Running head: NEW BUSINESS VENTURE 1

New Business Venture

Sakshi Manot

BUS 651 Entrepreneurship and New Venture

West Cliff University

Prof: Sushil Pant/ Bibhusan Bista

24th June 2019

Abstract

In this assessment it includes about the case study and the answers of the questions asked in the

case. It also includes about the action that has been taken is ethical or unethical. It also provides

some of the solutions to the action mentioned in the case. Lastly, includes about the major

learning from the case study and linking it with the learned course lessons.

Keywords: entrepreneurship, ethics, learning, ethical behavior

Entrepreneurship

In today’s world the word entrepreneurship s being very common word. We can also see that

many entrepreneurs are growing and aspiring day by day. As in the modern entrepreneurship

there should be something that can transform the world. Also to be an entrepreneur there might

be various opportunity and challenges that can be occurred, a good entrepreneur is able to grab

the opportunity and overcome from the challenges. As entrepreneurship is an opportunity driven

and it is an ability to convert the idea into an opportunity[ CITATION Mar07 \l 1033 ].

Ethics

There are some initial works in the management which have direct connection between ethics

and entrepreneurship. On the basis of ethics, the entrepreneurs is able to differentiate them from

the one who are not entrepreneurs. Ethics is considered as a branch of a philosophy which is used

to study ideal behavior and idea way of human being. It is also known as the guiding principle

which is concerned with our moral values[ CITATION Har09 \l 1033 ]. It can be formed either by

society, community or the religion[ CITATION War00 \l 1033 ].

Case Study

In this case, it includes about the three case studies and discussed about the ethical decision

process that an entrepreneur is handling. We will summarize the situation, look if entrepreneur

took ethical decision or not and provide some alternative situation.

Rim Job

According to case, for wheel rims, Jeremy decides to do role play as a salesperson. He will also

get commission on the basis of the bulk sale and the complete order of the rims at the limited

cost. As rims were not considered as a selective pick for the customers, so Jeremy decided to

adopt the unusual approach, where the young students would come and he used to pay them to

visit the store and ask students to ask about the rims. With this he could show the shop owner

about the demand of rims and also could fake customers so that he can grab a huge order from

the shop owner and his motive can also be fulfilled at the minimum cost and he can also grab the

commission.

Through his unconventional approach he was able to sell the rims, but this

can lead him towards the negative impact with the shop owner and also their relationship,

because of that in any product they will not be able to trust him. With this step it can affect him

for the long term. If in the coming days, if the product doesn’t get good response then that can

hamper him and also the product. This can impact both the manufacturers as well as the shop

owners[ CITATION Sal11 \l 1033 ]. The technique that Jeremy choose is totally unethical and it

cannot be sustained for the longer period of time.

As being a successful entrepreneur he was able to make a lot of corporate

customer in the business world. Instead of choosing unethical behavior, he could have chosen the

ethical approach to search and survey about the potential customers for the product. He could

also explain about the product either theoretically or practically. Though it would consume a bit

of time but would be easy for the long run. That can also be helpful in the product recognition,

advertising about the product and also to maintain personal as well as professional relation. On
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the basis of his expertise he had also a chance to build his credibility. He could also judge the

forecast towards the success of the product in the market.

Following such a way, he would be able to create a good image and he

shouldn’t convince the shop owner to buy the product. The situation would be opposite and the

shop owners himself would like to buy the product.

Empty Suits

According to the second case, with his project Fred was willing to attract the angel investor, who

though that he had a team who is collaboratively working with him. As the whole situation was

just a fake where Fred called his attractive friends and introduced them as a team member while

he was presenting, the pitch to the angel investors, as he had no team who would collaboratively

work with him. After calling his friends as a team member, the investor was convinced and they

were also satisfied with his presentation.

Presenting the unrelated members as a team member, Fred took a huge risk.

Because of his behavior the investor could easily ask them about their previous experience and

also their working experience, which would create a huge problem for Fred. With this action

even he could lose the investment that they were doing in the project and this could be a problem

and he had to fight to convince other investors to finance in his project. If he would got caught

by the investors than with this he could not only lose this project but also many other projects

which he can get in the near future. Fred’s this act is completely unethical and this can lead him

towards heavy loss and can also hamper in the investment now or in the future.

Fred could have also handle this situation ethically ad with his honesty. He

could have analyzed the situation and honestly seek for the potential investors. He could also be
NEW BUSINESS VENTURE 6

able to make them clearly understand about the situation and could be able to hire some people

from the help of the investors.

He could also be able to build close relation with the investors and could

convince the investor about the project in which they are investing in. following ethical

principles and with his honesty he had a chance that he could build the long run relationship with

the investor and also the close relation with them. Fred also had an opportunity to use his

expertise as his assets and can impress the investors rather than impressing and spoiling

everything in just one meeting.

A Moving Disclosure

According to this case, Susan has decided to change the location of the company and also inform

about this to her employees. Another hand she also had a high pressure for maintaining the

production level. If certainly she says about the changing of the location than the employee

would start leaving and would look for new job as per their convenient. Employees can also be

demotivated towards the work which can also hamper the production level. According to me it is

ethical that she decided to inform the employee about shifting of location, though there was a

huge risk in declining the production level.

Employees are considered as the great assets of the organization. As per the

Susan decided it would be very helpful for the employees to think about themselves and decide.

At the same time the company can also maintain its reputation in the employee’s eye. After the

decision has been communicated properly than she can also motivate her employees.

After making this decision, she was able to protect the reputation of the

company in any other new location and new employees. Before announcing it publicly, she
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decided to first tell about this to the employees, so this also shows that she is very responsible

towards her employees and also wanted to express to the employees rather than they knowing it

from any other sources[ CITATION Fit \l 1033 ].

Lesson Learned from the Case Study

Case study basically talks about the ethical behavior of an entrepreneur, as this is considered as

the important factor which helps to define entrepreneur as well as the reputation of the

business[ CITATION Spi16 \l 1033 ]. As the ethics which they follow differentiates them from the

entrepreneurs and non-entrepreneurs. For the short term, the way they adapt unethical behavior

can be harmful for them for the long term. Any business in order to sustain in the market and

maintain its reputation they should be ethical and should be able to take decision

ethically[CITATION Fon \l 1033 ]. Also from this case, I learned that while making any decisions

you should be ethical which helps you to sustain the business in the market and also is able to

gain the trust of the customer as well as stakeholders.

Ethical behavior

Ethics is considered as a systematic approach, analyze and distinguish between what is right or

wrong. Within an organization the decision that has been taken can be influenced by the ethical

culture which has been maintained for the longer period of time[ CITATION Tur18 \l 1033 ].

Because of the ethical culture followed in an organization that can attract more customers and

also the employees want to work with such organization. With the ethical behavior of the

organization, the company is also able to attract a lot of investors and maintain the reputation of

the organization with high share values.

Conclusion

In simple way, if the business is following ethics than that can equally benefit all the parties who

are involved in the business. Being ethical is the best option rather than creating bad reputation

in the market. We should always be careful while making any decisions. One simple mistake can

ruin the reputation of the organization. Having ethical values within an organization than that can

lead towards the great success now as well as in future and is also able to maintain the good

reputation of the company. So, the company should follow ethics, as it is the important factor of

every organization.
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References

Fitzsimons, D., Martin, J., Mc Cormack , B., & Spring, R. (2014). The Importance of inspiring a

shared vision. International Practice Development Journal, 4(2).

Fong Wu, C. (2002). The Relationship of Ethical Decision Making to Business Ethics and

Performance in Taiwan. Journal of Business Ethics, 35(3).

Harris, J. D., Sapianza, H. J., & Bowie, N. E. (2009). Ethics and Entrepreneurship. Journal of

Business Venturing, 24(5), 407-418.

Mariotti, S., & Glackin, C. (2007). Entrepreneurship: Starting and Operating Small Business .

Pearson Prentice Hall.

Salehi, M., Saeidinia, M., & Aghaei, M. (2011). Business Ethics. International Journal of

Scientific and Research Publication, 2(1).

Spinelli, S. (2016). New Venture Creation: Entrepreneurship for the 21st Century. Mc Graw

Hill.

Turyakira, P. K. (2018). Ethical practices of small and medium-sized enterprises in developing

countries: Literature analysis. South African Journal of Economic and Management

Science, 21(1), 1-7.

Warrell, R., & Appleby, M. C. (2000). Stewardship of natural resources: definition, ethical and

practical aspects. Journal of Agricultural and Environmental Ethics, 12(3), 263-277.

CLO Applied Learning Assessment

1. Discuss your initial thoughts about the solution/challenge/aspect presented in the video

The person who can use the creative and innovative ideas and is not afraid of taking risk and

aims to achieve the desired goal and starts a business is known as an entrepreneur[ CITATION

Heb89 \l 1033 ]. Also as shown in the video Mala Thapa Magar is also a young entrepreneur and

she got influenced by her teacher in the allo industry. She started the business in 2009, she

opened a partnership business. As she didn’t had any of the land so he got the land on lease and

she is doing a business on that land. To run a business you should be motivated and be

passionate about it. Though she was the student from humanities background but also she was

running a business successfully. It doesn’t matter which ever stream you are from all is what

makes you successful is your self-motivation and passion. When she first started her investment

was only 1 lakh rupee and her partner investment was also 1 lakh so total 2 lakh rupee but now

she has almost 50-60 lakh material in stock. Her business model was to gather the raw material

from the Allo plant and process them and produce thread and clothes and sell them to various

seller from Nepal or many different countries. Though allo is only found in Nepal and it is very

famous among foreigner so, she thought to start a business because that can be the good

opportunity for her. Day by day she is expanding her business and she just not only have local

customers but she also has foreigner customers. As in each and every business there are always

ups and down. As sometime she does a really good and she earns a lot of profit but sometime it

is not good as she expected but she didn’t lose hope and she keeps on trying and trying. She

believes that rather than going abroad and struggling there is better to find an opportunity and

work in the home country and also provide employment to the unemployed peoples. Allo is only
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found in Nepal but the young skilled people are going abroad to struggle there rather than doing

something better in their home country only, so that is the main challenge.

2. What you would do different in terms of the solution presented in the video

To solve the problem of skilled people migrating to other countries, I would try to make them

understand that there are lot of opportunity here in your home country so you can work here and

can provide employment to many peoples. As there are lot of various opportunity so you should

be able to understand and find it in a right time so that you can be successful and run a business

smoothly and earn maximum profit.

3. Relate the content of the video to one of the CLO’s in the course

According to me, the video is related to CLO4 because in CLO 4 it talks about the thinking big

and finding new venture and grabbing that opportunity and growing big. Also, as per shown in

the video the Mala also followed the same not going by the rule, she thought it can be the good

opportunity for her to start her career as an entrepreneur, so she got to know about the allo and

she researched about it. She doesn’t want to make her business too big for now but she want to

make her product known as most renowned brand and she is hardly working for it.

One of the example is the Himalayan dog chew. It is a traditional snack of Nepal called churpi but it is

little different for dogs. These days Illam make tons of dog chew and export it to foreign countries. One

of the biggest dog chew selling company is the Himalayan dog chew ltd. It exports about dog chew

worth 5-20 million every year while it is also giving employment opportunity to the local people.

References

Hebert, R. F., & Link, A. (1989). In Search of the Meaning of Entrepreneurship. Small Business

Economics, 1(1), 39-49.