NCV 2 New Venture Creation Hands-On Support Slide Show (Module 1)
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The document outlines a level 2 course on new venture creation, covering the business environment, market needs, and financial requirements. It discusses various organizations in South Africa, including non-profits, government entities, and private businesses, along with their roles in the economy. Additionally, it explores business categories, the value chain, marketing principles, and the importance of professional associations.
NCV 2 New Venture Creation Hands-On Support Slide Show (Module 1)
- 1. New Venture Creation: Level 2 1 New Venture Creation: NCV Level 2New Venture Creation: NCV Level 2
- 2. New Venture Creation: Level 2 2 New Venture Creation: NCV Level 2New Venture Creation: NCV Level 2 Module 1: The business environment Module 2: The markets & needs for a new venture Module 3: Financial requirements for a new venture
- 3. New Venture Creation: Level 2 3 Module 1Module 1 The business environmentThe business environment
- 4. New Venture Creation: Level 2 4 In Module 1 we shall be covering:In Module 1 we shall be covering: the structure and roles of different organisations within their own industry in South Africa the concept of a market and how to market products and services what market positioning is the role of professional associations in the business sector
- 5. New Venture Creation: Level 2 5 The 3 types of organisationsThe 3 types of organisations operating in South Africaoperating in South Africa Non-profit organisations Non-profit organisations Government organisations Government organisations Private business organisations Private business organisations
- 6. New Venture Creation: Level 2 6 Government (public)Government (public) organisationsorganisations • offer goods & services to the public • sometimes compete with private business • are fully or partly owned by the State (the government)
- 7. New Venture Creation: Level 2 7 One example ofOne example of a government ora government or public-ownedpublic-owned organisation isorganisation is ………………
- 8. New Venture Creation: Level 2 8 Another exampleAnother example isis ………………
- 9. New Venture Creation: Level 2 9 The role of government organisationsThe role of government organisations ● facilitating economic growth by providing finance to ‘would be’ entrepreneurs ● protecting the public against malpractice by private organisations (e.g. Public Protector) ● providing specialised services (e.g. National Lottery)
- 10. New Venture Creation: Level 2 10 Refuse removalRefuse removal ElectricityElectricity ?? ?? ?? The role of government organisationsThe role of government organisations Providing Essential ServicesProviding Essential Services ??
- 11. New Venture Creation: Level 2 11 Rail linksRail links Sanitation (sewage)Sanitation (sewage) ?? ?? The role of government organisationsThe role of government organisations Providing InfrastructureProviding Infrastructure
- 12. New Venture Creation: Level 2 12 Non-profit organisationsNon-profit organisations • aim to uplift & provide support to communities • do not seek profits • rely on financial support from the communities they serve • are privately managed by community groups e.g. churches
- 13. New Venture Creation: Level 2 13 One example ofOne example of a non-profita non-profit organisation isorganisation is ………………
- 14. New Venture Creation: Level 2 14 Another exampleAnother example isis ………………
- 15. New Venture Creation: Level 2 15 The role of non-profit organisationsThe role of non-profit organisations ● providing specific medical support to people (e.g. Hospice) ● providing protection for animals (e.g. SPCA) ● protecting the environment (e.g. World Wildlife Fund – WWF) ● providing emergency relief in the case of natural disasters ● supporting the ‘arts’ in the country (e.g. Grahamstown Arts Festival) ● lobbying for specific causes (e.g. Treatment Action Campaign – TAG)
- 16. New Venture Creation: Level 2 16 Business organisationsBusiness organisations • are the driving force of any free-market economy • accept risks in pursuit of profits • offer products and/or services on the open market
- 17. New Venture Creation: Level 2 17 An example ofAn example of a businessa business organisation thatorganisation that sellssells goodsgoods on theon the open market isopen market is ………………
- 18. New Venture Creation: Level 2 18 An example of aAn example of a businessbusiness organisation thatorganisation that sellssells servicesservices on theon the open market isopen market is isis ………………
- 19. New Venture Creation: Level 2 19 The role of business organisationsThe role of business organisations ● staying in business ● helping to grow the economy ● creating wealth for the country ● creating employment opportunities ● paying taxes to the government ● providing important services
- 20. New Venture Creation: Level 2 20 The value chain of aThe value chain of a businessbusiness
- 21. New Venture Creation: Level 2 21 Outputs • products • services Outputs • products • services Inputs • raw materials • information Inputs • raw materials • information TransformationTransformation
- 22. New Venture Creation: Level 2 22 ProductionProductionPurchasingPurchasing Core activities in the value chainCore activities in the value chain DistributionDistribution MarketingMarketing
- 23. New Venture Creation: Level 2 23 ProductionProductionPurchasingPurchasing Support activities in the value chainSupport activities in the value chain DistributionDistribution MarketingMarketing ProcurementProcurement Technology developmentTechnology development HR ManagementHR Management
- 24. New Venture Creation: Level 2 24 ShareholdersShareholders CustomersCustomers Key stakeholders in a businessKey stakeholders in a business SuppliersSuppliers CommunityCommunity BusinessBusiness EmployeesEmployees GovernmentGovernment
- 25. New Venture Creation: Level 2 25 Business categoriesBusiness categories Primary Industries Primary Industries Secondary Industries Secondary Industries Tertiary Industries Tertiary Industries
- 26. New Venture Creation: Level 2 26 An example of aAn example of a business sectorbusiness sector in the primaryin the primary category iscategory is ……………………
- 27. New Venture Creation: Level 2 27 An example of aAn example of a business sectorbusiness sector in the secondaryin the secondary category iscategory is ……………………
- 28. New Venture Creation: Level 2 28 An example of aAn example of a business sectorbusiness sector in the tertiaryin the tertiary category iscategory is ……………………
- 29. New Venture Creation: Level 2 29 The contribution of these categories to the GDP of South AfricaThe contribution of these categories to the GDP of South Africa Primary, 11% Secondary, 24% Tertiary, 65%
- 30. New Venture Creation: Level 2 30 The contribution of the major business sectors to SA’s GDPThe contribution of the major business sectors to SA’s GDP 2.4% 2.4% 3.7% 6.2% 7.4% 9.7% 13.9% 14.7% 19.5% 20.1% Electricity/water Construction Agriculture Personal Services Mining Transport W/sal/retail Govt Services Manufacturing Financial Services
- 31. New Venture Creation: Level 2 31 Principles of business marketingPrinciples of business marketing Business marketing is the decision and effort by a business to develop a need-satisfying product or service and sell it successfully to customers. Key principles are: ● A product is manufactured ● A service is delivered ● Success will only happen if there is a need for the product or service e.g. a need for food, clothing, security or social contact ● Success is measured by making a profit while meeting the identified need
- 32. New Venture Creation: Level 2 32 A product:A product: • is tangible – it can be seen, felt, held, tasted, smelt and owned • is bought in exchange for something of value (e.g. money) • normally comes in some kind of packaging • is owned by the customer
- 33. New Venture Creation: Level 2 33 A service:A service: • cannot be held, seen or touched – this is called service intangibility • cannot be separated from the person providing it – this is called service inseparability • will depend on how professional the person providing it is – this is called service variability • Cannot be ‘stored’ for later use like a product – this is called service perishability
- 34. New Venture Creation: Level 2 34 The principles of trade that define marketingThe principles of trade that define marketing Needs, wants, demandsNeeds, wants, demands ExchangeExchange ValueValue
- 35. New Venture Creation: Level 2 35 The difference between needs, wants & demandsThe difference between needs, wants & demands NeedsNeeds WantsWants DemandsDemands
- 36. New Venture Creation: Level 2 36 PricePriceProductProduct The 4 P’s of marketingThe 4 P’s of marketing PlacePlace PromotionPromotion
- 37. New Venture Creation: Level 2 37 In-store promotionIn-store promotion AdvertisingAdvertising PromotionPromotion Direct MarketingDirect Marketing Personal SellingPersonal Selling • inform • persuade • remind • inform • persuade • remind PR (sponsorship)PR (sponsorship) PR (brochures)PR (brochures)
- 38. New Venture Creation: Level 2 38 Market positioningMarket positioning is based on theis based on the competitive advantagecompetitive advantage of a business – for exampleof a business – for example a superior ……………….a superior ………………. ……………………………………. is the. is the competitive advantage ofcompetitive advantage of Coca-Coca-
- 39. New Venture Creation: Level 2 39 TheThe internalinternal strengths & weaknesses of a businessstrengths & weaknesses of a business Strengths • quality products • cost effective manufacturing • skilled & motivated employees • strong brand identity in marketplace • good business location Strengths • quality products • cost effective manufacturing • skilled & motivated employees • strong brand identity in marketplace • good business location Weaknesses • limited capital • insufficient staff • limited distribution capacity • too few products Weaknesses • limited capital • insufficient staff • limited distribution capacity • too few products
- 40. New Venture Creation: Level 2 40 TheThe externalexternal opportunities & threats for a businessopportunities & threats for a business Opportunities • growth in chosen market • increase in middle class income • new distribution methods • export market opening up Opportunities • growth in chosen market • increase in middle class income • new distribution methods • export market opening up Threats • new competitors entering market • customer needs & wants changing • labour unrest in country • economic recession Threats • new competitors entering market • customer needs & wants changing • labour unrest in country • economic recession
- 41. New Venture Creation: Level 2 41 Professional associationsProfessional associations • organisations to which professional people such as accountants, engineers, lawyers and teachers belong • ensure standards of professional ethics & integrity are maintained amongst members • provide professional training & accreditation for members • provide access to networking opportunities and job information
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