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 ARAB OPEN UNIVERSITY FACULTY OF BUSINESS STUDIES B322 – INVESTIGATING ENTREPRENEURIAL OPPORTUNITIES FALL 2015 – 2015/2016 B322 - TMA - FALL 2015 _____________________________________ Please re

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مُساهمةموضوع: ARAB OPEN UNIVERSITY FACULTY OF BUSINESS STUDIES B322 – INVESTIGATING ENTREPRENEURIAL OPPORTUNITIES FALL 2015 – 2015/2016 B322 - TMA - FALL 2015 _____________________________________ Please re   الإثنين ديسمبر 14, 2015 9:18 pm

ARAB OPEN UNIVERSITY
FACULTY OF BUSINESS STUDIES
B322 – INVESTIGATING ENTREPRENEURIAL OPPORTUNITIES FALL 2015 – 2015/2016

B322 - TMA - FALL 2015
_____________________________________

Please read these instructions carefully, and contact your tutor if you require any further clarifications. You should submit your completed assignment to your tutor to arrive no later than week 11.

Please use standard A4 size paper for submitting the hard copy of your TMA. Your name, personal identifier, course and assignment numbers must appear at the top of each sheet. A soft copy of your TMA must be uploaded to the university moodle within the indicated cut-off date. The hard & soft copies must be identical. Please leave wide margins and space at the end of each sheet for tutor comments. It is better to use double spacing so that you can easily handwrite corrections to your drafts and tutors have space to include their feedback on the script. Start each question in the assignment on a new page. Any extended text should ideally be word-processed, but, diagrams and accompanying notes may be hand drawn and hand written and on an A4 paper.

_____________________________________________

Completing and sending your assignments
When you have completed your TMA, you must fill in the assignment form (PT3), taking care to fill all information correctly including your personal identifier, course code, section & tutor, and assignment numbers. Each TMA and its PT3 form should be uploaded on the AOU branch moodle within the cut-off date. Late submissions require approval from the branch course coordinator and will be subject to grade deductions. All assignments are treated in strict confidence.
If you feel that you are unable to meet the cut-off date of the TMA because of unusual circumstances, please contact your tutor as soon as possible to discuss a possible extension to the cut-off date.
Plagiarism
The Arab Open University Definitions of cheating and plagiarism
According to the Arab Open University By-laws,
“The following acts represent cases of cheating and plagiarism:
• Verbatim copying of printed material and submitting them as part of TMAs without proper academic acknowledgement and documentation.
• Verbatim copying of material from the Internet, including tables and graphics.
• Copying other students’ notes or reports.
• Using paid or unpaid material prepared for the student by individuals or firms.
• Utilization of, or proceeding to utilize, contraband materials or devices in examinations.”
Penalty on plagiarism
The following is the standard plagiarism penalty applied across branches as per Article 11 of the university by-laws:
1) Awarding of zero for a TMA wherein more than 20% of the content is plagiarized.
2) Documentation of warning in student record.
3) Failure in the course to dismissal from the University.
All University programmes are required to apply penalties that are consistent with the University by laws.

Examples of Plagiarism

Copying from a single or multiple sources, this is where the student uses one or more of the following as the basis for the whole, or a good part, of the assignment:
1. Published or unpublished books, articles or reports
2. The Internet
3. The media (e.g. TV programs, radio programs or newspaper articles)
4. An essay from an essay bank
5. A piece of work previously submitted by another student
6. Copying from a text which is about to be submitted for the same assignment


Introduction
This TMA has four questions (part I: questions 1 and 2; part II: questions 3 and 4). You should answer all of them. Questions 3 and 4 are based on the case study below (page 6). 1 A) is namely to be able to propose your idea in connection with business concepts given in Block I. 1 B) based on question 1 part A, you should be capable of identifying and reflecting on the main innovation/creativity barriers facing the start-up, and to provide practical solutions to overcome them. 2 A) you should show understanding and insight into important concepts such as the information – knowledge pyramid to justify the success of your venture. 2 B) In addition, you should show understanding and insight into important concepts such as types of risks, value-cycle, etc. In Q3), the students ought to provide the tutor with evidence of good understanding of the nature, advantages and disadvantages, and suitability of the varied financing sources to the new venture in the case. 4) The students ought to provide the tutor with evidence of good understanding of the common problems that entrepreneurs, such as Erik Buell, are facing – i.e. lack of capital to start and grow successfully a new venture.

Part I
Question 1 (30 marks)
A) Suggest an idea that could turn into a business proposition using the business competition chain as illustrated in session I and II. Word count: 500 words (15 marks)
B) Based on the idea produced in question 1 part A, elaborate on the main barriers to innovation/creativity faced when starting a business using ‘the innovation uncertainty matrix’ to illustrate. Word count: 400 words (15 marks)

Question 2 (30 marks)
A) The key to innovation and entrepreneurial success lies in the ability to make effective use of individual and shared knowledge. Discuss and justify the success of your idea using the ‘information – knowledge pyramid’. Word count: 500 words (15 marks)
B) Explain and reflect on the types of risks a business might face using the “enterprise value-cycle” (book 1, session 3) and examples to illustrate. Word count: 500 words (15 marks)


Part II
NOTE: the following questions (questions 3 and 4) are based on the case study below (page 6). Moreover, students are required to use external sources (in addition to the case study) to find and use relevant concepts and examples in their answer.

Question 3 (25 marks)
Reflect on and explain the suitability of alternative sources of capital that Buell could resort to in order to achieve the goals he has set for Erik Buell Racing. Word count: 350 words (25 marks)

Question 4 (15 marks)
Outline and discuss the dilemma Erik Buell is facing – lack of capital to start and fuel a business with growth potential – which is common among entrepreneurs. Word count: 250 words (15 marks)


Deductions (20%)

• PT3 Form (5% marks)
• Report Presentation and Structure, and word count (5% marks)
• Referencing (10% marks)


Guidance to Question 01

A) Keep in mind that this question is intended to test your ability of being innovative. Try to express your idea logically and creatively using the business competitive chain. Your tutor’s feedback will be helpful in clarifying to you any misconceptions you might have about the idea you are proposing and how it can be articulated. B) Each venture has its barriers. Using ‘the innovation uncertainty matrix’ (book 1, session 3), identify and discuss potential barriers to creativity and innovation, and propose solutions to overcome these obstacles.


Guidance to Question 02

A) You should be able to connect the knowledge pyramid concept to your proposed ideas in order to show your reader an understanding of related materials given in session V. Keep in mind that this question is intended to test your ability of being reflective and practical. Try to express your idea in an effective and practical manner using the information-knowledge pyramid (figure 5.2, page 84).
B) Enterprise value-cycle will help you identify those risks when applying your idea. Refer to page 51 (session 3) for more details on the subject.

Guidance for Question 03
Rather than relying on a single source of funds, entrepreneurs may need to piece together multiple sources, a method known as layered financing. Typically students need to discuss and elaborate on the elements of the two main sources of capital: Equity capital and Debt capital, in addition to other sources if any. Students are also expected to reflect on the suitability of the source(s) of capital supported by valid justifications and examples. Discussing the advantages and disadvantages of debt and equity financing is recommended in helping with the assessment of the suitability/appropriateness of the sources of capital to the new venture in the case. Students need to conduct search in external sources to get relevant and updated concepts on the topic. Moreover, students need to relate their answers/arguments to the case study.

Guidance for Question 04
Capital is a crucial element in the process of creating and growing new ventures. Most entrepreneurs face difficulty in finding outside sources of financing. Raising capital/money also takes time and effort. Even “small” amounts of capital can be difficult to secure. Explain why is it so difficult for most small business owners to raise the capital needed to start, operate, or expand their ventures. The students can refer to session 4 “Your resources and capabilities,” namely section 4.4 “Your capital base” (Workbook 1) to start off addressing this question, but they need to conduct search in external sources to get more relevant and updated concepts on the topic. Note that to properly address this question, session 4 is insufficient on its own. Moreover, students need to relate their answers/arguments to the case study.

CASE STUDY (related to questions 3 and 4 above)
Erik Buell Racing

Can an Innovative Designer of Sport Motorcycles Raise the Capital He Needs to Build a Dealer Network and Increase Production to Meet Customer Demand?
In 1983, Erik Buell left his engineering job at iconic mo¬torcycle maker Harley-Davidson to start the first sport bike design and manufacturing company, Buell Motorcycle Company (BMC), in the United States. His goal was to build sport bikes capable of surpassing those made by famous Japanese and European brands, which dominated (and still dominate) the market segment. Sport bikes account for 15 percent of total annual motorcycle sales in the United States, which are estimated at 560,000 units and $5.87 billion. Buell worked out of the garage of a rented farmhouse in Mukwonago, Wiscon¬sin, just 40 miles from Harley-Davidson’s headquarters in Milwaukee. Ten years later, Harley-Davidson purchased a minority share in Buell’s company with the idea of expand¬ing its reach beyond the cruiser motorcycle market. In 1998, Harley-Davidson purchased 98 percent of Buell’s company, and Buell thought that with the larger company’s resources behind him, he could transform BMC into a global power¬house in the sport bike market. In 2008, BMC sold 15,000 bikes, but a severe recession caused Harley-Davidson to re-focus on its core business, and the motorcycle giant closed BMC, meaning that Buell lost everything, including the rights to the BMC name.
Like a true entrepreneur, Buell never gave up on his dream, however. He had a reputation as one of the most gifted motorcycle designers in the world, 30 years of ex¬perience creating championship-winning sports bikes, and $40 million worth of equipment and tooling for manufac¬turing motorcycles. Eighteen months after Harley-Davidson closed BMC; Buell launched his second motorcycle design and manufacturing business, Erik Buell Racing (EBR), in East Troy, Wisconsin. In 2011, the company, with just 20 talented and devoted employees, produced a limited run of 100 exotic street racing bikes priced between $37,500 and $44,000. His goal is to build EBR into a major competitor in the sport motorcycle market with manufacturing operations in the United States and a network of domestic and interna¬tional dealers to handle sales and service. “EBR is going to stay focused on invention and intellectual property,” Buell declares, “and do radical things that the rest of the world isn’t doing. That’s how we’re going to bring some American flavor to the sport bike industry.” EBR’s signature model is the 1190RS, a sleek, muscular bike that sports all of Buell’s unique styling elements, including sporty, upswept lines from handlebar tips to tail; the innovative Zero Torsional Load braking system that lightens wheel weights; and muf¬flers located underneath the engine to limit noise and main¬tain a low center of gravity. “Our design DNA is radically different,” says Buell. Indeed, the 175-horsepower 1190RS weighs just 389 pounds, 50 pounds less than most compet¬ing bikes. It also is eco-friendly, producing just 25 percent of the exhaust emissions allowed by the Environmental Protec¬tion Agency.
The primary obstacle that Buell faces in the growth of EBR is a lack of capital. Buell knows that the customer base for his motorcycles exists, and it is a global market. So far, more than 50 percent of the young company’s sales have been to foreign customers, but Buell must establish a dealer network to reach both domestic and foreign cus¬tomers. Setting up a domestic dealer network takes time and money, and establishing international dealerships is even more complex and expensive. “We had the potential to sell 1,500 bikes in 2011, but we had to revise that down to 900,” says Buell, who says that he needs $20 million to achieve his goals for EBR. “I didn’t think it would be this hard to raise $20 million,” he says with a hint of frus¬tration. Buell has supplemented EBR’s revenue from bike sales by performing design consulting for other large mo¬torcycle manufacturers, many of them his competitors, around the world. Buell is holding firmly to his dream for EBR. “We’re brave when we make decisions because we all want to be first,” he says of himself and his employees. “To be first, we have to get there fast, and we can’t make mistakes.
Source: Adapted from Scarborough, N (2014). Essentials of Entrepreneurship and Small Business Management, Global edition. Pearson Education Limited, 7th edition.














Harvard Style - References / bibliography
How -to guide

Note: It is a requirement that all students include a header/footer of the following information on every single page of the TMA: Name, ID, Course Code, TMA #, Tutor name, section, and semester.

• You have to use the Times New Roman Font Size 12 (except for the cover page).
• Line spacing should be 1.5
• All pages should be numbered
• Keep wide margins for your instructors' comments
• Align your text to the left. Don’t justify leaving spaces between words

Harvard Style Referencing:

• There are various ways of setting out references / bibliographies for an assignment.

• “Harvard Style” is a generic term for any referencing style which uses in-text references such as (Smith, 1999), and a reference list at the end of the document organized by author name and year of publication.

In this guide, we are using a “Harvard Style” which is based on the author-date system for books, articles and “non-books”.

NOTE: When you write your list of references/bibliography, please keep in mind the following points:

• Your bibliography should identify an item (e.g. book, journal article, cassette tape, film, or internet site) in sufficient detail so that others may identify it and consult it.
• Your bibliography should appear at the end of your TMA with entries listed alphabetically.
• If you have used sources from the Internet, these should be listed in your bibliography.

FOR A BOOK

The details required in order are:

1. name/s of author/s, editor/s, compiler/s or the institution responsible
2. year of publication
3. title of publication and subtitle if any (all titles must be underlined or italicized)
4. series title and individual volume if any
5. edition, if other than first
6. publisher
7. place of publication
8. page number(s) if applicable


• One author

Berkman, RI 1994, Find it fast: how to uncover expert information on any subject, Harper Perennial, New York.



• Two or more authors:

Cengel, YA & Boles, MA 1994, Thermodynamics: an engineering approach, 2nd edn, McGraw Hill, London.

Cheek, J, Doskatsch, I, Hill, P & Walsh, L 1995, Finding out: information literacy for the 21st century, MacMillan Education Australia, South Melbourne.

• Editor(s)
Pike, ER & Sarkar, S (eds) 1986, Frontiers in quantum optics, Adam Hilger, Bristol. Jackson, JA (ed.) 1997, Glossary of geology, 4th edn, American Geological Institute, Alexandria, Va.

• Sponsored by institution, corporation or other organization

Institution of Engineers, Australia 1994, Code of ethics, Institution of Engineers, Australia, Barton, A.C.T

• Series
Bhattacharjee, M 1998, Notes of infinite permutation groups, Lecture notes in mathematics no.1698, Springer, New York.

• Edition
Zumdahl, SS 1997, Chemistry, 4th edn, Houghton Mifflin, Boston.

• Chapter or part of a book to which a number of authors have contributed
Bernstein, D 1995, ‘Transportation planning’, in WF Chen (ed.), The civil engineering handbook, CRC Press, Boca Raton.

• No author or editor
Kempe's engineer's year-book 1992, Morgan-Grampian, London.
FOR AN ARTICLE

The details required, in order, are:
1. name/s of author/s of the article
2. year of publication
3. title of article, in single quotation marks
4. title of periodical (underlined or italicised)
5. volume number
6. issue (or part) number
7. page number(s)

• Journal article

Huffman, LM 1996, ‘Processing whey protein for use as a food ingredient’, Food Technology, vol. 50, no. 2, pp. 49-52



• Newspaper article
Simpson, L 1997, ‘Tasmania’s railway goes private‘, Australian Financial Review, 13 October, p. 10

FOR A NON- BOOK
NON-BOOK
The details required are the same as for a book, with the form of the item (eg video recording, tape, computer file, etc.) indicated after the year.

Get the facts (and get them organized) 1990, video recording, Appleseed Productions, Williamstown, Vic

FORM OF ITEM
Dr Brain thinking games 1998, CD-ROM, Knowledge Adventure Inc., Torrance, California

FOR WEB SITES AND OTHER ELECTRONIC SOURCES

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