vu eco401 Mid Term Subjective Solved Past Paper No.3

The description of the venture should be detailed in this section. This should begin with the mission statement or company mission, which describes the nature of the business and what the entrepreneur hopes to accomplish. The new venture should be described in detail, including the product, location, personnel, background of entrepreneur, and history of the venture. The emphasis placed on location is a function of the type of business. Maps that locate customers, competitors, and alternative locations can be helpful. If the building or site decision involves legal issues, the entrepreneur should hire a lawyer.

The description of the venture should be comprehensive. This should begin with the mission statement or company mission, which describes the nature of the business and what the entrepreneur hopes to accomplish. The new venture should be described in detail, including the product, location, personnel, background of entrepreneur, and history of the venture. The emphasis placed on location is a function of the type of business. Maps that locate customers, competitors, and alternative locations can be helpful. Then the marketing plan describes how the products will be distributed, priced, and promoted. Potential investors regard the marketing plan as critical to the venture's success.

McDonald's with KFC: The merger in this case will be a horizontal merger because they both produce related products, which is the condition of horizontal merger.

One Steel Mill with other Steel Mill: The two steel mills will merge horizontally because both the mills are producing similar product.

ABN AMRO with Royal Bank of Scotland: Both the banks will merge horizontally because both are providing similar type of services.

Steel mill with a fertilizer producing firm: Since both the firms are non- interrelated so this merger will be a diversified merger.

An oil cooking producing company with Desi Ghee producing company: The merger in this situation will be a production merger because production of both products is related but the products themselves are not competing.

Business Plan:

A business plan is a written document prepared by the entrepreneur that describesall the relevant external and internal elements involved in starting a new venture. Itaddresses both short- and long-term decision making. The business plan is like a roadmap for the business' development. The Internet also provides outlines for businessplanning. Entrepreneurs can also hire or offer equity to another person to provideexpertise in preparing the business plan. In developing the business plan the entrepreneurcan determine how much money will be needed from new and existing sources.

Purpose of Business Plan:

The business plan must be comprehensive enough to address the concerns ofemployees, investors, bankers, venture capitalists, suppliers, and customers. Threeperspectives need to be considered:

The entrepreneur understands the new venture better than anyone. The marketingperspective considers the venture through the eyes of the customer. The investor looks forsound financial projections. The depth of the business plan depends on the size and scopeof the proposed venture.

The business plan is valuable to the entrepreneur and investors because:

1. It helps determine the viability of the venture in a designated market.
2. It gives guidance in organizing planning activities.
3. It serves as an important tool in obtaining financing. Potential investors are veryparticular about what should be included in the plan. The process of developing abusiness plan also provides a self-assessment of the entrepreneur. This self-evaluationrequires the entrepreneur to think through obstacles that might prevent the venture'ssuccess. It also allows the entrepreneur to plan ways to avoid such obstacles.

A copyright protects original works of authorship. The protection does not protect theidea itself. It is a set of exclusive rights granted by the law of a jurisdiction to the authoror creator of an original work, including the right to copy, distribute and adapt the work.It allows someone else to use the idea in a different manner.

It's Limitation:

Exceptions and limitations to these rights strive to balance the public interest inthe wide distribution of the material produced and to encourage creativity. Exceptionsinclude fair dealing and fair use, and such use does not require the permission of thecopyright owner. All other uses require permission and copyright owners can license orpermanently transfer or assign their exclusive rights to others. Copyright does not protectideas, only their expression or fixation. In most jurisdictions, copyright arises uponfixation and does not need to be registered. Copyright protection applies for a specificperiod of time, after which the work is said to enter the public domain.

1. Economy
2. Culture
3. Technology
4. Legal concerns

Economy

The entrepreneur first wants to know the economic situation of country wherehe wants to start the business because this has great impact on its success. If economicalsituation is not stabilizes then investors will not willing to invest with us, which is thefirst step for every beginning of business.

Culture

It has too much influence on our products which we made. If we produce suchthing which is not familiar to people where the business operate there should be loss for.For example; if Bonanza will start to produce Shalwar & Kameez suits in Arab countrieswho will buy, because in Arab countries there culture is different from us. So,entrepreneur must first look about the culture trends.

Technology

Now a day's technology changes day to day. Every day or week newinventions is there in market, which help us to make business easy for us. We shouldkeep update ourselves in technology perspective to save more money and produce more.

Legal Concerns

These are important issue for every entrepreneur. As every countryhave its own and different laws there. Therefore, he/she must be having knowledge about the limitations and permissions from government of that country where he/she want to dobusiness.

1. The pleasant outlook of a website is the first important thing to keep in mind. Toomuch use of pattern or colors can drive the viewers away.

2. DO NOT use unnecessary audio or video. I once opened a site where a woman startedspeaking something as soon as the site opened. It startled me and I closed it immediately.So don't let that happen. Correct use of flash will make the website attractive but toomuch of it might distract the visitors from the main goal. We do not want to do that.

3. Don't put a welcome page where you have to click and enter your main page. Wasting time there might drive the visitors away.

4. The website shouldn't take a lot of time to load. Visitors might not have so much ofpatience and that means they'll leave your site immediately

5. Unnecessary banners ads or links. Unless you are an advertiser, banner ads or link adscan drive potential customers away. Even if you have to do so use a pop-up to open acertain link, making sure the visitors still have your window open.

6. Avoid using colorful fonts, use of many fonts or use of unreadable fonts. As I saidpleasant outlooks keeps the visitors hooked on your site

7. Keep the color of links constant. The formal color for links is blue, underlined. If thecolor of the normal text and that of the link is same the visitors wouldn't know thedifference.

8. Avoid using lot of graphics or images that are hard to load. Unless you are sellingdifferent products, do not use many graphics, images making you page hard to load.

9. Headline plays a significant role in attracting customers. Hence use catchy phrases forthe headline, it'll work well.

10. The 10th and the most important is the content. Relevant content is the best way tokeep the visitors hooked up and more over buy what you are selling. Correct use of wordsand sentences not only attracts the prospects but also helps the search engines to crawl iteasily. Proper content, with relevant use of keywords is a MUST.