UNIVERSITY EXAMINATIONS: 2019/ 2020
EXAMINATION FOR THE DEGREE OF BACHELOR OF SCIENCE IN
INFORMATION TECHNOLOGY/ BUSINESS INFORMATION
TECHNOLOGY/ APPLIED COMPUTING/ SOFTWARE DEVELOPMENT/
INFORMATION SECURITY & FORENSCIS
BIT 2306/ BUSS 107/ BSD 1303/ KCA 004/ BAC 1306:
ENTREPRENERUSHIP SKILLS
FULL TIME/PART TIME/DISTANCE LEARNING
DATE: MAY, 2020 TIME: 6 HOURS
INSTRUCTIONS: Answer ALL Questions
SECTION B: 20 MARKS
QUESTION ONE
NOTHING UNIQUE TO OFFER.
During the past four months, George has been putting together his plan for a new venture.
George wants to open a pizzeria near the local university. The area has three pizza enterprises,
but George is convinced that demand is sufficient to support a fourth.
The major competitor is a large national franchise unit that – in addition to its regular food service menu of pizzas, salads, soft drinks, and desserts – offers door-to –door delivery. This
delivery service is very popular with the university students and has helped the franchise unit
capture approximately 40 percent of the students market. The second competitor is a “pizza
wagon” that carries precooked pizzas. The driver circles the university area and sells pizzas on
first come, first basis. The pizza wagon starts the evening with 50 pizzas of all varieties and sizes
and usually sells 45 of them at full price. The last 5 are sold for whatever they will bring. It
generally takes the wagon all evening to sell the 50 pizzas, but the profit make up is much higher
than that obtained from the typical pizza sales at the franchise unit. The other competitor offers
only in- house services, but it is well known for the quality of its food.
George does not believe that it is possible to offer anything unique. However, he does believe
that a combination of door-to –door delivery and high quality, in-house service can help him win
15-20percent of the local market. “Once the customers begin to realize that pizza is pizza,”
George told his partner, “we’ll begin to get more business. After all, if there is no difference
between one pizza place and another, they might just as well eat at our place.”
Before finalizing his plans, George would like to bring in one more partners. “You can never
have too much initial capital,” he said. “You never know when you’ll have unexpected
expenses.” But the individual whom George would like as a partner is reluctant to invest in the
venture. “You really don’t have anything unique to offer the market,” he told George. “You’re
just another ‘me too’ pizzeria, and you’re not going to survive.” George hopes he will be able to
change the potential investor’s mind, but if he is not, George believes he can find someone else.
“I have 90 days before I intend to open the business, and that’s more than enough time to line up
the third partner and get the venture under way,” he told his wife yesterday.
Questions:
1. Is there any truth to the potential investor’s comment? Is the lack of uniqueness going to hurt
George’s chances of success? Explain. (5Marks)
2. If George was going to make his business venture unique, what steps might he take? Be
complete in your answer. (5Marks)
3. In addition to the uniqueness feature, what other critical factors is George overlooking?
Describe them and give your recommendations for what do about them. (10Marks)
SECTION C: 20 MARKS
QUESTION ONE
Entrepreneurship is the cornerstone of the free enterprise system. Research has found that nearly
500 million adults around the globe were engaged in some form of entrepreneurial activity.
Entrepreneurs are therefore vitally important to the economic health for every nation. Discuss the
relevance of this statement and relate to your country. (20Marks)