Meer Mse Complete
Content
2013
MEER MUHAMMAD IQBAL C0408kkkk0413
[
CRITICAL EVALUATION OF EXISTING THEORY OF
ENTREPRENEURSHIP & CHOICE OF ENTERPRENUERSHIP
]
MSE
Assignment
TABLE OF CONTENTS
S. No i 1.0 2.0 2.1 2.2 2.3 3.0 4.0 4.1 4.2 4.3 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 Contents Executive Summary Introduction Critical Evaluation of Existing Theories of Entrepreneurship Psychological Theories Sociological and Anthropological theories Shifted Entrepreneurial Success Factors Conclusion Introduction to Business Prevention and Detection of crime Prevention and Reduction of loss waste and damage Monitoring and responding to safety risks Ownership Structure Legal Aspects Business Competitors SWOT Target Market Pricing Strategy Staff Development Business Strategy Services Offered by the Business Financial Plan Revenue and Sales Managing Skills Reference Page No. 3 4 5 5 8 9 11 12 12 13 13 14 14 15 17 18 18 19 19 20 21 22 22 24
EXECUTIVE SUMMARY Security is one of the key problems nowadays. The philosophy of security is from old times and many years ago it became the need of every one. And is still the need of every one. The security system was established in United Kingdom in eighteen century. Rich people, celebrities and business need security for their property and their lives as it is the treat all over the world.
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Ownership of the private security company can be a kind sole proprietor business which can be run by me only. The security personal can be hired with no contract basis and as far business will grow up we shall start hiring security personals and a manager to deal with customers and employees working in it. Construction skills certificate is for those who wish to work as security personal on the constructions site and other sites relating to construction. The Security Industry Authority (SIA) is that body which regulates all the rules given by the Private Security Industry in the U.K. It is an independent body which reports only to the Home Office according to the law passed in 2001 The tough competitors in the private security industry are G4S, MITIE Total Security Management and Securitas Security Services Ltd. All these companies are private and are working for many years in U.K. We will research on the markets where we can expand and grow. By far now our main focus will be on pubs, bars and construction areas where there is big need of security staff. My main pricing strategy will be low charge from the client and a good wage to my employee and with a minimum commission to myself. According to the above strategy I will be minimize my commission and charge client with low price than my competitors. My profit margin will be less than my competitors. According to my experience competition in an organization is also better for the organization in some ways so that to get best out of every one. Courses regarding safety and security services will be offered free to our employees to improve quality of our service and image of the agency. 1.0 Introduction Entrepreneurship is a comprehensive concept that is used in various contexts. Well it is being developed by entrepreneurs, different characteristics which are found in their personalities. These capabilities and passion in entrepreneurship illustrates as innovator that bring something new or unique by combination of different factors. Innovation does not come by itself actually it comes into shape in different forms that are as follows: i) Introduction of new goods Page | 3
ii) iii) iv)
New process of production Innovative market Innovative source of supply of production
v) The reformation of any industry. According to Saha (1989), talented individuals who foresee the profitable opportunities and utilize it in order to avail this opportunity is called entrepreneurs. While Purhit and Rahman (1995), stated that simple resources cannot guarantee the growth of economic therefore the development depends on the slowly progress of the human being that utilize the capital and resource to make new product or new market and run the business (Frederick and Myers, 1991). Entrepreneurship is the main point for the development of economic growth that builds opportunities for trade by discovering and exploring new products, markets and resources (J.A. Schumpter). Moreover, these activities hold uncertainties and risks meanwhile it increases the demand for investment. The increased investment demand requires the higher buildup of capital in order to meet with the economic demand of the country. The boost level of income and total production of goods and services within economy is the growing effects of all these factors (Saha, 1989). Although entrepreneurship is a critical aspect in the economic development method but there are certain problems associated with opportunities that can be faced in practice such as market penetration strategies, potential customers, penetration strategies, suppliers of raw materials, and expert individuals.
2.0 Critical Evaluation of Existing Theories of Entrepreneurship
There are several theories for the development of entrepreneurship for the entrepreneur. Therefore, the theories have been divided into two group namely sociological & anthropological and psychological theories that are as follows in detail.
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2.1 Psychological Theories
The main difference of psychological or personal theory in the individuals is the attitude. According to the theory of attitude in difference includes the internal attitude and ability to judge and estimate the main condition that can lead a person in becoming a successful business person i.e. the entrepreneur. There are some vital theories which are discussed under: The theory of David McClelland’s came up with the need of achievement which is the main theory discussed in psychological theories on entrepreneurship. He underlined the theory of the relationship of achievement motivation or need of achievement that is representing as( n Ach) to monetary growth via entrepreneurial events. He wrote “the presumed mechanism by which n Achievement level translate itself into economic growth is the entrepreneurial class. If the n Achievement level is high, there will presumable be more people who behave like entrepreneurs-----” (Islam, 1989). Agreeing with McClelland, one can expect a fairly huge total of entrepreneurship in humanity if the normal level of the need for achievement in humanity is fairly high. Having a high n Ach it helps in encouraging the individuals in challenging and achieving the goal and also it helps them to use their abilities, knowledge and skills in order to accomplish these goals (Islam, 1989). However, the internal part of an individual is that it drives them to work harder and accomplish something for their own interest by taking private risk (Islam and Mamun, 2000). The theory of need for achievement then reflects to the strong goals orientation, fascination with the job or task which is to be done. Therefore, the entrepreneur develops the connection or intervening flexible between need for achievement and economic development. Consequently, McClelland supports the increasing level of need achievement in a culture since it stimulates economic development and entrepreneurship (Islam, 1989). Lastly, conferring to McClelland, the entrepreneurs are highly extended by achievement enthusiasm and he also emphasized on the inner sense of personal achievement rather than doing something only for the sake of social status or recognition that motivated individuals to be entrepreneur (Islam and Mamun, 2000). According to Everett Hagen’s argument the theory Page | 5
of withdrawal of status respect is social changes are that it cause psychological changes in an individual or in a group or society. He considers that the preliminary state that leads to eventual-entrepreneurial characters has the loss of status by a group of socialism (Islam, 1989). According to Hagen the theory of loss of status can occurs in four different ways. These are as follows: i) ii) iii) the collection may be displaced by force; it may have its respected symbols degraded; it may implication into a situation of position inconsistency and status are ritualism, reformism, retreatism, rebellion and innovation. Between these responses retreatism is the most vital for entrepreneurship. This is since retreatism is considered by psychological oppression of the disturbance associated with the status failure. The repressed temper results from the loss of position eventually results in afterward peer group are values of accomplishment that is being held up by mothers within the group to their sons. The reason behind this that the son’s becoming innovators is increasing and free enterprise becomes a possible passage for such propensity (Islam, 1989) . This theory can be analyzed in two major forms. Firstly this theory is post hoc that means, Hagen has exposed examples of the removal of position by viewing the first main problem that in which the economic development happened and fore status formerly viewing the position of losses that have incurred in the growth. Secondly, the disapproval has positioned long period of time as much as five or more generations which are required for the withdrawal of status in respect to appearance of entrepreneurship. The theory of motive-Acquisition is a reviewed version of McClelland n Ach theory that states that thinking power, personality, attitude, mentality, etc. are not in born both they are more elastic and changes the condition easily. So therefore this theory is more helpful in training along with development programs that effect and encourage individual towards Page | 6
iv)It may not be recognized in a new culture, and the results or responses of the loss of
achieving the goal by changing their thinking, mentality, attitude etc (Islam and Mamun, 2000). The theory of risk taking that is familiarized by Richard Cantillon and John Stuart Mill where they define entrepreneurship as a mentality to take reasonable or intended risk, this is because many people are taking huge risk and also have excessive responsibilities. In order to perform these responsibilities a person should take the Internal-External Locus of Control that is familiarized Professor J.D Rotter of Ohio University highlights the self-confidence of a person, the dependence on wealth and the exterior environment for suitable entrepreneur. The theory of internal locus of control i.e. self-confidence, it believes on one’s power and ability that motivated and individual of a person to take the plan for innovation which is very co-operatives for individual side by side society as well (Islam and Mamun, 2000). Whereas, Independence Motivation theory is similar to internal and external Locus of control theory which also emphasizes on independent idea of entrepreneurs. It theory can be expressed that people having self-confidence, independent thinking, self-controlling ability ought to avoid public condemnation for becoming an entrepreneur. Additional psychological theory of entrepreneurship named Creativity or Innovation Theory that emphasizes the physical presentation as the factor to assess whether an individual is inventive or not, this is because inventive individual use their thinking ability and talents to create new ideas and views that help them to find different techniques of training. On the opposing, Power Motivation Theory has given importance on the specialist to do a convinced task properly. Particularly for entrepreneurship development personal power, this is connected to self-interest which is important.
2.2 Sociological and Anthropological theories
According to Katz et. al., (1991), sociological and anthropological theories are based on several aspects that create entrepreneur or entrepreneurship in to practice. Since, sociocultural factors have extensive influence on the creation of entrepreneurial. On the other hand, Page | 7
Islam (1989) stated that cultural and social factors put forward high value for risk taking, innovation that produces the entrepreneurial actions more than contrasting values for entrepreneur. Well Max Weber’s protestant value is one of these ancient theories. According to Weber protestant or Calvinistic logic and values were influential in promoting entrepreneur enterprise. In this regard, emphasis was put on the work itself. It means that a person’s work itself is influential factors that can make the things go beyond expectations. However the experience is a calling act that can make an individual the successful entrepreneur. Marginal and Tension theory is another type of anthropological theories that was discovered by Robert Park during 1928. According to Robert Park (1928), that marginal individual is the person who has committed himself/herself to live in two societies. Hence, both societies are not different from each other’s but there is a slight change within each others such as antagonistic cultures like occidental and oriental cultures. In this type of situations the marginal individuals connect themselves in businesses where society widely cannot accept them. Therefore, it is likely to create more entrepreneurs from marginal individuals (Islam and Mamun, 2000). The above discussion can be concluded within several variables for the development of entrepreneurship that are as follows: • • • • • • • • • necessitate for achievement removal of status Training for shifting persons thinking, mentality and attitude danger taking approach severe belief over one’s ability and power Creative capability Personal or Authority power self-resistant in the case of utilization profit societal eccentricity Page | 8
These variables play an important role in individual’s life that becomes the entrepreneur. Well these variables only explain the initial stages of entrepreneurship development that how and where a person can become entrepreneur. Meanwhile it cannot guarantee or satisfy the individuals for post stage of entrepreneurship progress. Therefore, it is impossible to know that how an entrepreneur uses the resources such as human resource, capital, and risk management approaches and etc.
2.3 Shifted Entrepreneurial Success Factors
In this section, the author explains those factors that brought success in entrepreneurship development process. The main purpose of these factors is to overcome the shortcomings that are associated with psychological and sociological theories and moreover improved applicability. According to Ahmed (1981), the success factors of entrepreneurship are further divided into four groups. Psychological Factors: Following are the variables of psychological factors • • • • • • • • Necessitate for achievement Danger taking approach Personal or Authority Power Internal & external loop of control Motivation for autonomy Creativity Need for affiliation Intelligence
Socio-Cultural Factors: Following are the socio-cultural factors • • • Religious values Rural-Urban orientation Marginality & Tension
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•
Social cohesion and etc
Personal Factors: Following are the personal factors • • • • • Family tradition in business Previous experience Birth order Age at entrepreneurial level Education and etc
Opportunity Factors: Following are the opportunity factors • • • • Economic opportunities Peer group assistance Training opportunities and guidance Existing schemes of entrepreneurial training and guided entrepreneurship etc
According to Islam and Nazrul (2000), danger taking approach is the important success factors irrespective of location, business type and its size for the entrepreneurial ship. While researchers suggested that the risk associated to this factor should be calculated and sensible in nature. The success of entrepreneurships is not limited to innovativeness or well coordinate persistent actions for something new in fact it depends on the other factors as well like self awareness, managerial capability and adaptability, self motivation for achievement, personal initiative, knowledge of market with regards to the demand, technology development, competition, product development, political and social issues and etc. It can be concluded that the success factors of entrepreneurship has been shifted from psychological and personal factors to environmental and managerial factors because of increased complexity in businesses, demand of products, development of information, customer satisfaction and globalization of businesses. 3.0 Conclusion Page | 10
Entrepreneurship is a comprehensive concept that is used in various contexts. Well it is being developed by entrepreneurs, different characteristics which are found in their personalities. These capabilities and passion in entrepreneurship illustrates as innovator that bring something new or unique by combination of different factors. Entrepreneurship is the main point for the development of economic growth that builds opportunities for trade by discovering and exploring new products, markets and resources. The main difference of psychological or personal theory in the individuals is the attitude. According to the theory of attitude in difference includes the internal attitude and ability to judge and estimate the main condition that can lead a person in becoming a successful business person i.e. the entrepreneur. According to Katz et. al., (1991), sociological and anthropological theories are based on several aspects that create entrepreneur or entrepreneurship in to practice. Since, sociocultural factors have extensive influence on the creation of entrepreneurial. On the other hand, Islam (1989) stated that cultural and social factors put forward high value for risk taking, innovation that produces the entrepreneurial actions more than contrasting values for entrepreneur. The success of entrepreneurships is not limited to innovativeness or well co-ordinate persistent actions for something new in fact it depends on the other factors as well like self awareness, managerial capability and adaptability, self motivation for achievement, personal initiative, knowledge of market with regards to the demand, technology development, competition, product development, political and social issues and etc.
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4.0 Introduction Security is one of the key problems nowadays. The philosophy of security is from old times and many years ago it became the need of every one. And is still the need of every one. The security system was established in United Kingdom in eighteen century. Rich people, celebrities and business need security for their property and their lives as it is the treat all over the world. In early time the system of security was to hire watchmen for the night and the thief taker who used to catch the thieves in day time. It was been hired by the rich people of that time for the protection of the lives and precious things. All the security was privately hired so the private security industry started from the early times too. The other kind of private security was in the form of bodyguards which started in the era of roman and Greeks so it was also a kind of private hiring as it was the need at that time. Now the concept of security has been changed so much all over the world, every country is in the need of highly trained team of private security organization. The security service of United Kingdom has been changed so much, now they rely on highly trained and well managed security organization. They want security firm to be specialized in their field which could help the security problem in the United Kingdom. There are some points which kept are in mind and special focus must be given as far private security organizations are concerned: 4.1Prevention and Detection of crime There are so many means by which crimes can be prevented and can be easily detected. First of all the uniform of the security gauds get in notice that security is available in the specific area. CCTV cameras are of great help in preventing the crimes as people sees it so they get afraid to be caught by the police because it is been watched 24 hours. So thieves hundred times think before committing the crime in those areas where CCTV cameras are placed. With the help of these cameras crimes can also be detected by catching faces of the specific thieves and other who commit crimes.
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But the problem is process of placing these CCTV cameras are so much expensive but still it can control the crime rate and their after effects. In United Kingdom most of the security is done through CTV cameras and their observers who watch it 24 hours a day. In That way many insurance companies in United Kingdom gives a special discounts to the private security organizations and for those businesses too. 4.2 Prevention and Reduction of loss waste and damage There can be reduction in crimes if business get a proper security system for their firm and used modern technology to reduce crimes. It not only gives advantage to the business but also the live and other thing satisfaction for the employees. Everyone in that organization can become efficient in the work as they have got security for their lives. For example if some bank is going to be looted by someone is there as security guard or watching it on CCTV cameras so he or she can take urgent step and can help in the preventing of that crime , which can also help employees and customer of that bank. 4. 3 Monitoring and responding to safety risks Stand Individuals working for the security companies should be taught about the safety risk. While performing their duty they can search the bags of other people and can also checks their ID cards, it should be done to prevent the crime at the venue where duty is been performed. They can check any one on which they have doubt for the purpose of illegal weapons and drugs. They should stand firm while dealing the emergencies in that area and should not leave the place until police or any other public services arrived there for the response. In this modern era private security industry is one of the most profitable industries in the world which is getting more and more profitable day by day with the turnover of more than 3 million dollars. British Security Industry Association (BSIA) is the trade association for all the specialized security companies in the U.K. According to the figures released by BSIA there are roughly 75,000 security guards and around 300,000 others which are employed in different sectors such as CCTV operation, door Page | 13
supervision, close protection work and vehicle immobilisation and consultancy in the U.K (Bobby L, 2012). It is very important to understand the aim and gaols of the private security industry and for which purpose it is been established because it can help many individuals in making their career in this industry and can also be advantage for the business especially multinational businesses. 5.0 Ownership Structure Ownership of the private security company can be a kind sole proprietor business which can be run by me only. The security personal can be hired with no contract basis and as far business will grow up we shall start hiring security personals and a manager to deal with customers and employees working in it. 5.1 Legal Aspects Private security industry in unite kingdom is been regulated by the following two bodies: 5.1.1 Construction Skills Certificate (CSCS) Construction skills certificate is for those who wish to work as security personal on the constructions site and other sites relating to construction. The main purpose of this body is to train the personal with safety tips for the constructions sites and all to teach them all the rules and regulations regarding it. Any individual working on those must have this certificate for the working on these kinds of sites. 5.1.2 Security Industry Authority (SIA) The Security Industry Authority (SIA) is that body which regulates all the rules given by the Private Security Industry in the U.K. It is an independent body which reports only to the Home Office according to the law passed in 2001 (Private Security Industry Act 2001). SIA works is to see whether the private security agencies are working properly or not and according to the rules given by the U.K government. Page | 14
They also measure the quality of the private security agencies. They also sees weather private security agency is helping public and government in reducing the criminal rate in the country. The main fundamentals of the SIA is to approve the licences for those people who wish to work in security agencies and to look over all the contacts with other private security agencies. 5.2 Business Competitors The tough competitors in the private security industry are G4S, MITIE Total Security Management and Securitas Security Services Ltd. All these companies are private and are working for many years in U.K. It is tough competition going on among them; G4S was given the security contract by the U.K government for the Olympics 2012. But G4S failed in doing so, it was one of the big issues in the 2012, as many countries were coming to the U.K as well as tourist but G4S failed in providing security personals in the Olympics as it was in the contract. According to terms and condition they were unable to deploy the security employees and which cost them 40 million pounds cost. Demand of security in increasing day by day but the problem is with supply, there are not enough people who wants to works a security guards, and one of the other problem is that SIA is now indulge with home office and it does not issue the licenses for those who are not allowed to work in work according to the Reutter, 2012 300,000 Licenses was cancelled by the home office as those were not allowed to work in the U.K. Thus with this situation many of the small security agencies took advantage and came across the U.K to provide security services, it was like a new market with a great profit. I also wish to start my own security service when I will finish my industry and that why I choose this topic as my business plan too. Because it is one of the most profitable businesses now days in U.K and they have been around for a quite a long time and have high market share in the U.K.
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To start a business of security service is much easy in U.K as compared to other countries because it is good market for the security company as demand is high here and supply is less than demand, so we can grow fast and established our business here. Easily a good rented place can be found for the small office and then after some contracts it can be converted to the main office. The office will be well decorated with the theme of security, and with highly technology equipment’s like laptops, CCTV cameras, and full furnished rooms. As many of my friends in security agencies so it will help me hire a proper individual for the proper job as all of fiends always talk about it. As far my security agency is concerned, I will take a steady start with small contacts. The main vision and aim of my company will be to satisfy clients and built new clients. There are three different ways to get contracts 1. Reference As we know in U.K there are so many pubs, clubs and bars which really need security service and the one of the best way to contact the owner or manger of these areas and it can easily be done by visiting regularly there. As I go to pubs and clubs every weekends and got contacts over there. And my friends also work in the security agencies so they also know what and which people requires security service and with low rates. So we can contact them and target them. Never underestimate the three things while considering clients need such as price, quality and a good reputation of the company. Clients always look for the low price with good quality and it impresses them and finally they become a regular client to you. 2. Inquiry Many of the business and government departments requires security services for the short term and for this purpose they need private security agency. So than they send such inquires to the security companies. Big security companies delegate this project to small firms and agency with better rates and quality services.
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3. Tender Open (OBS) Tender is one of the other option to make contracts , it can be issued by the government, any private company and after that any security company in case of security service can submit their proposal for the company they qualified for it.. 5.3 SWOT Strengths • • • • • Cost advantage as compared to other companies. There will be Effective communication between the client and agency. as management is the main thing so I will get strong management team There will be Customization. Return on investment should be in focus.
Weaknesses • • • • There is lack of capital. Agency has got low market share. There is no plan predictability. It is not diversified.
Opportunities • • • • • It is a good profitable. We can emerge as new entrants and expand. I have got new ideas which results in innovation Agency can grow rapidly with quality service. Agency can use new Technology and new developed equipment.
Threats • Competitors are always big threats.
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• •
Economic fall down in the world especially in Europe Change of polices by the U.K government can be threats
5.4 Target Market We will research on the markets where we can expand and grow. By far now our main focus will be on pubs, bars and construction areas where there is big need of security staff. I will try to contacts my friends which work in security agencies and take their help to build up the contacts, I will take a steady start as a mention above, will start contract where there are less than 5 security staff is required. My friends told me that companies charge 25 pounds per hour from the companies and they pay employee 7 pounds per hour. But I will make sure that my client and employees both are satisfied I will get in touch with my friends and will give them 10 pounds per hour so that they can work efficiently and I should take cost my client less than any other company as I have to gain market share so in the start I have just to build the client which is one of my aim. I will start work with less commission so I can gain more and more clients. I will also visit to bars clubs and pubs to get contacts and to satisfy our client whether they are happy with the service, I will also get the feedback from them. I have also to see what my competitors are doing and on which cost they are providing service, I wish to provide quality service as I believe in quality service which will help the agency to grow as a big security company. 5.5 Pricing Strategy As my friend work in the security companies so I know they give them 7 pounds per hour and the charge the company 25 pounds per hour. So it’s a great margin and that’s why there are getting more and more profit. But I will focus on the quality service with low cost and with good price to my employee because I am new to this market so my main focus will be to build up new clients and satisfy them as customers are the KING of any business so it’s our first job to satisfy the customers because without customer organizations are nothing. My main pricing strategy will be low charge from the client Page | 18
and a good wage to my employee and with a minimum commission to myself. I know my competitors are getting greater profit but this strategy will help me in gaining greater market share in future. 5.6 Staff Development As I have been studying business for 4 years, one of the things which I saw is that if your employees are satisfied from you, they get more motivated and they work more efficiently unlike others. So it will also be one of my objectives to satisfy my employees which will help as an advantage over my competitors. As from the feedback from the client performance will be measure and every month award and bonus of 100 pounds will be given to the best employee of our agency as it will motivate other employees to work harder and efficiently. According to my experience competition in an organization is also better for the organization in some ways so that to get best out of every one. Courses regarding safety and security services will be offered free to our employees to improve quality of our service and image of the agency. 5.7 Business Strategy The strategy which I will be using in my security agency will be cost leadership strategy and focus strategy. According to the above strategy I will be minimize my commission and charge client with low price than my competitors. My profit margin will be less than my competitors. As I have to gain the market share. According to my research companies are using profitable strategies as they are charging clients with high rate but main focus will be with low cost and quality service. Other strategy which I would be following will be focus strategy in which I will target small towns and specific areas in those small towns like bars, pubs and clubs because I am short of capital. So I have to take a steady start. This strategy will have helped me to gain market share of that area with low cost and good contacts. The main ways for Marketing and Recruitment that will be adopted by my business will be:5.7.1 Online form Page | 19
Those individuals who wished to work in our agency will be provided with online form which would be filled on our agency website. After that a candidate would be contacted via mobile or email and further contacts should be made in office face to face. 5.7.2 Advertising We will not do advertisement on large scale as we are short of capital and our main focus is build contacts with word of mouth philosophy. But still we can do advertisement in newspapers, magazines and free websites for the job and contracts for the clients. 5.7.3 Social Network Social networking is the cheaper way for marketing and advertisement for the new entrants, I will also use this way make my pages on Facebook and twitter to get more and more contacts. I will join such communities which I want to target like bars, clubs and pubs. I will spend budget on making an attractive website and pages on the internet. Social networking will help me in making a lot of contacts with cheap cost. 5.8 Services Offered by the Business • Security Personnel (Bouncer) to check the IDs while entering, to make sure no one damage the property, to keep an eye on thieves and also public as it will taught in safety tips course. • • • • CCTV operator; his work will to observe CCTV cameras live recordings; he will be fully trained security personnel who know how to operate the CCTV. Alarm Response; there work will be to handle the situation until the cops arrive. Personal Security; they will provide security to the celebrities, high profile individuals and dignitaries Executive Security; this service includes a security personnel’s geared up to protect a group of high profile individuals.
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•
Event Security; this is the top level security service which is provided by most of the security companies. Their duty is to handle all the security services of the event.
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5.9 Finances (Hendon) Setting up the Business Company Registration Insurance Licenses (SIA, CSCS, ISO9001) Setting up the Premises Least Deposit Advance Rent Furniture Stationary Office Supplies Desktops Printer Scanner Phone Fax Uniform Expenses Marketing Total Fixed Expenses Bills Telephone Gas Electricity Internet Rent per Month Council Tax Total Variable Cost Minimum Start-up capital required Total funds available
£ 100 2000-3000 10000 5800 (6 months) 1000 1500 250 150 1000 50 50 25 15 200 (Per Person) 6000 29,890 75 50 150 50 1000 175 1,500 31,390 35,000
5.10 Revenue/Sales Projection I will hire 5 employees as security member, and I will give them 6 pounds per hour because of my cost strategy assuming: £ Contract with the Client Number of security personnel Number of hours Salary paid Profit Margin Revenue for each day Total Revenue per day
£14 per hour 5 8 * 5 (40 per day) £6 per hour £8 per hour 5*8*6 300 Page | 22
Monthly Revenue Fixed Expenses Gross Profit per month 5.11 Managing Skills
8000 2500 5500
Seven essential people managing skills required to manage your business successfully are: Logical thought We should think logically before entering into this business and we should research that this idea of business will work and it’s better to enter this market. Emotional Language Only thinking logically is not enough because being right is not always enough so we should also keep focus on emotional language to motivate our self and employees as we know that fear and desire are the two main motivators in case of humans..
Organization Organization should be well managed in order to keep the employees satisfied and clients too. Punctuality is also important as stick in times saves nine. We should never forget we do not pay for working hard but working efficiently. Manners and Politeness Manner and character is very important and essential in the business field. We should be polite and kind to our clients and employees. Just because of such behavior we can make big profit and permanent clients. We should respect others and their self-esteem. Fairness We should be fair in our dealings, we should motivate people who deserve it and we should also criticize who do not work properly. Page | 23
Sales In business you need to have customers because without customers there is no business therefore every business is a sales organization. “As a businessman you have to sell yourself, your services and employees”, (Tom H., 1998). Role modeling We should be role model to our employees and clients and we should show such character that impress every one and it should be set as an example in your organization. Everyone is in need guidance to take the right steps and improve their personality.
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References • Ahmed, S.U (1981), "Entrepreneurship and Management Practices Among Immigrants from Bangladesh in the United Kingdom", unpublished Doctoral Thesis, Brunel University, London. • • Asian Productivity Organization (1985), “Commercialization of Indigevous Technology”. Compiled and Edited by Volunteers in Technical Assistance. Dr. Purohit Kumar Kanchan and Rahman Shahedur (1995), "The Development of Entrepreneurship in Bangladesh: A Study of Entrepreneurs in Garments Industry", Chittagong University Studies, Commerce Vloume- 11. • Habrison, Fredefick and Charles Myers, Education, Manpower and Economic Growth: Strategies for Human resources Development, New York, McGraw Hill Series in International Development • Islam M. Mainul (1989), "Theories on Entrepreneurship", Entrepreneurship, Edited by Rahman A.H.M. Habibur, Published by , University Grand Bangladesh, (English version). • • • Islam Nazrul and Mamun Z Mohammad (2000), Entrepreneurship Development An Operational Approach, Published by The University Press Limited, Bangladesh. Katz. J.A (1991). "The Institution and Infrastructre of Entrepreneurship", Enrepreneurship Theory and Practice, 15(3). Saha Kumar Saroj (1989), "Entrepreneurship and Economic Development", Entrepreneurship, Edited by Rahman A.H.M. Habibur, Published by , University Grand Commission of Bangladesh, (English version). • Sharif, M.N, "Itegrating Busness and technology Strategies in Development Countries", Technological Forecasting and Scial Change. Vol. 45. Commission of
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MEER MUHAMMAD IQBAL C0408kkkk0413
[
CRITICAL EVALUATION OF EXISTING THEORY OF
ENTREPRENEURSHIP & CHOICE OF ENTERPRENUERSHIP
]
MSE
Assignment
TABLE OF CONTENTS
S. No i 1.0 2.0 2.1 2.2 2.3 3.0 4.0 4.1 4.2 4.3 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 Contents Executive Summary Introduction Critical Evaluation of Existing Theories of Entrepreneurship Psychological Theories Sociological and Anthropological theories Shifted Entrepreneurial Success Factors Conclusion Introduction to Business Prevention and Detection of crime Prevention and Reduction of loss waste and damage Monitoring and responding to safety risks Ownership Structure Legal Aspects Business Competitors SWOT Target Market Pricing Strategy Staff Development Business Strategy Services Offered by the Business Financial Plan Revenue and Sales Managing Skills Reference Page No. 3 4 5 5 8 9 11 12 12 13 13 14 14 15 17 18 18 19 19 20 21 22 22 24
EXECUTIVE SUMMARY Security is one of the key problems nowadays. The philosophy of security is from old times and many years ago it became the need of every one. And is still the need of every one. The security system was established in United Kingdom in eighteen century. Rich people, celebrities and business need security for their property and their lives as it is the treat all over the world.
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Ownership of the private security company can be a kind sole proprietor business which can be run by me only. The security personal can be hired with no contract basis and as far business will grow up we shall start hiring security personals and a manager to deal with customers and employees working in it. Construction skills certificate is for those who wish to work as security personal on the constructions site and other sites relating to construction. The Security Industry Authority (SIA) is that body which regulates all the rules given by the Private Security Industry in the U.K. It is an independent body which reports only to the Home Office according to the law passed in 2001 The tough competitors in the private security industry are G4S, MITIE Total Security Management and Securitas Security Services Ltd. All these companies are private and are working for many years in U.K. We will research on the markets where we can expand and grow. By far now our main focus will be on pubs, bars and construction areas where there is big need of security staff. My main pricing strategy will be low charge from the client and a good wage to my employee and with a minimum commission to myself. According to the above strategy I will be minimize my commission and charge client with low price than my competitors. My profit margin will be less than my competitors. According to my experience competition in an organization is also better for the organization in some ways so that to get best out of every one. Courses regarding safety and security services will be offered free to our employees to improve quality of our service and image of the agency. 1.0 Introduction Entrepreneurship is a comprehensive concept that is used in various contexts. Well it is being developed by entrepreneurs, different characteristics which are found in their personalities. These capabilities and passion in entrepreneurship illustrates as innovator that bring something new or unique by combination of different factors. Innovation does not come by itself actually it comes into shape in different forms that are as follows: i) Introduction of new goods Page | 3
ii) iii) iv)
New process of production Innovative market Innovative source of supply of production
v) The reformation of any industry. According to Saha (1989), talented individuals who foresee the profitable opportunities and utilize it in order to avail this opportunity is called entrepreneurs. While Purhit and Rahman (1995), stated that simple resources cannot guarantee the growth of economic therefore the development depends on the slowly progress of the human being that utilize the capital and resource to make new product or new market and run the business (Frederick and Myers, 1991). Entrepreneurship is the main point for the development of economic growth that builds opportunities for trade by discovering and exploring new products, markets and resources (J.A. Schumpter). Moreover, these activities hold uncertainties and risks meanwhile it increases the demand for investment. The increased investment demand requires the higher buildup of capital in order to meet with the economic demand of the country. The boost level of income and total production of goods and services within economy is the growing effects of all these factors (Saha, 1989). Although entrepreneurship is a critical aspect in the economic development method but there are certain problems associated with opportunities that can be faced in practice such as market penetration strategies, potential customers, penetration strategies, suppliers of raw materials, and expert individuals.
2.0 Critical Evaluation of Existing Theories of Entrepreneurship
There are several theories for the development of entrepreneurship for the entrepreneur. Therefore, the theories have been divided into two group namely sociological & anthropological and psychological theories that are as follows in detail.
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2.1 Psychological Theories
The main difference of psychological or personal theory in the individuals is the attitude. According to the theory of attitude in difference includes the internal attitude and ability to judge and estimate the main condition that can lead a person in becoming a successful business person i.e. the entrepreneur. There are some vital theories which are discussed under: The theory of David McClelland’s came up with the need of achievement which is the main theory discussed in psychological theories on entrepreneurship. He underlined the theory of the relationship of achievement motivation or need of achievement that is representing as( n Ach) to monetary growth via entrepreneurial events. He wrote “the presumed mechanism by which n Achievement level translate itself into economic growth is the entrepreneurial class. If the n Achievement level is high, there will presumable be more people who behave like entrepreneurs-----” (Islam, 1989). Agreeing with McClelland, one can expect a fairly huge total of entrepreneurship in humanity if the normal level of the need for achievement in humanity is fairly high. Having a high n Ach it helps in encouraging the individuals in challenging and achieving the goal and also it helps them to use their abilities, knowledge and skills in order to accomplish these goals (Islam, 1989). However, the internal part of an individual is that it drives them to work harder and accomplish something for their own interest by taking private risk (Islam and Mamun, 2000). The theory of need for achievement then reflects to the strong goals orientation, fascination with the job or task which is to be done. Therefore, the entrepreneur develops the connection or intervening flexible between need for achievement and economic development. Consequently, McClelland supports the increasing level of need achievement in a culture since it stimulates economic development and entrepreneurship (Islam, 1989). Lastly, conferring to McClelland, the entrepreneurs are highly extended by achievement enthusiasm and he also emphasized on the inner sense of personal achievement rather than doing something only for the sake of social status or recognition that motivated individuals to be entrepreneur (Islam and Mamun, 2000). According to Everett Hagen’s argument the theory Page | 5
of withdrawal of status respect is social changes are that it cause psychological changes in an individual or in a group or society. He considers that the preliminary state that leads to eventual-entrepreneurial characters has the loss of status by a group of socialism (Islam, 1989). According to Hagen the theory of loss of status can occurs in four different ways. These are as follows: i) ii) iii) the collection may be displaced by force; it may have its respected symbols degraded; it may implication into a situation of position inconsistency and status are ritualism, reformism, retreatism, rebellion and innovation. Between these responses retreatism is the most vital for entrepreneurship. This is since retreatism is considered by psychological oppression of the disturbance associated with the status failure. The repressed temper results from the loss of position eventually results in afterward peer group are values of accomplishment that is being held up by mothers within the group to their sons. The reason behind this that the son’s becoming innovators is increasing and free enterprise becomes a possible passage for such propensity (Islam, 1989) . This theory can be analyzed in two major forms. Firstly this theory is post hoc that means, Hagen has exposed examples of the removal of position by viewing the first main problem that in which the economic development happened and fore status formerly viewing the position of losses that have incurred in the growth. Secondly, the disapproval has positioned long period of time as much as five or more generations which are required for the withdrawal of status in respect to appearance of entrepreneurship. The theory of motive-Acquisition is a reviewed version of McClelland n Ach theory that states that thinking power, personality, attitude, mentality, etc. are not in born both they are more elastic and changes the condition easily. So therefore this theory is more helpful in training along with development programs that effect and encourage individual towards Page | 6
iv)It may not be recognized in a new culture, and the results or responses of the loss of
achieving the goal by changing their thinking, mentality, attitude etc (Islam and Mamun, 2000). The theory of risk taking that is familiarized by Richard Cantillon and John Stuart Mill where they define entrepreneurship as a mentality to take reasonable or intended risk, this is because many people are taking huge risk and also have excessive responsibilities. In order to perform these responsibilities a person should take the Internal-External Locus of Control that is familiarized Professor J.D Rotter of Ohio University highlights the self-confidence of a person, the dependence on wealth and the exterior environment for suitable entrepreneur. The theory of internal locus of control i.e. self-confidence, it believes on one’s power and ability that motivated and individual of a person to take the plan for innovation which is very co-operatives for individual side by side society as well (Islam and Mamun, 2000). Whereas, Independence Motivation theory is similar to internal and external Locus of control theory which also emphasizes on independent idea of entrepreneurs. It theory can be expressed that people having self-confidence, independent thinking, self-controlling ability ought to avoid public condemnation for becoming an entrepreneur. Additional psychological theory of entrepreneurship named Creativity or Innovation Theory that emphasizes the physical presentation as the factor to assess whether an individual is inventive or not, this is because inventive individual use their thinking ability and talents to create new ideas and views that help them to find different techniques of training. On the opposing, Power Motivation Theory has given importance on the specialist to do a convinced task properly. Particularly for entrepreneurship development personal power, this is connected to self-interest which is important.
2.2 Sociological and Anthropological theories
According to Katz et. al., (1991), sociological and anthropological theories are based on several aspects that create entrepreneur or entrepreneurship in to practice. Since, sociocultural factors have extensive influence on the creation of entrepreneurial. On the other hand, Page | 7
Islam (1989) stated that cultural and social factors put forward high value for risk taking, innovation that produces the entrepreneurial actions more than contrasting values for entrepreneur. Well Max Weber’s protestant value is one of these ancient theories. According to Weber protestant or Calvinistic logic and values were influential in promoting entrepreneur enterprise. In this regard, emphasis was put on the work itself. It means that a person’s work itself is influential factors that can make the things go beyond expectations. However the experience is a calling act that can make an individual the successful entrepreneur. Marginal and Tension theory is another type of anthropological theories that was discovered by Robert Park during 1928. According to Robert Park (1928), that marginal individual is the person who has committed himself/herself to live in two societies. Hence, both societies are not different from each other’s but there is a slight change within each others such as antagonistic cultures like occidental and oriental cultures. In this type of situations the marginal individuals connect themselves in businesses where society widely cannot accept them. Therefore, it is likely to create more entrepreneurs from marginal individuals (Islam and Mamun, 2000). The above discussion can be concluded within several variables for the development of entrepreneurship that are as follows: • • • • • • • • • necessitate for achievement removal of status Training for shifting persons thinking, mentality and attitude danger taking approach severe belief over one’s ability and power Creative capability Personal or Authority power self-resistant in the case of utilization profit societal eccentricity Page | 8
These variables play an important role in individual’s life that becomes the entrepreneur. Well these variables only explain the initial stages of entrepreneurship development that how and where a person can become entrepreneur. Meanwhile it cannot guarantee or satisfy the individuals for post stage of entrepreneurship progress. Therefore, it is impossible to know that how an entrepreneur uses the resources such as human resource, capital, and risk management approaches and etc.
2.3 Shifted Entrepreneurial Success Factors
In this section, the author explains those factors that brought success in entrepreneurship development process. The main purpose of these factors is to overcome the shortcomings that are associated with psychological and sociological theories and moreover improved applicability. According to Ahmed (1981), the success factors of entrepreneurship are further divided into four groups. Psychological Factors: Following are the variables of psychological factors • • • • • • • • Necessitate for achievement Danger taking approach Personal or Authority Power Internal & external loop of control Motivation for autonomy Creativity Need for affiliation Intelligence
Socio-Cultural Factors: Following are the socio-cultural factors • • • Religious values Rural-Urban orientation Marginality & Tension
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•
Social cohesion and etc
Personal Factors: Following are the personal factors • • • • • Family tradition in business Previous experience Birth order Age at entrepreneurial level Education and etc
Opportunity Factors: Following are the opportunity factors • • • • Economic opportunities Peer group assistance Training opportunities and guidance Existing schemes of entrepreneurial training and guided entrepreneurship etc
According to Islam and Nazrul (2000), danger taking approach is the important success factors irrespective of location, business type and its size for the entrepreneurial ship. While researchers suggested that the risk associated to this factor should be calculated and sensible in nature. The success of entrepreneurships is not limited to innovativeness or well coordinate persistent actions for something new in fact it depends on the other factors as well like self awareness, managerial capability and adaptability, self motivation for achievement, personal initiative, knowledge of market with regards to the demand, technology development, competition, product development, political and social issues and etc. It can be concluded that the success factors of entrepreneurship has been shifted from psychological and personal factors to environmental and managerial factors because of increased complexity in businesses, demand of products, development of information, customer satisfaction and globalization of businesses. 3.0 Conclusion Page | 10
Entrepreneurship is a comprehensive concept that is used in various contexts. Well it is being developed by entrepreneurs, different characteristics which are found in their personalities. These capabilities and passion in entrepreneurship illustrates as innovator that bring something new or unique by combination of different factors. Entrepreneurship is the main point for the development of economic growth that builds opportunities for trade by discovering and exploring new products, markets and resources. The main difference of psychological or personal theory in the individuals is the attitude. According to the theory of attitude in difference includes the internal attitude and ability to judge and estimate the main condition that can lead a person in becoming a successful business person i.e. the entrepreneur. According to Katz et. al., (1991), sociological and anthropological theories are based on several aspects that create entrepreneur or entrepreneurship in to practice. Since, sociocultural factors have extensive influence on the creation of entrepreneurial. On the other hand, Islam (1989) stated that cultural and social factors put forward high value for risk taking, innovation that produces the entrepreneurial actions more than contrasting values for entrepreneur. The success of entrepreneurships is not limited to innovativeness or well co-ordinate persistent actions for something new in fact it depends on the other factors as well like self awareness, managerial capability and adaptability, self motivation for achievement, personal initiative, knowledge of market with regards to the demand, technology development, competition, product development, political and social issues and etc.
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4.0 Introduction Security is one of the key problems nowadays. The philosophy of security is from old times and many years ago it became the need of every one. And is still the need of every one. The security system was established in United Kingdom in eighteen century. Rich people, celebrities and business need security for their property and their lives as it is the treat all over the world. In early time the system of security was to hire watchmen for the night and the thief taker who used to catch the thieves in day time. It was been hired by the rich people of that time for the protection of the lives and precious things. All the security was privately hired so the private security industry started from the early times too. The other kind of private security was in the form of bodyguards which started in the era of roman and Greeks so it was also a kind of private hiring as it was the need at that time. Now the concept of security has been changed so much all over the world, every country is in the need of highly trained team of private security organization. The security service of United Kingdom has been changed so much, now they rely on highly trained and well managed security organization. They want security firm to be specialized in their field which could help the security problem in the United Kingdom. There are some points which kept are in mind and special focus must be given as far private security organizations are concerned: 4.1Prevention and Detection of crime There are so many means by which crimes can be prevented and can be easily detected. First of all the uniform of the security gauds get in notice that security is available in the specific area. CCTV cameras are of great help in preventing the crimes as people sees it so they get afraid to be caught by the police because it is been watched 24 hours. So thieves hundred times think before committing the crime in those areas where CCTV cameras are placed. With the help of these cameras crimes can also be detected by catching faces of the specific thieves and other who commit crimes.
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But the problem is process of placing these CCTV cameras are so much expensive but still it can control the crime rate and their after effects. In United Kingdom most of the security is done through CTV cameras and their observers who watch it 24 hours a day. In That way many insurance companies in United Kingdom gives a special discounts to the private security organizations and for those businesses too. 4.2 Prevention and Reduction of loss waste and damage There can be reduction in crimes if business get a proper security system for their firm and used modern technology to reduce crimes. It not only gives advantage to the business but also the live and other thing satisfaction for the employees. Everyone in that organization can become efficient in the work as they have got security for their lives. For example if some bank is going to be looted by someone is there as security guard or watching it on CCTV cameras so he or she can take urgent step and can help in the preventing of that crime , which can also help employees and customer of that bank. 4. 3 Monitoring and responding to safety risks Stand Individuals working for the security companies should be taught about the safety risk. While performing their duty they can search the bags of other people and can also checks their ID cards, it should be done to prevent the crime at the venue where duty is been performed. They can check any one on which they have doubt for the purpose of illegal weapons and drugs. They should stand firm while dealing the emergencies in that area and should not leave the place until police or any other public services arrived there for the response. In this modern era private security industry is one of the most profitable industries in the world which is getting more and more profitable day by day with the turnover of more than 3 million dollars. British Security Industry Association (BSIA) is the trade association for all the specialized security companies in the U.K. According to the figures released by BSIA there are roughly 75,000 security guards and around 300,000 others which are employed in different sectors such as CCTV operation, door Page | 13
supervision, close protection work and vehicle immobilisation and consultancy in the U.K (Bobby L, 2012). It is very important to understand the aim and gaols of the private security industry and for which purpose it is been established because it can help many individuals in making their career in this industry and can also be advantage for the business especially multinational businesses. 5.0 Ownership Structure Ownership of the private security company can be a kind sole proprietor business which can be run by me only. The security personal can be hired with no contract basis and as far business will grow up we shall start hiring security personals and a manager to deal with customers and employees working in it. 5.1 Legal Aspects Private security industry in unite kingdom is been regulated by the following two bodies: 5.1.1 Construction Skills Certificate (CSCS) Construction skills certificate is for those who wish to work as security personal on the constructions site and other sites relating to construction. The main purpose of this body is to train the personal with safety tips for the constructions sites and all to teach them all the rules and regulations regarding it. Any individual working on those must have this certificate for the working on these kinds of sites. 5.1.2 Security Industry Authority (SIA) The Security Industry Authority (SIA) is that body which regulates all the rules given by the Private Security Industry in the U.K. It is an independent body which reports only to the Home Office according to the law passed in 2001 (Private Security Industry Act 2001). SIA works is to see whether the private security agencies are working properly or not and according to the rules given by the U.K government. Page | 14
They also measure the quality of the private security agencies. They also sees weather private security agency is helping public and government in reducing the criminal rate in the country. The main fundamentals of the SIA is to approve the licences for those people who wish to work in security agencies and to look over all the contacts with other private security agencies. 5.2 Business Competitors The tough competitors in the private security industry are G4S, MITIE Total Security Management and Securitas Security Services Ltd. All these companies are private and are working for many years in U.K. It is tough competition going on among them; G4S was given the security contract by the U.K government for the Olympics 2012. But G4S failed in doing so, it was one of the big issues in the 2012, as many countries were coming to the U.K as well as tourist but G4S failed in providing security personals in the Olympics as it was in the contract. According to terms and condition they were unable to deploy the security employees and which cost them 40 million pounds cost. Demand of security in increasing day by day but the problem is with supply, there are not enough people who wants to works a security guards, and one of the other problem is that SIA is now indulge with home office and it does not issue the licenses for those who are not allowed to work in work according to the Reutter, 2012 300,000 Licenses was cancelled by the home office as those were not allowed to work in the U.K. Thus with this situation many of the small security agencies took advantage and came across the U.K to provide security services, it was like a new market with a great profit. I also wish to start my own security service when I will finish my industry and that why I choose this topic as my business plan too. Because it is one of the most profitable businesses now days in U.K and they have been around for a quite a long time and have high market share in the U.K.
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To start a business of security service is much easy in U.K as compared to other countries because it is good market for the security company as demand is high here and supply is less than demand, so we can grow fast and established our business here. Easily a good rented place can be found for the small office and then after some contracts it can be converted to the main office. The office will be well decorated with the theme of security, and with highly technology equipment’s like laptops, CCTV cameras, and full furnished rooms. As many of my friends in security agencies so it will help me hire a proper individual for the proper job as all of fiends always talk about it. As far my security agency is concerned, I will take a steady start with small contacts. The main vision and aim of my company will be to satisfy clients and built new clients. There are three different ways to get contracts 1. Reference As we know in U.K there are so many pubs, clubs and bars which really need security service and the one of the best way to contact the owner or manger of these areas and it can easily be done by visiting regularly there. As I go to pubs and clubs every weekends and got contacts over there. And my friends also work in the security agencies so they also know what and which people requires security service and with low rates. So we can contact them and target them. Never underestimate the three things while considering clients need such as price, quality and a good reputation of the company. Clients always look for the low price with good quality and it impresses them and finally they become a regular client to you. 2. Inquiry Many of the business and government departments requires security services for the short term and for this purpose they need private security agency. So than they send such inquires to the security companies. Big security companies delegate this project to small firms and agency with better rates and quality services.
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3. Tender Open (OBS) Tender is one of the other option to make contracts , it can be issued by the government, any private company and after that any security company in case of security service can submit their proposal for the company they qualified for it.. 5.3 SWOT Strengths • • • • • Cost advantage as compared to other companies. There will be Effective communication between the client and agency. as management is the main thing so I will get strong management team There will be Customization. Return on investment should be in focus.
Weaknesses • • • • There is lack of capital. Agency has got low market share. There is no plan predictability. It is not diversified.
Opportunities • • • • • It is a good profitable. We can emerge as new entrants and expand. I have got new ideas which results in innovation Agency can grow rapidly with quality service. Agency can use new Technology and new developed equipment.
Threats • Competitors are always big threats.
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• •
Economic fall down in the world especially in Europe Change of polices by the U.K government can be threats
5.4 Target Market We will research on the markets where we can expand and grow. By far now our main focus will be on pubs, bars and construction areas where there is big need of security staff. I will try to contacts my friends which work in security agencies and take their help to build up the contacts, I will take a steady start as a mention above, will start contract where there are less than 5 security staff is required. My friends told me that companies charge 25 pounds per hour from the companies and they pay employee 7 pounds per hour. But I will make sure that my client and employees both are satisfied I will get in touch with my friends and will give them 10 pounds per hour so that they can work efficiently and I should take cost my client less than any other company as I have to gain market share so in the start I have just to build the client which is one of my aim. I will start work with less commission so I can gain more and more clients. I will also visit to bars clubs and pubs to get contacts and to satisfy our client whether they are happy with the service, I will also get the feedback from them. I have also to see what my competitors are doing and on which cost they are providing service, I wish to provide quality service as I believe in quality service which will help the agency to grow as a big security company. 5.5 Pricing Strategy As my friend work in the security companies so I know they give them 7 pounds per hour and the charge the company 25 pounds per hour. So it’s a great margin and that’s why there are getting more and more profit. But I will focus on the quality service with low cost and with good price to my employee because I am new to this market so my main focus will be to build up new clients and satisfy them as customers are the KING of any business so it’s our first job to satisfy the customers because without customer organizations are nothing. My main pricing strategy will be low charge from the client Page | 18
and a good wage to my employee and with a minimum commission to myself. I know my competitors are getting greater profit but this strategy will help me in gaining greater market share in future. 5.6 Staff Development As I have been studying business for 4 years, one of the things which I saw is that if your employees are satisfied from you, they get more motivated and they work more efficiently unlike others. So it will also be one of my objectives to satisfy my employees which will help as an advantage over my competitors. As from the feedback from the client performance will be measure and every month award and bonus of 100 pounds will be given to the best employee of our agency as it will motivate other employees to work harder and efficiently. According to my experience competition in an organization is also better for the organization in some ways so that to get best out of every one. Courses regarding safety and security services will be offered free to our employees to improve quality of our service and image of the agency. 5.7 Business Strategy The strategy which I will be using in my security agency will be cost leadership strategy and focus strategy. According to the above strategy I will be minimize my commission and charge client with low price than my competitors. My profit margin will be less than my competitors. As I have to gain the market share. According to my research companies are using profitable strategies as they are charging clients with high rate but main focus will be with low cost and quality service. Other strategy which I would be following will be focus strategy in which I will target small towns and specific areas in those small towns like bars, pubs and clubs because I am short of capital. So I have to take a steady start. This strategy will have helped me to gain market share of that area with low cost and good contacts. The main ways for Marketing and Recruitment that will be adopted by my business will be:5.7.1 Online form Page | 19
Those individuals who wished to work in our agency will be provided with online form which would be filled on our agency website. After that a candidate would be contacted via mobile or email and further contacts should be made in office face to face. 5.7.2 Advertising We will not do advertisement on large scale as we are short of capital and our main focus is build contacts with word of mouth philosophy. But still we can do advertisement in newspapers, magazines and free websites for the job and contracts for the clients. 5.7.3 Social Network Social networking is the cheaper way for marketing and advertisement for the new entrants, I will also use this way make my pages on Facebook and twitter to get more and more contacts. I will join such communities which I want to target like bars, clubs and pubs. I will spend budget on making an attractive website and pages on the internet. Social networking will help me in making a lot of contacts with cheap cost. 5.8 Services Offered by the Business • Security Personnel (Bouncer) to check the IDs while entering, to make sure no one damage the property, to keep an eye on thieves and also public as it will taught in safety tips course. • • • • CCTV operator; his work will to observe CCTV cameras live recordings; he will be fully trained security personnel who know how to operate the CCTV. Alarm Response; there work will be to handle the situation until the cops arrive. Personal Security; they will provide security to the celebrities, high profile individuals and dignitaries Executive Security; this service includes a security personnel’s geared up to protect a group of high profile individuals.
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•
Event Security; this is the top level security service which is provided by most of the security companies. Their duty is to handle all the security services of the event.
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5.9 Finances (Hendon) Setting up the Business Company Registration Insurance Licenses (SIA, CSCS, ISO9001) Setting up the Premises Least Deposit Advance Rent Furniture Stationary Office Supplies Desktops Printer Scanner Phone Fax Uniform Expenses Marketing Total Fixed Expenses Bills Telephone Gas Electricity Internet Rent per Month Council Tax Total Variable Cost Minimum Start-up capital required Total funds available
£ 100 2000-3000 10000 5800 (6 months) 1000 1500 250 150 1000 50 50 25 15 200 (Per Person) 6000 29,890 75 50 150 50 1000 175 1,500 31,390 35,000
5.10 Revenue/Sales Projection I will hire 5 employees as security member, and I will give them 6 pounds per hour because of my cost strategy assuming: £ Contract with the Client Number of security personnel Number of hours Salary paid Profit Margin Revenue for each day Total Revenue per day
£14 per hour 5 8 * 5 (40 per day) £6 per hour £8 per hour 5*8*6 300 Page | 22
Monthly Revenue Fixed Expenses Gross Profit per month 5.11 Managing Skills
8000 2500 5500
Seven essential people managing skills required to manage your business successfully are: Logical thought We should think logically before entering into this business and we should research that this idea of business will work and it’s better to enter this market. Emotional Language Only thinking logically is not enough because being right is not always enough so we should also keep focus on emotional language to motivate our self and employees as we know that fear and desire are the two main motivators in case of humans..
Organization Organization should be well managed in order to keep the employees satisfied and clients too. Punctuality is also important as stick in times saves nine. We should never forget we do not pay for working hard but working efficiently. Manners and Politeness Manner and character is very important and essential in the business field. We should be polite and kind to our clients and employees. Just because of such behavior we can make big profit and permanent clients. We should respect others and their self-esteem. Fairness We should be fair in our dealings, we should motivate people who deserve it and we should also criticize who do not work properly. Page | 23
Sales In business you need to have customers because without customers there is no business therefore every business is a sales organization. “As a businessman you have to sell yourself, your services and employees”, (Tom H., 1998). Role modeling We should be role model to our employees and clients and we should show such character that impress every one and it should be set as an example in your organization. Everyone is in need guidance to take the right steps and improve their personality.
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References • Ahmed, S.U (1981), "Entrepreneurship and Management Practices Among Immigrants from Bangladesh in the United Kingdom", unpublished Doctoral Thesis, Brunel University, London. • • Asian Productivity Organization (1985), “Commercialization of Indigevous Technology”. Compiled and Edited by Volunteers in Technical Assistance. Dr. Purohit Kumar Kanchan and Rahman Shahedur (1995), "The Development of Entrepreneurship in Bangladesh: A Study of Entrepreneurs in Garments Industry", Chittagong University Studies, Commerce Vloume- 11. • Habrison, Fredefick and Charles Myers, Education, Manpower and Economic Growth: Strategies for Human resources Development, New York, McGraw Hill Series in International Development • Islam M. Mainul (1989), "Theories on Entrepreneurship", Entrepreneurship, Edited by Rahman A.H.M. Habibur, Published by , University Grand Bangladesh, (English version). • • • Islam Nazrul and Mamun Z Mohammad (2000), Entrepreneurship Development An Operational Approach, Published by The University Press Limited, Bangladesh. Katz. J.A (1991). "The Institution and Infrastructre of Entrepreneurship", Enrepreneurship Theory and Practice, 15(3). Saha Kumar Saroj (1989), "Entrepreneurship and Economic Development", Entrepreneurship, Edited by Rahman A.H.M. Habibur, Published by , University Grand Commission of Bangladesh, (English version). • Sharif, M.N, "Itegrating Busness and technology Strategies in Development Countries", Technological Forecasting and Scial Change. Vol. 45. Commission of
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