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BUSINESS STRATEGY AND ENTREPRENEURSHIP

Business Strategy and Entrepreneurship

Equivalent QCF level: Level 5

Credit Value: 45

Learning time (hours): 450

UNIT PURPOSE

This unit will integrate knowledge surrounding entrepreneurship and the factors which affect the general business behaviour in a constantly changing global environment. This involves developing an understanding of the key elements of designing and running the entrepreneurial organisation.

UNIT INTRODUCTION

This unit will involve the following topics relating to entrepreneurship: managing people and other stakeholders; raising finance and managing money; creating a profile and generating awareness; and selling and taking either products or services to market.

Learners have the opportunity to explore the processes associated with entrepreneurial management including: creativity and innovation; managing and leading an entrepreneurial venture; networking and building relationships critical to the development of the organisation; sense-making and sense-giving related to the competitive positioning of the organisation; commercialising ideas within different entrepreneurial contexts including protecting intellectual property; and the abilities and skills required to sustain and grow an entrepreneurial organisation.

Careful attention will be given to the environment in which enterprising individuals and organisations operate and the cultures and societies which support/inhibit enterprise and entrepreneurship. In addition, the unit will consider the case for, and role of, public support in promoting entrepreneurship and variations in patterns of entrepreneurial activity within different international contexts.

Furthermore, this unit will discuss the nature of structural change in an economy and the factors which have accelerated change such as productivity issues and the importance of management performance. Moreover, the reasons for the growth of firms and how such corporate growth often leads to Foreign Direct Investment (FDI) and multinational activity will be investigated as well. Finally, careful attention will be given to the analysis of company performance using economic accounting ratios, and an assessment of effects on various government micro- and macroeconomic policies and regulatory requirements on companies will be conducted.

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BUSINESS STRATEGY AND ENTREPRENEURSHIP

Business Strategy and Entrepreneurship

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LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT

To pass this unit, the learner must generate evidence that demonstrates all learning outcomes have been met through the achievement of all the unit’s

assessment criteria.

Learning outcomes On completion of this unit, the learner will:

Assessment criteria On completion of this unit, the learner can: Content

01 Understand the key stages in developing an entrepreneurial venture, from idea generation to commercialisation

1.1 Describe the various forms of entrepreneurial ventures

1.2 Define the stages in developing a new entrepreneurial venture and consider their importance towards success

1.3 Develop a new entrepreneurial venture and provide relevant recommendations

Definitions of the concepts: The concepts such as enterprise and entrepreneurship should be clearly defined

Stages of developing a new venture: Idea generation, opportunity evaluation, new product/service planning, marketing, launch, implementation, growth, commercialisation

Different forms of entrepreneurial ventures: Small business entrepreneurship; Scalable Start-up Entrepreneurship (e.g. Silicon Valley entrepreneurs); Large company entrepreneurship; social entrepreneurship

Other factors to consider when developing entrepreneurship: The entrepreneurial society and cultures. The role of resources, productivity, and managerial competence in corporate development, government assistance to entrepreneurs

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LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT

02 Understand the challenges and opportunities associated with designing and running an entrepreneurial venture

2.1 Analyse the possible challenges and opportunities for a particular entrepreneurial venture

2.2 Recommend and implement relevant strategies to overcome such challenges and exploit opportunities

Objectives of firms: profit, sales and growth motivations: corporate social responsibilities

Areas to consider when designing and running the entrepreneurial organisation: Market research, marketing, business development, forecasting, sales planning, R&D management, operations management, people management, process and infrastructure, budgeting , financing pricing, advertising and product development, the role of corporate alliances, etc.

Challenges in designing and running an entrepreneurial venture: Business plan, marketing, branding, finance and investing decision, IT sourcing, HR issues, CRM

Opportunities in designing and running an entrepreneurial venture: Social media, technology, government support

Effective strategies: Managing stakeholders through networking and relationship building; sustaining and growing the entrepreneurial organisation and creating value, etc.

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LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT

03 Know how the personal traits and behaviours required to design and run an entrepreneurial venture

3.1 Describe the personal traits and behaviours required to design and run an entrepreneurial venture effectively

3.2 Explain the importance of each trait to business success

3.3 Advise how an entrepreneur can evaluate their own entrepreneurial skills and enhance their abilities

Enterprising and entrepreneurial behaviours: Opportunity seeking, taking initiatives, risk measurement and management, coping with uncertainty, social networking, etc.

Entrepreneurial Skills: ideas generation and evaluation, problem solving, negotiating, persuasiveness, creativity, strategic thinking, holistic management, etc.

Entrepreneurial Traits: Commitment, self-confidence, courageous, proactive, leadership skills, results oriented, team building, flexible and empathy

Factors that affect entrepreneurial behaviour: innovation, work experience, role model and support, culture, childhood and other influences such as education, age, gender

04 Be able to appraise own knowledge, learning and understanding of entrepreneurial skills

4.1 Evaluate your own weaknesses and strengths as an entrepreneur

4.2 Describe measures and procedures for the development of own personal traits and entrepreneurial characteristics

Personal reflection: Reflect on the gains made from the decisions made as an entrepreneur. Plan a course of action to maintain reflection on your personal and entrepreneurial effectiveness within your own organisation. Creative thinking and creativity Means to improve personal understanding and entrepreneurial characteristics: attend seminars, socialise with good entrepreneurs, research entrepreneurship, and join relevant organisations

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LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT

05 Be able to assess the factors which affect general business behaviour in a constantly changing global environment

5.1 Identify relevant global business trends

5.2 Understand how such global factors would affect a business

5.3 Identify and discuss the implementation of strategies to manage the changes in global trends while considering:

Business opportunities

Business threats

Global trends: Demographics shifts, global power structure, emerging markets via disruptive innovation, outsourcing, m-commerce and e-commerce

Global business trends: The growth of companies and the role of mergers and acquisitions, the role of multinational activity and the flows of Foreign Direct Investment (FDI)

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LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT

06 Understand the principle of Government policy decisions and their impact on the business environment

6.1 Explain the role and importance of Government regulations for a particular industry and the effect on a business

6.2 Analyse and discuss implementation of business strategies to manage the impact of Government policy decisions

The role of government: employee protection, customer protection, environment protection, taxation, investor protection, contract enforcement

Macroeconomic policies: (Demand management policies) fiscal and monetary policies

Micro economic policies: (Supply side policies) Minimum wage, tax credit, specific industry regulations, subsidies

Impact of government policies on businesses: impact on costs, revenue, legal requirements, resources permits, HR aspects, health and safety policies, minimum wages

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LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT

07 Be able to apply economic analysis to current business related controversies and topics

7.1 Identify key economic indicators and trends

7.2 Analyse how economic indicators would impact the business including the strengths it poses

7.3 Develop recommendation for strategies to manage the impact of economic factors and exploit the opportunities

Economic indicators: This includes in depth analysis of the trends in fundamental economic indicators such as income, inflation, recession, interest rate and exchange rate

Economic analyses: how the trends in economic indicators have affected the business should be analysed via economic models such as AS-AD models, micro economic models, etc.

08 Know how to interpret information from a range of economic and business sources

8.1 Identify various sources from which a business can gain required information for decision making that relate to the following:

Marketing strategy

Business and finance performance

8.2 Analyse a business’s performance and

compare the findings with others in the same industry

Corporate performance and financial measurement: economic and accounting ratios and company performance. This should utilise profitability, liquidity, solvency and efficiency ratios, competitor analyses, financial indicators, etc.

Information required in developing a marketing strategy: Industry trends, rival information, resource requirement, financial markets, government regulations, demographic information, corporate financial performance indicators, internal operations related data, etc.

Various sources of information: Corporate annual report, market analyses, stock market data, governmental publications

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GUIDANCE FOR TUTORS

Business Strategy and Entrepreneurship

DELIVERY & ASSESSMENT

It is important that tutors use a range of teaching and guidance methods to ensure that their learners will meet the intended learning outcomes for this unit. This would include participating or revising lectures/notes, attending webinars, workshops, individual/group assessments and mock/draft feedback for assignments. However, learners should always be encouraged to participate in independent learning using the resources on the IMSS, e-library and Mintel reports. Learners need to use analytical thinking, participative approaches and investigative mindsets in order to be able to enhance their learning experience through reflection of theory in conjunction with their own experience. It is important to plan the delivery of the unit to ensure that learners have enough time to undertake the relevant research needed to meet the learning outcomes and to facilitate self-learning.

This unit will provide a blended learning experience using customised software and associated materials which will help develop some of the key knowledge and skills involved in business start-up activity and associated templates which can constitute part of the submitted assessment.

Learning outcomes 1 and 2 involve the design, development and running of, a new entrepreneurial venture. The tutor should introduce the stages of starting a new venture. This could be done by effective class room discussions with the learners, rather than merely listing the stages. The factors that should be covered when developing a new venture (and its planning and related challenges and opportunities for a new venture) should be elaborated with the use practical examples, mini cases and scenarios. It is important that theoretical concepts of strategic management and planning are utilised: e.g. business plan, market research, business functions, etc.

Learning outcomes 3 and 4 focus on the personal traits and behaviours of running an entrepreneurial venture. The leadership, attitude and other characteristics required to run the business successfully should be covered. The learners should be given scenarios to understand the importance of having such qualities for business excellence and to face challenges effectively. The tutor should also direct the learners to analyse their own level of competency to become an effective entrepreneur and to identify activities to develop their personal skills.

Learning outcomes 5 and 6 cover the external factors that impact a business. The contemporary global trends should be inquired from the learners based on their own understanding and knowledge. The tutor should direct the learners to identify how these factors would impact upon a business. Effective classroom discussion and real examples should be utilised to determine the best ways in which to cope with global trends. The government’s role and importance to the economy and the impact of government policies on businesses should also be discussed, along with ways and means to manage the government’s impact.

Learning outcomes 7 and 8 deliberately focus on economic, financial and business analysis and related activities. The main economic indicators should be introduced to the learners. They should be facilitated to use economic models to analyse the impact of these to a business. Strategies to manage the impact and to exploit opportunities should be covered. The tutor should direct the learners to utilise information from various sources to analyse the performance of a business. The learners can draw on their prior knowledge on financial accounting ratios and analyses.

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GUIDANCE FOR TUTORS

Business Strategy and Entrepreneurship

OUTLINE LEARNING PLAN

The following outlined learning plan can be used as a guidance document in conjunction with the unit assessment. It is simply a way in which this unit can be delivered.

TOPIC AND SUGGESTED ASSIGNMENTS/ACTIVITIES/ASSESSMENT

Introduction to unit and programme of learning

Tutor discussion on the theoretical models and concepts relating to developing Entrepreneurship

Learner input on how personal traits and behaviours can be harnessed to design and run an entrepreneurial venture

Learner research on designing entrepreneurial ventures to aid with Assignment 1

Tutor input on the factors that affect business behaviour globally

Learner input on the complex nature of policy decisions which often confront businesses and Governments

Learner research on HR related concepts contributing to Assignment 2

Tutor input on the economic analysis of current business related controversies and topics

Learner to interpret information from a range of economic and business sources.

Learner research on economic issues and topics to develop Assignment 3

Review of unit and programme of assignments

PROGRAMME OF SUGGESTED ASSESSMENT/ASSIGNMENTS

The following table illustrates the respective assessments for the unit and identifies the corresponding assessment criteria.

Assessment Criteria covered

Assignment title

Scenario Assessment method

1.1, 1.2, 1.3,

2.1, 2.2, 3.1,

3.2, 3.3

Assignment 1 An explanation of each stage of the process involved in the new entrepreneurial venture from idea generation to implementation, while identifying of the possible challenges and opportunities that you may face when going through the above stages

Report

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GUIDANCE FOR TUTORS

Business Strategy and Entrepreneurship

PROGRAMME OF SUGGESTED ASSESSMENT/ASSIGNMENTS

Assessment Criteria covered

Assignment title

Scenario Assessment method

1.1, 1.2, 1.3,

2.1, 2.2, 3.1,

3.2, 3.3

Assignment 1 – Cont.

An assessment of Feasibility, Profitability & Resource Allocation of the venture using Financial, Management & Cost Accountancy principles

Report

3.3, 3.2, 3.3,

4.1, 4.2, 5.1,

5.2, 5.3, 6.1,

6.2

Assignment 2 Identify and assess the changing elements of the global environment in relation to the industry you intend entering and discuss how it can impact the new entrepreneurial business venture and its industry related behaviour in terms of opportunities and threats they (changes) may pose

Assess how the government can impact the policies of the new venture and recommend ways to overcome any disadvantages identified

Identify and explain key personal traits & behaviours of entrepreneurs which are required to design and run entrepreneurial ventures successfully in challenging conditions with adequate emphasis on how these traits and behavioural patterns can be used to overcome the threats highlighted in the sections above

Report

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GUIDANCE FOR TUTORS

Business Strategy and Entrepreneurship

PROGRAMME OF SUGGESTED ASSESSMENT/ASSIGNMENTS

Assessment Criteria covered

Assignment title

Scenario Assessment method

7.1, 7.2, 7.3,

8.1, 8.2

Assignment 3 Candidates should present their analysis focusing on the following elements:

1 Income 2 Inflation 3 Recession 4 Interest Rate 5 Exchange Rate

Candidates are also required to refer to a wide range of economic and business

Report

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RESOURCES

Business Strategy and Entrepreneurship

TEXTBOOKS

Ashton, R. (2007) The Entrepreneur's Book of Checklists, Prentice Hall

Carter, S and Jones-Evans, D. (2006) Enterprise and Small Business: Principles, Policy and Practice, 3rd Ed Financial Times, Prentice Hall.

Deakins, D. and Freel, M. (2005) Entrepreneurship and Small Firms 4th ed. McGraw-Hill

Timmons, J. and Spinelli, S. (2008) New Venture Creation: Entrepreneurship for the 21st Century, McGraw-Hill

Wickham, A. (2006) Strategic Entrepreneurship, 3rd Ed.

Johnson, Scholes and Whittington, Exploring Corporate Strategy :texts and cases (various editions)

JOURNALS

Strategic Entrepreneurship Journal

International Journal of Entrepreneurship and Small Business

Journal of Small Business and Enterprise Development

Journal of Innovation and Entrepreneurship

WEBSITES

Entrepreneurship.org http://entrepreneurship.org/

Forbes http://www.forbes.com

Changing minds http://changingminds.org/

Mind tools http://www.mindtools.com/