Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Shahida, a student of School of Rug Weaving Institute, Turkey, visited her grandparents in Kashmir for the first time. Breathtaking mountain scenery, clear lakes, lush vegetation and magnificent forests mesmerized her The valley is home to a rich biodiversity including a large number of bird species, many of which are unique to Kashmir. it is home to Yak and sheep that are taken care of by Nomads. Kashmiri lifestyle is essentially slow paced and reflects religious diversity. Kashmiris are known to enjoy their music in its various local forms, and the traditional dress of both genders is often quite colourful. Tulip, Saffron, dry fruits and artistic woodwork are its hallmark.
She also observed that the government was stable and all the tourist places were well guarded by the army.
She found it to be an ideal place to start a unit for carpet weaving and employ local people to preserve the ethnic touch. After the devastating floods a considerable population was rendered jobless, her unit would help to revive their economic condition. She started scanning and screening the environment and collected the following information.

1. Help her categorize the information making use of PESTEL MODEL.
2. Also state a value communicated by Shahida.

Assuming that you wish to start a small scale industry for manufacturing and selling detergent powder, discuss how would you seek support of financial institutions.

Explain the reasons for business failures.

Jumbo Jee Company started a business of making three type of sauces Soya Sauce, White Sauce, Tomato Sauce. Fixed costs are 12,90,000 per year. Sales revenue and variable costs per unit are as follows:

	Soya Sauce	White Sauce	Tomato Sauce
Sales Price (₹)	80	45	60
Variable Costs	40	15	15
Bottle	100	40	60

From the following information calculate :

1. Prepare an income statement for calculating gross contribution margin for all product.
2. Contribution margin per unit
3. Contribution margin for 20 bottles
4. Over all Break-even point
5. Statement showing at break even, fixed expenses = contribution margin.

Explain the reasons for mergers and acquisitions.
OR
Why do companies merge with or acquire other companies?

While selecting a brand name, what care must be taken by a entrepreneur?

A beauty parlour had varying number of customers during 5 weeks. This information and the total weekly billing are in the following table. What are the 'unit of sale' and the unit price in this case? the cost of goods sold or variable cost is 60% of the sale price, calculate the 'unit cost' and the gross margin' per unit of sales.

Weeks	Number of customers	Total amount billed (₹)	Average amount billed (₹) per customer
Week 1	10	1,000	100
Week 2	17	1,445	85
Week 3	13	923	71
Week 4	22	5,082	231
Week 5	18	3,150	175
Total	80	11,600

Samar has started his business one year back and deals in artificial women jewellery. Being aware about the importance of goal-setting, he has set the following goals for his business:

1. Sales should be enough.
2. Profit per month from first year of operation should be ₹ 2,50,000.
3. in the backdrop of recession in the economy, his goal was to open 5 retail outlets throughout the city.

Are Samar's goals appropriate? Which factors should be considered by him while establishing achievable and relevant goals?

Answer each of these questions in about two hundred and fifty words:
Explain in detail Porter’s Generic Value Chain with the help of a diagram.

Explain ABC Analysis of Inventory Control.
OR
Which items of inventory claim bulk of the values?