Entrepreneur education breaks new ground in Thailand with extended business simulations
By Jon Fernquest[Introduction|Vocabulary|Article]
[Reading Questions|Answers]
 |
In a unique collaboration between the Thai government and a private university, Assumption University (ABAC) and the Commerce Ministry have been working on a new and innovative education program for young Thai entrepreneurs.
College students receive hands on business training to supplement traditional textbook learning.
A business simulation takes place over several months, giving students a chance to implement and act on the business plans they dream up.
At the end of the business simulation, students give short 15 minute presentations summarizing what they have accomplished to the jury of seasoned business people who judge the competition.
The judges ask pointed questions in the question and answer (Q&A) session following each presentation, forcing students to think on their feet and come up with short, to the point, and impressive answers.
The day seems to be fast approaching when students might even graduate with a few years of actual business experience under their belts before they venture into the complexities of the real business world to find their first job or for many...found their first company.
Reading Questions
Here are some questions to guide your reading (See answers at end):1. What attributes do you need to succeed in business, according to the author?
2. What is the University Entrepreneurial Development Project (U-ED) ?
3. Who organised the event?
4. Who is sponsoring the event? (Look for logos on the event website).
5. What do students learn from a business simulation?
6. Is the programme long or short? Why?
7. What aspects of their business do they recap in front of the judges in their final presentation?
8. How long are they given for their presentation? A long or short period of time? Why? (Express your opinion)
9. Is profitability the only factor considered by the judges in evaluating a the success of a business?
10. What was the most difficult part of the presentation for the students?
11. How do the questions asked by the judges simulate real business?
12. What are some of the problems encountered in targeting the university student market segment?
13. What kind of products are university students more likely to purchase?
14. How do students apply what they've learned in the classroom to running a real business?
15. What products is direct sales not effective for? Why?
Bangkok Post Article July 17, 2007
The road to entrepreneurship
Even before graduation, business majors discover the skills needed by future tycoons to command their own businesses Story and picture by WEENA NOPPAKUNTHONGIf becoming an entrepreneur only required an assembly manual to connect all the parts like prefabricated furniture, making an entrepreneur would be easy. Even for business majors, however, their prestigious degree alone does not guarantee a reserved seat in the executive chair, because the person at the helm must possess business acumen, dedication, commitment, a wealth of interrelated skills, competitive instincts and a dash of luck.
With the determination to prepare private and state university students across Thailand to become future entrepreneurs, Assumption Business Administration College (Abac) and the Commerce Ministry organized the University Entrepreneurial Development Project (U-ED), which is a business simulation competition. It was held for the second year on July 7-8 at Abac.
Before becoming entrepreneurs, students learn through their participation in the competition what it takes to be a professional businessperson, such as the necessary managerial skills they will need to run a successful business.
Acquiring managerial skills
U-ED project chairman, Yuthasak Poomsurakul, says that during the course of the competition students learn how "to plan a business, to train to be a leader, to work as a team, to solve problems analytically and [evaluate business models through] trial and error."
Students who participate in this competition engage in many aspects of business operations, such as dealing with logistics, suppliers, product lines, public relations, marketing and sales.
It's important to develop students' competency as entrepreneurs, says Bancha Skuldee, U-ED's vice chairman of the advisory committee, "which includes acquiring the diversified skills necessary to run a business, along with the determination and boldness to take risks."
To the finish line
The business training by U-ED began during October 25 to 29 last year. It taught students how to make a business plan and guided them on how to properly execute the plan.
Students eventually get to run their own company, which is usually initiated by their fellow university alumni. Each company has a management board, and what each company sells or services varies.
Students presented their business results to a panel of judges on July 7 and 8. They were required to outline their business model while discussing profits, sales methods, sales margins, and what efforts went into running their business. Each presentation was limited to 15 minutes and after great deliberation, the judges announced the winners, and trophies were awarded.
Pressure from the judges
Students are evaluated on how well they plan their business and execute their plan. Judges also consider what contributions they make to the community.
Even though the quality of students' presentations only accounted for minor points, all were dressed in dark business suits as they delivered a fast-paced summary of why their company deserved to win the competition. A general, a finance and marketing manager governed each company.
The judges, all top-level executives from the private sector, caused excitement and anxiety among the presenters as they asked tough and thought-provoking questions of the team members while the students presented their business models.
For example, students from Payap University in Chiang Mai province, appeared stunned when asked, "Why is your company profit so low? Is there corruption in your company?" Hit with such a direct question, the team was compelled to think quickly and provide an instantaneous response, as they demonstrated that corruption was not possible, because they had designed transparency into their company.
Another question that requires equal wit to answer was why the number of employees in their company had dropped significantly. Questions from the judges also addressed the number of salespeople who were paid little or no commission. The judges were suggesting that perhaps low or no commissions might be the reason why their staff turnover rate was so high.
These sharp questions are meant to provoke students into thinking about the practicalities of operating a business. Such pointed critiques cause students to encounter the intense pressures that executives and board members of real companies regularly experience.
Learning from practice
A twenty-two year old computer business major from Naresuan University in Phitsanulok province, Athiya Phong-Uay or "Eve," says that one of the major challenges for her business is finding the right product.
Although her company sells a wide range of products, such as pre-paid phone cards, notebook computers, digital music, bedding accessories and gift shop products, Eve says that many things don't sell. Their target customers are Naresuan University students, and based on their market research, Eve finds that because students have low purchasing power, they frequently evaluate whether a product is a genuine necessity. So while pre-paid phone cards and computers are deemed as essential to student life, the "non-essentials" are disregarded.
Improvising business theory
One of the main objectives for this project is to encourage students to adapt the knowledge they acquire in class to the realities of their day-to-day business operations, and if it isn't readily applicable, to improvise.
The Maejo University in Chiang Mai team won the HRH Crown Princess Sirindhorn Plaque for Best Dummy Company Established 5 Years and Above. Krirach Huana studies marketing there and admits that he uses half of what he learns from class and half of what he gains from experience while running the business.
He says he finally understands how to apply the concept of direct sales, but only after spending two months on trial and error. In class, he says his teacher only introduces it as one of the marketing strategies, without elaborating on which products are practical for a direct sales model.
"Direct sales work best for consumer products. It is not applicable for pricey or technical products, such as an electronic dictionary, because such products require credibility," he says.
Model entrepreneur
Besides exposing students to basic managerial skills, U-ED emphasizes the importance of social responsibility as a cornerstone of good entrepreneurship. As a U-ED organizer, Bancha reminds education institutes to produce competent future business personnel with corporate social responsibility.
Teaching future entrepreneurs to be socially responsible, says Bancha, will prompt students to make positive contributions to the community in which they choose to locate their businesses.
In addition, a model entrepreneur, according to Yuthasak, is someone who is diligent, disciplined, honest, and who has a thorough understanding of how to minimize costs while maximizing profits.
Unlike similar competitions that look solely at how much profit a company makes, the goal of U-ED, he adds, is to measure whether each education institute has laid a solid foundation to produce students who will become capable future business leaders for Thailand.
Vocabulary (in discussion above)
collaboration - working together on a project (See Wikipedia on collaboration)
Assumption University (ABAC) - the most well-known international university (with English as language of instruction) in Thailand (See Wikipedia)
hands on training - actually doing it, rather than just talking about it
a business simulation - imitating real business plans and operations for the purposes of training business students (See Wikipedia on simulation)
implement - executing a plan, making plans into reality, doing what has been planned
a business plan - a statement of business goals and a plan for attaining these goals, often used to obtain financing from venture capital, fo instance (See Wikipedia)
seasoned - has a lot of experience
a jury - group of people who choose the winner of a competition
pointed - clear and direct
ask pointed questions - clear and direct questions
pointed critiques - clear and direct criticisms (therefore easy to remedy but perhaps a little painful)
to the point - answers question immediately and directly
question and answer session - when the audience asks questions after a presentation and the presenter provides answers
think on their feet - thinking quickly to come up with immediate answers and solutions
have under their belts - fully achieved, accomplished, or finished
assembly manual - the book on how to build something
pre - before
fabricate - make, put together, build
prefabricated - built before buying
a prefabricated house - a house built from parts, these parts where built at a factory
prefabricated furniture - furniture built from parts, these parts where built at a factory
at the helm - in control (imagine you on the "helm" of a ship, steering the ship)
acumen - ability to make good decisions quickly (See glossary)
University Entrepreneurial Development Project (U-ED) - the organisation organising the business simulation competition (See website)
trial and error - learning to do by trying until you succeed
logistics - the management of inbound and outbound materials, parts, supplies, and finished goods, includes production scheduling, forecasting, customer service, order entry, inventory control, and product allocation among customers (See Crowley Shipping Glossary and Wikipedia)
product lines - the range of products with different features a company offers
competency - doing something skillfully
diversified - contains a variety, many different kinds
diversified skills - a variety of different skills
determination - will achieve success without letting anything stop you
boldness to take risks - daring and brave enough to take risks
the finish line - the end of a race, the place where a race finishes
alumni of x - a person who graduated from school x
thought-provoking questions - questions that force you to analyse what you are doing (and understand it better)
stunned - shocked and surprised
appeared stunned - look shocked and surprised
transparency - (See Wikipedia)
x is designed into a company - x is made part of the company at the early design stage, not added later on
designed transparency into their company -
wit - ability to use words in a clever and imaginative way
question that requires equal wit to answer -
a commission - the percentage of the sales revenue kept by the sales person (provides an incentive to sell)
* paid little or no commission
turnover - employees leaving a company
staff turnover rate - percentage of employees leaving company each year
low purchasing power - doesn't have a lot of money to buys things
genuine - real, not imitation or fake
a necessity, an essential - something you need
a genuine necessity - a real need
non-essentials - things you don't need
day-to-day business operations - things you do every day in your business (for example, sell to your customers, stock the shelves of your store)
improvise - do spontaneously, do without planning before
dummy - a model, looks real but isn't (used for planning and training)
a dummy company - a model of a company
direct sales - when an ad asks you to do something like: call a free phone number, visit a website, return a response card, place an order, complete a survey, started with catalogs that people ordered things through the mail (mail-order catalog, direct sales via the mail) (See Wikipedia on direct marketing)
the concept of direct sales - ads that ask people to do something
applicable - relevant
not applicable for - not relevant to, cannot be applied to
credibility - believability
a model - an ideal or perfect example
a model entrepreneur - an ideal example of an entrepreneur
exposing students to x - giving them their first experience of x
Corporate Social Responsibility (CSR) - the idea that companies have to consider not only shareholders returns in their decisions, but also other stakeholders such as customers, employees, communities, and environment in their operations (See Wikipedia)
diligent - works hard, carefully, thoroughly
Answer Key:
1. What attributes do you need to succeed in business, according to the author?
a. business acumen
b. dedication
c. commitment
d. a wealth of interrelated skills
e. competitive instincts
f. a dash of luck.
2. What is the University Entrepreneurial Development Project (U-ED) ?
It is a business simulation competition.
3. Who organised the event?
a. Assumption Business Administration College (Abac)
b. The Commerce Ministry
4. Who is sponsoring the event? (Look for logos on the event website).
5. What do students learn from a business simulation?
They acquire a wide-range of diversified skills:
a. Planning
b. Leadership
c. Teamwork.
d. Analysis and problem solving.
e. Evaluating business models through trial and error.
Different aspects of business operations, including:
a. logistics
b. suppliers
c. product lines
d. public relations
e. marketing and sales
Useful attitudes and frames of mind:
a. determination
b. boldness to take risks
6. Is the programme long or short? Why?
The programme is spread out over nine months to allow students to actually run the business after planning it.
7. What aspects of their business do they recap in front of the judges in their final presentation?
a. Outline business model
b. Profits
c. Sales methods
d. Sales Margins
e. Efforts in running business
8. How long are they given for their presentation? A long or short period of time? Why? (Express your opinion)
They are only given 15 minutes, a short period of time, probably because all business communications including presentations must be quick and efficient since successful businessmen usually don't have much time available.
9. Is profitability the only factor considered by the judges in evaluating a the success of a business?
No, contributions to the community were also considered.
Corporate Social Responsibility (CSR) is also stressed.
10. What was the most difficult part of the presentation for the students?
The question and answer (Q&A) session afterwards. They had to "think on their feet" and provide convincing answers to difficult questions they weren't expecting.
11. How do the questions asked by the judges simulate real business?
The questions raised are "pointed critiques" that simulate "the intense pressures that executives and board members of real companies regularly experience."
12. What are some of the problems encountered in targeting the university student market segment?
University students usually don't have a lot of money to spend ("low purchasing power") so they "frequently evaluate whether a product is a genuine necessity."
13. What kind of products are university students more likely to purchase?
They are more likely to purchase "essentials" and "necessities" for student life like pre-paid phone cards and computers.
14. How do students apply what they've learned in the classroom to running a real business?
They have to adapt "classroom knowledge" or "book knowledge" to the "realities of their day-to-day business operations," and if it isn't applicable, they must improvise.
15. What products is direct sales not effective for? Why?
Direct sales is not effective for expensive or technical products because these products require credibility, so they are better sold through specialised stores.
