ENTREPRENEURSHIP 1

CASE

ROXANNE QUIMBY

Members:
Ivone Mikewaty Clarissa Winardi Anna Berliana Clarissa Kelly Santana (01120080070) (01120080075) (01120080086) (01120080166) (01120080309)

UNIVERSITAS PELITA HARAPAN

LIPPO VILLAGE, TANGERANG BANTEN 2010

Entrepreneurship 1

Case: Roxanne Quimby

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1. Who can be an entrepreneur? G There are everal Hefinitions of an entrepreneur. Joseph Schumpeter gave the modern definition of an entrepreneur the person who destroys the existing economic order by introducing new products and services, by introducing new methods of p roduction, by creating new forms of IPPQ ) states that an entrepreneur is a organization, or by exploiting new raw materials. Sullivan ( person who has possession of a new enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome. The other academic defines an entrepreneur as the person who perceives an opportunity and creates an organiz ation to pursue it IPPS I , p. ). (Rygrav e and Zacharakis, Tv eryone can be entrepreneurs if they have some characteristics, for instance are what David UcClelland stated: they are moderate risk takers and have a higher need for achievement. Another characteIPPS ristic is th ey have aP higher internal locus of control of their own fate (Rygrav e VI , p. ). The W Ds, the most important characteristics of a successful and Zacharakis, entrepreneur, include dream, decisiveness, doers, determination, dedication, devotion, details, IPPS VQ , p. ). destiny, dollars, and distribute ( Rygrave and Zacharakis, Research indicates that most successful entrepreneurs share certain personal attributes, including creativity, dedication, determination, flexibility, leadership , passion, sel f-confidence, smarts (www.america.gov, n.d.). Another academic states that a successful entrepreneur has characteristics as follows: self control, sense of urgency, comprehensive awareness, realism, conceptual ability , status requirements, interpersonal relationships, and emotional stability (www.businesstow n.com, n.d.). 2. What are the risks, rewards, and trade -offs of a lifestyle business vs. a high potential business one that will exceed $5 million in sales and grow substantially? Lifestyle Business Lifestyle business is one where the entrepreneur seeks to generate an "a dequate" income while living where s/he wants, doing w hat s/he loves, or having the flexibility to be around (Sullivan, XYY `). Lifestyle entrepreneurs as a specific breed of business owner who is neither a financially independent hobbyist nor wealth-seeking empire-builder (aetzel, n.d.). According to the bational Commission on cntrepreneurship, at any given time, d% to e% of the fnited States adult population is involved in planning for a new business. gost of these aspiring entrepreneurs, they say, will start a Lifestyle husiness" primarily providing employment to themselves and their families. Rewards: Able to control the company, able to continue to do w hat the ow ner loves without having too much risk, have a positive cash flow from the ea rly going, ow ner only has to report to himself, have a relatively constant cash flow, able to take time off whenever the owner wants (www.zeromillion.com, n.d.). Risks: bot able to hire top talent (as talented people usually av oid companies that ov er no stock options and only limited opportunities for personal grow th), not hav ing the chance for huge gains
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Entrepreneurship 1

Case: Roxanne Quimby

(www.zeromillion.com, n.d.). Trade-off: There is a lot of freedom, but the company cannot expect to grow bigger.

High-Potential Business These are companies focused on new markets with explosive potential.iften technology -driven, these ventures require heavy upfront cash investment to quickly gain decisive advantages, so professional investorsparticularly venture capital firms usually provide funding. High -potential ventures strive to achieve lasting economic and social impact, and aspire to achieve IPOs, or initial public offerings (getting listed on a stock exchange so they can sell shares to the public) pqqr (Tim, ). Rewards: Hav e the possibility for large returns on investment, the ability to attract outside investment, and the ability to build a great team who will work to make the company succeed (www.zeromillion.com, n.d.). Risks: The usual necessity for the company to take on large amounts of debt or lose significant amounts of equity, a loss of control as investors and employees dilute the founders equity, and the long wait to reach positive cash flow (www.zeromillion.com , n.d.). Trade-off: The company can grow bigger, but has no freedom because it depends on the shareholders visions too.

surts sees used to be a lifestyle business when it operated in tpvq aine. sut aftepqq r moved to uorth million in w (surts sees Carolina, it became a high-potential business with sales over $ Official xeb Site, n.d.).
3. What is the difference between an idea and an opportunity? For whom? What can be learned from Exhibits C and D? yy According to Oxford Dictionary ( ), idea is plan, thought, or picture in the mind; while opportunity is chance to do something. So, idea is something inside the mind, plan tha t has not been implemented yet; w hile oppo rtunity is the time when idea is able to be implemented into oving real action.y from an idea to a viable opportunity is an iterativ e process (ygrave and Zacharakis, , p. ). Idea is a flash of inspiration. Op portunities are ideas that hav e been through an analytical wringer. Take an idea, punch it, pull it, ask the right questions, and if it holds up it's an y ).In analyzing business opportunity: a chance to build a viable venture ( www.nenonline .org, ideas, someone must be able to pass them through a test to determine if they truly are valid opportunities. All of the ideas must hav e a demonstrated need, ready market, and ability to provide a solid return on investment (Allis, n.d.). Idea belongs to every one. S omeone who always talks about plenty of ideas but has no y , p. ). However, to action is called a cocktail -party entrepreneur (ygrave and Zacharakis, become a y true ent r ep r ene ur r eq u i r es c ontin ual es cala tion of c o mm it m ent (ygrave and , p. ). A true entrepreneur can capture an opportunity and implement the idea. Zacharakis, There are five major areas to evaluate whether an idea is t ruly an opportunity: customers, competitors, supp liers a nd vendors, government, and the broader global environment (ygrav e y and Zacharakis, , p. ).
From xhibits C and D, we can learn that toilet preparations are a growing business.

4. Why has the company succeeded so far? Burts Bees most popular product is lip balm. It also sells candle, handmade crafts, and other beeswax-based products. The deterioration of the natural environment is a major global problem,
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Case: Roxanne Quimby

great opportunities await companies who ca n crea te solutions that reconcile prosperity with p. ). That is why Burts Bess environmental environmental protection (Kotler and Keller, ethic by excluding any chemical preservatives and using primarily all natural ingredients in its skincare products becomes the first reason it has succeeded so far; this is appropriate to Sheth theory ( ) that companies w hich innovate solutions and values in a socially responsible way are the most likely to succeed. Another reason is it sells the products in urban areas w here the people cannot step out the front door and get freshness or simplicity. Burts Bees products are dow n -home and basic w hich speak to everyone needs of unconscious desire for more simplicity. It also has succeeded as uimby has the motivation to establish a company of her own by using her knowledge of past experiences. uimby also has a vision and she really know s what she wants and what she is passionate for. Because entrepreneurs have to believe in what they are doing before they can convince others how great the vision is. The important thing w hen you found something innovative is to share it with someone you can trust, someone who has the qualifications necessary to help move your idea forwa rd (arlow, n.d.). uimby knows what she had to do; she thought of something innovative such as making candles out of beeswax and shared it with Burt. According to uimby herself, the company has succeeded so far because they hav e the commitment to delighti ng the consumers, hard w ork, and a bit of luck (Riccio and Rowland, n.d.)

5. What should Roxanne and Burt do, and why? th Carolina because there is a large percentage of the countrys They should stay in or population lives within a -hour drive of orth Carolina. There are also more supply of skilled labor in orth Carolina than in aine. oving back to aine is not a good decision because it has high transport costs, high payroll taxes, and lack of expertise. In addition, if they keep the company in aine, they will stunt its growth. orth Carolina is already the place of several other internationall y-known personal care companies, so it is proven that orth Carolina is a good place for such a business (Burts Bees Official eb Site, n.d.). Burts Bees also had promising leads in orth Carolina on a plant manager d from Revlon and a sales and marketing manager with experience at Lancme, ogue, and d ictorias Secret. euimbys expertise deficit could largely be solved with these tw o experts.

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Entrepreneurship 1

Case: Roxanne Quimby

Reference
Bygrave,

ghhi f. and Zacharakis, A. ( ),

Entrepreneurship , John

jiley & Sons

kquity Business vs. Lifestyle Business lary Sullivan

(http://www.allbusiness.com/business -planning -structures/starting -a-business/3878259-1.html) 2007

kntrepreneurship: A Primer Tim (http://www.soulshelter.com/2008/05/21/entrepreneurship -a-primer/ ) 2008 mkm Online

Ideas & opportunity:

nhat Are Ideas & Opportunities?

(http://www.nenonline.org/ jsp/idea_opportunity/idea_opportunity_definition.jsp ) 2009

Interview with Burts Bees Founder, Roxanne Heather Riccio and Hilary Rowland (http://hilary.com/career/burtsbees.html ) n.d.

ouimby

Burts Bee Official neb Site (http://global.burtsbees.com)

Oxford Dictionary (2002)

Kotler and Keller, 2009 Sheth 2007

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