Sound strategies provide competitive edge do you agree? Give Example.

Yes, it is true that sound strategies provide competitive edge. Strategies refer to the trends followed by the enterprise for achieving the objectives of production, profit turnover etc. the trends leading to the desired level of success is referred as sound strategies for example. Hero Honda a leading two wheeler company in India keeps on introducing new models after every 5-6 Months. This is a part of their strategy as every time some innovation is involved. This leads to competitive edge over the competitors as they lag behind many a times. Though this scenario is changing now but is a good example of sound strategy.

What are the main 4 points under the head material resource or Explain the decisions to be made with respect to an operation Size and Location : the installed capacity of the enterprise is to be decided which ultimately depends on land available, finance available etc. location of the enterprise is determined by availability of resources, land, etc. Manufacturing Process : More than one process may be available. Entrepreneur has to select the most appropriate matching with the final product, cost, labour. Machinery : the entrepreneur has to consider various aspects related with machinery like supply maintenance charges, requirements for installation etc.

Power : most of the industrial units run on electrical power. So the electricity board concerned must be approached to obtain power for the project.

What are the resources needed to start, sustain and develop an enterprise?
The major areas for starting, sustaining and developing any entrepreneurial venture are : Opportunities Resources Control mechanism to mobilize resources Organizational structure

Resources : Human Resources Material Resources Financial Resources

What is meant by collateral security

Fixed assets like buildings, land etc. registered in the name of entrepreneur and used as security to release loan is referred as collateral security.

What is the most crucial aspect of entrepreneurial process? The most crucial aspect of entrepreneurial process is the effective strategic position that an entrepreneur achieves. It is the overlapping area of knowledge and skills and market dynamics.

Definition by bill bolton and john thompson:

it is necessary to remember that entrepreneurs who succeed have a purpose and direction and they build value. Strategies are the things that enterprises do, the paths they follow and the decision they take in order to reach certain points and levels of success

3 types of resources:
1. men or human resource 2. material 3. finance

Human Resources :
In small scale unit the entrepreneur himself becomes a very important human resource as he is both employer and employee. Other human resources are : 1. Trained man power 2. Skilled and Unskilled Labour 3. Administrative staff.

The Trained Man power:

1. purchase of machinery or choosing 2. quality control 3. production 4. personnel management

Skilled and Unskilled labour:

1. involved in actual production 2. repair and maintenance

Administrative staff :
1. Book keeping 2. typing 3. computer service 4. communication

Financial Resources :
Finance is regarded as the lifeblood of business. Every enterprise aims at earning a profit and to achieve this aim, besides other things, proper financial planning is crucial.

Margin Money
The entrepreneur has to contribute his share of the capital which is called the margin money. No bank of financial institution will be ready to finance the project unless margin money is contributed.

Preliminary project report

It is a document providing details of project cost, means of finance and other financial calculations to be supplied to different agencies. Preliminary project report is helpful to obtain the provisional registration.

Provisional registration certificate

Provisional registration certificate helps the entrepreneur to allotment of land, electricity and water connection etc. On the basis of provisional registration entrepreneur can get the financial support from the financial institutions.

Two ways in which govt. help

1. incentives and facilities like tax holiday 2. supporting agencies: A. Small industries development organization B. Institute for Entrepreneurship and small business development. C. Entrepreneurship development institute of India D. SIDBI