Business Ventures Quiz 2
Place -
- Channels - Coverage - Locations - Transport
Promotion
- Sales promotion - Advertising - Sales force - Public relations
Price
-List price - Discounts - Payment period - Credit terms
Product
-Product variety - Quality - Design - Features
Profit
A financial gain, esp. the difference between the amount earned and the amount spent in buying, operating, or producing something
Income Statement
A financial statement showing the revenue and expenses for a fiscal period.
Balance Sheet
A financial statement that reports assets, liabilities, and owner's equity on a specific date.
Flow Chart
A graphical representation of the progress of a system for the different steps of the manufacturing problem.
Business Strategy
A leadership plan that achieves a specific set of goals or objectives and compete in the market domain.
cover letter
A one-page document on business stationery that introduces the business plan and the business owner to the recipient and indicates why the recipient is being asked to read the plan. Also called letterhead
Stock Exchange
A place where shares in a company or business enterprise are bought and sold.
Operations Management
A specialized area in management that converts or transforms resources (including human resources) into goods and services.
Needs
A state of felt deprivation or necessity.
Interest
A sum paid or charged for the use of money or for borrowing money
System
A system converts input into output, and usually consists of "processes"
Liabilities
Amounts owed to creditors
Executive Summary
At the start of business plan - overview of the business, its business model, market, expectations, and immediate goals.
Cycle Time (CT)
Average time between completion of successive units of products
Lenders
Banks, individuals, companies, car companies. Anyone who allows individuals to borrow money.
Targeting
Choosing the segment(s) that will allow an organization to most efficiently and effectively attain its marketing goals.
Relationships
Connections you have with other people and groups in your life.
price floor
Customer's lowest perception of product value
Price Ceiling
Customer's max perception of product value
Positioning
Designing the company's offering and image to occupy a distinctive place in the minds of the target market(s).
Segmentation
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.
Demands
Human wants that are backed by buying power. Given their wants and resources, people demand products and services with benefits that add up to the most value and satisfaction.
Capacity
Maximum output rate that can be sustained
Throughput
Output rate (output/unit time) that units actually being processed
The Four "P's"
Product, Price, Place, Promotion
STP
Segmentation, Targeting, Positioning
Marketing Skimming
Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay high prices. Fewer, but more profitable sales.
value proposition
Small business owners' unique selling points that will be used to differentiate their products and/ or services from those of the competition.
Costs
The expenses involved with manufacturing, promoting, and distributing a product
Wants
The form that a human need takes as shaped by culture and individual personality. People have narrow basic needs but almost unlimited wants.
Target Customer
The inteded group to which a product or sevice is marketed or advertised
Transformation Process
The process that converts resources into finished goods and services
order fulfillment
The processes involved in responding to customer orders.
Pacing
The speed and time it takes for cycles of the different production steps to be completed
Process
The steps in production.
Customer Decision making Journey
The steps that a consumer goes through from first realizing a product exists all the way through to finally purchasing it:
Potential Market Size
Total Estimated market population/size for your Market Domain
Transactions
Trade between two parties
Goals -
What do you expect from the Business? What is you product/service? How innovative/imitative will you be? Who do you plan to sell to? Where do you plan to sell?
Penetration Rate
What proportion of all the potential customers you have identified can you serve?
Sourcing
When a business outsources to other companies to make intermediate goods that are part of the company's overall production (ex: computer chip in an Iphone)
Purchase -
a consumer decides to actually purchase a product
Awareness
a consumer first realizes a product or service is available and that they might want or need it
Evaluation
a consumer researches the product and considers competing products in order to form opinions
Business Model Canvas
a diagram of how a company creates value for itself and its customers
Interview guide
a list of all the questions and possible probes an interviewer asks in an interview, as well as notes about how the interviewer will begin and end the interview
Quality Management
a management approach that establishes an organization wide focus on quality
Market Penetration
a marketing strategy that tries to increase market share and market presence among existing customers.
Value based pricing
a method of setting prices based on customer perceptions of value
creditor
a party that has a claim on the services of a second party. It is a person or institution to whom money is owed. (commercial banks, credit unions)
investor
a person or organization that puts money into financial plans, property, etc. with the expectation of achieving a profit. (Self funding, Angel investors, Personal investors, Venture capitalists, Crowdfunding)
Business Model
a plan that details how a company generates revenues
Marketing
a process by which companies create value for customers and build strong customer relationships to capture value from customers in return
Market
a set of actual and potential buyers of a product or service.
Total Available Market -
all customers who have the means to purchase the product/service
Loans
amounts of money borrowed which will accumulate interest
Budget
an estimate of income and expenditure for a set period of time.
Efficient
being effective without wasting time or effort or expense
Time Chart
diagram used to visually review the time dedication necessary for the different steps of the business system.
revenue
income
Angel Investors
individuals who invest in start-up companies with high growth potential in exchange for a share of ownership
competitor based pricing
involves setting prices based on competitors' strategies, prices, costs, and market offerings
Assets
money and other valuables belonging to a business
effective
one that enables the organization to accomplish its strategy
service organization
one that transforms resources into an intangible output and creates time or place utility for its customers
Venture Capitalists
persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock
Demand forecasts
projections of a company's sales for each time period in the planning horizon
Probing
prying or persistently searching for specifics when interviewing
Leading Questions
questions that predispose a respondent to answer in a certain way (have the answer in the question)
Crowdfunding
raising money for a project or venture by obtaining many small amounts of money from many people
Snowballing
refers to market research carried out with individuals who then suggest other friends, family members or colleagues, thereby increasing the sample size. Tends to produce samples of very similar people.
Cost Based Pricing
setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk
Marketing Offers
some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Exchange
the act of obtaining a desired object from someone by offering something in return
Price
the amount of money charged for a product or service.
Principle
the amount you borrow and goes down as you begin to pay it back
Marketing Management
the art and science of choosing target markets and building profitable relationships with them
Procurement
the buying and reselling of goods that have already been produced
Customer Value
the consumer's assessment of the product's overall capacity to satisfy his or her needs.
Expense
the cost of goods or services used to operate a business
equity
the difference between liabilities and assets. The share price is used to figure out the equity value.
customer satisfaction
the extent to which a product's perceived performance matches expectations
Outputs
the goods, services, and ideas that result from the conversion of inputs
Supply Chain Management
the management of flows among firms in the supply chain, which primarily decides the quantity of a good/service to supply in order to maximize total profitability
Finance
the management of money or funds for companies.
Logistics
the management of the details of an operation
Maximum Perceived Value
the maximum price the public is willing to pay for a good or service.
Marketing Myopia
the mistake of focusing only on existing wants and losing sight of underlying consumer needs
inventory
the quantity of goods that a firm has on hand, or final goods that are currently unsold
Market Share
the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
Inputs
the resources—such as labor, money, materials, and energy—that are converted into outputs
Manufacturing Organization
the transformation process of turning raw materials into physical goods.
ask
the ultimate sum a business is seeking from investors
Self Funding
when the owner of the business uses their personal finance to fund the business
Non-judging language -
words that do not put a negative interpretation to what the person is sharing.
