what are the factors that had the most positive influence on Bobby’s entrepreneurial activities?
Coffee republic was first founded by Bobby Sahar Hashemi in 1995 who notice the gap in the market where they could sell their high-quality product at affordable price.
Factors that have the most positivity influence on bobby’s entrepreneurial activities are
Bobby grew up in an environment that encourage discipline and hard work, he changed his course from computer engineering to Business and Finance because had feeling he could make more money in business rather than working in the office. Bobby use to work as an investment banker in New York. However, he had lots of ideas on business, but it had to be on hold while he deals with the work at hand. When he lost the challenge that his father gave him that is to turn £10,000 to £100,000 he then learnt that “There is no such thing as easy money”. Bobby went on to MBA to improve his ability. Bobby established his entrepreneurial skills through not only his initial willingness to pursue his bright idea, but also his perseverance in seeing it through
After the death of his father he felt the need to be with his family. Bobby was currently working at Lehman Brothers when he received the sad news about his father, the company gave his six-month break which he came back to London. Around 18month later, bobby was thinking of how start a business of his own. With the help of his sister, who recently came back from south America and on way, she branched through New York before coming back home. she visited to a coffee shop on Madison and 44th Street and enjoyed the cappuccinos and fat-free carrot muffins. When she came back home, she told her brother about the coffee she had in New York, not knowing that he was already aware of while he was US. After hearing from his sister about the coffee she had in the us, he noticed that London do not have much delicacy sahar was talking about. Bobby was quick to focus on the gap in the UK market. With the help of his sister, he was able to achieve his goals after lots of research.
Using the trait theory, identify and evaluate the characteristics that bobby demonstrates as an entrepreneur?
Creative and innovation
Bobby had a lot of ideas in business, however he could not achieve because he was not sure of what to do, how to do it and, he was working at Lehman Brothers. After the death of his father, the Lehman Brothers gave a six-month break with a transfer to London, he felt the need to be his mother and sister. After a while bobby start to think of starting his own business. In November 1994, bobby came up with the idea of opening a US-Style coffee bar in London after his sister sahar told him about her incredible experience of coffee when she went to New York, where she was travelling as tourist. Then the idea clicks on bobby’s mind. Bobby and his sister did some research and found out that people in UK do take more of coffee than tea, but” there are no outlet serving this market”. Says Bobby. They were quick to find the gap in the market and how he was going to fill it.
Need for achievement
Because their mission was to open 200 stores, bobby used the Franchising strategy. “Franchising provides the safety net of an established brand and business concept for a start-up”.’ Says bobby. And they believe that they will achieve it. With the interest of the investors, Coffee Republic lunched its first franchising in December 2005, and the company now has eight franchisees up and running
Internal locus of control
Bobby and sahar believes that they can create their own luck by hard work and effort, despite the large multinational competitors such as Starbucks and Costa coffee. They chose a location close to them saying “The market is big enough for the top three players. That is ourselves, Costa and Starbucks.
Drive and determine
Bobby and his sister set a mission to open 200 stores and become the main competitor to Starbucks not just in the uk but internationally. They were refused numerous bank loan but because they were determining to make it happen, they continue with the plan until they got it from NatWest bank. They start the business by finding the best location, designing the coffee bar, negotiating with potential suppliers, staff employment and so on. Despite the setbacks, they continued with the plan because they were determined and have a strong belief about the business. In 1995 coffee republic was launched. And In 2000 coffee republic have over 60 coffee bars and planned to open more.
Moderate risk taker
Bobby is not afraid to take risk, he opened their store in Mayfair close to Starbucks and costa coffee because they have more customer loyalty and they are also his main competitors in the market. “We actually choose locations where there is already a Starbucks, for the same reason that Indian and Chinese restaurants locate close together – it attracts a larger catchment area.” Says bobby.
Bobby have of a pull factors(physiological) because he wanted to make his own business to gain wealth also be recognized by competing with Starbucks and Costa coffee which are human capital.