Business chapter 6 and 7

Identify the different types of entrepreneurs

1. A classic entrepreneur identifies a business opportunity and allocates available resources to tap that market. 2. A serial entrepreneur starts one business , runs it and then starts and run additional businesses. 3. A social entrepreneur uses business principles to solve a social problem. 4. Change agent is a manager who tries to revitalize an established firm. 5. Intrapreneur is a person who develops innovations within a large company.

Explain why people choose to become entrepreneurs

1. Desire to be ones own boss. 2. Desire to succeed financially. 3. Desire for job security. 4. Desire for an improved quality of life.

what are the types of organization structures

1. Line organization. 2. Line and Staff organization 3. Committee organization Matrix organization

what are the steps in the decision making process?

1. Recognition of a problem or an opportunity. 2. Development of alternatives. 3. Evaluation of alternatives. 4. Selection and implementation of the chosen alternatives. 5. Follow-up to determine the effectiveness of the decision

Management hierarchy

1. Top management 2. Middle managers 3. Supervisors

difference between small business owners and entrepreneurs

1. entrepreneur are motivated by growth and expansion while small business owners are motivated by sales and profits. 2. Entrepreneur embrace risk while small business owners avoid it. 3. Entrepreneurs are focused on future opportunities while current opportunities are the focus of small business owners. 4. Entrepreneurs seek scaling of business and view the company as an asset be managed or sold 5. Small business owners are often content with current size of business and are sentimental about a firm (family tradition).

from what sources might a leader derive power? Which leadership style might work best for a manager whose firm is forced to make cost-cutting decisions?Why?

A leader may derive power from his/hers position in the company, their personality, or his/her expertise and experience. If a manager had to make cost-cutting decisions, the leadership style that would work best would be autocratic, because he/she is in a situation of crisis and a leader has to be quick and decisive in his/her decision-making, and cannot depend on the opinions of others in such a manner.

Is a social entrepreneur simply a philanthropist

A philanthropist generally promotes human welfare through charitable innovations , while a social entrepreneur pioneers new ways to advance social causes and thus enhance social welfare.

what is the purpose of an organization chart

An organization chart is a visual representation of a firm's structure that illustrates job positions and functions.

Identify the styles of leadership as they appear along a continuum of greater or lesser employee participation.

At one end of the continuum , autocratic leaders make decisions without consulting employees. In the middle of the continuum , democratic leaders ask employees for suggestions and encourage participation. At the other end of the continuum , free-rein leaders leave most decisions to their employees.

Why is it important for an entrepreneur to have high energy level and strong need for achievment

Because start-up companies typically have a small staff and struggle to raise enough capital , the entrepreneur has to make up the difference by working for long hours. A strong need for achievement helps entrepreneurs enjoy the challenges of reaching difficult goals and promotes dedication to personal success.

Identify the educational factors that help expand current opportunities for entrepreneurs.

College classes Business schools help students start their business other organization e.g. Centre for Entrepreneurial leadership

What is the relationship between the managers planning and controlling functions

Controlling is evaluating an organizations performance to determine whether its accomplishing its objectives. The basic purpose of controlling is to assess the success of the planning functions. Controlling also provides feedback for future rounds of planning.

Describe the two main types of financing that entrepreneurs may seek for their business? What are the risks and benefits involved with each?

Debt financing is where you burrow money from a lender which you eventually have to repay back. Pros 1. you're in control of how that extra capital gets spent 2.A business loan won't leave a lasting impact on how your business gets run, other than the loan payments you'll owe. 3. Flexible. Cons 1.You're paying for the cash you get. 2. it can be tough to qualify for the loan you want. 3.If you fail to repay the loan, your business's assets could get seized by the lender. Equity financing is where you trade ownership of your business to investors or venture capitalists -- in return for their capital. Pros 1.You don't have to pay interest on the capital you raise, 2.With the right investors, you can get great experience, wisdom, industry connections and much more. 3.If your business fails, you're not required to pay back investments. Cons 1.it takes a long time 2.You're giving away ownership of your business, and with that, decision-making power.

What is meant by an entrepreneurs vision?

Entrepreneurs begin with a vision, which is an overall idea for how to make their business idea a success, and then passionately pursue it.

Summarize the process of starting a new venture

Entrepreneurs must select an idea for their business , develop a business plan , obtain financing and organize the resources they need to operate their start-ups

What are the two most important considerations when choosing an idea for a new business plan

Finding something you love and are good at doing. Determining whether the idea can satisfy a need in the market.

What are factors that support and expand opportunities for entrepreneurs.

Globalization Education Information Technology Demographic and Economic trends

Suppose an entrepreneur is considering buying an existing business or franchise. Which of the eight entrepreneurial traits do you think would most apply to this person, and why?

I believe the most apply to this person will be the willingness to fail because some business might fail while going thru that type of change.

how doe entrepreneurs differ from managers

Managers direct the efforts of others to achieve an organizations goals. The drive and impatience that entrepreneurs have to make their companies successful may hurt their ability to manage.

what type of organization structure that provides a firm with the most flexibility to respond to changes in the marketplace and engage in innovation ? What might be the drawbacks of this structure?

Matrix. A Matrix Organizational structure would provide the most flexibility to respond to changes in the marketplace, but the drawbacks of this structure consist of "integrating skills of many specialists in a coordinated team" and the mangers have to adjust employees' regular workloads.

distinguish between programmed and non-programmed decisions

Programmed decisions such as reordering office supplies are simple and happen frequently so procedures for these can streamline the process . non programmed decisions such as the purchase of real estate or equipment require more individual evaluation.

What is seed capital?

Seed capital is the money that is used to start a company.

Identify the four basic managerial functions. Suppose you were hired to be a manager of a local restaurant . Which managerial functions would likely be the biggest part of your job. Why?

The four basic managerial functions are Planning, Organizing, Directing, and Controlling. If I were the manager of a local restaurant, directing would be the biggest and/or the most important part of the job because it requires motivating and training employees to meet the company's standards.

what is intrapreneurship? How does it differ from entrepreneurship?

The main difference between Entrepreneur and Intrapreneur is that Intrapreneur is an employee, and an Entrepreneur is free and the leader of the operation. Intrapreneurship is the change initiatives taken within a going concern by the people working in that organization

What do classic entrepreneurs and social entrepreneurs have in common

They both identify opportunities and allocate resources to pioneer new innovations.

How do entrepreneurs generally feel about the possibility of failure

They view failure as a learning experience and are not easily discouraged or disappointed when things don't go as planned

Why would large companies support intrapeneurship

To retain an entrepreneurial spirit and promote innovation and change

What are the three levels of management hierarchy? For each level, which management skills might be considered most important, and why?

Top Management — Conceptual skills would be the most important in this level, because CEOs have to know the "big picture" of their company so that they can make the best decisions in regards to developing new products and long-range plans. Middle Management — Human skills are the most important at this level because these managers have to understand people inside and outside of the business and know how to communicate properly and effectively with their employees and know how customers think so that they can have a good idea on when and where to sell a certain product to produce as much sales as possible. Supervisory Management — Technical skills are the most important at this level because these managers have to know how to operate machinery and technology, as well as how to train and look over non-manger employees.

How do the jobs of top managers, middle managers, and supervisory managers differ?

Top managers develop long-range plans , set a direction to their organization , and inspire all employees to achieve the company vision. Middle managers focus on specific operations , products or customers. They develop procedures to implement the firms strategic plan. Supervisory managers interact directly with nonmanagerial employees who produce and sell the firms goods and services .They are responsible for implementing the plans developed by middle managers and motivating workers to accomplish immediate goals.

Identify personality traits of entrepreneurs

Vision Tolerance for failure and ambiguity High energy levels Creativity Need to achieve Internal locus of control Self confidence and optimism

Identify each of the following as a programmed or non-programmed decision: a. reordering printer cartridges b. selecting a cell phone provider c. buying your favorite toothpaste or shampoo at the supermarket d. selecting a college to attend e. filling your car with gasolin

a. reordering printer cartridges - non- programmed b. selecting a cell phone provider - programmed c. buying your favorite toothpaste or shampoo at the supermarket - non - programmed d. selecting a college to attend - programmed e. filling your car with gasoline- non-programmed

What factors affect the entrepreneurs job security

an entrepreneurs job security depends on the decisions of customers and investors on the cooperation and commitment of the entrepreneurs own employees.

venture capitalists

business firms or groups of individuals that invest in new and growing firms in exchange for an ownership share

what is the difference between debt financing and equity financing

debt financing is money burrowed that must be repaid. Equity financing is an exchange of ownership shares in their company for money supplied by one or more investors.

what are the traits of effective leaders

empathy , self-awareness and objectivity in dealing with others

what tools do entrepreneur use to create a new business

entrepreneurs combine their ideas and drive with money , employees and other resources to create a business that fills a market need

Define leadership

leadership is the act of motivating others to achieve certain goals.

to what extent is entrepreneurship possible in different countries and what opportunities does globalization create for todays entrepreneurs

market their products abroad and hire international talent

What is an entrepreneur?

person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business

define management

process of achieving organizational objectives through people and other resources. The managers job is to combine human and technical resources in the best way possible to achieve company's goals.

What is skunkworks?

project initiated by an employee who conceives an idea and then recruites resources from within the company to turn that idea into a commercial project

what does chain of command mean?

sets of relationships that indicates who directs which activities and who reports to whom