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Entrepreneurship can be defined as a creation of an innovative economic organization for the purpose of gain or growth under condition of risk and uncertainty. So, entrepreneurship are includes innovation, economic organization growth during risk or uncertainty. However, according to Hart, Stevenson & Dial (1995) mention that 'The pursuit of opportunity without regard to resources currently controlled, but constrained by the founders' previous choices and industry - related experience'.
In these fundamentals of entrepreneurship's assignment, the author will be the experienced business executive to give some advice to help Jerry's business enterprise. Besides that, in this assignment, it contains 4 tasks. In task 1, the author will review the performance of Jerry's business. In tasks 2, the author will help Jerry to find out the company's strength and weaknesses.
However, in task 3, the author will follow the analysis of the company's strengths and weaknesses, recommend a plan of action that will capitalise on the company's strengths and overcome its weaknesses. At last, task 4 is Jerry has bought the author a one - week, return ticket to his holiday home in Penang. Besides that, the author needs to help him investigate ways in which the business existing performance could be maintained and strengthened.
What is business performance?
Business performance is mean that the capability of that company. In this business performance, it will show that the business can earn how many profits and it will also show that how the business grows and maintain from the day that business started.
2.1 The business performance of Jerry Electronic Company
After graduate, Jerry had started a new business enterprise and name it's as Jerry Electronic Company. Jerry Electronic Company is one of the local manufacturers of electronic product for the consumer and this company already start up business in three year ago but it is a new electronic company compare to other famous electronic company like Samsung, Sony and LG. Jerry Electronic Company is focused on electronic product, the product that they manufacture have television, projector, home audio, home video, storage media, home theatre system, digital camera and computer.
In this case, the author was review the performance of Jerry Electronic Company. In year 2012, the total profit that Jerry Electronic Company earns is RM 6.5 billion. Compare this data to the previous year, the total profit that Jerry Electronic Company earn have decrease 7.5%. This is because, they lack of new product to launches in year 2012. Besides that, the author found that, the profit margin that in Jerry Electronic Company is 0.17% while the assets utilization is 0.4711%.
In conclusion, the author found that, Jerry's company is one of the local manufactures of electronic product and the author has found out the performance of Jerry's company.
SW analysis for Jerry Electronic Company
There have many ways to analysis a business. One of the best ways to do this is creating a SW analysis that is strength and weaknesses. In this case, analysis of the company's internal strength and weaknesses should summarise the company's ability to take advantages of or at least to cope with the environment. So, the author will help Jerry to identify his company's strength and weaknesses.
Below that is the strength and weaknesses analysis of Jerry Electronic Company:
3.1 Strength of Jerry Electronic Company
In Jerry's company, the author found that, it has a lot of strength in the company. One of the strength of Jerry's company is Jerry Electronic Company is synonymous with technological excellence and has a rich heritage of technological enterprise. Besides that, they have creating VCR, Trinitron Colour Television, compact disc, magnetic recording tape and Blu Ray disc used today as a medium for HD (high-definition) video playback.
So, it shows that, Jerry's company able to create good quality products for their customers. In Jerry's company, all his engineers have learnt from the past failure and so they can produce and work better. Besides that, their product is well known due to its HD (high-definition) functionality.
However, in customer services, Jerry's company will provide their customer latest software and hardware tools. In this case, it shows that, they are always satisfying the customer expectation according to their demand or needs.
3.2 Weaknesses of Jerry Electronic Company
On the other hand, the weaknesses that the author found out are the product quality and function that Jerry Electronic Company produces it is lower than his competitor. Besides that, Jerry's company has to face many competitors in this electronic industry, such as Samsung, Sony and LG. However, the cost of Jerry's company product is higher than its competitors and it also affect Jerry's company losing market share to manufactures.
In addition, insides the company, the functional department are not communicate with other departments and this will cause their productivity has to decreased. In the company also, they has no sense of direction and is not being managed properly. Some more, they lack of new product to launches and this cause they are hard to compete with other competitors. At last, most of the people were disappointed and no confidence to Jerry's company product because of the late release of the product and their product is hard to attract customer because they didn't have do well in advertising.
In conclusion, the best way to analysis a business is using this strength and weaknesses. Besides that, the author is found that, it has a lot of strength and weaknesses in Jerry Electronic Company.
4.0 Plan of action
After the author analysis all the strength and weaknesses in Jerry Electronic Company, the author will recommend a plan of action to Jerry Electronic Company that will capitalise on the company's strength and overcome its weaknesses.
In this case, the first plan of action that the author can advise to Jerry's company is using their company's technologic knowledge to improve their product quality and try to develop or create new feature to apply it in their product. So, Jerry's Company can compete with his competitor. Besides that, Jerry's company would not worry about the cost of product is higher than its competitor and losing market share. This is because, the products quality and function have improved and it is worth to the customer although the product price is high. This is one of the ways that can help Jerry Electronic Company capitalise on the strength and overcome the weaknesses.
However, the other way that the can help Jerry's company to capitalise the company's strength and overcome its weaknesses is they can improve their customer service and make good relationship with their customer. In the same time, they can use customer service to advertising their new launches product to their customer. In this case, Jerry's company can put the new launches product in their shop to show their customer and let they try it. This is one of the best ways to advertising their new launches product and it can help Jerry's company save the advertisement cost.
Besides that, they can ask the customer to give a feedback when they try the new product. So, Jerry's company can bring all these feedback and summarize it to let their engineer know where they can improve. In the end, they not only can produce the high quality product to satisfy customer but also can attract more customer to know their product.
At last, by using the customer service to advertising their product, they can receive the feedback and all this feedback can be the topic that they can be discuss. So, in this case, it can improve the communication between the departments. In addition, it also can make they has a sense of direction to managed the time to release the new product. So, this can avoid that they late release their new product to customer and it will also built the brand loyalty and the customer have more confidence to use the product.
In conclusion, all of this strength in Jerry's company can capitalise it and overcome its weaknesses. So, Jerry's company can run their business well while using that author are advise him the plan of action.
5.0 Ways to improve the business' existing performance
Jerry has bought the author a one - week, return ticket to his holiday home in Penang. In this case, Jerry wants the author to help him investigate ways in which the business's existing performance could be maintained and strengthened.
The ways that can help Jerry Electronic Company to improve the business's existing performance is Jerry's company can invest in expanding distribution network and this can let their product to become well known. Besides that, Jerry's company can spend heavily on promotion and advertising. In this case, the promotion should be focused not only on informing customer but also creating brand preference through differentiation and expanding market share.
In order to maximize the market share, Jerry's company must offer the product extension, warranty and services. In this case, Jerry's company can extend the warranty period of their product and try to free service for their customer. In addition, Jerry's company can apply to license their product. This can be effective because licensing can minimize his company risk and is low cost in comparison to the price of his company to produce and sell his product or brand.
In this modern society, all the things will related to internet and technologic. This prove situation that, an effective website is becoming an integral part of business today. One of the ways that can help Jerry's company to improve is try to expand his business to the internet. So, in this case, Jerry's company create a website to do an online business and service also.
In conclusion, the author found that, it have many ways to help Jerry's company to improve their business. In this case, it shows that, if the business enterprise didn't change the way that they run business, it will hard to compete with others competitor.
6.0 Conclusion and Recommendation
In conclusion, the review of performance is help Jerry's company to know where the position that they stand and the financial system is good a not. Besides that, the strength and weaknesses contain in Jerry's company is very important for they to know how to improve his business. At last, it has many ways to help his company to growth their business.