ENT 5216 Exam 1
-fit within the biz -alignment within the biz
Implementing a strategy is about:
-biz model -customer problem -product offering
Important elements of a one-page pitch:
guide for the running of the business
Unlike the biz plan of a venture capital-backed biz, the ent biz plan is developed as a _____.
Economic Gardening
program in US that helps new ent bizzes in an area
-provides larger firms flexibility -refers to an excess of resources -is not a characteristic of typical ent ventures
organizational slack
-race -gender -religion -parents
Research suggests that successful new biz ideas are NOT determined by your:
50
The EU considers any biz with fewer than ___ employees to be a small biz.
mission, strategy
The _____ is the foundation on which the firm's ___ is built.
-pricing of products -quality and availability of parking -facility's square footage
cost factors that play into finances of a business
one-page pitch
document that lays out the crucial info about a new business idea and provides an effective starting point for every potential employee, investor, or supplier
1. the firm's mission statement is employed to specify where the firm is to compete and how 2. detailed strategic plan is laid out specifying a series of resource and capabilities 3. strategy meets the criterion of being defendable for some length of time 4. strategy needs to be constantly reevaluated
four logical steps in developing the firm's strategy
business plan for new ent biz
this is developed to serve as a guide to manage the biz, provide potential investors with critical info, and to provide a self-evaluation
brief explanation of the biz idea
Along with the biz idea, what else should be included in the 1st column of the gap analysis chart?
metric
A ___ is a measure used to evaluate whether a person or firm is meeting its goals
15-25
A business plan for a small business typically runs ____ pages long.
-memorable -clear -widely known -succinct
A company is more likely to make money if the mission statement is ___.
capabilities
A firm's ___ are resources that combine to allow the firm to perform better than its competitors
Gross National Product
According to the world bank, the presence of ent small and medium sized business enterprises is one of the strongest factors in the growth on any nation's ______.
managerial theory that believes individuals act to maximize their own benefit
Agency theory
desire to own and operate a biz
First step of ent
-running of biz -funding of biz -design of biz
Founders of a biz need to be involved in:
-to be a guide to managing the biz -to provide self-evaluation -to provide investors with necessary info
Goals of the biz plan for a new ent biz?
Ent Bizzes
Great Depression was harder on more mature or ent bizzes?
by analyzing whether the competitors of the firm would actually try to match the firm
How is the durability of a new firm's unique resource or capability evaluated by the ent?
strategy
Implementing a ____ is about fit and alignment within the biz.
25-45
Venture capital backed biz plan typically runs from ____ pages long.
-knowledge widely dispersed -no one person is critical -greater excess resources
What are characteristics of large businesses?
-dominated the industrial sectors -responsible for some of the great abuses in biz -took advantage of the economies of scale
What are some facts about robber barons?
-number of employees will not be expected to grow over 100 people -start-up is self-funded or closely funded -operation is designed in the image of the founder
What are the characteristics of entrepreneurial firms?
-develop ability to generate consistent and growing sales -sustainable operating profit margin -sufficient resources to get the business to a point where it is self-funding
What are the critical elements that an entrepreneur must solve for success?
-generally dependent on a single person or a few individuals -they have limited flexibility in responding to emergency issues like hiring replacements if the company loses key individuals
What is true about ent bizzes?
the structure of management is designed to take advantage of the skills of the founder or founders of a firm
What is true of ent firms?
they are often formed as high-tech ventures consisting of unique characteristics
What is true of venture capital start-ups?
-cash flow -competitive adv -management team
What needs to be evaluated in order to provide potential investors with the critical info required when developing a new biz plan for a new ent biz?
late 70s to early 80s
What time period did the US see a decline in large multi-national firms and a rise of new opportunities for ent bizzes?
1930s during the Great Depression
When did a big industrial concentration take place?
1880s
When was the initial development of the large industrial base of the US?
Small Business Act
Which act officially organized the US Small Biz Administration?
-provide office machines and basic furniture -provide common receptionists to new bizzes -provide many critical services to new bizzes
incubator facts
exit barrier
investments in bizzes that are not easily recovered are considered ____.
exit barriers
keeps an ent from leaving a biz he or she invested in
short
mission statement should be:
Harvest Plan
plan to exit the business that allows the investors to take advantage of growth
substitute
products perform a similar function or achieve the same result, but are not a precise imitation
1. develop list of biz's assets and capabilities 2. split the list into standard and unique assets 3. evaluate competitiveness of unique resources or capabilities
sustainable competitive advantage
-prior experience -risk tolerance -personality orientation
What are components of the ent orientation concept?
categories of analysis
What is included in the second column of the chart used in the gap analysis?
Robber Barons
Who is associated not only with the success of the industrial base but also with the great abuses in biz?
-change led to a loss of traditional customer base -caused the company to lose its unique positioning in the market
Why did City Circuit's attempt to change direction fail?
Legitimacy
People in an ent's network can help by providing ____ to a new biz.
-appropriate -direct -simple
Key ability to communicate a mission easily is that the statement be:
extensive written procedures
Large businesses often have ____
business owner
The most important single factor in the biz's success?
the gov gather, track, and publish data on specific industries
The primary purpose of the NAICS is to help ____.
Science
The process of forming and managing a new entrepreneurial business in a clear, sequential manner that is rich in practical application and grounded in research is the _____ part of ent biz development.
-appear to be an opportunity -match the founders' skills
The process of generating ideas will result in a list of 3-5 biz ideas that:
99%
The repayment rate on micro-loans is typically:
focused
The success of entrepreneurial businesses occurs because they are simply more _____ than their larger counter parts.
Entrepreneurs
Civic leaders often look to ___ as a means to promote economic strength for a community, region, or state
consumer's response to price changes
Elasticity of demand is the _____.
their view of the world
Ent's prior experience plays a role in new biz creation through ____.
-mission will impact the market in which the firm will compete -mission may impact the major ways in which the firm will compete -mission may impact how broad a geographic range the firm will serve
Examples of the impact of the mission statement:
organizational slack
Excess resources in an organization that allow for redundancy and the quick deployment of personnel in crisis.
-lack of promotion opportunities -inflexibility of large corporations in dealing with the needs of an individual's family and children
Reasons individuals can become frustrated with working in a large corp?
downsizing, growing
Recent trends indicate that larger corporations have been ___, while entrepreneurial businesses have been ____ rapidly.
False
Robber barons were responsible for the collapse of small bizzes in the 1880s. T or F
-product offering -customer problem -biz model
Should be on your one-page pitch:
-generating new employment with ent ventures -providing a basis to the area's economic vitality -providing a growing tax revenue base
Silicon Valley and Boston's 128 corridor
-one's personal skill sets -gap or need not being effectively met in the current market -ability to fill market gaps with the opportunity available
Steps that are important to the development of a quality biz:
small and medium sized
The World Bank estimates that one of the strongest factors in the growth of any nation's GNP is the presence of entrepreneurial ______ enterprises.
500
US Gov considers any biz with less than __ employees a small biz
mission statement
brief statement that summarizes how and where the firm will compete
develop an effective sales generation model
Along with being properly financed and developing sustainable profit margins, in order to be successful, ents must:
-substitute is evaluated based on its similarity to the ent's unique resource and capability -substitute satisfies the same basic need that is satisfied by his or her product or service
Characteristics of a substitute that an ent should evaluate for every resource and capability of his or her biz
-keep it applicable -be specific -keep it simple -keep it short
Characteristics to create a mission statement:
-managers are considered agents -agents often maximize their own benefit -owners always act to maximize the value of the biz
agency theory
-either start or grow quickly to employ a relatively large number of employees -have a developed organizational structure -formed with a harvest plan in place
What are characteristics of a venture capital-backed firm?
-knowledge is widely dispersed throughout the biz -no one person is critical to the biz's survival -have greater excess resources
What are characteristics of large bizzes?
-must be concise -must describe what the company does or does not do -must be understood by all the biz's stakeholders
What are important features of the mission statement?
-what specific skills were required of the hobby -what is it about the hobby that is exciting? -what products/services were used in these hobbies?
What are questions potential biz owners should ask themselves about hobbies
-working on the home -tracing the family history -maintaining family property -cooking with family members
What are some family experiences that build knowledge and can grow into a new biz opportunity?
-requires minimal research -reasonably quick analysis
What are the characteristics of a gap analysis methodology for a new venture?
-start-up is self funded or closely funded -operation is designed in the image of the founder -number of employees will not be expected to grow beyond 100
What descriptions are characteristics of an ent firm?
-the ent might not enjoy the hobby as much as when they began -the ent develops a following of fellow enthusiasts -the ent will stick with the biz through lean times
What happens when a biz is based on a founder's hobby?
-cities with base closings experienced higher income growth -cities with base closings offered tax breaks and programs to support
What happens when a military base closes in an area?
-biz idea -brief explanation of the idea
What is included in the first column of the chart used in gap analysis?
-tax incentives -support classes -financing for the venture
What is provided by the Economic Gardening program in the US?
-skill set -competitive advantage -understanding of an industry
What is synergy a combination of?
analyzing the skill set of the potential founders
What is the suggested starting point for generating biz ideas?
-new biz rarely perform better than competitors in all areas -a comp adv must provide the opportunity to be more profitable than competitors -new biz need to develop one or several fundamental characteristics with which it exceeds the industry's performance
What is true about a biz's com adv?
-ents should visit all potential competitors -one must take a customers perspective from a series of visits -ents must develop a list of criteria that they wish to take away from their visits to customers
What is true about competitive maps?
-these factors are central to developing a comp adv -these factors provide a means for the biz to differentiate itself from competitors -ents need to focus their resources on these factors
What is true about unusual or unique competitive factors?
-high inventory needs -an ent team with a low asset base -rapid expansion costs -high development costs
What would be classified as a threat to operational financing?