1. What is the advantage of entrepreneurship?
2. What is SMART goals?
- We are able take our first step into the business world by starting
- SMART goals ensure that your goals are in line and you are able to
up our own business, for example, in the make-up industry.
achieve them.
- We are the own boss of our company, hence we can control how
- S for Specific, a detailed and narrow goal. For example, you plan
things are handled in the company, for example, we have the
to make handmade souvenirs and sell them on Carousell.
authority to motivate employees to brainstorm for new ideas.
- M for Measurable, a logically figured goal. For example, you aim
- We can provide job opportunities for other individuals in this
to sell a minimum of 5 souvenirs in a period of one week.
current state of low economy of our country since we are the boss of
- A for Attainable, whether it can be achieved or not. For example,
our company.
build an inventory of 30 souvenirs to be sold and start promoting
- The profit that we earn is for ourselves. The income from sales
business by words of mouth and local networking.
is entirely ours because it is our own company.
- R for relevant, within the availability of knowledge, time and
- We can start up a business based on what we like, for example
resource. For example, selling handmade souvenirs allow me to
fashion industry.
benefit financially from my hobby.
- We can increase the GDP of our country’s economy and in turn
- T for target dates, datelines. For example, my carousell will be up
increase the income of ourselves and also that of our employees.
and running within 4 weeks and I will have an inventory of 30
With higher income, we do not have to worry in spending a bit more
souvenirs to sell within 6 weeks.
of money in things that are desired. - We can bring in more investors into our company. Investors are important because a growing business requires adequate funding. - Being the boss, there is flexibility in what we do.
3. Vision and mission statement? How to write a good vision and
- Strategic goals: set by and for top management, focuses on
mission statement?
objectives of company as a whole. For example, 500 bottles per
- memorable and recitable: easy to understand
week.
- relevant to company’s objectives: include philosophy and values
- Tactical goals: set by and for middle level managers, focuses on
- tells managers where to look and avoid when seeking for strategic
actions to be taken to achieve strategic goals. For example, increase
opportunities
production by upgrading machines service.
- distinguishes firm from competitors in the industry
- Operational goals: set by and for first line managers, focuses on
- clear and creative
short-term matters related to realizing tactical goals. For example,
- approx. 200-300 words
work overtime.
4. What are the risks that entrepreneurs face?
6. Broad-based environmental factors?
- risk of losing business: fail to keep up with needs of target market
- Governmental factors: changes in government policy, tax
- bankruptcy: no sufficient funding
changes. For example, GST and KWSP dividend increase.
- competition
- Economic factors: how the falling economy affects us. For
- no personal time: affect interpersonal relationships
example, many people are jobless or do not have a stable income.
- legal and compliance policies: lawsuit
- Technological factors: machinery, advancement in technology. For example, fax machines instead of overnight mail delivery.
5. How many types of goals? What are the goals?
- Demographic factors: age, gender, race, ethic make-up, education etc. For example, meet demographic requirements of target market when planning the launch of new product.
- Social factors: preferences of a society. For example, keep up with
- internal factors: strength and weakness, external factors:
trends in society when coming up with new products.
opportunities and threats
- Global factors: expand business internationally. For example,
- S for Strength: any resources that helps an organization realize its
satellite communication, easier and faster mode of transportation
objectives and strategies, capitalize on its opportunities and prevents
and economic alliance among countries.
it from threat. For example: staff, product quality, production capacity, financial resources, etc.
7. What is MBO and the process?
- W for Weakness: any resources that inhibits an organization from
- Management by objectives
realizing its objectives and strategies, capitalize on its opportunities
- Manager and employees jointly set objectives for employee
and is vulnerable to threats such as competition. For example: same
- Manager make an action plan: to meet needs of employees who are
as Strengths.
working for them
- O for Opportunities: room for improvement. For example,
- Manager and employees jointly review the performance of
competition analysis, product analysis, government policies.
employees over time
- T for Threats: can implement counter measures prior to facing
- Manager make a performance appraisal and reward accordingly: in
threats such as competition. For example, same as Opportunities.
terms of bonus or job promotion 8. What is SWOT analysis? - an outside-in business tool that is used to evaluate attractiveness of organization structure
