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Small Business Management And Consultancy(Entr 543) Question Paper
Small Business Management And Consultancy(Entr 543)
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2012
TIME: 3 HOURS
INSTRUCTIONS
Answer question ONE and any other THREE questions.
CASE STUDY: ENTREPRENEURIAL NEW VENTURE
Karan Bilimoria, founder of Cobra Beer, is certainly not a brewer by background. On the other hand he has a broad and varied education, is qualified accountant, has a degree in law and is extremely confident in himself and his vision for Cobra.
Karan grew up in India. His grandfather had been a general in Ghurkhas and this meant that Karan’s family was reasonably well off. He was well educated in India and came to the UK in 1982 to complete his accountancy training with one of the leading international films, Ernst & Young. Even at this, he was thinking about the possibility of starting a business based on his knowledge of Indian and UK markets and cultures. Not content with an accountancy qualification, he then won a place at Cambridge University to study law. On graduation, he began applying fir jobs in banking but still hankered after starting his own business.
His first venture, formed in partnership with a family friend, Arjun Reddy, was selling polo sticks imported from India. Arjuns’s uncle then offered them the opportunity to act as distributors for a brand of Indian seafood. It was during this period that Karan became aware of the opportunity to create a beer that complemented Indian food.
At the beginning, Karan and Arjun did just about everything. They defined the brand, they found a master Indian brewer to make the beer, the sourced distinctive bottles, they negotiated with the Indian authorities to allow they to export, and they set up deals with UK distributors. And when these distributors subsequently pulled out of the deal, they loaded cases of Cobra into Citroen 2CV, drove from one Indian restaurant to the next and sold the beer themselves! Neither Karan nor Arjun had much prior experience of any of these activities, but they had broad business knowledge common sense, self-confidence, good connections with their market and total belief in Cobra.
Cobra has grown consistently, every year since. The business now has sales of over 30 million and offices in four countries. In 2002, Karan won the prestigious Asian of the Year Award in the UK.
What techniques were used for generating business ideas?
(3 Marks)
Identify any five entrepreneurial characteristics that may have contributed to the success of the business.
(5 Marks)
Explain any TWO entrepreneurial theories that motivated Karan and Arjun to start the new ventures.
(5 Marks)
Was prior experience of great importance in the running of the business?
(5 Marks)
What strategies should Karan use or maintain so as to retain the prestigious Asian of the Year Award?
(5 Marks)
Propose to Karan and Arjun strategies to use in order to grow the business further.
(2 Marks)
Question Two
Discuss the importance of business networking for entrepreneurs.
(10 Marks)
Why is succession management planning important for small businesses in Kenya.
(15 Marks)
Question Three
Discuss the advantages and disadvantages of operating a small business.
(10 Marks)
Propose strategies for supporting small business growth in Kenya.
(15 Marks)
Question Four
Discuss five types of risks associated with small businesses and propose strategies to mitigate these risks. (25 Marks)
Question Five
Discuss the consulting process followed by a consultant while offering services to small businesses. (25 Marks)
Question Six
Explain any three credit and finance policies formulated to promote small enterprise development and cite the implementation status of each.
(15 Marks)
Assuming you are a consultant, discuss ways to improve your client relationships.
(10 Marks)
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