Mian Basit Online Final Paper 9557

Department Civil Engineering

Program Name BSc- Civil Engineering

Examination Final Term (2021 Spring)

Course Code MGT-302(02)
Course Title Entrepreneurship
Exam Date 17 June 17, 2021
Exam Time (2:00 p.m.—7:00 p.m.)
Duration 5 Hours
Maximum Marks 100
Teacher Name Sir Musa Khan

Student Name Mian Basit Sajjad

Section Student Id
B 9557
(if any)
INSTRUCTIONS TO CANDIDATES
 Write your Student ID, Name and Section clearly on any of your answer books.
 Use A4 Size plain or lined sheets.
 Write the same question number on answer book / sheet as mentioned on
question paper.
 Solve the paper in your own words because if paper grader reports copying/
cheating, your paper will be cancelled and UFM case will be initiated against you.
 In case answers of two or more students match, their paper will be cancelled and
UFM case will be initiated against each student.
 You are required to submit solved answer book/sheet on LMS as per prescribed
date and time.
 Submission of papers on LMS is compulsory, however in case of facing problem
of uploading paper over CULMS, then email (in case of contingency only) “To:”

Entrepreneurship Sir Musa

 Mian Basit Online Final Paper 9557

[email protected] and “cc:” [email protected]

 In case of sending papers to wrong email, no further chances will be given.
 Anyone failing to submit his/ her answer book/ sheet on specified time as per his/
her exam date sheet will be declared ABSENT and late submissions will not be
accepted in any case.

Case 1
Sticker Giant Embraces Change
Entrepreneurs typically are not afraid to take risks or change the way they
do business if it means there is a better path to success. John Fischer of
Longmont, Colorado, fits the profile. The drawn-out U.S. presidential
election in 2000 between Bush and Gore inspired Fischer to create a
bumper sticker that claimed, “He’s Not My President,” which became a top
seller. As a result of this venture, Fischer started an online retail sticker
store, which he viewed as possibly the “Amazon of Stickers.” Designing
and making stickers in his basement, Fischer’s start-up would eventually
become a multimillion-dollar company, recognized in 2017 by Forbes as
one of its top 25 small businesses. The Sticker Giant online store was
successful, supplying everything from sports stickers to ones
commemorating rock and roll bands and breweries. By 2011, the business
was going strong; however, the entrepreneur decided to do away with the

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

retail store, instead focusing the business on custom orders, which became
Sticker Giant’s main product.
As the company became more successful and added more employees,
Fischer once again looked to make some changes. In 2012 he decided to
introduce a concept called open-book management, in which he shares the
company’s financials with employees at a weekly meeting. Other topics
discussed at the meeting include customer comments and feedback,
employee concerns, and colleague appreciation for one another. Fischer
believes sharing information about the company’s performance (good or
bad) not only allows employees to feel part of the operation, but also
empowers them to embrace change or suggest ideas that could help the
business expand and flourish.
Innovation is also visible in the technology Sticker Giant uses to create
miles and miles of custom stickers (nearly 800 miles of stickers in 2016).
The manufacturing process involves digital printing and laser finishing
equipment. Fischer says only five other companies worldwide have the
laser-finishing equipment Sticker Giant uses as part of its operations.
Because of the investment in this high-tech equipment, the company can
make custom stickers in large quantities overnight and ship them to
customers the next day. This small business continues to evolve with an
entrepreneur at the helm who is not afraid of making changes or having
fun. In 2016, Sticker Giant put together Saul the Sticker Ball, a Guinness
World Records winner that weighed in at a whopping 232 pounds. Fischer

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

and his employees created Saul when they collected more than 170,000
stickers that had been lying around the office and decided to put them to
good use. With $10 million in annual sales and nearly 40 employees,
Sticker Giant continues to be a successful Endeavor for John Fischer and
his employees almost two decades after Fischer created his first sticker.

Questions for Discussion

1. How does being a risk-taker help Fischer in his business
activities?...........................(25 Marks).
2. If you were a small business owner, would you consider sharing the
company’s financial data with employees? Explain your
reasoning……………………………………….……. (25 Marks).

Answer No 01

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

We all know that risk taking is a tool for entrepreneurs and in the above
case we study about who became sticker giant that bring change in the
world of entrepreneurship. From this case we know that how risk taking in
business is benefits in growing the business. Being a risk taker help Fischer
in his business activities in the following way:

 In a business an entrepreneur has to take the risk in various business-

related activities such as deciding about marketing strategies,
customer service, hiring employees.
 Taking a risk in business activities help and entrepreneur to learn
from his previous mistakes.
 It helps in developing good decision-making skills in an intrapreneur
by the time and entrepreneur becomes an export in estimating risks
involved in a particular project.

 Risk-taking shows a team that the entrepreneur is a true business

visionary and leader who believes in the potential reward on the other
side. Risk-taking enables and encourages innovation, which can be an
important product/service differentiator.
 John Fischer acts like an entrepreneur and take risk of making sticker
by laser machine however his confidence make him a successful
bossiness man and an good entrepreneur
 Risk can be defined as the possibility of failure or loss or other
adverse consequences in pursuing some activity or venture. 

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

 Risk can be defined as the possibility of failure or loss or other

adverse consequences in pursuing some activity or venture. 
 Risks are what keep us on certain paths and help us avoid other, less
profitable ones. The only time an entrepreneur tends to embark on a
new venture is when the rewards outweigh the risks by a determined
margin.
 Each has their own identifiers of risk and reward, some are better than
others but internally, all entrepreneurs go through this risk/reward
analysis (thoroughly or not is what depends).

ANSWER NO 02
If I were a small business owner yes, I will consider the sharing the
company financial data with my employees because of some points which
are explained below:
1. It improves Accountability
2. It boosts up sale
3. It fosters understanding
4. Empowers Employees
5. Help everybody to be stack holder
6. Job Satisfaction and good Performance

 It improves Accountability

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

By sharing the results, you are holding both the leadership and the
employees accountable for the results of their efforts. A famous
entrepreneur once said at a conference “if you don’t set expectations
and have a way to measure their achievement, you can’t hold
employees accountable.”

 It boosts up sale
Yes, being transparent with your financial information can lift up
your finances.
A study by the National Center for Employee Ownership found that
companies that revealed financial information to their employees saw
a 1 percent to 2 percent sales bump over what usually would have
been expected.

 It fosters understanding
With key financial data at their disposal, employees will get a firmer
grip on how your business operates. Furthermore, they’ll have a better
handle on corporate finances in general — which may, in the long
run, help spawn future entrepreneurs. By sharing information, you
help your employees understand how the company operates, and they
become better workers and, potentially, future entrepreneurs.

 Empowers Employees

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

employees spot something in the financials that needs to be

addressed, they’ll feel more enabled to take action. Employees will be
on the lookout for ways they can improve operations.

 Help everybody to be stack holder

By entrusting employees with vital information about the
organization’s financial and operational health, business leaders send
a message that they consider every worker to be a valued partner and
stakeholder in their organizations,” Anne Claire Broughton of the SJF
Institute and Jessica Thomas of the University of North Carolina’s
Kenan-Flagler Business School wrote in a white paper on open-book
management. Employees who are trusted with vital financial
information feel that they are part of the team.

 Job Satisfaction and good Performance

Employees who feel trusted and valued are more loyal and more
engaged.
In a discussion of employee engagement in the Harvard Business
Review, Bill Fotsch and John Case reviewed several examples of
companies that shared their financial status with employees, and gave
them a stake in the outcome. Fotsch and Case, experts in the theory of
open-book management, describe the results as positive in every
instance, with one CEO saying: "I don't have employees in my plant

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

anymore. I have entrepreneurs who are looking to find ways to make

more money."
Sharing financial details with employees can build trust, leading to a
happier, more productive workforce.
“Research shows employees who believe they are trusted by their
managers and CEOs can better see the big picture and tend to be more
loyal and productive, or in other words, more engaged,” according to
Broughton and Thomas’ white paper.

Important Explanation

Most of the employers surveyed believe employees want to learn more

about how their company is faring financially. The study shows that nearly
60% of chief financial officers believe their workers are at least somewhat
interested in hearing about their company's financial performance.
"Professionals want to work for organizations that are open with staff about
the health of the business," Herd said. "Discuss opportunities and
challenges facing the organization as it grows, and invite ideas to help the
firm meet its goals. “To help employers who want to be more upfront about
their financial status, Robert Half Management Resources offers several
tips. The study was based on surveys of 2,100 CFOs from companies in
more than 20 of the largest U.S. metropolitan areas. Decide what to share.
You not only have to determine what details you are comfortable sharing,
but you also want to know what employees want to hear about. If you are

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

unsure about what and how much info to provide, consider reaching out to
peers and consultants to learn what insights other companies are giving
their employees. Create a schedule. If you are going to give financial
updates, you should do so on a regular basis. Let employees know how
often they should expect financial updates. It is important to stick to your
schedule, even when you have to share bad news. If you don't hold
discussions when the financial performance is down, you risk having
employees draw their own conclusions on what is happening with the
business Show them their impact. When discussing financial performance,
connect the dots for employees by showing them how their work is
contributing to the company's bottom line. By doing so, you will give them
more incentive to better align their work and ideas to the organization's
goals.

Case 2
Setting Up (Sandwich) Shop in China
Lured by China’s fast-food industry, estimated today at $180 billion, Jim
Bryant, 50, was not the only entrepreneur to discover it is hard to do
business in China. In ten years, Bryant has opened 19 Subway stores in
Beijing—only half the number he was supposed to have by now—while
other companies such as Chili’s and Dunkin’ Donuts have given up their
Chinese operations altogether.

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

Subway, or Sai Bei Wei (Mandarin for “tastes better than others”), is now
the third-largest U.S. fast-food chain in China, right behind McDonald’s
and KFC, and all its stores are profitable. Although Bryant had never eaten
a Subway sandwich before, Jana Brands, the company Bryant worked for
in China, sold $20 million in crab to Subway annually, so he knew it was
big business. When Subway founder Fred DeLuca visited Beijing in 1994,
Bryant took him to a place not on the official tour: McDonald’s. It was
Sunday night, and the place was packed. “We could open 20,000 Subways
here and not scratch the surface,” Bryant remembers DeLuca saying. Two
weeks later, Bryant called Subway’s headquarters in Milford, Connecticut,
and asked to be the company representative in China. He would recruit
local entrepreneurs, train them to become franchisees, and act as a liaison
between them and the company. He would receive half the initial $10,000
franchise fee and one-third of their 8 percent royalty fees. He could also
open his own Subway restaurants. Steve Forman, the founder of Jana
Brands, invested $1 million in return for a 75 percent stake. All foreign
businesses in China had to be joint ventures with local partners, so Bryant
used the Chinese business practice of relying on local relationships to find a
manager for his first restaurant in Beijing. The project ran into problems
immediately. Work on the store was delayed, and construction costs soared.
It didn’t take Bryant long to realize that he and Forman had been swindled
out of $200,000. When it finally opened, the restaurant was a hit among
Americans in Beijing, but the locals weren’t sure what to make of it. They

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

didn’t know how to order and didn’t like the idea of touching their food, so
they held the sandwich vertically, peeled off the paper, and ate it like a
banana. Most of all, the Chinese didn’t seem to want sandwiches. But
Subway did little to alter its menu—something that still irks some Chinese
franchisees. “Subway should have at least one item tailored to Chinese
tastes to show they respect local culture,” says Luo Bing Ling, a Beijing
franchisee. Bryant thinks that with time, sandwiches will catch on in China.
Maybe he’s
right: Tuna salad, which he couldn’t give away at first, is now the number
one seller. Today there are nearly 600 Subway stores in China, with
China’s fast-food industry estimated at over $180 billion.

Critical Thinking Questions

1. What are some of the main problems U.S. franchisors encounter when
attempting to expand their business in a country such as
China?......................................................... (25 Marks).
2. Write down the role of entrepreneur in the economic
development…………. (25 Marks).

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

ANSWER NO 01

Following is the main problem that U.S franchisers encounter when

attempting to expand their business in country such as China was to recruit
and attract the local entrepreneurs to provide its franchise and to train them
as per their requirement to become a franchisee. They need a local
representative who knew this local market and could use his/her local
contact or relationship to find the potential franchisee for them in Chinese
market. Other problem was there were already brands like
MACDONALDS and KFC franchises chains, which were successful
among the Chinese customer and other risk is that there are many other
brands like Dunkin Donut and chilies were already rejected by Chinese
customer. So, there was a huge risk involved in market. While working in
Jana Brands, as they sell crab of dollar 20 million annually to subway, Jim
Bryant has realized that it was a huge business, in the last decade he has
started 19 Subway stores in Beijing. In 1994, founder of Subway came to
China and Bryant took him to McDonald’s and there when founder saw the
restaurant was full with the customers and said, it would be a really good
opportunity to open 20,000 Subways in the Beijing. After that Bryant call
him and ask him to act as a liaison between the franchisees and company
with the compensation of half of initial franchises fee $10,000 and one
third of their loyalty fee and he would also like to open his own franchisee
in Beijing. Jana Brand founder also would invest $one million. As the

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

company required a local [partner to initiate its business and Bryant has
searched the first local partner. Soon they realized that there is a huge
construction cost involved in opening up subway. When it opened
American like this restaurant but Chinese did not pay much attention as
sandwich are not much popular in China but gradually it has adopted the
local taste with little alteration in food and the business is very successful
among the Chinese customers.

ANSWER NO 02

The role of entrepreneurs in economic development

Everything you need to know about the role of entrepreneurs in

economic development. Economic development actually means a
process of upward change in which the income of each individual
country increases over a period of time.

Operator, who plays an important role in economic development.

These entrepreneurs should be used as a catalyst for industrial growth
and economic growth.

Technological advances have made it impossible for economic

development and business owners to take advantage of technological
advances in the economic sector.

Some of the roles of entrepreneurs are as follows: -

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

1. Capital

2. Individual growth rate

3. The creation of new jobs

4. Well-Rated Regional Development

5. Improved quality of life

6. Economic independence

7. Feedback and feedback

8. Encourage others to become entrepreneurs

9. Creation of the Second Knowledge Flow

10. Increase in the number of companies

11. Provide for various companies

12. Production of production resources

13. Development of new products

14. Development of new production technologies, and a few other

things.

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

The role of entrepreneur in economic development

Economic development actually means a process of upward change in
which the income of each individual country increases over a period
of time. Operator, who plays an important role in economic
development. These entrepreneurs should be used as a catalyst for
industrial growth and economic growth. Technological advances have
made it impossible for economic development and business owners to
take advantage of technological advances in the economic sector.
This is a planning company, with huge spending, human resources
and technology. Likewise, development does not happen
automatically, as a natural result, that, when economic conditions are
real, in a sense. What is needed is, and what is most needed, is the
economic activity of a variety of resources directed at rich resource-
rich countries, especially in the provision of labor. "
Entrepreneurs initiate and support the process of economic and social
development in the following ways:

1. Capital:
Entrepreneurs promote job-saving savings, through the release of
industrial results. Public investment, savings in the industry and led to
productive use of national resources. Increasing the speed of allocated
funds, which is needed for rapid economic growth. Therefore, he is a
businessman, and a creator of wealth.

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

2. Growth rate on individual income:

Entrepreneurs consider and apply its features. These, in turn, were
hidden and weak resources such as land, labor and national income
and wealth (in the form of goods and services to you. They help to
increase the country's total domestic production and individual
income, which are the most important ways to measure economic
growth.

3. New job creation:

Entrepreneurs create new jobs, both directly and indirectly. Direct
trading and as an entrepreneur, it is the best way to live an
independent and dignified life. Indirectly, through the creation of
individual businesses, large and small, to provide jobs for millions of.
Thus, business is helping to alleviate the country's unemployment
problems.

4. Estimated Regional Development:

Businesses in both the public and private sectors to help resolve
regional differences in economic development. Well-established
industries in regions with backward development, taking advantage of
the various benefits and rewards offered by central and local
governments.

Public metal companies and private companies, Modis, appear in

Portuguese for betting on football, Birla's, and others and have undid

Entrepreneurship Sir Musa

Mian Basit Online Final Paper 9557

Entrepreneurship Sir Musa