Mid-Term Exam (Take-Home) Fall - 2020

Subject: Introduction to Business Submission Day: Wednesday

Instructor: Lubna Khan Submission Date: 16th December 2020
Program: BBA/BS Max. Marks: 25

Department of Business Administration

Please follow the instructions carefully:

1. Write your answers in a Word file and upload the file before the due date on Blackboard.

2. Write your name and registration ID on the first page of your Word file.

3. Answer scripts can be uploaded on Blackboard any time before its deadline. Therefore, do
not wait for the last hour to avoid any unforeseen problems.

4. Submission of answer copy(ies) will be considered acceptable through Blackboard only.

Therefore, do not submit your document through email or any other medium.

5. Use 12 pt. font size and Times New Roman font style along with 1-inch page margins.

6. Follow the requirements of the word limit and the marking criteria while writing your
answers.

7. Provide relevant, original and conceptual answers, as this exam aims to test your ability to
examine, explain, modify or develop concepts discussed in class.

8. Do not copy answers from the internet or other sources. The plagiarism of your answers
may be checked through Turnitin.

9. Recheck your answers before the submission on Blackboard to correct any content or
language related errors.

10. Double check your word file before uploading it on Blackboard to ensure that you have
uploaded the correct file with your answers.
Q1: Imagine, you have started a business of restaurant in the central area of Karachi. In order to
make the business more profitable and flourish, you decided to identify all factors that can help in
decision making process. Discuss the factors related to SWOT analysis for the restaurant. [7]

(Note: Use the given template and write down relevant factors)

Strengths Weaknesses
1) trained staff 1) long waiting duration
2) outstanding customer service 2) confusing menu
3) highly enthusiastic team 3) price confusion
4) relaxing environment 4) low exposure

Opportunities Threats
1) highly exposure location 1) competitors located nearby
2) potential for growth with food delivery apps 2) low minimum wage
3) health-conscious trend 3) competitors offer cheap price and discounts
4) potential for partnership with a catering 4) economic factors
service for events

Q2: What are some good qualities of transactional and transformational leadership style? Write
down any TWO qualities for each style with examples. (4)
Good qualities of transactional leadership style are:
1. Practicality- E.g.. - X is very practical in his approach and solves problems of all the
employees in the organization. He takes all constraints and opportunities into account.
2. Rewards performance- E.g.. - X always keeps an eye on the performance of the
employees and rewards them on the basis of their performance. Similarly, he punishes
employees when they perform poorly.

Good qualities of transformational leadership style are:

1. Take risks and difficult decisions- Eg.- Y has observed that there are prospects of huge
profits if the company introduces a new product line but this would require huge capital
investment. He would take all factors into consideration and would not shy from taking
risks.

2. Self-management- Eg.- Y is a highly motivated leader whose motivation source is his

work. He doesn't pay much attention to perquisites or increments but seeks challenging
work opportunities.

Q3: Suppose you have recently been hired as a Marketing Manager in an ABC organization.
Company has given you a task of repositioning the brand. How can you achieve the task by using
core management functions? (Hint: Use P-O-L-C framework and explain each stage)
[8]
1. Planning- I will set both long term and short term objectives that need to be achieved.
The next step will be to develop premises i.e. assumptions regarding various factors such as
social, political etc. After this all alternatives will be identified and studied properly as to
how the firm can achieve the goals. The best alternative(s) will be selected and then
implemented.

2. Organizing- All the work will be divided and departments will be created in order to
make the process effective. All the employees will be allocated work and will be told to
whom they have to report.

3. Leading- An appropriate leadership style will be choosen. Seeing the modern scenario, a
democratic leadership style is preferred more. Leaders will be made and employees will
work under his guidance.

4. Controlling- After all steps have been completed, the actual results will be compared
with the standards which have been set up as to how customers have started perceiving the
brand. In case the results are positive then the same strategy would be followed. If the
results are negative then the causes will be identified and corrective action would be taken.

This cycle would continue on the basis of objectives of the firm.

(Note: Repositioning brand defines as changing the image and perception about a brand
from the mind of customers)

Q4: As we have learned, businesses can have a variety of ownership structures based on the vision,
size, liability, and control wanted by the organization. Following are some examples of businesses,
identify their ownership structure and write down at least ONE advantage and ONE disadvantage
for each. [4]

- Intuit in USA
- Baskin Robbin in Pakistan
- A barber shop owned by single person in Indonesia
- Two friends owned a Consultancy Business in India
 - 1. Intuit in USA- Corporation/ Company

- Advantage: Limited liability of shareholders, Disadvantage: Lack of secrecy due to

making financial reports public-

- 2. Baskin Robbin in Pakistan- Franchise

- Advantage: Minimized growth risk, Disadvantage: Less control

- 3. A barber shop owned by single person in Indonesia- Sole Proprietorship

- Advantage: Full control and quick decision making, Disadvantage: Unlimited

liability

- 4. Two friends owned a Consultancy Business in India- Partnership

- Advantage: More capital and greater borrowing capacity, Disadvantage: Risk of

disagreement among partners

Q5: Imagine you own an XYZ project. Below is the list of factors that could affect your project.
Indicate whether they are INTERNAL or EXTERNAL factors and justify your answer with the
possible reasoning. [2]

1- Product Quality
2- Culture
3- Employee Knowledge
4- Climate Change

5- 1. Product Quality: Internal as it depends on the organization’s caliber.

6- 2. Culture: External as the organization has no control over it.

7- 3. Employee knowledge: Internal as it is directly related with the organisation.

8- 4. Climate Change: External as the organization has no control over it.

--------------------------------**GOOD LUCK**-------------------------------------