ENROLLMENT NUMBER

Amity University Haryana

BBA (G) / BBA – 3C / BBA (B&F)
Fifth Semester End Term Examination – December, 2016
Course Title - Entrepreneurship Development

Course Code: MGT2502/MBF2503

Exam Dept. Ref.: YGT675
Time: 3 Hours Maximum Marks: 70
Note: This question paper has three sections : Section A, Section B and Section C.
Attempt (i) Any FIVE from Sec.-A.
(ii) Any TWO from Sec.-B.
(iii) Section-C is compulsory.

Section –A (any five) 30 Marks

(Each question carries 6 marks)

1. Define the term ‘idea’. What are the factors of correlation between idea and entrepreneurship?
2. Why some business plans fail? What are the risk assessment methodologies adopted by first
generation entrepreneurs?
3. What is meant by outsourcing? Name at least five services which could be outsourced. Also state the
benefits of Business Process Outsourcing.
4. Differentiate between equity shares and preference shares.
5. What is entrepreneurship development. Explain Entrepreneur v/s Manager?
6. Write short notes on the following:
(a) Profit maximisation and wealth maximisation.
(b) Functions and objectives of financial management.

Section – B (any two) 20 Marks

(Each question carries 10 marks)

7. During 1999-2000 to cope up with the effect of globalization and industrialization the Ministry of
Rural Development (MORD) took an initiative under Swarnjayanti Gram Swarozgar Yojana (SGSY)
scheme through SARAS mela to bring a revolution in the strategy of marketing of rural crafts for
promoting rural products, building the capabilities of swarozgaris and opening of income
opportunities of rural artisans involved in the Swarnjayanti Gram Swarozgar Yojana (SGSY)
scheme. SARAS Mela’s importance lies in marketing of rural products and improving the livelihood
opportunities of rural artisans. SARAS Mela opened new visions for marketing of Indian traditional
handicraft by creating a platform of interaction between buyer and seller.
Discuss the enhancement of Marketing of Rural Crafts through SARAS Fair at India International
Trade Fair (IITF) with respect to the following:

i. marketing of Rural Products, ii. Handicraft, iii. Artisans, iv. major categories of
Craft in India, v. India’s major Handicrafts (state-wise), vi. world famous India’s Handicrafts

8. IPR, 1991: With the opening of Indian economy under P.V. Narasimha Rao in 1991, the government
came out with a new IPR called 'The New Small Enterprise Policy 1991'. The salient features and
effects of this policy were:

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(i) It aimed at increasing the vitality and growth of the small sectors to improve Indian economy.
(ii) Efforts were made to reduce licenses required to start a Small Scale Industries (SSI).
(iii) Efforts were also made to de-regulate de-bureaucratize with a view to remove obstacles.
(iv) Tiny industries were allowed to come up anywhere in the country.
(v) Partnership act was amended to suit SSI.
(vi) Better market promotion of SSI products was taken in.
(vii)An Export development centre was opened in Small Industries Development Organization(SIDO).
As per the above policy,

(a) Define SSI. Enumerate various objectives of SSI.

(b) List the various supporting agencies of central and state government and services offered by
them.

(c) Which are the Institutions that provide support to SSI.

9. Firm growth introduces a number of managerial challenges for the entrepreneur, challenges which
they may be unfamiliar and ill-equipped to deal with. Some entrepreneurs lack the ability to make
the transition to this more professional management approach. Another group of entrepreneurs may
be able but unwilling to focus their attention on achieving those tasks necessary to successfully
achieve firm growth. Categorization of entrepreneurs is in terms of two dimensions: first dimension
represents an entrepreneur’s abilities to successfully make the transition to more professional
management practices, and the second dimension represents an entrepreneur’s growth aspirations.

Depending on the positions of these two dimensions, decipher the types of firm growth outcomes.

Entrepreneur’s High
ability to institute Unused potential Actual growth
Professional
Management Little potential Constrained
practices Low
No Yes
Entrepreneur’s Growth Aspirations

Section C (Compulsory) 20 Marks

10. Case Study:

Apollo Tyres was established by Raunaq Singh (Raunaq) in the 1970s when license raj was
prevalent. The Indian tyre industry then, was highly competitive with both domestic and
international players competing for the market share. With its continuous efforts and innovative
strategies, over a period of time, Apollo Tyres emerged as the leading player in the industry. Being a
family-run business, its first, second and third generation leaders were instrumental in turning it
around and taking it to the topmost position. In 2005, it decided to go global. However, with

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 continuous emergence of new growth platforms and technology, it remains to be seen whether
Apollo Tyres retains its position in the Indian tyre industry while making its mark on the global
front.

The Global Tyre Industry: The history of the tyre industry dates back to 1845 when the pneumatic
or air-filled tyre was invented and patented by R.W. Thomson. However, the original rubber tyre was
invented in 1888 by John Boyd Dunlop (Dunlop), who modified the pneumatic tyres 2, enabling
them to withstand the damage caused by rough roads.

Indian Tyre Industry: The Indian tyre industry starting in the 1900s went through many phases to
transform from a state of domination by the foreign companies to the present state of domination by
the domestic players. In the first phase (1920–1935), tyres were not manufactured in India. The
demand for tyres in India at that time was met through imports from foreign players such as Dunlop
(UK), Firestone (US) and Goodyear (US).

Apollo Tyres’ Transformation: Tireless Efforts: History of Apollo dates back to 1970s when
licensing regime was prevalent in the country. At that time, it was mandatory to obtain license from
Government of India (GOI) for setting up a company.

Raunaq wanted to set up a tyre-manufacturing company for which he approached Mathew T.

Marattukalam, and his associates of Ruby Rubber Works of Kerala to obtain licence for setting up
the company. He purchased the licence in 1974 and incorporated Apollo in 1976.

Answer each of the following questions in 125-225 words:

(a) Identify the key elements from the case contributing to opportunity identification and selection
process of Apollo Tyres?
(b) Comment on the nature of business idea and vision of Ranauq Singh. What entrepreneurial barriers
were faced in the establishment of Apollo Tyres?
(c) What are the drawbacks of entrepreneurship.
(d) Discuss the preliminary screening of venture idea for operational prospects.

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