SBANC Newsletter
March
15, 2005
Issue
363-2005
QUOTE
"If
there is any one secret of success, it lies in the ability
to get the other person's point of view and see things from
that person's angle as well as from your own."
-- Henry Ford
FEATURE
PAPER
Concepts To
Profits: Helping SBI Student Consulting Teams and Clients to
Understand And Control Success
This
paper was presented by Michael D. Ames of California State University
- Fullerton at the joint meeting of the
United States
Association for Small Business and Entrepreneurship and the Small
Business Institute in Indian Wells,
California on January 13-16, 2005.
Most small
businesses don’t work. “What
to do about it” is a popular theme in the business literature,
and a continuing challenge for Small Business Institute directors
and their student consulting teams. (Gerber, 1995) Many small business
clients think that small business success is essentially a entrepreneurial
sales challenge in chaotic market environment. (Levinson, 1998)
Hence, they believe that progress to success is difficult to plan,
execute efficiently and track (read: an opportunistic, seat- of-
the- pants approach is the only way). More likely, success is multi-faceted
and observed market dynamics (economic drivers, sales cycles, and
network relationships) are more predictable and controllable by
experienced hands than by novice small business owners. (Miller & Sanchez,
1998; Moore, 2002)
For example, the typical
SBI small business client is trying to fit products and services
into an established supply chain and
distribution network. Even if the product or service is highly
innovative (read: disruptive to established ways of doing things)
it can be professionally marketed and sold to mainstream customers.
( McKnight 2004; Moore, 2002) Marketing is only part of the challenge.
Small businesses success is multifaceted. How the company operates
its input-transformation-output processes constrains its business
model. ( Bossidy & Charan, 2002; Rasiel and Friga, 2002 ; Schonberger,
1990; Walton, 1986; ) So does the firms ability to control needed
resources. ( Gladstone & Gladstone, 2004; Nicholas, 1993) However,
said business model is amenable to disciplined plans for achieving
dramatic, long-term growth in both profits and revenues.(Timmons & Spinelli,
2004; Collins, 2001; Kuratko and Welsch, 2001; Hanon, 1979)
Success is multifaceted,
but how does one explain the elements, interactions and predictable
consequences to undergraduate student
consulting teams, and how do the teams pass such insights on to
their clients? After all, most consulting teams are composed of
students with diverse business majors -- most of whom only take
one capstone strategy class and specialize in one functional area – only
enrolling in basic core business courses in other areas. And, most
SBI consulting clients do not have business degrees.
This paper
revisits a core SBI challenge – helping SBI student
consulting teams and clients to understand and control business
success. Five related Figures describe components of a useful
success framework that students can learn and share with clients
to create
a common understanding of what it will take for the client’s
business to succeed. The framework is a practical blend of concepts
from diverse business specialities. Using the framework as a
guide, student consulting teams can identify the SBI client’s
starting point, identify what the client must do to succeed,
and help the client prepare realistic action plans.
Read the Entire Paper...
TIP
OF THE WEEK
International Innovation and Entrepreneurship
Require Strong Property Rights
Strong legal
protection of property rights is another requirement for a business
environment to be conducive to innovation, entrepreneurial activity,
and hence economic growth. Both individuals and businesses must
be given the opportunity to profit from innovative ideas. Without
strong property rights protection, businesses and individuals run
the risk that the profits from their innovative efforts will e
expropriated, either by criminal elements or by the state. The
state can expropriate the profits from innovation through legal
means, such as excessive taxation, or through illegal means, such
as demands from state bureaucrats for kickbacks in return for granting
an individual or firm a license to do business in a certain area
(i.e. corruption). According to the Nobel Prize-winning economist
Douglass North, throughout history many governments have displayed
a tendency to engage in such behavior. Inadequately enforced property
rights reduce the incentives for innovation and entrepreneurial
activity—since the profits from such activity are “stolen”—and
hence reduce the rate of economic growth.
The influential Peruvian development economist Hernando
de Soto has argued that much of the developing world will fail
to reap the
benefits of capitalism until property rights are better defined and
protected. De Soto’s arguments are interesting because he claims
that the key problem is not the risk of expropriation, but the chronic
inability of property owners to establish legal title to the property
they own. As an example of the scale of the problem, he cites the
situation in Haiti where individuals must take 176 steps over 19
years to own land legally. Because most property in poor countries
is informally “owned,” the absence of legal proof of
ownership means that property holders cannot convert their assets
into capital, which could then be used to finance business ventures.
Banks will not lend money to the poor to start businesses because
the poor possess no proof that they own property, such as farmland,
that can be used as collateral for a loan. By de Soto’s calculations,
the total value of real estate held by the poor in Third World and
former communist states amounted to more than $9.3 trillion in 2000.
If those assets could be converted into capital, the result could
be an economic revolution that would allow the poor to bootstrap
their way out of poverty.
Hill,
Charles. 2006. "Global
Business Today" 4
ed. p. 71. New York, New York: McGraw-Hill Irwin.
CONFERENCES
Global
Automotive Conference 2005
The Global Automotive Conference 2005 will be held at Sloan
Convention Center in Bowling Green, Kentucky on April 6-8,
2005. This unique
Conference serves as a venue where global industry leaders at all
levels interact with practitioners, discuss solutions to industry
challenges, and review “best-practices” and emerging
trends.
For more information, visit: http://www.gac.ky.net
IPSI-2005
France
IPSI is holding a Symposium on Challenges in the Internet and Interdisciplinary
Research at the Hotel De La Cite in Carcassonne, France on April
23-26, 2005. Topic areas include: Education, Computer science and
engineering, B2B, B2C, E-Business Management, and more.
For more information, visit: http://www.professionalmba.com/
The
Professional MBA Seminar
The Professional MBA Seminar will be held at the Marriott Courtyard San Jose
Airport, San Jose, California on April 6-7, 2005. The Professional MBA Seminar
is a two-day market planning, product planning and financial planning seminar.
This business seminar is a practical and cost-effective version of the multiple-week,
multiple-thousand dollar executive programs, offered by some of the major business
schools.
For more information, visit: http://www.professionalmba.com/
Family
Firm Institute Spring Seminar
The Family Firm Institute is holding a spring seminar at
the
Ramada Plaza Hotel in Chicago, Illinois. The seminar is called "The Consultant's
Perspectives" and is
a
one-day
course on April 27, 2005 that enhances your personal awareness and effectiveness
as
a
consultant
to the
complex
systems of
a family business.
For more information, visit: http://www.ffi.org/conference/2005chicagospring/2005Chicago_consperspective.pdf
International Academy of E-Business
The International Academy of E-Business is holding its 5th Annual
Conference at the Hyatt Regency in San Francisco, California on
March 24-27, 2005. The theme for this year's conference is "Evolving
E-Business Concepts, Strategies, and Trends."
For more information, visit: http://www.iaeb.org
CALL
FOR PAPERS
IPSI-2005
Belgrade
IPSI is holding a Symposium on Challenges in the Internet and Interdisciplinary
Research at the University of Belgrade, Serbia on June 2-5, 2005. Topics for
the symposium include: Education, Computer science and engineering, B2B, B2C,
E-Business Management.
Submission Deadline: April 15, 2005
For more information, visit: http://belgrade.internetconferences.net/
Atlantic Marketing Association
The Atlantic Marketing Association will hold its Annual Meeting at
the Hawthorne Hotel in Salem, Massachusetts, USA on September 28-October
1, 2005.
Submission Deadline: April 18, 2005
For more information, visit: http://www.atlanticmarketing.org/
International
Academy of Business and Economics
The International Academy of Business and Economics (IABE) will hold its next
annual conference at the
Boardwalk Hotel & Casino in Las Vegas, Nevada, USA on October 16-19, 2005.
Submission Deadline: May 31, 2005
For more information, visit: http://www.iabe.org/
The
CIBER Research Institute
The CIBER Research Institute is holding its EABR Conference (business & economics)
and TLC Conference (teaching methods, styles, and administration) at the Aressana
Hotel in Santorini
Island, Greece
on June 20-22, 2005. For both conferences, there is a best paper award for the
best paper in each session. Papers winning the best paper award will be reviewed
for possible publication in one of the Institute's five academic journals. Papers
not
winning
a best paper award may be submitted for possible publication.
Submission Deadline: May 15, 2005
For more information, visit: http://www.ciberinstitute.org/EEmain.htm
Decision Sciences Institute
The 36th Annual Meeting of the Decision Sciences Institute will be
held at San Francisco Marriott (Downtown) in
California on November 19-22, 2005.
Submission Deadline: April 1, 2005
For more information, visit: http://www.dsi2005.org/
ANNOUNCEMENTS
Computer
Security Institute
The Computer Security Institute's 31st Annual Computer Security Conference
was held November 2004 in Washington, D.C. and attended by over 3,000
info
security
professionals. Now, you may view select sessions from the highest
quality, most comprehensive conference in the industry.
For more information, visit: http://www.mcb3.com/click.asp?x=19067.3B2E.7008981
2005
Excellence in Economic Development Awards
The International Economic Development Council is seeking entries for its 2005
Excellence in Economic Development Awards to be presented at the IEDC Annual
Conference September 25-28 at the Hilton in
Chicago, Illinois. The deadline for submissions is May 13, 2005.
For more information, visit: http://www.iedconline.org/annualconference/awards.html
The SBANC Newsletter is provided as
a service to the members of our affiliates: Academy
of Collegiate Marketing Educators (ACME), Association
for Small Business& Entrepreneurship (ASBE), Decision Sciences
Institute (DSI), Federation of Business
Disciplines (FBD), International Council for Small
Business Congress (ICSB), Institute
for Supply Management, The International Small Business
Congress (ISBC), Marketing Management Association
(MMA), Small Business
Administration
(SBA), Service Corps of Retired Executives, Small Business
Institute (SBI), Society for
Marketing Advances (SMA), United States Association
for Small Business& Entrepreneurship
(USASBE), U.S. Department of Veterans Affairs and Western
Decision Sciences Institute (WDSI). If you are interested
in membership or would like
further information on one of our affiliates, please
see our web site at http://www.sbaer.uca.edu
SBANC STAFF
Main Office Phone: (501) 450-5300
Dr. Don B. Bradley III, Executive
Director of SBANC & Professor
of Marketing
Direct Phone: (501) 450-5345, E-mail: donb@uca.edu
Esther
Mead, Co-Lead Development Director, E-mail: estherledelle@yahoo.com
Amanda Harris, Development Intern,
E-mail: abharris84@yahoo.com
Michael Flanagin, Development Intern, E-mail: whiffleball@aol.com
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