Entrepreneurial Management Case I| Assignment I

10/17/2014

Synopsis:
The case depicts the path of an entrepreneur, the case shows the transformation of a naive
individual to an entrepreneur who is now at a point that can define his success in the venture. A
fresher having a bachelors degree in business started out different ventures without much though
and feasibility which turned out to be a failure. Soon he discovered an opportunity to establish a
new venture as either distributor of carbon paper or surgical cotton from India. Having learned
from his past experiences, he did some research on the business prospect and found out that the
ventures were not sustainable in the local market or he did not have the capacity and dropped the
idea. Still he did not let his ambitions of an entrepreneur fade away and continued to look into
business prospect that was more within his reach, he had finally transformed into a more practical
and realistic person by now. The entrepreneur finally after some study and research on the market
found out that an ice-cream factory was a good opportunity given the warm climate of the market
and business liquidity. Having established the business and passed the turmoil stages through
innovation and adaptation to various environments, he is now considering to expand the business
and sees himself as an ice-cream tycoon in the future.
Main problem to be solved:
Be prepared for the future uncertainty and competition in the market.
Rational for the identification of the main problem:
The current market in Butwol is in equilibrium and there is not much competition among the six
suppliers as they are not able to meet the market demand. The entrepreneur, being futuristic and
analytical knows that this will not be the case for long and the market scenario would change soon
when someone in the market will rock the boat by establishing a bigger factory or start to
differentiate their product. He feels he need to gear up for the future.
Alternate solution generation:
i.
ii.
iii.

Establish a bigger capacity plant in Butwol and increase production.

Enter into a new market at Nepalgunj.
Differentiate the product.

Kaushal Shrestha | Roll no: 13522 | EMBA VI Term | KUSOM

Alternate solution evaluation (criteria):

S.N
o.

Alternate solutions

Competition

Uncertainty

Market Knowledge

Investment

First Mover
Advantage

Total

i.

Butwol Expansion

18

ii.

Enter Nepalgunj

11

iii.

Differentiation

17

Scale: 5-Strong to 1-poor position

Selection of alternative:
The highest rated alternative is to expand the capacity in Butwol, because the market needs are not
met and has capacity to balance the increased supply, differentiation can follow as the market
matures and the competition intensifies in the market. Catering the mass market in the current
scenario can help the entrepreneur achieve sustained advantage.
Action plan:
i.
ii.
iii.
iv.

Increase the capacity of plant to match the demand of the market

Develop better distribution network to easily cater the market and distribute the product.
Aim to achieve economies of scale so as to reduce the cost and increase the profits.
Develop good supplier relationship to create efficient supply chain.