ENTREPRENEUR OF DEVELOPMENT

TMA 2

Answer ALL questions.

1. Describe the business opportunities that were established by Xhale and Ventagen.

The business opportunity that was established by Xhale and Ventagen is manufacturing
opportunities. Xhale manufacturing HyGreen a hand washing compliance system while
Ventagen manufacturing new type of fabric for hospital scrubs, lab coats, and isolation
gowns. They are supplying their products to places related to heath care such as hospital,
clinic and pharmacy.

2. Examine FOUR (5) general approaches that Xhale and Ventagen use in solving the problem
of health care associated infections.(20 marks)

ANSWER :UNIT 5
3. Explain FOUR (4) environmental trends that are most instrumental for Xhale and Ventagen in
creating business opportunities.

The first environmental trends that are most instrumental for Xhale and Ventagen in
creating business opportunities is Economic Forces which means affect consumer’s level of
disposable income. They should research on ability and preference of consumers to buy their
products. The price of their products must be rational with the economic power of their
customers. Otherwise, only certain people will buy their product which may lead to slow
business growth.

The second environmental trend is Social Force. Changes in social trends provide
openings for new businesses on an ongoing basis. The growth in health care business, for
example, isn’t happening because people are very sick. It’s happening because people are
become more aware bout their health.

The third environmental trend is Technological Advance. given the rapid pace of
technological change, it is vital that entrepreneurs keep on top of how new technologies affect
current and future business opportunities. Once a technology is created, products emerge to
advance it. Xhale and Ventagen used latest technology in their products which convince more
customers to buy their products.

The forth environmental trend is Political and Regulatory Changes which provide the
basis for new business opportunities. Our current law in health department and stable political
environment gives good opportunity to entrepreneurs to invest in medical field. Entrepreneurs
are given opportunity to provide health services to public. Xhale and Ventagen used this
opportunity top develop their business.
Section B

Question 1

a. Describe the concept of management in the context of entrepreneurship.

Management in the context of entrepreneurship can be described as the entrepreneurs interested

in organizing, owning, managing and assuming the risks of a business. It also can be described as
assisting organizations in developing new business opportunities. Curriculum is designed to
range from introductory fundamentals through the development and implementation of real
business opportunities.

b. Explain the importance of applying for a business license and give examples of some of
the licenses that an entrepreneur may need to run their business legally.

First of all we need to apply for business license to show that we are running a business
legally. By having a business license it tells the community that you are taking your business
seriously. Moving a business without proper documents may lead to unnecessary problems when
there is any legal issue. We need to apply business license is so that we are protected in the event
that business is under legal scrutiny. When there is a legal problem happen we would want the
license to offer protection to show a separation of your personal assets. At the same time if we
avoid getting a business license there could be a fine from any of the forms of government that
you may operate your business in.

Examples of some of the licenses that an entrepreneur may need to run their business
legally is Trader’s license which gives permission to operate businesses in specific areas and
permit trading in specific types of business. Liquor license must be obtained if the business will
be involved in the sale of alcoholic beverages. Tour Guiding License that allows individuals to
organize and conduct tours in the region. Vehicle Operating License is essential to operate
special equipment, buses, tractor trailers and others.
Question 2

a. Identify the advantages of an online business.

E-commerce, also known as electronic commerce or internet commerce, refers to the process
of buying and selling of things or services using the internet. They also transfer money and
details to continue the transaction using internet. E-commerce is often referring to the sale of
solid products online (Zwass 2010). Apart from products selling, any kind of online
transaction via internet can be referred as e-commerce. Nowadays, entrepreneur able to gain
many benefits from e-commerce.

The first benefit of e-commerce for entrepreneur is it just required low operational cost. With
the help of e-commerce, entrepreneurs don’t need to build physical stores at all the places
where they want to sell their products which involving lot of planning. They don’t need to buy
or rent buildings; get furniture to set office and show room; and hire workers to manage the
store. A single e-store will do all these things for them. This will keep the coast to operate
their business in lower side (Tsang 2004). For example, to sell an item online we just need to
display some pictures with its detail in “Mudah.Com”. People from all over the places will
come to our e-store to get our items from there.

E-commerce helps the entrepreneurs to operate 24 hours a day and 365 days in a year. They
no need to close the shop for lunch break or fix any working hour. Their business will operate
without any break which is nearly impossible in physical store. By operating 24 hours a day,
their business will reach people across the globe and attract customers across different time
zones (Zwass 2010). For example when we advertise a product in lazada.com, a customer
from New York will able to order our product even though at that time we are sleeping here.
Entrepreneur just needs to spend some time to check all the orders and arrange the
transportation.

E-commerce also helps in increased business reach. The biggest advantage of e-commerce is
it takes our business to customers which is not possible for us to present physically
everywhere (Kshetri 2002). We not need to travel to meet customers; explain to them about
our product or service; convince them to buy our product. By having online store, customers
will visit our site, read the description given there and order the product. At the other side we
manage all the things from single location.

Reputation is something very important in business. E-commerce helps entrepreneurs to build

reputation in online. When we do offline business, there is no platform to our customers show
their appreciation apart from verbal sharing. It is hard for us to influence new customers with
just having verbal appreciation. With e-commerce, our customers can share their appreciation
over social media profile of the business (Claycomb 2005). Apart from that e-store such as
Lazada, Shopee and Trivago having sorting facility based on customers review which is
publically available for everyone to see. When we give good service and get good review, it
will be easy to get new customers.

E-commerce help entrepreneurs to increase brand recall. Even though e-commerce is making
our work easy and reduce our expenses, we still need to do some analysis to increase business
awareness. Entrepreneurs need to identify who are their highest quality customers. They
required keeping a track of their customer's purchase frequency, the value of the order and
how often do they shop. This data can be collected easily with e-commerce. Apart from that
there will be customers who will state what they liked and disliked in our product and service
in review column. Based on all the details we can plan proper strategy to develop our business
(Gibbs 2003).

As conclusion, e-Commerse has lot of advantages. It saves time and energy, and also you are
able to sell your product or service to a huge audience all over the world with just a mouse
click. Entrepreneurs should make use these advantages to become successful Entrepreneurs
b. Explain any THREE (3) ways an entrepreneur avoids pitfalls.

Pitfalls in business are common among new entrepreneurs. There are many reason lead to
this problem. At the same time there are ways that we can apply to avoid pitfalls.

The first and most important way is marketing research. Marketing research consists of
gathering data about people or companies systematically and then analyzing it to better
understand what that group of people needs. The results of market research, which are usually
summarized in a report, are then used to help business owners make more informed decisions
about the company’s strategies, operations, and potential customer base. By having these kinds
of details, we can reduce risk in our business.

Second way is business plan. When we fail to plan; we plan to fail. Without proper
planning we cannot run a business smoothly. There will be various types of challenges in
business. We must have proper planning to face those situations. We must have system
operational procedures to handle problems. Apart from that we also should have alternative plan
to face unexpected problems. For example, if we face problem in getting materials from our
regular supplier, we should know another supplier who able to deliver the material on time.
Otherwise our work will be pending due to lack of material which might cause lot of loses.

Finally it is important to choose and appoint good staff. A bad performing employee will
negatively impact the other employees they are around, could drive down sales, and could cost a
business a lot of unnecessary expenses. By hiring the right person – the business will move in a
positive direction and will become more successful in the future. Do not hesitate to eliminate
negative workers. At the same time we must organize development programs for our staff to
develop themselves where it might help in development of our business.