Understanding between entrepreneurs and small business owners.

The purpose of this project is for you to demonstrate an understanding between entrepreneurs and small business owners. You will also be relating how a business contributed to the economy in the 1990’s. Outcomes Met With This Project: discuss the financial, economic, regulatory, sociopolitical, and technological factors as they relate to a dynamic business environment identify the critical business functions and how they interact in order to position the organization to be effective in the current business environment explain the importance of the integration of individuals and systems to organizational effectiveness Skill Building: You are also completing this project to help you develop the skills of critical thinking, writing and developing a personal brand. Writing is a critical skill because in business it is important to convey information clearly and concisely and to develop a personal brand. Developing a personal brand is important because it is the ongoing process of establishing an image or impression in the minds of others especially those in positions above you. Having a strong personal brand can lead to opportunities that include promotions. Case Scenario: Read the following case scenario and answer the questions that follow: In 1994, Leslie Blodgett became CEO of a small bath and body retailer of mineral-based powder makeup, Bare Escentuals, located in a town in California. Although Bare Escentuals was the first company to offer mineral-based products, the colors of the products did not fit well with the skin tones of women. Having worked for Neutrogena and Max Factor, Blodgett set out to formulate beauty products that worked harmoniously together. The new line of makeup was known as BareMinerals and consisted of six blushes, six eye shadows, five powder foundations and brushes. The mineral-based foundation product was unconventional and provided light to maximum coverage for all skin types, which appealed to men and women of all ages. Products did not contain chemical additives, preservatives, oil, fragrances, waxes or binders that could lead to skin irritation. Two years passed and Blodgett was losing hope that the product line was going to be successful. After watching the TV shopping network, QVC, Blodgett devised a plan to go on QVC to sell BareMinerals. The first airing resulted in sales of $45,000 of products. Blodgett had her in and continued to sell on QVC selling $1.4 million of product an hour. She further expanded the business by doing Infomercials, which allowed more time to explain the products and application process. Widening the distribution channel, Blodgett offered events at boutiques and specialty cosmetic stores, and solicited input from customers for product and marketing ideas. Blodgett learned that the business required taking care of customers and hiring people who loved people because the business was about helping women feel good about themselves. Business at Bare Escentuals was booming and the company was growing at a fast pace. In 2006, the company went public. Headquarters was moved to New York.

In 2010, after 16 years at the helm, Blodgett sold the company to Shiseido, a Japanese-based cosmetic company, for almost $1.7 billion. To Blodgett, the deal made sense because Shiseido had distribution channels in 87 countries and had the knowledge to expand further into Asia. Blodgett wanted to be more involved in the creative side of the business so she stepped down as CEO and took a position reporting to the Chief Operating Officer (COO) of Global Business at Shiseido. Instructions: You will use the following steps to complete this project. Make sure to complete each step to ensure the highest possible grade. Note that you are using the case scenario facts and the course material. External sources are not permitted. Step 1: Create Headings You will use the following headings for this project. Make sure that each heading is in place and use the headings as a guide to write each section of the project. Introduction Entrepreneur Versus Small Business Owner Entrepreneurial Traits Demonstrated by Blodgett Entrepreneurial Categories Bare Escentuals’ Contribution to the Economy in the 1990’s Factors of Production Conclusion Step 2: Write an Introduction paragraph The Introduction paragraph is the first paragraph of the paper and will be used to describe to the reader the intent of the paper explaining the main points covered in the paper. This intent should be understood prior to reading the remainder of the paper so the reader knows exactly what is being covered in the paper. Write the introduction last to ensure all of the main points are covered. Step 3: Entrepreneurial Traits You learned about entrepreneurs and small business owners. Although these terms may appear synonymous, they are not. As CEO of Bare Escentuals, Leslie Blodgett could be depicted as an entrepreneur. Using the course material to support your ideas and reasoning: Differentiate between an entrepreneur and a small business owner. Discuss how Blodgett demonstrated entrepreneurial traits. Discuss the different categories of entrepreneurs and identify which category best fits Blodgett.