Cape Entrepreneurship Unit 1 paper 2

 

INSTRUCTION: Read EACH mini case and answer the questions that follow.

MODULE 1: ENTREPRENEURIAL MINDSET

Case 1: The Aluminium Alumni

Kemiah, Davion, Vashti and Peter met at their school reunion after ten years and excitedly discussed their lives since graduation. Kemiah was a natural risk-taker who owned a minimart, had minority shares in an agro-processing company and majority shares in a vegan restaurant. Davion gushed with pride as he explained how, despite his loan applications being denied by four banks and two credit unions, he had successfully opened his own barbershop one month earlier Vashti boasted about all the money she would make with the handicraft shop she was planning to open, since both of her parents already owned successful businesses. Peter was the supervisor at a leading hardware store but was planning to open his own hardware store in the following year. He wanted to complete 11 years at his job. so that he could receive his gratuity payment from the company and use it as start-up capital. After much laughter and

reminiscing about their school days, they formed a WhatsApp group and vowed to stay abreast of each other's entrepreneurial adventures.

1(a).Name the type of entrepreneur that BEST describes EACH of the classmates in the case 

a.Kemiah_____________________________________________________________

b.Davion_____________________________________________________________

c.Vashti_____________________________________________________________

d.Peter_____________________________________________________________

(4 marks]

(b). Outline, using evidence from the case, ONE entrepreneurial characteristic displayed

by Davion.

______________________________________________________________________________________________________________________________________________________________________________________

(2marks)

(b).Outline, using evidence from the case, ONE entrepreneurial characteristic displayed

by Peter

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(2marks)

(i) Describe ONE myth of entrepreneurship that Kemiah should guard against

(3 marks]

______________________________________________________________________________________________________________________________________________________________________________________

Discuss ONE myth of entrepreneurship that might prevent Vashti from becoming

a successful entrepreneur.

______________________________________________________________________________________________________________________________________________________________________________________

(4 marks)

Case 2: A Double Delight

Gail and Glenda Morain are identical twins who started separate businesses on the same day. nine years ago, with a female-only hiring policy. However, that was where their similarity ended.

Gail was a celebrated chef with a laid-back personality. Although she made a steady profit at her local business, she was more interested in attending global chef competitions to show off her culinary skills. Gail had a standard weekly menu at her restaurant but the food quality varied due to high staff turnover and her frequent absence from the business. Additionally. Gail kept her business bills and receipts in a plastic container, in no particular order, which was a constant source of annoyance for the accountant she hired to prepare her annual taxes. Glenda, a famous winemaker who specialized in Caribbean fruit wines, was more of a go-getter. She had five award-winning wines and was continuously creating new and exciting fusions. After nine years in business, Glenda had established one branch of her company

in each continent Africa and Antarctica. Europe, Asia, America, and Australia had exceeded high profit expectations in all of her branches.

2.a. Identify FOUR mistakes/pitfalls of entrepreneurship made by Gail.

___________________________________________________________________________________________
______________________________________________________________________________________________________________________________________________________________________________________

(b) Compare Gail. The small business manager, with Glenda, the entrepreneur

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(4 marks]

c) (i) Explain ONE positive impact of Glenda's female-only hiring policy on women

around the globe.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(3 marks)

Discuss ONE positive impact that Glenda, as a female entrepreneur, could have

on entrepreneurship development in the Caribbean.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(4 marks)

MODULE 2: THE ENTREPRENEURIAL PROCESS

Case 3: Nickesha's Cleaning Conflicts

Nickesha Gooden recently completed her Bachelor of Science degree in Business Administration. She obtained a distinction in the module Introduction to Entrepreneurship and planned to use the knowledge gained to open her dream business a residential cleaning service in her community Her choice of business was largely triggered by the realities of the current COVID-19 crisis and the accompany emphasis on personal and environmental hygiene However, she had nagging concerns that implementing and operating her business could prove more challenging than her entrepreneurial course had suggested.

To allay her fears on the likely realities she would encounter when conducting her business, Nickesha brainstormed with her family and friends and conducted focus group discussions with industry experts. She was advised that she should follow the steps in the entrepreneurial process that involved identifying an opportunity and developing the concept.

Also, Nickesha was advised that when the business was up and running. She should focus on the necessary activities involved in implementing and managing her venture successfully. These activities include implementing the concept and monitoring performance. Armed with confidence and buoyed by the advice she had received, Nickesha felt more convinced that her business would prove a great success.

3(a)List FOUR steps in the entrepreneurial process that are NOT mentioned in the case

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(4 marks]

(b) Outline TWO activities, NOT mentioned in the case, that the entrepreneur must be

aware of implementing and managing a venture.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_

(4 marks)

(c)(i)Describe the Delphi method of generating business ideas.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

[3 marks]

Discuss the 'reverse brainstorming' method of generating business ideas

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_

Case 4: Seeking the Right Business Idea

As students of The University of the High Indies, Jaime Maxwell and Romaine Wilson always had an interest in grooming and self-care, including beard health. On graduation, they decided to open a unisex hair salon in the Papine area. They decided on this business idea as they noticed the changing demographics in the area, with increased student enrolment at the tertiary level institutions. Additionally, at a societal level, there was greater focus on personal hygiene/grooming and increased sensitivity with respect to health and wellness.

Despite their confidence in the prospects for their selected business, they knew they still had to properly evaluate the business. To do this, they had to conduct extensive market research, given the competitive nature of the market, and also implement effective management strategies. To assist in confirming the rationale of the selected business idea, Jamie and Romaine employed a business consultant who gave the thumbs up to their business idea. However, he advised that in addition to the evaluation of their business idea, they should agree on a strategy to harvest their businesS as a critical part of their strategic adherence to steps in the entrepreneurial process. Jamie and Romaine reflected on the latter issue of harvesting their venture and agreed that their choice from the many options would be liquidating the venture.

4.(a)Identify FOUR Sources of entrepreneurial opportunity besides changing demographics

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(3 marks]

(b) i.  Identify FOUR sources of entrepreneurial opportunity besides `changing demographics'

___________________________________________________________________________________________
______________________________________________________________________________________________________________________________________________________________________________________

ii) Outline TWO factors an entrepreneur could use to determine a good business opportunity

___________________________________________________________________________________________
______________________________________________________________________________________________________________________________________________________________________________________

[4 marks]

c.(i)Explain the significance of Jaime and Romaine using liquidation as a harvesting

Strategy.

________________________________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________________________________

[3 marks}

(ii) Discuss the advantage of Jaime and Romaine liquidating the venture as a harvesting strategy 

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(4 marks)

MODULE 3: CREATIVITY AND INNOVATION

5: Bee Aware

Paula is a young entrepreneur who operates a beekeeping business in Barbados. She, like all the other -keeping farmers, started by using Langstroth hives as these were easily available. She became aware of the Perone hive, which gives superior results in terms of honey production and manageability, but there are no suppliers of the Perone hive in Barbados. After trying unsuccessfully to get one made locally, Paula decided to build one. She got designs for the hive from the internet and was able to construct a hive with features that improved upon the standard Perone hive. This spurred her interest in further innovation. Paula learned that the core innovation concepts were incremental, modular, discontinuous and architectural. one came up with an idea to revolutionize the industry. Instead of hives, she conceptualized a system of

mini factories. Each hive would be fitted with a computer chip which would alert the owners when  the honeycombs were full of honey. The owner could push a button that would cause the full combs to be automatically ejected into a honey extractor. Since Paula lacked the expertise, she decided to use an open innovation approach. She would cooperate online with other beekeepers, researchers and persons with other skill sets to create the new system. She is aware that doing so will increase her access to talent and infrastructure, and would reduce costs and development times.

5(a) List the FOUR core innovation concepts mentioned in the case.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

b.(i) Explain the meaning of the term 'disruptive innovation.'

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(4 marks]

(ii)Identify ONE example of disruptive innovation from the case.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_

(1 mark)

c (i)Describe the concept of 'open innovation.'

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(1 mark]

(ii) Discuss ONE advantage of open innovation, using evidence from the case.

___________________________________________________________________________________________
______________________________________________________________________________________________________________________________________________________________________________________

4 marks

Case 6: Beauty is in the Eye of the Beholder

Lorraine is a beautiful young lady with sensitive skin. She has been unable to use most commercial beauty products because her skin reacts unfavorably to them. Lorraine realizes that there are thousands of other ladies like her in Barbados, and indeed the Caribbean. This sets her thinking that a new approach is needed that addresses the issues of black ladies who have sensitive skin. Through her creative thinking. new ideas emerged on how to address both black and sensitive skin simultaneously. She launches a firm specializing in the creation and production of soaps and beauty products with natural ingredients that cater to the various skin tones of black ladies and that take into account the tropical conditions of the region.

To ensure success, Lorraine first generates numerous ideas that can provide solutions to the issue being studied. She then evaluates these ideas individually to choose the best one. Resource persons are then sought to evaluate the ideas from a technical standpoint. Due to the specialty nature of the products, all are adequately branded. Although it is expensive, applications for patents are made for those that are innovative enough to warrant this type of protection. Finally, all her staff are bonded, and the appropriate measures put in place to secure trade secrets.

6.(a)(i)Define the term 'creativity

___________________________________________________________________________________________
______________________________________________________________________________________________________________________________________________________________________________________

(ii)Identify TWO barriers to creativity

(2 marks)

(b) (i) identify ONE step in the innovation process that is mentioned in the case.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

[1 mark)

(ii) Explain the 'commercial evaluation' stage of the innovation process.

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

|3 marks]

c) i)Describe the 'patent' method that Lorraine intends to use to protect her soaps and

beauty products.

________________________________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________________________________

(3 marks)

(ii)Discuss the trademark method that Lorraine intends to use to protect her soaps and beauty products.

4 marks

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Total 15 marks