Entrepreneur Internship Assessment

Entrepreneur Internship Assessment

a.     Opportunities

In the United States, it is hard for entrepreneurs to discover the next opportunity to sustain the current business while solidifying the organizational brand. Specifically, the liquor industry is vast and requires large capital to run a start-up. Most of the competitors in this industry have generational businesses, where families have accumulated market experience to survive. Introducing a new business idea like Entrepreneur Internship requires adequate knowledge of the potential clients and strong relationship between the customer and the service provider. Therefore, it is necessary for an entrepreneur to invest in research and development to avoid loss of contact with the market. Besides, it is recommendable that the business owner explores other opportunities to avoid over-reliance on one source of income and to guarantee business stability. At the same time, the generated resources can be re-invested in mainstream operations to boost short and long-term market prospects. Additionally, exploration of other opportunities cushions Entrepreneur Internship brand since the owner channels the income to advertising and product promotion expenditures.

Diversification of Business Operations

Profitability and motivation characterize entrepreneurial culture. However, such goals are unattainable unless the business owner implements ideas for sustaining business growth and revenue generation. The management of Entrepreneur Internship ought to diversify the business operations by investing in other sectors in the industry. Over the years of training Liquor industry staff, the business owner has accumulated fundamental know-how on the industry’s year-long performance, legal requirements, and market expectations. Therefore, this knowledge is applicable in exploring the potentially lucrative businesses for re-investing the income. It is true that some business owners focus on one idea and eventually succeed (Ardichvili et al., 2013). However, there are budgetary constraints that limit success hence a high potential of terminating operations. For a start-up entrepreneur in the beer industry, it is advisable to merge with other businesses and be a crucial contributor of ideas during the inception process rather than single-handedly implementing the idea from the ground up. In this way, the entrepreneur increases the profitability opportunity while limiting business risks.

Angel Investment

The popularity of angel investors has surpassed that of venture capitalists over the past decade. It is a similar situation in the liquor industry. As Entrepreneur Internship grows, the owner should stress less about meeting the periodic operational costs. Instead, he should direct the energy towards improving service delivery and improving customer loyalty. The benefit from angel investment opportunity is two-way. For instance, the business owner can invest his resources in this business portfolio and reap interest after specified period of time or he can borrow resources from the established lenders to meet the rising business needs.

Alternatively, there is an option of crowdfunding that allows budding entrepreneurs to circumvent traditional investors and loan outlets. Crowdfunding involves a direct interaction between the client and business owner, where the latter inquires on the interest rate levels. Satisfied with the deal, the entrepreneur obtains the funds for the production of goods and services and distributing them to the interested parties. Not only does the stategy encourages business innovation but also diversity in the business environment. Moreover, crowdfunding levels out the playing field among the competing organizations. At the same time, it neutralizes the edge resulting from restarting business operations and being well-connected in the beer industry.

Start-up Incubation

Entrepreneurship training can initiate a start-up incubation program to educate the trainees on the importance of opening and operating their own businesses instead of looking for employment. In the industry, the unstable market conditions result in unpredictable business dynamics. Today, most owners of beer manufacture brands are disillusioned due to the weakening overseas demand of America’s light beer. Therefore the sector is no longer viable. However, Entrepreneur Internship has an opportunity to impart new skills to the managers of such firms to ensure business re-engineering and rejuvenation. If this is successful, the clients could introduce new business models to tap into the growing demand for brandy and Vodka. In the end, it is a win-win situation for both parties.

Focusing on Quality

Provision of quality services sets the business on a leadership role. There are numerous benefits and opportunities of being a business leader. First, the firm establishes its brand in the national and international market. Secondly, there is an influx of clients due to improved branding and better service delivery. Third, the workforce adopts an improved business culture and work ethic. Consequently, the organization earns an advantage over its competitors. Most importantly, Entrepreneurship Internship’s management should integrate Information Technology in the business model to exploit multiple business opportunities through online channels. For instance, the social media platforms such as Twitter, Instagram, or Facebook can be used to advertise the service and product to a global audience.

Foreign Market

            As the American beer industry become saturated with liquor firms, it is advisable for Entrepreneur Internship Inc. to venture into emerging markets. China, for instance, presents numerous opportunities considering the size of its population, appetite for alcoholic drinks, and penetration of Western quality products. Therefore, setting up a subsidiary in the country means unobstructed access to a large market.  Still, the firm has to invest heavily in studying the business culture and sourcing for a qualified local workforce but the return on investment will be worth the risk.

b.     The Viability of Business Diversification

            Diversification is a viable option for Entrepreneur Internship due to various reasons. Understandably, the sale and production of alcoholic products in the United is at the strategic crossroad. First, there is a gradual decline of the middle-income earners that often constitute the largest consumer segment. Secondly, the loyal customer base is diversifying their preferences and tastes. Third, the low-alcohol and beer market is completely saturated, leading to a lower number of potential clients that require training services. Lastly, the trend of globalization is rapidly eating into the American liquor market.

Considering these challenges, it is essential for the firm to adopt new strategies for future sustainability. In addition, other business entities in the industry have to strengthen their core alcohol production business and provide other beverages such as mineral water, or non-alcoholic drinks. Alternatively, the organization has an option of providing products and services in a different industry. However, Entrepreneurship Internship should focus on vertically integrated business opportunities or those founded on the industry’s core competencies. Either way, the new business environment will be closer to the parent industry. Of keen to note is that large rivals are spending a significant amount of resources on revamping the beer business to meet the consumer’s changing demands.

If the management prioritizes growth, it is important to carefully plan the future operation for short-term and long-term, success (Stern & Henderson, 2014). Indeed, business growth and diversification have risks but the adoption and successful implementation of the right strategy ensure stability and security. Most importantly, Entrepreneur Internship’s management has to exhaustively assess the current weaknesses, threats, and strengths to determine its readiness and to consider moving to the next stage. Next, the leadership has to build a new growth strategy.

As Entrepreneur Internship moves beyond the start-up phase, its focus adjusts to incorporate new business ideas for a sustained growth. Therefore, the identification of expansion opportunities ensures stable revenue generation. Some of the factors to consider prior to making business moves include market share, turnover, sales, profits and the number of employees. The determination of the aspects that paint an accurate image of the organizational performance depends on its ranking in the industry.

The Entrepreneur Internship performs relatively better compared to the competing firms. Therefore, it is viable to scout for other ways to develop. A failure to consider expansionary measures gives the rivals a chance to grow and eat up the firm’s market share. In the long-run, Entrepreneur Internship’s position weakens. Diversification, therefore, starts with the consolidation of the existing business platform. In addition, the management should ensure smooth operations for the core business even as it spends time and resources on diversification.  A successful diversification does not involve neglecting the existing customer base since it underpins growth. Besides, the loyal customers are the source of transitional cash flow.

Furthermore, the timing is right for diversification. Although the firm’s finances are limited, they are enough for coping with the expansion program. Besides, the systems and resources are in place for continuing the current path while targeting the foreign market. The firm sets aside financial resources for a backup plan in case the new initiative disrupt the performance. In this way, the regular clients will not lose out. Some of the plans that the management reviews prior to the diversification include redefining service provision techniques, the addition of specialized staff, and outsourcing of skills for an effective consolidation.  

The thorough customer and market research for the new services and products allow Entrepreneur Internship to create a clear development strategy. In fact, there are plans to try out the new service for a limited time period (for instance using test marketing and prototypes) prior to commitment. Moreover, a snap business analysis indicates that the supply chain, marketing, and sales operations can successfully cope with the additional demands. Diversification is necessary, especially in an increasingly globalized alcohol industry that forces businesses to consider the provision of new services or looking for new markets. Product and service diversification program is a risky undertaking, given that the organization must embrace unfamiliarity and uncertainty. In fact, the corporation is joining an unchartered territory, hence the importance of having an effective compass.

c.      Global Trends affecting Businesses

Global forces greatly influence the business environment in the US’s liquor industry. Business trends, for example, define how Entrepreneur Internship responds to competition and interact with clients. Some of the latest global trends include religious fundamentalism, technological advancement, healthy living, and emerging markets. Therefore, these forces define the business culture, thus prompting the companies to quickly adapt to the latest dynamics. In addition, globalization introduces fierce competition and organizational uniformity. Consequently, Entrepreneur Internship must devise strategies for enhancing compliance with the prevailing global business trends.

Focus on the Environment

SMEs and governments focus on sustainable business practices through environmentally friendly practices to mitigate climate change. The alcohol industry is not an exception. Entrepreneur Internship should incorporate lessons on the effect of global warming on business practices to ensure that the clients are conversant with the business trend. It is costly for small businesses to go green. Still, the US government has passed a policy that mandates a stamp of approval on all products to indicate green disposal and production. Notably, the administrative overheads rise significantly if the service industry observes strict environmental regulation. As a result, the production cost skyrocket throughout the business community as a net effect of compliance with global environmental regulation.

Information Technology

Technological advances enhance communication on a global scale. Businesses are exploiting this opportunity by reaching out to their potential clients through social media and online product promotion avenues. Other organization in the liquor industry use email and smartphone apps in communicating with their consumer base (Bughin et al., 2013). In particular, the social media advertisement platform is affordable for start-ups. It is an ideal choice for reaching out to a wide base of new customers, especially during business expansion and diversification.

Emerging Markets

The drive towards international trade is one of the globalization aspects. The interlinking businesses conceive a powerful force that constitutes a liquor market not limited by national boundaries or sea.  While globalization ensures international success for most of the US’s start-up firms, a financial crisis in one part of the planet (for instance the United Kingdom) has a direct influence on all the organizational subsidiaries across the planet. In addition, there is a remarkable interconnectedness of global supply chain network in that the production can be affected in Japan should something happen in the United States. In Japan, the traders’ worst fears were confirmed after the Earthquake and Tsunami. The emerging markets compound this issue due to increasing buying power and rising number of beer manufacturers. Eventually, the companies in this sector compete fiercely for raw materials and customers.

Further, the emerging markets are introducing reverse innovations for the developed world. Most tech start-ups in the United States introduce their products (such as iPhones) in the emerging markets first before bringing them to the EU or the US. The main reason is that the cost of labor is low in emerging Asian nations. Consequently, the emerging markets catalyze growth in the alcohol and beer industry.

Religious and Cultural Ideologies

Contradictory religious views and ideologies shape how business entities conduct their affairs. Specifically, the alcohol industry is under constant scrutiny from Christian activists due to underage drinking claims. On the other hand, ideologies compete for resources, time, and people’s attention. Whether cultural, religious or political, people have strong convictions and are ready to defend or maintain them at all costs. In some cases, spiritual groups can use intimidation and force to implement their agenda. For SMEs, transacting in foreign countries like the Middle East, Japan, or India calls for adherence to cultural and ideological views of the natives. The R and D team has to devise effective strategies for operating within such settings. In the Gulf States, there are some regions where alcoholic drinks and pork are decreed as non-halaal because of religion.

Population Growth

 The American population is growing at a slow rate but the global population is booming. There is a population explosion in China, India, Sub-Saharan Africa, and South Korea. It implies that in the near future, there will be a large market for goods and services. Already, China’s 1.3 billion people have an appetite for American products and services.  It is advisable for Entrepreneur Internship to reach consider this growing customer base.

Demographic change is also trending globally. For instance , Han Chinese constitute more than 20% of the global population, whereas in the United States, the Hispanic populace is growing rapidly. Statistics indicate that between 2000 and 2010, their population increased by 21 million to 52 million. This explains the shifting preferences and tastes for alcoholic products.

d.     Impact on Opportunities

As the world move towards minimizing climate change, Entrepreneur Internship has an opportunity to diversify its business structure by incorporating green products and services. For instance, the firm can collaborate with the government in drafting new lessons for their clients. The introduction of a new system of consulting with interns implies that this organization meets the federal government’s requirements. In addition, it earns a competitive advantage since Entrepreneur Internship adds a new service package to address market trends. Diversification to environmental awareness consultation services attracts a new customer base for long-term sustainability.

On the other hand, integration of business activities with the latest technology meets the firm’s goal of providing quality products and services. Through internet connectivity, the organization’s research team utilizes online tools and information to boost business performance. In addition, the social media platforms are usable in strengthening client-business relationship. Technology also ensures automation of most services in the beer production industry thus eliminating the company’s need for the additional workforce. In turn, the business minimizes the operational cost. Then, the management redirects financial resources to improving quality.

Due to the trending demographic changes, the firm should tap into the emerging market experiencing rapid economic growth. As the number of middle-income earners shrinks in the West, it is rising in Asian and Africa. Therefore, such regions are viable business destinations especially for firms experiencing poor performance in the United States. If the organization posts high profits and sales revenue in India or South Korea, the leadership can use the money to revive the local market or conduct extensive research and development.

Globalization of business operations gradually transforms the business landscapes overseas through cultural interactions and exchange of ideas. Over time, religious or ideological misconceptions regarding specific products and services will be eliminated, thus opening up the Middle Easter markets. Moreover, globalization is the source of start-up incubation business opportunity. When technology and accessibility to the internet open up remote places on the globe, aspiring entrepreneurs use electronic gadgets such as smartphones to learn through virtual conferences and video conferencing.

Business challenges trigger opportunities, especially for an innovative entrepreneur. In most cases, customers focused on environmentally-friendly products or services are willing to pay an additional premium for an entrepreneur that is ahead of the pack. For instance, listing the ingredients and local product traits increase its attractiveness than a competitor’s product shipped from Asia or Europe. Excellent entrepreneurs can recognize the specific business trends that are transformable into opportunities.

e. How Business Trends Affect Sustainability

The use of social media for product promotion introduces interactive marketing. It is growing fast due to its global popularity. Most entrepreneurs prefer this platform to costly traditional advertisement techniques in which the client is passive. Social media marketing, blogging, and use of emails encourage participation by the online community. Most interfaces have sections that the user can provide feedbacks. The data is crucial for ideation and product creation.  Given that there is no wrong or right answer, the clients are more likely to favorably choose the services or products. In light of this, it is clear that sustainability, marketing, and social networking are inherently interconnected.

Business sustainability is no longer out of reach even in the liquor industry. For entrepreneurs, greener options are available in the online realms. Green business unleashes more potential than was possible a decade ago. The more the organizations embrace changes and technology, the higher the profitability and chances of business expansion to new destinations. Therefore, the new markets abroad can sustain the failing local operations.

In summary, Entrepreneur Internship cannot survive in the domestic market unless the owner diversifies the operations. The local market is in a gradual decline, hence hurting profits. Partly, the cheap imports of alcoholic drinks and changing consumer taste are to blame for deteriorating performance. Some of the global trends such as demographic shifts and technology also influence Entrepreneur Internship’s annual performance. Exploiting technological advantages earns a competitive edge over rivaling firms both within and outside the United States.

References

Ardichvili, A., Cardozo, R., & Ray, S. (2013). A Theory of Entrepreneurial Opportunity Identification and Development. Journal of Business Venturing, 18(1), 105-123.

Bughin, J., Chui, M., & Manyika, J. (2013). Ten IT-Enabled Business Trends for the Decade Ahead. McKinsey Quarterly, 13(May).

Stern, I., & Henderson, A. D. (2014). Within‐Business Diversification in Technology‐Intensive Industries. Strategic Management Journal, 25(5), 487-505.