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Small Business Management(Entr 543) Question Paper
Small Business Management(Entr 543)
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2011
TIME : 3 HOURS
INSTRUCTIONS Answer Question ONE and any other THREE Questions.
CASE STUDY
Kimberley`s Restaurant:
Kimberly versus the kitchen manager Kimberley ahd made progress in resolving the management problems in her restaurant. Raymond Bogaerts, the chef, had not appeared for work one day, and later telephoned to say he would not be back. Conflicts in small firms are often resolved by one person leaving the organization.
After a moment of panic, Kimberly had breathed a sigh of relief. ‘At least I can make a fresh start now that he is gone, she had thought. After a period working in the kitchen herself she had decided that the only way to develop the working in the kitchen herself, she had decided that the only way to develop the business was to recruit another person to manage the kitchen. Kimberly followed the personnel practices of her previous large employer, and carefully drew up a job description and a person specification before advertising the new job. The good response enabled her to select someone she felt was the ideal candidate who was experienced and motivated by the thought of working in a small firm. Laura, the new head chef, was given wider responsibilities than just preparing food so Kimberly was not too surprised when she asked to see her one morning. But the meeting was not rountine; Laura had problems.
I`m sorry to burst in on you like this, but I don`t think I can manager on my own any longer’, she blurted out.
‘On your own?’ queried Kimberley. ‘I thought we had agreed to work as a team. What`s the problem?’
‘In a word, communications, or lack of them’, said Laura. ‘I need you to tell me more about what is going on. I know we agreed that team work is important, but I feel as though I’m working alone most of the time until something happens I don`t know about, that is, like the meat delivery changing from Friday to Thursday.’
‘Yes, we`ve been over that, and I have apologized’, interrupted Kimberley, checking her watch as she was due to visit a customer that morning. ‘Look, I’m not sure what you`re getting at exactly, but if this business is to develop the way I thought we both agreed we wanted, then I will have to leave you to manage your area. I don`t have time to do my job now that we`ve taken on these commercial catering contracts, let alone help you with yours. You know what to do, and you have staff of your own; can`t we just get on and do it?’
‘I know you`re busy’, said Laura, ‘but I need your help now and again, and I need you to tell me what you`re doing, as it does affect my work you know, I can`t just get on and do it, Unless I get feedback from you. Besides, its nice to talk to someone other than the wash-up now and again.’
Kimberly smiled. ‘Ok, I get the message but not toady. I have appointments to keep. I’ll make a point of looking in tomorrow.’
Question 1
Activities What is your assessment of Kimberly`s management.
a) Has she made a mistake in her choice of kitchen manager, who does not seem very independent? (10marks)
b) Is she right to insist that, now they have agreed their responsibilities, they should get on and do it. (10marks)
c) Is there anything missing in her leadership of the business? (5marks)
Question 2
Discuss how management of a small business is different from that of large organizations. (20marks)
Question 3
Small firms face particular marketing issues because of inherent characteristics. Explain what these specific problems might be. (20marks)
Question 4
In what ways can entrepreneurs in particular benefit from the internet in marketing their business? What benefits to other advances in telecommunications give to the small business. (20marks)
Question 5
It is often said that “Cash flow is King” for small businesses. What is meant by this expression. List the main types of cash flow problem that small businesses encounter. How can these be avoided? (20marks)
Question 6
“Closure rates among small firms are extremely high”. What do you think are the principal internal causes of small business failure? Classify some specific reasons into more general strategic categories. (20marks)
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