Evaluating Business Opportunities

Assignment A

1. Explain the legal issues related to a new venture in B-2-C space. You are expected to clearly state your assumptions.    

2. What is the process of identifying business opportunities? What role does Macro analysis play in identifying these opportunities? Explain with relevant examples.    

3. Critically evaluate the statement 'Failure is not about insecurity. It’s about lack of execution'. Support your answer with examples.

4. What role does a market research plan in evaluating the new business opportunity? Describe different tools available with an entrepreneur to evaluate the opportunities.

5. Explain in brief the steps involved in structuring the new business venture?    

6. In the early stage of the venture, what financial options are available with an entrepreneur? Connect different finance options with the Business Life Cycle of the venture to clearly differentiate the options.    

7. Find an innovative solution to the problem of the availability of clean drinking water in rural India using any thinking technique of your choice. Your solutions should have a clear mention of assumptions, risks, finances and the team you work with.    

8. You are a young entrepreneur planning to start a unit to manufacture plastic granules for industrial use.
a. What are the various sources of funds available to you to arrange for working capital?

b. How would you convince, select and recruit your executive team to work with you?

Assignment B
Case Detail:-  

If a company can be named Google or Zynga and be successful, why not BooginHead? I know what you're thinking: What's a BooginHead, and can I use it as a Scrabble word? According to company founder Sari Crevin, the name refers to those times when someone "does something they shouldn't, but they do it regardless and it makes you laugh." A prime example is her toddler son, Jake, who liked to toss his Sippy cup on the floor over and over just for the sheer enjoyment of watching mom pick it up every time.
The thing about cute-product businesses like this one is that they can seem easy. Create an adorable product with an "awwwww" factor, and the rest is a breeze. Not so fast. "The juvenile industry is incredibly competitive," Calvin says. "It's one of the few industries where mom and pop operations can compete right alongside larger companies on the shelves. Because of that, the barrier to entry is smaller and each year you have more copycat competitors entering the space. But, also because of that fact, there is room for new and innovative products that otherwise would never make it to market."
Like many entrepreneurs, Crevin, a former Microsoft human resource manager, started the business because of personal experience. "I couldn't find a product that met my own needs and standards. I was tired of chasing after my one-year-old's sippy cup that he loved to throw from his high chair and stroller. I didn't want to walk into a store and see that someone else had already come up with an idea like SippiGrip and got it into stores first. I never want to look back and say, "coulda, woulda, shoulda.' "
Here are the three biggest mistakes Crevin made in starting the business: read and learn.
1. Trademark and brand name searches and clearances. "Over a year ago, out of the blue, I got a letter from Playtex that informed me that I could not use any form of the word 'binky' and my second product was called 'BinkiGrip'. There was a lot of scrambling to change the name and the packaging for everything I had in production. I ended up changing it twice before landing on PaciGrip.
2. Not investing in a good graphic designer sooner. "I worked with a lot of designers who were a lot less expensive but just couldn't deliver the kind of brand image I was looking for. Now that I have been working with my current designer for over two years, it's great to know that with each new product, packaging design and marketing materials generated, someone is watching out to make sure my brand's look and feel is consistent."
3. Short-term financial decisions. "There were many times in the beginning where I made financial decisions based on the short term rather than looking at the larger picture. What might have seemed expensive at the time, like flying in product for a retailer instead of letting it arrive by sea, really wasn't taking into account what was best for the company or the client long-term."
Now for the three best decisions Crevin made.
1. Invested in a good lawyer. "There are many places to cut corners, but a lawyer isn't one of them. Trademark and patent applications can be very tricky." Take note, those people heading over to LegalZoom.
2. Made product changes based on customer input. "I always listened to my customers and made changes and upgrades based on their needs. After reading reviews online for PaciGrip I realized how important it was that it worked with all brands of pacifiers. That alteration made it universally compatible and it is now my best-selling product."
3. Early trade show entry. "Even when my initial product, the SippiGrip, was still in the early stages, I took a leap and signed on as a vendor at the ABC Kids Expo Trade Show."
BooginHead now has sales exceeding $1 million a year. Calvin credits other mompreneurs for inspiration, including Tamara Monosoff of  Mom Invented and Kim Lavine of Mommy Millionaire.

Question:-
1. What, according to you, are the most important factors one should consider while choosing a brand name? 

2. What factors would you consider while establishing yourself in the so-called “juvenile industry”? Explain your answer with assumptions clearly stated in the beginning of your answer. 

3. With reference to the above case, what are short-term finance options available for an entrepreneur?

Assignment C

Question No.  1    Marks - 10
All but which of the following is considered to be a myth associated with entrepreneurship?
Options    
Successful entrepreneurs are born not made    
First ventures are always successful    
All entrepreneurs must willingly invest significant sums of money    
Successful entrepreneurs must have a break-through invention

Question No.  2    Marks - 10
A/An ______ is best described by stating it is any business that is independently owned and operated and is not dominate in its market.     
Options    
strategic alliance    
corporation    
small business    
proprietorship

Question No.  3    Marks - 10
For small business owners, one of the most important objectives is _______.     
Options    
market presence    
growth    
profitability    
innovation

Question No.  4    Marks - 10
Which of the following is not considered a common characteristic of an entrepreneur?    
Options    
Self-confidence    
High need for achievement    
Internal locus of control    
External locus of control

Question No.  5    Marks - 10
The entrepreneur who is committed to the entrepreneurial effort because it makes good business sense is classed as a/an _____.     
Options    
inventor    
opportunist    
hacker    
craftsperson

Question No.  6    Marks - 10
Jyoti is one of the newest and most successful entrepreneurs in the technology industry. She handles numerous dealings with other companies for the exchange of goods and services. Her primary goal is to ensure that all parties involved receive favorable and acceptable terms. Jyoti is most probably excellent at the entrepreneurial skill of _______.    
Options    
negotiating    
networking    
leadership    
analysis

Question No.  7    Marks - 10
The steps involved in an entrepreneurial endeavour include all but which one of the following?
Options    
Hiring a partner    
Selecting the type of legal structure    
Obtaining financing    
Business plan formulation    

Question No.  8    Marks - 10
The ideas for new businesses that are obtained by entrepreneurs are derived from many sources. These various sources include all but _______.    
Options    
replication of an existing business    
trade journals    
family members    
children

Question No.  9    Marks - 10
Common reasons for entrepreneurial failure include all but which one of the following?    
Options    
Poor implementation    
Lack of capital    
Adequate financial support    
Faulty product design

Question No.  10    Marks - 10
A/An ________ is defined as the blueprint describing the business strategy for entering the marketplace and explains the business to potential investors.     
Options    
competitor analysis    
spin-off    
business alliance    
business plan

Question No.  11    Marks - 10
Of the following, which one is not considered a key component of a business plan?    
Options    
Sources of funding    
Market trend analysis    
Methods for dissolution of the organization    
Description of products or services    

Question No.  12    Marks - 10
A(n) ________ is defined as a form of business that is an association of two or more people acting as co-owners of a business.     
Options    
proprietorship    
partnership    
corporation    
conglomerate

Question No.  13    Marks - 10
Which one of the following would not be considered an advantage to a partnership formation? 
Options    
Potential for double taxation    
Less governmental control    
Ease of formation    
Direct share of profits

Question No.  14    Marks - 10
Which one of the following would not be considered a disadvantage of a corporation?     
Options    
Limited continuality of life of enterprise    
Extensive government regulations of activities    
High incorporation fees    
Corporate capital, profits, dividends, and salaries are double taxed    

Question No.  15    Marks - 10
Entrepreneurships require financial backing in order to get started in the business world. Which of the following is not one of the methods commonly utilized to obtain the financial resources needed?     
Options    
Equity    
Commercial loans    
Personal finances provided by friends    
Venture capitalists

Question No.  16    Marks - 10
_________ financing is raising money by selling part of the ownership of the business to investors.    
Options    
Debt    
Equity    
Venture capitalist    
All of the above

Question No.  17    Marks - 10
Of the following, which one would not be considered an alternative to independent entrepreneurship?    
Options    
Franchise    
Spin-off    
Intrapreneurship    
Extrapreneurship

Question No.  18    Marks - 10
Of the following, which is best identified as an independent entrepreneurship that produces a product or service that originated in a large company?    
Options    
Spin-off    
Franchise    
Intrapreneurship    
Diversification

Question No.  19    Marks - 10
Of the following, which is best identified when a business with an established name and product is sold to additional owners along with the rights to distribute product?     
Options    
Intrapreneurship    
Entrepreneurship    
Franchise    
Spin-off    

Question No.  20    Marks - 10
Management tactics purported to maximize innovation for an entrepreneurship include all but which of the following items?     
Options    
Cutting of losses    
Culture    
Benchmarking    
Capabilities

Question No.  21    Marks - 10
______ is best described as doing something differently and has been described as discontinuous or complementary change.     
Options    
Entrepreneurship    
Innovation    
Variance    
Enterprise

Question No.  22    Marks - 10
In franchising, the entrepreneur assumes fewer risks because the franchise provides all but which one of the following?     
Options    
Established market for the product    
Management assistance in operating the business    
Economies of scale for purchasing    
Over sale of rights

Question No.  23    Marks - 10
Fewer, larger buyers is the key characteristic of _________     
Options    
Business market    
Consumer market    
Both a and b    
None of the above

Question No.  24    Marks - 10
Because of the _________ and the importance and power of large customers, suppliers are frequently expected to customize their offerings to the individual business customer needs.    
 
Options    
Larger customer base    
Mid-sized customer base    
Smaller customer base    
None of the above

Question No.  25    Marks - 10
_________ is the demand for business goods which results from the demand for consumer goods.    
 
Options    
Inelastic demand    
Derived demand    
Fluctuating demand    
None of the above

Question No.  26    Marks - 10
What is innovation?    
 Options    
The establishment of new methods of production, supply and distribution    
The renewal and enlargement of the range of products and services and the associated markets    
The introduction of changes in management, work organization, and the working conditions and skills of the workforce    
All of the above

Question No.  27    Marks - 10
Why do entrepreneurship and innovation go hand-in-hand?    
 
Options    
Entrepreneurs are both owners and managers of the business, so they are more likely to take calculated risks to pursue business opportunities    
Entrepreneurs have the capability and motivation to pursue innovative commercial opportunities that are riskier and more radical than normal.    
Entrepreneurs identify business opportunities and assemble the resources and capabilities needed to create value    
All of the above

Question No.  28    Marks - 10
What is a “born global” firm?    
 Options    
A firm that exploits commercial opportunities that arise from bridging resource inputs and market niches in different global locations    
A firm that has positioned itself as an international entrepreneurial broker    
A firm that is, from its beginnings, immediately or very quickly reliant on a global presence to survive and succeed    
All of the above

Question No.  29    Marks - 10
Bobby believes that what takes place within his new company is mostly the result of fate or factors that are outside of his control. It could be stated that Bobby possesses a/an __
Options    
innovative spirit    
external locus of control    
high need for achievement    
internal locus of control

Question No.  30    Marks - 10
Which of the following is not of the three generic forms of innovation activity in the organization's innovation location framework?    s 
Options    
Sensing    
Pooling resources    
Responding    
Implementing

Question No.  31    Marks - 10
Which of the following is not of the four types of distribution configurations in the organization's innovation location framework?    
Options    
Local-for-global.    
Centre-for-global.    
Local-for-local.    
Local-for-centre.    

Question No.  32    Marks - 10
What are the key drivers for the internationalization of innovation activities in an organization?    
Options    
Political power-seeking.    
Monopoly-seeking.    
Rent-seeking.    
None of the above.

Question No.  33    Marks - 10
All of the following are true, except:    
Options    
Ambidexterity is the ability of a firm to be embedded into domestic market R&D and innovation networks.    
Ambidexterity is the ability of a firm to manage effectively today’s and tomorrow’s business demands.    
Ambidexterity is the ability of a firm to be aligned and efficient in its management of today's business demands and to be adaptive to changes in the environment.    
Ambidexterity is the ability of a firm to continually come up with new technology platforms and new products, but also to improve current product lines.

Question No.  34    Marks - 10
What are small and medium-sized enterprises (SMEs)?    
 
Options    
Indian manufacturing firms qualify as SMEs if they invest less-than US$2 million in plant and equipment.    
SMEs are firms with less-than 500 in the US.    
SMEs are firms with less-than 250 employees in Europe.    
All of the above.

Question No.  35    Marks - 10
Which of the following are true, except:     
Options    
SMEs often lack financial resources.    
SMEs often lack scale and scope.    
SMEs often lack entrepreneurship, innovation and adaptation.    
SMEs often lack manpower.    

Question No.  36    Marks - 10
Which of the following statement is true about the degree of involvement in international trade and FDI of small firms? 
Options    
In the European Union, more than seventy-five percent of all SMEs export or have exported at some point during the last 3 years.    
A relatively small number of SMEs sell products and services outside their domestic market, compared to the total number of active SMEs.    
SMEs are more prominent than large multinational firms as sources of FDI.    
Most SMEs in the United States and India are actively engaged in international trade and FDI    

Question No.  37    Marks - 10
Which of the following are key areas of dispute about “born global” firms?    
Options    
Are born-global firms really global in terms of their cross-border trade and/or FDI, or are they regional?    
How quickly does a small firm need to develop a global presence to be called a born global firm?    
Is a firm born global (or global at all) if it simply exports and imports products and services and has no FDI?    
All of the above

Question No.  38    Marks - 10
Why is it more likely that a small firm is “born regional”?    
Options    
Given their limited resources small firms can be expected to reduce risk by selecting nearby countries in their home region as the final destination of their internationalization strategy from inception    
Small and young ventures may be able to acquire information about local customer’s preference and/or local business practices more easily in nearby countries, and to adapt their products and services more easily to meet the specific needs of local customers in the same home region.    
The resources and capabilities internalized within firm boundaries can be exploited more easily in similar institutional contexts within regions than across different regions    
All of the above

Question No.  39    Marks - 10
What is dynamic capability?    
Options    
The firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments.    
The firm’s ability to maximize profits through international business activities    
The firm’s ability to grow quickly on the basis of temporary opportunities    
The firm’s ability to focus on wealth-creating activities

Question No.  40    Marks - 10
How do SME managers know which markets to enter?    
 
Options    
Through the use of social networking sites, e.g. LinkedIn and Facebook    
By learning the language of the potential target country markets    
By clicking Google maps    
None of the above