How did this Entrepreneur Develop Business Idea? Was it through Intuition, Creative Problem Solving, or an Analytical Evaluation of Market Needs? (Essay Sample)

Individual Research Assignment
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Individual Research Assignment
How did this entrepreneur develop his or her business idea? Was it through intuition, creative problem solving, or an analytical evaluation of market needs?
The entrepreneur, Mr. Russell Weiner, developed his business through a careful analysis of the market trends and needs. He first got an interest in the energy drink business after he heard about the then recent health craze that was spreading like wildfire (Bolton et al, 2013). People kept complaining about how little the can of their favorite energy drink (RedBull) was. In addition, there was a general feeling that the masses needed a new brand as this would afford them options regarding the energy drinks. Careful analysis further showed him that the main market for energy drinks comprised the youth. Furthermore, he noticed that a large proportion the drinks were consumed on night-outs and a smaller percentage during sports events (Bolton et al, 2013). This combination of events gave him an idea. He decided that he would start up his own venture, producing an alternative drink for the market. His selling point was to produce double the amount of beverage in the RedBull can for the same price as a RedBull. This is how Rockstar energy drink was founded, with the tag line "Party like a Rockstar”.
Describe how the entrepreneur created the business? Was the process of creating this business "Causal” or "Effectuate”?
Mr. Russell used casual reasoning to create the business. This process implies that an entrepreneur has already outlined his/her goals at the start of the venture, and he is able to predict the future of the venture (Bolton et al, 2013). On the other hand, effectuate reasoning is where an entrepreneur is uncertain, has no clear goals at the beginning, but instead utilizes what he has to start up and derives his goals from the initial start-up (Bolton et al, 2013). Mr. Russell of Rockstar energy drink being a consumer of energy drinks, already knew the market trends and the needs of the market before his start up. He therefore set clear goals at the beginning, which was to produce a drink that was twice the size of RedBull, at the same price. Through his initial assessment of the markets, he knew that the new drink would appeal to the consumers by directly tackling their concerns. It is worth noting that the drink was marketed as "Twice the size of RedBull for the same price!" This further confirms that the entrepreneur was working from a point of certainty.
Did this person develop a formal business plan? If so is it still being used?
Mr. Russell developed a formal business plan prior to his start-up. After careful analysis of the variables that would affect the energy drink business, he carefully put down a plan that would guide him in meeting the needs of the market. Previously, he had been hired at Skyy Vodka at a business development position. In his initial business plan, he was to use contacts of Skyy Vodka, as the owner of the company gave him that privilege. He would distribute his product through Southern Wine and Spirits, Skyy’s main distributor (Bolton et al, 2013). Moreover, Rockstar’s initial selling point was that it was an image-based brand, which was to appeal to a certain group of people. However, the company abandoned this initial business plan. It formulated another one, to be in line with the trends in the market as well as to gain an edge in the market against competitors. Its two main competitors were RedBull and Monster. It started expanding the distribution channels by seeking companies that distributed rival drinks such as The Coca Cola Company and Dr. Pepper/Seven Up. In addition, the company ventured into new markets including other states and other countries such as Canada.
Based on your interview did you feel that the business plan was an important document for the entrepreneur?
The business plan was important for Mr. Russell, as he explained that it was strong business tool to him, which enabled him to perform all the proper planning before jumpstarting the venture (Bolton et al, 2013). He outlined that it is more important for an entrepreneur to write his own business plan or at least participate in the completion. This ensures that the entrepreneur can tackle any questions or concerns that may arise after writing of the business plan. He further expounded that the business plan was important to him as a manager, as it made it easier to develop business objectives and be strategic. It was also crucial for follow- up after starting the venture. It was through the business plan that Mr. Russell decided that his target market for the Rockstar energy drink would comprise the youth. Moreover, the plan assisted in establishing trends and projecting the future of the energy drinks business. He also asserts that it was through his initial plan that he was able to stick to his objectives and avoid any other distractions that he would face from time to time (Bolton et al, 2013).
Discuss with this individual his or her personal motivations for starting a business.
His motivations to venture into the energy drinks business was to solve a problem that he had seen in the market. His analysis indicated that the available drinks were only available in 8 ounce cans, which he felt was quite little for $2 each. After discussing the matter with his mentor, he thus resolved to use this opportunity to his advantage. He believed that many people would appreciate a 16-ounce can of energy drink, and this is how he became the pioneer of the 16-ounce can segment (Bolton et al, 2013).
Additionally, another significant motivation for him was to be his own boss and run his business. This, he felt would enable him steer the business in the direction he deemed fit, without commands from someone senior to him. He felt that he would be able to utilize his expertise, which tends to be overlooked when someone is employed.
His other motivation was to be distinctive as he aimed at producing a unique product that would differentiate him from his competitors (Bolton et al, 2013). His main product differentiator was the can size, as there was no other drink that was available in the market in 16-ounce cans. With this product, he would stand out from the rest and this was a major component that earned him success and popularity in the market.
Are these motivations consistent with the typical entrepreneur?
His motivations are consistent with those of a typical entrepreneur. A typical entrepreneur’s motiva...