MGMT 475

Explain the BRIE model

(Boundary) Creating a place for your business—in location and in people's minds (Resources) The money, product, knowledge, etc., that make up the business (Intention) The desire to start a business (Exchange)Moving resources/products/ services in exchange for money

Outline and describe the strategic planning process

As owner, what do you expect out of the business? What is your product or service idea (and its industry)? For your product or service, how innovative or imitative will you be? Scale: Who do you plan to sell to—everyone or targeted markets? Scope: Where do you plan to sell—locally, regionally, nationally, globally?

What are the planning styles of entrepreneurs?

Comprehensive planners take a long-term view, develop long-range plans for all aspects of the business, are comfortable with planning, and act based on the plans they've developed. Critical-point planners plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed. It is not a very long-term approach to planning. Opportunistic planners generally start with a goal and look for opportunities to achieve it. Once they find a good opportunity, even if it isn't the one related to their original goal, they act on it, so it is very short term in orientation. Reactive planners are completely passive, waiting for cues from the environment to determine what actions to take. Their focus is entirely short term, and there is little in the way of goals driving their efforts. They can make the most of a situation because there is no other plan competing for their attention. Habit-based planners do not really plan at all because their actions are dictated by their routines. They do today what they did yesterday. They don't plan, and they don't even tend to react to changes in their environments.

Features vs. Benefits

Consumers don't buy products for their features; they buy products for the benefits or emotional rewards they receive for using the product.

RBI Model

a fast technique for making initial assessments (called screens) of prospective business ideasbased on five questions.

How would you describe an entrepreneur; and the different types?

a person who owns or starts an organization, such as a business Self-employed Founders Franchise

The way that newly created goods, services, or firms hurt existing goods, services, or firms is referred to as

creative destruction

Describe the common behavior of entrepreneurs.

the inclination to undertake invention and innovation

Explain the ways that small businesses differ from larger firms.

A small business involves 1-50 people and has its owner managing the business on a day-to-day basis.

An opportunity that makes it possible for a new business to gain a foothold in a market is referred to as a(n) _____.

Entry Wedge

What are the various types of rewards for the entrepreneur?

Growth, Income, Flexibility

What are some pitfalls of small business owners?

Not Having a Business Plan. ... Unrealistic Capital Requirements. ... Ignoring Marketing. ... Lazy Financial Record-keeping. ... Growing Too Quickly.

Explain the difference between artisan and opportunistic entrepreneurs.

Opportunistic entrepreneurs are normally the brains behind an operation. ... Artisan entrepreneurs, on the other hand, are obsessed to possess a skill or talent that helps them to build a business. They're hesitant to delegate authority and prefer personal high touch client development.

Gabriel has a product idea of a device which he believes will help people manage their daily chores, hence making their lives easier. He is unsure if the device is actually a feasible product but shares the idea with his boss and coworkers anyway. Gabriel is positive his device will get a fair review. He has offered other ideas in the past and one was now a viable product for the company. Which of the four ideas for making a creative business culture best describes Gabriel's company?

Positively reinforce ideas.

Explain promotion focus vs. prevention focus.

Promotion-focused people see their goals as creating a path to gain or advancement and concentrate on the rewards that will accrue when they achieve them. ... Prevention-focused people, in contrast, see their goals as responsibilities, and they concentrate on staying safe.

Describe the various types of businesses in relation to size.

Sole Proprietorships. Partnerships. Corporations. Limited Liability Companies (LLC)

Explain the "magic number" and how is it important?

The post-tax income the entrepreneur personally seeks from the business

Explain the SCAMPER model

a creativity tool that provides cues to trigger new ideas for your business

What is scale vs. scope?

scale: size of the market scope: Knowing your market scope helps deciding where to focus sales and advertising efforts Knowing your target market gives you a way to know which competitors to worry about most, namely those within your market scope