INDIAN INSTITUTE OF MANAGEMENT

Executive Post Graduation Programme

Entrepreneurship and New Ventures Section A
Questions: 50 marks Duration: 3 hours
Instructions:
1. All Questions are compulsory. It is an open book exam. First Part of exam shall be done
in 90 minutes. The second part of exam shall be done in next 90 minutes and opening the
internet is allowed for the second part.
2. While students would need to research on a number of articles, datasets and so on, to
write this exam, it is expected that they write the exam in their own words and properly
reference the material that they use for writing the exam.
3. Plagiarism shall be penalized. Any plagiarism above 20% shall invite one grade drop,
and above 30% shall invite two grade drop in the overall grades of the concerned
student. When plagiarism exceeds 50%, then the student's answers shall not be evaluated
and they shall receive a zero on that component.

PART A (90 minutes – 30 marks)

Refer to the Caselets below and answer the questions. Limit your answer to
information/ data given therein:

Caselet 1
Please read excerpts of an article below, which was published in The Times of India on. Feb
5th, 2017, written by Vinod Shastri -

I have long since unshackled entrepreneurship from its default association with business. I am
no more a purist. What’s more, I even dissociated entrepreneurship from creating one’s own
organisation; a virtual sacrilege!

While starting a new student club on campus, I felt as much like an entrepreneurs I did while
setting-up a paints factory at Coimbatore. I felt as much like an entrepreneur when I launched a
new academic programme as I did when I established a restaurant at Pune. To me,
entrepreneurship is not an activity; it’s a mindset coupled with a skillset.

The moment I started approaching it as a mindset, I started seeing entrepreneurship in all spheres
of life; including but not restricted to business. Despite being an employee most of my working
life, I acquired and applied the entrepreneurial mindset (and skillset) somewhere along the way. I
had intently listened to entrepreneurs sharing exciting stories of their ventures; my own stories of
jobs didn’t sound different anymore. There was the same spotting of problems or opportunities,
there was the same selling of ideas to multiple stakeholders, there was the same mobilisation of
resources, there were the same proverbial setbacks along the way and then there were the same
definite rewards in the form of fulfilment.

All the super-humanness attached to entrepreneurs and entrepreneurship was actually becoming
a hurdle in its spread. The huge amount of romanticism around entrepreneurship was making it
sound improbable rather than doable. Heroes were being glorified rather than role models being
offered. The whole thing served no purpose. It was time to take a fresh look at the approach.
Unshackling the concept worked beautifully for me. Now there was no need to be a superhuman
to be an entrepreneur; it was enough to feel like one. There was no need to start an enterprise to
be an entrepreneur; it was enough to act like one in any organisation. Simply put, there was no
need to be an entrepreneur to be entrepreneurial.

As Stewart Thornhill once said, “The difference between an entrepreneur and a non-entrepreneur
is the simple act of starting.” I have very conveniently inferred it as starting anything!

Question 1a: How do you relate the above article to Effectuation Theoretic
Perspective central to Entrepreneurs? How are they different from non-
entrepreneurs, therefore? (5)
Question 1b: Why is the author not satisfied with the romanticism associated
with entrepreneurship? What do you think is the central premise of
entrepreneurship? (5)
Question 1c: How do you associate your class learning of the
Entrepreneurship Process Model with the Processes laid out in the given article?

(5)

Question 2: Some of the research findings indicate that ventures started by a

small group of founders have better chances of success than those ventures
founded by a single individual. However, building a founding team is not an easy
task and mistakes made while selecting team members could have a detrimental
effect on the start-up firm or the entrepreneur. Discuss the challenges associated
with the team building process that Lew Cirne faced while building Wiley
Technology Team. What went wrong and where in dealing with those challenges?
In hindsight, suggest ways to overcome those challenges that you would have
adopted, had you been the protagonist. ………………………………………….
(10)

Question 3: Imagine you are a Venture Capitalist. Also, imagine that Bob Reiss of
R&R approached you for a funding $1 Mn (or Euro Equivalent) for launching his
Trivia Inc. Simultaneously, you are approached by Dickon Addis (the INSEAD
scholar and Finance wizard), for funding his start-up Beautiful Legs by Post for
same amount. Given the details in the cases discussed in the class, which one you
would choose to fund and why? (Assume that you can fund only one of these)
…………………………………………. (5)

Part B: 90 minutes for 20 marks

Question 4: From your understanding of Entrepreneurship as conceptualized in

ENV classes viz. Processes of Entrepreneurship (Opportunity Recognition,
Resource Mobilization, Innovation), Entrepreneurial Mindset (Effectuation
Rationality), Funding (Business Models, Business Plan document – Funds at
various stages of venture) and Legal issues in entrepreneurship and so on, analyze
any one entrepreneurial venture that became successful over a period of a few
years (Please don’t choose intrapreneurship ventures). For example, you read the
case of ‘Bob Reiss of ‘R&R” and “Lew Cirne of Wiley Technologies”. It is
expected that the answer shall follow a similar pattern, wherein, the reader gets to
understand how the idea was envisioned and what steps it took to becoming a
reality. Use whatever reference materials are available at your disposal to write
the entrepreneur’s and their venture’s story. Make exhibits/annexures/ references
as required to give more story telling capability to your write-up.
(10)

Please know that brevity shall be rewarded. Any answer above 10-page length for Question 4
excluding exhibits and references (Times New Roman Font, Size – 12, 1.5 Spacing, Word
Format) shall invite negative marking.

Question 5a: Why was Stamypor given a waiver for stage-gate 1? Do you
think the company was more entrepreneurial in the beginning when they ventured
into corporate entrepreneurship with NPD? Why or why not?………..
………………….(4)
Question 5b: Consider that you are Neiland of Stamypor. What would you
report to the NBD Board and why?........................................................................(6)
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