This TMA will be marked out of 100 and is worth 20% of the course assessment. The TMA includes a case study on which you are required to answer three questions.
Environmental Analysis and the Role of SMEs
Small and medium sized firms (SMEs) and entrepreneurs strongly contribute to the development of new ideas and technologies, which drives growth of (new) industries, (Perks et.al. 2014).
Ahmed is studying Business in Arab Open University. His career plan includes starting a new business in Gulf Countries say, Oman, Bahrain, Kuwait and Saudi Arabia (STEEP TO BE CONSIDERED). He shows good amount of interest in reading success stories of different entrepreneurs around the world. Ahmed has business interests in the retail business (Define it and it determine its plan). His plan is to start a small business(Define it, its characteristics, and risks involved) first and expand it to a full-sized large scale business.
Ahmed has been told that starting a business is not that easy (Risks involved and difficulties) as he thinks and it needs careful planning and execution of ideas. At the same time, he also came to know that environmental and market studies are the core studies to be carried out before conceptualizing business ideas. He wanted to carry out environmental studies(STEEP) first and then followed by a market study.
A Brief History of Ahmed’s Family:
Ahmed has a family business (The role model for an entrepreneur-Ahmed ). His father is a leading retail businessman. He owns three five small sized retail outlets in Oman and two retail business outlets in Kuwait. For Ahmed, mobilizing money is not a big issue as his father is there to support him financially (Owner equity) and to offer his expertise in managing business to Ahmed. Ahmed’s father wanted Ahmed to provide him with a good business idea and a good business plan in order to extend financial and administrative support.
Why Small Business for Ahmed?
Ahmed knows well about the role of small businesses and its contribution to a national economy. He has learnt that small businesses contribute widely to local economies by bringing growth and innovation to the community in which the business is established. Small businesses are also helping enhancing economic growth by providing employment opportunities to people. Small businesses have the potential to attract good amount of talent to be more innovative in the market for their survival. Larger businesses also often benefit from small businesses within the same local community, as many large corporations depend on small businesses for performing some of their functions (outsourcing).
Why to have a business career?
Ahmed thought well about starting a business. He knows what are the challenges and benefits of having his own company. Ahmed knows very well that risk taking (entrepreneur) has the direct correlation with the reward and returns that he will get in any venture. In addition to risk taking tendency, he should assume some good planning and management skills and abilities in order to thrive business well in the market. He made a habit of reading successful business histories regularly and knows the skills and abilities that an entrepreneur should have to achieve success. Understanding skills and traits of a successful entrepreneur is also not thing that one can learn them overnight. Skills and traits will have to be learnt and practised well as well.
To conclude, Ahmed after so much reading and consultations with business experts with his father decides to go with his idea of starting a new small business and expanding it to a giant company in five years of time (SMART GOALS- MISSION- VISION).
Answer the following questions in no less than 1000 words: (All your answers should be in an essay format)
Question one (350 words):
Ahmed wanted to know more about environmental factors that affect business organization. In this context,
Explain STEEP analysis and discuss the importance of analysing environmental factors (STEEP) for an organization. Provide examples to support your answer.
Question two (350 words):
Ahmed wants to start a small business initially and wants to expand it later. In light of this statement:
Discuss briefly the benefits of small business and outline its role in general for the growth and development of a nation. Support your answer with relevant examples.
Question three (300 words)
Ahmed has been reading widely about the success stories of entrepreneurs. He is interested to know the entrepreneurial qualities and traits thoroughly. In this context:
Define Entrepreneurship and explain briefly some the entrepreneurial qualities and traits with examples that Ahmed should have to get success in his ventures.