CASE STUDY

Q1) What other management challenges do you see for a US – based venture firm that establish
operation in India?

Ans) The other management challenges which a US based venture firm face during operation in India
are:

1. India has a very elaborate legal system and overloaded courts. Foreign companies have to jump
through several hoops to secure license.

2. Accounting system is completely different compared to foreign accounting system.

3. Technology used in India is not upgraded, foreign firms uses advanced technology.

4. Lack of infrastructure facility.

5. Recruitment is another challenge for the companies as there is an enormous crowd applying for jobs
in India, whereas the number quality and talented professional is very less.

6. People in India are considered to be “price centric customer” they do not too much of witness toward
the brand loyalty.

Q2) What type of organizational structure is DF J employing across as offices? Is the most appropriate
structure? Why?

Ans) DFJ employing across as offices is a “network based” organizational structure. It is an organizational
structure makes sense of the spread of resources. It can also describe an internal structure that focuses
more on open communication and relationship rather than hierarchy.

Pros

Cons

Visualizes the complex web of onsite and offsite relationship in companies.

Can quickly become overly complex when dealing with lots of offsite processes

Allow companies to be more flexible.

Can make it more difficult for employees to knows who has final say

2/4

Give more power to all employees to collaborate, take initiative, and make decision.
Q3) Identify at least one Indian firm that has raised venture capital. Describe its business and estimates
its livelihood for long term success.

Ans) IDG Ventures is an Indian firm that has raised venture capital. It is having a global network of
technology venture fund with more than $4 billion, IDG venture India is a leading India-focused
technology venture capital fund specializing in start-ups, early stage, growth stage and expansion stage
companies.

1. Industries like: Digital consumer- Internet, mobile, media, Enterprise Software- software products
and Enterprise services.

2. Investment: Invest in India-based companies and also in companies outside India. The firm invests
between $1 Million and $10 Million.

Q4) Examine the background of the DFJ India management team, experiences and capabilities do they
have that make them uniquely able to lead a venture capital firm?

Ans) By examining the working structure of DFJ company and the team management by the company,
the way they are easily able to adopt the nature and laws of the Indian though they have worked only in
foreign companies. They would find some difficulties with some management services, but I think that
the company would be able to compete with the other competitors, but they would take some time to
lead the market.

ASSIGNMENT- II

Q5) Is increasing the entrepreneurial orientation of a firm always a good thing? Or are there
circumstances or environments in which the further pursuit of opportunity can diminish firm
performance.

Ans) The 3 components of Entrepreneurial Orientation that may effect the company performance: risk-
taking, innovativeness, and proactiveness. We show that constructive risk-taking is the central driver of
the company’s performance,

3/4

But risk taking has a direct positive relationship with performance that can be understood through the
risk-return trade off that is central in financial economic theory. The relationship between risk-taking
and performance is conditional on the level of innovativeness and thus innovativeness contributes to
performance through its positive effect on the level of risk taking. Risk-taking that is associated with
innovation has a particularly strong positive relationship with performance, consistent with innovation
being driver of growth of profitability. More proactive firms tend to take on more risk and thus also
perform better than less proactive firms.

Q6) Why do role models have an impact on a person’s decision to become an entrepreneur? Do you
think that a person whose parents was an entrepreneur of a failed business is more likely to start his or
her own business than a person whose parents were managers of large established companies?

Ans) Yes, role model have an impact on the decision of a person whether to become an entrepreneur or
go into any other profession. Eg: If a boy’s father is a business man and the boy’s role model is his
father, he grows up seeing his father and would get a thought of becoming like his father. If the father is
not a business man and he is a automobile engineer then the boy would get a though of becoming a
automobile engineer.

According to me the parents who had a failed business in his entrepreneurship would be most likely to
support their child in setting up a business as they know how the market works and the mistakes done
by them which has led to failure of the business would not be repeated by them, because failures also
give experience.

And the person whose parents are managers of large establish companies would also support his child
to build business, but the child will had more financial support than the other child. Though financial
support is not enough to start a business, but this child would a lot of time to get settle in the market.

Q7) What excites you of being an entrepreneur? What are your major concerns?

4/4

Ans) The things that would excite me after becoming an entrepreneur would be:

1. Thinking of a creative and a unique idea that would help me to compete with the competitors.

2. Risking taking would be another important component of the entrepreneurship that would excites
me.

3. Decision making would be another as how I would take a right decision at the right time so that the
customers or the business is not at any loss.

4. Competing with the competitors.

5. Time management.

6. Expanding of the business.

My major concerns would be decision making and competitors.

Q8) What makes an excellent business plan?

Ans) Good business plan must include all the financial information. Write up details about all loans and
when they were paid off. Moreover, summarize detail about capital equipment that will be used and
how it will be depreciated. Conduct a break-even analysis that estimates when your company will likely
turn a profit. Project your sales and profit each month the first year and every quarter for years two and
three. State the industry in which you will be operating your business. Clearly outline your competitors
in your industry by market. Compare your strength and weakness to these competitors

NAME: Gowtham yadav

CLASS: BBA- 3C

ROLL NO: 224