MGT602= t Midterm Subjective Solved from Past Papers
By::: YASIR JAVAED
Characteristics of searching an outside partner. (3
Marks)
Following are a few things that one always tries to search
in their partner and which not only makes a great partner but also are the
characteristics of a great relationship.
· Someone who is caring and honest.
· Someone who is open and
responsive and with whom you can confide in like a friend.
· Someone who is trustworthy and
who will risk his/her life for you
What is Business Plan. (3 Marks)
A business plan is a written document prepared by the entrepreneur
that describes all the relevant external and internal elements involved in
starting a new venture. It addresses both short- and long-term decision making.
The business plan is like a road map for the business’ development. The
Internet also provides outlines for business planning.
Why business plan is
significant. (5 Marks)
Business plan is significant
because, in running or starting a business, the learning curve is short before
you run out of resources and are forced to close. Therefore, a business plan
helps you set up a sound framework, model and system ahead of time, as well as,
treat potential problems and threats, so that you can capably run a business. A
funding business plan will save you a lot of time and money. The beautiful
thing about a business plan is that it actually creates the future of your
business, as you want it to be. It gives you more control over what future
success will come. More importantly, it gives you a great process to grow the
future business you desire, whether that is a start up, acquisition, expansion
or build out.
How present business plan to
potential investor
It is often necessary for an
entrepreneur to orally present the business plan to investors.
Typically the entrepreneur
provides a short (20-30 minutes) presentation of the business plan. The
entrepreneur must sell their business concept in a short time period. A venture
capitalist or angel group may also ask the entrepreneur to present the plan to
their partners before making a final decision.
Strategic issues in
international entrepreneurship
Strategic Issues to Consider:
1. Is rapid
entry into the market needed?
2. Will joint
venture result in obtaining a competitive advantage?
3. The
allocation of responsibility between the U.S. and the foreign operation.
4. Would the
joint venture lower the chances of expropriation (mining ventures)?
5. What’s the
degree of standardization possible?
What will your strategic
planning while enter international market
When you decide to enter into the
international market you should keep few things in mind. When you decide to
enter into the international market you should change your mindset. Each and
every country has its own tradition and culture. The same product, brand name
and marketing campaign are not sufficient to introduce your business to other
countries. You have to know about the country and the requirements specific to
the nation. The important thing that is required is the research about the
country you are trying to expose your business into. Study the culture,
requirements and the market for your product. Learn about the international policies
of the country to avoid legal problems later. Talk more about your
international marketing strategy to friends and relatives living in other
countries. As you spend more of your time in doing this research you will be
able to get a clear idea of what people in other countries want from you. It is
important that you have to build a trust among the people about your product
Why entrepreneur should have
good relation with lawyer
1. Trust:
Building a good relationship with an attorney who’s conscientious and cares
about your success is invaluable. Having a thoughtful and client-oriented
lawyer will give you a sense of security and peace of mind.
Your attorney will do your
worrying for you and identify the risks that can affect you then give you a way
to avoid them.
2. Save time:
Time is money, and your time is best spent making money.
A good attorney will already know
what you’re up against and most times will find an answer faster than you can
because of their training.
3. Knowledgeable
Your attorney should be up to
date on all of the current decisions and regulations that affect your
particular business situation. He should also be aware of local, state, and
federal laws that affect your business. This knowledge base can go a long way to
helping you get better deals, avoid bad deals, and avoid compliance issues.
4. Skill set:
Your skill set is your talent and identifying the resources to make your talent
profitable.
5. Focus/Freedom
Having an attorney handle your
legal affairs saves you money in the long run because your focus and attention
doesn’t have to waiver or split between your business goals and effectively
achieving those goals in the most risk averse manner.
6. . Leverage
The best way to leverage your
negotiations to maximize their profitability and reduce risk is to have a
skilled attorney handle them for you.
Difference b/n indirect export & direct export
(3)
Exporting
As a general rule, an
entrepreneur starts doing international business through exporting.
Indirect exporting
involves a foreign purchaser in the local market or using an export management
firm. For certain commodities, foreign buyers seek out sources of supply.
Export management firms, another indirect method, are located in many
commercial centers.
Direct exporting
through independent distributors or through one’s own overseas sales office is
another entry method. An independent foreign distributor directly contacts
foreign customers and takes care of all technicalities. Entrepreneurs who do
not wish to give up control over marketing can open overseas sales offices and
hire their own salespeople.
Explain “business method patents” (3)
A patent is a contract between
the government and an inventor. The government grants the inventor exclusivity
for a specified amount of time. At the end, the government publishes the
invention, and it becomes part of the public domain. The patent gives the
owners a negative right, preventing anyone from making, using, or selling the
invention.
Types of Patents
·
Utility Patents
·
Design Patents
·
Plant Patents
·
International Patents
Situation of entrepreneurship in Far East (5)
·
Entrepreneurial success in some Asian countries
has been significant because of the culture and the political and economic
systems.
·
The Malaysian government has established the
Malaysian Industrial Development authority to promote efforts to eradicate
poverty, but has not accomplished much.
·
In Singapore, entrepreneurial success is greatly
esteemed.
·
Japan’s social structure discourages
entrepreneurship.
·
Hong Kong is a major entrepreneurial center.
What should kept in mind to create a website (5)
A successful website has three
characteristics: speed, speed, and speed. Short download time should be the primary
concern of website developers. A website should be easy to use, customized for
specific market target groups, and compatible with different browsers. If the
company is targeting international markets, then translation and cultural
adaptation need to be considered. Probably the most difficult aspect of setting
up an online business is advertising and promoting the web pages. A company can
advertise its website through search engines, banner ads, e-mail, and
classifieds. Banner ads can be targeted to the exact audience of the firm. The
entrepreneur should collect e-mail addresses from customers for targeted e-mail
campaigns. The Internet offers many low-cost or free services for small
businesses, including Internet access, unlimited e-mail accounts, online
calendar, instant messaging, and online conference rooms.
Difference b/n international &
domestic entrepreneurship (3)
Whether international or
domestic, an entrepreneur is concerned about the same basic issues- sales,
costs, and profits. What varies is the relative importance of the factors being
considered. International entrepreneurial decisions are more complex due to
uncontrollable factors such as the following.
·
Economics
·
Balance of Payments
·
Political-Legal Environment
·
Cultural Environment
·
Technological Environment
Consumer can help in creating new idea for new product.
Discuss how the consumer can be helpful. 3
Potential entrepreneurs should pay close attention to the
final focal point of the idea for a new product or service the potential
consumer. This can be an informal or formal survey of consumers expressing
their opinions. Care should be taken to ensure that the idea represents a large
enough market.
What is copyright? What are its limitations? 3
Limitations
All other uses require permission and copyright owners can
license or permanently transfer or assign their exclusive rights to others.
Copyright does not protect ideas, only their expression or fixation. Without
the permission of owner you cannot have a right to copy.
General Agreement on Tariff and Trade (GATT) and its
working I think ask from teacher? (05 Marks)
GATT is a
multilateral agreement with the objective of liberalizing trade by eliminating
tariffs and import quotas. In each round, mutual tariff reductions are
negotiated between member nations. Members can ask for investigation of
violations. While GATT has helped develop more unrestricted trade, its
voluntary membership gives it little authority.
What is Trademark? Discuss the categories of Trademark?
(05 Marks)
A trademark may be a word,
symbol, design, or some combination that identifies the source of certain
goods.
A trademark can last
indefinitely, as long as it continues to perform its indicated function.
The trademark is given a 20-year
registration with 20-year renewable terms.
In the fifth to sixth year, you
must file an affidavit with the PTO indicating that the patent is in commercial
use.
Today the law allows filing a
trademark solely on the intent to use the trademark in interstate commerce.
There are benefits to registering
a mark that has already been in use.
Categories of
trademarks:
·
Coined marks denote no relationship between the
mark and the goods and afford the possibility of expansion.
·
An arbitrary mark is one that has another
meaning in our language.
·
A suggestive mark is used to suggest certain
features or characteristics of a product or service.
·
A descriptive mark must have become distinctive
and gained recognition before it can be registered.
·
Registering a trademark can offer significant
advantages to the entrepreneur.
Question No: 41 ( Marks: 10 )
In the given situations what types of merger is suitable
for each situation and why?
· McDonald’s with KFC
· One steel mill with another
steel mill
· ABN AMRO with Royal bank of
Scotland
· Steel mill with a fertilizer
producing firm
· An oil cooking producing
company with Desi Ghee producing company
McDonald’s with KFC: The merger in this case
will be a horizontal merger because they both produce related products, which
is the condition of horizontal merger.
One Steel Mill with other Steel Mill: The two
steel mills will merge horizontally because both the mills are producing
similar product.
ABN AMRO with Royal Bank of Scotland: Both the
banks will merge horizontally because both are providing similar type of
services.
Steel mill with a fertilizer producing firm: Since both the
firms are non-interrelated so this merger will be a diversified merger.
An oil cooking producing company with
Desi Ghee producing company: The merger in this situation will be a
production merger because production of both products is related but the
products themselves are not competing.
Question No: 36 ( Marks: 5 )
Which factors should be studied by entrepreneur to
conduct environmental analysis while preparing a business plan? Explain the
factors.
The entrepreneur should first conduct an environmental
analysis to identify trends and changes occurring on a national and
international level that may impact the new venture. Examples of environmental
factors are:
· Economy
· Culture
· Technology
· Legal concerns
·
Economy: The entrepreneur first
wants to know the economic situation of country where he wants to start the
business because this has great impact on its success. If economical situation
is not stabilizes then investors will not willing to invest with us, which is
the first step for every beginning of business.
·
Culture: It has too much influence
on our products which we made. If we produce such thing which is not familiar
to people where the business operate there should be loss for. For example; if
Bonanza will start to produce Shalwar & Kameez suits in Arab countries who
will buy, because in Arab countries there culture is different from us. So, entrepreneur
must first look about the culture trends.
·
Technology: Now a day’s
technology changes day to day. Every day or week new inventions is there in
market, which help us to make business easy for us. We should keep update
ourselves in technology perspective to save more money and produce more.
·
Legal Concerns: These are
important issue for every entrepreneur. As every country have its own and
different laws there. Therefore, he/she must be having knowledge about the
limitations and permissions from government of that country where he/she want
to do business.
Question No: 37 ( Marks: 5 )
While entering into the international market the
companies usually have strategic planning process. What should be considered in
the strategic planning?
Strategic Planning offers ideas on how to match the
organization’s design to its products and capabilities, goals and resources.
This process is much easier to execute once you have obtained a basic knowledge
of exporting value-added food products, understand the marketing research
process, and analyzed the elements of the marketing mix. Proper organization,
both internally and externally, allow the firm to become more efficient in its
operations and expansion.
After the information the first step in building a successful
export strategy is determining the firm’s readiness to export. The following
are guidelines on preparing an export business plan, developing export
marketing skills, designing a template for an export marketing plan and
considering marketing tools prior to engaging directly in promotional
activities.
What are the key environmental factors which
differentiate international entrepreneurship from domestic
entrepreneurship? 3marks
Factors Which Differentiate International Entrepreneurship from Domestic Entrepreneurship
Factors Which Differentiate International Entrepreneurship from Domestic Entrepreneurship
·
Economics
·
Balance of Payments
·
Type of System Barter, third-party arrangements
·
Political-Legal Environment
·
Cultural Environment
·
Technological Environment
·
Strategic Issues
Question No: 35 ( Marks: 3 )
Describe any three issues that
should be addressed in executive summary.
Executive Summary
This is prepared after the total
plan is written. It should be three to four pages in length and should
highlight the key points in the business plan. The summary should highlight in
a concise manner the key points in the business plan. Issues that should be
addressed include:
1. Brief
description of the business concept
2. Any data that
support the opportunity for the venture.
3. Statement of
you this opportunity will be pursued.
4. Highlight
some key financial results that can be achieved Because of the limited scope of
the summary, the entrepreneur should ascertain what is important to the
audience to whom the plan is directed
Question No: 36 ( Marks: 5 )
Briefly discuss the status of
entrepreneurship in Europe.
·
Europe has only recently become interested in
entrepreneurship.
·
Risk taking has been discouraged and business
failure considered a social disgrace.
·
Several changes in the social and political
climate have changed this traditional, security- conscious culture.
·
Exemplifying this new thinking are academics,
especially scientists and engineers.
·
Today more individuals are emerging in both
academic circles and large companies who are look for a challenge.
·
New government policies are making it easier to
raise money for starting up businesses.
·
The U.K. created the Business Expansion Scheme
in 1983 to provide capital to new business ventures.
·
In France several economic and social factors
cause difficulties.
·
Venture capital is managed by bankers, who are
risk averse.
·
Another hurdle is the French contempt for both
failure and success.
·
Research in Ireland and Sweden has explored the
nature of European entrepreneurship.
Question No: 37 ( Marks: 5 )
Discuss what kind of
information should be mentioned in “description of venture” section of a
business plan.
Description of the Venture
The description of the venture
should be detailed in this section. This should begin with the mission
statement or company mission, which describes the nature of the business and
what the entrepreneur hopes to accomplish. The new venture should be described
in detail, including the product, location, personnel, background of
entrepreneur, and history of the venture. The emphasis placed on location is a
function of the type of business. Maps that locate customers, competitors, and
alternative locations can be helpful. If the building or site decision involves
legal issues, the entrepreneur should hire a lawyer.
Question No: 35 ( Marks: 3 )
Briefly discuss licensing and
its benefits.
LICENSING:-
Licensing is an arrangement between two parties, where one party has
proprietary rights protected by a patent, trademark, or copyright. This
requires the licensee to pay a royalty to the holder of the proprietary rights
in return for permission to copy the patent. Licensing has significant value as
a marketing strategy to holders of patents.
Benefits Licensing
can increase revenues, without the risk and costly start-up investment.
Licensing can also be a way to start a new venture when the idea may infringe.
Question No: 36 ( Marks: 5
)
While using brain storming for new idea creation what
measures should be taken to acquire a good idea?
Brainstorming
A group method of obtaining new ideas and solutions is
called brainstorming. The brainstorming method for generating new ideas is
based on the fact that people can be stimulated to greater creativity by
meeting with others an d participating with organized group experiences.
Although most of the ideas generated from the group have no basis for further
development, often a good idea emerges.
CREATIVE PROBLEM SOLVING
Creative problem solving is a method for obtaining new ideas
focusing on the parameters.
Brainstorming
The first technique, brainstorming, is probably the most
well known and widely used for both creative problem solving and idea
generation. It is an unstructured process for generating all possible ideas
about a problem within a limited time frame through the spontaneous
contribution of participants. All ideas, no matter how illogical, must be
recorded, with participants prohibited from criticizing or evaluating during
the brainstorming session.
Reverse brainstorming
Similar to brainstorming, but criticism is allowed and
encouraged as a way to bring out possible problems with the ideas.
Question No: 37 ( Marks: 5
)
While developing the web site what characteristics should
be kept in mind?
A well designed website can bring
positive effect to a company’s image. It speaks a lot about your organization
and can give it public recognition. So, while creating a website certain things
have to be taken care of. Some of the points that should be strictly followed
for developing an effective website design are mentioned below:
·
Importance of Focus- first the target audience
should be determined and then the design should be done according to their
tastes and requirements. The site should be visually appealing and the content
should be simple. Otherwise the online visitors will click out of the site.
·
Reduced Loading Time- always avoid using large
images in a website. This is because; big images extend the loading time and
thus reduce a site’s possibility of getting public attention.
·
Keep the Site Simple- the site should be kept
simple. Insertion of too much flash elements should be avoided and the colors
used in the website should be eye soothing.
·
Importance of Balance- HTML can be used for
displaying all the links to the other web pages. However, while providing web
design solutions, the one thing that should be kept in mind is the browser
compatibilities.
How prepare business plan for
attract investors (3)
Investors provide large sums of
capital for ownership (equity) and expect to cash out within 5 to 7 years. They
will often place more emphasis on the entrepreneur’s character than lenders.
The venture capitalist will play an important role in management of the
business and wants the entrepreneurs to be pliable and willing to accept this
involvement. These investors will also demand high rates of return and will
thus focus on the market and financial projections. If the entrepreneur does
not consider the needs of these sources, the plan may be an internalized
document without consideration of the feasibility of meeting market goals. Most
external advisors and potential investors are bound by a professional code of
ethics regarding disclosure.
Question No: 41 ( Marks: 5 )
In which classification the
research on ‘business ethics’ can be broken down?
Research on business ethics can
be broken down into four broad classifications:
1.
Pedagogically-oriented inquiry
2.
Theory-building without empirical testing
3. Empirical
research, measuring the attitudes and ethical beliefs of students and academic
faculty
4. Empirical
research within business environments
Question No: 41 ( Marks: 5 )
Discuss the ‘age’ factor as an
important characteristic of entrepreneurs.
Age
Entrepreneurial age is the age of
the entrepreneur reflected in the experience. Entrepreneurial experience is one
of the best predictors of success. In chronological age, most entrepreneurs
start their careers between ages 22 and 55. Earlier starts in an
entrepreneurial career seem to be better than later ones. Generally, male
entrepreneurs start their first venture in their early 30s, while women tend to
do so in their middle 30s.
Question No: 42 ( Marks: 5 )
Elaborate the situation of
entrepreneurship in the Far East.
- Entrepreneurial success in some Asian countries has been significant because of the culture and the political and economic systems.
- The Malaysian government has established the Malaysian Industrial Development authority to promote efforts to eradicate poverty, but has not accomplished much.
- In Singapore, entrepreneurial success is greatly esteemed.
- Japan’s social structure discourages entrepreneurship.
- Hong Kong is a major entrepreneurial center.
Question No: 41 ( Marks:
5 )
What is meant by role models?
What role do they perform?
ROLE MODELS AND SUPPORT SYSTEMS
One of the most important factors influencing entrepreneurs in their career
choice is role models. Role models can be parents, relatives, or successful
entrepreneurs in the community. Role models can also serve in a supportive
capacity as mentors during and after the new venture is launched. This support
system is most crucial during the start-up phase.
It is important that an
entrepreneur establish connections to support resources early in the venture
formation process. As contacts expand they form a network with density
(extensiveness of ties between two individuals) and centrality (the total
distance of the entrepreneur to all other individuals.) The strength of ties
between the entrepreneur and any individual is dependent on the frequency,
level, and reciprocity of the relationship. An informal network for moral and
professional support benefits the entrepreneur.
Question No: 41 ( Marks:
5 )
Enlist any five
characteristics in which male entrepreneurs are different from female
entrepreneurs.
Education
Education appears important in
the upbringing of the entrepreneur, in the level of education obtained and in
playing a major role in coping with problems. Although formal education is not
necessary for starting a new business, it does provide a good background. In
education, female entrepreneurs previously experienced some disadvantage, with
few having degrees in engineering, science, or math. The ability to deal with
people and communicate clearly in written and spoken work is also important.
Personal Values
Studies have failed to indicate
that entrepreneurs can be differentiated on personal valued from managers,
unsuccessful entrepreneurs, or the general public. Leadership, support,
aggression, benevolence, conformity, creativity, veracity, and resource seeking
may also be important. A successful entrepreneur is frequently characterized as
a winner; winning may be a prerequisite for his or her actually becoming one.
Age
Entrepreneurial age is the age of
the entrepreneur reflected in the experience. Entrepreneurial experience is one
of the best predictors of success. In chronological age, most entrepreneurs
start their careers between ages 22 and 55. Earlier starts in an
entrepreneurial career seem to be better than later ones. Generally, male
entrepreneurs start their first venture in their early 30s, while women tend to
do so in their middle 30s.
Work History
Dissatisfaction with one’s job
often motivates the launching of a new venture. Previous technical and industry
experience is also important once the decision to start a business is made.
Experience in the following areas is particularly important: financing; product
or service development; manufacturing; development of distribution channels;
and preparation of a marketing plan. As the venture becomes established,
managerial experience and skills become more important. Entrepreneurial
experience becomes increasingly important as the complexity of the venture
increases.
MOTIVATION
While motivations may vary, the reason cited most often for becoming an
entrepreneur independence-not wants to work for anyone else. Other motivating
factors differ between male and female entrepreneurs. Money is the second
reason for men’s starting a venture. Job satisfaction, achievement,
opportunity, and money are the second order reasons for women.
Explain types of exchange systems & explain how
barter system emerged in international trade. 5marks
There are two type of exchange system
There are two type of exchange system
- Barter system
- Third party arrangement
Barter system
A method of
payments using non-money items
Third party arrangement
Paying for goods indirectly through another
source
Barter system emerged in international trade
The former USSR received technology and syrup from Pepsi and
provided it with Soviet vodka and rights to distribute it in the US. This is an
example of: barter system. Pepsi is used barter type arrangement that satisfied
both the socialized system of the former USSR and the U.S capitalist system. In
return of receiving technology and syrup form Pepsi, the former USSR provided
with company with soviet vodka and the right to distribute in the united state
What is gordon method how is it used for creative problem
solving? 3 marks
Gordon method is a method of developing new ideas when the
individuals are unaware of the problem. In this method the entrepreneur starts
by mentioning a general concept associated with the problem. The group responds
with expressing a number of ideas.
What are conditions of best partner? 3(marks)
A good partner help the entrepreneur achieve his or her goal
such as market access, cost sharing, or more competency obtainment. They also
share the entrepreneur’s vision and are unlikely try to opportunistically
exploit the partnership for their own benefit.
Why a lawyer is needed to create a new venture explain
reasons?
NEED FOR A LAWYER
NEED FOR A LAWYER
All business is regulated by law. The entrepreneur needs to
be aware of regulations that affect the new venture. At different stages the
entrepreneur will need legal advice. The legal expertise required will vary
based on factors such as type of product and organizational status. The
entrepreneur should carefully evaluate his or her needs before hiring a lawyer.
What R the Factors that
Facilitate the Growth of E-Commerce? (3 marks )
Factors that facilitate the
growth of e- commerce are:
1. The
widespread use of personal computers.
2. The adoption
of intranets in companies.
3. The
acceptance of the Internet as a business communications platform.
As an Entrepreneur if u start
new Business at which factors u would concentrate in the context of Economics.
(3 marks )
Economics
A domestic business strategy is
designed under a single economic system. Creating a business strategy for
multiple countries means dealing with different levels of economic development
and different distribution systems.
Discuss why it is necessary for an entrepreneur to have
good relationship with a lawyer.
The entrepreneur normally does not have the expertise and
much know how to handle possible risk associated with many different laws and
regulations. So , an entrepreneur needs help of a competent lawyer to
handle such situations nicely.
A good relationship with a competent lawyer may help
entrepreneur to eliminate risk associated with new starting business and it
will give confidence to the entrepreneur. The lawyer with whom you are going to
work should be some one you can relate easily and frankly with trust.
Problem Inventory Analysis Techniques. (5 Marks)
Problem inventory analysis uses individuals in a manner that is like to focus groups to generate new product ideas. However instead of generating new ideas themselves, consumers are provided with a list of problems in a general product category. They are then asked to identify and discuss products in this category that have the particular problem. This method is often effective since it is easier to relate known products to suggested problems and arrive at a new product idea then to generate an entirely new idea by itself.
Problem inventory analysis uses individuals in a manner that is like to focus groups to generate new product ideas. However instead of generating new ideas themselves, consumers are provided with a list of problems in a general product category. They are then asked to identify and discuss products in this category that have the particular problem. This method is often effective since it is easier to relate known products to suggested problems and arrive at a new product idea then to generate an entirely new idea by itself.
Discuss the role of export
management firm as an indirect source of exporting. 5
Export management firms, another
indirect method, are located in many commercial centers. For a fee, these firms
will provide representation in foreign market. Typically, they represent a
group of non-competing manufactures from the same country who have no interest
in becoming directly involved in exporting. The expert management handles all
of selling, marketing and delivery, in addition to any problem technical problems
involved in the export process.
Briefly discuss the product planning and development
stage. 5
This refining process- the product planning and development
process – is divided in to five major stages. Idea stage, concept stage,
product development stage, test marketing stage and commercializing; it result
in the product life cycle.
·
Idea Stage
Promising new product ideas should
be identified and impractical ones eliminated in the idea stage allowing
maximum use of company’s resources. In the systematic market evaluation
checklist method, each new product idea is expressed in terms of its chief
values, merits, and benefits.
·
Concept Stage
In the concept stage the refined idea
is tested to determine consumer acceptance without manufacturing it.
·
Product Development Stage
In this stage, consumer reaction
is determined, often through a consumer panel. The panel can be given samples
of the product and competitors’ products to determine consumer preference.
·
Commercialization
Although the results of product
development stage provide the basis of the final marketing plan, the market
test can be done to increase the certainty of successful commercialization.
·
Test Marketing Stage
The last step in the evaluation
process, the test marketing stage, provides actual sales results which indicate
the acceptance level of consumers. Positive test results indicate the degree of
probability of a successful product launch and company formation.
What activities are required at
Test Marketing Stage of Product Planning & Development Process? (3 M)
Test Marketing Stage Although the results of product development stage provide the basis of the final marketing plan, the market test can be done to increase the certainty of successful commercialization. The last step in the evaluation process, the test marketing stage, provides actual sales results which indicate the acceptance level of consumers. Positive test results indicate the degree of probability of a successful product launch and company formation.
Test Marketing Stage Although the results of product development stage provide the basis of the final marketing plan, the market test can be done to increase the certainty of successful commercialization. The last step in the evaluation process, the test marketing stage, provides actual sales results which indicate the acceptance level of consumers. Positive test results indicate the degree of probability of a successful product launch and company formation.
Discuss how can lenders evaluate the business plan. (5
marks)
Lenders are primarily interested in the ability of the new venture to pay back the debt and focus on the four C’s of credit:
Lenders are primarily interested in the ability of the new venture to pay back the debt and focus on the four C’s of credit:
1. The entrepreneur’s credit
history or character.
2. Their ability to meet debt and
interest payments (cash flow.)
3. The collateral or tangible
assets being secured.
4. Equity contribution or the
amount of personal equity that has been invested by the entrepreneur.
a.b.c. company want do international business discuss the
effects of trade barriers and effects on entrepreneur.
Entrepreneur’s Strategies and Trade Barriers
Entrepreneur’s Strategies and Trade Barriers
Trade barriers pose problems for entrepreneurs who want to
become involved in international business. Trade barriers increase the costs of
exporting projects to a country. Voluntary export restrictions may limit the
ability to sell products in a country from production facilities outside the
country. An entrepreneur may have to locate assembly or facilities in a country
to conform to the local content regulations.
Explain business method patent & give example.
3marks
A patent is a contract between the government and an inventor. The government grants the inventor exclusivity for a specified amount of time. At the end, the government publishes the invention, and it becomes part of the public domain. The patent gives the owners a negative right, preventing anyone from making, using, or selling the invention.
A patent is a contract between the government and an inventor. The government grants the inventor exclusivity for a specified amount of time. At the end, the government publishes the invention, and it becomes part of the public domain. The patent gives the owners a negative right, preventing anyone from making, using, or selling the invention.
Why business plan is significant. (5 Marks)
Business plan is significant because, In running or starting a business, the learning curve is short before you run out of resources and are forced to close. Therefore, a business plan helps you set up a sound framework, model and system ahead of time, as well as, treat potential problems and threats, so that you can capably run a business. A funding business plan will save you a lot of time and money. The beautiful thing about a business plan is that it actually creates the future of your business, as you want it to be. It gives you more control over what future success will come. More importantly, it gives you a great process to grow the future business you desire, whether that is a start up, acquisition, expansion or build out.
WHAT IS INTELLECTUAL PROPERTY?
Intellectual property which includes patents, trademarks,
copyrights, and trade secrets represent important assets of entrepreneur and
should be understood even before engaging the services of an attorney. Because
entrepreneurs often don’t understand intellectual property, they can ignore
steps that should be taken to protect these assets.
What activities are done at product development stage pf
the product development process?
In this stage, consumer reaction is determined, often
through a consumer panel. The panel can be given samples of the product and
competitors’ products to determine consumer preference. Participants keep the
record of their use of product and comment on its virtues and deficiencies. The
panel of consumers is also given a sample of product and one or more
competitive product simultaneously. One test product may already be on the
market, whereas the other test product is new.
Question No: 42 __ (
Marks: 5 )
ABC firm (a renowned company)
wants to own foreign subsidiary in other country named Z.ABC firm wants to
reduce the risk with a quick entry in the market of country Z. but the firm is
not much familiar with the culture and market structure of the country Z.
Which type of investment would
you suggest the ABC firm should do? Support your answer with sound reasoning.
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