Question

As a student of BBA imagine you have decided to become entrepreneur. You came up with a great ideas in your business plan to start your own company.

a. Identify the key decisions you need to be a successful entrepreneur and the information you need for the business processes.

b. Apply the value chain concept to your business and explain how it would perform the various primary and support activities.

Answer 1

Entrepreneur

A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so

a) > objective

        it is important to decide what the main objective of the business and how should we achieve this objectives

> Financing

            Finances and accounting can be one of the most tedious and intimidating aspects of running your business. It is important to decide how to finance your business

> Investigate your space

              It is essential to find out best place for our business.

The all essential services are must avalible in our selected place

>legal formality

      The entrepreneur must aware of all the legal formalities before he start his business. And he should fulfill all legal requirement before doing his activities.

> Find your crew

              You are going to need a strong team of people around you so that this journey is enjoyable and to help you keep achieving your goals. So before starting the business find a good crew.

                             Things you need to know before starting a business are:-

Ø Marketability of our business product

Ø Competition we have to face in the market

Ø Future demand of our business product

Ø Must find out barriers we have to face while doing the business

Ø Find out whether the idea is profitable or not

b)   Value chain concept

                 A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.

             

                                The value chain classifies business activities into two categories: primary and support.

primary activities:

a. Inbound logistics :-    includes all processes involved in ordering, receiving, and temporarily storing merchandise that is going to be sold to the business

b.Outbound logistics:-   includes delivering the products to the customer.

c. Sales & marketing :- includes ringing up and processing all sales transactions and advertising products to increase sales.

c. Service includes repairs, periodic maintenance, and all other post-sales services offered to customers.

support activities

a. Firm infrastructure :- includes the accounting, finance, legal, and general administration functions required to start and maintain a business.

b. Human resource management :- includes recruiting, hiring, training, evaluating, compensating, and dismissing employees.

c. Technology:- includes all investments in computer technology and various input/output devices, such as point-of-sale scanners. It also includes all support activities for the technology.

d. Purchasing :- includes all processes involved in identifying and selecting vendors to supply goods and negotiating the best prices, terms, and support from those suppliers