gb 370 ole miss gentry

Pursuit of opportunity without regard to resources currently controlled:

- id the opportunity - develop the concept - determine required resources - acquire necessary resources - implement and manage - harvest the venture

bold competitive advantage

-acquire unique resources -gain first mover advantage -business level strategy -corporate level strategy

what shareholders want: (all want diff things)

-capital gains--stock % gains -dividends--fixed income -environmental responsiveness -legit hiring practices

implementing strategies

-competitive advantage -competition and strategy

understanding profitability--Porter's Five Competitive Forces

-competitive rivalry -threat of subs -power of customer/buyers -power of suppliers -threat of new industries

levels/stages of money

-concept stage: small amount from family, friends, etc -setup shop stage: medium amount from banks or angels -scale massively stage: large from venture capitalists, crowd equity

levels of strategies and outcomes

-cultural/internal work environment -industry factors -environmental concerns

Porter's Generic Strategy (business)

-differentiation -overall cost leadership -focus

BCG Matrix classifications

-dogs: have small market value shares and no growth prospects--kill -cash cows: large shares of mature markets -question marks: small market shares in fast growing markets--divest, priorities -stars: large shares of rapidly growing markets--invest

theory Y management example

-empowerment -Maslow's Needs -job enrichment

emphasizing distinctive competencies

-id niches in established markets -id new markets

ways orgs respond the their environments

-info mangement -strategic response -mergers, acquisitions, alliances -contingency/scenario planning -org design and flexibility

debt

-interest -monthly check to repay -easier to maintain control

10 basic managerial roles--3 categories

-interpersonal -informational -decisional

theory X management example

-management by objectives -evidence based management -market based -management science

corp disadvantages

-more expensive -more complex regulations -more tax prep -owners pay double taxes

step 1 of getting financed

-plan -know how much money you need -decide how much cash you need to operate first year -create 12 month budget -pay attention to what can be reduced

how do you impact organizations culture?

-policies and procedures -talk a lot about a goal, legend, person -really big company parties

LLCs

-provide pass through taxation -limited liability -easy to file -mostly anonymous -estimated quarterly taxes

corporate strategies

-single-product -related diversification -unrelated diversification -BCG Matrix -deliberate strategy -emergent strategy

sources of management skills

-sound educational base -initial job experience -successful acquisition and utilization of basic management skills

what are venture capitalists looking for

-strong management -proprietary strength -window of opportunity -market potential -return on investment

purposes of mergers and acquisitions

-through vertical integration -acquire complimentary products linked by a common technology and customers -create synergies that reduce the combined orgs costs of doing business to increase revenue

equity

-voting rights on business -control -larger amounts -lose some control

types of capital

1. debt 2. equity

types of corporations

C Corp--shareholders S Corp--only 100 shareholders LLC--limited liability corporation

difference between S and C corp

S can only issue one class of stock C can only be owned by individuals

lean startup part 3

accelerate: if you are not going fast you are going to get run over and someone will steal the idea

earth angels

an investment angel is a source of private capital

single product strategy (corp)

an org manufactures one product and sells it in a single geographic market

the science of management

assumes that problems can be approached by using rational, logical, objective, and systematic ways

direct influence of the environment

attempting to change the nature of the competitive conditions...pursuing new or changed relationships with suppliers customers and regulators

forward vertical integration

beginning a business previously handled by an intermediary and selling more directly to customers

backwards vertical integration

beginning a business that furnishes resources previously handled by a supplier

how environments affect organizations

change in 2 ways -degree to which change in the enviro is occurring -degree of homogeneity or complexity of the environment

the internal environment

conditions and stakeholder forces within an organization--owners, board of directors, employees, physical work environment, culture

the most common type of financing

debt

strategic business units

each business or group of them within an org is engaged in serving the same markets, customers, products

decisional manager roles

entrepreneur, disturbance handler, resource allocator, negotiator

unexpected changes and upheavals in the enviro of the organization

environmental turbulence

BCG Matrix

evaluates a portfolio of businesses on the growth rate of their respective markets and each businesses relative share of its market...compares firms market share, how big they are right now, with the growth of the industry

SWOT analysis

evaluating organizational needs mission-->SWOT-->good strategies-->

lower interest rates make ______

everything cheaper and are supposed to fuel inflation

gaining first mover advantage

exploiting an opportunity and learning more about the market before anyone else

interpersonal manager roles

figurehead, leader, liaison

lean startup focus

focus is experimentation and creating a framework to change strategy

limited partnership

general partners who own and operate and assume liability...limited partners are investors and have nothing to with day to day

if you buy something you are ______

getting credit from the vendor

if you sell something you are ______

giving credit to the consumer

the franchise agreement

governs the operation of a franchise by the entrepreneur

business level strategy

how the individual brand/company operates within the industry -Porter's -alternatives

corporation

independent legal entity separate from its owners requiring more regulations...more complex and expensive

business model canvas (example)

infrastructure-key activities offering-what value is offered customers-segments, relationships finances-costs and revenue (xerox)

overcome weaknesses by

investments to obtain strengths needed, modification of the mission so it can accomplish with the current work force

strategy formulation

literally just write down what you want to do...set of processes involved in creating or determining the strategies of the org...focusses on the content

strategic response (to the enviro)

maintaining the status quo..altering the current strategy or adopting new ones

the art of management

making decisions and solving problems using a blend of intuition, experience, instinct, and personal insights

strategy implementation

methods by which strategies are operationalized or executed with in the org..focusses on process through with the strategies are achieved

MVP

minimum viable products

capital

money to start your business and buy things you need--broad term used for money you NEED

informational manger roles

monitor, disseminator, spokesperson

nonaffiliated angel

no connection to either you or your business

sustained competitive advantage

occurs when a distinct competency cannot be easily duplicated

competitive disadvantage

occurs when an org fails to implement strategies being implemented by competitors

unrelated diversification (corp)

operates multiple businesses that are not logically associated with each other

overall cost leadership

org attempts to gain competitive advantage by reducing costs below competitors...marketing and sales focus on simple attributes and how they meet needs ex) Timex

common strengths

org capabilities possessed by numerous competing firms

focus

org concentrates on a specific regional market, product line, or group of buyers ex) Tag

related diversification strategy (corp)

org operates in several different businesses industries or markets that are somehow linked..similar tech, consumers, distribution ex) crest makes paste, brushes, floss

differentiation

org seeks to distinguish itself from competitors through the quality of its product..marketing and sales emphasize high quality and value ex) Rolex

general partnership

partners manage the company and assume responsibility for the debts and obligations

emergent strategy (corp)

pattern of action that develops over time in the absence of goals or missions

venture capital

people who invest in early stage startups

sole proprietorship dis advantage

personally responsible for liabilities

organizational resources

physical human informational financial

deliberate strategy (corp)

plan chosen and implemented to support specific goals that is the result of rational, systematic, and planned process of strategy formulation and implementation

small business

privately owned by one individual or a small group and has sales and assets that are not large enough to influence its environment

organization

purpose is to achieve something--a group of people in a structured and coordinated fashion to achieve a set of goals

debt

receiving the money in the form of a loan that you have to repay--not selling any part of your business banks, commercial lenders, personal credit cards

franchise advantages

reduced financial risk, support from the franchiser

imitation of distinctive competencies

removes the competitive advantage of competency

culture

set of internal values, beliefs, behaviors, customs, and attitudes that determine the feel of the organization

organizational strengths

skills and abilities enabling an org to conceive and implement strengths

organizational weaknesses

skills and capabilities that do not enable an org to choose and implement strategies that support their mission

sole proprietorship

solo, simple, taxes included on personal income tax return

entrepreneur

someone who engages in entrepreneurship

affiliated angel investor

someone who has contact with you but not really acquainted or related to you

manager

someone whose primary responsibility is to carry out the management process--plans, makes decisions, physical, and info resources

franchise disadvantage

startup fees, limitations of the franchise, loss of independence

lean startup part 2

steer: do not hypothesize the customer, collect as much data as possible, experiment

amount of venture capital out there depends on what

stock exchange

corporate strategy

system by which you decide what not to do

fundamental management skills

technical, conceptual, communications, time management, decision making, diagnostic, interpersonal

diversification

the number of businesses an org is engaged in and the extent to which these businesses are related to each other

entrepreneurship

the process of planning, organizing, operating, and assuming the risk of a business

alternatives (business)

the set of strategic alternatives that an org chooses from as it conducts business in a particular industry or market

lean startup part 1

the vision: experiment with the idea...the most basic premise MVPs, brand name, ex) netflix

a driving force that influences organizational decisions

uncertainty

distinctive competencies

useful for competitive advantage and superior performance

Hawthorne studies

work place lighting effects on productivity example