JA It’s My Business!
Lesson 4
I Have An Idea
Lesson 4
JA It’s My Business! I Have An Idea
Objectives
• Recognise how being creative and innovative are necessary
entrepreneurial skills for starting a business.
• Verbally defend your decisions.
Lesson 4
JA It’s My Business! I Have An Idea
• As an Entrepreneur you MUST :
 Fill a Need
Know the market need and your potential competitors.
 Know Your Customer and Product
Have expert knowledge of both the customer and the product.
 Be Creative and Innovative
Think outside of the box, and look for new and different
solutions to needs that have been identified.
 Believe in Yourself
Identify likes, skills/abilities, and work to improve them.
Lesson 4
JA It’s My Business! I Have An Idea
Activity: Auction - Be Creative and Innovative
• Businesses for sale!
• For each business, you
will evaluate the originality
of the concept
• If it appeals to you, you
can buy it at an auction
Lesson 4
JA It’s My Business! I Have An Idea
Activity: Auction - Be Creative and Innovative
What is an auction?
• An auction is a way to buy something for which the price has
not been set.
• During an auction, buyers have to decide the value of the
object and how much each is willing to pay for it.
• A buyer then start with a bid, the amount he wants to pay
(normally lower than what he is finally willing to pay).
• Other buyers will then decide if they want to bid higher.
• The buyer that offer the highest bid wins and buys the
business.
Lesson 4
JA It’s My Business! I Have An Idea
Activity: Auction - Be Creative and Innovative
What is an auctioneer?
• Person responsible for running the
auction.
• She or he ensures that all bids are
considered.
• All sales are final.
• The highest bidder is responsible
for buying the business.
Lesson 4
JA It’s My Business! I Have An Idea
Activity: Auction - Be Creative and Innovative
How to play this game?
•
Each group will receive $60,000
•
Each Auction Product contains 3-4 clues about the business
•
After the auctioneer shares all the clues, bidding starts
•
Group rep will raise his hand and announce a bid in multiple of $1,000 with a
minimum starting bid of $10,000
•
Groups cannot participate once they have spent all their money – spend wisely.
•
We will not tell you how many businesses we have to auction.
•
After each sale, the company will be revealed and owner gets to read aloud the
information of what they bought
•
There may be a re auction after all the businesses are sold
•
Groups will review their purchase and determine why it is successful
Lesson 4
JA It’s My Business! I Have An Idea
Clues about the business:
• Two brothers started their business selling self-designed shoes
around Tanjong Pagar.
• The designs are fashionable.
• As the shoes are made in Asia, they are very affordable which
makes the company a strong competitor with brands like Bata.
Lesson 4
JA It’s My Business! I Have An Idea
Charles & Keith
•
Charles and Keith Wong founded footwear brand
Charles & Keith in 1996 with SGD100K. It provides
fashionable footwear and accessories and is a
major household name in Singapore today.
•
The first shop was established in Amara Shopping
Centre and now there are 300+ outlets in 26
countries.
•
In 2007, the brand also launched a product line
extension in Singapore and Indonesia – the upmarket Charles & Keith Signature Label.
•
In 2011, Louis Vuitton Moet Hennessy (LVMH)
bought a 20% stake
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Market valuation (2011): S$200 million
JA It’s My Business! I Have An Idea
Clues about the business:
• This business was started by an expert in family entertainment,
who wanted to provide a fun, safe and clean place for kids to
play.
• The founder of this business believed “it is kind of fun to do the
impossible.”
• You could say this idea is pure magic.
Lesson 4
JA It’s My Business! I Have An Idea
Disney
•
Walt Disney started out as an animator. With his
house as his office, he brought Mickey Mouse, his
friends, and a lot of laughter to the world.
•
Disney tried his hand at directing, screenwriting, film
production, and entrepreneurship and, in doing so,
made magic happen.
•
One of his best ideas came from his wish to take his
two daughters to places where they could enjoy
some quality family time. Frustrated by the lack of
clean and friendly amusement parks, he decided to
create his own – which became Disneyland.
•
Since then, Disney theme parks have been built
around the world. As Walt said, “If you can dream
it, you can do it.”
Market valuation: USD 90B
Lesson 4
(date: 15/10/12; source: Bloomberg)
JA It’s My Business! I Have An Idea
Clues about the business:
• This company started out as a small stall in 1956 along
MacKenzie Road in Singapore, selling local pastries.
• People from every corner of Singapore would travel to the stall
to savor this pastry.
• The pastry is stuffed and fried with specially selected spices and
herbs.
Lesson 4
JA It’s My Business! I Have An Idea
Old Chang Kee
•
In 1956 , it started with just a small stall in a coffee shop
outside the former Rex cinema along McKenzie Road.
•
In 1986, Han Keen Juan left his MNC job and bought
over the control of Old Chang Kee.
•
Current presence: 69 outlets across Singapore, Malaysia
and Indonesia
•
Signature product: chicken curry puff stuffed with a slice
of egg, curry potato and chicken.
•
Product range: 22 products across three categories –
O’s Family, OnStik Family and Feel’in.
Lesson 4
Market valuation (2012): USD 30.18M (SGD 36.94M)
(date: 15/10/12; sources: Bloomberg, xe.com)
JA It’s My Business! I Have An Idea
Clues about the business:
• This company’s initial goal was to improve the diet of
vegetarians.
• The founder discovered his first product by accident when he left
a pot of boiled wheat on the stove and decided it made a tasty
cereal.
• The business promotes the concept that breakfast is the most
important meal of the day.
Lesson 4
JA It’s My Business! I Have An Idea
Kellogg
•
Will Keith Kellogg discovered Corn Flakes by
accident in 1906.
•
This was the first product sold by Kellogg’s,
followed by Fruit Loops, Rice Krispies, Pop-Tarts,
and others.
•
A former stock boy and broom salesman, W.K.
Kellogg amassed a fortune “making quality
products for a healthier world.”
•
Besides launching a successful business that grew
to sales in excess of US$12 billion in 2009,
Kellogg is recognized as one of America’s greatest
philanthropists. His investment of US$66 million in
the Kellogg Foundation grew to more than US$8
billion in 2008.
Market valuation (2012): USD 18,584.35 M
Lesson 4
(date: 15/10/12; source: Bloomberg)
JA It’s My Business! I Have An Idea
Clues about the business:
• This business introduced consumers to natural ingredients like
aloe vera, cocoa butter and jojoba oil.
• Minimal product packaging and social awareness are top
concerns.
• This entrepreneur’s vision is to avoid any animal testing.
• The business believes in the importance of human relationships
and trades with more than 35 suppliers from approximately 25
countries.
Lesson 4
JA It’s My Business! I Have An Idea
The Body Shop
•
The Body Shop was founded by Anita
Roddick. She opened her first store in
England with 25 hand-mixed skin and hair
care products.
•
Today, The Body Shop has over 1,900 stores
and more than 77 million customers in 50
different countries. It is estimated that The
Body Shop sells a product every 0.4
seconds.
•
Before her death in 2007, Roddick’s net
worth was estimated at more than US$200
million.
Lesson 4
Market valuation (2012): US$ 270 million
(date: 15/10/12; source: third party article
JA It’s My Business! I Have An Idea
Clues about the business:
• The founder of this company originally started out making
Singapore food known to the market in Taiwan.
• In 2000, he grabbed an opportunity sell freshly baked breads
and buns which are visually creative and attractive.
• Threatened by copycats, he decided to change his business to
promote and sell a lifestyle rather than just products.
• The company’s philosophy relies on innovation, creativity,
quality food and lifestyle trends.
Lesson 4
JA It’s My Business! I Have An Idea
BreadTalk Group
•
Breadtalk was founded in 2003 by George
Quek. It revolutionized the concept of bakeries
with clean lines and 'see-through' kitchens.
•
The first outlet started in 2000 at Bugis
Junction. The Group now operates 100 bakery
outlets across Singapore, Malaysia, Thailand,
Hong Kong and China.
•
Famous brands include Din Tai Fung, Toast
Box and Food Republic.
•
The Group has won top awards such as the
Singapore Prestige Brand Award 2008, Most
Popular Brand 2002-2005, Super brand status
2002-2003 and E&Y Emerging Entrepreneur
2006.
Market valuation (2012): USD 134.91 (SGD 164.91M)
Lesson 4
(date: 15/10/12; source: Reuters, xe.com)
JA It’s My Business! I Have An Idea
Clues about the business:
• The founder developed a revolutionary formula for
manufacturing milk chocolate.
• Innovative products like Reese’s, Kit Kat, Twizzlers and Kisses
make this business a really sweet deal.
• This business started when a candy manufacturer decided to
produce sweet chocolate to coat caramels.
Lesson 4
JA It’s My Business! I Have An Idea
Hershey’s
•
Milton Hershey founded Hershey’s in
1894. In 1903, he broke ground in
Hershey, Pennsylvania, to build the
world’s largest chocolate factory.
•
The company is the leading
manufacturer of chocolate
confections, with net sales of US$5
billion in 2009.
•
The company has more than 13,000
employees and its products can be
found in more than 90 countries.
.
Lesson 4
Market valuation (2012): USD 16,167.57 M
(date: 15/10/12; source: Bloomberg)
JA It’s My Business! I Have An Idea
Clues about the business:
• A chartered accountant, the founder started his career in
London in the music business working for Virgin Records.
• When the founder bought this company for 1 Malaysian Ringgit,
it was heavily in debt and only had 2 aircraft.
• The founder wanted to bring low cost airfares to Asia.
• He made its advertising slogan - “Everyone can fly!”
Lesson 4
JA It’s My Business! I Have An Idea
Air Asia
•
Tony Fernandes was a pioneer of low cost
airfares in Asia.
•
Air Asia was named “Best Low Cost Carrier
in the World” at the World Airline Awards in
2012.
•
AirAsia operates with the world's lowest unit
cost of USD 0.023/ASK and a passenger
break-even load factor of 52%, which is
very low for the airline industry.
•
It has expanded it’s operations beyond
Malaysia to include local flights in Thailand,
Indonesia, Japan, India and the Philippines
and has 5,137 employees.
Lesson 4
.
Market capitalization (2013): SGD 2.75 billion
JA It’s My Business! I Have An Idea
Who purchased companies with the most value?
Anybody wants to sell your business by a re-auction?
Anybody wants to bid for it?
Lesson 4
JA It’s My Business! I Have An Idea
Learning Challenge:
• 3 minutes to list as many auction business and why each
business is successful.
• The group with the most number of answers wins.
Lesson 4
JA It’s My Business! I Have An Idea
DON’T FORGET TO :
• Write your name.
• Complete the journal at home.
Lesson 4
JA It’s My Business! I Have An Idea
End of Lesson 4
Lesson 4