MGT602 Midterm Important Questions

MGT602 - ENTREPRENEURSHIP

MID TERM MOST IMPORTANT QUESTIONS

1.

How brainstorming is different from brain writing?

Brainstorming is a popular technique where team members share ideas aloud in a collaborative, often fastpaced environment. It is particularly effective during the early stages of a startup when entrepreneurs are shaping their vision, identifying opportunities, or developing new products. Brainstorming encourages spontaneous creativity and builds team energy, making it useful for generating a large volume of ideas quickly. However, it can sometimes lead to challenges such as groupthink or idea dominance, where louder or more experienced individuals influence the direction of the discussion, potentially limiting the diversity of ideas. Despite this, it remains a valuable tool for fostering open dialogue and creative collaboration.

Brainwriting is a more structured and inclusive approach to idea generation, where participants write down their ideas individually, often without immediate group discussion. This method reduces social pressure and encourages equal participation from all team members, including those who may be introverted or hesitant to speak up in a group setting. In entrepreneurial environments, brainwriting is especially useful when tackling complex problems that require thoughtful input or when aiming to collect a wide range of innovative ideas. Because the process minimizes external influence and allows for deeper reflection, it often results in more original and well-considered contributions. Entrepreneurs can benefit greatly from using brainwriting to capture diverse perspectives and to ensure that no valuable insight is overlooked.

2.

Write 3 advantages of Entrepreneurship?

Here are three key advantages of entrepreneurship:

1. Independence and Autonomy:

Entrepreneurs have the freedom to make their own decisions, set their own goals, and determine the direction of their business. This independence allows them to pursue their passions and create a work environment that aligns with their values and vision.

2. Unlimited Income Potential:

Unlike salaried jobs, entrepreneurship offers the potential for significantly higher financial rewards. Successful entrepreneurs can scale their businesses, increase profits, and build long-term wealth without being limited by a fixed paycheck.

3. Opportunity for Innovation and Impact:

Entrepreneurs have the chance to bring new ideas to life and solve real-world problems. Through innovation, they can create products or services that improve lives, disrupt industries, and make a meaningful contribution to society and the economy. 3. Explain how to develop your own business and its benefits. To develop your own business, start by identifying a market need and creating a strong business idea. Conduct market research, write a business plan, register your business legally, and set up operations. Develop your product or service, market it effectively, and continuously improve based on customer feedback. The benefits of starting your own business include personal independence, higher income potential, the ability to pursue your passion, and the opportunity to create value and jobs. It also helps build valuable skills and offers long-term growth and fulfillment.

4. Write advantages and disadvantages of franchise.

Advantages of a Franchise

✅ Established Brand Recognition – Customers already know and trust the brand, reducing marketing effort. ✅ Proven Business Model – Lower risk with tested systems, training, and support from the franchisor. ✅ Training and Support – Franchisors often provide comprehensive training, ongoing assistance, and marketing help. ✅ Easier Access to Funding – Lenders are more likely to finance a franchise due to its lower risk profile. ✅ Bulk Purchasing Power – Franchisees benefit from reduced costs on supplies through the franchisor’s network.

Disadvantages of a Franchise

❌ High Initial Investment and Fees – Franchise fees, royalties, and setup costs can be expensive. ❌ Limited Creative Control – Franchisees must follow strict brand rules and can't easily innovate or change products/services. ❌ Ongoing Royalties – A portion of revenue must be paid regularly to the franchisor, reducing profit margins. ❌ Reputation Risk – If other franchise locations perform poorly, it can damage your business’s reputation. ❌ Contractual Restrictions – Franchise agreements may limit territory, operational flexibility, or exit options.

5.

What are effects of joining the family business?

Positive Effects:

✅ Job Security and Stability: Family members often enjoy long-term job security and a stable work environment. ✅ Faster Career Advancement: Opportunities for leadership roles and decision-making may come sooner than in other businesses. ✅ Strong Commitment and Trust: There's often a higher level of loyalty, shared values, and trust among family members. ✅ Opportunity to Continue a Legacy: Working in a family business allows you to build upon and grow the family’s legacy.

Negative Effects:

❌ Lack of Professional Boundaries: Personal relationships can interfere with business decisions, causing conflict. ❌ Limited Personal Growth: Some family businesses may not offer enough professional development or external exposure. ❌ Pressure and Expectations: There can be high expectations to perform or carry forward the business, which may cause stress. ❌ Potential for Conflict: Disagreements over roles, succession, or strategy can strain both personal and professional relationships.

6. Define Uncertain and Multiple task entrepreneur.

Uncertain Entrepreneur

An uncertain entrepreneur is someone who starts or runs a business in situations where the outcomes are unpredictable and risks are high. They often operate in new or rapidly changing markets with little guarantee of success. These entrepreneurs make decisions with limited information, relying on intuition, innovation, and adaptability to navigate the unknown.

Multiple Task Entrepreneur

A multiple task entrepreneur is an individual who handles various roles and responsibilities within their business. Especially common in startups or small businesses, these entrepreneurs may simultaneously manage operations, marketing, finance, customer service, and product development. Their ability to multitask is crucial for the survival and growth of their venture.

7. Differentiate between Internally Stimulating and Externally Stimulating.

Internally Stimulating

Internally stimulating refers to motivations and actions that originate from within an individual. These are intrinsic drivers, such as personal passion, ambition, and a desire for personal growth. For example, an entrepreneur may be driven by the internal satisfaction of creating something meaningful or pursuing a lifelong dream. The energy and commitment come from personal values, internal goals, or the joy of the work itself.

Externally Stimulating

Externally stimulating, on the other hand, involves motivations that come from external sources. These could be financial rewards, recognition, social pressure, or competition. For instance, an entrepreneur might be motivated by the desire for status, profits, or external validation from customers, peers, or investors. These external factors push the individual to achieve certain outcomes or perform specific actions.

8.

What is Intuition?

Intuition refers to the ability of an entrepreneur to make decisions or take actions based on a deep, instinctive understanding of a situation, often without relying solely on data or analysis. Entrepreneurs frequently face uncertainty, and intuition allows them to navigate unknowns, identify opportunities, or assess risks quickly. It’s shaped by an entrepreneur's previous experiences, industry knowledge, and personal instincts. For example, an entrepreneur might sense that a new product will resonate with customers or that a market trend is about to shift, even if they can’t fully explain the rationale behind their decision. While intuition can be powerful, it’s most effective when combined with critical thinking and data, helping entrepreneurs move quickly in a fast-paced business environment.