Small business management

________ is a strategic action.

Acquiring a competitor

Which of the following statements is not true of imitation and innovation?

Almost two-thirds of people starting businesses today plan to use innovation as their approach.

Most industries have both broad mass markets and narrow niche markets.

True

________ are classic strategies for businesses of all types and they include differentiation, cost, and focus.

Generic strategies

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following parts of a business plan is focused on creating new products or services and preparing new technologies, ideas, products or services for the firm's market?

R&D

A securities disclaimer on the title page of a business plan is needed to comply with the Securities and Exchange Commission rulings.

True

Eventually, mature industries begin a decline stage. Some industries face death, while others find new life in a process called retrenchment.

True

Market scale refers to the geography of the target market.

False

Selling your product or service in a limited area, for a limited time is known as parallel marketing.

False

The supra-strategies are designed to work when there are very few small business in an industry, along with many larger firms.

False

________ is the general name for the line of product or service being sold, or the firms in that line of business.

Industry

________ is referred to as the extent to which employees, investors, and family members involved in the business know the business's purposes and operations.

Internal understanding

Which of the following is true of the entry wedge of second sourcing?

It provides a competitive pressure to ensure that suppliers keep providing the best service and prices.

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following statements about the market section of the classic business plan is not true? Marketing plans remain the same across any multiple target audiences. Target audiences are also called customer segments. The market section builds on material you may have developed in the IDEO, business model canvas, and feasibility analyses done earlier. Some people prefer to relocate the competition and competitive advantage section from the market section to the industry section.

Marketing plans remain the same across any multiple target audiences.

Which of the following is a cost benefit?

Organizational practice

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following statements concerning pitch decks is correct?

The contents of a solid pitch deck are very well known.

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following statements is true of an elevator pitch?

The goal of an elevator pitch is to sell the idea of a business to another.

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following statements is true of the company section of a business plan?

The product/service subsection mentions any protection through a proprietary technology.

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following plans is most useful for demonstrating a new technology or service or to reach a market that is widely spread out?

a proof-of-concept website

Which of the following types of value benefits is most likely to be offered by a product if it helps the community, a group, the environment, or the world?

altruism

Amy plans to open a laundromat with a gym. She got the idea from the laundromat with a bar and game rooms, which she visits regularly. She wants to test her idea by starting out in a small space with the focus on the laundromat and a small space allocated for gym equipment. Amy's idea is an example of

an incremental innovation

The one or more benefits that are important to your customers that your competitors do not offer represents your

competitive advantage.

A law firm needs to present a business plan to government officials. Which of the following is most likely to be expected by the officials in the business plan?

compliance with regulations and laws

Marketing focuses on the ________, while strategy focuses on the ________.

customers; competition

Raj is starting a flower shop. He knows his magic number and has mapped his distinctive competencies. What is the next step for Raj in the small business strategy process?

industry analysis

Changes in competitors, sales and profits in an industry over time are referred to as

industry dynamics

Which of the following is most likely to be the key information that joint venture partners seek in a business plan?

intellectual property protection

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following terms refers to a paragraph that describes the firm's goals and competitive advantages?

mission statement

Which of the following is a strategic action?

new product introductions

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. A(n) ________ plan gives the basic overview of a firm and a detailed look at the financials.

screening

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. "WaterVision Cams: Atlanta's Only Underwater Cameras" is an example of a(n)

tagline.

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. The sales plan of a marketing strategy focuses on

the day-to-day specifics of how sales are achieved.

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. A good marketing strategy is most likely to focus on

the longer-term competitive plan.

Your ________ is your unique selling points that customers can expect from your goods or services, including those that differentiate your offerings from those of the competition.

value proposition

The financial statements in a business plan include income statements, cash flow, balance sheet, and their respective assumptions.

True

As a firm gets more experience, it can often work with fewer mistakes and greater efficiencies, thereby lowering costs. This leads to the cost benefit of ________.

learning

Gross profit is defined as:

what is left after deducting the cost of goods sold.

Imitation minus one degree of similarity

would be the business equivalent of cloning. Page: 191

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following is not addressed in the executive summary?

the pitch deck

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. What is the goal of appendixes?

to provide supporting information that helps detail the key selling points of a plan

Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following sections of a classic business plan mentions the legal structure, key personnel, key partners, key activities and operations, and business location?

the organization section