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ASSIGNMENT MEMORANDUM

SUBJECT : ENTREPRENEURSHIP (ENT)

ENTREPRENEURSHIP (ENT001)

ASSIGNMENT : 1ST SEMESTER 2013

Answer ALL the questions

References are to the prescribed textbook: Petty, J.W., Palich, L.E., Hoy, F. and
Longenecker, J.G., 2012. Small business Management: An Entrepreneurial
Emphasis. 16th ed. South Western, Cengage Learning.

QUESTION 1 [30]

(Petty et al., 2012, Chapter 3, pp.77-80)

The student should identify and present suggestions relevant to the case study in
terms of the following ten innovation suggestions:

1. When it comes to ideas, Sarah should borrow heavily from existing products
and services or even from other industries.
2. Sarah could combine two businesses into one to create a new market
opening.
3. Begin with a problem in mind, that Sarah could fix or a ‘pain’ she can relieve.
4. Sarah should recognise a hot/popular trend that she can develop.
5. Sarah could study an existing product/service and explore ways to improve its
function.
6. Sarah should think of possibilities that would streamline a customer’s activities
7. Sarah could think of ways to adapt a product/service to meet customer needs
in a different way.
8. Sarah should consider/imagine how the market for a product/service could be
expanded.
9. Sarah should study a product/service to see if she can make it ‘green’.
10. Sarah should keep an eye on new technologies.

(1 mark to identify each suggestion and 2 marks to explain each suggestion

correctly in relation to the case study = 10 x 3 = 30 marks in total)

© IMM Graduate School of Marketing

Marking Memorandum: 1st Semester 2013 ENT / ENT001
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QUESTION 2 [30]

(Petty et al., 2012, Chapter 6, pp.170-179; Chapter 8, pp.236-238; Chapter 2,

pp.39-45; Chapter 9, pp.263-273)

2.1 Advantages and disadvantages of a partnership

Advantages: (5)
- Sharing work load
- Sharing emotional burden
- Procuring executive talent not otherwise affordable
- Sharing financial burden
- Companionship.

Disadvantages: (5)
- Interpersonal conflicts
- Dissatisfaction with partner
- Absence of one clear leader
- Dilution of equity
- Frustration of not being able to call one’s own shots.
(One mark each = 10 marks)

2.2 Location plan

- Key factors in determining a good location (5)
o Customer accessibility
o Business environment conditions
o Site availability and costs
o Resource availability
o Personal preference.
- Challenges in designing physical facilities and challenges equipping
physical facilities (3)
o Manufacturing equipment
o Retailing equipment
o Office equipment.
- Business image (2).
(Marks as allocated = 10 marks)

2.3 Interest of stakeholder groups

- Owners – Sarah
- Customers – people buying cupboards, etc., for kitchens, bathrooms,
etc.
- Employees – Lucky and factory employees
- Community – people in Soweto where the factory is or Sandton where
potential clients are.
- Government – SA government.
(One mark for each stakeholder identified and one mark for MB
related example)

© IMM Graduate School of Marketing

Marking Memorandum: 1st Semester 2013 ENT / ENT001
 Page 3 of 3

QUESTION 3 [10]

(Petty et al., 2012, Chapter 1, pp.10-16)

The student should identify and explain the following five rewards for
entrepreneurship:
 Develop financial wealth – build a profitable business
 Personal satisfaction – enjoyment of a satisfying way of life
 Independence/being your own boss – power to make your own business
decisions
 Personal fulfilment – making a contribution to the community/economy
 Freedom/escape a bad situation – escape from a bad situation such as a
current job or financial stress, etc.
(2 marks for each principle identified and explained = 5 x 2 = 10)

QUESTION 4 [20]

Framework of issues that could be discussed:

1. Family business (See Petty et al., 2012, Chapter 5, pp.134-156)

- Definition
- Advantages and disadvantages of a family business
- Family members’ commitment
- Family roles and relationships
- Succession:
- Pre-business involvement
- Education and personal development
- Proof of competence
- Formal start in the business
- Declaration of succession.

2. Franchising (See Petty et al., 2012, Chapter 4, pp.105-121)

- Definition/what is franchising?
- Four main types/options of franchises:
- Product and trade name
- Business format
- Master licensee
- Piggyback.
- Limitations:
- Franchise costs
- Restrictions on business operations
- Loss of independence
- Lack of franchisor support
- Advantages and disadvantages of franchising.
(10 marks for each opportunity discussed = 20)

PRESENTATION [10]

© IMM Graduate School of Marketing

Marking Memorandum: 1st Semester 2013 ENT / ENT001