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Application Questions · Q1

Q.Anshuman was a very industrious sales executive with a small herbal-cosmetic manufacturer. He earned a good salary and a commission on the business he brought in, and had such a strong command over the Delhi market that he had virtually become indispensable to the firm. Aware of his enviable position, he thought to himself that the key to success in any business is the sale of its products — the beginning and end of the business cycle — and that the people working in the factory are mere 'cogs' set in motion by sales people. So why, he wondered, should he carry this burden for only a tiny share of the firm's prosperity, and why should others enjoy the fruits of his labour instead of him starting his own business? Should Anshuman take a leap? Give reasons for your answer.

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Anshuman has real entrepreneurial strengths (initiative, market command, achievement drive), but his view that 'only sales matters' is a weakness; he can take the leap only if he prepares for the full range of entrepreneurial roles and is ready to bear calculated risk.

Whether Anshuman should take the leap can be reasoned out by weighing his strengths against the gaps the case reveals.

Points in favour of taking the leap:

  1. Initiative and drive. Anshuman is industrious and has taken the lead in building business — an important entrepreneurial competency.
  2. Opportunity-spotting and market command. His strong command over the Delhi market shows an ability to perceive and capture market opportunities.
  3. Achievement motivation and desire for autonomy. His wish to earn a fair share of the value he creates, and to be his own master rather than work for a tiny share, reflects the need for achievement and autonomy that drives entrepreneurs.

Points of caution:

  1. A one-sided view of business. Anshuman believes that sales is the beginning and end of business and that production staff are mere 'cogs'. In reality an enterprise requires the entrepreneur to organise production, manage finance, technology, people and public relations — not sales alone. …

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