Q.01 (a) What is Planning? Explain various steps involved in Planning.

Planning is the process of setting objectives and determining the best course of action to
achieve them. It involves deciding in advance what to do, how to do it, when to do it,
and who will do it. Planning provides direction, reduces risks, and ensures effective
utilization of resources.

Steps involved in Planning:

1. Setting Objectives: Clearly define the goals that need to be achieved.

2. Establishing Planning Premises: Assess the environment and make assumptions about
future conditions.
3. Identifying Alternatives: Develop various potential courses of action.
4. Evaluating Alternatives: Analyze the strengths, weaknesses, and feasibility of each
alternative.
5. Selecting the Best Alternative: Choose the most appropriate course of action.
6. Formulating Supporting Plans: Create sub-plans (e.g., financial, marketing, and
operational plans) to support the main plan.
7. Implementing the Plan: Execute the plan by assigning responsibilities and allocating
resources.
8. Monitoring and Revising: Regularly check the progress and make necessary
adjustments.

Q.01 (b) Explain the roles of a manager.

A manager plays multiple roles, broadly categorized by Henry Mintzberg into three areas:

1. Interpersonal Roles:

 Figurehead: Representing the organization at formal events.

 Leader: Motivating and guiding employees.
 Liaison: Building networks within and outside the organization.

2. Informational Roles:

 Monitor: Gathering and analyzing information.

 Disseminator: Sharing important information within the organization.
 Spokesperson: Communicating on behalf of the organization to external parties.

3. Decisional Roles:

 Entrepreneur: Initiating and encouraging innovation.

 Disturbance Handler: Resolving conflicts and crises.
 Resource Allocator: Distributing resources effectively.
 Negotiator: Handling negotiations with other entities.
Q.01 (c) Distinguish between Management and Administration.

Aspect Management Administration

Formulating policies and setting
Definition Process of executing plans and policies.
objectives.
Scope Narrow, operational focus. Broad, policy-focused.
Level Middle and lower-level activity. Top-level activity.
Decision-making and goal
Focus Efficiency and results.
setting.
Determinative, focuses on
Nature Executory, focuses on doing.
thinking.
Operates within the framework set by
Authority Determines goals and policies.
administration.

Q.02 (a) Explain various functions of Management.

Management functions are essential activities that ensure the effective running of an
organization. Henri Fayol outlined five major functions, which are commonly
categorized into four today:

1. Planning:
o This involves setting goals, formulating strategies, and determining actions to achieve the
objectives.
o It provides a blueprint for decision-making and helps in risk management.
o Example: A company planning to launch a new product will define target markets, production
schedules, and promotional strategies.
2. Organizing:
o Structuring resources (human, physical, and financial) to implement the plan effectively.
o Involves assigning tasks, delegating authority, and establishing workflows.
o Example: Creating different departments like sales, production, and finance to streamline
operations.
3. Staffing:
o Concerned with recruitment, selection, training, and development of employees.
o Ensures that the organization has the right people in the right roles.
o Example: Hiring skilled professionals and providing necessary training programs.
4. Leading (Directing):
o Involves motivating and guiding employees to achieve organizational goals.
o Requires communication, leadership, and conflict resolution.
o Example: A manager inspiring the team to meet project deadlines through effective
communication and incentives.
5. Controlling:
o Monitoring and evaluating performance to ensure that objectives are met.
o Includes setting performance standards, measuring results, and implementing corrective
actions when necessary.
o Example: Conducting regular performance reviews to track progress and make adjustments.
Q.02 (b) Explain the types of decision making.

Decision making is the process of selecting the best course of action among alternatives. It
can be categorized into several types:

1. Strategic Decisions:
o Long-term, high-impact decisions that affect the overall direction of the organization.
o Example: Expanding into international markets.
2. Tactical Decisions:
o Mid-level decisions focused on how to implement strategic plans.
o Example: Launching a marketing campaign for a new product.
3. Operational Decisions:
o Day-to-day decisions related to routine operations.
o Example: Scheduling employee shifts or managing inventory.
4. Programmed Decisions:
o Repetitive decisions based on established rules or guidelines.
o Example: Approving leave requests based on company policy.
5. Non-Programmed Decisions:
o Unique, non-routine decisions requiring creative solutions and judgment.
o Example: Handling a product recall or responding to a competitor's unexpected move.
6. Financial Decisions:
o Decisions regarding resource allocation and financial management.
o Example: Budgeting for new technology investments.

Q.02 (c) List and explain managerial skills with the help of a skill-mix
diagram.

Managers require a combination of skills to effectively perform their roles. These skills can
be classified into three categories:

1. Technical Skills:
o Ability to perform specialized tasks.
o Important at lower management levels.
o Example: An IT manager knowing how to code or troubleshoot software issues.
2. Human (Interpersonal) Skills:
o Ability to work effectively with others and build relationships.
o Essential at all levels of management.
o Example: A manager resolving conflicts or motivating team members.
3. Conceptual Skills:
o Ability to think strategically, analyze complex situations, and make data-driven decisions.
o Critical at top management levels.
o Example: A CEO developing a long-term vision for the company.

Skill-Mix Diagram:

 Top-Level Management:
o High Conceptual Skills, moderate Human Skills, low Technical Skills.
 Middle-Level Management:
o Balanced mix of Conceptual, Human, and Technical Skills.
 Lower-Level Management:
o High Technical Skills, moderate Human Skills, low Conceptual Skills.

Diagram Representation:

yaml
Copy code
Conceptual Skills
▲
|
|
Human Skills ◄────┼────► Technical Skills
|
▼
Lower-Level

Q.03 (a) What is Organization? Explain the Principles of Organization.

Organization is the process of arranging and coordinating resources (people, materials,

and technology) to achieve the objectives of a business efficiently. It involves defining
roles, responsibilities, and establishing authority relationships.

Principles of Organization:

1. Unity of Objective:
o All organizational activities should align with the overall goals.
o Example: If the objective is to increase market share, all departments must contribute towards
that goal.
2. Division of Work:
o Tasks are divided into smaller jobs, allowing specialization and efficiency.
o Example: A manufacturing unit dividing work into assembly, quality control, and packaging.
3. Span of Control:
o Refers to the number of subordinates a manager can effectively supervise.
o Narrow spans are suitable for complex tasks, while broader spans work for simpler ones.
4. Authority and Responsibility:
o Authority must match responsibility. Managers should have the power to make decisions
corresponding to their duties.
5. Scalar Chain:
o There should be a clear chain of command from the top to the bottom of the organization.
o Example: Employees report to supervisors, who report to managers, creating a hierarchy.
6. Unity of Command:
o Each employee should receive orders from one superior only to avoid confusion.
7. Flexibility:
o The organizational structure should adapt to environmental changes.
8. Coordination:
o All departments and activities must work in sync to achieve common goals.
9. Simplicity:
o The structure should be simple and clear, avoiding unnecessary complexity.
10. Delegation of Authority:
 Authority must be delegated to subordinates to facilitate quick decision-making and efficiency.

Q.03 (b) Define Recruitment. Explain the steps involved in the selection
process.

Recruitment is the process of attracting, screening, and selecting qualified individuals for
a job. It ensures the organization has the right talent to achieve its objectives.

Steps in the Selection Process:

1. Job Analysis and Description:

o Define job roles, required skills, and qualifications.
2. Sourcing Candidates:
o Use internal promotions, employee referrals, job portals, or recruitment agencies.
3. Screening and Shortlisting:
o Review resumes and applications to shortlist suitable candidates.
4. Preliminary Interview:
o Conduct initial interviews to assess the basic qualifications and fit for the role.
5. Testing (if applicable):
o Assess technical skills, aptitude, or personality through tests.
6. Formal Interview:
o In-depth interviews by the HR team and department heads.
7. Reference and Background Check:
o Verify past employment, educational qualifications, and criminal records.
8. Job Offer and Negotiation:
o Offer the selected candidate a formal job letter and negotiate terms if necessary.
9. Onboarding and Orientation:
o Integrate the new employee into the organization through training and orientation

Q.04 (a) With the help of a diagram, explain Maslow’s Need Hierarchy
Theory with examples.

Maslow’s Hierarchy of Needs is a psychological theory that explains human motivation. It

suggests that people are driven by a hierarchy of needs, progressing from basic to
higher-level needs.

Diagram:

Self-Actualization
(Creativity, growth)
------------------------
Esteem Needs
(Recognition, respect)
------------------------
Social Needs
(Relationships, belonging)
------------------------
 Safety Needs
(Security, health, stability)
------------------------
Physiological Needs
(Food, water, shelter)

Explanation of Needs (Bottom to Top):

1. Physiological Needs:
o Basic survival needs like food, water, and shelter.
o Example: Employees expect fair wages to cover living expenses.
2. Safety Needs:
o Security, stability, and protection.
o Example: Job security, health insurance, and safe working conditions.
3. Social Needs (Belongingness):
o Need for relationships, love, and social connections.
o Example: Teamwork, company outings, and supportive management.
4. Esteem Needs:
o Recognition, respect, and self-confidence.
o Example: Promotions, awards, and employee recognition programs.
5. Self-Actualization:
o Fulfillment of personal potential and creativity.
o Example: Opportunities for growth, innovation, and leadership roles.

Q.04 (b) Define Controlling. Explain essentials of an effective control

system.

Controlling is the process of monitoring and evaluating organizational performance to

ensure goals are achieved. It involves comparing actual performance with planned
objectives and taking corrective actions if necessary.

Essentials of an Effective Control System:

1. Goal-Oriented:
o The system must align with organizational objectives.
o Example: A sales target monitoring system.
2. Accuracy:
o Control measures should provide accurate and reliable data.
o Example: Financial audits ensure accuracy in accounting.
3. Timeliness:
o Control should provide information quickly to allow timely corrective action.
o Example: Monthly performance reports.
4. Flexibility:
o The system must adapt to changes in the environment or objectives.
o Example: Adapting marketing strategies in response to competitor actions.
5. Simplicity:
o The control process should be simple to understand and implement.
6. Cost-Effectiveness:
o The benefits of the control system should outweigh its costs.
7. Focus on Critical Areas:
o Key performance areas (KPAs) should receive more attention.
o Example: Focusing on customer satisfaction metrics in service industries.
8. Corrective Action:
o Effective control systems lead to prompt corrective actions when deviations occur.
9. Participation and Communication:
o Employees at all levels should understand and participate in the control process.
o Example: Transparent feedback systems.
10. Continuous Monitoring:

 Control should be an ongoing process, ensuring continuous improvement.

Q.05 (a) Describe the social responsibility of business towards different

groups.

Social responsibility refers to the ethical obligation of businesses to contribute positively to

society and consider the impact of their operations on various stakeholders. It goes
beyond profit-making to ensure the well-being of the community, environment, and
society at large.

Social Responsibility towards Different Groups:

1. Responsibility towards Shareholders/Owners:

o Ensure profitability and sustainable growth.
o Provide timely and accurate information about financial performance.
o Example: Transparent annual reports and dividend distribution.
2. Responsibility towards Employees:
o Fair wages, safe working conditions, and opportunities for growth.
o Promote employee welfare, equality, and job security.
o Example: Providing health insurance and professional development programs.
3. Responsibility towards Customers:
o Deliver high-quality, safe, and fair-priced products or services.
o Ensure truthful advertising and ethical business practices.
o Example: Implementing product recalls for safety issues.
4. Responsibility towards Government:
o Abide by laws and regulations, pay taxes on time, and avoid corruption.
o Cooperate in nation-building efforts.
o Example: Adhering to environmental laws and labor regulations.
5. Responsibility towards Society and Community:
o Support social causes, promote education, and engage in community development.
o Example: Running CSR (Corporate Social Responsibility) initiatives like skill
development programs.
6. Responsibility towards Environment:
o Minimize pollution and environmental degradation.
o Adopt sustainable practices and reduce carbon footprints.
o Example: Switching to renewable energy sources or recycling initiatives.
Q.05 (b) What are the essential characteristics that define a successful
entrepreneur?

Successful entrepreneurs possess unique characteristics that enable them to innovate, take
risks, and turn ideas into profitable ventures.

Essential Characteristics of a Successful Entrepreneur:

1. Vision and Passion:

o Strong passion for their ideas and a clear vision for future growth.
o Example: Elon Musk's drive for innovation in electric vehicles.
2. Risk-Taking Ability:
o Willing to take calculated risks and face uncertainties.
o Example: Launching a new product in an untested market.
3. Creativity and Innovation:
o Ability to think outside the box and create novel solutions.
o Example: Developing disruptive technologies or services.
4. Resilience and Perseverance:
o Overcoming failures and learning from setbacks.
o Example: Entrepreneurs who rebuild businesses after failures.
5. Leadership and Decision-Making Skills:
o Guiding teams, making crucial decisions, and inspiring employees.
o Example: Strong leadership during challenging times.
6. Networking and Communication Skills:
o Building strong relationships with customers, investors, and stakeholders.
o Example: Engaging with venture capitalists to secure funding.
7. Goal-Oriented Approach:
o Setting realistic goals and striving to achieve them efficiently.
o Example: Creating short- and long-term objectives to track progress.
8. Market Knowledge and Awareness:
o Deep understanding of market trends and customer needs.
o Example: Entrepreneurs who adapt their products based on market feedback.

Q.06 (a) What are some common myths about entrepreneurship?

Entrepreneurship is often surrounded by myths that can create false perceptions.

Common Myths about Entrepreneurship:

1. Entrepreneurs are Born, Not Made:

o Reality: Entrepreneurship can be learned through experience, education, and practice.
o Example: Many successful entrepreneurs started with little knowledge but developed
skills over time.
2. Entrepreneurs are High Risk Takers:
o Reality: Entrepreneurs take calculated, manageable risks.
o Example: They conduct market research and feasibility studies before investing.
3. You Need a Lot of Money to Start:
o Reality: Many businesses start small with minimal capital and grow gradually.
o Example: Startups often begin in garages or homes with low initial investment.
4. Entrepreneurs Work Alone:
o Reality: Successful entrepreneurs build teams and rely on partnerships.
o Example: Co-founders and teams contribute significantly to business success.
5. A Great Idea is All You Need:
o Reality: Execution and perseverance are equally important as having a great idea.
o Example: Many ideas fail without proper implementation and market validation.
6. Entrepreneurship Guarantees Wealth:
o Reality: Success is not immediate, and many ventures face financial challenges.
o Example: Some entrepreneurs take years to see significant profits.

Q.06 (b) Explain key stages of the Entrepreneurial Development Cycle.

The Entrepreneurial Development Cycle outlines the journey of an entrepreneur from idea
generation to business growth.

Key Stages:

1. Idea Generation:
o Brainstorming new concepts or identifying gaps in the market.
o Example: Noticing unmet customer needs and devising solutions.
2. Feasibility Study and Market Research:
o Testing the practicality and demand for the idea.
o Example: Conducting surveys or pilot programs.
3. Business Plan Development:
o Creating a detailed roadmap that outlines business goals, strategies, and financial
projections.
o Example: A business plan for pitching investors.
4. Resource Mobilization:
o Gathering necessary resources such as capital, manpower, and technology.
o Example: Securing funding from investors or banks.
5. Implementation and Launch:
o Turning plans into reality by starting operations and entering the market.
o Example: Officially launching the product or service.
6. Growth and Expansion:
o Scaling the business by expanding market reach or introducing new products.
o Example: Opening new branches or diversifying product lines.
7. Sustainability and Maturity:
o Ensuring long-term profitability and adapting to changing market conditions.
o Example: Reinvesting profits for continuous innovation.
8. Exit Strategy (Optional):
o Exiting the business through mergers, acquisitions, or selling shares.
o Example: Entrepreneurs selling their companies to larger firms.

Q.07 (a) Explain the problems faced by Small Scale Industries (SSI).

Small Scale Industries (SSI) play a critical role in economic development but face
numerous challenges that hinder their growth and sustainability.

Problems Faced by SSI:

1. Financial Constraints:
o Limited access to credit and high interest rates restrict expansion and modernization.
o Example: Difficulty in securing loans from banks due to lack of collateral.
2. Lack of Skilled Labor:
o Inadequate skilled workforce leads to low productivity and quality issues.
o Example: Many SSIs operate with untrained workers, affecting efficiency.
3. Technological Obsolescence:
o Outdated technology reduces competitiveness and increases production costs.
o Example: Manual machinery instead of automated systems.
4. Marketing Challenges:
o Limited market reach and competition from large-scale industries make it hard to sell
products.
o Example: Inability to market products internationally.
5. Raw Material Shortages:
o Inconsistent supply and rising costs of raw materials disrupt production.
o Example: Shortage of essential materials like steel or cotton.
6. Regulatory Burden:
o Complex government regulations, taxes, and compliance requirements create
difficulties.
o Example: Multiple clearances required to start operations.
7. Infrastructure Issues:
o Poor infrastructure such as lack of power, transport, and communication facilities.
o Example: Frequent power cuts in rural areas hinder production.
8. Competition from Large Enterprises:
o Large firms with better resources often dominate markets, marginalizing SSIs.
o Example: Multinational companies producing similar goods at lower prices.
9. Delayed Payments:
o Payments from customers or larger firms are often delayed, affecting cash flow.
o Example: SSIs waiting months for payments from large corporations.
10. Lack of R&D and Innovation:

 Minimal investment in research and development limits innovation and growth.

 Example: SSIs relying on traditional methods rather than innovative processes.

Q.07 (b) Explain Financial Feasibility and Technical Feasibility.

1. Financial Feasibility:
o Assesses whether the business idea is economically viable and profitable.
o It evaluates the cost of resources, projected income, and funding availability.
o Key Aspects:
 Capital requirements (start-up costs).
 Break-even analysis.
 Return on investment (ROI).
 Funding sources (loans, investors, grants).
o Example:
 A business plan showing profitability within two years through cost reduction and
steady market demand.
2. Technical Feasibility:
o Determines if the business has the necessary technology, skills, and capacity to produce
goods or services.
o It evaluates production processes, equipment, and workforce capabilities.
o Key Aspects:
 Availability of technology.
 Production capacity and scalability.
 Technical know-how and expertise.
 Raw material sourcing.
o Example:
 A feasibility study for manufacturing solar panels assessing the availability of raw
materials and trained engineers.

Q.08 (a) Explain the Impact of Globalization and WTO on Small Scale
Industries (SSI) in India.

Impact of Globalization on SSI:

Globalization has opened opportunities for SSIs by providing access to international
markets but also introduced several challenges.

Positive Impacts:

1. Market Expansion:
o SSIs can export products globally, increasing revenue streams.
o Example: Indian handicrafts gaining international popularity.
2. Technological Advancement:
o Access to global technology improves production and efficiency.
o Example: Adoption of automated machinery from international markets.
3. Improved Quality Standards:
o Global competition pushes SSIs to improve product quality.
o Example: Certification processes like ISO enhance credibility.

Negative Impacts:

1. Increased Competition:
o SSIs face competition from global giants with better resources.
o Example: Chinese products flooding Indian markets.
2. Price Wars:
o International players often produce at lower costs, forcing SSIs to reduce prices.
3. Dependency on Imports:
o SSIs depend on imported raw materials, which can lead to price volatility.

Impact of WTO (World Trade Organization) on SSI:

WTO's trade agreements and liberalization policies have both benefits and drawbacks
for SSIs.

Positive Impacts:

1. Export Promotion:
o WTO agreements promote free trade, allowing SSIs to export without heavy tariffs.
o Example: Indian textile exports benefiting from reduced duties.
2. Intellectual Property Protection:
o WTO's TRIPS (Trade-Related Aspects of Intellectual Property Rights) protects
innovations by SSIs.

Negative Impacts:

1. Loss of Protectionism:
o WTO limits protective measures like subsidies, exposing SSIs to global competition.
o Example: Reduced government protection in sectors like agriculture and textiles.
2. Standardization Pressures:
o SSIs must comply with international standards, which can be costly.

Q.08 (b) What factors contribute to creating favorable business

opportunities in India?

India offers a conducive environment for businesses due to various economic, social, and
political factors.

Key Factors Contributing to Favorable Business Opportunities:

1. Growing Economy:
o India is one of the fastest-growing economies, with a rising middle class and increasing
consumer demand.
o Example: Growth in the e-commerce sector driven by higher purchasing power.
2. Government Support and Policies:
o Initiatives like Make in India, Startup India, and MSME incentives promote
entrepreneurship.
o Example: Tax benefits and subsidies for new ventures.
3. Large Market Size:
o India’s large population provides a vast market for products and services.
o Example: The booming telecom and automobile industries.
4. Technological Advancements:
o India is advancing in technology and digitalization, boosting opportunities in IT, AI, and
fintech.
o Example: Growth in the software export industry.
5. Skilled Workforce:
o India has a large pool of skilled and semi-skilled labor across industries.
o Example: Engineering and IT graduates fueling the tech industry.
6. Infrastructure Development:
o Ongoing investments in infrastructure (roads, ports, and electricity) create business
opportunities.
o Example: Development of smart cities enhancing industrial growth.
7. Foreign Direct Investment (FDI):
o Liberalized FDI policies attract global investors.
o Example: FDI in sectors like retail, defense, and telecommunications.
8. Diverse Sectors for Growth:
o India offers opportunities across diverse sectors, including agriculture, manufacturing,
healthcare, and services.
9. Entrepreneurial Culture:
o India’s entrepreneurial spirit is supported by incubators, accelerators, and funding
agencies.
o Example: Rapid growth in startups, especially in fintech and edtech.
10. Strategic Location:

 India’s geographic location facilitates trade and export to Southeast Asia, the Middle
East, and Africa.

Q.09 (a) Explain Government Schemes for Funding Business.

The Government of India has launched various schemes to support businesses, particularly
startups and MSMEs (Micro, Small, and Medium Enterprises). These schemes provide
financial assistance, promote innovation, and foster entrepreneurship.

Key Government Schemes for Funding Business:

1. Startup India Initiative:

o Aims to foster innovation, support startups, and create jobs.
o Benefits:
 Tax exemptions for three years.
 Access to a ₹10,000 crore fund.
 Fast-tracked patent applications and reduced fees.
2. Pradhan Mantri Mudra Yojana (PMMY):
o Provides financial assistance to small businesses.
o Loan Categories:
 Shishu (up to ₹50,000), Kishore (₹50,000 – ₹5 lakh), Tarun (₹5 lakh – ₹10 lakh).
o Focus: Non-corporate, non-farm small/micro enterprises.
3. Stand-Up India Scheme:
o Promotes entrepreneurship among SC/ST and women entrepreneurs.
o Funding: Loans between ₹10 lakh to ₹1 crore for greenfield enterprises.
4. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):
o Provides collateral-free credit to MSMEs.
o Coverage: Up to 75% of the credit facility.
5. PMEGP (Prime Minister’s Employment Generation Programme):
o Aims to generate self-employment through micro-enterprise creation.
o Funding: 15% to 35% subsidy based on the project cost.
6. National Small Industries Corporation (NSIC) Schemes:
o Facilitates credit support, marketing, and technology upgradation.
o Example: Raw Material Assistance Scheme.
7. DIC (District Industries Centre) Loans:
o Supports small businesses at the district level through financial aid and mentorship.

Q.09 (b) Explain Steps in PERT. Explain Advantages and Limitations of

PERT.
PERT (Program Evaluation and Review Technique) is a project management tool used
to plan, schedule, and control complex projects. It focuses on identifying the minimum
time needed to complete a project.

Steps in PERT:

1. Define Project Activities:

o Break down the project into smaller, manageable activities.
2. Determine Activity Sequence:
o Establish dependencies and the order of activities.
3. Estimate Time for Activities:
o Use three time estimates:
 Optimistic Time (O) – Minimum time if everything goes well.
 Pessimistic Time (P) – Maximum time if problems arise.
 Most Likely Time (M) – Time under normal conditions.
o Formula for Expected Time: TE=O+4M+P6TE = \frac{O + 4M +
P}{6}TE=6O+4M+P
4. Construct the PERT Network:
o Draw the network diagram to represent project flow.
5. Identify the Critical Path:
o Find the longest path through the network.
6. Monitor and Update:
o Continuously update as the project progresses.

Advantages of PERT:

 Visualization: Provides a clear graphical representation of project tasks.

 Risk Analysis: Accounts for uncertainty with three time estimates.
 Improved Scheduling: Identifies critical and non-critical tasks, optimizing resource
allocation.
 Efficient Time Management: Highlights potential delays and suggests corrective
actions.

Limitations of PERT:

 Complexity: PERT can become complicated for large projects.

 Time-Consuming: Requires detailed analysis and constant updating.
 Subjectivity: Time estimates are subjective and may lead to inaccuracies.
 Resource Overlook: Focuses on time, often ignoring resource allocation.

Q.10 (a) What are the biggest challenges entrepreneurs face when starting
their own business?

Entrepreneurs face numerous challenges during the initial phases of their ventures.

Key Challenges Faced by Entrepreneurs:

1. Lack of Capital:
o Difficulty in securing initial funding.
o Solution: Bootstrapping, venture capital, or government schemes.
2. Market Competition:
o Facing competition from established businesses.
o Solution: Focus on innovation and unique value propositions.
3. Uncertain Demand:
o Difficulty in predicting market demand.
o Solution: Conduct market research and pilot programs.
4. Building the Right Team:
o Recruiting skilled employees.
o Solution: Offer equity, build company culture, and provide training.
5. Regulatory and Compliance Issues:
o Navigating legal formalities and government regulations.
o Solution: Hire consultants and stay updated on industry regulations.
6. Time Management:
o Balancing multiple tasks and priorities.
o Solution: Use project management tools and delegate tasks.
7. Scaling Operations:
o Managing growth without compromising quality.
o Solution: Plan for gradual scaling and automate processes.

Q.10 (b) Why do some Business Plans Fail?

A business plan is a blueprint for success, but many fail due to several reasons.

Reasons for Business Plan Failure:

1. Unrealistic Goals:
o Setting unattainable objectives leads to disappointment and resource wastage.
2. Lack of Market Research:
o Failing to understand market needs and trends.
3. Poor Financial Planning:
o Inaccurate budgeting and unrealistic revenue projections.
4. Ignoring Competitors:
o Underestimating competitors' strengths and market presence.
5. Weak Execution:
o Lack of clear action plans and accountability.
6. Failure to Adapt:
o Inability to pivot based on feedback or market changes.
7. Insufficient Marketing Strategy:
o Failing to effectively promote the product or service.

Q.10 (c) Distinguish between PERT and CPM.

 Aspect PERT CPM (Critical Path Method)
Cost and time (trade-off
Focus Time (scheduling and planning)
analysis)
Research and development, new Construction, repetitive
Type of Project
projects projects
Time
Probabilistic (three estimates) Deterministic (single estimate)
Estimation
Nature of Tasks Non-repetitive, unpredictable tasks Repetitive, predictable tasks
Critical Path Can change based on time estimates Fixed critical path
Goal Minimize project duration Minimize cost and time
Application R&D, software development Construction, manufacturing

Example:

 PERT: Launching a new product with uncertain development phases.

 CPM: Constructing a building where activities and durations are known.