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Bmit 421: Business Management And Entrepreneurship Question Paper
Bmit 421: Business Management And Entrepreneurship
Course:Bachelor Of Business Management And Information Technology
Institution: Kabarak University question papers
Exam Year:2009
COURSE CODE: BMIT 421
COURSE TITLE: BUSINESS MANAGEMENT AND
ENTREPRENEURSHIP
INSTRUCTIONS:
Answer question ONE and any other THREE questions.
QUESTION ONE (Compulsory) (40mks)
(a) “Performance management” is defined as a means of achieving better results by understanding
and managing overall organizational performance.
Required:
Describe the five stages typically involved in the process of performance management
(20mks)
(b) Read the case below and answer the questions which follow:
Rehema is forty years old and lives in Mogotio. Rehema came to Mogotio when she was
young. Her father worked as a cook in a local school. She attended secondary school but did
not make it to university. She was later admitted to Masomo Mpya Technical College where
she enrolled in a two year course in tailoring. On completion of her course she was employed
by a tailoring firm in Mogotio.
She worked for this firm for two years then decided to resign and start her own business in
tailoring. She obtained a loan from Kenya Women Finance Trust (K.W.F.T) as capital for her
business. From her savings, she contributed additional capital.
Rehema then rented a room in the shopping centre near her house so that she could walk to
work. She bought four sewing machines; she also bought cloth and employed four tailors to do
the cutting and the sewing of the clothes. At first, she made dresses, trousers and shirts. She
displayed products in her shop for customers to come and buy them. Later, Rehema visited
several shops in Nakuru town that sold uniform in quantities. The businesses placed orders
with her shop to supply them with uniforms. To be able to meet this order, she needed to
employ five skilled employees full time and two employees on a part time basis. She also
needed to buy three more sewing machines. Rehema was able to meet her orders and her
customers were satisfied with the products.
As Rehema’s business expanded, she needed additional space. She rented bigger rooms at
popular sites in the shopping centre and also nearer to her prospective customers as well as her
existing customers. She continued supplying uniforms to the two companies and at the same
time made clothes to sell to other customers. At this point, she needed an accounts clerk to
deal with the records and handle cash for the business, and a messenger to do errands. Rehema
was the overall manager.
Rehema organized exhibitions in Nakuru town to advertise her products both to local
customers and to customers in foreign markets. Soon after the first two exhibitions, she started
exporting some of her products to Uganda and Tanzania. Her net income rose quickly.
Rehema is friendly to her customers. They like her because of her quality products and her
honesty. Her employees also like her, are loyal and are committed to their work. Five of the
employees have worked in the business for over ten years. The employees have nicknamed her
“fashion”. She likes the name and has accepted it. Rehema pays her employees reasonably
well. She has also organized insurance scheme for them and she pays them a travel allowance
in addition to their monthly salaries.
REQUIRED
Analyze how Rehema, as an entrepreneur, has contributed to national economic development
of the society she lives in. (20mks)
QUESTION TWO
(a) You work as an Information Technology (IT) manager in a small enterprise which deals in sale
of computer soft and hardware. The sales representatives need new laptops because their old
ones are inadequate to do their jobs efficiently and effectively. The management is determined
that it is not economical to simply add memory to the old computers and that it is the
organization’s policy that managers purchase new computers rather than lease them. It is
evident that there is a problem – there is a disparity between the sales representatives’ current
computers and their need to have more efficient and effective ones to do their jobs properly.
As an IT expert and consultant, advise the organization on the process of making a decision
on the issue. (10mks)
(b) “A business plan is a road map to the success of every business.” Discuss. (10mks)
QUESTION THREE
(a) You have been invited to attend a function at Kampi ya Moto College of Entrepreneurship to
give a lecturer on the topic; “Leaders don’t have to be entrepreneurs but every entrepreneur
must be an effective leader.” Outline FIVE points you would include in your talk.
(10mks)
(b) Pauline has been a qualified Information Technology (IT) manager in Comprex Enterprise for
some years and an assistant IT manager in a branch of the organization for the last two years.
She has been particularly concerned with helping to introduce a new information system in the
branch. It is intended that this information system will be introduced throughout the
organization. Pauline has now been appointed IT manager in another branch of the same
organization, located in a different town. Explain the sources of power Pauline possesses in
her new job. (10mks.
QUESTION FOUR
(a) (i) What is a decision tree? (2mks)
(ii) Use the pay off table below to answer the questions which follow:
Payoff table showing whether to build or not to build a new bridge
New Bridge Built No New Bridge Built
Alternative capacity for new store A
B
C
1
2
4
14
10
6
Where A = Small B = Medium and C = Large
Using the probabilities of .60 for New bridge and .40 for No new bridge. Assume the payoffs
represent value of benefits.
Required
a) Compute the expected value of each alternative in the payoff table and identify the
alternative that would be selected under the expected – value approach. (6mks)
b) Construct a Decision Tree for the problem showing expected values (2mks)
(b) Name and explain FIVE sources of business ideas available to an entrepreneur. (10mks)
QUESTION FIVE
(a) To be competitive, enterprises are supposed to develop strategic plans which are vital
components in strategic management process. Advise entrepreneurs on the process they should
adopt in developing the plan. (10mks)
(b) One of the essentials of strategic management is development of Vision and Mission for the
organization. The mission of Kabarak University reads:
“To provide holistic quality education to the youth as well as other age groups, equipping them
with knowledge, practical skills and Christian moral values necessary for the service of God
and humanity. We will serve the local community, the nation and dissemination of knowledge,
within the context of Biblical Christianity.”
Assume that you attended an interview in Kabarak University and one of the interview
questions required you to explain the components of the Kabarak University mission
statement. Critically analyze the components of the mission statement of Kabarak University.
(10mks)
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