Convenience


Chapter 5: Entrepreneurship and New Venture Management 1 3 3



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Fundamentals-of-Management-8th-Edition-Ricky-Griffin-978-1285849041

Chapter 5:
Entrepreneurship and New Venture Management
1 3 3
Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
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Small-business services range from shoeshine parlors to car rental agencies, from
marriage counseling to computer software, from accounting and management consulting
to professional dog walking. In Dallas, for example, Jani-King has prospered by selling
commercial cleaning services to local companies. In Virginia Beach, Virginia, Jackson
Hewitt Tax Services has found a profitable niche in providing computerized tax preparation
and electronic tax-filing services. Great Clips, Inc., is a fast-growing family-run chain of hair
salons headquartered in Minneapolis.
Retailing
A retail business sells directly to consumers products manufactured by other
firms. There are hundreds of different kinds of retailers, ranging from wig shops and
frozen yogurt stands to automobile dealerships and department stores. Usually, however,
people who start small businesses favor specialty shops—for example, big-men’s clothing
or gourmet coffees—which let them focus limited resources on narrow market segments.
Retailing accounts for 11.71 percent of all U.S. businesses with fewer than 20 employees.
John Mackey, for example, launched Whole Foods out of his own frustration at being
unable to find a full range of natural foods at other stores. He soon found, however, that
he had tapped a lucrative market and started an ambitious expansion program. Today,
with 310 outlets in North America and the United Kingdom, Whole Foods is the largest
natural-foods retailer in the United States—three times larger than its biggest competi-
tor.
13
Likewise, when Olga Tereshko found it difficult to locate just the right cloth
diapers and breast-feeding supplies for her newborn son, she decided to start selling
them herself. Instead of taking the conventional retailing route, however, Tereshko set
up shop on the Internet. Her business, called Little Koala, has established a customer
base of over 10,000 loyal customers. The “Sustainability Matters” feature highlights
another successful business that has combined retailing and services.

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