GOOD BYE TO MY VIEWERS

Hi everyone! This is going to be my farewell post on my blog. I wish you had little understanding on the topics I discussed on my blog and also wish you will all apply the knowledge you have gotten to the environment you found yourselves in where ever in. I thereby thank you all for visiting my blog and dropping your comments as well. GOOD BYE AND MAY GOD BLESS YOU

FRANCHISING

 Hi viewers today we are going to look on a new chapter which is FRANCHISE. This chapter defines franchise, gives examples and finally the advantages.

Definition of Franchise

According to Kuratko (147-148), a franchise could be defined as an arrangement in which the owner of trademark, trade name, or copyright has licensed others to use it in selling goods and services.

Franchise: It can be defined as ”a form of business operation in which a franchisee pays a franchisor to acquire rights to utilize their expertise, knowledge, trade name, and logo as part of a business enterprise” (Graham Harper, 2011).

Who are franchisees and franchisors?

A franchisee is a person or company who purchases a franchise from the franchisor while a franchisor is a person or a company who sells a franchise to a franchisee.

Advantages of franchising

The following are the advantages of franchising:

Training and guidance: A franchisee is not just left by a franchisor to be on his own. A franchisor guides and trains a franchisee on how to manage the purchased franchise. Guide lines and ideas are given to the franchisee by the franchisor which can help the franchisee to build a successful business.

Brand-name appeal:  A franchisee who buys a well-known franchise has a big chance of succeeding. Customers happen to be more interested in products and services from a well-known and popular franchise than a franchise they don’t know of. Therefore, the name and brand of a franchise matters when owning a franchise.

A proven track record: A franchisee can easily determine the possibility of managing a successful business before buying a franchise. The franchisor has to present business records to the franchisee indicating success so that the franchisee can put into analysis before deciding to buy the franchise. A franchise with good record over some years of existence is likely to be more successful.

Financial assistance: Financial aid can be given to a franchisee by the franchisor in case there is limited capital to manage the business either as loan or even personally lending money to the franchisee.

Examples of franchises

As Kuratko indicated in his book, some examples include: RE/MAX, Domino’s Pizza LLC  Inter Continental Hotels, KFC Corp, Pizza Hut, Dunkin’s Donuts and subway.

CREATIVITY AND INNOVATION

 Hi everyone! today i am going to give an explanation on creativity and innovation.
Creativity: is the generation of ideas that results in the improved efficiency and effectiveness of a system.
Innovation: is the process by which entrepreneurs convert opportunities into marketable ideas.

                  SOURCES OF INNOVATIVE IDEAS

TRENDS: This include consideration of societal trends, economic trends and governmental trends and technological trends.
UNEXPECTED OCCURRENCES: This include usage of unexpected incidents such as natural disasters, disease out break and even bombing. e.g bomb detectors can be sold in bomb areas and such idea would be profitable.
INCONGRUITIES: these occur when the gap or difference exists between the expectation and realty. Example is when Fred smith propose the overnight mail delivery he create FedEx.
PROCESS NEED: This involve solving peoples problems and needs in a marketable idea. e.g.Example involve the health food(sugar free drinks), pharmaceutical, medical devices e.t.c.
INDUSTRY AND MARKET CHANGES:These are regular changes caused by consumers behaviours in industries and market. Example is changing of health care industries to home health care.
DEMOGRAPHIC CHANGES: These include example such as Retirement centres for old people.
PERCEPTUAL CHANGES:These include changes that occur in people,to perceive need to be healthy and physically fit. There are need for both healthy food and facilities. Example invention of exercising tools.
KNOWLEDGE BASE CONCEPT:  These involves the use of knowledge  to produce marketable ideas. Example cell phone technology today has advance to include not only phone services but Internet access, music, camera, and some other applications.

                         TYPES OF INNOVATION

 

• INVENTION: Totally new products, service or process. Example Wright Brothers - Airplane
• EXTENSION: Different application of already existing product, service or process.Example Markzuckerberg - Facebook. 
• DUPLICATION: Creative replication of an existing Product. Example Wal-mart= department store and Getway= personal computer. 
• SYNTHESIS: Concepts and factors into a new formulation or use. Example Fred Smith - FedEX.

SOCIAL ENTREPRENEURSHIP

 Social entrepreneurship is a new form of enterpreneurship that exhibits characteristics of nonprofit, governments, and business. It involves traditional entrepreneurship's focus on innovation, risk taking, and large-scale transformation to social problems solving. Social entrepreneurs focuses on the benefits of the public.
But who are social entrepreneurs?
The term social entrepreneur means a person or group of persons who engage in exhibiting social entrepreneurship. Sometimes, social entrepreneurs are called public entrepreneurs, civic entrepreneurs or social innovators. Some activities that characterize social entrepreneur are:
-Adoption of a mission and sustain social value
-Recognition and relentless pursuit of opportunities for social values
-Engagement in continuous innovation and learning
-Action beyond the limited resources at hand
-HIigh sense of accountability.
Steps followed by sicial entrepreneurs are:


 

Social entrepreneurs are very innovative and are important to the environment. They figure out social problems and create solutions to those problems which enables development beyond emergination.

WORLD TOP BILLIONAIRES ( click on the names and see history of these faces)

PRINCE AL-WALEED
Al Waleed Bin Talal (born 7 March 1955) is a Saudi Arabian business tycoon and investor. He is a member of the Saudi royal family.
He is the founder, CEO and 95%-owner of Kingdom Holding Company. As of March 2012, his personal wealth is estimated to be US $18 billion Arabian Business ranks him as the most influential Arab in the world.

PAUL ALLENPaul Gardner Allen (born January 21, 1953) is an American investor and philanthropist best known as the co-founder of Microsoft Corporation along with Bill Gates, a leading developer of personal-computer software systems and applications. He is also the 48th richest person in the world along with Germán Larrea Mota-Velasco (and family) who ranks the same with an estimated wealth of $14.2 billion as of March 2012. He is the founder and chairman of Vulcan Inc., which manages his business and philanthropic efforts. Allen also has a multi-billion dollar investment portfolio which includes technology companies, real estate holdings, and stakes in other technology, media, and content companies. Allen also owns two professional sports teams, the Seattle Seahawks of the National Football League (NFL), and the Portland Trail Blazers of the National Basketball Association (NBA). He is also part-owner of the Seattle Sounders FC, which joined Major League Soccer (MLS) in 2009. Allen's memoir Idea Man: A Memoir by the Cofounder of Microsoft was released on April 19, 2011

 

ROMAN ABRAMOVICH
Roman Arkadyevich Abramovich (born 24 October 1966) is a Russian business tycoon and the main owner of the private investment company Millhouse LLC.
He is known outside Russia as the owner of Chelsea Football Club, an English Premier League football team, and for his wider involvement in European football.
Abramovich is currently the 9th richest person in Russia and the 68th richest person in the world, according to the 2012 Forbes list, with an estimated fortune of US$12.1 billion. After the case with former business partner Boris Berezovsky, Abramovich won the court case worth US$6.5 billion.

 

SHEIKH MUHAMMED BIN RASHID AL MAKTOUM
His Highness Sheikh Mohammed bin Rashid Al Maktoum (born July 15, 1949), is the Prime Minister and Vice President of the United Arab Emirates (UAE), and constitutional monarch of DubaiSheikh Mohammed bin Rashid Al Maktoum has been known for his vast charitable donations. On May 19, 2007, he announced plans to give 10 billion USD to set up the Mohammed bin Rashid Al Maktoum Foundation, an educational foundation in the Middle East. Sheikh Mohammed stated that the money is meant to bridge the knowledge gap between the Arab region and the developed world. The announcement was made at the 2007 World Economic Forum in Jordan. He owns one of the biggest mega ships in the world.
On January 3, 1995, Sheikh Maktoum bin Rashid Al Maktoum signed two decrees that appointed Sheikh Mohammed as Crown Prince of Dubai.
Sheikh Mohammed oversaw the development of numerous projects in Dubai including the creation of the Palm Islands and the luxury Burj Al Arab hotel. He also promoted the construction of Burj Khalifa, which is now the tallest free-standing structure in the world, world's tallest building; its official opening was on Monday, 4 January 2010. During his tenure as Crown Prince he set up Dubai Holding, the debt laden and financially troubled holding company with multi-diversified businesses and investments. He currently owns 99.67% of the company.
After roughly a decade of de facto rulership, he became the Ruler of Dubai on January 4, 2006 upon the death of his elder brother Sheikh Maktoum bin Rashid Al Maktoum. He was also nominated by the President of the UAE, Sheikh Khalifa bin Zayed Al Nahyan, to be the next Prime Minister and Vice President of the UAE on January 5, 2006. The members of the UAE Federal National Council accepted the President's nomination shortly after


 

BILL GATE
William Henry "Bill" Gates III (born October 28, 1955) is an American business magnate and philanthropist. Gates is the former chief executive and current chairman of Microsoft, the world’s largest personal-computer software company, which he co-founded with Paul Allen. He is consistently ranked among the world's wealthiest people and was the wealthiest overall from 1995 to 2009, excluding 2008, when he was ranked third in 2011 he was the wealthiest American and the second wealthiest person. During his career at Microsoft, Gates held the positions of CEO and chief software architect, and remains the largest individual shareholder, with 6.4 percent of the common stock. He has also authored or co-authored several books.
Gates is one of the best-known entrepreneurs of the personal computer revolution. Gates has been criticized for his business tactics, which have been considered anti-competitive, an opinion which has in some cases been upheld by the courts. In the later stages of his career, Gates has pursued a number of philanthropic endeavors, donating large amounts of money to various charitable organizations and scientific research programs through the Bill & Melinda Gates Foundation, established in 2000.
Gates stepped down as chief executive officer of Microsoft in January 2000. He remained as chairman and created the position of chief software architect. In June 2006, Gates announced that he would be transitioning from full-time work at Microsoft to part-time work, and full-time work at the Bill & Melinda Gates Foundation. He gradually transferred his duties to Ray Ozzie, chief software architect, and Craig Mundie, chief research and strategy officer. Gates's last full-time day at Microsoft was June 27, 2008. He remains at Microsoft as non-executive chairman.
 




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Corporate Entrepreneurship

 

Corporate entrepreneurship is the process of profitability and innovation within an organizational setting. Corporate entrepreneurship may be formal or informal activities aimed at creating new businesses in established companies through product and process innovations and market developments. However a corporate entrepreneur is a person or employee who innovates or initiates new ideas within an organization to maximize company profit and increase his/her income. corporate entrepreneurs are also referred to as Intrapreneurs. Unlike entrepreneurs, intrapreneurs don't risk their carrier, family, 

How an Organization can Develop Corporate Entrepreneurship

 

         Management support
         Management of an organization should set parameters for employees to innovate and should recognize those who bring forward the ideas and help in implementing these ideas.

1. Autonomy/Work Discretion
   Workers should be allowed to choose the best time for them to work and should not be criticized when innovating.
2. Reward and Reinforcement
   Rewarding and reinforcing worker who innovate tend to be a motivation for them to create new initiatives. The innovation should be made known to others in the organizational hierarchy, write-ups in website, or local paper and bonuses should be given to innovators.
3. Time Availability
   Management should not give too much work or overburden their employees in order to allow them innovate. The more free time an employee gets, the more he creates new ideas.
4. Organizational Boundaries
   Employees should be encouraged to view their organization in a broad view and not only focus on their line of duty. They should propose new ideas in other areas of the organization which may not necessirily be their aspect of job

                       Example of corporate entrepreneur
Java Programming Language

Intrapreneurs: Patrick Naughton, James Gosling, Bill Joy

Company: Sun Microsystems

Year Launched: 1995

Patrick Naughton, a 25-year-old, up-and-coming programmer, decided to leave the Sun Company, then known for its business workstations because, he thought it was missing out on the fast-growing PC consumer market. But, Naughton was made to stay and Sun set up a group dedicated to breaking into the consumer market. Group member James Gosling created an elegant object-oriented programming language called Oak (renamed Java), which Sun initially hoped would be used by Time Warner in its cable set-top boxes. When that deal fell through, it looked like the language would be abandoned. It took Bill Joy, a Sun co-founder, to champion the project. Joy realized that with the explosion of the Web, a programming language like Oak could be used across different platforms — computers, cell phones, PDAs, and more. Joy also understood that the key to making Java a cross-platform linchpin was to give the language and development kit away. By the end of 1996, Java had nearly 100 licensees and had attracted 6,000 developers.