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Bmit 421 2010/2011 Academic Year Question Paper
Bmit 421 2010/2011 Academic Year
Course:Bachelor Of Business Management And Information Technology
Institution: Kabarak University question papers
Exam Year:2010
2010/2011 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF BUSINESS
MANAGEMENT AND INFORMATION TECHNOLOGY
COURSE CODE: BMIT 421
COURSE TITLE: BUSINESS MANAGEMENT AND
ENTREPRENUERSHIP
STREAM: Y4S2
INSTRUCTION
Answer question ONE and any other THREE questions
QUESTION ONE
Read the case below and answer the questions which follow. (30 marks)
Ratemo was a building construction student at Elimu Mpya Polytechnic. At the
polytechnic, Ratemo took courses in brick-laying, carpentry, joinery, and plumbing. He
completed his secondary education at Shule Wetu High School near his home in 1990.
After several jobs, Ratemo worked for 2 years with a construction firm as a foreman. He
then joined the civil service where he was deployed in the Ministry’s building and
construction department as a technician. Upon retrenchment from the service at the age of
25, Ratemo decided to return home.
However, the job market at home was not favorable. Because of his educational
background, coupled with his work experience, Ratemo felt that opening his own small
construction firm was the solution. He took that step and has been in the business for the
last four years.
Ratemo used market surveys and personal contacts to enhance the volume of his
business. Through this strategy, he was able to ascertain that the market for construction
services was promising and at the same time gain valuable information on the extent of
his competition.
Ratemo chose to organize his business as a limited company. He felt this was the best for
tax purposes and also because a limited company can sell shares on the open market.
Ratemo initially financed his business through a bank. He, however, encountered a cashflow
problem. To solve this problem, he sold shares. A second problem of increasing new
customer patronage was solved by moving to a new location.
Ratemo has developed an extensive business plan. This plan is a guide to help him reach
his goals of further penetrating the market, increasing sales and forming a franchise.
Ratemo credits his technical education for getting him started in this area of construction.
In addition to the courses he took at Maendeleo College of Technology, he found his onthe
job experience, as well as having a sister who was an entrepreneur, to be extremely
helpful.
Ratemo’s knowledge of construction, his ability to work with people, and his high energy
level enabling him to work long hours, are assets to him as an entrepreneur. His lifestyle
changed remarkably when he became an entrepreneur; he had to dedicate more time to
his work. Much of his life is currently geared toward his business, but he tries to make
time for his wife and two children. He is looking forward to long-term financial stability
and making his current business self-supporting. All of the profit currently goes back into
the business. With nine employees and with a turnover of shillings 10 million as at last
year, Ratemo is on his way up the ladder of entrepreneurial success.
Required:
i) What interests and skills helped Ratemo to develop a business idea?
(4marks)
ii) Explain how education and training has contributed to Ratemo’s success in
self employment. (4marks)
iii) Explain the challenges Ratemo may face in running his small scale business.
(8 marks)
iv) Other than bank loan, what other sources of finance are available to Ratemo
for business expansion? (6 marks)
v) Explain to Ratemo the importance of being in self-employment. (8 marks)
QUESTION TWO
a) Distinguish between an entrepreneur and an intrapreneur. (3 marks)
b) Discuss FIVE types of entrepreneurs you are familiar with. (10 marks)
c) According to Boyd and Gumpert, state FOUR causes of entrepreneurial
stress. (4 marks)
d) Explain how an entrepreneur may deal with stress. (3 marks)
QUESTION THREE
a) Discuss FIVE characteristics of a good business opportunity. (5 marks)
b) According to Joseph Schumpeter, highlight and discuss FIVE characteristics of
an entrepreneurial venture. (5 marks)
c) In numbered paragraphs, discuss the components of a business plan. (10 marks)
QUESTION FOUR
a) Explain the various levels of management you may find in an organization.
(4 marks)
b) Discuss the types of skills needed by managers at each managerial level
identified in (a) above. (8 marks)
c) Explain FOUR roles of a manager as propounded by Henry Mintzberg in his
attempt to understand the diversity of tasks performed by managers. (8 marks)
QUESTION FIVE
a) Write explanatory notes on each of the following:
i) Lean management (2 marks)
ii) Knowledge based organization (2 marks)
b) Explain FOUR decision making styles which a contemporary manager may
adopt. (6 marks)
c) Discuss the Boston Consulting Group (BCG) matrix and state its strategic
implications. (10 marks)
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