Business Problems of Savvy Entrepreneurial Firm - Case Study

Question: Discuss about the Business Problems of Savvy Entrepreneurial Firm. Answer: Introduction: Entrepreneurial firms or organization is the skeleton of any business. The entrepreneurial firm has the role to implement the already visualised business plan into actions. After establishment of the business, it is the organizations responsibility to run, manage and implement strategies to lead the business into a profitable venture. In doing so, the entrepreneurial firm must make up some business plans (Chesbrough, 2013). The written strategy based on which a company starts its work, implements all the possible methods to run the projects is known as business plan (Hill, Jones Schilling, 2014). The business plan usually comprises of three different types of components. They are the financial, operational and marketing side of business. Through this report, the problem faced by the Savvy Entrepreneurial Firm has been focused. The identification of the problem has been made with special reference to the article Know the Facts behind the Numbers. The innovative and distinctive way in which the firm looks after its profitable side and tries to choose the CEO of the company has been appointed is the crux of this report (DaSilva Trkman, 2014). Background of the Savvy Entrepreneurial Firm: There are several factors, which affects the establishment of any business. The most important factor is to have a fixed goal that is to be achieved by the firm and a vision to strive in this competitive market against all the odds. Savvy entrepreneurial firm has both of these components. The entrepreneurs of this firm have the motto to serve the people with their products and bring on improvement in the same on a daily basis in order to stand up to their customers expectation (Lidow, 2014). Problems faced by Entrepreneurial Firm: There are numerous hindrances faced by a company in running its business. The 3 vital issues are summed up as follows: Concepts and Goals: Several small entrepreneurs wish to open up their new ventures and then come up as a cropper within few months or years of establishment of their ventures. This is mainly because they has the enthusiasm to open up a business but lacks up in the basic concepts of the market in which they enter (Barringer, 2012). In addition, many of them loose focus and deviates from their goals while trying to execute their authority. In our case study, the firm has been able to keep a focus on the fact that it is going to enter the food and beverage industry. Financial problems: Almost all small ventures face the problem of getting funds as loan from the banks (Brigham Houston, 2012). Savvy entrepreneurial has been in the market for long time and hence did not face this problem while launching their fitness drink in the market. Problems of planning: The establishment of any business is not then end of it. There has to be well-defined idea of the ways through which funds are going to be raised, the ways in which these funds would be utilized and the innovations that can help the business to succeed. The chosen firm excels in solving this issue. It has digressed from the traditional method of recruitment and amalgamated the logical and contemporary method in its business operation (Chesbrough, 2013). Reason behind Savvys excellence: Savvy Entrepreneurial Firm has decided upon to broaden its horizon and launch a fitness drink in the market. In order to understand the suitable candidate for the post of CEO, it decided to take an interview of 3 CEOs of three companies working under foods and beverages industry. According to the traditional way, the candidates should be chosen based on the financial statement provided by them about their performance in earlier company. Savvy did prioritize this view but in addition also looked after the entire market scenario under which the CEOs performed (Gigerenzer, 2015). The first and the most important innovation that Savvy took in its business is to choose the CEO not on the basis of their financial statement but by evaluating the entire market and the ways in which these CEOs has curbed the problems faced in business (Berman Knight, 2013). The balance sheet produced by them gave a wrong notion that the 3rd candidate was best as the profit generated was higher than the other two firms. But a detailed analysis on the existing market highlighted the fact that the company has underperformed with respect to the existing market (David David, 2016). The New Venture Fitness drink chose the 2nd candidate as CEO from the New Venture beef industry as he had worked hard in reviving the companys value by strategically standing up against all the odds through which the entire beef market was passing (M.Carraher, 2011). Other problem solving techniques: There is need for innovation in every aspect of business in order to sustain in the complex and competitive market (Musteen Ahsan, 2013). The innovations taken up by Savvy to succeed in the market are: The company expects to bring out a unique fitness drink that can help people out to re-energize themselves after some heavy workout. Amidst several beverages in the market, the company expects this drink to stand out as it is low in sugar content, contains several minerals and vitamins require for human being. This drink is going to be launched in unique packaging with easy grip bottles, sleek designed so that people carry the drink to their gyms and workplaces. There is going to be a variety of flavours available in the market for this drink. It can help in retaining more consumers by allowing them to choose their flavours. Conclusion: The Savvy firm has tried its best on its behalf to select the potential candidate as the CEO of New venture drink that it proposes to launch. It has been seen that from the very first step of business operation that is from choosing the CEO, the firm has digressed from the traditional method. This can be connoted as the USP of this entrepreneurial firm in managing their business and solving the persistent problems faced by the company. It used the existing perspective of the market and an assessment of the ways in which these persons can handle the business turmoil. After choosing the potential candidate, the company then tries to find unique ways to launch its products so that they can capture the maximum possible market. It is expected that the company is going to see the success soon in its business if it can keep up the level of innovation in each steps taken henceforth. References: Barringer, B. (2012).Entrepreneurship: Successfully Launching New Ventures, (2012). 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