MGMT 160 MIDDY

When discussing markets, what do we mean by TAM, TSM, and target (also known as beachhead) market? Define each term and explain its relationship to others.

- Total Addressable Market (TAM): 100% of the market for type of product you sell Total Serviceable (or Served Available) Market): 100% of the market you could actually sell to Target (Beachhead) Market: your initial most likely buyers TAM ≥ TSM ≥ Target

In the "Experimenting in the Entrepreneurial Venture" case, what do the authors mean by "Falsifiability" and why is it relevant?

-A falsifiable hypothesis is one that can be rejected through a decisive experiment - If you cannot fail, you cannot learn

In class, we watched a Kaufmann Foundation video on the "Three Things" entrepreneurs do. What are the three things?

1. Birth the New Idea 2. Create Jobs 3. Create New Net Wealth

Criticisms and Limitations of the Five Forces Framework?

1. Omits key players (government, non market actors) 2. Is "static", doesn't account for evolution in industry structure 3. Doesn't model strategic interaction between market participants

Experiment

A procedure to validate or invalidate a value proposition or business model hypothesis that produces evidence --> Rule of Thumb: Start cheap when uncertainty is high and increase your spending on experiments with increasing certainty --> Use Experiments to test: interest and relevance, priorities and preferences, and willingness to pay

What is the "Progress Board" described in the VPC text?

A visual tool that allows you to manage and track your lean startup experiments, measure progress, and avoid failure; used to test/validate your business ideas

In a sentence, what is the definition of a "pivot"?

If the MVP test invalidates an aspect of the business model hypothesis, you need to PIVOT by changing some business model elements while retaining others.

What does the "environment map" or "business model environment represent (i.e. why do we care about it?)

It is a strategic foresight tool that helps you understand the context in which you create.

Does Industry Analysis explain "competitive advantage"?

No, industry analysis focuses on the economic characteristics of the industry and its environment but does not explain why some firms perform better than others in the same environment.

Test the Circle

Prove which jobs, pains, and gains matter to customers most by conducting experiments that produce evidence beyond your initial customer research

6 Dimensions of Entrepreneurship as a Behavioral Phenomenon and the Promoter/ Trustee Perspectives

Strategic Orientation --> Promoter: driven by perception of opportunity --> Trustee: driven by resources currently controlled Commitment to Opportunity --> Promoter: revolutionary with short duration --> Trustee: evolutionary of long duration Commitment of Resources --> Promoter: multi-staged with minimal exposure at each stage --> Trustee: single-staged with complete commitment upon decision Control of Resources --> Promoter: episodic use or rent of required resources --> Trustee: ownership or employment of required resources Management Structure --> Promoter: flat with multiple informal networks --> Trustee: formalized hierarchy Reward/ Compensation Philosophy --> Promoter: value-driven, performance-based, team-oriented --> Trustee: security-driven, resource-based, promotion-oriented

Testing the Square

Test if and how much your customers care about how you intend to help them. Design experiments that produce evidence showing that your products and services kill pains and create gains that matter to customers

Testing the Rectangle

Test the most critical assumptions underlying the business model your value proposition is embedded in. Provide evidence showing that your business model is likely to work, will generate you more revenue than costs, and will create value not only for your customers but for your business

Lean Start-Up Principles

The idea is to eliminate slack and uncertainty from product development by continuously building, testing, and learning in an iterative process. 0. Generate a Hypothesis: Start with value proposition and business model canvases to define the critical hypotheses underlying your ideas 1. Design/ Build: Design or build an artifact specifically conceived to test you hypotheses, gain insights, and learn 2. Measure: Measure the performance of the artifact you designed or built 3. Learn: Analyze the performance of the artifact, compare to your initial hypotheses, and derive insights. Outline what you will change and how.

In class, we discussed an "integrated suite of tools." What 3 tools are included? Why does an entrepreneur need to know about all 3? Why would an entrepreneur be more likely to succeed if they consider all 3 things when launching a business?

The integrated suite of tools consists of: - Environment Map, which helps you understand the context in which you create - Business Model Canvas, which helps you create value for your business - Value Proposition Canvas which helps you create value for your customer

"Industry Analysis" discusses 2 factors to consider when assessing the threat of substitutes. List the 2 factors and describe each in a sentence or two.

- "Closeness" of substitute: the closer the substitute, the easier it is to switch to it - Performance/ Price ratio of substitute: a substitute that offers slightly lower performance at a much lower price is more of a threat than one that offers slightly lower performance with only a small reduction in price

Three Kinds of Fit

1. Problem-Solution Fit (On Paper): have evidence that customers care about certain jobs, pains, and gains and designed a value proposition that addresses these 2. Product-Market Fit (In the Market): have evidence that your products and services, pain relievers, and gain creators are actually creating customer value and getting traction in the market 3. Business Model Fit (In the Bank): have evidence that your value proposition can be embedded in a profitable and scalable business model

What do we mean by "barriers to entry"?

Characteristics of an industry or market that make it more difficult for new entrants to compete

Business Model

Describes the rationale of how an organization creates, delivers, and captures value

Split Testing (A/B Testing)

To test two or more variations of a webpage or a purpose-built landing page and compare if conversion rates regarding a specific call to action differ between competing alternatives

What is the goal of an industry analysis?

To understand how profits are distributed among market participants (Industry: a group of firms producing products or services that are perceived by customers as meeting the same needs) --> based on the fundamental principle that people respond to incentives

Snapchat is a mobile app for sharing temporary images and chats which started as a class project in 2011. In 2011, Facebook was the largest social network and had about 800 million users. Create a Strategy Canvas for "Social Networking Apps" in 2011 where you consider only Facebook and Snapchat. You should consider 4 out of 5 factors on the strategy canvas. Is Snapchat targeting a red or blue ocean? Why or why not?

- Blue Ocean because they are entering with a new idea that has never been done before --> disappearing photos - Factors on Strategy Canvas: --> Digital Effects --> News/ Articles --> Past Content Availability --> Ease of User Interface --> Younger Generation

What is a "strategy canvas"? How is a "strategy canvas" to be used? What does the horizontal (or x-axis) represent on the strategy canvas? What does the vertical (or y-axis) represent on the strategy canvas? What is the "line connecting the dots on the strategy canvas called and what does it stand for?

- Both a diagnostic and an action framework for building compelling blue ocean strategy (DIFFERENTIATION) - It captures the current state of play in the known market - The horizontal axis captures the range of facts the industry competes on and invests in - The vertical axis captures the offering level that buyers receive across all of the key factors - The Value Curve is a graphical depiction of a company's relative performance across its industry's factors of competition

Define the terms "red oceans" and "blue oceans" according to Kim & Mauborgne.

- Red Ocean: represent all the industries in existence today (market space). "Bloody" with competition (profits and growth are reduced) - Blue Ocean: all the industries not in existence today (unknown market space). Potential of market space that is vast, deep, and not yet explored. Market boundaries are not given and can be reconstructed by the actions and beliefs of industry players

7 Faces of Business Model Innovation

- The Senior Executive: focus to establish a new business model in an old industry - The Intrapreneur: Focus to help exploit the latest technological developments with the right business models - The Entrepreneur: Focus to address unsatisfied customer needs and build new business models around them - The Investor: Focus to invest in companies with the most competitive business models - The Consultant: Focus to help clients question their business models, and envision and build new ones - The Designer: Focus to find the right business model to launch an innovative product - The Conscientious Entrepreneur: Focus to bring about positive social and economic change through innovative business models

Searching for Fit

The process of designing value propositions around products and services that meet jobs, pains, and gains that customers really care about.

According to Osterwalder and Pigneur, what is the definition of a business model?

The rationale of how an organization creates, delivers, and captures value

What do business-to-business (B2B) transactions involve?

They involve several stakeholders in the search, evaluation, purchase, and use of a product or service.

The "Experimenting in the Entrepreneurial Venture" case discusses what MVPs may be "minimal" in one or both of 2 ways, compared with the product an entrepreneur might expect to offer after aggressively scaling the business. In a sentence define and describe each of the 2 ways.

- Constrained Product Functionality: customers experience only a subset of the features envisioned for subsequent versions of the product - Constrained Operational Capability: the technology used to deliver the MVP's functionality is often temporary and makeshift relative to the operational capabilities required for scaling

There is a relationship between Steve Blank's "Customer Development Process" and three-types of "fit" discussed in class. Sketch and label the "Customer Development" process given by Steve Blank, and label (using arrows and circles) the corresponding types of fit.

- Customer Discovery corresponds with Problem-Solution Fit (On Paper) - Customer Validation corresponds with Product-Market Fit (In the Market) - Customer Creation and Company Building corresponds with Business Model Fit (In the Bank)

Customer Development Process

- Customer Discovery: Get out of the building to learn about your customer's jobs, pains, and gains and how to address them - Customer Validation: Run experiments to test if customers value how your products and services intend to address pains and gains - Customer Creation: Start building end user demand. Drive customers to your sales channels and begin scaling the business - Company Building: Transition from a temporary organization designed to search and experiment to a structure focused on executing a validated model

The "Business Model Canvas" consists of nine basic building blocks. Sketch the canvas and label each of the nine blocks. For each labeled block, describe it in a sentence or two.

- Customer Segments: different groups of people or organizations an enterprise aims to reach and serve (Ex: Mass Market, Niche Market, Segmented Market, Diversified Market, and Multi-Sided Markets) - Value Propositions: the bundle of products and services that create value for a specific customer segment (Ex: Newness, Performance, Customization, 'Getting the job done', Design, Brand/Status, Price, Cost reduction, Risk reduction, Accessibility, Convenience/ Usability) - Channels: how a company communicates with and reaches its customer segments to deliver a value proposition (Phases: Awareness, Evaluation, Purchase, Delivery, and After Sales) - Customer Relationships: the types of relationships a company established with specific customer segments (Ex: Personal Assistance, Dedicated personal Assistance, Self-Services, Automated Services, Communities, Co-creation) - Revenue Streams: the cash a company generates from each customer segment (Ex: Asset sale, Usage Fee, Subscription Fee, Lending/Renting/Leasing, Licensing, Brokerage Fee, Advertising) --> Fixed 'Menu' Pricing v. Dynamic Pricing - Key Resources: the most important assets required to make a business model work (Ex: Physical, Intellectual, Human, Financial) - Key Activities: the most important things a company must do to make its business model work (Ex: Production, Problem Solving, Platform/ Network) - Key Partnerships: the network of suppliers and partners that make the business model work (Motivations: Optimization and economy of scale, Reduction of risk and uncertainty, Acquisition of particular resources and activities) - Cost Structure: all the costs incurred to operate a business model (Ex: Cost-driven, Value-driven, Fixed costs, Variable costs, Economies of scale, Economies of Scope)

The "Talking to Humans" book contains a chapter containing 13 recommendations on conducting an effective interview. Please list 5 of the suggestions given in the chapter and briefly describe each in a sentence. (You can alternatively list 5 of the "rules" from the VPC text)

- Do your interviews in person - Talk to one person at a time - Adding a note taker - Start with a warm up and keep it human - Disarm your own biases - Get them to tell a story - Look for solution hacks - Understanding priority - Listen, don't talk - Follow your nose and drill down - Parrot back or misrepresent to confirm - Do a dry run - Getting feedback on your product

Stevenson discusses two historical definitions of entrepreneurship which he argues are both flawed. What were the two "Schools of Thought" on the way to define entrepreneurship according to Stevenson? According to Stevenson, What is the major flaw to each of the two?

- Economic Function: entrepreneurship is defined as an economic function and entrepreneur is defined by the role in society. "Entrepreneurship entails bearing the risk of buying at certain prices and selling at uncertain prices" --> FLAW: Doesn't make sense to decide what economic functions are "entrepreneurial" - Entrepreneurs have a common set of individual trait, and thus entrepreneurship is defined as activities of entrepreneurs (risk-taking, need for achievement, etc.) --> FLAW: Single psychological profile of an entrepreneur doesn't exist

"Blue Ocean Strategy" discusses the "Four Actions Framework". Describe the four forces and discuss how you can use the framework to develop a business strategy.

- Eliminate: eliminate some factors that the industry takes for granted - Reduce: reduce some factors to well below the industry's standard - Raise: raise some factors above the industry's standard - Create: create new factors that the industry has never offered

The VPC describes the "Testing Process". Sketch the figures involved. Label each of the steps in the testing process.

- Extract Hypothesis: define the most important things that must be true for your idea to work (Business Hypothesis --> something that needs to be true for your idea to work partially or fully, but that hasn't been validated yet) - Prioritize Hypothesis: prioritize what is critical to survive and identity the business killers - Design test: Test Card that states hypothesis, test, metric, and criteria - Prioritize Test: rank test cards by importance, quickness, cheapness,etc. - Run Tests: start performing experiments at the top your you prioritized list - Capture Learnings: Learning card that states, hypothesis, observation, learnings and insights, and decisions and actions - Make Progress

5 Data Traps to Avoid

- False-Positive Trap: Seeing things that are not there (Ex: Mislead conclusion that customer has a pain that it does not actually) - False-Negative Trap: Not seeing things that are there (Ex: Experiment fails to detect a customer job that it was designed to unearth) - The Local Maximum Trap: Missing out on the real potential (Ex: Positive feedback might result in you sticking with a much less profitable model when a more profitable one exists) - The Exhausted Maximum Trap: Overlooking limitations --> when you think an opportunity is larger than it actually is (Ex: When you think you are testing with a sample of a large population but the sample is actually the entire population - The Wrong Data Trap: Searching in the wrong place (Ex: You might drop an idea because the customers you are testing are not interested and you don't realize that there are other people who are interested)

Wilson has a business idea of creating an adult line of pajamas named "Italian Stallions" with color schemes and patterns to match several popular breeds of horses. A unique feature of the pajamas is authentic-looking tails that will be made from real horse hair. 1st, Wilson selected his favorite style and then ordered custom-made versions in 4 patterns and 4 sizes (S,M,L,XL). Wilson then wanted to get Riccardo's opinion on the business idea so he asked him to stop by after class. He showed Riccardo the pajamas options and asked Riccardo to try on his favorite pair. After trying on Italian Stallions, Riccardo was enthusiastic about the idea so Wilson ordered 500 pairs and set up a website to sell his new line. Based on the principles and frameworks we've learned in class, what did Wilson do right and what did he do wrong? If he made any mistakes, what should he have done differently?

- HE DID NOTHING RIGHT - WHAT HE DID WRONG: --> He ordered is own favorite style without interviewing to see if it would be popular or if there was even a market for his product --> Not only did he fail to interview someone who was at least "one degree of separation from him," but he interviews his own worker who is definitely going to have a bias/ want to keep his boss happy --> He ordered a massive amount of quantity without properly following the value proposition campus to see if his product addressed consumer gains and pains, without considering the factors of the Business Canvas Model, and most shocking, he did not consider the Customer Development Process and simply failed on the very first step (Customer Discovery) but still continued on to Customer Validation

Many entrepreneurs express 2 concerns about "launching early and often" with MVPs. What are the 2 concerns and describe each in a sentence.

- Idea Theft: worry that if an early launch is conducted through an MVP, competitors will steal their business concept --> MVP negates this because ideas are worthless unless they're executed, and the value of early feedback greatly outweighs this risk - Reputational Risk: worry that reputation is at risk when launching an MVP that may have limited features and/ or problems --> MVP negates this because it limits the target customer base to minimal scale

The VPC text discusses that value propositions in business-to-business (B2B) transactions typically involve several stakeholders in the search, evaluation, purchase and use of a product of service. Each one has a different profile and a different VPC. Stakeholders can tilt the purchasing decision in one direction or another. List the 6 stakeholders given in the text. In a sentence, describe each?

- Influencers: individuals or groups whose opinions might count and whom the decision maker might listen to - Recommenders: the people carrying out the search and evaluation process and who make a formal recommendation for or against a purchase - Economic Buyers: individual or group who controls the budget and who makes the actual purchase. Their concerns are typically about financial performance and budgetary efficiency - Decision Makers: the person or group ultimately responsible for the choice of a product/ service and for ordering the purchase decision. They usually have ultimate authority over the budget. - End Users: The ultimate beneficiaries of a product or service. They can either be within their own organization or external customers - Saboteurs: the people and groups who can obstruct or derail the process of searching, evaluating, and purchasing a product or a service

What are the four key main areas of the environment map? Describe each of the areas in a sentence.

- Macroeconomic Forces - Market Forces: market issues, market segments, needs and demands, switch costs, and revenue attractiveness - Industry Forces: competitors (incumbents), new entrants (insurgents), substitute products and services, suppliers and other value chain actors, and stakeholders. - Key Trends: technology trends, regulatory trends, societal and cultural trends, and socioeconomic trends

The "Experimenting in the Entrepreneurial Venture" case discusses how the human brain is subject to many well-documented cognitives biases that impair our ability to make reasoned judgment about feedback we receive. This article discusses 4 cognitive biases that are relevant for early stage entrepreneurs. List and describe them in a sentence.

- Optimism Bias: systematic tendency to overestimate the likelihood of positive events and to underestimate that of negative ones - Planning Fallacy: a manifestation of the optimism bias --> it reflects our tendency to overestimate the benefits of a task and to underestimate its duration, costs, and risks even when we have past experience with similar tasks. - Confirmation Bias: reflects our tendency to disproportionately look for, interpret, and remember information in ways that validate rather than reject our beliefs. - Sunk- Cost Fallacy: when entrepreneurs consider sunk costs, expenses that have already been incurred and that can't be recovered, when making decisions

In addition to "Strategic Orientation", there were 5 additional critical dimensions. List the 5 additional dimensions.

- Strategic Orientation: promoter v. trustee - Commitment to Opportunity: entrepreneurs willing to act in short time frame and chase opportunity quickly - Resource Commitment process: Entrepreneur maximizes value creation by minimizing the resources set and accepting more risk in the process - Control of Resources: Entrepreneurs learnt o use other people's resources well - Management Structure: Need for coordination of key uncontrolled resources, flexibility is maximized with a flat structure, and employees desire for independence - Reward Philosophy: entrepreneurial firms are more focused on the creation and harvesting of value, and tend to base compensation on performance

The VPC text describes 6 techniques to gain customer insights. These techniques help you understand the customer's perspective when designing value proposition's. Name and describe the techniques.

- The Data Detective: build on existing work with desk research - The Journalist: talk to/ interview potential customers to gain customer insights/ learn more about their needs - The Anthropologists: observe potential customers in the real world to get good insights into how they really behave (their jobs, pains, and gains) - The Impersonator: "Be your customer" - spend a day in your customer's shoes - The Co-Creator: integrate customers in the process of value creation to learn with them - The Scientists: get customers to participate in an experiment and learns from the outcome

"Industry Analysis" discusses possible responses to threats to profitability for 5 of the 6 forces. For 2 of the forces, cite possible responses to the threats as discussed.

- The Threat of New Entrants: exploit network effects and economies of scale. Create customer switching costs. Invest to preempt entry. Lock in distribution channels. Develop a reputation for retaliation. Exploit patent protection. - Bargaining Power of Suppliers: use standard instead of proprietary products. Secure multiple sources. Encourage mutual dependence - Bargaining Power of Buyers: Build customer loyalty. Target small customers. "Lock in" customers to increase switching costs. Differentiate the product. Target customer segments that are less sensitive to price - Threat of Substitutes: Cannibalize the business before others do. target consumers of substitutes with new product offerings. Exploit complements - Rivalry Among Existing Competitors: Target less-competitive market segments. Differentiate the product. Create switching costs. Seek to dominate a market segment.

"Industry Analysis" discusses "Porter's Forces that Shape Industry Competition." As discussed in the article, what are the 6 forces? Sketch a diagram showing the 6 forces. In a few sentences, define and describe each force.

- The Threat of New Entrants: the effect of new entrants on profit depends on how easy it is to enter the industry, which in turn depends on barriers to entry - The Bargaining Power of Suppliers: a supplier's ability to increase costs, reduce quality, or restrict availability to a customer - The Bargaining Power of Buyers: the customer's ability to influence the price, availability, or quality of the products of a business - The Threat of Substitutes: substitutes are goods, for which when the price of one decreases, the demand for the other decreases. Substitutes compete for industry profits from outside the industry - Rivalry among existing competitors: Rivalry among competitors threatens the profits of all of them, although industries can differ in the intensity and focus of their rivalry - Availability of Complements: complements are goods for which the price of the second good decreases, the demand of the complementary good increases. Complements incentivize businesses to cooperate to grow a market

The Business Model Generation text describes 5 common business model patterns. List and describe them.

- Unbundling Business Models: T​here are three fundamentally different types of businesses: Customer Relationship businesses, product innovation businesses, and infrastructure businesses and each type has a different economic, competitive, and cultural imperatives. The three types may coexist within a single corporation, but ideally they are "unbundled' into separate entities in order to avoid conflicts or undesirable tradeoffs. - Open Business Models: ​can be used by companies to create and capture value by systematically collaborating with outside partners. - Long Tail Business Models: a​bout selling less of more, focus on offering a large number of niche products, each of which sells relatively infrequently - Free as a Business Model:​ at least one substantial Customer Segment is able to continuously benefit from a free‐of‐charge offer; different patterns make the free offer possible and non‐paying customers are financed by another part of the business model or by another Customer Segment - Multi‐Sided Platforms: ​bring together two or more distinct but interdependent groups of customers. Such platforms are of value to one group of customers only if the other group of customers are also present, the platform creates value by facilitating interactions between the different group

"Sketch" the industry life cycle (for "hot industries" like the automotive industry) and label the regions. Be sure to label the "x" and "y" axes of the graph as well.

- X-axis: Time - Y-axis :: number of firms - Introduction --> Growth (steep incline) --> Shake-Out (steep decline) --> Maturity (flat) --> Decline --> Death or Retrenchment (decline or restart)

The authors indicate that "Business people don't just need to understand designers better; they need to become designers". To this end, they argue that six techniques and tools from the world of design can help entrepreneurs design better and more innovation business models. Name and describe them.

1. Customer Insights: ​customer‐centric business model design in which customer perspectives should inform the business's choices 2. Ideation: ​A creative process for generating a large number of business model ideas and successfully isolating the best ones. 3. Visual Thinking:​using visual tools such as pictures, sketches, diagrams, and Post‐it notes to construct and discuss meaning; visually depicting a business model 4. Prototyping: ​a tool for developing new, innovative business models by making abstract concepts into tangible business models using the design and engineering disciplines 5. Storytelling: ​makes new business models more tangible through describing them in a way that overcomes resistance and effectively communicates what it is all about; takes advantage of the explanatory power of the Business Model Canvas by suspending disbelief in the unfamiliar 6. Scenarios: ​useful in guiding the design of new business models/ innovating around existing models; render the abstract tangible through informing the business model development process by making the design context specific and detail

6 Steps in Analyzing an Industry and Applying the Results of the Analysis

1. Define the Industry 2. Identify the Players (the market participants) 3. Analyze the players' influence on profitability 4. Test the Analysis 5. Develop a way to deal with the Industry environment 6. Analyze how the factors influencing profitability may change and the response required

The "Experimenting in the Entrepreneurial Venture" case outlines the hypothesis-driven entrepreneurship process describes seven steps. List them.

1. Develop a Vision 2. Translate Vision into a Falsifiable Hypothesis 3. Specify MVP Tests 4. Prioritize Tests 5. Run Tests and Learn from them 6. Persevere, Pivot, or Perish 7. Scaling and ongoing Optimization/ Scale the Business

The book contains a chapter with approximately ten tips on how to find interview subjects (i.e. the chapter titled "How do you find interview subjects?"). Please list ​four​of these tips and briefly describe each in a sentence of two

1. Get Creative: ​go out and look where you think customers of your product/service will be and observe 2. Find the Moment of Pain: ​connect with people at the moment of their theoretical pain 3. Make Referrals Happen: U​se referrals to your advantage and even use them to help find people who are "more than one degree of separation" 4. Conferences & Meetups: i​t is extremely effective to use conferences and meetups as a recruiting ground, ask people for their time after the conference or meetup.

10 Testing Principles

1. Realize that evidence trumps opinion 2. Learn faster and reduce risk by embracing failure 3. Test early; refine later 4. Experiments differ reality 5. Balance learnings and vision 6. Identify idea killers 7. Understand customers come first 8. Make it measurable 9. Accept that not all facts are equal (reliability of information) 10. Test irreversible decisions twice as much

As described in the VPC text, what does the term "Earlyvangelist" mean?

A customer who is willing and able to take a risk on a new product or service

Sketch and label the "Value Proposition Canvas." After labeling each, please provide a few sentences describing each of the sections.

SQUARE (design) - Products and Services: A list of goods/ services you offer. It includes Physical/tangible goods (such as manufactured products), Intangible products (such as copyrights), Digital products (such as music downloads), and financial products (such as investment funds and insurance). Help your customers perform the roles of buyers, co-creators, or transferrers - Pain Relievers: how exactly your products and services alleviate specific consumer pains before, during, or after they are trying to complete a job or that prevent them from doing so - Gain Creators: how your products and services create consumer gains including functional utility, social gains, positive emotions, and cost savings. CIRCLE (observe) - Customer Jobs: the things your customers are trying to get done in their work/life such as tasks they are trying to perform and complete, problems they are trying to solve, or needs they are trying to satisfy. (Functional, social, personal/emotional, and supporting) - Customer Pains: anything that annoys your customers before, during, and after trying to complete a job, or that prevents them from doing so. Pains also describe risks, that is, potential bad outcomes, related to getting a job done badly or not at all - Customer Gains: The outcomes and benefits your customers want, including functional utility, social gains, positive emotions, and cost savings.

Define "Entrepreneurship" according to Stevenson.

The pursuit of opportunity without regard to resources currently controlled

In a sentence, what are "minimum viable products (MVPs)?

The smallest set of features and/ or activities needed to complete a "Build-Measure-Lean" cycle and thereby test a business model hypothesis. They may constrain product functionality and/ or operational capability but they shorten product development cycle and accelerate customer feedback (Examples include: Landing Page, Product Box, Learning Prototype, Video, Wizard of Oz, Data Sheet, Brochure, Storyboard, etc.)

Kim and Mauborgne argue that "creators of blue oceans never use the competition as their benchmark", yet typically when a consumer purchases an item ( ex: cereal at a grocery store) they are comparing similar items. How, then, do they justify the statement "creators of blue oceans never use the competition as their benchmark?

They make it irrelevant by creating a leap in value for both buyers and the company itself. The blue ocean strategy is based on the view that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players (reconstructionist view). The strategic aim is to create new rules of the game by breaking the existing value/cost trade off

In the article, Stevenson discusses strategic orientation as a continuum from ____________________ (nickname) to ____________________ (nickname) as the level of controlled resources increased.

promoter (driven by perception of opportunity) --> trustee (driven by resources currently controlled)