Introduction to Entrepreneurship and Acquiring a Business
The word entrepreneurship is defined as a process of designing or running a new business. The persons who offer new services and product are called as entrepreneurs. To become an entrepreneur it is not necessary to develop a new idea or building a new company. A new business can be started through outright purchase or by buying franchises of a business. This report will analyse to acquire an existing business through buying franchise of TESCO plc in Brazil. TESCO is UK based on the retail company which offers different types of products and services in UK and Europe but Brazil is still not aware of this brand. It also analyses different concepts related to entrepreneurship and give recommendat
Acquiring an existing business through buying a franchise
TESCO PLC is UK's renowned retail store brand. It has various branches in Europe and Asia but Brazil is still not aware about company's products and services. Brazilian markets are emerging with plenty of opportunities for both existing businesses and entrepreneurs. When a person like an entrepreneur wishes to buy licensed privileges for doing a business in some foreign markets then, it is known as franchising. It is a form of business expansion which involves greater marketing and merchandising of a brand. Growing demands have led to individuals becoming more interested in bringing foreign brands to their country. This not only helps in developing relations directly with multinational giants but also helps in running self sufficient business without many investments.
The benefits to buy franchises of TESCO are that it is well established business that serves numbers of services or products to its customers in UK. Company's trademarks save cost of business owner of creating advertising. Products sold by organization are already in demand in market and millions of consumers are usinf goods sold be entity . For company's owners supervisions and consulting is always available. The retail company offers uniform packaging to everywhere. It also reduces risk of business and provides profits for every business operations. For an individual, it is great opportunity to become entrepreneur through buying franchises. However, it is not for everyone to open a business through franchises. Owner does not have any control on its business and individuals have to make a binding contract with company. If market for franchisors is not responsive then it will also affect business of an individual. So franchises business contains high risk factors for firms.
Concept of entrepreneurship
Businesses are owned by either one single person or a group of individuals. When a person decides to follow his instincts and works all by himself to transform his idea into a business then, he/she is said to be an entrepreneur. Basically, it is a concept of starting a business on your own rather than working for someone else. Entrepreneurship involves risk and efforts with no compromise in hard work. Vision is significant in working of every business. If a person proceeds to work without any interest or vision then, success rate will be less. In fact, business venture may even fail as a result of aimless path.
Some special qualities that characterise a person as a legitimate entrepreneur are vision, skills, interest levels and most important confident. Markets are full of competition. It requires courage and confidence to implement a completely new strategy and idea for earning profits. Chances of functioning totally depend on delegation skills of the entrepreneur. Being a highly risk oriented work, resources that majorly fall for success of these ventures is time and money. Risk and money are directly proportional. When more money is invested then more risk is involved. Franchises method can bea dopted and existing business activities can be expanded in new market area. The only thing that is required for setting a franchise is money and human resource. Capitals are required for purchasing license, land, rights and other physical requirements.
Franchise entrepreneurship is easy and smart because it is investment in already successful business plans. Risks are least involved in this sort of businesses. People are willing to purchase new products and explore new companies only when cost effectiveness is achieved. Consumers go crazy for innovative and modified approaches of marketing and product manufacturing. Innovation is the key strength of entrepreneurship. Every prospective entrepreneur must be analytical and innovative in his strategies.
Description of industry and entering market
Over the past few years, retail industry of Brazil is growing very fast. Economic conditions of country are favourable for the retail industry. Consumer’s purchasing power has increased due to stable macroeconomic factors. The country cosmetics and personal care industry is growing and it is giving impressive performance. Proper distribution challel can be developed and it will support for sellling goods to large number of consumers.. Further, the retail industry is becoming the world's largest grocery retailers.
The major competitors of TESCO in Brazilian market are WAL -MART. After entering of Wal- Mart in Brazilian market, many other supermarkets had to shut their business. The company offered the best product to their customers as according to their preferences. Wal -Mart uses aggressive price policy offers low cost products to their customers which also affect business of other firm. Buying behaviour shown by consumers also gives impact on the overall operational activities that are performed in the entity.
There are many other companies which are doing business in Brazil but there is no retail company which is UK based. The rising in globalization also affects Brazil and its business. It is great opportunities to open business from franchises of TESCO as there is no British food retail company in new market area. The general merchandise and fashion sector is also growing in the country along with its economy. There are also some hurdles available in market such as high tax rate charged by government and lack of infrastructure investment in country had slowed down the growth of business. There is also lack or awareness about the TESCO in Brazil and high competition from other brands also affects its business. They aslo need to focus on the present economic conditions of country which is favourable for retail businesses.
Reasons for becoming an entrepreneur
There are several reasons for becoming an entrepreneur. Some of them are discussed below...
Working as an entrepreneur gives more chances to capture business opportunities. Individuals are not bound to only specific area of business. They can grab more opportunities to develop their creativity in their own ways. To work in corporate sometimes become frustrating for the employees. In corporate, there are many barriers that stop development of the individual.
For being an entrepreneur, individuals gets enough freedom to balance their life. It also gives flexibility to an individual towards its working hours. They are not bound to work only few hours. Freedom gives an opportunity to employees to work on their innovations. They can think about new technology as well as ideas.
For being an entrepreneur individuals get enough freedom to balance their life. It also gives flexibility to an individual towards its working hours. They are not bound to work only few hours. Freedom gives an opportunity to employees to work on their innovations. They can think about new technology and ideas.
Offer advance learning
To work in corporate culture can stop learning opportunities for employees. The main advantage of entrepreneur is never stopped learning and their knowledge is always increases. The learning opportunities of an individual not limited to their organization. Entrepreneurship provide opportunities for learn more new things over time.
The biggest advantages of entrepreneurship is earning is not limited. Earning of individuals is grown as business grow. Entrepreneurship is self motivated and build profits for business. The potential of earnings is totally depended on capabilities of individuals. In job earning potential is always limited and depend on job promotions.
Entrepreneur are not only changes their lives but also changes other world too. Entrepreneur gives opportunity to think different and their innovations can changes other lives too. By innovations they try to overcome deficiencies that affects live of humans.
Positioning of product and resourcing options
There are numbers of ways of positioning of brand which based on different approaches. The major categories of positioning of products are as follows...
By product attribute
A product attribute defines benefits of products. This positioning is focuses on benefits of products and their relative competitive offerings.
This positioning focus on user their problems. By highlighting problems of user they suggest which product is best to use as per their requirements. This type of approaches aslo contribute person self identity.
By product class
This positing strategy highlights a leadership positions in market. This strategy defies only for this product which are best in their fields.
In this approach a firm competitive directly with their competitors on the basis of their products.
With these approaches' product is positing according to consumers. This approach defines the best solution for particular tasks or use.
Quality or value
Some business firm positions their products on the basis of their quality and their significant value. For opening a business in Brazil it can use combinations of above strategies. The owner of company can adopt more than two positioning approaches for their business expansions. They can apply by user positioning approaches with against competition approach. By using these both approaches company attracts more customers in their business and also give competition to their competitors. These approaches have capabilities to target the market in Brazil and also give cost effective benefits. This positioning approach help to organization for better targets segments. The positioning and targeting business approaches help to company to capture markets in Brazil and also allow to company to increases it sales.
Acquiring business thorough franchises may be a good idea. In Brazil there are only few supermarkets are available. By taking franchise of TESCO can benefited to an individual. In franchise business decisions are taken by members of the network. To acquire business from franchise can be benefited for owner. To gain more success in business through franchises thy should balance local customization as well Since TESCO is UK based retail company so they most of the products consist preferences of UK customers. To run operations successfully in Brazil they need to maintain local preferences as well. Company need to focus on comminations as well. There should be no communication gap between the company and local people. The owner of company have clear core concepts about market and their product which they are offering to people. For gain market and take competitive advantages location is very important for every business.
Before opening franchises business company need to look over the market and their recent trends, consumers habits can also affects business. They also focus on locations of business. Locations of business also affects its performance. Without a great location of business they cannot overlook its benefits. From the above report it can be recommend to company to focuses more innovations of company and take advantages of technology in their business so they can acquire market in better way.
From the above report it can be conclude that franchise is good options to acquire to become an entrepreneur. TESCO is offers good products and services to their customers on standards systems. Entrepreneur can be benefited through franchises as their advertising and training cost is low. It also benefits to entrepreneur because it the retail company is well established brand in UK and other countries but in Brazil it is still not aware about the company. However, there are some other supermarkets such as Wal -Mart which is main competitors of business. The economic conditions of country is favourable for retail business.
- Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
- Kirzner, I.M., 2015. Competition and entrepreneurship. University of Chicago press.
- Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
- Baum, J.R., Frese, M. and Baron, R.A., 2014. The psychology of entrepreneurship. Psychology Press.
- Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the discipline. Journal of Small Business Strategy.