Attached is a Pro Forma inscome statement that I need assistance in filling out. The product or business idea to be utilized is attached as well.
Create a Pro Forma Income Statement utilizing RMA industry standards.
The company, through extensive research has come up with an innovative product which would allow users to carry their data with them wherever they go. The product would be called MobilePro and would be targeted at high level corporate who have to travel frequently and can't afford to miss on the data anywhere they go. The technique used for this innovation is "transformation". The transformation technique includes ideas of both creativity and innovation. It is looking at old problems from a new vista. The problem was seen from the standpoint of senior level managers who were mostly on a move and required their data to be there with them all the time. At the same time they also want to be able to perform actions on data to guide decision making. Current offering in the market includes external hard disk which can store huge amount of data but does not allow users to perform any function. The Product, MobilePro would not only make the data mobile but would make laptops redundant. It would similar to hard disk in looks but would have a smaller screen and necessary applications which would make the data more useful. This is a case of transformation of portability of data.
The transformation technique can be fostered by leaders who are within the organization among other workers as any follower can innovate while only few are naturally creative. Such leaders prioritized innovation and encouraged everybody around to innovate. They encouraged work-product champions or people who took the ownership of the product and drove it to completion. The role of leader here is to seek personal transformation as well as transform others who are around him to work towards common vision. This technique of intrapreneurship not only would transform people to develop innovative product but would also adept at responding to changing environment.
If the product developed through intrapreneurship, was brought to the market through entrepreneurship, it could present the organization with new business opportunity. The product would be developed using company's resources, including people, finances, and management support. However entrepreneurial marketing is in business reality not very innovative but rather imitative. If the product is introduced through entrepreneurial marketing, it is likely that the style of marketing behavior is driven and shaped by owner manager's personality. On the other hand if the company itself engages in entrepreneurial marketing, it would emphasize opportunity creation, evaluation and exploitation. The task of proactive identification and exploitation of opportunities will result in acquiring of new customers and retaining profitable customers. Innovative ways would be used to make the product reach out to customers. Entrepreneurs do not believe in objective setting. They know what they have (the product), what they can do (capabilities), and whom do they know (networks) to build various options of selling. Choosing a method for marketing is not based on maximizing profit but on how much loss can be afforded. Hence, if the product was marketed through entrepreneurial means, promotion tactics such as guerilla marketing and viral marketing would have been used to push the product to customers. Marketers would offer sell their product on discount, use direct selling or use other promotional scheme. Though the product would get sold in large numbers, it would not get any distinctive advantage through this marketing strategy.
The other scenario is if the company's entrepreneurial product is brought to the market through intrapreneurial means. The product would be created keeping in mind what would sell in the market, minimizing the risk associated, and with lesser investment. There would be company-wide involvement in marketing, right from objective setting to strategies for marketing to increasing customer satisfaction. The company would push managers to live with their customers, to conceptualize new ways to improve customer's lifestyle, or to add value to customers' lives. They would come up with processes to get the product to market and to increase its demand. Majority of the successful companies have adopted intrapreneurial marketing to create customer equity. The product would, through intrapreneurial marketing become a part of customers' lives by constant efforts from the company. It would be distinguished in the market from other products like external hard drives and would command a premium.
Key to Success
Intrapreneurial marketing for entrepreneurial product and vice versa would succeed if product development and marketing activities are aligned or, what is being produced has demand in the market. Further for intrapreneurial marketing, it is important that all functions within the company are aligned towards making the product success in the market. It would reduce individual and team stress and allow improved means of dissemination of innovation in the marketplace.
For entrepreneurial marketing key to success lies in putting practical intelligence into practice. Adjustments to marketplace shifts and customer feedback are also important in ensuring the product performs well in the market.
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2. Technique 4: Fostering Follower Change and Transformation. (n.d). Retrieved from http://westsidetoastmasters.com/resources/inner_leadership/lib0035.html
3. Saxena, R. (2009). Marketing management. (4th ed., p. 29). New Delhi: Tata McGraw-Hill. DOI: books.google.co.in/books?isbn=0070144915
4. Ionita, D. (2012). Entrepreneurial marketing: A new approach for challenging times. Retrieved from www.managementmarketing.ro/pdf/articole/259.pdf
5. Kraus, S. (2009). Entrepreneurial marketing. Retrieved from www.unternehmbar.net/fileadmin/UnternehmBAR.../sqlit_kraus.pdf
The expert examines pro forma income statements and projects for businesses.