Analysis of Management Skills and Entrepreneurship in Business

This report delves into the critical aspects of management skills and entrepreneurship, focusing on the establishment and operation of a new online retail business, ABC Co. The report begins with the concept of a new venture, emphasizing the importance of unique service delivery, such as one-day delivery, to gain a competitive edge. It then explores the concept of the opportunity gap in the market and how businesses can capitalize on these gaps. The report outlines the feasibility of the business, highlighting the advantages of online retail in the modern technological era, and the importance of adapting to customer feedback. It further discusses the essential management skills required for a new business startup, including leadership, strategic planning, marketing, sales and customer relationship management, communication, and finance and accounting skills. The report also addresses the development of a proposed business model, strategies for human resource management, risk management, and the calculation of the break-even point. Overall, the report provides a comprehensive overview of the key elements necessary for entrepreneurial success in the online retail sector.

Management Skills &
Entrepreneurship

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
New venture concept...............................................................................................................................3
Opportunity gap in market.......................................................................................................................3
Business feasibility..................................................................................................................................4
TASK 2.......................................................................................................................................................4
Requirement of new business startup with management skills................................................................4
TASK 3.......................................................................................................................................................6
Proposed business model and achievement towards a positive financial position...................................6
TASK 4..........................................................................................................................................................7
Human resource management strategies...............................................................................................7
TASK 5..........................................................................................................................................................9
Manage business risk and plan to avoid failure.......................................................................................9
TASK 6..........................................................................................................................................................9
Sales required to attain Break Even point................................................................................................9
CONCLUSION.............................................................................................................................................10

INTRODUCTION
For any new business startup it is necessary to have a proper management. It leads to
promote business in a positive manner. The basic function which is performing by management
is to formulate strategies through which all projects get done in a proper manner. An individual
who is owning that new business is known as the entrepreneur. An entrepreneur is a person who
bear all the risk which are associated with business and come up with a new idea to establish a
new business firm in a competitive market for gaining all the opportunities alone. Hence it is
necessary for him/her to have some managerial skills through which the strategies get formulate
in a proper manner in an efficient manner. The present reports is concern with the topic
management skills and entrepreneurship. In this assignment discussion is about ABC co. who is
working in an online marketing sector where they can attain large number of opportunities of
market. Also meaning of opportunity gap is going to be describe in this report. Moreover how an
organization going to arrange suitable finance for their working. All such things are briefly
explain in this assignment brief (Dacin, Dacin and Matear,2010).
TASK 1
New venture concept
An organization is working in online retail market through which they can deal in all over
the world at global level. They provide each type of products to their consumer whether they are
related with the clothes, accessories, housing products with one day delivery etc. Their one day
delivery concept is new and unique because managers and authority think that this aid them in
attracting large number of customers towards their firm. Their goods are good in nature and their
quality are appropriate also with low price. As per this anyone can afford their products easily
without so much problems(Smith and et.al., 2012).
Hence this strategy help them in survive in market for long run without so much
problem. As per the discussion it is found that ABC co. do not have unique venture concept but
their service delivery of one day make them different from others through which they can easily
sustain in market also this lead in reduce the chances of surviving in keen competitive world.
Opportunity gap in market
Opportunity gap refer to as such type of achievement which are available in market and a
business firm is not addressing them. This process signifies that sometimes an organization is not
able to attain all opportunities of market in a proper manner due to some financial reasons and
low market growth. This lead in reduce the chances of their survival in market for long run. Thus
their business lead in decline in wrong direction with shut down point(Jusoh., and et.al., 2011).
Hence it is a moral duty of an entrepreneur to grab all the achievement of a market by bearing all
type of risk which are associated with them and show its skills in a proper manner so that
business can prosper in a proper and appropriate manner. This concept is generally for both type
of firms which are already exist in market or which are new in the keen competitive market
world.

So ABC co. authority have to work in this manner which lead in grabbing all market
opportunities so that they can survive in long run. Also it leads in increase their profitability
through which their services become more convenient and their users interest get remain safe.
Managers have to well aware about the market and all such situations which might affect their
business. So this duty is concern with them and thus their firm can attain all new heights.
Business feasibility
This business concept is feasible in nature because this modern world is consist of many new
technologies through which all task get accomplish in minimum time bound. With the rapid change in
technology it also lead in manufacturing more good quality products and interact with customers in an
appropriate manner. If users will tend to face any kind of problem from new product or service which are
offered by them they can easily file a complaint against this in the form of feedback. So managers can
take effective decisions through which all such type of circumstances get over come. Also their firm can
establish more properly in competitive market(Jaafar and et.al., 2011).
Now more than 80% users are using internet in this modern era which signifies that their time
spent is more and thus it leads in increase the number of customers who use internet marketing concept.
Thus according to this scenario it get found that this business is feasible and can generate more and more
revenue so that management can provide more appropriate services to their customers.
Cited organization can use some different number of sources which aid them inn identify their
users need and demand and they can offer only such type of products and goods to them which provide
them more satisfaction. If they filed in do so then their business become idea went failed and they do not
be able to generate more profit. Their one day delivery idea help them most for attain target number of
customers without any kind of problem. The new consumers want early delivery option(Ogundele
Akingbade and Akinlabi, 2012).
TASK 2
Requirement of new business startup with management skills
Management skills are essential [part for any new business because without them not a single act
can operate in an appropriate manner. It provides a guideline on which all operation get done. A manager
have some number of skills which it should have to perform if it failed in do so then it directly affect their
business. A successful manager is one who is time efficient, well known about how to deal with
circumstances etc. which affect the business. It also have a better communication skills through which a
better communication process can take place. This is necessary to pass on all the information in a proper
manner. A better and effective communication process make the productivity and outcome hundred time
better than other time.
There are many skills are required which are really necessary for an entrepreneur to run a
business successfully apart from the knowledge of market place. For any business operation it is
necessary to have some knowledge which are started from the knowing customer preference and opinion
to preparing and maintain accounts for a firm. Hence some core skills are really required for an individual
to have some management skills to start a new business. Following are the list of some key abilities which
aid in success of an organization:
Leadership skills: From early adolescence many leaders are getting identify who provide a best structure
of life and they provide a proper frame which help in making all work in an appropriate
manner(Boyles,2012). The best run businesses are not most effective advertising led but have sturdy

leaders on the helm who understand what is required to attain set desires. They may motivate their crew
to carry out properly to fulfill the overall business enterprise targets. Those leaders will now not
procrastinate in their decision making and will lead the organization ahead in the right path. Some people
are born leaders and understand exactly what's required to run a successful commercial enterprise
however maximum folks are not. Therefore, education programs had been evolved to enhance
management abilities to guide strategy, lead teams of humans, lead change management programs and
adjust and manage the corporation politics that organizational change may disrupt. So leadership skills are
an essential part through which new business startup can manage all of their working in a proper manner.
1. Strategic business planning skills: Every enterprise follows a plan even if it is not written down in
a report. However developing and implementing strategic alternate is a skill all enterprise
proprietors need. Venture a strategic audit and writing a business plan is the first step in this area.
Wondering strategically to your outlook is a rare ability amongst commercial enterprise owners
and executives as most of the people are focused at the daily operations and dealing with
consumer troubles on the way to sit again and think about the future. And before they know it
every other year has handed and little real progress has been made. Making use of strategy on
your business will assist you step clean long term desires with a view to meet longer-time period
targets. Thus a proper strategy have to get formulate and on such basis all work be get done. This
is one of the most appropriate thing because for survival strategy formulation and objectives
setting is must.
Marketing skills: Possibly on the coronary heart of every a success commercial enterprise is an actual
advertising character who absolutely understands that clients pay the payments and grow the commercial
enterprise(Oosterbeek, Van Praag and Ijsselstein, 2010). Completely and utterly going for walks your
enterprise to your client’s desires is where successful companies come from. Everybody can run a
business at some stage in boom instances, but it's the ones companies that thrive at some point of a
recession are the ones that genuinely understand what their customers need and provide services and
products precisely matching those wishes. Advertising is a key talent to have and buy turning in what
human beings want to shop for is an obvious requirement for going for walks a commercial enterprise
however no longer many human beings surely understand the way to market a business efficaciously.
Advertising led organizations always dollar the fashion and have a tendency to supply more revenues and
profits than their competitors. Hence marketing skills refer to as the position through which a business
man can attract target customer for buying a product for its satisfaction.
2. Sales and customer relationship: Promoting is nearly an art shape, and each person has possibly
sold something in their lives already. The talents required in sales are without a doubt to
recognize the promoting system; from preliminary touch to completing the sale. It’s well worth
having a look at a hit web sites to peer how the selling technique works. Many sites fail because
they honestly do not "ask for the order". Correct income humans not often go away an assembly
without an order or at the least a commitment to maintain negotiations. Just losing a few leaflets
off at a prospect patron without any observe-up activity will now not get you that sale. The sales
procedure has six basic steps as follows:
 Prospecting for new leads.
 Preliminary contact with the chance.
 Presentation of sales materials.
 Objection handling.

 Last the sale.
 Comply with up/ after income service.
Hence sales and customer relationship plays an important role for achieving the targets in
minimum time period with wide customer satisfaction. It leads in attract many consumers
in an appropriate time bound.
Communication skill: This form of skill is compulsory because it lead in identify that what type of nature
and communication a business owner have with its staff members and customer. If an individual have
good communication skill then it leads in attain better productivity. Also it tends to decline the chances of
conflicts between employees and management. Hence, an effective communication is compulsory for
them(McElwee and Bosworth, 2010).
3. Finance and accounting skills: The major issue which is associated with a business is to manage
appropriate amount of cash which help in managing all the activities in a proper manner. So a
business owner have to allocate proper amount of cash which is required for business and
maintain their accounts properly so that their shareholders can get right information about all
investment.
TASK 3
Proposed business model and achievement towards a positive financial position
Business making plans is the procedure of setting dreams, explaining the targets after which
mapping out a report to attain those dreams and targets. A properly-written marketing strategy lays out
the first-rate boom path and strategy, as well as the motive for the selection of the strategy over other
options. In essence, a business plan is the articulation and rationalization of why the selected sport plan
for building the business enterprise makes sense, what assets it will want to enforce the imaginative and
prescient, who the group can be in an effort to have the skills and leadership to execute the imaginative
and prescient, and what direction they may comply with to get there. Following are the basic questions
which simplifies a systematic business model for cited firm which deal in online trading:
Who are we? (Crew)
What are we looking to do? (Assignment)
What problem do we clear up? (Quicker/higher/less complicated/less expensive)
How are we going to get it carried out? (Operations)
How do we attain our clients? (Sales/advertising/Distribution Channel)
Who else is doing this? How do we gain our initial customers? Which are the very best to attain? What
are the target customers' decision-making techniques? What relationships do they presently have in
region on the way to need to be terminated for them to do business with us? (Opposition/competitive
analysis)
What market studies have we carried out to be sure that all people wishes to shop for this service or
product at this rate - or at all? (Substantiation)
Will we clearly modify the manner commercial enterprise is being achieved in our enterprise (as an
exchange agent) or is that this extra of a fad or a fashion? (Market traits/First Mover benefit)

Are those targeted client relationships profitable? How do we make money? (Business version)
What will we need to perform our dreams? (Price range/sources)
Whilst are we worthwhile? (Breakeven/Timetable)
These are the basic questions which are setting by an organization while making their business
model. All these questions are related with their business through which their strategy formulation
process become easy and managers and entrepreneur can promote their team to work on these
questions. Hence an appropriate business model always promote and force a firm in a positive manner.
It also help them in identify the best positive manner for finance whenever they needed that most.
Finance is needed for them to attain all of their targets in a positive manner. It also enables an
organization to provide best services to their customers at minimum cost. If an entity maintain their
accounts in a systematic frame then it leads in making their fund related act easy. Management can
arrange more and more debt for all operations through which their working become one of the best
than others. An effective financial accounts lead in taking shareholders trust and faith in a proper
manner. Hence it also help them in grab many opportunities and make their services more and more
favorable which are beneficial for their customers. So ABC co. have to utilize to utilize their funds in a
proper manner so that they can attain positive financial outcome when they need that most.
A perfect business model is one in which all the activities have equal weightage which are
helpful for them. It includes all the task and objectives which an entity will going to achieve. If a manager
is failed in do so then it directly affect business and all its related operations.
TASK 4
Human resource management strategies
Ensure adequate human assets to satisfy the strategic desires and operational plans of an
organization - the proper people with the right abilities on the proper time.
Hold up with social, financial, legislative and technological developments that effect on human assets in
company region and inside the sector.
Stay flexible so that corporation can manipulate exchange if the future is distinct than expected.
Strategic HR planning predicts the destiny HR management wishes of the organization after analyzing
the corporation's modern-day human resources, the external labor marketplace and the destiny HR
surroundings that the organization could be running in.
The strategic HR making plans system has four steps:
Assessing the modern-day HR capacity
Forecasting HR necessities
Gap analysis
Growing HR techniques to guide organizational techniques

HR capacity: Based totally on the company's strategic plan, the first step inside the strategic HR
planning technique is to evaluate the cutting-edge HR capacity of the company. The information,
capabilities and capabilities of firm modern staff need to be identified. This could be completed via
developing a capabilities inventory for every employee.
The capabilities stock have to go past the skills wished for the precise position. Listing all abilities
every worker has tested. For example, recreational or volunteer activities might also involve special
capabilities that would be applicable to the employer. Training levels and certificate or extra training
should additionally be protected. An employee's overall performance evaluation shape can be reviewed
to determine if the person is ready and inclined to tackle greater obligation and to look at the
employee's cutting-edge improvement plans.
Forecasting HR necessity: The subsequent step is to forecast HR wishes for the future based
totally on the strategic dreams of the agency. Sensible forecasting of human assets includes estimating
each call for and deliver. Inquiries to be answered encompass:
What number of staff may be required to gain the strategic dreams of the corporation?
What jobs will want to be filled?
What skill units will humans need?
Gap analysis: The following step is to decide the gap between wherein company wants to be in
the future and wherein they now. The gap analysis consists of identifying the quantity of body of
workers and the abilities and abilities required inside the future in comparison to the current situation.
You ought to additionally study all your enterprise's HR control practices to pick out practices that could
be stepped forward or new practices had to guide the corporation's capacity to transport ahead.
Inquiries to be responded encompass:
What new jobs will we need?
What new abilities can be required?
Do our gift personnel have the required talents?
Are employees currently in positions that use their strengths?
Do we have sufficient managers/supervisors?
Are current HR control practices ok for future wishes?
HR techniques to support firm strategies: There are five HR techniques for assembly your agency's
desires in the future:
Restructuring strategies: This process includes several number of things in which organization structure
went change. This process includes change the staff members and the design of a firm. Through which
many strategies went change and business acts become easy to operate.
Education and development techniques: This method include training and development sessions. For
this concern a company have to provide adequate training to their employees and aware about them
such type of opportunities which aid them in their development.

Recruitment techniques: Use many new and appropriate recruitment strategies in which they can select
such employees who have high working nature.
Outsourcing techniques: This includes such external sources who help an organization to perform their
work. They charge some fee for that.
Collaboration techniques: The last strategy include collaborative working which signifies that a firm
should have join their business working with others which lead in attain more and more success for their
business and they can achieve more profit than previously.
TASK 5
Manage business risk and plan to avoid failure
The main reason behind any business failure is its less and less interaction with customer. The
risk rate is high due to high competition at market place. So for this purpose a business have to prepare
a SWOT analysis through which all of its risk factor get identify. Once a firm measure all of its risk factor
then it became easy for that to overcome from all of that. Behind any business failure the main reason is
less identification of risk factor. Although to avoid failure of business following are some of the tips on
which an entity should have to work:
1. Understand customer better than competitors: As per this component this help in better
understand about customer preference and opinion so that all work get done in a proper
manner. Also it help in producing such type of products which attract more and more
customers.
2. Business planning and strategy: Formulate such type of planning and strategies which promote a
firm to attain all of their objective in a systematic manner. A proper formulation of strategy help
an organization to avoid the chances of failure.
3. Take advice from expertise: Always take only such decision which are formulate under the
advice of expertise. It help a business in move forward or positive direction.
TASK 6
Sales required to attain Break Even point
A breakeven point of a business is when there is no profit and no loss is suffering by a firm. It is
very compulsory for a firm to calculate their breakeven point so that they can prevent the chances of
failure. It is a point when total revenue get equal to the total cost and expenses. Knowing the breakeven
point help in deciding the price of goods, determine the sales budget and preparing the business plan.
Hence it is one of the most essential factor through which a business can attain such amount of profit
which is really needed to them. So breakeven point help most for an organization. A new business firm
should have to get aware about this concept which lead in decline the chances of its failure.
The always have to make that much sales which aid them in attain their profit margin. If a
firm really want to sustain in market then they should have to first identify their sales point
according to their customer opinion and needs and demand. So that their working become
effective in nature and they can survive in market for more and more time. Hence a firm should
have to get aware about its breakeven point by proper analysis. Projected financial statement:

Net sales 43000 67900 77300
Cost of goods sold -24100 -24600 -20800
Net operating income 19200 43300 56500
Operating expenses -3500 -3900 -2100
Net income 15700 39400 54400
Beginning bal. 14500 13300 15500
cash inflow 7000 7600 9400
cash outflow -8200 -5400 -6900
Ending bal. 13300 15500 18000
Cash 13300 15500 18000
Account receivable 17600 13800 19800
Inventory 6300 8200 9300
Prepaid ex. 5700 6300 5800
Total current assets 42900 43800 52900
Fixed assets 28000 30500 45000
Total assets 70900 74300 97900
Accounts payable 6400 6200 9800
Short term notes 5700 5500 4800
accrued Liability 2300 2300 3000
Total current liability 14400 14000 17600
Long term debts 22100 23700 22600
Other long term debts 1400 1800 1400
Total long term
liabilities 23500 25500 24000
shareholders’ equity 33000 34800 56300
Total Liability and
equity 70900 74300 97900
CONCLUSION
According to the above mention report it get identify that for any new business set up it is
compulsory to have some strategies on which a firm have to operate their business. This is very essential
function which an entrepreneur have to perform. Management skills is a key element which aid in
successful business enterprise. But there are many risk factor are also includes with that so it is a moral
duty of a leader to adopt such strategy which help in overcoming from all of them. When an industry
attain its breakeven point then they should have to stop their sales and manufacturing. Hence all these
things are helpful for an entrepreneur to get to know for a successful business empire and promote
whole team to attain overall objectives of an organization.

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Online
Business Planning: Building an Effective Business Model. 2017.[Online]. Available through:<
https://www.entrepreneurship.org/articles/2002/05/business-planning-building-an-effective-
business-model>. [Accessed on 19th May 2017].