UNIT Entrepreneurship And Finance 11 - Glencoe.mheducation

UNIT 11 ENTREPRENEURSHIP P AND FINANCE Marketing Internship Project A Business Plan Essential How would you go about starting a Question new business? To start a new business, you must do a lot of research. You need to find a niche—a need or want that is not being fulfilled. For an online business, you need to do more research on how to build a Web site and keep it going. The steps for starting an online business are the same as for starting a brickand-mortar business. However, there are a few additional concerns with an online business, such as consumer privacy and other legal issues involving e-commerce. Project Goal In the project at the end of this unit, you will transform an idea into a business plan for a new online business. Prepare for the Project As you read this unit, use this checklist to prepare for the Marketing Internship Project at the end of this unit: Fnd out about government regulations covering e-commerce. Brainstorm ideas for an online business. The average American spends at least six hourss per week online. MARKETING CORE FUNCTIONS IN THIS UNIT NIT Marketing Information on Management Market Planning Ask friends and family members what online businesses they use and why. glencoe.com m Project Launcher View a video about strategies for getting a new product into retail stores. Project Activity SHOW WHAT YOU KNOW Complete a worksheet activity about starting a new business. 774 Unit 11 · Entrepreneurship and Finance ENGAGE Introduce the Unit Unit 11 examines entrepreneurship and financial planning. Chapter 33 explores the process of starting a business. Chapter 34 discusses the economic, natural, and human risks involved with business ownership. Chapter 35 explains how to create a business plan to give an overview of the proposed business to potential investors and lenders. Chapter 36 teaches how to identify capital needs for a business. Build Background Ask students why entrepreneurship and small businesses are important for the U.S. economy. Answers may note that entrepreneurship promotes growth in the marketplace and provides jobs. Income from jobs provides money for consumer spending on products and services, and tax revenue for government services. Ask students: What are useful qualities that entrepreneurs need to be successful? They include determination, self-motivation, selfconfidence, organizational skills, leadership ability, self-discipline, creativity, willingness to work hard and accept risk, and social skills. 774 Visual Literacy This ad promotes a company that shows Internet users that a Web site has been verified as authentic and trustworthy. How does this advertisement communicate the importance of online business to potential entrepreneurs? Unit 11 · Entrepreneurship and Finance 775 Visual Literacy Photo Caption Answer Read the copy on the ad to students. Then read the photo caption and the photo caption question to students: How does this advertisement communicate the importance of online business to potential entrepreneurs? Answers will vary. Accept all reasonable answers. Sample answer: The advertiser uses the check mark, a familiar symbol that is integrated into VeriSign’s logo. This ad communicates that by using VeriSign’s encryption technology, small businesses can thrive and expand because they can be assured that their customers’ personal information is safe and secure thanks to VeriSign encryption technology. Ask students to evaluate the visual components of the advertisement. Ask volunteers to explain how the visual aspects of the advertisement complement the text of the advertisement. The slogan is Trust the Check and the checkmark is the logo. This is the logo that consumers see when they visit a site that uses VeriSign encryption technology. The headline “How to Spot a Web Site You Can Trust” is meant to communicate that the presence of the VeriSign check logo means that the Web site can be trusted.

UNIT 11 ENGAGE EXPLORE EXPLAIN ELABORATE ENGAGE Marketing Internship Project Preview Read students the Marketing Internship Project Essential Question: How would you go about starting a new business? Because students are just starting to learn about entrepreneurship, they will likely not know the specific answer to this question, which is choose an idea and create a business plan. However, students should know that an entrepreneur would need a good product or service and a good plan. Explain to students that they will learn about creating a business plan while studying this unit. Tell students that when they are finished studying this unit, they will ask questions to find answers about transforming an idea into a business plan for a new online business. As they study each chapter in the unit, they can prepare for the Unit Project by thinking of ideas for online businesses and asking friends and family about the online businesses they use. EVALUATE MARKETING CORE FUNCTIONS IN THIS UNIT Point out to students that Chapters 33, 34, 35, and 36 will touch on two of the seven marketing core functions. Describe each of these marketing functions to students to prepare them to start studying this unit. Marketing Information Management involves gathering, storing, and analyzing information about customers, trends, and competing products. Market Planning involves understanding the concepts and strategies used to develop and target specific marketing strategies to a select audience. M A R K E T I N G glencoe.com m Marketing Internship Project Resources Send students to the Online Learning Center to watch a video and download a worksheet activity related to the topic of the Unit Project. Read the American Marketing Association quote to students: The average American spends at least six hours per week online. Explain to students that the AMA provides official definitions for numerous marketing terms in its online AMA Dictionary. Read the AMA’s definitions of e-commerce and online marketing aloud: R E S E A R C H PROJECT WORKBOOK The purpose of the Marketing Research Project Workbook is to provide a step-by-step approach for students to conduct their own marketing research study. Each chapter is devoted to key elements in the research process. Each chapter builds upon the previous chapters, and by the end of the book, students will have completed an in-depth marketing research study, complete with rationale for all decisions, a report of the findings and conclusions, recommendations based on the original research problem and study objectives, and an annotated bibliography. glencoe.com m Marketing Research Project Workbook Send students to the Online Learning Center to download the Marketing Research Project Workbook. A Teacher Manual is also available on the Teacher Center of the Online Learning Center. E-Commerce A term referring to a wide variety of Internetbased business models. Typically, an e-commerce strategy incorporates various elements of the marketing mix to drive users to a Web site for the purpose of purchasing a product. Online Marketing A term referring to the Internet and e-mail aspects of a marketing campaign. This can incorporate banner ads, e-mail marketing and search engine optimization. Ask students: How has e-commerce and online marketing helped to expand opportunities for entrepreneurs? With Americans using the Internet on the average of six hours a week, the Internet has become a low-overhead retail environment. Businesses can target specific markets using proven online marketing strategies. 775

UNIT 11 STEP 3 Connect with Your Community Marketing Internship Project A Business Plan for a New Online Business Interview trusted adults who might be potential customers of your proposed business to see if your product or service is something they would buy online. Take notes during your interviews and transcribe your notes after the interviews. Entrepreneurs continue to start up new online businesses. How can you make your dream to become an entrepreneur come true? Your Objective Scenario Each year, more and more entrepreneurs are starting up online e-tail businesses instead of brick-and-mortar retail businesses. Bank loan departments receive applications from these entrepreneurs every week. As an employee working in a bank’s loan department, you have reviewed many loan requests for small businesses. Your supervisor asked you to prepare a sample business plan for an online business to use as a guideline for reviewing loans. In so doing, you realized you had a dream of your own——to be an entrepreneur. Growing up in a digital world, you find an online business appealing, especially for your first venture. The Skills You’ll Use Academic Skills Reading, writing, social studies, researching, and analyzing Basic Skills Speaking, listening, thinking, and interpersonal Technology Skills Word processing, presentation, spreadsheet, telecommunication, and the Internet NCTE 4 Use written language to communicate effectively. NCTE 7 Conduct research and gather, evaluate, and synthesize data to communicate discoveries. Your objective is to transform an idea into a business plan for a new online business. STEP 4 Share What You Learn A Assume your class is a committee in a bank that decides o on small business loans. STEP 1 Do Your Research Conduct research to find out about online businesses. How are they hey the same as brick-and-mortar businesses and how are they different? rent? For example, how are sales taxes and consumer privacy handled? Spend time researching your interests and current trends to come e up with a viable online business idea. As you conduct your research, rch, answer these questions: What type of online business has the potential for success? What costs are involved in starting an online business? What political, economic, socio-cultural, and technological factors ors (PEST) could affect your online business? What are the strengths, weaknesses, opportunities and threats of your proposed online business? (SWOT analysis) Write a summary of your reseach. Visit online businesses on the Internet to see how they are set up. Visit government Web sites to learn about government rules and regulations for online businesses. Present your business plan in an oral presentation. Be prepared to answer questions. Use presentation software to create a slide presentation to accompany your oral presentation. Include one slide for each topic in your business plan. STEP 5 Evaluate Your Marketing and Academic Skills The business selected as well as the rationale and organization for it Your proposed marketing plan The capital needed and proposed financial statements Organization and continuity of your presentation Mechanics—presentation and neatness Speaking and listening skills Now that you have completed your research, you need to begin planning your project. Choose an online business and provide rationale for it. Decide on the organization and vendors needed. Develop a marketing plan for the business. Determine the capital needed. Prepare proposed financial statements. Write a business plan that includes all of this information . MARKETING CORE FUNCTIONS Market Planning Unit 11 · Entrepreneurship and Finance Anticipation Activity Project Objective Read the project objective aloud to students: Transform an idea into a business plan for a new online business. Then ask students to think about what they learned about entrepreneurship and business plans in Unit 11. Remind them of these key points: An entrepreneur creates, launches, organizes, and manages a new business, and takes the risk of ownership. A business plan is a proposal outlining a strategy to turn a business idea into a reality. It contains four parts: (1) Description and analysis, (2) organizational plan, (3) marketing plan, and (4) financial plan. Ask students: What are the forms of business organization and which one is most common? They are sole proprietorship, partnership, corporation, and limited liability company (LLC). The sole proprietorship, a business owned and operated by one person, is the most common. Many Web-site businesses are organized as sole proprietorships. Ask students: What is the purpose of a business plan? It presents a description with goals, determines resources, and identifies how a business will operate. Potential investors and lenders consider it before extending credit or capital. 866 Unit 11 · Entrepreneurship and Finance marketing plan for your online business. Prepare proposed financial statements. Explain how the results of the PEST and SWOT analyses help you conceive the new product and develop the marketing plan. Present Present research to support the rationale for your online business. Present your marketing plan for the proposed business. Present your financial plan for the proposed business. glencoe.com m Evaluate Download a rubric you can use to evaluate your final project. my marketing portfolio Create a Virtual Business With a Conduct a PEST and a SWOT analysis. EVALUATE Write a comprehensive business plan and Internship Report Once you have completed your Marketing Internship Project and oral presentation, put your written report and a few printouts of key slides from your oral presentation in your Marketing Portfolio. Marketing Information Management 866 Conduct PEST and SWOT analyses. Write YYour project will be evaluated based on the following: STEP 2 Plan Your Project Marketing Internship Project Checklist Plan Conduct research on online businesses— products sold, government rules, and special considerations, such as payment options and consumer privacy issues. virtual online business, you do not have to purchase supplies. Some virtual businesses exist as games on Facebook or on their own Web sites. Think of an appealing game in which players can buy virtual products. How can you inspire players to return your Web site? What business plan do you need? How do you develop marketing and financial plans? What competition will you have? What political, environmental, socio-cultural, and technological factors should you consider? What is your SWOT analysis? Prepare a written report and an oral presentation. Unit 11 · Entrepreneurship and Finance 867 Graphic Organizer Display this table. Ask students to name online retailers, national or local, who may or may not also have bricks-and-mortar stores. Possible answers: Online Businesses Type of Business Amazon.com Books, music, etc. Macys.com Apparel, housewares Staples.com Office supplies Petco.com Pet supplies Overstock.com Various Sephora.com Makeup, skin care Zappos.com Shoes Patagonia.com Outdoor gear glencoe.com m Graphic Organizer Send students to the Online Learning Center to print this graphic organizer.

UNIT 11 ENGAGE EXPLORE EXPLAIN ELABORATE EVALUATE STEP 1 Do Your Research Tell students that there are many places to find information they can use to develop a business plan for a new online business. Students can use library and Internet resources, but they should also talk to people in the community. Encourage students to seek the opinions and ideas of trusted people they know. Other people can bring new perspectives and ideas about online businesses and costs as well as the political, socio-cultural, and technological factors that affect online retail businesses. EVALUATE Culminating Activity Explain to students that lenders and investors evaluate whether a new business is risky while reviewing a business plan and before providing funds to entrepreneurs. Students should consider and research the risk factors for the online business they have chosen. Ask students: What would a lender or investor want to know regarding a new venture? A lender or investor would want to know how the money will boost the business’s profits. Also, how and when will the owner repay the business loan? Does the entrepreneur know anything about the new business or have training or experience in the field? Also, how successful are similar businesses? STEP 2 Plan Your Project Students should create PEST and SWOT analyses before deciding on an organization type and marketing plan. Students should explain why they chose their particular online business and provide information about its target market. Students’ explanation of their new idea for their business and its business plan should include information regarding financial statements and capital needed. STEP 3 Connect with Your Community Explain to students that connecting with members of the community is a great way to build relationships. Tell them that young people who are capable of building relationships with caring, responsible, and competent adults are more likely to achieve success. Encourage students to take part in opportunities for adults to serve as mentors, coaches, advocates, and advisors, both formally and informally. STEP 4 Share What You Learn my marketing portfolio Internship Report Have students put their written reports and printouts of key slides from their oral presentations in their marketing portfolio. Create a Virtual Business Direct students to select a game as a virtual business, and then create a business plan for it. Students’ completed business plans should include all of the elements and answer all of the questions included in the Marketing Internship Project on this page. This additional activity can build relevance for students who are motivated to learn about other specific businesses and industries. Relevance shifts the focus to what motivates individual students to learn. Students should present their ideas in a written report and oral presentation with presentation software. They should have at least one slide in their presentation for each key topic in the written report. Encourage students to speak clearly, use appropriate grammar and vocabulary, and actively engage the audience by making and maintaining eye contact and using movement (facial expressions, posture, gestures) to focus attention and interest. STEP 5 Evaluate Your Marketing and Academic Skills Have students use the Marketing Internship Project Checklist to help them to plan, write, and present their reports. Exemplary written reports will include information that clearly supports a central thesis, a single, distinct focus, generally well-developed ideas, well-phrased sentences that flow smoothly and are varied in length and structure, consistently precise word choice, and few, if any, errors in grammar, spelling, and mechanics. glencoe.com m Evaluation Rubric Send students to the Online Learning Center to get a rubric to evaluate their projects. 867

774A Unit 11 · Entrepreneurship and Finance Entrepreneurship and Finance PLANNING GUIDE AND RESOURCES Print Digital Unit 11 Entrepreneurship and Finance Unit 11 Fast Files: Marketing Internship Project Activity Connect Online Learning Center through glencoe.com Chapter 33 Entrepreneurial Concepts Student Activity Workbook: Chapter 33 DECA .