Self funding is to provide the money for a project or course of action for oneself. Self funding is also known as bootstrapping business. Selffunding brings a lot of advantages but also brings some disadvantages. Now let’s begin with the advantages of self funding
TRƯỜNG ĐẠI HỌC THƯƠNG MẠI HỌC KỲ II NĂM HỌC 2020 – 2021 (Phần dành cho sinh viên/ học viên) Bài thi học phần: Số báo danh: 39 Tiếng Anh Thương Mại2.3 Lớp: 2102ENPR5411 Mã số đề thi: 01 Họ tên: Mai Thị Trang Ngày thi: 31/05/2021 Số trang: 03 Điểm kết luận: GV chấm thi 1: …… ……………………… GV chấm thi 2: …… ……………………… Câu 1: Self- funding is to provide the money for a project or course of action for oneself Self- funding is also known as bootstrapping business Self-funding brings a lot of advantages but also brings some disadvantages Now let’s begin with the advantages of self- funding First of all, you will have total personal control in self -funding It means that you don’t have to pay back or rely on outside investors or lenders, who could decide to withdraw their support at any time Secondly, self- funding gives you the freedom of being your own boss You will retain full ownership of the business, which in turn means that you will receive 100 percent of future profits If you are fortunate enough to self-fund your startup business, you maintain all ownership of your business This allows you to reap what you sow, so to speak, and maintain all profits Moreover, self- funding helps you make money quickly so that you can sell the business You will know exactly how much money is available to run your business and you will not have to spend time trying to secure other forms of funding from investors or banks Finally, self- funding can help you to prioritize your business expenditure and avoid excessive spending when you fund a business yourself, you will have the responsibility to control your money, so you will only invest in business equipment and marketing when it is really necessary Also, you will not have to waste valuable time and money in finding external resources Despite what movies and TV might tell you, 77% Họ tên SV/HV: ………………………….………… - Mã LHP: …………………… Trang 1/… of small-business owners self-finance their businesses- meaning they use their own money or assets to fund their businesses There are also some risks associated with self-funding that are sometimes overlooked Firstly, self- funding means that you will be the only one at risk because only you are the one who invested money and properties If your business were to fail, you could lose your home and other personal possessions This will put a strain on your family and personal life You may not have enough money left over to cover your living cost Secondly, self-funding may limit the ability to grow your business You will operate with limited resources and very little staff to help you grow the business If you don’t get outside funding, your company will lose many opportunities to develop technology, infrastructure and widen the size and scope of your company Finally, self- funding may cause you lack of networking Many investors, venture capitalists, and other types of investors often bring much more than money to the table They can give you access to their network of contacts, as well as to their experience and expertise, opening up new opportunities for your business If you go it alone, you miss out on all of that You can develop your own contacts, of course, but it’s easier with the ready-made structure that investors bring For example, many startups won’t qualify for business loans anyway, so they need to have contact with some mentors Besides, drawing on personal savings and credit cards can cover startup costs without having to wait for other people's decisions The downside is that using credit cards can be expensive in the long- term To sum up, self- funding brings both pros and cons for entrepreneurs Many successful companies that bootstrapped at the beginning such as Facebook, Dell, HP,… Câu 2: (5pts) In my point of view, to capture market share on a saturated market with harsh competition from other companies, Bao Ngoc Bakery should improve the marketing mix’s strategy The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market They should apply some more marketing techniques to increase interest from Họ tên SV/HV: ………………………….………… - Mã LHP: …………………… Trang 2/… everyone The first technique I would suggest is viral marketing means marketing that spreads from consumer to consumer, often online and through social media For example, the bakery can request customers who purchased cakes to make a video and give feedback on some social media such as Facebook or Instagram, This will help Bao Ngoc Bakery attract more and more customers because customers often want to know the quality of the product before they buy The second technique that the bakery should also consider is advertising products by announcing them on TV, radio, or in other media If they only advertise on social media, the old people might not access information about the store So announcing on TV, radio can help the bakery access customers of all ages For example, they can learn from the successful advertisements of Dien May Xanh Dien May Xanh has gone viral because its attractive advertisements were spread in all media In addition, there is still one factor that can affect the customer’s buying decision is sales promotion Bao Ngoc Bakery should increase some more sales promotion techniques because customers always want to have discounts or to have some promotions when they purchase a product The bakery should use the sale promotion technique called BOGOF- buy one get one free This is one of the most effective ways of increasing sales volume, for all sorts of different products The idea is to persuade customers to purchase two items at a 50% discount Because there is no reduction in the price for one item, the apparent “full value” of the product is maintained So customers have the impression that they’re getting something for free Like last time I intended to buy one T-shirt, but I purchased T-shirts because that shop had BOGOF and I was very happy because I got a discount of 50% Moreover, Bao Ngoc Bakery can also use the sales promotion technique named bundling Bundling involves offering several products for sale as one combined product For example, they can make a combo of fresh cakes with various kinds of flavor or they can make a set of gifts for customers In this way, customers have many more choices and they will prefer to buy In conclusion, I hope these techniques will definitely help Bao Ngoc Bakery increase sales volume and can compete better with their rivals -Hết - Họ tên SV/HV: ………………………….………… - Mã LHP: …………………… Trang 3/… ... often online and through social media For example, the bakery can request customers who purchased cakes to make a video and give feedback on some social media such as Facebook or Instagram, This... of all ages For example, they can learn from the successful advertisements of Dien May Xanh Dien May Xanh has gone viral because its attractive advertisements were spread in all media In addition,... properties If your business were to fail, you could lose your home and other personal possessions This will put a strain on your family and personal life You may not have enough money left over