9 Copyright  269
7.10 Geographical Indicators and Biological Diversity  271
7.11 Industrial Design  273
7.12 Layout Design of Integrated Circuits  274
7.13 Plant Varieties  274
Key Concepts 276
Endnotes 277
References 278
Conceptual Questions 278
Critical Thinking Questions 279
Case 7.1: Tata Motors—Nano 279
Case 7.2: Informatica 281
Case 7.3: Ranbaxy Laboratories Ltd—A Case Study 284
8.  Business Plan  288
Learning Objectives 288
8.1 Introduction  289
8.2 Entrepreneurial Opportunities and Business Plan  290
8.3 What Is a Business Plan?  292
8.4 When and for Whom Is a Business Plan Necessary?  294
8.5 Business Plan Drivers  295
8.6 Things to Remember While Preparing a Business Plan  300
8.7 Business Failures  300
8.8 Perspectives to Be Considered in Business 
Plan Preparation  302
8.9 Who Should Prepare a Plan?  306
8.10 Basics of a Business Plan  306
8.11 What Is Most Important in a Plan?  326
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Contents     ix
8.12 Pitching a Business Plan  327
8.13 Reasons for Failure of Business Plans  331
Key Concepts 333
Endnotes 334
References 335
Conceptual Questions 335
Critical Thinking Questions 336
Case 8.1: Executive Summary—YuMe Networks 337
Case 8.2: Executive Summaries for Evaluation 339
9.  Marketing Plan  348
Learning Objectives 348
9.1 Introduction  349
9.2 Undertaking Marketing Research  350
9.3 Benefits of Undertaking Marketing Research  351
9.4 Factors Affecting the Decision to Undertake 
Marketing Research  352
9.5 Scope and Steps Involved in Marketing Research  353
9.6 Categories and Types of Market Research  360
9.7 Marketing Research on the Internet  362
9.8 Industry Analysis  364
9.9 Competitor Analysis  366
9.10 Define Target Market  368
9.11 Market Segmentation  374
9.12 Market Positioning  375
9.13 Building a Marketing Plan  375
9.14 Marketing Mix  377
9.15 Critical Factors for Devising a Market Strategy  381
9.16 Wilson Harrell’s ‘Marketing for the Amateur’  384
Key Concepts 387
Endnotes 389
References 390
Conceptual Questions 390
Critical Thinking Questions 391
Case 9.1: Housekeeping Business—Pricing Decision 392
Case 9.2: Food Industry in India 394
Case 9.3: Mahindra & Mahindra 398
10.  Operation and Production Plan  404
Learning Objectives 404
10.1 Introduction  405
10.2 Types of Production Systems  407
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