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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
INSTRUCTIONS:
- Answer SIX questions.
- Question One is COMPULSORY (The paper contains 8 questions)
QUESTION ONE
Read the case below and answer the questions that follow. (20 Marks)
HARLEM PACKERS LIMITED (HPL)
Rapta Patel now in his twilight years at the age of 74 years, is faced with the most
difficult decision of his life. Patel inherited Harlem Packers Limited (HPL) from his late
father when he was fifteen years old. Faced with a hostile business environment and low
education (he was a standard four dropout), Mr. Patel was expected to fit into the shoes of
his late father and manage the business. Patel’s late father Mr. Rapta started his business
as a hawker, being one of the Indians who constructed the Kenya-Uganda railway. Rapta
Patel through sheer determination, lack and vision has managed to turn HPL to a multimillion
company with a turnover of more than Kshs. 1 billion in a span of thirty years.
The company has spread its wings into the neighbouring country and has branches in
Uganda and Tanzania.
Although Patel’s children are all university graduates who were educated in foreign
countries, he is faced with the dilemma of management succession, on how to pass the
baton of the family “jewel” now that he is about to retire.
Mr. Patel’s family comprises five members, his wife Kahaza, Pundit his first born son,
Desouza his second son, Pili pilau his daughter and Gupta his last born son. Patel
educated his children in Kenya’s elite schools and U.K Universities where they graduated
with degrees in Law, Business Administration, Engineering and Economics. During the
holidays, he made sure that they were inducted in business locally by placing them in
Kenya’s Blue Chip companies for attachment. Leisure in the family was not encouraged
and the mother, Kalaza, made sure that the children attended the temple as required. The
mother inducted the children in their early childhood the importance of religion and fear
of God. This early induction, inculcated in the children a spirit of love for other people
and doctrine of working hard. As a result, all the children are capable of inheriting the
business and run the family jewel successfully.
Harlem packers Limited (HPL) specializes in the packaging of meat and meat products
both for the local and for export to European market. Locally the company has
specialized in the up-market segment and government institutions. To enhance its
presence and competitiveness in this market, Mr. Patel has made a habit of socializing
with who is who in Kenya. Under his social encounters, he makes meaningful business
deals which form the company’s flagship in terms of revenue returns. To cap it all, he
recently joined an elite golf club to create linkages and networks for his business and also
revitalize his health. He expects to use these contacts from this club to win business
favours for his company during retirement.
In the span of thirty years, Mr. patel’s business has gone through “Thick and Thin”! In
1990’s the business environment in Kenya was very hostile. During this period it was
faced with donor fatigue and all time low people’s purchasing power which made Mr.
Patel almost give up and migrate to Canada. At the same time due to lack of adequate
veterinary services, Kenya’s beef products were banned in the European market and the
company’s profit decreased considerably.
Faced with this situation, Patel opened up two branches in Tanzania and Uganda and
diversified into fish packaging. He also added another branch to cater for poultry
products. Through diversification and expansion, Mr. Patel did a lot of traveling which
left him with very little time to rest and for his family. When he visited the doctor in one
of his periodic health check-ups he was advised to slow down. However, the business
problems required his guidance and leadership to grow.
In his next visit, the doctor diagnosed him with high blood pressure, diabetes and
stomach ulcers. These conditions affected his management ability although he continued
to do it almost single handedly. A friend of his advised him to infuse professionalism in
his business but he ignored.
Mr. Patel’s hand was felt in every aspect of the business. He hated structured
management styles and detested outside assistance. Most of the business problems were
solved through his creativity and innovation, occasionally by trial and error method. Mr.
Patel always boasted that his business problems were pasted to his brain website by
“Kamar” – the hindu goddess of good luck. Thus he didn’t see the need for outside
assistance to solve his business problems.
Mr. Patel’s religious upbringing and fear of god had served him very well under difficult
circumstances. His goddess of luck ‘Kamar’ once appeared in his dream where she
revealed creative ways of finding the business successor. She vividly demonstrated the
characteristics required of the next person in the family lineage. The dream exhibited
more female characteristics in the successor such as parenting with tender touch, caring
and exemplary customer care. Although Mr. Patel loved his daughter dearly, the
succession question required to be discussed exhaustively by the family.
a) Examine entrepreneurial the traits exhibited by Mr. Patel which have enabled
Harlem Packers Limited to excel to its current level. (5mks)
b) Assume you are a management consultant, advice Mr. Patel on the best way to
manage succession in the family business. (5mks)
c) Examine the determinants of human behaviour which enhance entrepreneurial
spirit exhibited in this case. (5mks)
d) Examine the extent to which religion has played as a factor of stability at Harlem
Packers Limited. (5mks)
QUESTION TWO
a) Outline the components of Total Quality Management (TQM) (10mks)
b) What benefits would accrue to an organization that practices TQM?
(10mks)
QUESTION THREE
a) Most entrepreneurs exhibit unique competences analyse such competencies.
(10mks)
b) List and discuss FIVE challenges that small scale business firms encounter in
your country. (10mks)
QUESTION FOUR
a) Identify and discuss the advantages of strategic plan. (10mks)
b) A well established small business wishes to carry out an anaylysis of its strengths,
weaknesses, opportunities and strengths (SWOT). The task has been assigned to
you. Explain the procedure you would follow in carrying out the task.
(10mks)
QUESTION FIVE
Strategic management not only involves making decisions about major issues facing the
organization but also ensures that the strategy is put in effect.
a) Identify and explain the elements of strategic management. (10mks)
b) Describe the steps followed by a small enterprise in the strategic management
process. (10mks)
QUESTION SIX
Decision making is the vehicle for carrying managerial work load and discharging the
managerial responsibilities in a small enterprise. Critically examine this statement in the
light of various stages involved in the process of rational decision making in a small
enterprise. (20mks)
QUESTION SEVEN
a) Mr. Otieno who retired from the civil service one year ago has started a small
scale garbage collection enterprise with his retirement benefits. Explain the
challenges that he is likely to face in managing the business. (10mks)
b) While attending an entrepreneurship development forum, M/S Njeri an
entrepreneur, heard the expert comment that “leaders don’t have to be good
managers, but every manager has to be an effective leader”.
Explain to Njeri the implications of this statement. (10mks)
QUESTION EIGHT
a) The Kenya Government has initiated a Youth Enterprise Development Fund to
enable the youth to go into self employment ventures. Consequently, the youth
have come up with a large number of ideas. As an entrepreneur development
consultant, you have been contracted to assist the youth in identifying the best
business ideas to engage in.
Explain the factors that should be considered when selecting a viable business
idea. (10mk s)
b) Discuss FIVE factors that lending institutions take into consideration when
appraising a loan application form for a business venture. (10mks)
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