Bit200 Enterprise And Entrepreneurship Assessment Answer

[Question 1]

What makes a company a market leader? Why do firms work hard to obtain market leadership, with the aid of an example?

[Question 2]

S&G furniture outlet is a start-up with about 20 sales representatives. The company has a solid product line but knows that to remain competitive it must continue recognizing opportunities for new products and services. The firm has not developed a systematic way for its sales staff to report new ideas. Suggest the three-step procedure that S&G furniture outlet can record and protect the ideas of its sales reps.

[Question 3]

Identify and explain with justification whether Lazada and Amazon are considered direct or indirect competitors.

[Question 4]

During the early days of e-commerce, “first mover advantage” was touted as one way to success. On the other hand, some suggest that being a market follower can yield rewards as well. 

Explain the concepts of first-mover advantage and market follower. Which approach has proven to be more successful? Explain and justify your choice with examples.

[Question 5]

Rowan is a graphic designer who has left his job with an advertisement company and wanted to start his e-commerce business. He knows that feasibility analysis such as industry/ target market feasibility is to discern the pros and cons of undertaking a project with a targeted market before he invests time and money into it. If Rowan asked you for your advice, what would you tell him and what rationale for your decision would you provide to Rowan?

a) Why is Rowan specifically focusing on industry / target market feasibility? (2 marks)

b) How will industry / target market feasibility help him to make the decision to start the business?

c) Explain the difference between a firm's industry and its target market, and which one should Roman focus for his business?

[Question 6]

Kenny's Dilemma

Kenny is a senior programmer in Allan’s Software House. Kenny had learned almost all that he knew from Allan, who is his first and only employer. Kenny was married and had three young children. He was 33 years old and had worked for Allan ever since he finished his study and graduated as Degree holder. For past 12 years, Kenny had polished his skills under the watchful and critical eye of Allan. Allan was quick to recognize Kenny's talent as he has a positive attitude about learning and displayed a drive for perfection that Allan admired.

Allan's Software House was a successful small business. Its success was based mostly on the reputation for quality programs that had been established over its 42 years in operation. Allan had come to this country with his new wife, Alice, when he was in his late twenties. Now the business was a success, but Allan remembered the early years when he and Alice had to struggle. Allan wanted the business to continue to produce the highest quality programmers and applications. On a Friday evening, he called Kenny into his office at closing time, poured him a cup of half-day-old coffee, and began to talk with him about the future.

"Kenny, Alice and I are getting old and I want to retire. It has been 42 years of fun but these old hands need a rest. In short, Alice and I would like you to buy the business. We both feel that your heart is in creativity and that you would always retain the quality that we have stood for." Kenny was taken back by the offer. He, of course, knew Allan was getting older, but had no idea Allan would retire. Kenny and his wife, Jennifer, had only RM5,500 in the bank. Most of Kenny's salary went for the normal costs of rearing three children. Allan knew Kenny did not have the money to buy the business in cash, but he was willing to take a portion of the profits for the next 15 years and a modest initial investment from Kenny. Kenny had, for the past four years, made most of the technical decisions in the software house. Kenny knew the customers and was well respected by the employees. He had never been involved in the business side of the operation. He was a high school graduate but had never taken business courses. Kenny was told by Allan that even after deducting the percentage of the profits he would owe under the sales agreement, he would be able to almost double his annual earnings. Kenny would have to take on all the business functions himself because Jennifer had no business training either.

a) Explain which entrepreneurial characteristics Kenny should have, that may be important to his success in business.

b) Explain the characteristics that could lead Kenny to fail in the business

c) Identify the steps Kenny should take to avoid the pitfalls which is common to all small businesses?

[Question 7]

Caroline, a long-time friend of yours, is disenchanted with what she perceives to be a lack of quality in the local restaurants servicing Western-based foods.  In talking to you about this, Caroline says, “My grandparents are Canadian.  Over the years, I have learned a great deal about cooking great Canadian dishes just by watching them in the kitchen.  There is no doubt in my mind that I could easily open a restaurant and be quite successful.”

How would you respond to Caroline’s comments? Relying on the insights associated with *Porter’s five forces model*, what would you recommend her to consider before opening a western food restaurant? Explain your answer with justification.

[Question 8]

Carmen has been working in the hospitality industry for a while and one of the concerns which tourists and even locals from Pulau Redang have expressed to her that they want a new experience. She has always had a desire to start her own business, so she started to think of Carmen’s Local Tours. These would include hikes through the country, beach night tours, cooking classes and many other ideas. However, although Carmen has the idea, she is unsure as to how to move from that point to actually starting the business. As a result, she has decided to approach you as a business consultant for clarification on various aspects which may be required.

a) Explain the FOUR areas of feasibility analysis which should be taken so that Carmen can determine the feasibility of the idea.

b) Identify the strategies that Carmen should use to overcome the potential competitors. Justify your answer with examples.

c) Should Carmen explore debt of equity finance? Give TWO reasons for your answer.

[Question 9]

Protecting Your Intellectual Property

Ahmad, Hassan, and Rahmat were childhood friends who had always talked about starting a business together after university graduation. Ahmad had the financial background and startup capital to contribute and Hassan and Rahmat had the technical knowledge they believed would give them the competitive advantage needed to become an industry leader. During their early university years, Hassan and Rahmat developed a new and innovative way to manufacture computer components. When they shared their idea with Ahmad, he was able to draw up a detailed business plan to present to potential investors when the three were ready to launch their venture. They had been very careful not to disclose anything about their innovative idea to other colleagues or any of their friends and were anxious to get started.

After selecting the company name "SK Computers" the three friends come to you for advice on intellectual property rights.

a) Identify and explain the intellectual property rights that they can use to protect their innovative ideas from unauthorized use. (9 marks)

b) Should they consider protecting or registering their company name? Which intellectual property would cover this concern? Could they use the name without registering? Explain your answer.

[Question 10]

Allan and his friend Steve Wozniak were self-taught engineers who created one of the most popular, revolutionary, technology brand, “Stevebook”. Allan was not the first person to have an idea to create a user-friendly computer, and he was not the first person to come up with an idea about music players or smartphones, but he was the first person to implement them.

He knows that feasibility analysis such as industry/ target market feasibility is to discern the pros and cons of undertaking a project with a targeted market before he invests time and money into it. If Allan asked you for your advice, what would you tell him and what rationale for your decision would you provide to Allan?

He covered potential ideas and then implemented them in ways that no one had ever dreamed of before.

(1. Identify and explain any TWO traits/characteristics of Allan that helped him to be successful in his business.

2. explain for case study about Product Demand, Market feasibility, Organizational feasibility, Financial feasibility, personal financing/ equity/ angel investor based on the question 2)