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Posted By: Manjit Singh Member Level: Diamond Posted Date: 15 Feb 2008
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2005 Indira Gandhi National Open University (IGNOU) M.B.A Management of New And Small Enterprises Question paper
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MANAGEMENT PROGRAMME
Term-End Examination
June, 2005
MS-93: MANAGEMENT OF NEW AND SMALL ENTERPRISES
Time : 3 hours
Maximum Marks : 100
(Weightage 70%)
Note : This paper consists of two Sections A and B. Attempt any three questions from Section A. Section B is compulsory. All questions carry equal marks.
SECTION A
1. What do you understand by the term entrepreneurial competence ? How do entrepreneurial competencies affect enhepreneurial success ? Explain the process of development of entrepreneurial competencies.
2. As a small entrepreneur, you are planning to set up a travel agency dealing in both air and rail travel. What are the variables you would need to study in order to analyse the competitive situation ? Explain. Also describe what are the trade practices, if any, that you may need to consider while assessing your market.
3. An entrepreneur planning to set up a textile printing unit has approached you to seek advice on his business plan document. He would like to have an assessment of his working capital requirement. Develop a detailed checklist of the items he must include to arrive at a realistic computation of his working capital.
4. You are a manufacturer of tooth- brushes, operating in the SSI sector. What are the bases on which you would like to segment your market and why ? How would your response differ if you were also manufacturing toothpastes ?
5. With the help of suitable examples discuss the coping strategies used by successful family enterprises to leverage the competitive advantages of family enterprises and avoid the associated problems.
SECTION B
6. Read the case study given below and answer the questions given at the end of the case.
Managing a Family Business
Nikhil is the youngest of the three sons of C.B. Gupta. The eldest son, Kailash, is an architect and the second son, Jagdish, is an electrical engineer. Nikhil himself is a commerce graduate. Kailash is married to Uma, who came from a business family. Nlkhil lost his mother when he was a young boy. They all lived in a large flat in Bombay until 1989, when Kailash and Uma moved into another flat on the same floor.
C.B. Gupta (59) started his career as a businessman 35 years ago. He later on left his agency business and started a small textile processing company in Bombay. Though Kailash was inducted into the business soon after his studies, he never showed any interest in modernising and expanding it. Jagdish was responsible for marketing operations and Kailash was responsible for purchase and production. The father took care of finance and overall management of the unit. He thought that Nikhil could be inducted into the business after his studies and be given charge of finance.
After completing his studies, three years ago Nikhil started helping the family business. He was very ambitious and wanted to improve and expand the activities. He realised that purchase remained a weak area in the organisation. He felt that Jagdish was more receptive to his ideas than Kailash.
It was then that Nikhil got the idea of starting an advanced processing and readymade garment manufacturing unit. It had to be located about 100 km away from Bombay. Nikhil took upon himself the responsibility of implementation. The unit went onstream within six months.
The turnover of the old unit was Rs. 4.5 million and had remained about the same in the last three years. The new unit with assets worth Rs. 10 million, had already registered a turnover of Rs. 10 million in the first year and Rs. 20 million in the second year. Nikhil wanted to hit the Rs. 100 million target in another two years.
Purchasing and marketing were to be centralised as that would give substantial economies. Although Nikhil was in-charge of the unit, the other members of the family used to take an active part in its running.
Soon Nikhil realised that he and Kailash disagreed on several points. It ranged from workers uniforms to the quality of fabrics.
Questions :
(a) What are the potential problems that you think this enterprise is likely to face ?
(b) Wbat suggestions do you have for Nikhil to successfully cope with the challenges being faced ?
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