FINAL EXAMINATION

ENTREPRENEURSHIP

DEPARTMENT OF BUSINESS ADMINISTRATION

SEMESTER VII

NAME: AREEBA NISAR

ENROLLMENT NUMBER: 2017-BBA-009

INSTRUCTOR: MR. TANVEER ABBAS

DATED: 12TH JAN, 2021

Q # 1. How you will develop/obtain the Intellectual property (patents, trademarks, copyrights
and trade secrets) of your entrepreneurial business according to Pakistani rules and
regulations.

Intellectual property:

Intellectual property are the creations of mind related to any kind of inventions, literary or artistic
works. Symbols, names and images used in commerce are also under the head of intellectual
property. Intellectual property can be divided into two categories:

 Industrial property includes patents for inventions, trademarks, industrial designs and
geographical indications.
 Copyrights cover the literary works such as novels films music artistic works etc.

Intellectual property rights are like any other property right. They allow creators or owners of
patents, trademarks, or copyrighted works to benefit from their own work or investment in a
creation.

Now coming towards the first one of the intellectual property, a patent is a limited right granted
for an invention a product or a process that provides an innovative way of doing something that
offers a new practical solution to a problem.

A trademark is a distinguishing sign that identifies certain goods or services produced or

provided by an individual or a company. The trademark registration and protection helps the
consumers to identify and purchase a product or service based on whether its specific
characteristics and quality as indicated by its unique trademark meet their needs. Trademark
protection ensures that the owner of marks have the exclusive right to use them to identify goods
or services or to authorize others to use them in return for payment.

Trademark is basically linked with the product or service, it can be a word, slogan, any symbol
or a sound that distinguishes one brand, product or service from another. It protects the
customers from getting confused between different products of brands and help them to
recognize the product from its trademark. Example of trademarks is Apple logo, Intel Inside
logo. Trademark does not need to be significantly approved by the government to be in effect,
owners can use it abundantly in commerce. But registration of trademarks provides a benefit and
protection to the owner, which is gained by filling the papers or application in the government
office, also known as “Trademark Office” or “Patent or “Industrial Property Office”. Trademark
application asks the user or a company for complete and clear description, usage and description
of a trademark. Hence, a registered trademark is legally protected and is known as a registered
Trademark. Trademarks are economical to obtain and can be bought or sold and it can be
declared null or void by the court on the request of any party if trademark consists of the sign
that should have not been registered. Trademark owner give licence to the third party to use their
trademarks locally in the country, and it is very beneficial in international business relations.

As our business is related to clothing for women, under the name of Fit Stitch, therefore, the
intellectual property rights that needs to be secured for our business would only be confined to
trademarks rights.

This clothing business name “Fit Stitch” is a well-established project. Fit Stitch provides
clothing to the expected women. Services and products provided by our business will initially be
providing the maternity clothing only when our business will established we also provide the
other products and services as well covering other customer segments.
Intellectual Property Organization of Pakistan was established as an autonomous
body on April 8th 2005 under the administrative control of the cabinet division for integrated and
efficient Intellectual Property Management in the country. The trademark registry copyright
office and the patent & design office became part of the new organization under a unified and
integrated management system. The major functions of the organization include:

Administering and coordinating all government systems for protection and strengthening of the
intellectual property,

 Managing all IP offices in the country,

 Creating awareness about IP rights,
 Advising federal government on IP policy
 Ensuring effective enforcement of IP rights through their designated IPR enforcement
Agencies. That can be Police, FIA and Pakistan Customs.

For trademarks registration in Pakistan, Trademarks registry is a primary body of intellectual

property organization of Pakistan working for the registration of trade and services marks under
the Trademarks Ordinance 2001. It is a Federal government body and its jurisdiction for trade
and services marks lies within the geographical boundary of Pakistan. It works as a Civil Court
and its decisions are appealable at the provincial high courts. The trademark registry is headed by
Registrar and its office is located in Karachi and also regional office sited in Lahore.

A Trademark registration is valid for 10 years counting from the date of filing in the territory of
Pakistan. The registration can be renewed for unlimited number of successive 10 year time
durations. Therefore, a trademark can be protected forever.

PROCEDURE FOR REGISTRATION OF A TRADEMARK

The procedure for Trademark registration is as follows.

The applicant applied for a Trademark search by filling out TM form 55 and giving the required
trademark. A search is then made by the Trademark Registration office to check if a Trademark
similar to the one being sought already exists. If a similar Trademark does not exist, the applicant
can move onto the next step. If a similar Trademark is already registered, the applicant can give
another Trademark for search by filling out another form. This trademark search is not
mandatory but is recommended by Trademark Registration office to avoid any dispute in the
future with matching trademarks.

After the search is made and does not result in finding a similar trademark, the applicant fills out
the application form for the registration. Goods and services for which a Trademark can be
obtained are divided into several categories known as classes. The application must contain

 Prescribed Application Form

 8 copies of clear Reproduction of the Trademark word, symbol, logo, 3D features etc.
 A list of goods and services for which The trademark is being sought
 Payment for to the respective administrator usually the Director General IPO Pakistan

An acknowledgment report is sent to the applicant within 15 days of application submission. The
applicant is further notified regarding the application via an examination report within 3 months
of application submission. If there is any objection regarding the trademark, applicant is notified
with the Show Cause Notice to which an applicant must respond within two months and clarify
all objections or the request will be cancelled.

If there are no objections are this stage, the trademark is published in a monthly digital journal
which is available on IPO website. The journal is available publicly and anyone can view the
trademarks which have been applied for registration if some party has any objection against the
trademark published in the journal take and seek IPO action against it by filling out a form to
request the launch of an investigation.

An applicant can submit their defence against opposition notice by filling out the respective
forms. If no objection is raised within two months of the journal publication, the applicant
request for Trademark registration is accepted and they are instructed through a demand notice to
pay the registration fees in order to receive a registration certificate. Registration certificate is
issued once the final payment is made by the applicant.
Q # 2. As you have developed an entrepreneurial business in this semester. Write the Vision,
Mission and core values of your business. It should not be matched with any other student.

FIT STITCH

Mission:

Mission is not simply a description of an organization by an external party but an expression

made by its leaders of their desires and intent for the organization. The purpose of a mission
statement is to communicate the organizations purpose and direction to its employees, customers,
vendors and other stakeholders. A mission statement also creates a sense of identity for its
employees. Organizations normally do not change their mission statements over time since that
define their continuous ongoing purpose and focus.

Fit Stitch aims to cover the maternal segments of female consumer base by offering quality
clothing at affordable prices and also bringing innovation in customizations, making the brand
currently exclusive for the women undergoing the stage of maternity.
Vision

Vision statement provides direction and it sets a course to order future that tells the people in that
organization what the group believes, how to behave and what kind of decisions to make without
obviously doing so. Therefore, a vision means to imagine a world that does not yet exist and
intends to inspire people to make it a reality.

Fit Stitch aims to provide its female customers with a new variety of clothing and free size
fittings, making it accessible for every woman in the Pakistani market, covering all the segments
that might have been left unattended by other clothing brands.

Core values:

Core values are a set of fundamental beliefs, ideas or practices that inform how you could
conduct your life both personally and professionally. Businesses can also have and maintain core
values. These can help in organization determine how to allocate resources and make important
decisions to grow. Identifying core values for one’s self or within a company can provide
structure and instruction especially when dealing with the certain decision or dispute. If one of
the core values is honesty, he or she would refer back to it when deciding whether or not a
certain piece of information should be kept secret.

Some of the core values that are observed at Fit Stitch are:

 Respect

Respect not only means to talk while using pleasant words but also implies paying attention to
others' emotions and rights and changing your behavior accordingly. Being respectful is more
than just being polite and non-offensive in an organizational context. Companies with respect as
a core principle appreciate the skill of their workers and recognize their accomplishments. A
respectful workplace facilitates good social health for workers and is an environment where
individuals can collaborate and exchange ideas without fear of mockery. It is also a place where
bosses, both at work and during their off time, appreciate team members' time. When staff feel
appreciated by their organization and management, the respect is given back in turn. They are
more likely to productively use their work time and follow the policies and procedures of the
workplace.
  Empathy

Workplace morale eventually declines when workers don't feel heard or respected as individuals.
They sometimes end up feeling like robots working endlessly. This feeling rarely stems from the
type of job they do and is more about whether their business understands their needs and
responds to them. Empathy as a core value allows executives to concentrate on the health and
well-being of workers as a priority. It clarifies the way for business to take active measures to
boost the morale of the workplace.

 Transparency
In every partnership, trust is important, and that includes the ones your company has with its
staff and clients. It can be just as counterproductive as outright dishonesty to withhold data on
how you function. Transparency doesn't mean that you have to share with the world all your
trade secrets. Instead it means transparent, frank dialogue about how at the organizational level
you make decisions. This includes everything from how you hire and train workers to which
suppliers you partner with.
In the company, openness also prevents favoritism and bigotry from taking hold. If the leaders
know that promotions and disciplinary action must be clarified, they will be more likely to make
fair choices. Management integrity promotes the same openness from staff, who would be less
likely to steal and therefore invest more in the company.

 Customer Focus

We are 100% committed to do what is right for our customers. We want them to keep coming
back and recommend it to others as well. To make the point as upfront as possible we made our
brand tagline “Embracing All Shapes”, emphasizing the fact that we put our customer’s mental
and physical well-being at the center of our operations and thinking every second of the day. On
a daily basis we maintain our customer focus by

 No compromise on the quality of our products solutions and service

 Working with customers to build long-term partnerships on mutual benefit
 Understanding how are business decisions will affect our customers
 Delivering on our promises and commitments
  Entrepreneurial spirit and ambition

At Fit Stitch, we believe everyone can develop their entrepreneurial spirit. That is why we have
made a core value. We combine this with the value and vision because we expect our people to
follow through on their ideas to make them happening. Business can be tough and one must
adapt constantly in a fast moving world, always meeting customers’ needs and spotting
opportunities for new markets. Entrepreneurs are adaptive, risk taking and hungry for success
and are brilliant at recognizing new opportunities and developing talent.

 Accountability

Everybody in our company takes responsibility for their own actions when culture of
transparency is built. They get it done by the deadline without making excuses if they're given a
mission. When someone makes a mistake, instead of blaming others, they own up to it and look
for ways to correct it. It's probably clear how keeping people accountable will boost the
productivity of our company, but some individuals are shocked when they find out that it can
also have a positive effect on morale. Employees will concentrate on their jobs because they
know that the errors of someone else will not be blamed on them. Increased engagement and
improved communication are also correlated with transparency.
Q # 3. Write the summary of below case study as per roll no assigned and critically analyze it
according to Pakistani Markets with the help of logical reasoning. Also explain the relevancy
and usefulness of this case study to your current entrepreneurial business.

CASE STUDY

“WILL GROUPON MAINTAIN ITS SIZZLING PACE OF GROWTH?”

SUMMARY

Groupon is a website located in the major geographical markets of the world that is mainly used
to acquire customers, making them familiar with businesses previously unknown to them. It was
first introduced in Chicago, then Boston and afterwards in other states of the United States. The
main focus of Groupon is to enhance the foot traffic and hence improve their sales.

Its working is quite different from other businesses. It offers one deal per market that it is
serving. If a certain number of people sign up for that deal in a specified time window, the deal is
considered to be valid and available. If not, the deal is then cancelled and no one is charged. One
such deal was made available for the subscribers of Groupon in which breakfast from the
Oklahoma Café was being offered at half of its original price. Once the minimum number of
people is reached for the deal to be rendered valid, each of the subscriber who has purchased that
deal would be charged through his credit card and would be given a voucher through e-mail that
he can redeem within a specific period of time, usually 6-12 months. There is no limit for
purchasers and there can be as much purchasers for one deal as desired. Redemption can be done
by showing the voucher to the merchant who offered the deal. The vast time-window allows the
subscribers of Groupon to comfortably use their voucher and also increases the number of people
coming into the business to redeem the voucher.

The subscribers can sign up for more than one city and would receive deals for each of the city
via social media platforms like Twitter or Facebook or also through e-mail. The company earns
by splitting the paid money by the purchaser in half. If an $80 offer is available for $40, then that
paid $40 will be split as $20 for each of the party, the company and the retailer. It primarily
targets the urban female customer base, ranging from the ages of 18-34 years old.

Groupon’s pitch to merchants is it being a customer acquisition tool. It anticipates that the
purchaser will not only redeem his or her voucher but it would also make him spend in that store
and may make him a loyal customer of that store. The business of Groupon shows its optimal
benefits when working for a service based business, meaning that there are high fixed costs and
low variable costs, hence making the cost of offering much more viable. Food related businesses,
makeup salons, spas and ticket booking businesses are some of the most common groups of
offerings for Groupon.

Companies having limited advertisement budgets are benefitted much from Groupon as they do
not incur any cost while Groupon posts offerings for that company. Only the earned revenue for
that offering is divided into half for both the parties. But if the offering is made for a gym or a
yoga studio, the only additional cost would be of hiring extra trainers to cover up for the availed
offers.

Although Groupon is seen to be a successful venture, it has faced criticism multiple times when
the offerings saw a large flooding in of customers that the retailer was not able to handle
efficiently and hence resulted sometimes in a financial loss or negative feedbacks.

Despite their shortcomings, Groupon has managed to maintain a high satisfaction level from its
retailers and a large number of them are willing to do business with Groupon repeatedly.

Groupon has expanded its footprints through the assistance of acquisitions and organic growth,
by signing up new subscribers and expanding to new cities. It made acquisitions with European
and Indian websites and with a mobile technology company as well.

Groupon has gathered a large amount of capital by the investments made by various group of
investors, making observers predict that Groupon would utilize these investments to enhance its
sales force, make acquisitions, use it for future growth and improve its back-end operations.
Groupon may also secure an IPO in the probable future.

Groupon may have internal and external opportunities and challenges in future while
experiencing its growth and also some possibilities. They may be enrollment of new subscribers
through different customer acquirement tools such as paid marketing, or expanding to new
geographical locations, involving customers and purchasers more through increased usage of
mobile communication channels, acquiring deal of the day sites and rebranding them with
Groupon brand and allowing them to operate autonomously and many other strategies that can be
useful to boost Groupon’s growth efficiently.

The above mentioned strategies can be adopted by Groupon only if it is in the best interest of
Groupon and also if Groupon is able to implement them successfully. Also, many copycat
ventures are posing a threat to Groupon by damaging their reputation and hence increasing their
competition in the international market. Also, reports of some merchants losing their money
while working with Groupon also has an effect of negative word of mouth. Lastly, influx of e-
mails to the subscribers might irritate them and compel them to eventually drop the service.

Critical analysis according to Pakistani market:

Groupon is a business venture with a relatively different business model. It is actually quite
simple as well in its operations and managements and does not confuse its customers and
retailers with lengthy terms and conditions. If this above described and discussed venture is
analyzed while keeping the Pakistani market in mind, it has a few setbacks that would act as
major obstacles in the company’s growth in Pakistan. First, there are many businesses in
Pakistan that are still working on the brick and mortar store principle. Although the aptitude for
online business and e-commerce is enhancing with every passing day, but there is still a large
gap to cover in order to be a successful e-commerce practicing nation. Also, the frequency of
cybercrimes and other fraudulent acts in Pakistan via the internet plays an important role in
suppressing the success rate of online businesses. Given that Groupon despite being a prosperous
business had to face some mishaps in the well-developed countries such as the United States,
hence Pakistan has a much higher probability of unfortunate incidents keeping in mind the fact
that it is a developing nations and has many loopholes that need to be taken care of.

But businesses giving coupons on purchases are starting to prevail in Pakistan, but mostly in the
food sector. For example, Cheetay, FoodRunner and FoodPanda are some of the apps that give
coupons to their customers in the form of e-mails and are valid for a certain period of time. But
the main difference in these businesses and Groupon is that they cover only the food and grocery
sections whereas Groupon focused on many other groups as well.

SWOT ANALYSIS OF GROUPON

Strengths Weaknesses
 Strong brand portfolio  Dire need of investment in new
 Reliable suppliers technologies
 Good returns on capital expenditure  Focus on research and development
 Organizational culture confined to its
traditional business model
Opportunities Threats
 Adopting environment friendly  Shortage of skilled workforce
policies  Intense competition
 Market development  Liability laws in different countries
 Decreasing costs of transportations

Relevancy to the business:

Keeping in view the current pandemic situation of COVID-19, our entrepreneurial business
venture was based online. The orders for the clothing, the processing and the sales via doorstep
delivery services all was conducted through our social media platforms of Facebook, Instagram
and WhatsApp. The relevancy of our business venture Fit Stitch with Groupon, as the name
suggests combination of the words “Group” and “Coupon”, our business also presented a
discount offer to its customers upon its launch. Our main business pages were updated with the
pictures of the clothing shirts and our chosen model and a discount code was made official by
our page that if used by the willing customers, it would grant them a certain amount of discount
on the price of the shirts if they ordered them from our official platforms.