Question 1

What happen? What mistake that Billie make in terms of the new venture?

In this case, Billie make a mistake by doing accepted of several company in once time.
Firstly, she makes a contract for the manufacture of microcomputer component with government.
When government got their component, Billie makes a contract with six private firms that cost
average $400,000 worth of component. Then the problem happen when she got an email from
government, said that Billie product have quality problem. The private firm that make contract
with Billie heard that news. It makes Billie need to explain to her customer of the mistake that
she did.

Question 2
How could this problem have been prevented? Defend your answer.

As we learn, the entrepreneurs need to know the form of business organization available
and the strengths and weaknesses of each business form before they register their business.
Billie’s knowledge of microcomputers is intensive and she actually is a university professor. But
she is a new in doing business. She should be aware of the rules and regulation governing
business organization and the business support system available for her.

In this case, Billie tried to get maximum benefit by doing more contracts. Actually, when
make a contract with government she should give 100% on her product making because this is
first time they make product for business scope. She should wait and see the result from the
government when government already used that component. If anything problem, Billie can
make a change or upgraded the component for customer satisfaction.

As we know, every business goal is try to get higher profit. Billie get the customer to
make business is good but she makes a mistake by accepted contract with another firm, when she
not yet had a feedback from her first customer. It makes impression of customer to her product is
low quality.

Question 3
What lesson about new-venture assessment does this case provide? Be complete in your
answer.

From this case, we know that the management plan is really important for being an
entrepreneur. A new venture team is the group of founders, keys employees and advisers that
move a new venture from an idea to fully functioning a firm.

Success of business relies strongly on the effectiveness of the management structure. The
performance, growth and survival of business depend on the owners managerial and capabilities.
In this case, Billie manage her business is not strongly enough to compete the industry.
Incapability of the entrepreneurs to perform effective management function is the most regularly
cited reason for the failure of business. Business inputs need and entrepreneur who is good at
managing them in order for them to work at their best and produce maximum output.

Another that, in term of new venture, entrepreneur need to have successfully management
function. That includes planning, business vision, organizing, leading and controlling. Apart of
administrative and marketing plans, entrepreneurs should also plan their operations activities to
ensure that the business will meet customer’s expectations, which include production parameters
such as quality, quantity and time. Billy Ahern makes a mistake because she didn’t take seriously
on management plan when she plan start a business. That why the management plan is really
important for being a successful entrepreneur and make a business established.
 KUALA LUMPUR
INFRASTRUCTURE UNIVERCITY
COLLEGE (KLIUC)

CASE STUDY

PRODUCT DESIGN PROBLEM

Prepared by

Mohd Fakhrozi bin Marjali

KI 080255