New Venture Creation Essay Example | Topics and Well Written Essays - 1500 words

New Venture Creation - Essay Example The creation was undertaken by employing a team effort for three years. Business and economic decisions were made throughout this period, with a successful financial position being achieved. By the end of the three years, the SimVenture Creation had accumulated a total profit of ?20191. The venture was making a sale of up to 60 units every month. The closing year therefore depicted a strong business portfolio for the venture. Financial Achievements The simulation started with a default start-up capital of ?10,000. Over the next three years, the running of the venture was to be done by all team members, and annual results filled at the end of every year. This process engaged numerous activities that when combined would determine the financial position of the SimVenture Creation. The underlying interest was to take advantage and exploit emerging business opportunities, while accounting for the welfare of the firm. The entrepreneurial position of the venture was highly dependent on the decisions made by the team members. All the members embraced the fact that a successful financial position is dependent on the firm’s culture. ... By the end of the second year, the venture had been fully operationalized. In the same period, financial stability had been realized as income levels surpassed business expenditures. In the final year of simulation, entrepreneurial opportunities had been fully exploited. Legal, social and economic factors in the operational environment had been accounted for in the two previous financial periods. Year one and two had fully integrated market research to determine the market loops that the venture sought to account for. Business-customer interaction had been enhanced in the process, aided by the strong relationship that the venture realized with its suppliers, advertisers, business contractors and creditors. Production and sales performance was matched with the outcome of market research undertaken by the entrepreneurial team. As a result, sales increased, subcontracting was alleviated, customers accessed sales on credit and operational costs were significantly cut. Cost cut was realiz ed through reduced hours of work and the fact that optimal experiments had been done. Cash flows remained dynamic, with debtors, creditors, sales, revenues and expenses being fully accounted for. Sales had hit highs of 60 units for a month and a profit of ?20191 was recorded by the close of business at the end of the third year. Key Decisions Made Management decisions The management is a critical functional organ of the SimVenture Creation. Since the running of the venture was undertaken by an entrepreneurial team, each team member was charged with a decision making responsibility that was subject to the approval of the team. The functional areas of the venture were the primary basis