BA 3305 Entrepreneurship MIDTERM
effectual or causal
2 ways opportunities can be pursued?
promotion, product, price, and placement
4 Ps of marketing
when you need to gain basic experience, when you lack the resources, when you face a narrow window of time, when you are uncertain about the demands
4 times part-time entrepreneurship makes sense?
business plan
A document designed to detail the major characteristics of a firm—its product or service, its industry, its market, its manner of operating (production, marketing, management), and its financial outcomes on the firm's present and future
Entrepreneurial ecosystem
A specific configuration of the environment that reflects the components that are most central to developing a strong and active community of start-up businesses
pop-up business
A temporary business that offers services or products in a variety of locations for a brief period at a time
episodic businesses
A temporary, project-based, or sporadically operating business.
Tangibility
An item's capability of being touched, seen, tasted, or felt
3,000
Big businesses can sometimes need this many ideas to get one successful product
Imitative
Characterized by being like or copying something that already exists.
price gouging
Charging an outrageously high price for something
word of mouth, personal contact, door-to-door, party sales, trade shows and exhibitions, and vending machines
Direct sales categories?
External environment
Everything outside the business
Passion, Perseverance, Promotion-Prevention Focus, Planning Style, Professionalization
Five Ps of Entrepreneurial Behavior?
Elasticity
From economics, the idea that the market's demand for a product or service is sensitive to changes in its price
small business
Involves 1-50 people and has its owner managing the business
Services
Nonphysical products
Channels
People and firms who connect producers of goods and services with customers
sales leads
People who receive a promotional impression and who give some thought to buying the product
Goods
Physical products
elastic product
Product for which there are any number of substitutes and for which a change in price makes a difference in quantity purchased
inelastic product
Product for which there are few substitutes and for which a change in price makes very little difference in quantity purchased
Planning Style
Ranging from comprehensive to habit-based, this reflects how much and about what you ordinarily plan
Prospects
Sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase
opportunity recognition
Searching and capturing new ideas that lead to business opportunities.
Consideration
Stage that is the process of getting into the prospective customer's final list of brands of products or services they are considering for purchase
Awareness
Stage that is the process of getting your message out as much as you can to your target market
Interest
Stage that is the process of prospective customers taking some action to learn more about the product, service, or your company
Radical innovation strategies
Strategies that reject existing ideas and present a way to do things differently.
Incremental strategies
Strategies that take an idea and offer a way to do something better than it is done now.
Perseverance
The ability to stick to activities over long periods, even in the face of setbacks
hybrid entrepreneurship
The process of initiating a business while simultaneously remaining employed for wages or salary
Succession
The process of intergenerational transfer of a business
Buyout
The purchase of substantially all of an existing business
marketing funnel
The rule of thumb in marketing that it takes a large number of people to be made aware of your product in order to find a purchaser
liability of newness
The set of risks faced by firms early in their life cycles that comes from a lack of knowledge
Feel Check Plan Do
The steps of the Entrepreneurial Process?
Action
The visible behavior a person takes
Bootstrapping
Using low-cost or free techniques to minimize your cost of doing business
catalogs, flyers, letters, videos, mail order, and anything else that can be mailed, faxed, called, or emailed
What are examples of Direct mail?
lack of agreement, separation of work and family issues, and handling of endings
What are some Team problems?
calculated as a portion of a known number, soft estimates such as traffic counts or questionnaire results, using the hit rate
What are some sales forecasting methods?
value of promotion
What is directly tied to the sales it produces
impression
What it is called when someone notices a promotional effort
Perishability
When a service that if it is not used when offered, it cannot be saved for later use
Takeoff
after the success stage, characterized by rapid growth
task environment
comprises those institutions the firm deals with directly
internal environment
consists of everyone within the firm
causal model of entrepreneurship
create a particular product or service that does not yet exist, and to achieve that end, you have to cause the product or service to exist.
Emergence
first stage, where the entrepreneur moves from thinking about starting the business to actually starting the business
You may start a new business, You may buy an existing business, You may franchise a business, You may inherit a business, You may be hired to be the professional manager of a small business.
five ways that people get into small business management?
Demand, Value, Prices set by competing firms, Your business strategy and product placement
four key factors for determining optimum price?
resource maturity
fourth stage, characterized by relatively stable or slowly rising sales and profits over several years
Word of mouth
good starting point and is low cost, but is not controllable and is limited in reach.
Teams
majority of businesses are started by?
Spouses or life partners
most common form of team
Marketing
one of the basic building blocks for your business plan and your road map to what you want to do; it can't be set in concrete
start-ups marketing plan
plan that helps define how the firm will build its brand and relationship with customers.
established businesses marketing plan
plan that is a key step in imagining how a firm might reposition itself and maintain its relationship with customers
role conflict
problem that arises when people have multiple responsibilities, such as parent and boss, and the different responsibilities make different demands on them
Existence
second stage, marked by the business being in operation but not yet stable in terms of markets, operations, or finances
general environment
sectors shaping the larger world
work and personal experience, imitation of a similar business, a chance happening, discussions with family and friends, education and experience, and online searches for "idea sites."
sources for new businesses?
manufacturer's suggested retail price (MSRP)
target price set by a manufacturer for a product or service intended to provide profit for each intermediary in the distribution channel
Strategy
the idea and actions that explain how the firm will make its profit
Awareness, Interest, Consideration, Purchase
the stages in customer development process?
Success
third stage, marked by the firm being established in its market, operation, and finances
Entrepreneurial Life Cycle
· emergence, existence, success, and resource maturity
family business
A firm in which one family owns a majority stake and is involved in the daily management
Franchise
A legal agreement that allows a business to be operated using the name and business procedures of another firm
start-up
A new business that is started from scratch
Entrepreneur
A person who owns or starts an Organization
self-efficacy
A person's belief in his or her ability to achieve a goal
Cognition
A person's way of perceiving and thinking about his or her experience.
markup pricing
A price-setting method where an amount is added to the cost of a product to set the retail price and provide a profit
Heterogeneity
A quality of a service in which each time it is provided it will be slightly different from the previous time
Inseparability
A quality of a service in which the service being done cannot be disconnected from the provider of the service
organizational culture
A set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company
entrepreneurial alertness
A special set of observational and thinking skills that help entrepreneurs identify good opportunities
Purchase
Stage where a person buys your product or service and becomes a customer of your firm
o First step involves reviewing and confirming the goals that define your firm and knowing your magic number o The second step is where you consider your customers and the benefits you want to offer them and plot these out in a procedure called perceptual mapping. o The third step is to study the dynamics and trends of your industry using a technique called industry analysis in order to identify the best way and time to enter business. o Fourth step involves building on the prior three steps to determine the best strategic direction and strategy for the firm
Strategic planning four-step process?
Imitative strategies
Strategies that take an idea that somebody else has already discovered and build a business around that idea
outbound (calling the customer) and inbound (customer calling your firm)
Telemarketing two forms?
Markup
The amount an entrepreneur adds to costs to provide a profit
Margin
The amount of profit, usually stated as a percentage of the total price
Promotion-Prevention Focus
The behaviors related to pursuing gains and preventing losses
Passion for Innovation
The belief that If the team is always thinking about making things better for customers, one another, the firm, and its offerings, it will mean the best days are always ahead of all
Passion for the Team
The belief that Team members need to feel good about one another as people and professionals and want to help one another. It isn't enough to avoid toxic employees
Passion for the Mission
The belief that The team needs to believe in the business, its goals, products, and services
Passion for the Customer
The belief that a team that is always thinking about the customer and how to make their experience better will in turn make customers passionate about the company
Passion for Fairness
The belief that an organization that seeks to always be fair creates teams and individuals who emulate this
law of supply and demand
The economic theory that describes how the demand for products (or services) and the supply of them affect each other
Professionalization
The extent to which a firm meets or exceeds the standard business practices for the industry
external legitimacy
The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business or the owner's family
internal understanding
The extent to which employees, investors, and family members involved in the business know the business's purposes and operations
Volatility
The frequency of business starts and stops
Industry
The general name for the line of product or service being sold, or the firms in that line of business
optimum price
The highest price that will produce your desired level of sales in your intended market
Passion
The intensely positive feeling entrepreneurs have for their business
magic number
The post tax income the entrepreneur personally seeks from the business.