Bizdom U 2009: Andrew Hwang

Entrepreneurship: Chapter 3

Key Concepts (2-5)

2.                  “A Full Service Building Investment and Management Company”

a.       Investment/Sales

b.      Partnership

c.       Janitorial services, Remodeling, Construction, Developing, Management

3.                  This kind of service is a partnership investment that allows investors to put their money with a company that is going to go beyond selling them a property but also manage the building.  It will focus more on the full management side of the investment firm.

I believe that the position of this service in more on the “introduction” stage of its life cycle.  As Detroit begins to develop, I believe that this service will become a popular trend once investors realize the profitability of the city.  Eventually, this service will hit “maturity” and then “decline.”  This will give me a new opportunity to implement this investment and management service to other major developing cities as an “introduction.”

4.                  a. Dellà 18.6%
b. Dell and HPà 34.2%
c. 2.5%
d. approximately 1.9% each

5.                  80,000/2.67= 29,962.55 households
29,962.55×0.361= 10,816.48
a. 10,816.48 dog owning households

10,816.48×1.6= 17,306.0 dogs

Case Study: Russell Simmons—Hip-Hop Entrepreneur

1. I contribute Russell Simmons’ success for his ability to see a market that others could not; he realized the potential in the rap and hip-hop industry.  This new market was successfully targeted towards young adults and urban teens.  He understood that people wanted music that was performed by artists that stayed true to their street style, which is what he provided.  Furthermore, Simmons was a marketing genius with the ability to promote and sell his product at high volumes.
   
   
2. Target Market: Young adults and urban teensàThis market values the authenticity of street culture, which means real musical artists representing their true backgrounds.
   
   
3. Simmons’ knowledge and familiarity in the hip-hop industry gave him the advantage of knowing the right people to produce and perform the “underground” fad.  Rick Rubin became one of his partners in producing this new culture and style, which lead to be a thriving success.

   On the other hand, Simmons’ “insider knowledge” could have also functioned as a disadvantage for him because his knowledge of the music industry was limited to the hip-hop culture.  Since he grew up in this “underground” fad, this is what he knew best and may not have known much about other kinds of cultures that were also emerging at the time.  His saturation with rap music might have made it difficult for him to think “outside-the-box.”

   However, I believe that his “insider knowledge” immensely helped him to succeed in what used to be a non-marketed good.  Simmons not only promoted the hip-hop culture through music, but also leveraged his business through other forms of entertainment, media, and fashion.
   
   

4. Due to Simmons’ influence as a public icon, I would pitch the idea of establishing a higher learning institution such as a small college or university.  This could better educate the street culture and be a profitable venture as well.  Since Simmons is well respected by the urban market, he could promote a learning institution that could help end poverty in the inner cities by educating people.  This whole business plan could go well with Rush Communications’ philanthropic arts foundation by taking it to the next level.

   There would be a lot of market research need to be done in order to assess this business plan for success.  First, I would have to find the percentage of young teens that do not go beyond a high school education.  Secondly, I need to know the reasons why they decide not to attain a college degree.  I would apply various forms of market segmentation in order to estimate what percentage of urban teens would attend college if it was operated by a hip-hop mogul such as Russell Simmons.  Lastly, I would have to plan out the structure of the educations structure down to his faculty and tuition

   I believe that there are various ways that Simmons could positively affect young teens that are infatuated with the rap culture.  His influence can help attract higher education to urban areas where formal education is not a popular concept.
   
   

5. (100,000,000-$5,000)/$5,000= 19,999% ROI

   note: this is without the consideration of inflation because the initial investment was in the 1980s.