PATHWAYS WORLD SCHOOL

DEPARTMENT OF BUSINESS MANAGEMENT AND ECONOMICS

MAX.MARKS 20 DURATION 1:00 HR

q.1 Wedding Bliss

Zara Bliss is a successful sole trader who designs and hand-makes tailor-made wedding
clothes for both brides and grooms from the local area. Factors contributing to her success
include:

 an excellent reputation for unique and creative designs branded as Wedding Bliss

 close relationships with her customers who look for original designs and are willing to
pay a high price for the unique product and the service.

Zara enjoys Flexible working time as she operates from a studio at home. She values her
complete creative freedom but dislikes the administrative side of the business. Demand for
Zara’s clothes is seasonal. At certain times, she is unable to satisfy all customer orders. As a
consequence, some of her customers have gone to her competitors. Zara wants to expand her
business and to create a new line of clothes in order to reduce the waiting time as well as to
ensure more consistent cash flows. She is considering some external growth options.

A national clothes manufacturer, Belle Ltd, has approached her in order to buy her brand
name and employ her as designer and creative director. The competitive advantage of the
clothes manufacturer lies in mass-market affordable wedding clothes. Zara has been offered a
good salary and 10 % ownership.

Zara is under pressure to decide quickly but she feels that she needs to apply a more formal
decision-making process.

1. Define Intraprenuership . [3]

2. Discuss whether Zara Bliss should remain as a small sole-trader or accept the offer
from Belle Ltd.
[7]
Q.2 Construir

Construir is a large construction company that is committed to quality and high

productivity . The company makes substantial investment in the training and professional
development of its workers .

The government is considering the construction of a bridge in Ho Chi Minh in Vietnam for
faster access to airport , which would take three years to complete. This would be through a
public-private partnership with Construir. The government would pay half of the cost of
construction and would give Construir the right to charge a fee to drivers who use the bridge.
Building the bridge, however, would represent financial and operational risks for Construir.
The Company will not be able to accept other construction projects in order to build the
bridge.

Moreover, a general election is due next year and the current government is unpopular and
not expected to win. If a new government is elected, Construir believes that the project may
be cancelled. Some local environmental pressure groups are currently campaigning against
the bridge project, arguing that government funds should be spent on health and education.

1. Comment on two goals of for – Profit Social Enterprises . [4 Marks]

2. Analyse two benefits for Construir of a public-private partnership with the

government. [6
Marks]

Answers :

Q1.

1. Define Intraprenuership .
Intraprenuership is defined as the act of being an entrepreneur but as an employee within a
large organization. Intraprenuers work and act as an employee who thinks and acts as an
entrepreneur within a section of the organization. They are independent, and generate new
ideas and innovations for the organization.
2. Discuss whether Zara Bliss should remain as a small sole-trader or accept the
offer from Belle Ltd.
A sole trader is an individual who rus and owns a personal business. The owner is held
responsible for the success or failiure of the company, and are often small family run
businesses and can be set up comparatively less capital. Sole traders generally work alone or
may hire employees. Its the most common type of business owner ship. Zara Bliss should
accept the offer of Belle Ltd as :
a. She
 Q2.
1. Comment on two goals of for – Profit Social Enterprises .
Profit Social Eterprises are revenue-gennerating businesses with social objectives at the core
of their opera