Comm Midterm 1

diversified

2 unrelated segments w very different needs/issues

Multi-sided platforms/markets

2/more interdependent segments

reward

ability to bestow positive benefits

revenue streams

cash generated from each customer segment

Task-oriented behaviors

clarity of roles and expectations

expert

comes from having special knowledge

Relationship-oriented behaviors

concern for others

broad differentiation

differentiate product to appeal to broad spectrum of buyers

trade-off strategies

embrace one or risk having none at all

pooled interdependence

everyone deals w common resource/input and completes task on their own, at the end results are added together

want

gap between what is and what is desired

strategy

general plan to achieve one or more long-term or overall goals under conditions of uncertainty

referent

influence because of admiration

corporation

legal entity entirely separate from parties that own it

value driven structure

less concerned w cost implication, focus on quality

self-service

maintains no direct relationship w customers

operating plan

manufacturing/operating system to be used

centralization

most decision making concentrated at top

key resources

most important assets required to make business model work, allow enterprise to execute other functions, depends on model type

transaction revenues

one-time customer payments

customer relationships

relationships a company establishes w specific customer segments

asset sale

selling ownership rights to physical good

retailing

sells to consumers

automated services

simulates personal relationship

Fundamental attribution error

tendency to overemphasize internal causes of another person's poor behavior or performance/underemphasize external factors

key activities

things company does to make business model work, depends on model type, same goals as key resources

TOWS

threats, opportunities, weaknesses, strengths

VRIO

valuable, rare, costly to imitate, organized to capture value

disproportionate influence

when others are willing to allow you to direct their attention/action

business plan

written description of business's future

coercive

ability to punish if don't comply

hostile takeover

acquisition where company doesn't want to be acquired

communities

allow users to exchange knowledge/solve each other's problems

low cost provider

appeal to broad spectrum of customers by under-pricing rivals

intrapreneurs

apply entrepreneurial skill within a corporation, enjoy freedom w employers providing regular salaries/financial backing, take less personal risk

legitimate

authority inherent in role

personal assistance

based on human interaction

goal setting theory

based on premise that intention to work towards a goal is a primary source of motivation

small business owner

be your own boss, generate steady income, make conscious decision to stay small

reinforcement theory

behavior is a function of consequences - positive, negative, or none

value proposition

benefits offered to consumer by product

debt

borrowed funds repaid with interest over stated time period

entrepreneur

build scalable business model, take risks, have longer run view

company overview

business type, background,

wholesaling

buys from manufacturers, sells to retailers

niche market

cater to specialized segments

co-creation

co-create value w customers

organization

collection of people working together to achieve a common purpose

overall cost leadership

competitive advantage based on developing/distributing products more efficiently than competitors

focused low cost

concentrate on narrow buyer segment/market niche, outcompete rivals by having lower costs

focused differentiation

concentrate on narrow buyer segment/market niche, outcompete rivals by offering customized attributes that better meet tastes/requirements

agency problem

conflict of interest when one party is supposed to act in best interest of the other

manufacturing

creates goods

marketing

customers and competition

competitive scope

defines breadth of the company's target market

task interdepedence

degree/form in which group members must rely on one another for inputs to perform their tasks efficiently

brokerage fees

derives from intermediation services performed on behalf of two or more parties

cost structure

describes all costs incurred to operate business model

customer segments

different groups of people/organizations an enterprise aims to serve

job specialization

dividing tasks into jobs, leads to efficiency

operational effectiveness

doing the same things better

mass market

don't distinguish between different segments

matrix structure

employees from various functional areas form teams to combine skills in working on project/product

reciprocal interdependence

everyone's outputs becomes everyone's inputs and vice versa

escalation of commitment

fear of changing plans will result in loss of sunk costs/embarrassment from admitting mistake

advertising

fees for advertising for particular product/service/brand

financial plan

financial needs and sources of financing, projections, historical statements

cost driven structure

focus on cost minimization

motivation

forces within a person that affect direction, intensity, and persistence of voluntary behavior

recurring revenues

from ongoing payments for continuing services/after-sale services

bootstrapping

fund operation with own resources

equity

funds raised through sale of stock, those who provide get share of business profit

need

gap between what is and what is required

commerce

general exchange of goods and services

subscription fees

generated by selling continuous access to a service

usage fee

generated by use of particular service - the more the service is used, the more the customer pays

best cost provider

gives customers more value for their money by satisfying requirements on key attributes WHILE beating their price expectations

licensing

giving customers permission to use protected intellectual property - in exchange for licensing fees

functional structure

group together people w comparable skills/perform similar tasks, each unit headed by someone w expertise

departmentalization

grouping jobs into units

channels

how customer segments are reached to deliver value proposition

equity theory

how fairly they are treated in comparison to coworkers

self-fulfilling prophecy

impact of expectations on performance

IPO

initial public offering, first sale of company's shares to public/listing of shares on stock exchange

management plan

key players and their experience

maxi-maxi

leverage strengths to exploit opportunities

maxi-mini

leverage strengths to overcome weaknesses

sole proprietorship

makes all important decisions, but receives all income

unity of command

management principle that workers should report to just one boss

social facilitation

mere presence of other people enhances predominant behavioral responses in that situation

key partnerships

network of suppliers/partners making business model work

span of control

number of subordinates who report directly to a manager

LLC

only taxed on personal level (no double taxation)

big 5 personality traits

openness, conscientiousness, extraversion, agreeableness, neuroticism

strategic focus

organization is clear about mission/vision, has coherent and well-articulated strategy for achieving goals

business

organization seeking to provide goods/services to customers

capabilities

organizational/managerial skill

mini-mini

overcoming weaknesses to avoid threats

mini-maxi

overcoming weaknesses to exploit opportunities

own/indirect channels

own stores

partnership

owned jointly by 2 or more people

partner/indirect channels

partner stores/wholesalers

interactional justice

perceived degree that respect is given

distributive justice

perceived fairness of outcome

procedural justice

perceived fairness of process used to determine outcome

expectancy theory

probability of individual acting a certain way depends on strength that individual's belief that the act will have a certain outcome/whether they value it

leadership

process involving disproportionate influence over others in pursuit of goals

focus on particular market niche

products/services are designed to meet needs of customers

angel investors

provide financing for start up businesses by investing their own money, "seed capital"

service

provides services to consumers

acquisitions

purchase of one company by another

management

pursuit of organizational goals through the use of organizational resources

core competencies

resources/capabilities that create competitive advantage, something you do better than anyone else

classic entrepreneur

risk takers starting companies based on innovative ideas

own/direct channels

sales force, web sales

confirmation bias

seeking out/paying attention to information confirming/aligning with our decisions/beliefs/values opinions

not for profit companies

serve public purpose instead of personal gain, no income tax

process

set of behaviors/responses that continue for some period of time

C corp

shareholders who have stake in the company, board of directors, top management

segmented

slightly different needs/issues

change-oriented behaviors

speaking up, innovating, learning, adapting

venture capital

specialize in financing small/high growth companies, receive ownership interest/voice in management in return for money

dedicated personal assistance

specific representative to specific client

decentralization

spreads decision making throughout organization

multi-preneurs

start series of companies

micropreneur

start small and plan to stay small

publicly held

stock available for sale to general public

privately held

stock only held by few individuals who can't sell to general public

coopetition

strategic alliances b/t competitors

vision and mission statement

strategy, philosophy, values

divisional structure

structured similarly to standalone companies, w certain common tasks centralized at HQ level

differentiation

superiority of good/service due to things other than cost

resources

tangible and intangible assets

renting/lending/leasing

temporarily granting someone exclusive right to particular asset for a fixed period - in return for fee

social loafing

tendency for average levels of effort in a group to mask an individual's lower level of output on a task

self-serving bias

tendency to attribute our own successes to internal factors... and our failures to external factors

mergers

two companies combine to create new company

product/service plan

unique features, why customers will buy

sequential interdependence

unique task completed by each person in specified order using unique inputs

VRIO framework

used to determine whether resources/capabilities are source of sustained competitive advantage

growth-oriented entrepreneurs

want business to become major corporation

chain of command

who reports to who