Quiz 2: Small Business Management, Entrepreneurship, and Ownership
Origin of the case: O.C is an online dating website founded in the year 2004. The company was trying hard to be noticed in the crowded market. The company's competitor Y had spent around $7 million in building sites, which was not gaining any attraction. O.C was attracting around 1.5 million exclusive viewers a month by 2008. The online industry was changing constantly which did not help companies like O.C and Y. People were looking up to the social networking sites as they were providing better service than others. O.C tried fighting hard with various advertising campaigns, but it was a flop. Dating websites had an opportunity to bounce back once a famous social networking site outsourced jobs of developing software called widgets. O.C team found the potential of developing that software when the competitors found that it was not interesting. O.C introduced a concept of "blind -date button" (CBD) in the website. This concept was launched in certain cities in the U.S and made O.C's idea of CBD a hit. Statement: " The concept of blind date button has made O.C company standout." Justification: The concept of a blind date button has built a competitive advantage in the online industry by being unique. This idea has made the company O.C to gain more unique viewers. O.C's belief in this concept when its competitor did not trust is the biggest reason for the concept to get successful. The blind date button provided some unique features to the customers such as by clicking the button a dating partner could be found, and free form description of the ideal date, range, age and gender of the date. Finally, the company benefits the daters by allowing them to select usual body type, ethnicities, and religion before hitting the "CBD" button.
Business: Business is an organization involved in the trading of goods and services to the consumers. A business can also be termed as a firm or an enterprise. Statement: "Passion can be turned into a business." Justification: It is great to start a business with enthusiasm based on the passion, but sustaining in the business for the long term is very important. The following are a few steps involved in turning passion into business: Reality check: Before launching your passion into a business, reality checks should be done. One must ensure that there are other components present, which are needed for success, such as a market for your product or service and the willingness to work hard. Ancillary functions: Apart from running a business, there are other ancillary functions which have to be looked upon for the business success. These functions include marketing and selling, ordering inventory, invoicing customers, and paying the bills. Hiring process: By hiring passionate people who are ready to share your devotion, it will help the owner to trust his employees as the business grows. Keep the passion alive: Keeping your passion alive and involved, even after the business is running profitably, the business can grow even bigger. By keeping it alive, it will help your passion to expand further. Prioritize fun: Generally, entrepreneurs who start a business based on their passion will want their business to be fun. So, they create the organization in a friendly manner for their employees and make sure the job is as enjoyable as possible.
Entrepreneur: Entrepreneurs are the persons who find an opportunity or idea and assume the threat of starting up the business to obtain benefits of that opportunity or idea. Difference between entrepreneur and small business management: An entrepreneur is involved in the method of identifying opportunities for what marketable wants exist, and presumptuous the risks of staring up an organization to satisfy themselves. An entrepreneur always requires a vision to identify the opportunities involved in a market and should have the skills and capability to capitalize on them. Small business management is the ongoing procedure of acquiring and operating a recognized business. Small business management should have the ability to manage all the challenges of moving the business forward by retaining and hiring good quality employees, reacting to the changing trends and customers needs, maintaining positive cash flow, and making sales.