Section A:
Essay Questions
1. Who is an entrepreneur? Describe the main characteristics of an entrepreneur.
2. Explain the main advantages and disadvantages of running a small business.
3. Discuss the motivations for owning a business.
4. What is a mission statement? Outline the elements of a mission statement.
5. Analyze the extended marketing mix.
6. Explain the main legal forms of business organization.
7. Provide a comprehensive analysis of the PESTEL model.
8. Outline the process of environmental analysis.
9. Identify and explain the main forces to be considered in an industry analysis.
10. What is a SWOT analysis? Provide a detail description of what information could be obtained
from such analysis.
Section B:
True or False
1. Entrepreneurship is…
a. A process
b. A chain of events and activities that take place over a period of time
c. Bringing something new to the marketplace
2. Intrepreneurs
Persons who create something new, but inside an existing company rather than through a new
venture.
3. Individual-level, group-level, and societal-level factors influence every action and decision
taken by entrepreneurs during all phases of the entrepreneurial process.
4. The content of the mission includes the scope of the business.
5. The problems of the mission includes which one of the following:
a. Ignored in practice
b. Public relations
c. ‘Post hoc’
6. SMART objectives stand for:
a.
b.
c.
d.
e.
Specific
Measurable
Achievable
Relevant
Timescale
7. Stakeholder mapping/analysis includes:
a.
b.
c.
d.
e.
Identity
Power
Interests
How satisfied are they?
How compatible are their interest and what conflicts exist?
8. The extended marketing mix concerns:
a. People
b. Process
c. Physical Evidence
9. Franchising is the actual granting of a franchise.
10. Business mergers could be:
a. Horizontal: Similar products / services
b. Vertical: Different but related firms
Case Study Analysis
Gibson Mortuary was founded in 1929 and has become one of the best-known funeral homes in Tacoma,
Washington. One of its most persistent problems over the years has been the recruitment and retention of
qualified personnel.
Background of the Business
Gibson Mortuary is a family business headed by Ethel Gibson, who owns 51 percent of the stock. As an
active executive in the business, Ethel is recognized
as a community leader. She has served in various civic endeavors, been elected to the city council,
and served one term as mayor. The mortuary has built a reputation as one of the finest funeral homes in
the state. The quality of its service over the years has been such that it continues to serve families over
several generations. While large corporations have bought up many mortuaries in recent years, Gibson
Mortuary continues to remain competitive as an independent family firm—a “family serving families.”
Funeral homes in general have recently become the target of public criticism, and books such as The
American Way of Death refl ect adversely on this type of business.
Nevertheless, Gibson Mortuary has withstood this threat by its determined, consistent effort to provide
the best possible customer service. In its most recent year, it conducted 375 funerals, which places it in
the top 9 percent of all funeral homes in the nation when measured in terms of volume of business.
Ethel’s son, Max Gibson, entered the business after completing military service and became general
manager of the firm. He is a licensed funeral director and embalmer. Both mother and son are active in
the day-to-day management of the firm.
Recruitment and Retention Problem
Perhaps the most difficult problem facing Gibson Mortuary is the recruitment and retention of qualified
personnel. The image of the industry has made it difficult to attract the right caliber of young people as
employees. Many individuals are repelled by the idea of working for an organization in which they must
face the fact of death daily. In addition, the challenges raised by social critics reflect poorly on the
industry and conveyed to many people the impression that funeral homes are profiting from the misery of
those who are bereaved. One source of employees is walk-in applicants.
Also, Gibson Mortuary works through local sales representatives who often know of people who might
be considering a change in their careers. As a small business, Gibson Mortuary presents fewer total
opportunities than a larger company or even a funeral home chain. The fact that it is a family business
also suggests to prospective employees that top management will remain in the family. It is apparent to
all that the two top management spots are family positions. However, Ethel and Max (who is
49 years old) are the only family members employed, so there is some hope for the future for nonfamily
employees.
Training Problem
Gibson Mortuary uses two licensed embalmers—Max and another individual. The pressure of other
managerial work has made it difficult for Max to devote sufficient time to this type of work. Any
individual interested in becoming a licensed embalmer has to attend mortuary college (mortuary science
programs are part of some community college programs) and serve a two-year apprenticeship.
The apprenticeship can be served either prior to or after the college training. Gibson Mortuary advises
most individuals to take the apprenticeship prior to the college training so that they can evaluate their
own aptitude for this type of career. Gibson Mortuary prefers its personnel to be competent in all phases
of the business. The work involves not only embalming, but also making funeral arrangements with
families and conducting funerals and burials. However, some part-time employees only assist in
conducting funerals and do not perform preparatory work.
Personal Qualifications for Employment
All employees who meet the public and have any part in the funeral service need to be able to interact
with others in a friendly and relaxed but dignified manner. The personalities of some individuals are
much better suited to this than those of others. Ethel describes one of the problem personalities she had to
deal with as follows: In the first place, he didn’t really look the part for our community here. He was
short and stocky, too heavy for his height. His vest was too short, and he wore a big cowboy buckle!
Can’t you see that going over big in a mortuary! He wanted to stand at the door and greet people as they
came. We do furnish suits, so we tried to polish off some of the rough edges. But he was still too
aggressive. He became upset with me because I wouldn’t get him any business cards immediately.
One day I had to send him to the printer, and he came back and said, “While I was there, I just told them
to make some cards for me. I’ll pay for them myself.” I said to him, “Willis, you go right back there and
cancel that order! When you are eligible for cards, I’ll have them printed for you.”
We couldn’t have him at that point scattering his cards with our name all over town. Another young
applicant made an impressive appearance but lacked polish. His grammar was so poor that he lacked the
minimal skills necessary for any significant contact with the public. Two characteristics of employment
that discourage some applicants are the irregular hours and the constant interruptions that are part of the
life of a funeral director. A funeral director might start to do one thing and then find it necessary to switch
over to another, more urgent matter. Also, some night and weekend duty in the work schedule is required.
Solving the Human Resource Problems
Although Gibson Mortuary has not completely solved its need for qualified personnel, the business is
working at it. While waiting for the right person to come along, Gibson Mortuary started another
apprentice prior to any college training. In addition, it is following up on a former apprentice who worked
during summer vacations while attending mortuary college. The business also employs a part-time
minister as an extra driver. In these ways, Gibson Mortuary is getting along, but it still hopes to do a
better job in personnel staffing.