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Kuratko 8 e CH 09
Kuratko 8 e CH 09
8e
Donald F. Kuratko
Chapter 9
Assessment of Entrepreneurial
Opportunities
Chapter Objectives
1.
2.
3.
4.
5.
6.
7.
92
93
94
Personal
Personal
Characteristics
Characteristics
The
The
Environment
Environment
The
The
Venture
Venture
Entrepreneurial
Entrepreneurial
Motivations
Motivations
95
Figure
9.1
Source: Arnold C. Cooper, Challenges in Predicting New Firm Performance, Journal of Business Venturing (May 1993): 243. Reprinted with permission.
96
requirements
97
98
99
Table
9.1
910
Table
9.1
Source: Karl H. Vesper, New Venture Strategies, copyright 1990, 172. Adapted by permission of Prentice-Hall, Inc., Englewood Cliffs, New Jersey.
911
Table
9.1
Source: Karl H. Vesper, New Venture Strategies, copyright 1990, 172. Adapted by permission of Prentice-Hall, Inc., Englewood Cliffs, New Jersey.
912
913
Poor timing
Inappropriate distribution
strategy
Overreliance on one
customer
Managerial Problems
Concept of a team
approach
Financial Difficulties
Initial undercapitalization
914
Table
9.2
6. General management
Lack of management experience
Only one person/no time
Managing/controlling growth
Administrative problems
Other or general management problems
7. Human resource management
Recruitment/selection
Turnover/retention
Satisfaction/morale
Employee development
Other or general human resource
management problems
8. Economic environment
Poor economy/recession
Other or general economic environment
problems
9. Regulatory environment
Insurance
915
Figure
Source: H. Robert Dodge, Sam Fullerton, and John E. Robbins, Stage of Organization Life Cycle and Competition as Mediators of Problem
Perception for Small Businesses, Strategic Management Journal 15 (1994): 129. Reprinted by permission of John Wiley & Sons, Ltd.
916
Table
9.3
Entrepreneur
Rank
ILack of capitalization
ILack of capitalization
ILack of vision
E = External factor
I = Internal factor
Source: Andrew L. Zacharakis, G. Dale Meyer, and Julio DeCastro, Differing Perceptions of New Venture Failure: A Matched
Exploratory Study of Venture Capitalists and Entrepreneurs, Journal of Small Business Management (July 1999): 8.
917
918
Table
9.4
Source: Erkki K. Laitinen, Prediction of Failure of a Newly Founded Firm, Journal of Business Venturing (July 1992): 326328. Reprinted with permission.
919
920
921
Figure
9.3
Venture
922
Table
9.5
Technical Feasibility
Analysis
Market Feasibility
Analysis
Financial Feasibility
Analysis
Organizational
Capabilities Analysis
Competitive
Analysis
Crucial technical
specifications
Design
Durability
Reliability
Product safety
Standardization
Engineering
requirements
Machines
Tools
Instruments
Work flow
Product development
Blueprints
Models
Prototypes
Product testing
Lab testing
Field testing
Plant location
Desirable characteristics
of plant site (proximity to
suppliers, customers),
environmental
regulations
Market potential
Identification of potential
customers and their
dominant characteristics
(e.g., age, income level,
buying habits)
Potential market share
(as affected by
competitive situation)
Potential sales volume
Sales price projections
Market testing
Selection of test
Actual market test
Analysis of market
Marketing planning
issues
Preferred channels of
distribution, impact of
promotional efforts,
required distribution
points (warehouses),
packaging
considerations, price
differentiation
Required financial
resources
Fixed assets
Current assets
Necessary working
capital
Available financial
resources
Required borrowing
Potential sources for
funds
Costs of borrowing
Repayment conditions
Operation cost analysis
Fixed costs
Variable costs
Projected profitability
Personnel requirements
Required skill levels and
other personal
characteristics of
potential employees
Managerial
requirements
Determination of
individual
responsibilities
Determination of
required organizational
relationships
Potential organizational
development
Competitive analysis
Existing competitors
Size, financial
resources, market
entrenchment
Potential reaction of
competitors to
newcomer by means of
price cutting, aggressive
advertising, introduction
of new products, and
other actions
Source: Hans Schollhammer and Arthur H. Kuriloff, Entrepreneurship and Small Business Management (New York: John
Wiley & Sons, 1979): 56. Copyright 1979 by John Wiley & Sons, Inc. Reprinted by permission of John Wiley & Sons, Inc.
923
feasibility approach
critical factors
customer availability
external problems
failure prediction
model
feasibility criteria
approach
growth of sales
growth stage
2009 South-Western, a part of
high-growth venture
internal problems
lifestyle venture
marketability
product availability
small profitable
venture
start-up problems
technical feasibility
uniqueness
924