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    describes important aspects of management

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    6 vues9 pages

    Et Ed

    Transféré par

    dhurjotic9
    describes important aspects of management

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme PDF ou lisez en ligne sur Scribd
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    PGDM (2011-13) Term - IV Institute of ‘Management Technology END-TERM EXAMINATION e e er GM Elective: ENTREPRENEURSHIP DEVELOPMENT Time: 2 hours 19-9 -2012 * Maximum Marks: 100 INSTRUCTIONS: 1, All questions are compulsory. 2. Make assumptions wherever necessary and list them separately along-with the answers. 3. Q.No.3 is based on attached Case. 4, Return the copy of the case along-with the answer sheet to your invigilator. Questions Qa.‘all Expl intrepreneurs are self-employed but all self-employed are not entrepreneurs’. this expression. (10 marks) Q.2. (a) ‘Every Business [dea is not an Opportunity.’-Explain. (10 marks) Q.2. (b) Based on your interaction with Mr.Saurabh Goswami-Founder of ‘Ultra Rich Weddings Pvt Ltd, evaluate the business opportunity of providing matrimony services to wealthy customer segment using seven domain framework. (25 marks) Q.3. (a) Analyse current business model of “Toe-hold Artisans Collaborative (TAC)” using Nine Block Canvas. (15 marks) Q.3.(b) Innovate a new business model for TAC for entering into domestic market, (15 marks) Q.4, As an entrepreneur what should you be looking for in an investor and why? (10 marks) Q.5. Choose a right answer from below: (S marks) The four stages of a firm’s life are: (a) Start-up, innovation, maintenance, decline (b) Idea, start-up, growth, expansion (©) Start-up, development, expansion, growth (d) Development, start-up, growth, expansion There are many financing alternative available during the life cycle of a firm. These include: A. Owner’s Equity B. Angel Fund C. Venture Capital D. Cash Credit E. Bank Borrowing F. Private Equity G. Public Equity Q.6. Choose a right answer from below based on above information: (10 marks) 6. A. Based on the information above, in the growth phase of a firm, what would be your financing alternatives/options? (a) A,B (b) B,C, D, E, F © A,B,C,D @B,C,D,E 6. B. Based on the information above, in the expan: financing alternatives/options? a) AB b) B,C,D,E,F ©) A,B,C,D 4) BLCD,E m phase of a firm, what would be your 6. C. Based on the information above, in the start-up phase of a firm, what would be your finaneing alternatives/options? (a) A,B (b) B, C, D, E, F (©) A,B,C, D. (@) B,C, D,E 6. D. E. Based on the information above, in the development phase of a firm, what would be your financing alternatives/options? @) A,B (0) B,C, D, Ey F (©) A,B,C, D (d) B,C, D, E. End Term Examination - PGDM (201 1-13) Term-IV: Entrepreneurship Development 2 A CASE- ToeHold-In Search of a Business Model... Kolhapuri footwear is handerafted from natural leather that is eco-friendly; locally bag tanned using vegetable dyes. Athani, in the State of Kamataka, is the heart land of Kelhapuri sandals and home to over 400 such families of artisans with a rich legacy. Footwear craft is their only livelihood. Prior to year 2000 most worked as low wage-tonded Iabour in footwear ‘factories’ owned by dominant traders. Their life and craft were demeaned - they lived on the very edge. ASCENT initiated Project EnterPrice (Jan 1999 - Dec 2002) sponsored by UNDP with Technology support from Central Leather Research Institute, Chennai and infrastructure by Government of. Kamataka, the project objective was ensuring right price for the handcrafted footwear and transforming artisans to entrepreneurs, particularly women, ‘The core focus was economic development andthe core principal was build, operate and transfer. The ‘business front end and social back end needed constant balancing using an equality, equity and inclusive approach, ‘The outcome of this intense joint effort is ToeHold Artisans Collaborative (TAC), From a development perspective TAC has been a success. The operation has achieved revenue growth in recent years and is achieving marginal profits, which is shared among artisans and self help groups (SHGs) of women in Athani. Each of the ToeHold artisan’s household is an enterprise now. TAC is now a prominent player in the international market for ethnic footwear supplying international clientele in UK, Italy, Japan and Australia. A chief reason for this success has been its insightful ‘marketing vision deriving ‘high margins from small volumes' rather than small margins from high volumes, observes Raj Modi of London Schoo! of Economics and a business analyst now with KPMG In his. evaluation report as an interne. Key Resourees + Inall 175 women artisans were organized into 15 Self Help Groups (SHGs). Bach SHG had between 12 and 16 members, A total of 145 members were producers, with the remainder participating in the SHG groups as non-producers. “SHGs lend money to members with a priority on loans for production purpose over loans for consumptive use. The capital for these loans is provided by the savings of the members themselves. Interest rates are decided by the individual SHGs, which may vary between 2 and 2.5 per cent per month. The interest income from the loans to the members was then shared between all the SHG members (including the nnon-produeing members); in proportion to the savings’ they had contributed. The regular weekly savings, the eamed interest on loans and the earned bank interests kept the SHGs kitty growing * The common facility centre (CFC), which was located in Athani had two built-up sheds of 5000 square feet each, In one shed machines for sole cutting, stamping, stitching, drying ete hhad been installed. These machines helped in reducing drudgery, bringing in standardization and enhancing productivity without replacing the ethnicity and hand crafted skills of artisans. CFC also had a raw material bank for making available colored leather which was not available locally. Other accessories like lasts, packing material etc were also made available to artisans through CFC. The other shed had a design studio, office space for local staf, space for SHG meetings and records ete. + TAC has a dedicated staff of five to look after markets, production, quality control, SHG Coordinator and CPC operator. In addition a network of professionals and experts are available for advice. Key Processes ‘When clients were interested in placing an order with TAC, they either sent in their own design of picked the designs ftom the ToeHold website and sent it in along with the other specifications like order size, delivery schedule ete. This was cither done electronically through emails or as a hard copy (though very rarely) by post to the Bangalore office. The Marketing Manager then sent the design on a CD to Athani or Sometimes even went personally to Athan in case the designs and instructions were complex. He then coordinated the Manager - Operations at Athani, to convey the design specifications to the artisans He in turn, coordinated with the SHG coordinator, and with quality supervisor. Both these then called for a meeting of the leaders ofthe 15 self help groups and communicated the order and designs to them. One group was picked to make the sample, A master artisan usually expressed willingness to make the sample. Each group had a few master artisans whose skills far exceeded those of the others and usually they were picked to make the samples that needed to be sent back to the client for approvals. They then worked on the sample and sometimes suggested improvements to the design and sent it back to Bangalore. Marketing ‘Manager then dispatched the samples off tothe client. ‘The client, when satisfied with the samples, confirmed the order which was then communicated back to the team in Athan and the group leaders gathered once again to spit the order among the groups in a process similar to bidding. The leaders spilt the order among, 1 few groups. It important to note that, it was not compulsory for the artisans to accept the order and they usually made this decision based on i) the availability of spare capacity to produce within the deadline: ii) the availability of raw material and working capital for producing a particular type of footwear; ii) the availability of skills for making the particular design of footwear required for the order; and iv) the price they would get forthe order. ‘The artisans then bought materials like leather, threads, and glue and rented things like lasts and templates that were requited to complete the order. When there was a need for a special type of leather, they placed orders at the ‘Raw Material Bank’, which procured the same from dealers across the country in places like Chennai, Sangli, Mumbai ete. ‘The artisans then started working on the orders in their houses and Quality supervisor went around to the artisans’ houses to check on the quality periodically so that any problem could be fixed as carly as possible. Quality checks were performed at every stage of shoe making - cutting, pasting, lining and finishing. Most of quality checks were performed at the homes of the artisans and in cases of any deviations during the quality check, the group leaders were informed so that corrective action could be taken. Once the artisans completed the orders given to them, they then dropped off their consignments at the Athani operations office. A more stringent quality check was carried out by again here and corrective action taken. The footwear was then boxed and sent to Bangalore from where it was dispatched to the client. Profit Formula ‘TAC isa company which is owned by the SHGs, which are in tum owned by the artisans, TAC gets the order which will flow to the SHGs. The group then decides which artisans will get the orders, and there is quality control at the group level itself. The group is able to lend ‘money to the person who has got the order and the reimbursement happens at the SHG level ‘The artists got about a 10 per cent markup over their cost price when they sold the completed consignment to TAC. The orders were then sent to the client who then paid for the consignment. The profit from this was spilt in a 40-40-20 model. The artisans who worked on the order got 40 per cent of the profits, the SHG got 20 per cent which was used for loans to its members when in need and TAC retained 40 per cent of the profits which was used for various administrative expenses like salaries of the $ employees and part of the marketing expenses (see Exhibit 5 for the revenue split based on the sale of one pair of footwear, and Exhibit 6 for TAC’s monthly and annual expenses). Part of marketing expenses had come from the government as subsidy (see Exhibit 7. Strengths , Strong revenue growth - TAC has delivered notable business performance with revenues. Vindication of business model - The TAC business model with social back end is near self: sufficient in that the operation is adequately profitable for the business to run as a going ‘© Brand establishment - Establishing the ToeHold brand to symbolise the authentic handcrafted and high quality nature of the footwear products, + Closing the Digital Divide TAC is a B2B web driven model supported by participation in Intemational Trade Fairs has reached the footwear from obscure town to intemational fashion markets. IT enabling among rural women isa phenomenon that has exploded the myth “technology” = ‘men’, again gaining a competitive edge in marketing. + Show casing over 450 designs establishes the designing and quality production capability of group at once globally, builds confidence among visitors to the site. + Intemational customers - TAC has established a strong international customer base, consisting of clients in Europe, Japan and Australia, High product quality levels - TAC footwear products have maintained a consistently high level of product quality. ‘Innovative product design - Product designs have been receptive to customer demand and changing fashions. ‘©The development of an entrepreneurial environment within the groups has yielded greater self-respect amongst the artisans. They seem less fearful of authoritative bodies, and more ‘courageous in taking control over their own destinies. e.g. having saved money via the saving, and credit groups, the women now have confidently negotiated loans from the bank. + The environment of entrepreneurship has also fostered innovation amongst the artisans, being free to express their creativeness in coming up with new and radical sandal designs. Highly focused marketing ‘One of the main determinants of TAC's success has been its carefully targeted marketing approach. It Positions itself inthe international market for authentic, limited edition designer footwear. Its USP being the handerafted leather footwear, which is high quality and eco-friendly. In doing so, ‘TAC has rejected the sympathy market, ethnic markeis but entered a very highly competitive and

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