Download App

Enterprise Growth Strategies — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipEnterprise Growth Strategies5 Marks
Question
Explain any four factors that influence growth of an Enterprise.
✓

Answer

Factors influencing growth of an enterprise:
  1. Direct Competition: It refers to the competitions in which various enterprises producing close substitutes try to increase their sale of their product. Each tries to enhance its sale and tries to capture maximum possible consumers of the market e.g. Luxor, Flair, Camlin etc. are the companies which produce substitutes and each tries to capture maximum consumers of pen and other stationery items.
  2. Indirect Competition: It is a type of competition in which the enterprises compete not only for price but other references about the product. It is also referred as non price competition, e.g. Coca-Cola and Pepsi compete with each other in advertisements for persuading the customers. Any new advertisement of one company is normally followed by a fresh advertisement by another company.
  3. The consumer trends affect growth: Because of following reasons:
  • Change in consumption pattern: Due to change in season or changes in income the consumption pattern of the consumer changes. With change in seasons some specific products are demanded more e.g. demand for umbrella increases during rainy season.
  • Change in income: With the rise in income, new types of products, costlier products are demanded by the consumers. Such demand forces entrepreneurs to produce new products. This leads to growth.
  • Some enterprises are closed down: With the changing consumption pattern some enterprises become obsolete and are forced to quit the industry. This affects the production of the enterprise and the growth.
  1. Change in technology: To remain competitive, companies need to constantly upgrade their technology and business applications. To upgrade technology, a company need not always acquire technology. By buying another company with unique technology, the buying company can maintain or develop a competitive edge. Therefore technological changes adversely affect the growth of the enterprise as its dynamic in nature .
  2. Creativity: It means bringing something new into existence. It is a type of ability, which is present in all but in varying quantity. More are the creative persons of this ability, more are the chances of doing something new, or which was not present earlier, e.g. new painting of an artist. It also means bringing about certain improvements in already existing products.
  3. Innovation: It refers to performing a task in a new way. There may be many ways of doing a thing but the innovator always tries to do it in a new way or new method e.g. the products are packed by company but the company which makes its package consumer friendly compared to other is innovation.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "5 Marks Question" from Enterprise Growth Strategies→Enterprise Growth Strategies — all question types→Entrepreneurship STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

Answers to these questions should not exceed 250 words:
There is a Budget to suit every business and its need .Elucidate.
→
"Stock market contributes to better allocation of capital and intensities capital formation.” Do you agree? Explain.
→
Sapna runs a stall outside a shopping mall in which she sells two products sandwiches and Vadapav. Information regarding the cost and revenue are given below:
Total sales per day
200 sandwiches per day
150 Vadaspav per day
Unit price
45 per sandwiches
25 per vedaspav
Ingrediants and Material Requirment per sandwiches \ vadaspav respectively;
15 per sandwhiches
10 per vadaspav
Rent
₹ 1800
 
Salary
₹2300
 
Other fixed overhead Expenses
₹ 1500
 
Electricity
₹ 400
 
  1. Total Fixed Cost.
  2. Calculate Sales Mix.
  3. Contribution margin per unit of each product.
  4. Weighted average unit contribution margin.
  5. Calculate overall Break Even Point (in Units).
  6. Calculate Product wise Break Even Point (in Units) se Break Even Point (in Units).
  7. Calculate Product wise Break Even Point (in Rupees).
  8. Calculate BEP = TR = TC.
→
Steve Perlman, the inventor of Web TV, built his first home computer when he was only fifteen years old. In 1995, he created a working prototype of the Web TV box.
He and a fried Bruce Leak, started a firm with another friend Phil Goldman and began to sell Web TV out of the guest bedroom in Perlman's house. Perlman, being something of a mad scientist, buried himself in development and let his partners worry about the money. By 1997, Perlman had raised and burned through $ 46 million developing Web TV. Luckily, thats when Microsoft's came calling. Joining Microsoft's team netted Perlman and his two partners around $ 70 million a piece. Identify the type of venture. Discuss its suitability and characteristics.
→
Explain the disadvantages of franchising to the franchisee.
→
Business activities which are done mainly for economic consideration can be classified into manufacturing, service and trading. Explain each of them.
→
Explain the following features of a cooperative society:
  1. Democratic management
  2. Capital and return thereon
  3. Distribution of surplus
→
Which questions are answered by a production plan for a Retail Operation or Service?
→
New trend Electronics shop sold in one day following items at the prices indicated:
Product
Number of Customers
Tota;l amount Billed(₹)
Average amount billed (₹) per customer
Electrical switches
12
2400
200
Dome camera
3
9000
3000
PVC Cables
12
6000
500
Insulated Cables
8
4800
600
LED Bulb
13
7800
600
LED Tubleight
16
3200
200
Junction Boxes
4
4000
1000
Portable Lamp Stands
2
600
300
Total
70
37,800
  
The Shopkeeper also found out, based on the number of bills issued by him, that there were 70 customers. If customer is the unit of sale. What is the unit price? If the cost of each stationery item is 70% of the selling price.
Calculate:
  1. Unit Price.
  2. Unit Cost.
  3. Gross Margin per unit of sale.
→
How will you show that market mix is dependant on the type of the product?
→