ENTR 115 MIDTERM
SAM (serviceable available market)
: a marketing term that refers to the customers within the geographic reach of a firm.
How does a firm sustain competitive advantage through attracting customers and discouraging competition (use strategic and tactical competitive advantage)? (p. 210-216)
A firm can stay competitive in the market against big corporations by using rival companies for suppliers and buyers and using substitutes and alternatives for other resources
traditional Small businesses
A firm intended to provide a living income to the owner, and operating in a manner and on a schedule consistent with other firms in the industry and market
High performing small businesses
A firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small businesses
Lifestyle or Part-time Firm
A small business primarially intended subsistence fincial support for the exsisting lifestyle owner, Most often through the operations that fit the owner schedule and way of working to provide partial or
In the first step of strategic planning, what are the 5 initial key goal decisions? (p. 195-201)
As owner, what do you expect out of the business? What is your product or service idea (and its industry)? For your product or service, how innovative or imitative will you be? Scale: whom do you plan to sell to - everyone or targeted market? Scope: where do you plan to sell - locally, regionally, nationally, globally?
What are the key operational competencies of the successful entrepreneur? (p. 34-36)
Competences Key business functions Resource competences Determination competences Opportunity competencies
What are the elements that go into a customer profile and why is each useful? (p. 279-281)
Elements that go into a customer profile are demographics, pains/gains degree, goals/gains, frustrations/pains, alternatives and substitutes, customer jobs, and customer story. This can give you an accurate reading of how people feel about your product
What are the stages of the small business life cycle? (p. 36-37)
Emergence; existence; liabilities of newness; success; resources; resource maturity; take off
1. What are the customer roles and what does the person in each role do? (p. 278-279)
End user Purchaser Decision Maker Influencer
Explain the difference between factor-driven, efficiency-driven, and innovation driven economies. (p. 19-20)
Factor driven economy is a nation where the major forces for jobs, revenues, and taxes come from farming too extractive industries like forestry, mining, or oil production . An efficiency driven economy is a nation where industrialization is becoming the major force providing jobs revenues in taxes and where minimizing costs while maximizing productivity (i.e. efficiency) is a major goal. An innovation driven economy is a nation where the major forces for jobs revenues and taxes come from high value added production based on new ideas and technologies from professional services based on higher education.
What are the 7 key strategies of the entrepreneurial way? (p. 22-23)
If you don't succeed the first time, try, try again; Scale back; Bird in the hand; Pivot; Take it on the road; Ask for help; Plan to earn
What are the differences between innovative and imitative strategies? (p. 198-200)
Imitative strategy: an overall strategic approach in which the entrepreneur does more or less of what others are already doing Innovative strategy: an overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing
(5 P's of entrepreneurial behavior)? (p. 30-32) Passion
Intense positive feeling an entrepreneur has towards the business or the idea behind the business
Describe the 4 generic growth strategies that account for all businesses? (p. 9-10)
Lifestyle or Part-time Firm traditional Small businesses High performing small businesses High growth venture
. What are the different aspects of the entrepreneurial personality (5 P's of entrepreneurial behavior)? (p. 30-32)
Passion Perseverance Promotion Playing style Professionalization
1. (5 P's of entrepreneurial behavior)? (p.3-32) Promotion
Promotion focus is an entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains. Prevention focus is an entrepreneur's attention to minimizing losses, with a bias towards inaction or protective action to prevent losses.
How does an entrepreneur use SCAMPER as a creative method to recognize new opportunities? (p. 88-91
Scamper is a effective method for helping business owners and their employees come up with alternative solutions and opportunities. The method works because it helps you step outside the usual way you look at opportunities or try to solve problems
What is SCAMPER?
Scamper is a effective method for helping business owners and their employees come up with alternative solutions and opportunities. The method works because it helps you step outside the usual way you look at opportunities or try to solve problems
What is the target market and how does it differ from the other types of markets (TAM, SAM, SOM, PM)? (p. 281-282)
Target market: the name given to one set of nested terms for the market size.
Describe the BRIE model and how it applies to creating a firm. (p. 13-16)
The boundary resources intention exchange (BRIE) model is a proven in handy way to think about the activities necessary to get a business started. Boundaries help set the company up as a firm. It sets it apart from the buying selling or bartering we occasionally do. Resources include the product or service but also informational resources on markets and running a business financial resources and human resources. Intention Is desire to start a business. Most importantly exchange is a moving of resources goods or services to others in exchange for money or other resources
What is a business model canvas, and how do you use it to assess the potential of a business? (p. 95-97)
The business model canvas is an organized way to layout your business idea. Categories include customer segments, problem, solution, value proposition, channels, customer relationships, revenues, key resources, key activities, key partners, and costs. Once you lay out your business model canvas you are able to modify and narrow down your canvas to make it a more feasible reality
How do the different stages of the product life cycle impact a venture's plan for marketing? (p. 306-309)
The introduction stage most small businesses launch a product on a small scale, so profits are naturally low making it harder to emerge in a larger market. During the growth stage companies are not as aware of advertising as they are with ensuring good distribution and keeping up the quality of their product for when quality falls short less interest is drawn towards their product. As time goes on maturity to the product occurs causing the technology to grow old and other competitors finding ways to cut costs. In a product's decline companies cut nearly all advertising funding to squeeze as much money out of the product as possible. when it becomes no longer profitable, the company gets rid of it.
What are the 4 key types of decisions an entrepreneur needs to make to establish a foundation for strategic planning? (p. 194-195)
The major goals you set for your firm. The types of customers you seek and what benefits you plan to offer them. The stage and trend of your chosen industry. The specific generic an supra-strategies you chose to pursue.
. What kind of reward do you think might be the one most often mentioned by Independent entrepreneurs? Corporate entrepreneurs? Social entrepreneurs? (p. 10-11)
The three awards entrepreneurs talk about the most are the growth income and flexibility rewards
What are the steps to segment and further define a venture's target audience? (p. 318-325)
Through segmentation, which is the process divine market into smaller portions of people who have the common characteristics, you are able to find a target market. A target market refers to the group of customers in the area you are playing to serve who would be likely to be interested in your product, or those of competitors. Target markets can refer to individuals or market groups called segments .
How does changes over an industry's life cycle affect a venture's strategy? (p. 206-207)
When entering in market in your strategy you need to look at your competitors in order to best position your firm, but you always want to look at the changes in comp competitors, sales, and profits in your industry (industry dynamics) to make sure it is a good time to enter it.
Decision maker
a customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained.
Purchaser
a customer role that describes an individual or institution that pays for or obtains a product or service.
End user
a customer role that describes the person who eventually makes actual use of a product or service in his or her personal or work life
High growth venture
a firm started with the intent of eventually going public, following the pattern of growth and operations of A big business
SOM (serviceable obtainable market)
a marketing term (also called the target market) that represents the customers that firm expects to be interested in is particular product or service, and able to be serviced by the firm.
PM penetrated market
a marketing term that describes the actual number of customers of an operating firm, divided by the size of the target market, which gives a percentage of the market the firm (or product/service) has attained so far.
TAM (total available market)
a marketing term that refers to all of the people or organizations (in one nation, region, or the world) who might consider a product or service being offered.
Exchange (E)
a moving of resources goods or services to others in exchange for money or other resources
Efficiency Driven Economy
a nation where industrialization is becoming the major force providing jobs revenues in taxes and where minimizing costs while maximizing productivity (i.e. efficiency) is a major goal.
Innovation Driven Economy;l
a nation where the major forces for jobs revenues and taxes come from high value added production based on new ideas and technologies from professional services based on higher education.
Factor Driven Economy
a nation where the major forces for jobs, revenues, and taxes come from farming too extractive industries like forestry, mining, or oil production
Innovative strategy
an overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing
Imitative strategy
an overall strategic approach in which the entrepreneur does more or less of what others are already doing
Influencer
colon a customer role describing a person or group who can make credible or recognized suggestions or recommendations to others regarding purchase choices.
Intention (I)
desire to start a business
Competences
forms of business related expertise
Boundaries (B)
help set the company up as a firm. It sets it apart from the buying selling or bartering we occasionally do
. What are the differences between small businesses and high-growth ventures? (p. 8-9)
owned by an individual or small group; A high-growth venture starts small but quickly grows requiring it to get a team of partners or managers to handle the growth.
Determination competences
skills identified with the energy and focus needed to bring a business into existence
Opportunity competencies
skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business
Resource competences
the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise
1. (5 P's of entrepreneurial behavior)? (p.3-32) Perseverance
the ability to stick with some activity even when it takes a long time and it and its outcome is not immediately known
1. (5 P's of entrepreneurial behavior)? (p.3-32) Professionalization
the extent to which a firm meets or exceeds the standard business practices for It's industry.
Resources (R)
the product or service but also informational resources on markets and running a business financial resources and human resources.
1. (5 P's of entrepreneurial behavior)? (p.3-32) Playing style
there are five different planning styles. Comprehensive planners are entrepreneurs who develop long range plans for all aspects of the business. Critical point planners are entrepreneurs who develop plans focus on the most important aspects of the business first period opportunistic planners are entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it. Reactive planners are entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take. Habit based planners are entrepreneurs who do not plan, preferred to a all actions be dictated by their routines.