Model paper

Dean's Office Official Model Question Paper

MGT 301 · Entrepreneurship

Programme
BHM
Academic year
Semester 5
Paper type
Official Model Question
Sitting
Dean's Office Blueprint
Full marks
60
Duration
180 minutes

Tribhuvan University

Faculty of Management

Office of the Dean

Official Model Question Paper / Dean's Office Blueprint

Course: MGT 301 · Entrepreneurship

Level: Bachelor of Hotel Management (BHM) · Semester 5

Full Marks: 60

Time: 3 hrs.

Candidates are required to give their answers in their own words as far as practicable. Figures in the margin indicate full marks.

Group A

Brief Answer Questions. Attempt ALL questions. (5 × 2 = 10)

[5*2=10]

  1. Differentiate between an entrepreneur and an intrapreneur.

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    Entrepreneur vs. Intrapreneur

    • Entrepreneur: An individual who conceives an innovation, assumes personal financial and operational risks, and builds a new enterprise from scratch.
    • Intrapreneur: An innovative employee within an established corporation who drives entrepreneurial initiatives and new product ventures using the company’s capital and resources without assuming personal financial liability.

  2. What is bootstrapping in startup financing?

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    Bootstrapping

    A method of self-funding where an entrepreneur builds a business using solely personal savings, sweat equity, and operational cash flows without accepting outside debt or venture equity investment.

  3. State the three core components of a Feasibility Study.

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    Core Feasibility Study Components

    1. Market Feasibility: Customer demand, market size, competition.
    2. Technical / Operational Feasibility: Technology, site location, supply chains, equipment.
    3. Financial Feasibility: Start-up capital, cash flow forecasts, break-even point, ROI.

  4. Define Angel Investors and Venture Capitalists (VCs).

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    Angel Investors vs. VCs

    • Angel Investors: High-net-worth individuals who invest personal funds into early-stage seed startups in exchange for equity.
    • Venture Capitalists (VCs): Institutional investment firms that deploy pooled funds from institutional investors into high-growth, later-stage startups.

  5. Name four types of Intellectual Property Rights (IPR).

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    Intellectual Property Rights (IPR)

    1. Patents (Inventions and technical processes)
    2. Trademarks (Brand names, logos, slogans)
    3. Copyrights (Original literary, musical, and artistic works)
    4. Trade Secrets (Proprietary business formulas, algorithms, recipes)

Group B

Descriptive Answer Questions. Attempt any THREE questions. (3 × 10 = 30)

[3*10=30]

  1. Explain the Lean Startup Methodology formulated by Eric Ries. Detail the Build-Measure-Learn feedback loop, Minimum Viable Product (MVP), and Pivot vs. Persevere decisions.

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    The Lean Startup Methodology

    1. Core Philosophy:

    Traditional business planning often expends substantial capital building products that customers do not want. The Lean Startup approach advocates validated learning through rapid, iterative experimentation.

    2. The Build-Measure-Learn Feedback Loop:

    1. Build: Formulate business hypotheses and rapidly construct a Minimum Viable Product (MVP)—the simplest version of a product that allows collecting maximum validated customer learning with least effort.
    2. Measure: Deploy the MVP to real target users and measure behavior using actionable quantitative metrics (conversion rates, repeat orders) rather than vanity metrics.
    3. Learn: Analyze empirical data to decide whether to Pivot (fundamentally shift the strategy or customer segment while keeping the vision) or Persevere (scale the existing validated product model).

  2. Explain the structure of a comprehensive Business Plan. Detail the essential sections: Executive Summary, Company Description, Market Analysis, Operational Plan, and Financial Plan.

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    Structure of a Comprehensive Business Plan

    1. Executive Summary: High-level synopsis of business concept, unique value proposition, target market, competitive edge, and funding requirements.
    2. Company Description & Mission: Vision, legal structure (Pvt. Ltd., partnership), founding team background, and long-term milestones.
    3. Market Analysis & Strategy: Industry trends, customer segmentation, competitor analysis, pricing strategy, and promotional channels.
    4. Operational & Management Plan: Production facilities, technology platforms, supply chain logistics, staffing hierarchy, and day-to-day workflows.
    5. Financial Plan & Projections: 3-to-5-year pro forma income statements, cash flow budgets, balance sheets, break-even analysis, and investor return projections.

  3. Analyze Franchising as a growth strategy in hospitality. Discuss the rights, benefits, and obligations of both the Franchisor and the Franchisee.

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    Franchising in the Hospitality Industry

    1. The Franchising Relationship:

    Franchising is a contractual arrangement where the Franchisor grants the Franchisee the legal right to operate a business using its established brand name, trademark, recipes, and operating systems in exchange for upfront and ongoing fees.

    2. Benefits & Obligations:

    Stakeholder Benefits Obligations & Costs
    Franchisor Rapid market expansion with low capital expenditure; steady royalties. Must provide initial training, site selection criteria, centralized marketing, and brand quality audits.
    Franchisee Instant brand recognition, tested business model, higher survival probability. Pays upfront franchise fee and monthly royalties (4–8% of gross sales); strictly adheres to corporate SOPs.

  4. Discuss the institutional and regulatory environment for startups in Nepal. What challenges and opportunities do hospitality entrepreneurs encounter regarding licensing, taxation, and venture financing?

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    Startup Ecosystem in Nepal

    1. Opportunities:

    • Rich natural tourism assets, rising youth domestic travel culture, and surge in experiential dining.
    • Growing penetration of digital payment gateways (eSewa, Khalti, Fonepay) and cloud software.

    2. Challenges:

    • Regulatory Red Tape: Bureaucratic hurdles across multiple government tiers (Company Registrar, Ward Office, Tourism Department, Inland Revenue Department).
    • High Cost of Capital: Commercial bank lending requires physical land collateral; early-stage venture equity and angel investor networks remain nascent.
    • Brain Drain: High outward migration of skilled hospitality labor to the Gulf and Australia.

Group C

Comprehensive Answer / Case Analysis Question. (1 × 20 = 20)

[1*20=20]

  1. Case Study: Venture Conception & Pitch for ‘Himalayan Cloud Kitchens’

    Two enterprising BHM graduates identify an untapped market opportunity in Kathmandu: commercial office workers and urban households demand hygienic, chef-curated traditional Nepalese and healthy continental meals, but traditional restaurants suffer from high prime-location rents and declining dine-in footfalls. They plan to launch ‘Himalayan Cloud Kitchens’, a delivery-only multi-brand virtual kitchen operating out of an inexpensive basement space in Baluwatar.

    They require NPR 6,000,000 in seed investment to set up the central kitchen, develop proprietary ordering web-apps, and launch three virtual brands (‘Mitho Momo’, ‘Buddha Bowls’, ‘Dalle Burger’).

    As Lead Entrepreneur: a. Construct a Business Model Canvas (BMC) covering all 9 building blocks. b. Formulate a Customer Acquisition Strategy leveraging food delivery aggregators (Foodmandu, Bhojdeals) versus proprietary direct delivery. c. Prepare a 3-Year Financial Forecast (Revenue, COGS, Operating Expenses, Breakeven Analysis). d. Deliver an Investor Pitch Deck outline justifying why angels should invest NPR 6M for a 25% equity stake.

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    Comprehensive Venture Blueprint: Himalayan Cloud Kitchens

    a. Business Model Canvas (9 Building Blocks)

    1. Value Proposition: Fast, hygienic, chef-crafted meals delivered in under 35 minutes using eco-friendly packaging at 30% lower prices than dine-in restaurants.
    2. Customer Segments: Corporate desk workers, busy urban families, late-night students in Kathmandu.
    3. Channels: Proprietary mobile web-app, third-party delivery aggregators (Foodmandu, Pathao Food), social media ordering.
    4. Customer Relationships: Automated loyalty points, app-based live order tracking, proactive customer recovery for delayed orders.
    5. Revenue Streams: Direct meal sales, corporate lunch subscriptions, catering trays.
    6. Key Resources: Low-cost central commissary kitchen in Baluwatar, standardized recipe software, high-speed commercial induction ranges.
    7. Key Activities: Bulk ingredient prep, culinary assembly, dispatch logistics, digital performance marketing.
    8. Key Partnerships: Organic vegetable farmers in Kavre, local packaging manufacturers, delivery fleets.
    9. Cost Structure: Food cost (32%), labor wages, cloud hosting, aggregator commissions, digital marketing.

    b. Customer Acquisition Strategy

    • Phase 1 (Aggregator Leverage): List on Foodmandu and Pathao Food to build instant brand awareness.
    • Phase 2 (Direct Conversion): Include exclusive ‘Rs 150 off your next direct order’ flyers and dessert vouchers inside every delivery bag, driving users to order directly via WhatsApp or the proprietary app to eliminate 20% aggregator commissions.

    c. 3-Year Financial Projections (NPR)

    Metric Year 1 Year 2 Year 3
    Average Daily Orders 250 orders 600 orders 1,200 orders
    Annual Gross Revenue (NPR) 18,250,000 43,800,000 87,600,000
    Food Cost (COGS at 32%) (5,840,000) (14,016,000) (28,032,000)
    Gross Profit 12,410,000 29,784,000 59,568,000
    Operating Expenses & Rent (8,500,000) (16,200,000) (28,500,000)
    Net Profit Before Tax 3,910,000 13,584,000 31,068,000
    • Breakeven Point: Achieved at 145 daily orders (Month 5).

    d. Investor Pitch Justification (NPR 6M for 25% Equity)

    • Post-Money Valuation: NPR 24 million.
    • Capital Deployment: Kitchen setup (Rs 3.5M), Tech & App Development (Rs 1.0M), Marketing & Working Capital (Rs 1.5M).
    • High Returns: Projected Year 2 net profit of Rs 13.5M yields an annual dividend return of over 50% on initial investment, with potential exit via strategic buyout by a regional hospitality group.