Entrepreneurial Opportunity — Entrepreneurship STD 12 Commerce — Question

Describe briefly the formats for the business plan that a start-up may have.

An individual wants to start an enterprise that manufactures steam iron which can be imported from Germany. The material available in Germany is a little better in quality. However, there are no safety issues with the one available in India, which material would you go for and why? (social responsibility, import substitution).

Calculate Return on Investment (Rol) and Return on Equity (RoE) on the basis of given information. You have newly started a beauty parlour business, you spend ₹1,50,000 to open the parlour of which you invested ₹70,000 of your own money and borrowed a loan for ₹80,000. Interest rate per annum is 7%. Sales revenue per month is₹ 80,000. Cost of goods sold is₹ 30,000 per month. Fixed expenses is ₹30,000 (salary ₹20,000, rent and utility ₹10,000), depreciation₹ 3,000 and tax @ 14%. What values are exhibited by the business by being able to achieve such ratios?

‘Dhanwantri Ayurveda Ltd. (DAL)’ are the manufacturers of soaps, detergents, dental care products, cosmetics, grocery products and even medicines based on Ayurveda. It has grown since its inception. The reasons for the growth and popularity of DAL can be attributed to the fact that it started its operations at a time when the Government in the country is moving towards making the country self-reliant. DAL is following government initiatives like ‘Make in India’ campaign. Government is promoting Ayurveda through the ‘‘Ayush Ministry’’ that promotes Yoga, Ayurveda and other traditional and complementary medicines. This gives DAL a huge boost as it itself claims to be an Ayuredic company. DAL’s input cost increases or decreases based on the taxation policies of the government. Implementation of Goods and Services Tax (GST) has benefited DAL as the genre of DAL is not taxable. With inflation rate increasing continuously, people are looking for cheaper and effective substitutes which are provided by the extensive range of products provided by DAL. The people of India are becoming more health conscious and want to consume organic products. The company focuses only on retailing in India through its own retail chain stores and also through online mode through its E-commerce website AyurPro. The detergent products of the company are non-polluting. The packing material used for the products is also biodegradable. DAL has a separate department to prosecute and get penalized those who misrepresent its brand and its name.
Quoting lines from the paragraph, analyse the success of Dhanwantri Ayurveda Ltd. (DAL) on the basis any four points of the PESTEL Model.

What is working capital? What is the need for working capital? What value is exhibited by the business by maintaining adequate working capital?

Explain the benefits of CRM. Which values stand highlighted if an enterprise has an effective CRM system in place?

Explain how ‘Political factors’ and ‘Economic factors’ help in scanning the environment.

What is a feasibility plan? Why does the entrepreneur need a feasibility plan?

'Karta has unlimited liability but also has too much power over the business. He can break or make the family business'. Comment. If the Karta does not act in a responsible way, what values are ignored by him?

An opportunity may be derived from the needs and problems of the society. Comment. What values are fulfilled by the entrepreneur?