BIT2306 BUSS107 BCT1203 BAC1306 ENTREPRENEURSHIP SKILLS.

UNIVERSITY EXAMINATIONS: 2017/2018
EXAMINATION FOR THE DEGREE OF BACHELOR OF SCIENCE IN
INFORMATION TECHNOLOGY/ BACHELOR OF BUSINESS IN
INFORMATION TECHNOLOGY/ BACHELOR OF SCIENCE IN
INFORMATION COMMUNICATIONS TECHNOLOGY/ BACHELOR
OF SCIENCE IN APPLIED SCIENCE
BIT 2306/BUSS 107/BCT 1203/BAC 1306: ENTREPRENEURSHIP
SKILLS
FULL TIME/PART TIME/ DISTANCE LEARNING
DATE: DECEMBER, 2017 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE
CASE STUDY
A NEW SPIN ON MUSIC
Following his graduation from an excellent university with a degree in entrepreneurship,
Brian Wright was eager to launch a business. Brian always enjoyed working with new
technologies as well as watching movies, playing video games, and listening to music.
Because of the proliferation of online movie and video game rental services, he believed that
a service providing the online rental of CDs made perfect sense.
Brian was confident that the success of the other online rental serviced proved that there was
a market for the online rental of entertainment media; therefore, renting CDs online would be
an easy concept for customers to grasp. Although MP3s and MP3s players were growing in
popularity, Brian knew that he and his friends preferred to listen to an album in its entirety;
after al, Brian believed that “any true fan of an artist would want the entire album.”
When calculating potential revenue, Brian concluded that the average rental price of a CD
was approximately $14. If he charged $2 per CD per rental – which would offer an 8.5
percent savings of the customer based on the full retail price of a CD-he could recoup his
costs within seven rentals. In addition, Brian believed that he could negotiate contract with
the music labels to purchase Cs in bulk at a discount, which would in turn reduce the time it
would take for him to reach breakeven. He knew enough about music encryption
technologies to know that restrictions could be built into the CDs to deter people from
copying songs from them. He decided that taking such precautions would alleviate any
concerns that the music labels might have regarding piracy.
As Brian began discussing his idea with his friends, their enthusiasm convinced him that he
needed t act quickly before someone else seized the opportunity. At $2 per cent rental and an
estimated two rentals per customer per month, he would only need a little over 20,000
customers to reach $1,000,000 in annual revenue. After looking at his financial forecasts,
Brian decided that it was time to bring his online CD rental service to market.
QUESTIONS
a) Has Brian completed the proper marketing research for this potential opportunity? Why
or why not? (5Marks)
b) Based on the case, are there key mistakes that you would caution Brian about? Explain.
(5Marks)
c) What specific steps would you recommend to Brian for him to better assess this
opportunity? (10Marks)
d) Describe the four steps of entrepreneurial process? (8Marks)
e) Define window of opportunity. (2Marks)
QUESTION TWO
a) Identify three sources of stress of an entrepreneur. (3Marks)
b) Identify three main pathways to entering business for a prospective entrepreneurship.
(8Marks)
c) Describe the different ways that a business can use to protect its secrets. (5Marks)
d) Explain the uniqueness of a family business. (4Marks)
QUESTION THREE
a) Explain how an entrepreneur can maintain high ethical standards. (8Marks)
b) What are advantages of buying an existing business? Explain them.(6Marks)
c) Identify any six characteristics of a successful entrepreneur. (6Marks)
QUESTION FOUR
a) Describe the barriers to intrapreneurship. (6Marks)
b) What are the four specific areas of risk that entrepreneurs face? Describe them.
(8Marks)
c) state the factors that can motivate one to turn to entrepreneurship. (4Marks)
d) Define the term locus of control. (2Marks)
QUESTION FIVE
a) Explain how an entrepreneur can assess the business environment. (10Marks)
b) Describe the stages in new product life cycle and explain how one can revive a
business. (10Marks)

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