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Daft, R. (2011), page 148, mention that "entrepreneurship is the process of initiating a business venture, organizing the necessary resources, and assuming the associated risks and rewards. An entrepreneur is someone who engages in entrepreneurship. An entrepreneur recognizes a viable idea for a business product or service and carries it out by finding and assembling the necessary resources such as money, people, machinery, and location to undertaken the business venture. Entrepreneurs also assume the risks and receive and reap the rewards of the business. They assume the financial and legal risks ownership and receive the business's profits".
Jerry is a young graduate and has just started a new business enterprise. Jerry needs the advice of seasoned business executives to success. In task 1, is about review the performance of Jerry business. Performance is defined as accomplish of a given task measured against present known standards of accuracy, completeness, budget, and rapidity.
In task 2, is identifying Jerry Company's business strengths and weaknesses. When doing business, company must care about the strength and the weaknesses. This is because, both of them will affect the company growth, profit, and etc.
In task 3, is analysis the strengths and weaknesses of Jerry's business. Then, recommend a plan of action that will capitalize on the company's strength. And also overcome its weaknesses in the business.
In task 4, is helping Jerry to do survey. There have some ways in which the business' existing performance might be maintained and strengthened. Therefore, Jerry has bought a one-week return ticket to his holiday home in Penang.
2.0 Analysis Business Performance of Jerry's Ice-cream House
2.1 Business Performance
Performance is defined as accomplish of a given task measured against present known standards of accuracy, completeness, budget, and rapidity. Have a good business performance is very importance before Jerry started up a business.
2.1.2 Performance of Jerry's ice-cream house
Jerry is a young graduate and has just started a new business enterprise. Business name is Jerry's ice-cream house. The business is operated in year 15 Feb 2012. The location of Jerry's ice-cream house is in Greentown Ipoh, Perak around an industry area. Jerry's ice-cream house working hour per day is 12 hour, 10:00 a.m. until 10:00 p.m. In addition, every week of Tuesday Jerry's ice-cream house have one day is off day. Therefore, Jerry's ice-cream house just work six days per week only.
Jerry's ice-cream house has provided few types of products such as ice-cream, cake, and beverage. Ice-cream has different types include permanent, rotators, sherbets, sorbets/ices, no sugar added, lighter side, and low fat ice-cream. Besides that, cakes also have different types that provide to the customer such as birthday, holidays, special occasions, sports and animals, elegant designs, and novelties cake. And the beverage also has few several types. For example, shakes, blast, and also fruit fusion.
Moreover, the price of the product that Jerry ice-cream house provide is general price to the customer. Cups and cones ice-cream generally is RM4, a sundae is RM8 and hand-packed ice-cream have three choices small, medium, and larger, there are RM10, RM20, and RM30.
The packaging of the ice-cream has few types, it includes cups and cones, sundaes, or pre-packed quarts. Difference type of packaging can attract the customer because different customer has different needs. In addition, customer also can buy hand packed. Customer can bring home the favourite ice cream to enjoy whenever they want, choose from any of the delicious flavours available in our dipping case. Hand-packed ice cream is available in small, medium, and large.
In the conclusion, Jerry is a young graduate. Besides that, Jerry does not have any experience to operate a business and also just started a new business recently. Therefore, must give some advice to Jerry on how to strengthen of his business and also must let Jerry understand the business performance.
2.2 Strength and Weaknesses
2.2.1 The Strength of Jerry's Ice-cream House
First, the strength of Jerry's ice-cream house is has more than 100 flavours of ice-cream in the library include permanent, rotators, sherbets, sorbets/ices, no sugar added, lighter side, and low fat ice-cream. There are so many choices let the customer choose their flavour and it can also satisfy the customer needs. Therefore, customer does not feel weary because still got a lot of flavour provide to the customer.
Besides that, the strength of Jerry ice-cream house is providing several services for different age group customer. Jerry's ice-cream house focus customer range is very widely, it includes children, teenager, adults, and old people. This is because, Jerry wants everyone also can enjoy it.
In addition, the strength of Jerry's ice-cream house is it has lower price of the product that provide. Compare with other shop, the product of Jerry's ice-cream house is cheaper than other. For example, Haagen-Dazs also provide ice-cream but the ice-cream is very expensive. Therefore, not all customers have ability to purchase their product. Just only the high class people can enjoy it
2.2.2 The Weaknesses of Jerry's Ice-cream House
Besides the strength, Jerry ice-cream house also have their weakness. The most important is the capital in the business. Capital is in order to produce certain goods or in order to create and maintain the proper environment for offering certain services. New businesses often find themselves in working capital crunches. Without working capital, Jerry's ice-cream house cannot build inventory or purchase raw materials. As a result, Jerry cannot sell enough products to generate the profits needed to rectify this situation. This is extremely dangerous and can be destabilizing for the shop or even cause it to collapse. With a capital loan working for you, you can make sure that your business gets a strong start.
Another weakness is Jerry's ice-cream house does not have doing advertisement to promote the business. Advertising is the most important part in the business. The reason is, advertising is an advantageous representation of product to make consumers, customers and general public know of the product. It lets the potential buyers, general public and end users to be familiar with the brands.
In the conclusion, the strength of a business organization refers to the capacity by which an organization can gain advantage over its competitors. Environmental analysis helps the business organization to find out its strength. After that, it can make the policies and plans to expand the business and to take advantages over competitors. In addition, according to Trehan, M. et al. (n.p.), page 24, said that "the weakness of a firm refers to limitation of a business firm. It results in significant disadvantages for a firm in comparison to its competitors". The environment analysis helps is to find out the weaknesses of the business. For future growth and expansion of the business, decision-making should make plans to overcome the weaknesses.
2.3 Plan of Action
Plan of action is an order of steps that must be taken, and the activities that also must be performed well for a strategy to succeed. Therefore, the plan of action can help Jerry to improve the ice-cream house.
2.3.1 Overcome the Weaknesses
First, the strength of Jerry's ice-cream house is has more than 100 flavours of ice-cream in the library. There are so many choices let the customer choose their flavour and it can also satisfy the customer needs. Jerry's ice-cream house must continue create different types of flavours products and also produce some creative product to attractive customers especially the children. As a result, this way it can maintain the existing customer or new customer come to Jerry's ice-cream.
The strength of Jerry's ice-cream house is the products that selling the lower price to the customer. Therefore, Jerry must maintain this strength because the price as a competitive advantage. Competitive advantage is means that the lower prices or providing greater benefits and service that justifies higher prices. Moreover, also can defined as an advantage over competitors gained by offering customers greater value.
Besides the strength, Jerry ice-cream house also have their weakness. The most important is the capital in the business. Capital is in order to produce certain goods or in order to create and maintain the proper environment for offering certain services. Overcome this capital problem it has so many ways such as, franchising, strategic alliance, join venture, license the product, and others. For example, license the product it can be an effective and lower cost growth medium, particularly if Jerry's business have a service product or branded product.
Next, overcome the weaknesses of Jerry's ice-cream house about the advertisement, it can create a website to advertise the business. There has many advantages using website to advertise the business. It has cheap market research, use features on your website such as visitor polls, online surveys and the website statistics to understand the customer needs and wants. And also how customers feel about certain aspects of the business to determine how can improve the product and the way to do business. Besides that, it is a growth opportunity. This is because, website serves as a great place to refer potential investors to, to show customers what your business is about, what it has achieved and what it can achieve in future.
In the conclusion, the above are listed out the plan of action that can help Jerry's ice-cream house to overcome the weaknesses of the business and also can strengthened Jerry's business. In the end, these will improve Jerry's business.
2.4 The Ways Maintained and Strengthened
Jerry has bought a return ticket to his holiday home in Penang. Besides that, Jerry need for help to do survey to get some ways in which the business' existing performance might be maintained and also strengthened to his business. After help Jerry investigate, it has few ways on how to maintain and strengthen Jerry's business.
2.4.1 Ways to Maintained and Strengthened Jerry's Business
The first way to maintained and strengthened Jerry's ice-cream house business can use the strategic alliances. According to Michael, M. et al. (1995), page 4, mention that "a strategic alliance links specific facets of the businesses of two or more firms". Strategic alliances is partnerships between and organization and a foreign company in which both share resources and knowledge in developing new products or building new production facilities. If Jerry's ice-cream house strategic alliance with others shops, it can help the shop to increased brand awareness. This is because, the opportunity to grow market size with a partnership presents the additional opportunity to increase awareness of the brand. One of the key elements of a business' success is constant, growing brand awareness. Besides that, strategic alliances allow Jerry's ice-cream house to reach a broader audience without putting in any extra time and capital.
In addition, when Jerry's ice-cream house face the financial problem it also can sharing the financial risk. Enterprises can make use of the strategic arrangement to reduce Jerry's ice-cream house financial risk. For example, when two firms jointly invested with equal share on a job, the greatest potential that each of them stands to lose is only half of the total job cost in case the venture failed.
Next, is Jerry's ice-cream house can turn his business into franchise to maintained and strengthen the business. According to Gappa, B. (2001), said that "franchising is a business strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of current and future customers about how the company's products and services can help them. It is a method for distributing products and services that satisfy customer needs". For example, advertising can be one of the biggest expenses for any new business. Jerry can't survive without effective advertising and also effective advertising is expensive. Although Jerry's ice-cream house have a good location, if the customers are unfamiliar with your business what have to offer, they also won't come in. Franchises offer national advertising campaigns that are included in the franchise fee. This is a huge advantage for Jerry's business.
In the conclusion, there have many ways to maintained and strengthened Jerry's business. Besides that, there also have a lot of advantages. If Jerry changing the ways to operate the business. After few months later, Jerry's ice-cram house can become a famous shop in the state. And also Jerry's business can expand to another location or expand globally.
3.0 Conclusion and Recommendation
After done my entrepreneurship assignment, I know that business performance is very importance before started up the business. Performance is defined as accomplish of a given task measured against present known standards of accuracy, completeness, budget, and rapidity Task 1, is about the review the performance of Jerry's ice-cream house.
Task 2 is about the strength and the weaknesses of Jerry ice-cream house. The strength of a business organization refers to the capacity by which an organization can gain advantage over its competitors. Contrary, the weakness of a firm refers to limitation of a business firm. It results in significant disadvantages for a firm in comparison to its competitors.
Task 3 is about overcome a weaknesses of Jerry's ice-cream house. After done my research, I have found some ways to recommend a plan of action that will capitalize on Jerry's ice-cream house strengths and also few ways of how to overcome the weaknesses in the business.
Task 4 is about the methods in which the business' existing performance might be maintained and strengthened Jerry's ice-cream house. During research, there have so many ways to maintained and strengthened the business.