CASE STUDY

Cork'd: Case of Entrepreneurship and New Venture



Cork'd: Case of Entrepreneurship and New Venture

Introduction

The creation of new venture and entrepreneurship is seen by many successful businessmen as the foundation of powerful capitalistic economy. The start of self-sustaining business from zero level is determined by various different factors. The failure and success rates are related directly to particular economic policy objectives. Global Entrepreneurship Monitor explains it as a process rather than an event. Number of factors such as financing capabilities, economic development, demographic structure, technology and media play a significant role in the shaping of entrepreneurship.

Endeavours to start a new business ventures have different factors, and it requires extreme sense of enthusiasm, passion and determination. Sometimes it is very difficult to assess the performance of the entrepreneurial project because of factors like individualism and independence that happens with the operating and owing a sole proprietorship. Few entrepreneurs are born in an environment which polishes their business conducting skills such as legacy of family business and some entrepreneurs though having adequate business knowledge fail to operate a business on successful terms. Few of entrepreneurs are complacent with current business operation and find no further expansion of their business. While few expand their businesses by entering into joint ventures for different reasons mainly for profitability motives.

Discussion

Evaluation Criteria for Good Investment

In general, it is the financial standing of the company which mattes to decide whether investment is good or not. There are different financial methods which are used to evaluate the viability of the investment. These financial tools are payback period, discounted cash flow, internal rate of return and modified internal rate of return etc. mostly theses tools are used for big investment and the most probable monthly or annual return are known (Willcocks, 2012, pp.241). Cork'd company has relatively very small annual returns, and the nature of this return is not appropriate to use for financial analysis because there are chances that in the future, the fees can increase or result in the shortage of it. Therefore, it is suitable to evaluate the performance of Cork'd by assessing the impacts of actions taken by the new CEO. This analysis is more close to the management side of the Cork'd.

The new CEO is an able leader and her management style suits most to the needs of management of the site. His management style is a persuasive one and she has the sole responsibility of making the site more attractive for wine lovers. The personality and management style is also an important part in evaluating the performance of the company.

A good investment opportunity offers handsome amount of return, and it guarantee that the company will survive the competition. Good investment promises growth and increase in the wealth of investor. Cork'd though initially started to rate the wine reviews, and it future objectives were to expand the site into a complete wine social network. The site's main source of revenue is winery sign-ups which is $999 per person and it has currently 42 sign ups, that ...