Lesson 4 I Have An Idea JA It’s My Business!. Lesson 4 Objectives Recognise how being creative and innovative are necessary entrepreneurial skills for

Lesson 4

Lesson 4I Have An Idea

JA It’s My Business!

Lesson 4

Objectives

•Recognise how being creative and innovative are necessary entrepreneurial skills for starting a business.

•Verbally defend your decisions.

JA It’s My Business! I Have An Idea

Lesson 4

Fill a Need

Know the market need and your potential competitors.

Know Your Customer and Product

Have expert knowledge of both the customer and the product.

Be Creative and Innovative

Think outside of the box, and look for new and different solutions to needs that have been identified.

Believe in Yourself

Identify likes, skills/abilities, and work to improve them.

• As an Entrepreneur you MUST :


Lesson 4

• Businesses for sale!

• For each business, you will evaluate the originality of the concept

• If it appeals to you, you can buy it at an auction

Activity: Auction - Be Creative and Innovative


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What is an auction?

• An auction is a way to buy something for which the price has not been set.

• During an auction, buyers have to decide the value of the object and how much each is willing to pay for it.

• A buyer then start with a bid, the amount he wants to pay (normally lower than what he is finally willing to pay).

• Other buyers will then decide if they want to bid higher.

• The buyer that offer the highest bid wins and buys the business.


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What is an auctioneer?

• Person responsible for running the auction.

• She or he ensures that all bids are considered.

• All sales are final.

• The highest bidder is responsible for buying the business.


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How to play this game?

• Each group will receive $60,000

• Each Auction Product contains 3-4 clues about the business

• After the auctioneer shares all the clues, bidding starts

• Group rep will raise his hand and announce a bid in multiple of $1,000 with a minimum starting bid of $10,000

• Groups cannot participate once they have spent all their money – spend wisely.

• We will not tell you how many businesses we have to auction.

• After each sale, the company will be revealed and owner gets to read aloud the information of what they bought

• There may be a re auction after all the businesses are sold

• Groups will review their purchase and determine why it is successful


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Clues about the business:

• Two brothers started their business selling self-designed shoes around Tanjong Pagar.

• The designs are fashionable.

• As the shoes are made in Asia, they are very affordable which makes the company a strong competitor with brands like Bata.


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Charles & Keith• Charles and Keith Wong founded footwear brand Charles &

Keith in 1996 with SGD100K. It provides fashionable footwear and accessories and is a major household name in Singapore today.

• The first shop was established in Amara Shopping Centre and now there are 300+ outlets in 26 countries.

• In 2007, the brand also launched a product line extension in Singapore and Indonesia – the up-market Charles & Keith Signature Label.

• In 2011, Louis Vuitton Moet Hennessy (LVMH) bought a 20% stake

Market valuation (2011): S$200 million


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• This business was started by an expert in family entertainment, who wanted to provide a fun, safe and clean place for kids to play.

• The founder of this business believed “it is kind of fun to do the impossible.”

• You could say this idea is pure magic.


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Disney• Walt Disney started out as an animator. With his house as his

office, he brought Mickey Mouse, his friends, and a lot of laughter to the world.

• Disney tried his hand at directing, screenwriting, film production, and entrepreneurship and, in doing so, made magic happen.

• One of his best ideas came from his wish to take his two daughters to places where they could enjoy some quality family time. Frustrated by the lack of clean and friendly amusement parks, he decided to create his own – which became Disneyland.

• Since then, Disney theme parks have been built around the world. As Walt said, “If you can dream it, you can do it.”

Market valuation: USD 90B(date: 15/10/12; source: Bloomberg)


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• This company started out as a small stall in 1956 along MacKenzie Road in Singapore, selling local pastries.

• People from every corner of Singapore would travel to the stall to savor this pastry.

• The pastry is stuffed and fried with specially selected spices and herbs.


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Old Chang Kee• In 1956 , it started with just a small stall in a coffee shop

outside the former Rex cinema along McKenzie Road.

• In 1986, Han Keen Juan left his MNC job and bought over the control of Old Chang Kee.

• Current presence: 69 outlets across Singapore, Malaysia and Indonesia

• Signature product: chicken curry puff stuffed with a slice of egg, curry potato and chicken.

• Product range: 22 products across three categories – O’s Family, OnStik Family and Feel’in.

Market valuation (2012): USD 30.18M (SGD 36.94M)(date: 15/10/12; sources: Bloomberg, xe.com)


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• This company’s initial goal was to improve the diet of vegetarians.

• The founder discovered his first product by accident when he left a pot of boiled wheat on the stove and decided it made a tasty cereal.

• The business promotes the concept that breakfast is the most important meal of the day.


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Kellogg• Will Keith Kellogg discovered Corn Flakes by accident in

1906.

• This was the first product sold by Kellogg’s, followed by Fruit Loops, Rice Krispies, Pop-Tarts, and others.

• A former stock boy and broom salesman, W.K. Kellogg amassed a fortune “making quality products for a healthier world.”

• Besides launching a successful business that grew to sales in excess of US$12 billion in 2009, Kellogg is recognized as one of America’s greatest philanthropists. His investment of US$66 million in the Kellogg Foundation grew to more than US$8 billion in 2008.

Market valuation (2012): USD 18,584.35 M(date: 15/10/12; source: Bloomberg)


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• This business introduced consumers to natural ingredients like aloe vera, cocoa butter and jojoba oil.

• Minimal product packaging and social awareness are top concerns.

• This entrepreneur’s vision is to avoid any animal testing.

• The business believes in the importance of human relationships and trades with more than 35 suppliers from approximately 25 countries.


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The Body Shop

• The Body Shop was founded by Anita Roddick. She opened her first store in England with 25 hand-mixed skin and hair care products.

• Today, The Body Shop has over 1,900 stores and more than 77 million customers in 50 different countries. It is estimated that The Body Shop sells a product every 0.4 seconds.

• Before her death in 2007, Roddick’s net worth was estimated at more than US$200 million.

Market valuation (2012): US$ 270 million(date: 15/10/12; source: third party article


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• The founder of this company originally started out making Singapore food known to the market in Taiwan.

• In 2000, he grabbed an opportunity sell freshly baked breads and buns which are visually creative and attractive.

• Threatened by copycats, he decided to change his business to promote and sell a lifestyle rather than just products.

• The company’s philosophy relies on innovation, creativity, quality food and lifestyle trends.


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BreadTalk Group• Breadtalk was founded in 2003 by George

Quek. It revolutionized the concept of bakeries with clean lines and 'see-through' kitchens.

• The first outlet started in 2000 at Bugis Junction. The Group now operates 100 bakery outlets across Singapore, Malaysia, Thailand, Hong Kong and China.

• Famous brands include Din Tai Fung, Toast Box and Food Republic.

• The Group has won top awards such as the Singapore Prestige Brand Award 2008, Most Popular Brand 2002-2005, Super brand status 2002-2003 and E&Y Emerging Entrepreneur 2006.

Market valuation (2012): USD 134.91 (SGD 164.91M)(date: 15/10/12; source: Reuters, xe.com)


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• The founder developed a revolutionary formula for manufacturing milk chocolate.

• Innovative products like Reese’s, Kit Kat, Twizzlers and Kisses make this business a really sweet deal.

• This business started when a candy manufacturer decided to produce sweet chocolate to coat caramels.


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Hershey’s• Milton Hershey founded Hershey’s in 1894.

In 1903, he broke ground in Hershey, Pennsylvania, to build the world’s largest chocolate factory.

• The company is the leading manufacturer of chocolate confections, with net sales of US$5 billion in 2009.

• The company has more than 13,000 employees and its products can be found in more than 90 countries.

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Market valuation (2012): USD 16,167.57 M(date: 15/10/12; source: Bloomberg)


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• A chartered accountant, the founder started his career in London in the music business working for Virgin Records.

• When the founder bought this company for 1 Malaysian Ringgit, it was heavily in debt and only had 2 aircraft.

• The founder wanted to bring low cost airfares to Asia.

• He made its advertising slogan - “Everyone can fly!”


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Air Asia• Tony Fernandes was a pioneer of low cost airfares in

Asia.

• Air Asia was named “Best Low Cost Carrier in the World” at the World Airline Awards in 2012.

• AirAsia operates with the world's lowest unit cost of USD 0.023/ASK and a passenger break-even load factor of 52%, which is very low for the airline industry.

• It has expanded it’s operations beyond Malaysia to include local flights in Thailand, Indonesia, Japan, India and the Philippines and has 5,137 employees.

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Market capitalization (2013): SGD 2.75 billion


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Who purchased companies with the most value?

Anybody wants to sell your business by a re-auction? Anybody wants to bid for it?


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• 3 minutes to list as many auction business and why each business is successful.

• The group with the most number of answers wins.

Learning Challenge:


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• Write your name.

• Complete the journal at home.

DON’T FORGET TO :


Lesson 4

End of Lesson 4


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Lesson 4 I Have An Idea JA It’s My Business!. Lesson 4 Objectives Recognise how being creative and innovative are necessary entrepreneurial skills for