Nicholas Barnard EC200 Journal #5 MWF 1-1:50
I have a good friend who I met when we were both managers at McDonald's. He had significantly more experience in managing a restaurant than I did, having owned his own Pizza restaurant, and store managed for Donotos, and Papa Johns, and assistant managed for McDonald's. He recently emailed me a business plan. I am going to obscure some of the details, replacing the product that he is selling with widgets.
He sees a huge void in widgets in Middletown, his market. He states: “We currently are afforded an opportunity to capture a virgin market. There is not a branded [widget seller] or other name brand location within ten miles of Middletown. A great number of people I've spoken with currently drive the 15 minutes just to get a good [widget]. One of the many advantages of this is the ability to open without having a branded name.” Right now he sees the ability to have a short run economic profit, due to the fact that there is no competition in widgets currently. He will be entering a monopolistic competion market, being the only seller, a favorable condition for economic profits.
I see this business plan as an attempt to fully utilize his human capital. He is well experienced in starting and running a business, but at the moment is using none of that experience. He also is considering adding another distribution point, while used in other businesses, has never been used in the widget market. What he is doing is entrepreneur-ship, bringing together his knowledge, and capital, along with adding technology from another business type.
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