Mgt602 GDB solution

Semester “Spring 2011”

“Entrepreneurship (MGT 602)”

This is to inform that Graded Discussion Board (GDB) Has been opened according to the following schedule

Schedule

Opening Date and Time

April 20, 2011 At 12:01 A.M. (Mid-Night)

Closing Date and Time

April 25, 2011 At 11:59 P.M. (Mid-Night)

Note: No extra or bonus/grace period is available for attempting GBD.

Discussion Question

"After getting fed up from your existing job you want to leave the job. One of your MBA friends offers you to purchase his running business. Will you accept or reject his offer? Give good reasons that support your answer."Instructions:

Read the following instructions before giving your comments on GDB:

Use the font style “Times New Roman” and font size “12”.

Your answer should be relevant to the topic i.e. clear and concise.
Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
Books, websites and other reading material may be consulted before posting your comments but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0).
Obnoxious or ignoble answer should be strictly avoided.
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Solution:


Answer: I will defiantly purchase my friend’s business because I can begin operations immediately and this saves time energy and the need for research prior to initiating the business. In addition I can benefits from: [list]
[*]Existing customer An existing customer base and contracts [list]
[*]Existing vendors Existing vendors are helpful to eliminate the need to identify new ones, enabling the business to operate from day one. [list]
[*]Existing staff and management Which help you to skip recruiting staff and training? [list]
[*]Knowledge transfer I can learn about running the business from the current owner, which help me to gain and insight about there experience and also use their expertise. [list]
[*]Existing premises Eliminate the need to search for new premises and the tension of lease negotiations.[list]
[*]Reputation Existing good will is associated with the name and location. [list]
[*]Financial help Financiers are always ready to lend money to an existing business with a treading record.
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Another
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First of all i will see my financial condition that either i have the financial power to purchase that business.Then after that the best place to start is by looking at an industry with which i am familiar and which i understand. i will Think long and hard about the types of businesses i am interested in and which best match my skills and experience. i will Also consider the size of business i am looking for, in terms of employees, number of locations and sales. Next, i will pinpoint the geographical area where i want to own a business. i will Assess labor pool and costs of doing business in that area, including wages and taxes, to make sure they're acceptable to me. .I will accept his offer after i will investigate its historical performance, operations, current status, staff and management, competition, industry and its future potential