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Entrepreneurship & Small Business Management<br /> by <br />Asha Sharma<br />SubhamoySanyal<br />ZeeshaanIqmar Ahmed<br />ProsenjitChakraborty<br />Priyanka Roy<br />
IT’S ALL ABOUT MONEY, HONEY<br />Nirmal Jain came from a family of commodity traders. After completing his post graduation from IIM Ahmedabad, he decided to start his own venture rather than take up a job in the corporate world. Starting Probity Research, an equity research firm, really paid off. The nineties was the time the Indian masses had discovered the stock exchange as an investment vehicle and they needed all the advice they could get to understand this uncertain environment. By 1999, Probity Research had a turnover of almost one crore and things were looking good. But Nirmal was not happy as he wanted to try for something much bigger. <br />
1) Do you think Nirmal Jain took a gamble by starting Indiainfoline?<br /> Nirmal Jain made the biggest gamble of his life in 1999, when he was running Probity Research, a stock market research firm with revenues of nearly Rs 1 crore. But Jain was dissatisfied. A steady but small business was no fun. So, he took the huge volumes of research data, their chief source of revenue, and put it on the Internet. Convinced that it was a foolish move, many of his core team members quit. But Jain had just discovered the power of the Internet. It offered him a bigger scale than his firm could ever reach otherwise. Thus, India info line was born in May 1999. <br />Nirmal Jain took the gamble for a variety of reasons ; some of them are listed below:<br /> Control : He wanted to be his own boss and make his own decisions. <br /> The Idea: He passed out from IIM Ahmedabad which proves that he could have easily got some job with high salary and live a safe and secure life. He also had a family business of commodity trading , which he happily opted not to join. All this is because he had an idea which he felt can rock the world. <br /> Flexibility: He is a entrepreneur who devoted time to only one venture at a time & focus on the product by spending more time on the job.<br />
Timing of entry<br /> Scale of entry <br />Three decisions are crucial to start a business which Mr. Nirmal Jain did carefully. Decisions areas follows ;<br />Choosing<br />the market<br />Any successful business<br />
1] Choosing the market: He segmented his market in to two ways; educated people who can do business through internet and uneducated people who can do business by making calls to the company.<br />2] Timing of Entry : He knew that the timing of his business has come .i.e. the perception of people of India is changing and at the same time government is also taking initiatives to develop this sector.<br />3] Scale of Entry : He also chose this very smartly.<br />
technical<br />social<br />political<br />economic<br />Change in perception : the perception of the people of India changed for investing & the savings increased as well.<br />Change in technology ; this is the reason why his business expanded within short span of time<br /><ul><li>Level of savings.
Rising Dissatisfaction of Job:</li></li></ul><li>Edward De Bono Six Hat<br />Nirmal Jain wears Green hat of Edward De Bono Hat and he also wears Yellow hat is positive thinking.<br />Green hat -- creativity and innovation<br />Yellow hat – positive thinking<br />
One of the most important external factor for the success of India infoline are the qualities of Nirmal Jain :<br /><ul><li> Ambitious
Enthusiastic & passionate</li></li></ul><li> Chulha, a division of Purnima Viands Pvt. Ltd. is Bangalore based tiffin-service provider.<br />Just like any dream, Chulha also started small as a simple localized dabbawala providing cooked food in steel containers to a small part of Bangalore.<br />Chulha is a partnership venture taken up by Adesh and Nishant. After completing their MBA, Adesh and Nishant got jobs in the IT sector and were based in Bangalore. Nishant was from Delhi and Adesh was from Kolkata. Both were missing home-cooked food and found the offering from the office canteen to be highly unappetizing. At this moment they came up with this unique concept of Chulha delivering home-cooked to all the working personnel. They found certain gaps in the current local tiffin service providers and accordingly they shaped up their project. They tried to bridge the gaps by introducing feedback mechanism, maintaining high quality food and using website as their important marketing tool. <br />
Mission of Chulha<br />Its main aim or mission is to ensure food being served to customers not just in terms of taste but variety and maintain quality standards, and gaining recognition in this business. It is practically serving hygienic and delicious food.<br />Goals & Objectives<br />
SOUP & CHOWMEIN</li></li></ul><li>The Price Of the Meal are as follows :<br />With all these extra services that they are planning on providing, they feel they can charge a premium. Currently, the usual rate for a veg tiffin is Rs. 30. With the average cost of a vegetarian tiffin at Rs. 15, they can afford to charge the same as others but they decided to go with a slight premium. Veg meal @ Rs. 35 Non-veg meal @ Rs. 45<br />Their justification is that the average IT professional will be willing to spend a little more for better food. <br />
MARKET SCENARIO ...<br />Past: No other quality food and delivery service provider was present.<br />An overview of the market scenario<br />Present: Chulha’s aim was providing quality food & services in an affordable price. Providing customers with high satisfaction aimed for a long term business.<br />Future: Constant need for improvisation and newness as threats of new entrants are always there.<br />
Competitions ….<br /><ul><li> The business was started in April 2007 when it was the sole tiffin service in Bangalore and forced no competition.
It Began achieving customer satisfaction/recognition and loyalty – soon became a household name.
Since competition was less, charging customers a premium price for the food service seemed appropriate
But it has to keep in mind the competitions as newer tiffin services are coming up</li></li></ul><li>PESTE ANALYSIS<br />Technological<br />Economical<br />Political<br />Environmental<br />Social<br /><ul><li>Taste of food is different.
Since Bangalore is a true cosmopolitan city, it has people from different parts of India. So in order to cater to the tastes and demands of non-locals, Chulha plans to serve cuisines from other states to satisfy its customers.
Providing Value for Money is the aim of Chulha, keeping operational costs low and moreover price of food is least effort by economic conditions in the country- Recession or Inflation </li></ul>Not applicable<br /><ul><li>Ordering of foods online along with dedicated feedback methods through official website.
Aim to optimize for different search engine.(e.g.; Google).
Inspectors to be appointed to check level of pollutions and proper disposal of waste by the municipality.
Research to use renewal source of energy.</li></li></ul><li>SWOT Analysis<br />Threat<br />Weakness<br />Strength<br />Opportunity<br />Customer Satisfaction<br />Variety of food being served to satisfy the needs of a large customer base including locals & non- locals<br />Affordable Range of Prices<br />Effective delivery system, innovative service<br />Technological changes being implemented<br /><ul><li>To expand its business, operating all over the India
Because of its recognition its getting its due share of publicity
A large number of customers are taken by different canteens, fast food chains and other hotels.</li></ul>Limited service only in Bangalore.<br />Less knowledge of non- local foods<br />
Porter’s 5 forces Theory<br />Bargaining Power of Buyers<br />Bargaining power of Suppliers<br />Degree of rivalry<br />Threat of substitutes<br />Threat of new entrants<br />
Bargaining power of buyers<br />Bargaining power of suppliers<br />As its main customers are IT professionals where salary varies from Rs-25000 to Rs-30000 and above in a month, spending Rs-850/- on food where quality is good so here the customers usually could not bargain.<br />On getting party orders in corporate, customers can opt for schemes such as on billing of Rs-500 or more, a discount of 5% is awarded to the customers.<br />If these are loyal customers, they giving complementary<br />side dishes such as salads or papads etc. can increase the goodwill of Chulha.<br />Chulha is not directly dependent on its supplies<br />as except the use of internet , it does not use any<br />High end technology to connect with its consumers.<br />Operations and Infrastructure cost is nominal as<br />Per requirement.<br />
Degree of rivalry<br /> Threats of substitutes<br /> New Entrants<br />Competitions from the fast food chains, hotels taking <br />away a potential market share of customers.<br />Even though they had stiff competitions but still they<br />Had unique attributes like;<br /><ul><li>Quality standard.
Variety of taste.</li></ul>All these attributes were quite different to be replicated.<br /><ul><li>People usually prefer a good lunch respectively that of </li></ul> home, when at work. So, there is not a potential threat<br /> as such but owing to the changing food habits of people,<br /> they tend to have fast foods as well. So, that may be of <br /> little threat.<br /><ul><li>Fast food chains are establishing themselves.
Hotels and cafeteria is corporates are the latest tend</li></ul> in this business.<br />
Edward De Bono<br />Red Hat:Connecting to emotions and feelings of People.<br />Green Hat:Being creative, analyzing growth possibilities and thinking of new ideas.<br />Yellow Hat as well because they were having a positive outlook towards expanding the business. Hence, like any dream it started a simple localized dabbawala but it had a positive approach to expand its business and to be well known.<br />
<ul><li> QUESTIONS FOR DISCUSSIONS :</li></ul>Q1) Do you think this is a viable business?<br />Yes it is a viable business.<br />23<br />
Suggested strategies for growth…<br /> Simple survival technique :<br /> This is the rule for any business. And for Chulha , delivering hygienic and delicious food in time to customers was its sole aim. There are many competitors in the market, but admist competition it had to create a niche for itself by applying for extensive strategies to offer customer “Value for money” product.<br /> Economies Of Scale :<br />Even though Chulha had less profit margins, as it made in bulk, but on the whole it did make a huge percentage of profit.<br /> Technologies that can be adapted :<br /> Appointing food inspector, who would conduct surveys in every week to ensure;<br /> a) Quality Standards are maintained<br /> b) The food is made in hygienic condition with proper ventilation, <br /> cleanliness and disposal of waste.<br /> c) The colors that are being used are strictly under proper gradation. <br />
d) The different boilers, ovens, barbecues, gas stoves should be of good standards, being used separately (veg. & non-veg.).<br /> e) The chimneys and the gas burners, ovens should checked to ensure no leakage of gas. <br /> f) to ensure other safety parameters (from employees prospective).<br /> Prestige and CSR activities<br /> Chulha should opt for different CSR activities like ;<br /> a) donating Rs-2 for every order it receives to fund an NGO’s working to educate poor children.<br /> b) It can be an active participant in the Green Movement, involved in planning trees in industrial areas to reduce pollution.<br /> c) donating food 1 Sunday of every month to organization having challenged people.<br /> d) packaging food in paper bags and other recyclable materials.<br />
Expansion of Market<br /> Opening for party orders.<br /> Opening for the education market and planning to open canteens in different colleges.<br /> Government Policy<br /> Chulha can opt for an ISO certified standards set against its quality of food, quality of ingredients used to prepare food. Using these It can set a benchmark for other restaurant which have to qualify the standards of food served by them. The government can thus standardize the quality of food served by the other food chains.<br />Self Sufficienct<br />Chulha has its own supply of raw materials and it can plan to be self sufficient in delivery of its products as well. It has its own restaurant space and has its own staff. Hence it is highly self sufficient.<br />
Q2) Are there any changes you would like to introduce in their business model?<br /><ul><li>Morning breakfast segment.
Should give franchisee to local housewives to do this business and promote Chulha in the areas where Chulha itself could not deliver food in time .
Should provide catering services to several parties and functions and even to the Airlines and Railways.
Should Organize cooking competition and award the winner and as result the company will get new ideas.</li></li></ul><li>Conclusion<br /> These case studies show a true reflection of how right attitude, proper conditioning and correct approach can lead to great success from scratch. This reflects the true essence of a small business and an entrepreneur. <br />