CHRP 20: ENTREPRENUERSHIP AND CONSULTANCY EXAMS REVISION – JUNE 2017 – NOV 2020

Topic THE CONCEPT OF ENTREPRENEURSHIP

Sub 1. Meaning and importance of entrepreneurship

Topics 2. Evolution of entrepreneurship
3. Entrepreneurial culture
4. Entrepreneurship
5. Situations in which entrepreneurship is indicated
6. Entrepreneurship process.
7. Factors affecting entrepreneurship in less developed countries

Q1 In 2016, the Kenya Government hosted Entrepreneurship Summit opened by the former USA
President, Illustrate the summits demystification of the myths surrounding Entrepreneurship
Development. Nov 2017.
1) Myth 1: entrepreneurs are doers, not thinkers
2) Myth 2: entrepreneurs are born, not made
3) Myth 3: entrepreneurs are always inventors
4) Myth 4: entrepreneurs are academic and social misfits
5) Myth 5: entrepreneurs must fit the profile
6) Myth 6: all entrepreneurs need is money
7) Myth 7: all entrepreneurs need is luck
8) Myth 8: entrepreneurship is unstructured and chaotic
9) Myth 9: most entrepreneurial initiatives
10) Myth 10: entrepreneurs are extreme risk takers.

Q2 For a business venture to succeed, it requires to establish credible suppliers. Suggest

FIVE factors that are critical for an owner-manager in choosing a credible supplier (10
marks) Nov 2017.
 Cultural Fit – including values.
 Cost – covering price, Total Cost of Opportunity (TCO)
 Value – value for money and value generation opportunities.
 Experience in the market and current references.
 Flexibility.
 Response to change – in orders and products.
 Quality products

Q3 Kenya has many ethnic groups with different cultures and diverse beliefs. This status
has also been exemplified further by the entry of County Governments. By use of
examples demonstrate FIVE ways in which the cultural diversity phenomenon can be
employed to promote entrepreneurship development in Kenya (10 marks) Nov 2017.
 Exchange of ideas/knowledge e.g. fish farming in Central Kenya
 Healthy competition during cultural events
 Skill complementarities – blending of skills between different cultural groups to increase
efficiency and competitive advantage.
 Increased opportunities especially in sectors where technology and knowledge play more
important role.
 Ready market
 Cultural diversity and knowledge transfer support new ideas and productivity.
 generates new entrepreneurial ideas and replaces inefficient entrepreneurial initiatives by
productive ones

Q4 In the recent past Keroche Liqour Distillers Limited and Yala Rice Irrigation Scheme
 Limited in Nakuru and Siaya Counties respectively were faced with challenges
commonly experienced by small and medium enterprises in Kenya. Discuss (10 marks)
Nov 2017
1) Inadequate support from the government
2) Poor infrastructure
3) Ease of doing business remains a bottleneck.
4) Technology remains a major deterrent
5) Limited market access
6) Rapid technology changes.
7) New laws and regulations
8) Competition from cheaper products
9) Inability to access credit facilities
10) Pandemic e.g Covid-19
11) Inability to attract partners/investors for expansion
12) Negative media publicity

Q5 It is in the public domain that there is petroleum oil in Turkana County. Serious
entrepreneurs are having sleepless nights contemplating either to adopt early or
delayed entry strategies when setting various businesses. Compose a case for each
strategy (10 marks) Nov 2017.

Case for Early Entry

i. The entrepreneur is able to establish her product and therefore it is set as a standard
measure for the products to follow
ii. The entrepreneur is able to own the technology used in the oil processing and can even
apply for patents
iii. The entrepreneur is able to build an image for her business early enough before other
entrants into the market
iv. The entrepreneur is also able to establish her enterprise on the ground early enough
v. Be able to tap into consumers first and make a strong impression, which can lead to
brand recognition and brand loyalty
vi. May be able to control resources, such as basing themselves in a strategic location,
establishing a premium contract with key suppliers, or hiring talented employees
vii. Can gain an advantage when there is a high switching cost for consumers to switch to
later entrants

Disadvantages of Being a First Mover

i. The first mover may invest heavily in persuading consumers to try a new product. Later
entrants would benefit from these informed buyers and would not need to spend as
much on educating consumers.
ii. Later entrants can avoid mistakes made by the first mover.
iii. If the first mover is unable to capture consumers with their products, later entrants can
take advantage of this.
iv. Later entrants can reverse-engineer new products and make them better or cheaper.
v. Later entrants can identify areas of improvement left by the first mover and take
advantage of them.

Case for Late Entry

i. There is the ability to leverage on others mistakes to make better decisions
 ii. It allows for enough time to do research on the product and the market
iii. Here, the customers are already educated by the previous movers therefore the
entrepreneur will do less customer education
iv. Here, the regulations governing oil mining is clearer and better therefore the
entrepreneur will avoid may mistakes

Q6 Youth entrepreneurship has become a priority in Kenya owing to the high level of
youth unemployment. Explain the policies that the government has put in place to
enhance their entrepreneurial qualities (10 marks) Nov 2018.

i. Increasing scope for finance: The government has various financial schemes
for entrepreneurs wanting to expand their businesses quickly e.g. the Youth
Enterprise Fund
ii. Promoting cooperation between researchers and the private sector: The
government is working with the private sector and knowledge institutions to
improve public-private partnership.
iii. Reducing the regulatory burden on entrepreneurs: These include granting
permits more quickly, or even automatically, and making greater use of
digital technology.
iv. Developing IT tools for entrepreneurs : Providing government services online
reduces the regulatory burden on entrepreneurs. IT also offers unlimited
scope for new products or for making business processes more efficient.
v. Helping entrepreneurs access networks: Good networks help businesses
grow. The government is uses Trade missions abroad to access new foreign
markets that youths can explore for their businesses.

vi. Providing opportunities : This is done through regulatory frameworks that sets
aside a slot where youth are allowed to venture into e.g. AGPO

Q7 As an entrepreneur, you have been hired by the Government to assess the progress of
the implementation of entrepreneurship policies. Analyze the indicators that can
inform the effectiveness of the policies in achieving the objectives. (10 marks) Nov 2018
a. Goals and targets
b. Profits /revenue received
c. High quality and qualtities
d. Diversity of workforce
e. Management of the entrepreneurial business

Q8 In Kenya, job growth potential seems to exist through the creation of small enterprises
but the prospects for growth into medium-sized enterprises is limited. Identify the
factors that hinder their growth. (10 marks) Nov 2018
a. Lack of finances
b. Lack of know how
c. Government policies
d. Competition
e. Strategic location

Q9 The company’s success was attributed to a culture of creativity and innovativeness.

Specify ways in which the management may have encouraged employees to exploit
creativity and innovativeness (10 marks) June 2019.
 a) Creating a culture that supports creativity and innovation.
b) Rewarding innovation and creativity.
c) Establishing programs to inculcate creativity and innovativeness.
d) Embracing enabling technologies that drive creativity and innovativeness.
e) Give your employees projects that are demanding, while also making sure the tasks are a
good match for their skills and resources.
f) Create tools that allow everyone to communicate strategically about innovation .
g) Vetting and refining ideas collectively and continuously.
h) Keeping top leaders focused on helping those close to the customers get the resources
and support they need.
ADD
 Attract entrepreunial minds…./recruitment
 Train for innovation and creativity/GEMBAs, TQM, etc
i)

Q10 The increasing globalization requires that organizations accommodate a multi-cultural

work environment to remain competitive. Analyze the strategies that organizations may
adopt to increase employees’ awareness about workplace diversity (10 marks) June
2019.

Diversity refers to demographic differences of a group – often at team or

Organisational level. Diversity references protected characteristics in the Employment Act
2007 are: race, colour, sex, language, religion, political or other opinion, nationality, ethnic
or social origin, disability, pregnancy, mental status or HIV status.

a) Commit to recruiting, hiring, training, developing and retaining qualified people

irrespective of race, ethnicity, gender, nationality, age, marital status and disability.
b) Commit to fairness and equity ensuring that everyone, irrespective of age, cultural,
disability, ethnicity, gender, marital status, nationality, and race receive equality of
opportunity and treatment across the organization.
c) Develop and maintain an organisational culture which values diversity, upholds the
dignity of all employees and demonstrates fairness and equity in all aspects of the
workforce.
d) Provide a work environment that seeks to engage the full utilisation of a diverse
workforce, by providing and adequately communicating opportunities for the career
development of everyone, irrespective of race, ethnicity, gender, nationality, age, marital
status and disability.
e) Intentionally and transparently support the recruitment of women to leadership positions
and any other disadvantages groups.
f) Provide a work environment that demonstrates fairness and equity in employment,
succession planning, compensation and benefit programs for all.
g) Initiate DEI training to foster understanding and support for diversity management.
h) Operationalize and support employee affinity groups.
i) Formulate and implement a diversity management policy to guide organizational efforts
towards a diverse workplace.
ADD
Include achievement of diversity objectives as part of strategy and performance targets.

Topic THE ENTREPRENEUR

Sub 1. Types of entrepreneurs
Topics 2. The entrepreneur
3. Characteristics of the entrepreneur
4. Functions of the entrepreneur
5. Entrepreneurial competencies
6. Techniques of enhancing entrepreneurial qualities
7. Self-assessment techniques for entrepreneurial potential
8. Are entrepreneurs born or created?
9. Contribution of entrepreneurs and entrepreneurs to national development

Q1 Discuss 5 factors that could have contributed to leave a lucrative job for farming in the village.

INTERNAL EXTERNAL
Need for being gainfully employed Infrastructure
Need for independence Credit facilities e.g. Machinery on
Need for power hire purchase
Need for recognition Information support
Need for security Pricing policy and unstable units
Need for Self-actualization need available at a cheap price
Technical knowledge and Tax policy
manufacturing experience Legal controls
h) Business experience in the same Political climate
or related line Technical technology assistance
Technological transformation Training/consultancy assistance
Profit margin
Heavy demand
Encouragement from big business
Financial assistance from non-
government sources
Attitude of the government to help
new units
Accommodation in industrial
estates p) Financial assistance from
institutional sources
Q2 An entrepreneur performs all the necessary roles which are essential for effective
operation and expansion of the enterprise. Discuss these roles (10 marks) June 2018.
1. The entrepreneur as an organizer
2. The entrepreneur as an innovator
3. The entrepreneur as a risk-bearer/taker
4. Entrepreneur as a Decision-maker
5. Entrepreneur as a Planner
6. Entrepreneur as Motivator
7. Entrepreneur as Facilitator of Economic Development
8. Entrepreneur as Facilitator of Social Development Entrepreneur as a Decision-maker
9. Entrepreneur as a Leader
10. Entrepreneur as a

Q3 Evaluate the entrepreneurial capabilities the Human Resource Manager at 4M Limited

may have considered when recruiting employees (10 marks) June 2019.
Personal or individual level - The entrepreneur and the team members need competences on
a personal level such as acting proactively, process and understand complex information and
recognize their limitation by reflection in their behaviour, decisions and actions
Interpersonal or team level - As they interact with the stakeholder inside and outside the
 company, they need social competences for communication, problem solving, upholding the
spirit and the positive atmosphere within the team members and external partners
Domain-specific expertise level - Domain competences are needed to identify an opportunity,
develop an organization and exploit the opportunity

Nr Entrepreneurial competences Traits Other categories

Acquisition and development of

1 resources Assertiveness Awareness

2 Administration Decisiveness Being non-judgmental

3 Analytic Competence Independence Brokering competencies

4 Business plan Integrity Championing competencies

5 Collaboration, Need of achievement Cognitive ability

Commitment to work
6 Communication Need of autonomy contract

Concern for high quality of

7 Competitive analysis Need of power work

8 Conceptual Openness Creativity

9 Control Perseverance Drive

10 Cooperation Persistence Endurance

11 Coordinate Pro-activeness Expertise

Dealing with different social Risk taking

12 customs propensity Familiarity with the market

13 Decision-making Vigilance Flexibility

14 Delegation skills Insight into the market

Q4 Justify the application of the Management by Objectives (MBO) as used by the

management of 4M Limited (10 marks) June 2019
Management by objectives (MBO) can also be referred as Management by Results or Goal
Management, and is based on the assumption that involvement leads to commitment and if an
employee participates in goal setting as well as setting standards for measurement of performance
towards that goal, then the employee will be motivated to perform better and in a manner that
directly contributes to the achievement of organizational objectives.

 Encourages detailed planning

 Role clarity - no role ambiguity or confusion
 Clear responsibilities and authority of the personnel
 Increased awareness on company goals – hence increased morale and commitment.
 Highlights areas of further training – career development
 Improves communication.
-
Benefits of MBO Limitations of MBO
 helps employees appreciate  MBO often ignores the organization’s
their on-the-job roles and existing ethos and working conditions.
 responsibilities.
 The Key Result Areas
(KRAs) planned are specific to
each employee,
 Better teamwork and
communication.
 It provides the employees with
a clear understanding of what
is expected of them. The
supervisors set goals for every
member of the team, and every
employee is provided with a list
of unique tasks.
 Every employee is assigned
unique goals. Hence, each
employee feels indispensable
to the organization and
eventually develops a sense of
loyalty to the organization.
 Managers help ensure that
subordinates’ goals are related
to the objectives of the
organization
 More emphasis is given on goals and
targets. The managers put constant
pressure on the employees to accomplish
their goals and forget about the use of MBO
for involvement, willingness to contribute,
and growth of management.
 The managers sometimes over-emphasize
the target setting, as compared to
operational issues, as a generator of
success.
 The MBO approach does not emphasize the
significance of the context wherein the goals
are set. The context encompasses
everything from resource availability and
efficiency to relative buy-in from the
leadership and stakeholders.
 Finally, there is a tendency for many
managers to see management by objectives
as a total system that can handle all
management issues once installed. The
overdependence may impose problems on
the MBO system that it is not prepared to
tackle, and that frustrates any potentially
positive effects on the issues it is supposed
to deal with.

Q5 Resource based approach to the study of entrepreneurship explains how entrepreneurs

build their businesses from the resources they currently possess or can realistically
acquire in order to gain a sustained competitive advantage. Examine FIVE resources
available to the entrepreneurs that can be employed in business with an aim of gaining
a sustainable competitive advantage (10 marks). November 2017
 Time
 Finances
 Technology
 Data
 Expertise – skilled man power
 Network
 Knowledge/Books
Q6 Assess the entrepreneurial competencies that would be critical to turn around the
company (10 marks) June 2018.
 Communication
 Decision making
 Collaboration
 Acquisition and development of resources
 Designing specific products or Services
 Managerial competencies
 Vision
 Planning
 Problem solving
 Risk taking
 Delegation
Q7 Explain ways in which entrepreneurs may promote economic development in the
country (10 marks) Nov 2020
- Employment opportunities – Job creation
- Market for local products
- Pay taxes
- Infrastructure development
- Creativity and innovation
- Earn foreign exchange
i. Investing in products and services people need.
ii. Providing employment opportunities.
iii. Commerce and regional economic integration.
iv. New technologies promote efficiency.
v. Addressing environmental challenges.
vi. Innovation impacts socio-economic objectives.
vii. Innovation happens where there is competition.

Q8 Explain the ways in which team composition may foster an entrepreneurial

organization (10 marks) June 2019

Identify who the right people are. Each organization and team will have
different needs so your right people may be different than other
organizations and teams.

One exercise you can do is to sit down with your leadership and human
resources team and identify several people in your organization who you
wish you could clone. Write down their characteristics and traits and
create your own benchmark of the right person for each position.

Identify the type of person that fits your organization and team culture.
For example, if you want to create a positive culture make sure you hire
positive people. If you want to create a culture that is creative then hire
creative people.

Make sure you take your time during the hiring/recruiting process. If you
invest your time, resources and energy to get the right people on the bus
you’ll have less headaches, expenses and flat tires later on

Remember, the people you surround yourself with will often determine the
kind of ride it’s going to be.

Q9 Lenka Company Limited is facing a decline in sales and profits which is attributed to
its inadequate capacity to innovate. Examine the interventions that would enhance the
company’s innovativeness (10 marks) Nov 2019.
i. Increase investment in idea generation
ii. Develop deep customer understanding
iii. Ensure executive-level focus and sponsorship
iv. Establish a favorable company culture
v. Use outside sources of ideas effectively
vi. Partner with suppliers for new ideas
vii. Dedicate additional resources for innovation
viii. Provide incentives and rewards for innovation

Q10 One of the barriers to the growth of entrepreneurship in developing countries is the
 high risks involved in business. Assess such risks (10 marks) Nov 2020
1. Economic Risk
2. Compliance Risk
2) Security and Fraud Risk
1. Financial Risk
2. Reputation Risk
3. Operational Risk
4. Competition (or Comfort) Risk

Q11 The Kenyan government has made great strides in promoting entrepreneurship in the
country. Identify the measures that the government has put in place to support the
small and medium enterprises (10 mark) June 2018.
1) Providing collateral,
2) Creating and supporting specific loans or grants to those that achieve certain goals, like
improving productivity
3) They could also favour them in their taxing policies.
4) The government can supply subsidised training for their employees to increase their
productivity
5) The government can help organise and subsidise networking, conferences as well as
trade shows where SMEs can participate at a much lower cost than a regular
commercial event.

a. Organizing for exchange programs for people within different countries

b. Providing entrepreneurship funds to mostly youth and women
c. Giving incentives
d. Removing barriers
e. Promoting local purchase through increased taxes on imports.

Q13 Excel Mattresses Limited has invited you to undertake a workforce analysis. Justify the
use of questionnaire in data collection. (10 marks) June 2018
a. Cheap
b. Can cover a large group at the same time
c. Fast data collection method
d. Suitable for repetitive
e. Uniformity of data collected

Q14 In a consulting assignment, building a lasting relationship with the client organization
can yield dividends. Explain the benefits which may accrue to both the client and the
consultant in such a relationship (10 marks) June 2018
a. Change management
b. Enhanced learning and development
c. Identify and seize new opportunities
d. Solve management and business problem
e. Achieve organizational purpose and objectives

Q15 Today the changing client need, growing competition in the industry, call for a HRM Consultant
equipped with competence. Use examples to justify this sentence.
a. Listening skills
b. Communication skills
c. Motivational skills
d. Problem solving skills
e. Time management skills
 f. Decision making skills
g. Interpersonal skills
h. Leadership skills
i. Business management skills
Q16 Assess 5 reasons to explain the cause of lack of success.
a. Failure to include customers in decision making
b. Failure to leverage future growth
c. Failure of internal measures on clear results
d. Lack of employee motivation
e. Lack of tools and techniques

Q17 Mr. Mkombozi made up his mind that paid employment is not worth it. Examine 5 reasons that
could have led to this success.
a) Need for self-employment
b) Need for independence or self-reliance
c) Need for power
d) Need for recognition
e) Need for security
f) Need for self-actualization

i. Infrastructure
ii. Credit facilities e.g. Machinery on hire purchase
iii. Information support
iv. Pricing policy and unstable units available at a cheap price
v. Tax policy
vi. Legal controls
vii. Political climate
viii. Technical technology assistance
ix. Training/consultancy assistance
x. Profit margin
xi. Heavy demand
xii. Encouragement from big business
xiii. Financial assistance from non-government sources
xiv. Attitude of the government to help new units
xv. Accommodation in industrial estates
xvi. Financial assistance from institutional sources

Q18 There are many self-assessment tests available to entrepreneurs for the evaluation of
their entrepreneurial potential. Evaluate the challenges that most entrepreneurs
experience when using the focus groups as a self-assessment method (10 marks)
a) The focus group method provides little experimental control.
b) Focus groups do not provide quantitative results.
c) Data collected are usually difficult to analyze.
d) People are not really comfortable discussing personal topics in a group situation.
e) The discussion must be audio or videotaped, field notes have to be recorded, and
comments must be transcribed verbatim, increasing the risk of error.
f) The method requires carefully trained interviewers.
g) Groups may vary considerably and investigators may have difficulty assembling the
appropriate group.
h) There is also the potential for discussion facilitators to ask leading questions that produce
 biased results.
i) There is a risk that a leader could dominate or 'hijack' the discussion.
j) Results obtained may be biased, when one or two participants dominate the discussion.
k) Generalizing knowledge learned about the sample may not generalize to population
because participants are self-selected.
l) The moderator may influence the group interactions, thus distorting results or findings.
m) Problems may arise if topics are controversial in nature, leading to disagreements and
arguments.
n) Dealing with sensitive topics is a challenge.
o) A contrived or artificial environment may influence the interactions, and thus bias
responses.
p) Ethical issues may arise regarding confidentiality.
q) The results obtained are influenced by the researcher or his or her reading of the group's
discussion, thus raising questions of the validity of the research.
r) If a focus group is held in a laboratory setting with a moderator who is a professor and
the recording instrument is obtrusive, the participants may either hold back on their
responses and/or try to answer the moderator's questions with answers the participants
feel that the moderator wants to hear.
s) Another problem with the focus group setting is the lack of anonymity. With multiple
participants, confidentiality cannot be assured.
t) Focus groups often aim to please their underwriters rather than provide independent
opinions or evaluations, the data are sometimes cherry picked to support a foregone
conclusion.

Q19 Tasty Coffee Millers specializes in the production of high quality coffee for both
domestic and export markets. Examine the contributions that this enterprise can make
towards the growth of the Kenyan economy. (10 marks) June 2018.
▪ Employment creation
▪ Innovation
▪ Promotion of national productivity
▪ Improved standard of living
▪ Export promotion
▪ Conservation of foreign exchange
▪ Utilization and conservation of local resources

a) Workers’ salaries and wages paid by the enterprise enables them to buy goods and
services, improve their living standards and raises the GDP of the nation.

b) The enterprise remits taxes under the Kenyan Income tax laws. Taxes generally
contribute to the gross domestic product (GDP) of a country. Because of this
contribution, taxes help spur economic growth which in turn has a ripple effect on the
country's economy; raising the standard of living and may also increasing job
creation in public sector.

c) Enterprises promotes national productivity when goods are produced and sold in a
local economy raising (GDP). Kenya’s domestic coffee consumption is estimated at
60,000 bags in 2020/2021.

d) Production of export goods which require less or no imported inputs will conserve
foreign exchange thus reducing the demand pressure on foreign exchange by
 importers, and ultimately conserves the nation’s hard-earned reserves.

e) The export of (surplus) coffee will earn the country some foreign exchange. Exports
increase revenues, increase jobs and raise the standards of living, increase Kenya’s
foreign currency reserves and in turn increase liquidity and enable the government to
manage inflation efficiently.

f) Entrepreneurial activities may influence the country’s economic performance by

bringing new products, methods, and production processes to the market and by
boosting productivity and competition more broadly.

1. You have been appointed as a human resource management consultant to review the
business model of a declining medium-sized enterprise. Discuss the benefits that may
accrue to the firm upon implementing the recommendations on the use of technical
innovation (10 marks) Nov 2018.

Q20 Entrepreneurial spirit is likely to thrive in an enabling environment defined by suitable

entrepreneurial policies and good leadership. Identify FIVE government policies that
are likely to enhance organizational entrepreneurship (10 marks) June 2019

a) Monetary policy to lower interest rates. The central banks can alter its
benchmark interest rate – the figure that directly influences the prime interest
rate – to stimulate lending to businesses.
b) Industry regulation to control imported goods
c) Tax rebates and breaks
d) Affordable funding for entrepreneurs through various purpose lenders for
SMEs and businesses
e) Intergovernmental trade agreements that favour local enterprises
f) Import waivers
g) Business incubation services for start-ups.
h) Common manufacturing facilities for MSME`s to process their products.
i) Apprenticeship training scheme through The National Industrial Training
Authority (NITA).
j) Research Scientists services to assist MSME’s in product development
services for SMES to make competitive quality range that is acceptable in the
local, regional and international markets.
k) Practical and industry related training courses that are custom made and
focused on the needs of MSMEs.

i. Provision of infrastructural facilities

ii. Availability of credit facilities
iii. Information and marketing support
iv. Pricing policy
v. Tax policy
vi. Legal control
vii. Political climate
viii. Technology assistance
Training and consultancy assistance
Topic APPROACHES TO THE STUDY OF ENTREPRENEURSHIP
Sub 1. Economic approach
Topics 2. The entrepreneur as an organizer
3. The entrepreneur as an innovator
4. The entrepreneur as a risk-bearer
5. The invisible hand
6. Psychological approach
7. Characteristics of entrepreneurs
8. Need for achievement
9. Lotus of control
10. Sociological approach
11. Negative displacement
a) Personal background
b) Positive pull
c) Enabling environment

Q1 It has been expressed that business environment is unpredictable, extrapolative and turbulent,
Analyse 5 ways in which an entrepreneurial.
Leverage New Technology
Invest in Deeper Customer Relationships
Create a Corporate Culture that Attracts the Best Talent
Define Niches that are Under-serviced
Establish Your Unique Value Proposition e.g. pricing, service levels, quality,
brand recognition, etc.
Reward Behaviours that Support Corporate Mission and Value

Q2 An entrepreneur is expected to work within the taxonomy of entrepreneur theory. Review the
difficulties that the business ventures may experience when they opt to operate outside the
limits.

Herbert and Link (1988) developed a useful taxonomy, which identifies 12 themes which
clearly and distinctly classifies and differentiates types of entrepreneurial activity by
their change magnitude, organization location, the role of individuals leading the
change and the nature of the change

Functions/Roles REVERSE
1. Supplies financial capital Cash Flow Management

2. Assumes the risk associated with

uncertainty
3. An innovator
4. A decision-maker
5. A leader
6. A manager or superintendent
7. An organizer and co-ordinator
8. The owner of an enterprise
9. An employer of factors of Unskilled and incompetent
production employees
10.A contractor
11.An arbitrageur
 12. An allocator of resources
Q3 Kenya has many ethnic groups with different cultures and diverse beliefs. This status
has also been exemplified further by the entry of County Governments. By use of
examples demonstrate FIVE ways in which the cultural diversity phenomenon can be
employed to promote entrepreneurship development in Kenya (10 marks)
- Exchange of ideas/knowledge e.g. fish farming in Central Kenya
- Healthy competition during cultural events
- Skill complementarities – blending of skills between different cultural groups to increase
efficiency and competitive advantage.
- Increased opportunities especially in sectors where technology and knowledge play
more important role.
- Ready market
- cultural diversity and knowledge transfer support new ideas and productivity.
- generates new entrepreneurial ideas and replaces inefficient entrepreneurial initiatives
by productive ones.

Q4 Discuss the entrepreneurial strategies that the management may adopt to minimize
disagreements in the society (10 marks) Nov 2018
- Avoiding
- Accommodating
- Competing
- Compromising
- Collaborating
- Clear lines of communication
- Policies
- Encourage innovation/creativity

Q5 Keshi Limited emerged overall winner in the entrepreneurship awards for 2018.
Formulate appropriate criteria that may have guided the judges to arrive at this
decision (10 marks) Nov 2019.

i. Demonstration of an innovative approach to the way in which the enterprise

operates
ii. Demonstration of how the enterprise meet its own primary objectives.
iii. Does the enterprise make a positive impact on society/communities and/or
environment?
iv. Does the enterprise make a positive impact on the lives of individuals,
particularly vulnerable and/ or disadvantaged individuals?
v. Do their Projects that have the potential for future development growth and
sustainability?

Q6 Examine the measures that the firm may have taken to protect trade secrets (10 marks)
Nov 2020.
i. Restricting access to confidential information physically and electronically to only
those individuals that need to know the information;
ii. Marking documents that they constitute confidential information;
iii. Making use of non-disclosure and confidentiality agreements;
iv. Maintaining information with password protection;
v. Disposing confidential information by shredding or other means designed to destroy
the information;
vi. Conducting exit interviews with departing employees to ensure the return of all
confidential information in the employee’s possession and to emphasise confidential
 obligations;
vii. Ensuring that there are restraint of trade provisions in the employment contracts;
viii. Establishing due diligence and on-going third party management procedures;
ix. Instituting and information protection team;
x. Make trade secret protection a priority

Q7 Evaluate ways in which the management may have applied the motivation theory to
motivate employees (10 marks) Nov 2020.
a. Understand the needs and wants of individuals
b. Set realistic and attainable goals
c. Provide support when one needs it
d. Monitor production/ outcomes
e. Rewarding performance
f. Clear and fair reward system

Q8 Women entrepreneurs in Kenya are likely to encounter certain challenges that prevent
them from realizing their full potential. Examine these challenges (10 marks) Nov 2020.
a. Access to funds
b. Inferiority complex
c. Breaks away from work e.g maternity leave
d. Government policies
e. Cultures and beliefs

Q9 Explain the reasons that make it difficult for small scale entrepreneurs to raise debt
finance in Kenya (10 marks) Nov 2020.
a) Unable to communicate the mission – Often small scale entrepreneurs fail to
deliver their intentions to the Investor. Being an external party, the Investor
expects the business to decipher the vision.
b) Generally, investors prefer to invest in businesses with lower risks. The nature of
small scale entrepreneurs makes them a high-risk investment for investors.
c) Bad business model dispels financiers. Investors look for a business that can
generate wealth in the long run. If the business model of the small scale
entrepreneurs is fundamentally flawed, it will not generate any finance.
d) Absence or lack of collateral. For small scale entrepreneurs, with no assets to
provide as security, it may be difficult to obtain this finance. Owners of the
business may also not be willing to provide personal guarantees to the bank
further making it difficult to obtain finance.
e) Due to the great number of businesses competing for external finance, small scale
entrepreneurs find it difficult to compete especially without resources.
f) Small scale entrepreneurs in their initial years cannot display the financial
position and performance that is needed to attract potential investors. Even when
obtaining debt finance, financial institutions such as banks provide loans to
businesses with a strong financial position.
g) Small scale entrepreneurs that have no prior history of business or
creditworthiness will find it difficult to meet the criteria as specified.
h) Small scale entrepreneurs are perceived to be too risky to lend to and if and when
they get funded, the have to contend with high cost of the capital facility making
many to shun debt financing.

Q10 Some entrepreneurs face challenges related to cultural diversity in running their
businesses. Outline ways in which they may address these challenges (10 marks) Nov
2020.
 a) Formulate and implement a diversity management policy to guide organizational
efforts towards a cultural diverse workplace.
b) Commit to recruiting, hiring, training, developing and retaining qualified people
irrespective of race, ethnicity, gender, nationality, age, marital status and
disability.
c) Initiate DEI training to foster understanding and support for diversity
management.
d) Create employee affinity groups to promote the interests of cultural groups.

Topic ENTEPRENEURIAL MOTIVATION

Sub 1) Types of motivation
Topics 2) Internal and external motivating
3) Self-assessment and enhancing one’s motivation one’s motivation

Q1 Use 5 reasons to analyse the sustenance of his entrepreneurial spirit.

Q2 A motivated person engages in an entrepreneurship activity more vigorously and efficiently

than demotivated one. Discuss 5 outstanding drives behind this action.
Internal Drives:
 Strong desire to do something independently in life or self-reliance
 Need for power
 Need for recognition
 Need for security
 Self-actualization needs
 Technical knowledge and manufacturing experience
 Business experience in the same or related line

External Drives
 Political climate
 Technical technology assistance
 Training/consultancy assistance
 Profit margin
 Heavy demand.
 Infrastructure
 Credit facilities e.g. Machinery on hire purchasec
 Information support
 Pricing policy and unstable units available at a cheap price
 Tax policy
 Legal controls

Q3 Identify FIVE entrepreneurial motivations necessary to take the company to the next
level (10 marks) June 2018.

i. Making a difference in the world..

ii. Find personal meaning from building a business.
iii. Satisfaction of doing something great..”
iv. Personal growth and accomplishment.
 v. Seeing the real value of one’s beliefs.."
vi. Helping others achieve their goals

Q4 Reels Enterprises is currently experiencing low profitability levels. The Business

Development Manager has expressed the need for staff motivation to address the
problem. Specify to the organization FIVE forms of financial and non-financial
motivators that it should consider. June 2018.
A. Recognition
B. Incentives
C. Bonuses
D. Promotions
E. Enhanced working environment

Q5 Examine ways in which the company managed to make significant sales using high-
technology oriented products (10 marks) June 2019.

Q6 Employees of Simplified Commercial Bank do not exhibit entrepreneurial skills.

Identify the reasons that may have contributed to this state of affairs. (10 marks) June
2019.
a) failure of tolerance,
b) Poor communication
c) Inadequate work discretion,
d) Lack of reward and recognition programs
e) Bad Hire
f) Unconducive Culture
Q7 There are many self-assessment tests available to entrepreneurs for the evaluation of
their entrepreneurial potential. Evaluate the challenges that most entrepreneurs
experience when using the focus groups as a self-assessment method (10 marks)
 Introverts lose their voice during focus groups and therefore their valuable contributions
may be missed.
 More Expensive to Execute Than Surveys
 Participants Can't Voice Their Opinion Freely
 Hard to Get Honest Opinions For Sensitive Topics
 Results Are Biased.

Methods of generating Business Ideas

Method Advantages Disadvantages

Focus Groups:
A moderator leads a group of
people through an open, in-depth
discussion rather than simply asking
questions to solicit participant
response.
Brain storming:
Allows people to be stimulated to
greater creativity by meeting with
others and participating in
organized group experiences.
1.No criticism is allowed
2.Freewheeling is encouraged.
3.Quantity of ideas is desired
4.Combinations and improvements
of ideas are encouraged.
Excellent method for initially As above
screening ideas and concepts.
Results can be analyzed more
quantitatively.
Useful method for generating new
product ideas.
1.It is possible to refine the ideas of 1.Some dump ideas may also be
different people for a better solution to accepted for evaluation.
the problem. 2.Overlapping of ideas is
possible.
2.It allows people to use maximum 3.Some emotional and
creativity to find solutions. environmental mental blocks
3.It increase harmony among people in
are possible e.g. unease with
reaching to a feasible solution.
4.The person participating may not be chaos, fear of criticism
highly qualified or a consultant but may
find a solution.
5.This method is easy to understand
and not a complicated technique.
6.Generated ideas and solutions may
 be used elsewhere also

Problem Inventory Better Control of High-Priority

Inventory
analysis:
it is a method for obtaining new
ideas and solutions by focusing on
problems.
SWOT Analysis:
The objective of doing a SWOT
analysis is to identify the gaps that
exist between the current state and
the desired future state and to
inform the strategy to be adopted.
 understand your business
better
 address weaknesses
 deter threats
 capitalise on opportunities
 take advantage of your
strengths
 develop business goals and
strategies for achieving
them.
 doesn't prioritise issues
 doesn't provide solutions or offer
alternative decisions
 can generate too many ideas but
not help you choose which one is
best
 can produce a lot of information,
but not all of it is useful

Q8 Individuals who intent to start their own enterprises are required to carry out a self-
assessment for entrepreneurial potential. Formulate a list of key traits that may guide
this assessment (10 marks) June 2018
 Need for power
 Need for achievement
 Need for autonomy
 Openness
 Perseverance
 Persistence
 Risk-taking
 Vigilance

Q9 Illustrate the factors that might motivate intrapreneurship in Southern Dairy Co-
operative Society Limited so as to improve efficiency (10 marks) November 2018

 Political climate
 Technical technology assistance
 Training/consultancy assistance
 Profit margin
 Heavy demand.
 Infrastructure
 Credit facilities e.g. Machinery on hire purchase
 Information support
 Pricing policy and unstable units available at a cheap price
 Tax policy

i. Making a difference in the world.

ii. Find personal meaning from building a business.
iii. Satisfaction of doing something great.”
iv. Personal growth and accomplishment.
v. Seeing the real value of one’s beliefs.."
vi. Helping others achieve their goals

1. Entrepreneurs can be classified on the various basis of economic development.

Discuss the parameters that can be used to classify innovative entrepreneurs. Nov
 2018
2. Explain the various entrepreneurial strategies that were adopted by the company to
enhance its growth (10 marks) June 2019
3. Examine ways in which the company managed to make significant sales using high-
technology oriented products (10 marks) June 2019

Topic ENTREPRENEUR OPPORTUNITIES

Sub 1) Meaning of a business opportunity

Topics 2) Distinction between business ideas and business opportunities
3) Generating business ideas
4) Applying SWOT analysis to evaluate business ideas for potential as business
opportunities
5) Potential as business opportunities
6) Selecting the business opportunity to create into a business
Q1 A small scale entrepreneur has decided to start up a hand weaving business in
Bungoma. Explain the contents of the marketing plan that she should prepare for the
new venture (10 marks.
a. Excecutive summary: Presents a brief overview of the proposed plan
b. Current marketing situation: Presents relevant background data on the market,
product, competition and distribution
c. SWOT Analysis: Identifies the main threats and opportunities that may highly
impact the product
d. Objectives: Defines the company’s objectives for the product in sales, market
share and profit and the issues that might affect these objectives
e. Marketing strategy: Outlines the marketing strategy that will be used to achieve
the set objectives
f. Action plan: Specifies what will be done, who will do it, how much it will cost
and what will be done.
F. Budget :Forecasts the expected financial outcomes from the plan
g. Controls : Indicates how the progress of the plan will be monitored

Q2 Explain the benefits of internet as a source of business ideas (10 marks) June 2019
a. Allows people to learn information about any topic. It contains endless knowledge
and information
b. Address mapping. One is able to find businesses in a particular area by filtering
relevant searches to your area
c. Availability. Internet is always available all over the world and is not limited.
d. Funding. With the help of internet connection, one can source for funds from
potential investors to fund their projects or ideas
 Access to a global workforce. Internet offers people the opportunity to have a virtual
office that allows people to work from home
Q3 The Global Sustainable Blue Economy Conference (SBEC) held in November 2018 in
Nairobi emphasized the need to tap vast ocean resources which present a huge business
opportunity likely to boost economic growth. Formulate business opportunities that are
likely to emerge from the exploitation of ocean resources June 2019

According to the World Bank, the blue economy is the "sustainable use of ocean resources
for economic growth, improved livelihoods, and jobs while preserving the health of ocean
ecosystem."
a. Renewable Marine (off-shore) Energy. Sustainable marine energy can play a vital
role in economic development. While offshore wind energy is becoming more
common, while other forms of marine energy extraction are still experimental, and in
most cases have not yet been developed on a commercial scale. These other forms
include wave and tidal energy and ocean thermal energy conversion.

b. Fisheries products - fish and fish products supply a significant portion of the daily
intake of animal protein in many developing countries. (FAO 2016).
c. Coastal and Maritime Tourism - Tourism can therefore be an important source of
foreign exchange and is tied to the social, economic, and environmental well-being of
many countries. Maritime or ocean related tourism, as well as coastal tourism, are
vital sectors of the economy in many countries, including in SIDS and coastal LDCs.
Coastal and ocean-related tourism comes in many forms and includes dive tourism,
maritime archaeology, surfing, cruises, ecotourism, and recreational fishing
operations.
d. Maritime transport – Growth in seaborne trade will give rise to transport demand and
maritime transport industries (shipbuilding, scrapping, registration, seafaring, port
operations.

e. Aquaculture - invigorating this sector can contribute to food security as well as social
and economic inclusion for some of the poorest people in the world. Locally,
aquaculture can help lessen the need for fish imports and increase employment, as
well as contribute to food security and meet nutrition needs. Examples of
environmentally sustainable aquaculture include integrated multi-trophic aquaculture,
seaweed aquaculture, shellfish aquaculture, and well-planned fish rearing based on an
ecosystem approach.

f. Marine biological prospecting includes the discovery from the ocean environment of
novel genes and biological compounds that can lead to commercial development of
pharmaceuticals, enzymes, cosmetics, and other products. Capacity-building and
technology transfer relating to marine bioprospecting is likely to increase with the
ongoing implementation of the Nagoya Protocol to the Convention on Biological
Diversity (CBD), under which researchers expecting to commercialize natural
products are required to share benefits with the host country.

a. Desalination (freshwater generation) -Water managers and planners are

increasingly looking at desalination— the conversion of seawater or brackish
groundwater to freshwater—as a technical, supply-side solution that can meet
current water demands and buffer against the negative impacts of climate
change on water resources.
Q4 Alions Limited intends to use brainstorming as a method of generating new business
ideas. Outline the rules that should be observed to enhance the effectiveness of this
method (10 marks) Nov 2020

Brainstorming is a group creativity technique by which efforts are made to find a

conclusion for a specific problem by gathering a list of ideas spontaneously contributed
by its members. When using brainstorming, these four rules should be followed:
a) No criticism is allowed by anyone in the group – no negative comments.
b) Freewheeling is encouraged – the wilder the idea, the better.
c) Quantity of ideas is desired – the greater the number of ideas, the greater the
likelihood of the emergence of useful ideas.
d) Combinations and improvements of ideas are encouraged: ideas of others can be
used to produce still another new idea
e) The brainstorming session should be fun, with no one dominating or inhibiting
the discussion.

Q5 Mr. Mkalla is in the processing of relocating his business from Cheza to Danga City. Evaluate
ways in which SWOT analysis would have assisted him in the choice of his new location.

Q6 Planning for the future of the Southern Dairy Co-operative Society Limited is essential.
Conduct a strength, Weaknesses, Opportunities and Threats (SWOT) analysis for the
society (10 marks) Nov 2018

Q7 As a HRM Consultant defend the choice of potential business venture in HRM consultancy.
I. It does not require excessive investment
II. It is easy to manage
 III. It offers good return on investment
IV. It has scope for growth, expansion and diversification
V. It requires operational skills which are available and/or can be achieved
with minimal training.
VI. It involves minimum risks
VII. It is compatible with the owner’s goals and interests
VIII. It has a short gestation (break-even point) period
IX. It has a readily available market
X. It has an adequate supply of inputs
XI. It is easy to exit (dissolve) if necessary
XII. It does not require frequent and extensive changes in technology.

Q8 Identification of a business opportunity and its timely adaptation to suit the actual
market needs is key to the success of a business venture. Evaluate the factors that
should be considered for a viable business opportunity (10 marks) Nov 2018.

i. Market Size. One of the most important factors when evaluating a business
opportunity is market size.
ii. Relationships - If you know someone who is technically minded, that can help
you with certain aspects of the opportunity. What are your relationships with
potential investors or customers?
iii. Ability to Manage Cash Flow.
iv. Management Skillsets.
v. Passion and Persistence.

Q9 As part of the response to the challenges of youth unemployment in Kenya, the

government recently launched the “Mbele Na Biz” business plan competition. Specify
the benefits that the youth are likely to reap from participating in the competition (10
marks) Nov 2019.
i. Prize money
ii. Expert advice
iii. Innovation
iv. Starting point for future business plans
v. Exposure to sponsors

Q10 Organizations recognize the importance of entrepreneurial activities for survival and
sustainability. Determine the organizational structure constraints to entrepreneurship.
(10 marks) Nov 2019.
a. Complexity
The number of management levels that exist in an organization and the geographical
distribution of the departments
b. Formalization
Describes the extent to which rules and regulations are applied in the organization
c. Size of the company
If you are running a sole proprietorship with a small number of employees, you do
noty need a very well defined structure
d. Organizational structure
 e. Centralization

Q11 Examine the strategies through which a firm may pursue internationalization (10
marks. Nov 2020.

a. Direct exporting. This is a strategy that allows the firm to sell its products directly
into any areas within the international market.
b. Licensing. This is a strategy that gives an oversees company the right to use its
product within a certain period of time. This is mostly in patents.
c. Franchising
d. Mergers and acquisitions
e. Take over

Q12 Examine the factors than an entrepreneur should consider when screening business
ideas (10 marks) Nov 2020.
a) Has a readily available market
b) Compatible with owner’s goals and interests
c) Has adequate supply of inputs
d) It involves minimum risks
e) Requires available operational skills or skills that can be achieved with minimal
training
f) It is easy to manage
g) Does not require huge investments
h) Offers good return on investment
i) Has scope for growth, expansion and diversification

 A Business Idea
 Knowledge or Expertise
 Market or Demand
 Start-up Costs
 Capital and Finance
 Competition
 Location
 Staff
 Technology

Q13 Many business start-up experience cash-flow problems in their first few years. Outline
the indicators of such problems. (10 marks) Nov 2020

a) Receivables or invoices are piling up because customers are not paying up in

time as expected. When not enough money comes in, cash flow problems will
be experienced.
a) Inability to pay suppliers on time or at all.
b) Delayed or unpaid wages or salaries due to lack of liquidity.
c) Inability to pay utility bills and fixed expenses due to lack of revenues.
d) When operating expenses are increasing beyond control. When business start-
ups are hit by a lot of increased expenses at once – say when rent, internet and
the cost of supplies all go up – cash flow problems may very well materialize.
e) When sales slowdown and there is limited revenue for various reasons, the
cash inflows become limited or dry up.
 f) Cash flow problems may also be looming when excessive short-term debt
build up especially where rapid growth of start-up is funded on debt or credit.

Topic Human Resource Management Consultancy

Sub 1. Nature and purpose of consultancy

Topics 2. Types of client systems
3. Qualities of a consultant
4. Consultancy relationships
5. Obligation and duties of consultant
6. Consulting skills
7. Models of consultancy
8. Standards and ethical issues
9. Phases in consulting
10. Consulting in various aspects of HRM
11. Developing a consultancy proposal
12. Managing a consulting organization
Q1 Assume you work as a consultant at Pieta Management Consultants for Beam
Technologies Limited Case study June 2018.

Q2 Research and business consultancy services are aimed at addressing certain gaps in
organizations. Distinguish between research and consultancy. (10 marks) June 2019.

Q3 Conduct problem diagnosis for the company (5 marks)

i. Diagnosing purposes and problems
ii. Defining necessary facts
iii. Organizing and tabulation of data
iv. Sources or ways of obtaining data
v. Data gathering
vi. Feedback to the client

Q4 Identify FIVE ethical behaviors that you are expected to display (5 marks)
Responsibility - The consultant should maintain highest standards of service and his finding
should not be misleading.
 Competent - should offer services that meet professional standards.
Being objective and impartial - someone to give independent opinion even if it differs from
what the client would like to hear.
Impartiality- must not get involved in the client's organization internal politics.
Moral and legal standards - the consultant should show sensible regards for the social
codes and moral implications of the community in which he or she works.
Avoid misrepresentation - means not giving correct information on the consulting firm.
(Consultants should not misrepresent their firms).
Confidentiality- Without confidentiality there could be no consulting. The information
received should be treated in confidence to the appropriate authority.

Q5 The contribution of the human resource function is evident in the company’s success.
Support this evidence with relevant examples from the case study. June 2019

Q6 Examine the challenges that the company may experience as a result of embracing
emerging technologies (10 marks) June 2019.
Increased dependency on technology.
often large costs involved with using the latest technology (especially for
small businesses)
increased risk of job cuts.
closure of high street stores in favour of online business.
security risk in relation to data and fraud
Q7 As an organization Development Consultant, propose the human resource interventions
you would recommend in order to improve performance at Beams Technologies (10
marks) Case study June 2018.

Q8 As a Human Resource consultant, you have been invited by Mobizz Holdings Limited
to give an inception report for a training needs exercise. Illustrate the key contents of
the report (10marks) June 2018.
The inception report ensures that the evaluation team (leader and members) has an in-depth
understanding of the ToR of the evaluation. It translates the ToR into an operational plan
according to which the evaluation will be carried out. The inception report is a working
document that forms the agreement between the evaluation manager and the evaluation team
on the operational plan for the evaluation.
I. Introduction
II. Subject of the evaluation
III. Evaluation approach, methodology and ethical considerations

IV. Issues to be agreed and information required

Q9 A good consultancy proposal for job evaluation should be brief and must make an
impact. As a Human Resource Consultant, evaluate the elements of such a proposal (10
marks) June 2018
whole job ranking schemes, through
job classification,
points evaluation systems, and
factor comparison methods.

Q10 Implementing a human resource project in an organization requires critical skills in

project planning. Explain the nature of such skills. (10 marks) Nov 2018.
Analytical Skills - That enables new opportunities and possibilities to be
identified on behalf of the client organization.
Project management skills - That enables those ideas to be delivered to the client
 organization
Relationship Building Skills - These sell ideas and provide leadership that takes
the client team forward.
Listening Skills.
Communication Skills
Motivational Skills
Decision-making Skills
Human relations / Interpersonal Skills
Time management skills

Q11 Examine the innovative human resource management practices that Southern Dairy
Co-operative Society Limited should embrace to achieve economic viability (10
marks)Nov 2018
 Selective hiring: Hiring the right people.
 Self-managed and effective teams.
 Fair and performance-based compensation.
 Training in relevant skills.
 Making information easily accessible to those who need it
 Employee feedback mechanisms
 Investing in employee health
 Flexible working schedules

Q12 Freedom Company Limited intends to build on the managerial skills for its line
managers as startup entrepreneurs and the management has invited you to conduct a
research aimed at gaining and understanding to the problem. Outline the steps that you
would undertake to conduct the exercise. (10 marks) Nov 2018

I. Entry
II. Diagnosis
III. Action planning
IV. Implementation Not sure
V. Termination
VI. Follow up

Q13 A small firm with 25 employees intends to engage the services of a renowned consultant
with experience on large firms. Examine FIVE typical assumptions that the consultant
is likely to make (10 marks) Nov 2018
I. Assume that the Client is wrong, doesn’t know, or is faulty
II. Assume that he know the answer
III. Assume that Client understands him
IV. Assume That Logic will prevail
V. Assume his Value is obvious
VI. Assume his Values are the best
VII. That adequate resources will be available
VIII. That there will be support from top leadership

Q14 Consulting assignment require an understanding of each phase of consultancy in

planning activities within a time frame available to the consultant. Explain the
requirements of the contact phase within the consultant-client framework. Nov 2018

- First meeting
 - Preliminary problem diagnosis
- Proposal to the client

Q15 Extract Manufacturers Limited recently engaged the services of a consultant who made
several recommendations aimed at making a turnaround in the company’s
performance. Examine the challenges that the company is likely to encounter when
implementing the consultant’s recommendation. (10 marks) June 2019
 Project complexity
 Additional costs/resources
 New competition
 Lack to support from top leadership

Q16 You have proposed to start a HRM Consultancy firm at the end of your studies. Assess the
economic approaches your Consultancy firm is likely to use to give it an entrepreneurial
outlook.
 Create new technologies
 Develop products or processes that open new markets
 Bring key value-generating contribution to the economic process – pay taxes
 Job creation
 Regional integration
 Spark-up innovation and creativity

Q17 Recently, the consulting firm you work for received a letter from Bendera Enterprises
requesting it to assist in examining and reorganizing its wages and salary system. Use
examples to analyse the dimensions of expected working relationship.
A trusted advisor relationship is one that goes beyond the transactional. The client is clear about
their expectations and the consultant demonstrates that, if necessary, they will go beyond what was
agreed to contribute as a partner to the client.

Dimensions fall within four broad categories:

I. those relating to the client;
II. those relating to the consultant;
III. dimensions associated with contract details;
IV. dimensions focused on relationship building.

Q18 The management of Stars Digital Limited intends to adopt a lean organizational
structure. Defend the decision (10 marks) June 2019.
A lean organizational structure is a structure that is designed to create more customer value using
fewer resources than a traditional organizational structure. ... Members of lean organizations also
strive to continuously improve the organization and find ways to eliminate unnecessary waste in
the production process.
 Manage team / process complexity.
 More efficient business processes.
 Better management of changing priorities.
 Better project visibility at the team level.
 Increased team productivity.
 Reduced lead time.
 Increased team morale.
 Improved visibility to stakeholders.

Q19 Demonstrate the steps that are involved in personal selling as a promotional tool in
 consultancy (10 marks) June 2019.
I. Prospecting
II. pre-approach
III. approach
IV. presentation
V. meeting objections,
VI. closing the sale
VII. follow-up.

Q20 Propose suitable strategies that a company may put in place to encourage more women
into leadership positions (10 marks) June 2019

 Recruit Women Employees Actively.

 Provide Training Opportunities.
 Encourage Women-friendly Culture.
 Gender Equality through Legislations.
 Flexible work schedules
 Transparent and collaborative career mapping
 Offer unique family support.

i. Recruit Women Employees Actively

ii. Provide Training Opportunities
iii. Encourage Women-friendly Culture
a) Flexible Work Schedules
b) Equal Opportunity
c) An Effective Career Mapping for Women Employees
d) Provisions for Self-care
e) Provisions for Family Support
iv. Gender Equality through Legislations

Q21 HCM Bank has contracted a human resource consultant to design a project proposal
for the Bank. Analyze the key components that may be included in the proposal (10
marks)Nov 2019.

i. Cover page for introduction remarks

ii. Table of Contents.
iii. Abstract (also called Project Summary)
iv. Project Description (also called Narrative or Research Plan)
v. Budget Explanation (also called Budget Justification)
vi. Vita (also called Resume or Biographical Sketch)
vii. Other Support (also called Current and Pending Support)

Q22 The entry phase of consulting process is completed when the consultant and the client
conclude a contract. Prepare a checklist of items that should be covered in the contract
(10 marks) Nov 2019

Q23 Weka Weka recently contracted a consulting firm to address the problem of an acute shortage
of incompetent is facing, illustrate the approach your consultancy firm will use to remain
unbiased in the assessment but still portray the truth.

Q24 Your first HRM Consultancy assignment is to help formulate HRM Polies for manufacturing
organization. Discuss the criteria which guides you in the formulation of the policies.
Q24 As a practicing HRM consultant, use examples to explain the efforts your consultancy firm has
made to ensure its potential client are not only aware of it and its capabilities but also have a
good opinion of the firm.

Q25 Use examples to discuss the activities HRM consultants use to determine their readiness for a
career in the HRM Consultancy industry.

Q26 Assume you work as a consultant at Pieta Management Consultants for Beam
Technologies Limited

Q27 Conduct problem diagnosis for the company (5 marks)

Q28 Identify FIVE ethical behaviours that you are expected to display (5 marks)
A. Prudence
B. Integrity
C. Highly dependable
d. Honesty
e. Dignity and respect when dealing with customers

Q29 As a Human Resource consultant, you have been invited by Mobizz Holdings
Limited to give an inception report for a training needs exercise. Illustrate the key
contents of the report (10marks)
a. Responsibility. Who will be responsible for conducting the exercise
b. Nature of training needs
c. Sources of information. Where the training needs will be derived from
d. Stakeholders involved in the training needs exercise
e. Implementation, monitoring and review of trainings planned to take place

Q30 A good consultancy proposal for job evaluation should be brief and must make an
impact. As a Human Resource Consultant, evaluate the elements of such a proposal (10
marks)

Q31 Excel Mattresses Limited has invited you to undertake a workforce analysis. Justify the
use of questionnaire in data collection. (10 marks)
a. Cheap
b. Can cover a large group at the same time
c. Fast data collection method
d. Suitable for repetitive
e. Uniformity of data collected

Q32 In a consulting assignment, building a lasting relationship with the client organization
can yield dividends. Explain the benefits which may accrue to both the client and the
consultant in such a relationship (10 marks)
Change management
Enhanced learning and development
Identify and seize new opportunities
Solve management and business problem
Achieve organizational purpose and objectives

Q33 Implementing a human resource project in an organization requires critical skills in

 project planning. Explain the nature of such skills. (10 marks)
(a) Listening skills
(b) Motivation skills
(c) Time management skills
(d) Stress Management skills
(e) Counselling skills
(f) Negotiation skills
(g) Technical knowledge
(h) Project management skills
(i) Problem solving skills

Q34 You have been appointed as a human resource management consultant to review the
business model of a declining medium-sized enterprise. Discuss the benefits that may
accrue to the firm upon implementing the recommendations on the use of technical
innovation (10 marks.)
A. Ability to streamline processes with automation
B. Cost saving with remote working
C. Higher employee productivity and satisfaction
D. Ability to better serve employees
E. Opportunity to tap into non-local talent

Q35 A small firm with 25 employees intends to engage the services of a renowned consultant
with experience on large firms. Examine FIVE typical assumptions that the consultant
is likely to make (10 marks),
a. The consultant has to gather a deeper understanding of the problem
b. The consultant has the solutions that the client is looking for
c. The consultant will direct the client actions
d. The consultant might need to be around for a long time to sustain the solution

Q36 Consulting assignment require an understanding of each phase of consultancy in

planning activities within a time frame available to the consultant. Explain the
requirements of the contact phase within the consultant-client framework.
a. Discussion on what the client would like to achieve
b. Discussion on how the consultant might help
c. Clarification of their respective roles
d. Preparation of an assignment plan
e. Negotiation and agreement of a consulting contract

Q37 Extract Manufacturers Limited recently engaged the services of a consultant who made
several recommendations aimed at making a turnaround in the company’s
performance. Examine the challenges that the company is likely to encounter when
implementing the consultant’s recommendation. (10 marks)
a. Technical problems
b. Resistance of management and staff
c. Work hazards
d. Shortage of materials
e. Shortage of finance
f. Customer reaction

Q38 Research and business consultancy services are aimed at addressing certain gaps in
organizations. Distinguish between research and consultancy. (10 marks)
Research is creative and systematic work undertaken to increase the stock of knowledge. It
 involves the collection, organization, and analysis of information to increase understanding
of a topic or issue. On the other hand, consulting is the process of offering expert knowledge
or intervention to a problem affecting an individual, about business, a non-business
organization or a government.

39 HCM Bank has contracted a human resource consultant to design a project proposal
for the Bank. Analyze the key components that may be included in the proposal (10
marks)
a) Technical aspects section – This describes the consultant’s preliminary assessment of
the problem, the purpose for which the consultancy is to be pursued, the approach to
be taken, the work program to be followed.
b) Staffing section – This section provides the names and profiles of consultants’ staff
who will be executing the assignment. This section also includes the senior
consultants (partners or project managers) who will be responsible for guiding and
supervising the team working at the client’s organization.
c) Consultant background section – This section describes the experience and
competence of the consulting organization as it relates to the needs of the particular
client. There may be a general sub-section with standard information given to all
clients (including a section on ethical standards and professional practice adhered to
by the consultant.
d) There may also be a sub-section referring to similar work done and providing
evidence that the consultant will be the right partner to choose. References
concerning former clients will be used only with the client’s prior agreement.
e) Financial and other terms section – This indicates the cost of the services. It also
provides the provision for cost increases and contingencies. It also states the schedule
and other indications for paying fees and reimbursing expenses and settling all
commitment.
f) The Annexes – This contains the supporting documents and formulas to be used by
the consultant in his assignment work.
g) The terms of reference – These terms of reference are the initial statement of the
work to be undertaken by the consult

Q40 The entry phase of consulting process is completed when the consultant and the client
conclude a contract. Prepare a checklist of items that should be covered in the contract
(10 marks)
What to cover in a contract – checklist
a) Contracting parties (the consultant and the client)
b) Scope of the assignment: objectives, results, description of work, starting date,
timetable, volume of work) Work outputs, including reports (documentation and
reports to be handed over to the client)
c) Consultant and client inputs (expert and staff time and other inputs)
d) Fees and expenses (fees to be billed, expenses reimbursed to the consultant)
e) Billing and payment procedure
f) Professional responsibilities (consultant’s standard of care, avoiding conflict of
interest, and other aspects as appropriate.
g) Representations (by the consultant)
h) Handling of confidential information
i) Protection of intellectual property and copyright in consultant’s work product
j) Liability (the consultant’s liability for damages caused to the client, limitation of
liability
k) Use of subcontractors (by the consultant)
 l) Termination or revision (when and how to be suggested by either party)
m) Dispute resolution (resolution of disputes in court or through an alternative
n) mechanism such as arbitration)
o) Signatures and dates

Q41 Consultancy has evolved over time due to new innovations. Predict the future outlook
of the consultancy service. (10 marks)
There is an increasing demand for consultancy services of varying nature. The demand for
information and solutions to emerging challenges presents an opportunity for new …..

Q42 Explain the factors that the management may have considered when developing the
selection criteria for the consultant (10 marks)
a) Track record. The professional skills and experience need to be undeniable and
proven
b) He must be good at counselling - he must involve the client through the problem
solving session and instil confidence in the client.
c) Must be trusted: this is because a consultant can get access to the client confidential
d) information.
e) Objective- he/she should be able to give impartial opinion
f) Open-minded: should be ready to learn from his errors and accept constructive
criticism.
g) Must be analytical- consulting process involves gathering data relating to finance
marketing
h) He should be conversant with analytical tools so that he can be able to interpret the
data.
i) Time conscious- so as to meet deadline expected
j) Must have interpersonal relations that is the ability to understand and work with other
people.
k) Must have ability to communicate and persuade i.e. ability to listen effectively and
actively and also good in oral and written communications.
l) Intellectual and emotionally mature so that he can be able to give advice that is
rational
m) Should have ability to tolerate stress and frustrations, and ability to have self-control
in all situations, ability to be flexible and to adjust.
n) Personal drive and initiative-one who can be able to do things on his own without
having to be guided.
o) Ethics and integrity-he should be extremely honest
p) Genuine desire to help others achieve their own objectives
q) Physical and mentally healthy- ability to tolerate specific working and living
conditions.

Q43 Outline the activities involved at the entry stage of the consultancy process (10 marks)
In the entry phase the consultant starts working with a client. This phase includes their;
a) first contacts,
b) discussions on what the client would like to achieve or change in his or her
organization and
c) how the consultant might help,
d) the clarification of their respective roles,
e) the preparation of an assignment plan based on preliminary problem analysis,
f) and the negotiation and agreement of a consulting contract.

Q44 Consultancy has evolved over time due to new innovations. Predict the future outlook
 of the consultancy service. (10 marks) Nov 2019

Q45 Interview is among the most widely used techniques of data gathering. Identify the
principles that govern an effective interview (10 marks) Nov 2019.
An interview in qualitative research is a conversation where questions are asked to elicit
information. The interviewer is usually a professional or paid researcher, sometimes trained,
who poses questions to the interviewee, in an alternating series of usually brief questions and
answers.

a) Listening: Active listening is a technique which may help the interviewer in increasing
the length an d depth of interviewees’ responses.
b) Ask questions (to follow up and to clarify): While an interviewer generally enters each
interview with a predetermined, standardized set of questions, it is important that they
also ask follow-up questions throughout the process.
c) Be respectful of boundaries: It is essential that while the participant is being interviewed
they are being encouraged to explore their experiences in a manner that is sensitive and
respectful.
d) Don't interrupt: Participants should feel comfortable and respected throughout the entire
interview—thus interviewers should avoid interrupting participants whenever possible.
e) Make the participant feel comfortable: Interviewing proposes an unusual dynamic in that
it often requires the participant to divulge personal or emotional information in the
presence of a complete stranger.

Diversity, equality and inclusion

1. Integrate DEI strategies for building a diverse workforce through recruitment, development,
leadership assessment and succession, and total rewards.
2. Ensure management and leadership create and empower a diverse organizational
environment. One that is respectful and inclusive and grants each employee an equal
opportunity to learn, grow and contribute to the IRC.
3. Research and advice on diversity, equality and inclusion issues from an HR lens and create
programs, training and organizational cultural values around them.
4. Identify external HR Diversity trends and recognize standard practices which will increase
diversity among the workforce for current and future employees.
5. Ensure a safe workplace is established where every staff member is welcomed, treated
equally and respected irrespective of their individual characteristics.