Question: what are the key environmental factors which differentiate international entrepreneurship from domestic entrepreneurship.

3marks Factors Which Differentiate International Entrepreneurship From Domestic Entrepreneurship
• • • • • • • Economics Balance of ayments !ype of "ystem Barter# third$party arran%ements olitical$&e%al Environment 'ultural Environment !echnolo%ical Environment "trate%ic Issues

Question: e(plain types of e(chan%e systems ) e(plain how *arter system emer%ed in international trade. +marks there are two type of e(chan%e system Barter system !hird party arran%ement Barter system , method of payments usin% non$money items !hird party arran%ement ayin% for %oods indirectly throu%h another source *arter system emer%ed in international trade !he former -"". received technolo%y and syrup from epsi and provided it with "oviet vodka and ri%hts to distri*ute it in the -". !his is an e(ample of: *arter system. epsi is used *arter type arran%ement that satisfied *oth the sociali/ed system of the former -"". and the -." capitalist system. In return of receivin% technolo%y and syrup form epsi# the former -"". provided with company with soviet vodka and the ri%ht to distri*ute in the united state what is gorden method how is it used for creative problem Solving? 3 marks
0ordon method

3(marks) !he e(clusive ri%ht to make and dispose of copies of a literary# musical# or artistic work. !he entrepreneur should carefully evaluate his or her needs *efore hirin% a lawyer. . What is copyright? What are its limitations. !he le%al e(pertise re5uired will vary *ased on factors such as type of product and or%ani/ational status. . "everal chan%es in the social and political climate have chan%ed this traditional# security$ conscious culture. :. +. . What are condition of best partner? 3(marks) . Copyright does not protect ideas. Without the permission of owner you cannot have a right to copy. !oday more individuals are emer%in% in *oth academic circles and lar%e companies who are look for a challen%e. Briefly discuss the status of entrepreneurship in Europe6 +7marks8 Europe 9. %ood partner help the entrepreneur achieve his or her %oal such as market access# cost sharin%# or more competency o*tainment. . only their expression or fixation.ll *usiness is re%ulated *y law. Europe has only recently *ecome interested in entrepreneurship.isk takin% has *een discoura%ed and *usiness failure considered a social dis%race. 3. .. &. Limitations All other uses require permission and copyright owners can license or permanently transfer or assign their exclusive rights to others. E(emplifyin% this new thinkin% are academics# especially scientists and en%ineers.t different sta%es the entrepreneur will need le%al advice. In this method the entrepreneur starts *y mentionin% a %eneral concept associated with the pro*lem.W4E. !he %roup responds with e(pressin% a num*er of ideas. .0ordon method is a method of developin% new ideas when the individuals are unaware of the pro*lem. !hey also share the entrepreneur1s vision and are unlikely try to opportunistically e(ploit the partnership for their own *enefit. why a lawer is needed to create a new venture e plain reasons ? 2EED F3. !he entrepreneur needs to *e aware of re%ulations that affect the new venture.

:. created the Business E(pansion "cheme in 9?@3 to provide capital to new *usiness ventures. . !he widespread use of personal computers. . Entrepreneurial e(perience is one of the *est predictors of success. Fon% >on% is a maGor entrepreneurial center. ?. .sian countries has *een si%nificant *ecause of the culture and the political and economic systems. 3.esearch in Ireland and "weden has e(plored the nature of European entrepreneurship.%e Entrepreneurial a%e is the a%e of the entrepreneur reflected in the e(perience.>. Entrepreneurial success in some . 0enerally# male entrepreneurs start their first venture in their early 3Bs# while women tend to do so in their middle 3Bs. !he Far East 9. Question 2o: .nother hurdle is the French contempt for *oth failure and success. +. Aenture capital is mana%ed *y *ankers# who are risk averse. 9B. In chronolo%ical a%e# most entrepreneurs start their careers *etween a%es :: and ++.<. . Discuss the Ca%e1 factor as an important characteristic of entrepreneurs. !he -. 99. Eapan1s social structure discoura%es entrepreneurship.. !he adoption of intranets in companies. In "in%apore# entrepreneurial success is %reatly esteemed. 3. the Factors that Facilitate the 0rowth of E$'ommerce6 73 marks 8 Factors that facilitate the %rowth of e$ commerce are: 9. !he Dalaysian %overnment has esta*lished the Dalaysian Industrial Development authority to promote efforts to eradicate poverty# *ut has not accomplished much. :8 What . :. In France several economic and social factors cause difficulties.: 7 Darks: + 8 Ela*orate the situation of entrepreneurship in the Far East. 2ew %overnment policies are makin% it easier to raise money for startin% up *usinesses. !he acceptance of the Internet as a *usiness communications platform. =. @. Earlier starts in an entrepreneurial career seem to *e *etter than later ones. .

the *enefits to an Entrepreneur of Daintainin% 0ood relationship with &awyer6 Discuss why is it necessary for an entrepreneur to have good relationship with a lawyer. 7+ Darks8 ro*lem inventory analysis uses individuals in a manner that is like to focus %roups to %enerate new product ideas. +7marks8 .8 What . Fowever instead of %eneratin% new ideas themselves# consumers are provided with a list of pro*lems in a %eneral product cate%ory. The entrepreneur normally does not have the expertise and much know how to handle possible risk associated with many different laws and regulations. . domestic *usiness strate%y is desi%ned under a sin%le economic system. an entrepreneur needs help of a competent lawyer to handle such situations nicely. 'reatin% a *usiness strate%y for multiple countries means dealin% with different levels of economic development and different distri*ution systems. !his method is often effective since it is easier to relate known products to su%%ested pro*lems and arrive at a new product idea then to %enerate an entirely new idea *y itself.38 .8 ro*lem Inventory .s an Entrepreneur if u start new Business at which factors u would concentrate in the conte(t of Economics. So . 73 marks 8 Economics . Which factors should *e studied *y entrepreneur to conduct environmental analysis while preparin% a *usiness plan6 E(plain the factors. .nalysis !echni5ues. The lawyer with whom you are going to work should be some one you can relate easily and frankly with trust. A good relationship with a competent lawyer may help entrepreneur to eliminate risk associated with new starting business and it will give confidence to the entrepreneur. !hey are then asked to identify and discuss products in this cate%ory that have the particular pro*lem.

Brief description of the *usiness concept :. . Fowever# the entrepreneur should consider potential technolo%ical developments determined from resources committed *y maGor industries or the -. Question No: 35 ( Marks: 3 ) Describe any three issues that should be addressed in executive summary. "tatement of you this opportunity will *e pursued.". !he e(pert mana%ement handles all of sellin%# marketin% and delivery# in addition to any pro*lem technical pro*lems involved in the e(port process. !he entrepreneur should *e prepared for any future le%islation that may affect that product or services# channel of distri*ution# price or promotion strate%y. + . %overnment. E(amples of environmental factors are: Economy !he entrepreneur should consider trends in the 02 # unemployment *y %eo%raphic area# disposa*le income# and so on. !ypically# they represent a %roup of non$competin% manufactures from the same country who have no interest in *ecomin% directly involved in e(portin%.!he entrepreneur should first conduct an environmental analysis to identify trends and chan%es occurrin% on a national and international level that may impact the new venture.n evaluation of cultural chan%es may consider shift in the population *y demo%raphics. !echnolo%y . For a fee# these firms will provide representation in forei%n market. 'ulture . Discuss the role of e(port mana%ement firm as an indirect source of e(portin%. 9. + E(port mana%ement firms# another indirect method# are located in many commercial centers.ny data that support the opportunity for the venture. 3. Briefly discuss the product plannin% and development sta%e. &e%al concerns !here are many le%al issues for startin% a new venture.dvance in technolo%y is difficult to predict.

In the systematic market evaluation checklist method# each new product idea is e(pressed in terms of its chief values# merits# and *enefits. Idea "ta%e romisin% new product ideas should *e identified and impractical ones eliminated in the idea sta%e allowin% ma(imum use of company1s resources. Idea sta%e# concept sta%e# product development sta%e# test marketin% sta%e and commerciali/in%I it result in the product life cycle. What are the strate%ic issues that are more important for him and he has to consider them carefully. !he panel can *e %iven samples of the product and competitors1 products to determine consumer preference. :8 :8 If an entrepreneur is %oin% to start International Business.lthou%h the results of product development sta%e provide the *asis of the final marketin% plan# the market test can *e done to increase the certainty of successful commerciali/ation. 'ommerciali/ation. roduct Development "ta%e In this sta%e# consumer reaction is determined# often throu%h a consumer panel. 1) What activities are required at Test Marketing Stage of Product Planning & Development Process? ! M) !est Darketin% "ta%e . !est Darketin% "ta%e !he last step in the evaluation process# the test marketin% sta%e# provides actual sales results which indicate the acceptance level of consumers.!his refinin% process$ the product plannin% and development process H is divided in to five maGor sta%es.lthou%h the results of product development sta%e provide the *asis of the final marketin% plan# the market test can *e done to increase the certainty of successful commerciali/ation. ositive test results indicate the de%ree of pro*a*ility of a successful product launch and company formation. 'oncept "ta%e In the concept sta%e the refined idea is tested to determine consumer acceptance without manufacturin% it. ositive test results indicate the de%ree of pro*a*ility of a successful product launch and company formation. !he last step in the evaluation process# the test marketin% sta%e# provides actual sales results which indicate the acceptance level of consumers. . !he mode of enterin% or en%a%in% in international *usiness can divided into three cate%ories: e(portin%# non e5uity arran%ements and direct forei%n investment E(portin% "ellin% %oods to another country *y takin% care of the transaction 2on e5uity arran%ements .

'onsumer can help in creatin% new idea for new product. Discuss how the consumer can *e helpful. Dinority interests It refers to having less than 50 percent ownership position Eoint ventures !wo firms %et to%ether and form a third company in which they share the e5uity.e%ional Difference in terms of Economic development. 'are should *e taken to ensure that the idea represents a lar%e enou%h market. :8 Fow the *usiness plan is presented to potential investor6 73 Darks8 !he *usiness plan should *e comprehensive enou%h to %ive a potential investor a complete understandin% of the venture Introductory a%e !he title pa%e provides a *rief summary of the *usiness plan1s contents E(ecutive "ummary !his is prepared after the total plan is written. !his can *e an informal or formal survey of consumers e(pressin% their opinions. 4our need to adGust your Business plan accordin% to .nalysis environmental factors include Economy# 'ulture# !echnolo%y# &e%al concerns industry factors include: Industry demand 'ompetition !he last part of this section should focus on the specific market. 73 Darks8 'onsumers otential entrepreneurs should pay close attention to the final focal point of the idea for a new product or service the potential consumer. 4ou are re5uired to hi%hli%ht the factors which can impact your decision. It should *e three to four pa%es in len%th and should hi%hli%ht the key points in the *usiness plan Environmental and Industry . 38 Bein% a entrepreneur you are %oin% to start International Business.Doin% international *usiness throu%h an arran%ement that does not involve any investment Direct Forei%n Investment !he wholly owned forei%n su*sidiary has *een the preferred mode of ownership for direct investment. Description of the Aenture .

!he patent %ives the owners a ne%ative ri%ht# preventin% anyone from makin%# usin%# or sellin% the invention# Question 2o: 3< 7 Darks: + 8 . Aoluntary e(port restrictions may limit the a*ility to sell products in a country from production facilities outside the country. !heir a*ility to meet de*t and interest payments 7 cash flow. !rade *arriers increase the costs of e(portin% proGects to a country. Entrepreneur1s "trate%ies and !rade Barriers !rade *arriers pose pro*lems for entrepreneurs who want to *ecome involved in international *usiness. 7+ marks8 &enders are primarily interested in the a*ility of the new venture to pay *ack the de*t and focus on the four '1s of credit: 9.!E2!" . 38 a. e(plain *usiness method patent ) %ive e(ample. What should *e considered in strate%ic plannin%6 7+ Darks8 . !he entrepreneur1s credit history or character.8 Discuss how can lenders evaluate the *usiness plan. What is a *usiness plan and what purpose does it serve6 . . Entrepreneurs can also hire or offer e5uity to another person to provide e(pertise in preparin% the *usiness plan. In developin% the *usiness plan the entrepreneur can determine how much money will *e needed from new and e(istin% sources. 3marks . !his should *e%in with the mission statement or company mission# which descri*es the nature of the *usiness and what the entrepreneur hopes to accomplish. 38 While enterin% into the international market the companies usually have strate%ic plannin% process. !he collateral or tan%i*le assets *ein% secured. Equity contribution or the amount of personal e5uity that has *een invested *y the entrepreneur. !he Internet also provides outlines for *usiness plannin%. . patent is a contract *etween the %overnment and an inventor.t the end# the %overnment pu*lishes the invention# and it *ecomes part of the pu*lic domain. !he *usiness plan is like a road map for the *usiness1 development. "usiness plan is a written document prepared *y the entrepreneur that descri*es all the relevant e(ternal and internal elements involved in startin% a new venture. . :.8 3.*.!he description of the venture should *e detailed in this section. company want do international *usiness discuss the effects of trade *arriers and effects on entrepreneur..n entrepreneur may have to locate assem*ly or facilities in a country to conform to the local content re%ulations. !he %overnment %rants the inventor e(clusivity for a specified amount of time.c. It addresses *oth short$ and lon%$term decision makin%.

! I" I2!E&&E'!-.3 E. Question 2o: 3+ 7Darks: 38 Briefly discuss licensin% and its *enefits# $icensing involves a manufacturer %ivin% a forei%n manufacturer the ri%ht to use a patent# trademark# or technolo%y in return for a royalty. . Q: WF. . fundin% *usiness plan will save you a lot of time and money.lthou%h most of the ideas %enerated from the %roup have no *asis for further development# often a %ood idea emer%es 38 Why *usiness plan is si%nificant. articipants keep the record of their use of product and comment on its virtues and deficiencies. !he *rainstormin% method for %eneratin% new ideas is *ased on the fact that people can *e stimulated to %reater creativity *y meetin% with others an d participatin% with or%ani/ed %roup e(periences. It %ives you more control over what future success will come.!46 Intellectual property which includes patents# trademarks# copyri%hts# and trade secrets represent important assets of entrepreneur and should *e understood even *efore en%a%in% the services of an attorney. !he panel can *e %iven samples of the product and competitors1 products to determine consumer preference. !his arran%ement is most appropriate when the entrepreneur has no prospect of enterin% the market throu%h e(portin% or direct investment. %roup method of o*tainin% new ideas and solutions is called *rainstormin%. Without careful analysis# licensin% arran%ements have several pitfalls What activities are done at product development sta%e pf the product development process6 roduct Development "ta%e In this sta%e# consumer reaction is determined# often throu%h a consumer panel. 7+ Darks8 Business plan is si%nificant *ecause# In runnin% or startin% a *usiness# the learnin% curve is short *efore you run out of resources and are forced to close. !he *eautiful thin% a*out a *usiness plan is that it actually creates the future of your *usiness# as you want it to *e.While usin% *rain stormin% for new idea creation what measures should *e taken to ac5uire a %ood idea6 Brainstormin% . Dore importantly# it %ives you a %reat process to %row the future *usiness you desire# whether that is a start up# ac5uisition# e(pansion or *uild out. !he process is usually low risk and an easy way to %enerate incremental income.& . !he panel of consumers is also %iven a sample of product and one or more . Because entrepreneurs often don1t understand intellectual property# they can i%nore steps that should *e taken to protect these assets. !herefore# a *usiness plan helps you set up a sound framework# model and system ahead of time# as well as# treat potential pro*lems and threats# so that you can capa*ly run a *usiness.

3ne test product may already *e on the market# whereas the other test product is new. +marks # Question 2o: 3< 7 Darks: + 8 uestion !o" #$ % &ar's" 5 ( In which classification the research on ‘business ethics’ can be broken down? . !he venture capitalist will play an important role in mana%ement of the *usiness and wants the entrepreneurs to *e plia*le and willin% to accept this involvement. If the entrepreneur does not consider the needs of these sources# the plan may *e an internali/ed document without consideration of the feasi*ility of meetin% market %oals. 98 Benefit of internationally artnership advanta%es of re%isterin% a trademark. person who intended to do *usiness internationally# what pro*lems he mi%ht face6 3 :8 "trate%ic issues in international entrepreneurship 38 What will your strate%ic plannin% while enter international market E(istin% product is useful for idea product discuss738 :8 how prepare *usiness plan for attract investors738 Investors provide lar%e sums of capital for ownership 7e5uity8 and e(pect to cash out within + to = years. company lunch defective product and customer claim a*out it *ut company not concentrate on it.c.8 a. !hese investors will also demand hi%h rates of return and will thus focus on the market and financial proGections.competitive product simultaneously.*. Dost e(ternal advisors and potential investors are *ound *y a professional code of ethics re%ardin% disclosure. 2ow customer thinkin% sues on company as entrepreneur how you tell customer a*out to sue on company. . !hey will often place more emphasis on the entrepreneur1s character than lenders. 98 .

"ome of the points that should *e strictly followed for developin% an effective we*site desi%n are mentioned *elow: JImportance of Focus$ first the tar%et audience should *e determined and then the desi%n should *e done accordin% to their tastes and re5uirements. "o# while creatin% a we*site certain thin%s have to *e taken care of.perienced some disadvantage' %ith fe% having degrees in engineering' science' or math# The a"ilit( to deal %ith people and communicate clearl( in %ritten and spoken %ork is also important# ersonal Aalues Studies have failed to indicate that entrepreneurs can "e differentiated on personal valued from managers' unsuccessful entrepreneurs' or the general pu"lic# $eadership' support' aggression' "enevolence' conformit(' creativit(' veracit(' and resource seeking ma( also "e important# * successful entrepreneur is frequentl( characteri-ed as a %inner. !his is *ecauseI *i% ima%es e(tend the loadin% time and thus reduce a site1s possi*ility of %ettin% pu*lic attention.esearch on *usiness ethics can *e *roken down into four *road classifications: 9.educed &oadin% !ime$ always avoid usin% lar%e ima%es in a we*site. eda%o%ically$oriented in5uiry :. JImportance of Balance$ F!D& can *e used for displayin% all the links to the other we* pa%es. well desi%ned we*site can *rin% positive effect to a company1s ima%e. Fowever# while providin% we* desi%n solutions# the one thin% that should *e kept in mind is the *rowser compati*ilities. !heory$*uildin% without empirical testin% 3.. Insertion of too much flash elements should *e avoided and the colors used in the we*site should *e eye soothin%. !he site should *e visually appealin% and the content should *e simple. J. %inning ma( "e a prerequisite for his or her actuall( "ecoming one# . 3therwise the online visitors will click out of the site. Question No: 41 ( Marks: 5 ) nlist an! fi"e characteristics in which #ale entre$reneurs are different fro# fe#ale entre$reneurs% Education &ducation appears important in the up"ringing of the entrepreneur' in the level of education o"tained and in pla(ing a ma)or role in coping %ith pro"lems# *lthough formal education is not necessar( for starting a ne% "usiness' it does provide a good "ackground# +n education' female entrepreneurs previousl( e. Empirical research within *usiness environments Question 2o: 3= 7 Darks: + 8 While developing the %e" site %hat characteristics should "e kept in mind? . It speaks a lot a*out your or%ani/ation and can %ive it pu*lic reco%nition. : J>eep the "ite "imple$ the site should *e kept simple. Empirical research# measurin% the attitudes and ethical *eliefs of students and academic faculty ..

.nswer: DcDonald1s with >F': The merger in this case %ill "e a hori/ontal mer%er "ecause the( "oth produce related products' %hich is the condition of hori-ontal merger# 3ne "teel Dill with other "teel Dill: The t%o steel mills %ill mer%e hori/ontally "ecause "oth the mills are producing similar product# .n oil cookin% producin% company with Desi 0hee producin% company . and preparation of a marketing plan# *s the venture "ecomes esta"lished' managerial e.oyal *ank of "cotland K "teel mill with a fertili/er producin% firm K .! "4"!ED" 6ne of the most important factors influencing entrepreneurs in their career choice is role models# .3&E D3DE&" .3.perience is one of the "est predictors of success# +n chronological age' most entrepreneurs start their careers "et%een ages // and 00# &arlier starts in an entrepreneurial career seem to "e "etter than later ones# 1enerall(' male entrepreneurs start their first venture in their earl( !2s' %hile %omen tend to do so in their middle !2s# Work Fistory Dissatisfaction %ith one3s )o" often motivates the launching of a ne% venture# Previous technical and industr( e.B2 .perience and skills "ecome more important# &ntrepreneurial e.perience in the follo%ing areas is particularl( important4 financing.pand the( form a net%ork %ith density e. product or service development.perience# &ntrepreneurial e. manufacturing.it( of the venture increases# D3!IA.ole models can "e parents' relatives' or successful entrepreneurs in the communit(# 8ole models can also serve in a supportive capacit( as mentors during and after the ne% venture is launched# This support s(stem is most crucial during the start5up phase# +t is important that an entrepreneur esta"lish connections to support resources earl( in the venture formation process# *s contacts e.3 with .tensiveness of ties "et%een t%o individuals) and centrality the total distance of the entrepreneur to all other individuals#) The strength of ties "et%een the entrepreneur and an( individual is dependent on the frequenc(' level' and reciprocit( of the relationship# *n informal net%ork for moral and professional support "enefits the entrepreneur# In the %iven situations what types of mer%er is suita*le for each situation and why6 K DcDonald1s with >F' K 3ne steel mill with another steel mill K .!I32 While motivations ma( var(' the reason cited most often for "ecoming an entrepreneur independence5not %ants to %ork for an(one else# 6ther motivating factors differ "et%een male and female entrepreneurs# Mone( is the second reason for men3s starting a venture# 7o" satisfaction' achievement' opportunit(' and mone( are the second order reasons for %omen# Question No: 41 ( Marks: 5 ) &hat is #eant b! role #odels? &hat role do the! $erfor#? .perience "ecomes increasingl( important as the comple.2D ".%e &ntrepreneurial age is the age of the entrepreneur reflected in the e.D.perience is also important once the decision to start a "usiness is made# &. development of distri"ution channels.

n oil cookin% producin% company with Desi 0hee producin% company: The merger in this situation %ill "e a production mer%er "ecause production of "oth products is related "ut the products themselves are not competing# $ira is the currenc( of %hich countr(? 1erman( :rance +tal( . 1<=0 1<== 1<=> +s china a mem"er of %orld trade organi-ation? ?es @o . .th option + don3t remem"er %t it %as Singapore3s independence from Mala(sia 1<=.3 with .oyal Bank of "cotland: 9oth the "anks %ill mer%e hori/ontally "ecause "oth are providing similar t(pe of services# "teel mill with a fertili/er producin% firm: Since "oth the firms are non5interrelated so this merger %ill "e a diversified mer%er..D.B2 .