MGT 342- Chap 4-6

What is an independent small business?

A firm owned by an individual or small group.

What is a brainstorming session?

A group attempting to list as many new ideas as possible without critiquing or commenting.

What is chance?

Being at the right place at the right time.

Which occupation does NOT have a high number of entrepreneurs?

Doctors.

What are examples of sources of ideas in a causal approach to starting a new business?

Education or expertise, idea websites.

What is another term for a pain in the business model canvas approach?

problem

What does the 'key partners' section of the business model canvas describe?

the ways individuals and organizations help make the business successful

What is true about the customer segments section of the business model?

1. Each customer segment usually has its own problem and value proposition. 2. Customer segments build from the IDEO screen work-up. 3. There is often more than one type of customer segment.

How can self-efficacy be defined?

A person's belief in his or her ability to achieve a goal.

What is a pilot test?

A preliminary run of a business, sales effort, program, or website with the goal of assessing how well the overall approach works and what problems may come up.

What is the IDEO screen?

A technique for performing a rapid initial analysis of ideas to determine their potential.

What is the effectuation model of entrepreneurship?

Approach where entrepreneurs start with their skills, knowledge, and networks and talk to people they know to determine commitment to ideas.

What is a practice that can create an innovative frame of mind?

Ask customers what problems they cannot solve on their own.

What are the five primary areas to evaluate the potential of a business opportunity?

Business idea, product/service, industry and market, financial projections, and plan for future action

____ involves having a special set of observational and thinking skills that helps businesspersons identify good opportunities.

Entrepreneurial alertness

Which of the following statements about the feasibility study are correct?

Evaluating the potential of a business opportunity by investigating five primary areas.

Which of the following statements about the feasibility study are correct?

Examining strengths and weaknesses of each opportunity within each of the five areas.

What is entrepreneurial alertness?

Includes motivation to search for opportunities and ability to notice overlooked things.

What is a practice that can create an innovative frame of mind?

Invite new people to a problem-solving meeting.

What is opportunity recognition?

Involves creative thinking that results in the discovery of novel and useful ideas.

Which of the following statements regarding pilot testing are correct?

It is meant to be an interactive way to test the fit of the solution to customers.

Who manages a small business on a day-to-day basis?

Its owner.

The key ______ section of the business model canvas describes the ways individuals and organizations help make the business successful.

Key Partners

What are the effects of small businesses on job creation?

Key employers, responsible for net new jobs, created 65.9% of new jobs since 2000.

What section of the business model canvas describes how the business will best care for its most valuable resource?

Key resources

A ________ is a legal agreement that grants the rights to use a particular piece of intellectual property.

License

A person or organization offering the rights to use a particular piece of intellectual property is referred to as the

Licensor

There is much a small business can do to create memorable images and advertising for itself, and it does not need expensive television ads to do it. Which element of SCAMPER is being referred to here?

Magnify

Who are buyers?

People who purchase an existing business.

Rejecting existing ideas, and presenting a way to do things differently refers to the ________ strategy.

Radical innovation

Which of the following are recommended techniques for practicing innovation?

Reading trade journals outside one's industry.

Which of the following are recommended techniques for practicing innovation?

Redesigning the work environment.

What is a practice that can create an innovative frame of mind?

Regularly scan the environment and discuss trends and events that could affect the business.

What is the opportunity identification process?

Steps entrepreneurs use to assess whether the situation faced is the same or has changed.

Which of the following statements about the feasibility study are correct?

The areas consist of: the business idea, product/service, industry and market, financial projections, and plan for future action.

What is social entrepreneurship?

The form of entrepreneurship that involves the creation of self-sustaining not-for-profit or for-profit organizations that invest significant profits in charitable activities.

Who pays for the rights to use intellectual property?

The licensee.

What is creativity?

The process of producing a novel and useful idea or opportunity.

Which of the following statements regarding pilot testing are correct?

The test usually provides fairly significant feedback on how well the approach works.

What is an occupation?

The type of activity a person does regularly for pay.

Why do many innovations come from small businesses?

They are more flexible, entrepreneurs are freer of judgments and social constraints, generate more patents per employee.

One should examine the strengths and weakness of each opportunity within each of the five areas.

True

True or false: The opportunity identification process assesses whether the situation faced has changed.

True.

Which of the following are recommended techniques for practicing innovation?

Trying a mini-internship.

What is a rarely used source of business ideas?

Universities and government agencies.

What are some characteristics of factor-driven economies?

Wages tend to be lower, little manufacturing, rely on farming, mining, and forestry.

What do entrepreneurs need to think about in the causal model of entrepreneurship?

What they need to do to bring their new product or service into existence.

How can a business best care for its most valuable resource?

customer relationships

What does the 'revenues' section of the business model canvas describe?

how the business will earn profits solving its customers' problem or pain

What is the term 'gain' in the context of the business model canvas approach?

one of the driving forces to create new services or products

What does a comparison between costs and revenues help assess in a business?

profit potential

What does the 'key activities' section of the business model canvas describe?

the most important actions central to making a firm successful

How many employees does a small business have?

50 or fewer.

What is a gain?

Any kind of outcome customers or potential customers would like to encounter or be able to depend on.

What are some examples of factor-driven economies?

Pakistan, Jamaica, and Venezuela.

What is a customer segment?

A group or subgroup of potential purchasers that can be approached in a coherent manner.

What is a problem?

Also called a pain, it is what the company's product or service is seeking to solve for customers.

What is a feasibility study?

An evaluation of the potential of a business opportunity by investigating five primary areas: the business idea, product/service, industry and market, financial projections, and plan for future action.

What is a pain?

Any problem, annoyance, source of aggravation, shortcoming, or suboptimal situation customers or potential customers face.

What is the causal model of entrepreneurship?

Approach based on an individual's dreams or ideas about new or yet-to-be-created products or services.

What is a key idea when starting a business?

Doing good for others helps the entrepreneur feel better about their business and life and helps the business.

What is the correct order for the entrepreneurial process?

G

What are some examples of innovation-driven economies?

Germany, the Republic of Korea, and the United States.

What is entrepreneurial alertness?

Having observational and thinking skills to identify good opportunities.

Which of the following is true of entrepreneurial alertness?

It allows entrepreneurs to notice things that have been overlooked.

What does the customer relationships section of the business model canvas describe?

It describes how the business plans to build and maintain relationships with its customers.

What is the solution section of the business model canvas?

It focuses on how the business plans to handle the problem-solving pains or create gains for its customers.

What is true of cost in a business model canvas?

Most elements of a business model canvas are affected by a business's costs.

Which statements about the 'key partners' section of the business model canvas are correct?

Most small companies rely on individuals and organizations to help develop the business deliver on its promise in its value proposition. Attorneys, accountants, and advisory board members are other examples of key partners. Well-regarded suppliers that provide raw materials and partners that provide advice inspire confidence in the customer's eyes.

What takes place during a brainstorming session?

Participants are asked to think of a situation or a product or service.

What are pitfalls that entrepreneurs may fall victim to when attempting to become more innovative?

Pitfalls include judging ideas too quickly, identifying the wrong problem, and stopping with the first good idea.

What section of the business model canvas focuses on the pain to be solved and potential gain customers will benefit from?

Problem

What were the findings of Gaglio and Katz regarding opportunity identification?

Serial entrepreneurs can fashion new ideas in any situation, experienced entrepreneurs think of various business ideas depending on the situation.

In the context of the opportunity identification process, which of the following were the findings of Gaglio and Katz?

Serial entrepreneurs can fashion new ideas in nearly any situation. Experienced entrepreneurs think of various kinds of business ideas depending on the situation.

What are main street businesses?

Small businesses found on the most important road of a typical American city.

What are small businesses that imitate what other firms are doing called?

Small businesses.

What does the key activities section of the business model canvas describe?

The most important actions that are central to making the firm successful.

Who is the licensee?

The person or firm obtaining the rights to use intellectual property.

What do individuals need to think about in the process of entrepreneurship?

What they need to do to bring their new product or service into existence.

What are innovation-driven economies?

Nations where jobs and revenues come from new ideas and technologies.

What are entrepreneurial businesses characterized by?

Offering innovative products, services, or business models.

What is an individual's dreams or ideas about new or yet-to-be-created products or services referred to as?

Opportunities and business creation.

True or false: Educational institutions and government agencies develop few new technologies.

False.

A ______ evaluates the potential of a business opportunity by investigating five primary areas: the business idea, product/service, industry and market, financial projections, and plan for future action.

Feasibility study

What are the steps in the effectuation model of entrepreneurship in order?

Feel, Check, Plan, Do.

What is the order of the entrepreneurial process?

Feel, check, plan, and do.

What are some characteristics of innovation-driven economies?

Focused on high-value-added manufacturing, large service sector providing high-end services.

What is identifying the wrong problem?

Mistakenly identifying a problem that is not the root cause.

________ requires an entrepreneur to assess whether the situation faced is one that is the same as it has been traditionally or if it is changing.

Opportunity identification process

What are true statements about the business model canvas?

1. It is a great way to identify and organize key information about a business and its goals. 2. It is an analytic tool used in developing a start-up that appeals to customers, competes well, and earns a profit. 3. It consists of 11 factors such as value proposition, key partners, and revenue streams.

What is stopping with the first good idea?

Settling for the first idea that seems good without exploring other possibilities.

Which statements about the process for organizing creative thinking are correct?

N/A

What is the four-step process for an entrepreneurial start-up to succeed?

Feel, check, plan, do.

What is judging ideas too quickly?

Making quick judgments about ideas without fully evaluating them.