Spring 2012 Entrepreneurship (MGT602) Sample solution of Assignment no.

01
Requirements:
Assume that you are a researcher and conducting a research on the process of adoption of entrepreneurship among young graduates. You are required to answer following questions. 1. What are the phases of entrepreneurial process you will identify while going through this scenario? Justify your answer. (10 marks)

The process of Entrepreneurship is mainly described in four phases. 1. 2. 3. 4. 5. Identification of the opportunity Evaluation of the opportunity Development of the business plan Determination of the required resources Management of the resulting enterprise

(2 marks)

In the given scenario following phases of entrepreneurial processes are identified. Mr. Javaids observations revealed an opportunity in its current employment tenure. He identified an opportunity of manufacturing auto-parts at a small scale. (identification of the opportunity) (2 marks) Mr. Javaids initial evaluation unveiled the reasonably high demand of auto-parts in the market. These initial encouraging results motivated him to start his own business and fulfill his vision. Besides, manufacturing of these auto-parts at low cost also urged him to commence his own business. (evaluation of the opportunity) (2 marks) His personal savings and borrowings from friends and family members helped him to accumulate the financial resources. This initial investment led him to commence his own entrepreneurial venture. (determination of required resources) (2 marks)

 The effective management of the business led him to yield 70% return on investment by the end of first year which can imply better business process and optimal resource utilization. (management of the resulting enterprise) (2 marks)
2. Which of the following factors if added to the scenario will lead Mr. Javaid not to pursue his dream and to continue his job? Justify your rationale. (10 marks)

Entrepreneur is a person having strategic orientation, commitment to opportunity and resources and control over resources. Its internal locus of control, risk taking tendency and need for achievement motivates him/her to achieve its goals. Each scenario indicates different circumstances, an entrepreneur may confront while commencing its business. (2 marks) Any of these three factors mentioned in the question can lead an entrepreneur, not to start a business. These three factors are described to expose the barriers, an entrepreneur may face while commencing its business. Absence of following characteristics in any case may lead him to NOT to start his business and vice versa is also true. (4x2 = 8 marks) 1. 2. 3. 4. 5. Strategic orientation Risk taking ability Opportunity seeker Control over resources Internal locus of control

The first mentioned factor of two-fold salary increment and promotion might led him not to pursue his vision. Pragmatically Mr. Javaid must look at the long term prospects of starting his business or retaining the job. His commitment to opportunity and motivation must motivate him to avail the opportunity.

Second factor implicates that initial failure might led him, not to start his business but an entrepreneur is always an opportunity seeking person. As the case reveals that his intended automobile parts will no longer be used in auto manufacturing hence will be obsolete in near future. Being a true entrepreneur he must scan further opportunities available to earn profit in the business sector and can start his business later on after the identification of the opportunity and calculation of the associated risk. Third factor associates the social elements as an important determinant in the adoption of entrepreneurship. The social conditions, micro and macro-economic conditions, can lead a person, not to avail an opportunity and adopt risk aversive behavior. In contrast an entrepreneur is always a risk taker and takes calculated risk. Mr. Javaid must identify certain risks associated with starting a business and must achieve a state of self-confidence in business success. This will certainly help him to face social barriers and commence his own business. Marking Strategy 1. It was mentioned in the teachers guide that irreverent material will not be graded. 2. It was mentioned in the teachers guide that any text copied from internet without any reference or from students blogs will be marked as ZERO. 3. Corrupted file (if not repairable) will be marked as ZERO. 4. Any file received after the due date will not be entertained. 5. In question no. 2 any of the above mentioned three options can lead Mr. Javaid, not to commence his business. Students selected answers may vary since there is no right and wrong option. 6. In Question no. 2, marks will be granted on the basis of arguments presented to accentuate selected option. 7. Any identical answer copied from following or any other relevant source will be marked as zero in the account of plagiarism.

http://www.chegg.com/homework-help/questions-and-answers/background-entrepreneurship-widelyscoped-business-perspective-having-multiple-horizons-di-q2406661

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