CASE STUDY -1
Mekonnen and Balcha were two sons of a business man named Biruk (a very famous builder in the city). Biruk was a self-made man, he had risen from ‘rags ( very poor) to riches’ and had worked hard all his life to attain his current position of being one of the best builder in the city, both in terms of quality of construction and in public relations. He has come across a number of ups and downs. He is a good planner, organizer, and has a good communication skill. He is an optimistic person about achieving his vision and has a great desire for success. His two sons also had an inclination towards the construction business and wanted to join their father after completing their bachelors in Architecture and their masters in business administration. They had happily returned home and expressed their wishes of joining the family owned business. But, Biruk had a different plans.
The brothers were surprised when their father announced at the dining table, “Mekonnen and Balcha, I have an important thing to discuss. As both of you know that I am a self-made man, I have gone my way and have taken no direction from any one. In fact, I have taken the outcome of all the decisions, good or bad. So now when both of you have armed yourself with formal education, I would like both of you to take over from me and run the show on your own”.
“But Dad your experience will only add to our education” exclaimed” Balcha
“And Dad, your vision will guide us towards greater success. Moreover, you have a good image in market and it will take ages for us to develop the same market image all over again”, retorted Mekonnen.
“Son, I want you to be on your own. I have performed all the duties of a father till now and now I want you to take over the show. You are right that I have experience and an image which can be
built only over a period of time, but remember, I have done it all by myself and without even financial backing. Believe me, my sons, and the kind of self-respect that you would gain for yourself and the kind of business acumen you would evolve on being on your own is not possible under my umbrella” replied Biruk.
“But Dad, how would we do it without you?” asked Balcha
“Let me correct you here again. It is not we but I want both of you to take up independent charge of your future and hence I have decided to divide my entire property into two equal haves and transfer it to both of you. I wish that both of you work independently for your own and also for a good relationship between brothers. In a way, both of you would become business rivals but then there would be not just one but many more business players in the field. So get your self-charged and start drawing your independent business plan”, said Biruk.
- Do you think Burk was visionary and with an entrepreneurial quality? Why/why not?
- How far do you think the decision made by Biruk was justified?
- If you were Balcha and Mekonnen what would you do? And why?
- What are the limitations you did observe on the side of Biruk and Balcha?
CASE STUDY- 2
You have earned a hospitality Degree from a highly recognized university, your experience includes working in the family-owned grocery store for eight years. Working in the family business has helped you to acquire knowledge about purchasing, inventory control, human resources, and customer service.
You now have decided to open a healthy alternative fast-food restaurant in your community that has a population of 30,000 people. The community already has twelve nationally recognized fast- food restaurants. Your proposed restaurant is part of a franchise that operates throughout the Country. You have conducted research about the franchise, community, and projected profits for your proposed franchise restaurant. You now must convince the First Financial representative (judge) that your idea is worthy of the Birr 110,000 loan that you are requesting. You are personally investing Birr 90,000 from your savings and contributions from other family members.
You must explain the demographics of the city where you plan to locate your restaurant. Your presentation must describe the research that you have conducted to determine the need for restaurant. The financial representative wants to know about your advertising campaign and how you will develop customer base. You must describe the franchise and explain why it is a safe investment. The First Financial’s representative wants assurance that you will be able to pay back the Birr 110,000 loans plus interest. You must explain your level of expertise in the industry and convince the investor about your willingness to put forth the required hours to be a successful entrepreneur. Your team must be prepared to explain how the restaurant will survive during uncertain economic conditions. First Financial wants to know when your restaurant will first experience real profit.
- Why are you proposing a franchise instead of a sole proprietorship for your restaurant?
- Since family members are contributing funds for the initial investment, what are their expectations from the restaurant?
- Why will your restaurant concept be successful in a community that has 30,000 people? D What is the advantage for our financial institution to invest in your business?
- What are the demographics of the community that make you believe the restaurant will be successful?
- What economic trends should be considered when opening a new restaurant?
The spread of Corona-virus pandemic has affected almost every continent and country. While it has created a great panic amongst the people, the world has seen a sudden unfolding of several events, which were beyond imaginations so far. With the daily increase in the number of positive cases of COVID- 19, now more and more people have confined themselves to four walls.
As the situation doesn’t seem to be improving very soon, every section of the society is enforced to look for an alternate option to run their day to day operations. And the business world is not an exception. But thankfully, technology has turned out to be a great savior for many industries. The announcements of health regulators to maintain social distancing made customers stay in. On the other hand, it has brought forth an opportunity for the entrepreneurs and business owners to give it back to society in the most critical times. The changing world has also made many of us reflect on what we really want from life and many people have decided that they want a better work-life balance or a more fulfilling career.
List down at least 10 local Business Ideas that are worth Investing during the COVID-19 pandemic on your observation and make a selection of one best business idea from the generated alternative business ideas (screening criteria are narrated under##). Moreover, you are required to develop a simulated business plan for the selected best business idea.
##To down screen the business ideas in to one subjectively, use the following criteria
- Profitability of the idea if implemented
- Availability of raw materials
- Personal goals and competencies of the entrepreneur
- Ease of implementation
- Financial feasibility
- Risk exposure
- Government support and incentives
- Technical feasibility
- Commercial viability