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Latvian Rural Consultancy Centre
|Table of contents||3|
|1.1.||What is entrepreneurship?||7|
|1.2.||Characteristics of entrepreneurship||7|
|1.3.||Needed knowledge and skills||8|
|1.7.||The family business||10|
|1.9.||Situation in Latvia||10|
|1.10.||Business environment in Latvia||10|
|1.11.||Female entrepreneurs in Latvia||10|
|1.11.1.||Obstacles for women managers||11|
|1.11.2.||Obstacles for women entrepreneurs||11|
|2.1.||Top trends in society||12|
|2.2.||Trends in business, companies||12|
|2.3.||Trends in agriculture and food||13|
|2.4.||Low added value in agriculture||13|
|2.5.||Assessment of future of developments in agro in Latvia||13|
|3.2.||Company or organization||15|
|3.4.||The business concept: PMC’s, who are clients, which value to offer||16|
|3.8.||Business concept: which values company wants to offer, how and to whom?||18|
|3.12.||Organigram. Mitzberg configurations||20|
|3.13.||Management roles and leadership style, managerial grid teams and team development||21|
|3.13.1.||Management and management roles||21|
|3.13.3.||Managerial grid teams and team development||22|
|3.15.||About motivation and culture||22|
|3.16.||Salary system; fixed or flexible||23|
|4.3.||What to do?||25|
|4.4.||What do clients want (4 P)||25|
|4.6.||CRM – customers relationship management||26|
|5.1.||Description of competitors||28|
|5.2.||Role of innovation||28|
|5.3.||Porter’s competitive forces and strategies||28|
|5.4.||Competencies and competitive advantages our company||29|
|6.1.||Company’s future and what do they want: our company, our personnel, our clients||30|
|6.2.||Describe the strategic management process||30|
|6.3.||Describe growth and crises according to Greiner and how to solve crises in your company||30|
|6.4.||Outcome formulation based on changing environment, the BCG matrix and SWOT analysis; competencies and competitive advantages||31|
|6.6.||Company’s takeover (price calculation) or merger and its consequences/ outcome||33|
This report is written in order to enlarge “Latvian Rural Consultancy Centre” which is established in Riga in 2004. The main activities are to encourage Latvian farmers to enlarge their rural activities to develop situation in country side in Latvia. The report is written with clearly aim to attract a credit from Mortgage Bank of Latvia in amount of 1 000 000 LVL till the end of March, 2008.
The initially huge number of rural farms is gradually decreasing because they are driven out of business by groups of powerful and very powerful enterprises (farms). Non-competitive rural farmers are forced to change to a self-subsistence economy, engage in small-scale production or seek jobs elsewhere. This trend creates an unfavorable situation not only in regions as in the one of the poorest region in whole Europe Union but also in cities because of the rise in unemployment (especially hidden unemployment).
There is essential need for support for Latvian farmers who are willing to start new business in country side but there are many obstacles as shortage of needed knowledge, material support and professional training that can give encouragement and conviction to their strength to change current situation in Latvia.
This report is about “Latvian Rural Consultancy Centre” which is willing to encourage Latvian farmers and to help them to develop rural situation in Latvia. The aim of company is to give needed knowledge and to improve skills how to attract some foundation and to give professional trainings to farmers or persons who are willing to become the farmers in Latvia.
1.1. What is entrepreneurship?
Entrepreneurship starts with willingness to take the risks involved in starting and managing a business. Entrepreneurship involves the recognition of opportunities (needs, wants, problems, and challenges) and the use of resources to implement innovative ideas for new, thoughtfully planned ventures.1.2 ,
Entrepreneurship is often a difficult undertaking, as a majority of new businesses fail. Entrepreneurial activities are substantially different depending on the type of organization that is being started. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities.
Many "high-profile" entrepreneurial ventures seek venture capital or angel funding in order to raise capital to build the business. Many kinds of organizations now exist to support would-be entrepreneurs, including specialized government agencies, business incubators, science parks, and some NGOs.3
1.2.Characteristics of entrepreneurship
From a personal perspective, becoming an entrepreneur is not a simple task. It certainly has its drawbacks. However, it can also be quite rewarding. An entrepreneur is an individual who owns, organizes, and manages a business and, in so doing, assumes the risk of either making a profit or losing the investment.4
Characteristics of the successful entrepreneur:
• Optimism: taking risks and paving new paths can only be accomplished with optimism. Optimism is a belief in the future, a view of what is possible rather then what is impossible.
• Tenacity and courage: sticking to the goal, even when it means doing things differently, is tenacity.
• Well defined ethics and values: the successful entrepreneurs have a strong sense of values and business ethics which are guiding forces in their decisions. Entrepreneurs know being true to themselves is more then just a cliché – it’s a way of operating. It will be important for entrepreneur to determine what values must stand behind in the business. What values entrepreneur will use to make decisions and set direction?
• Ability to listen and learn: whether from customers, employees, advisors or the public, the successful entrepreneur is hungry to learn. Learn more about their product, marketplace, possible innovations and trends which will affect their business. They are quick to admit what they do not know and even quicker to seek the information needed to stay on track.
• Self-control and discipline: staying focused on the vision and managing the details means self-control and discipline. Principles of time management and positive work habits are important to the long term success of the business.
• Self-confidence: a key characteristic of any high performer, including the successful entrepreneur, is a positive sense of self-confidence. It’s confidence that enables people to try new things and effectively manage risk. Confidence is the result of programming mind with positive and optimistic thoughts and plans.
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