MGMT 310 MID-TERM EXAM

Era 1: Emergence of the Self-Made Man

Colonists started new ventures, created new markets, and exploited opportunities in exploration, agriculture, trade, and other mercantile activities. Benjamin Franklin created the lightning rod

Corporate Entrepreneurship

a process of creating new products, ventures, processes, or renewal within large organization. Tend to explore new possibilities and seek ways in which the organization's current structure and process can enable innovation. Some companies far that if they encourage their employees to be more entrepreneurial that they will leave the company and start their own.

7 Strategies for Idea Generation

1. Analytical strategies 2. Search strategies 3. Imagination-based strategies 4. Habit-breaking strategies 5. Relationship-seeking strategies 6. Development strategies 7. Interpersonal strategies

steps in experimentation

1. Asking a lot of questions 2. Carrying out background research 3. Developing hypothesis 4. Testing the hypothesis by running experiments 5. Analyzing the data 6. Assessing results

3 main strategies of self-leadership

1. Behavior-focused strategies 2. Natural reward strategies 3. Constructive thought pattern strategies

3 parts of the business plan

1. Business concept: discuss industry, business structure, products are services, and how you plan to make your business a success. 2. Market section: describe potential customers and the competitors. How you intend to design, develop, and implement the plan: and provides some detail on operations and management. 3. Financial section: details of income and cash flow, balance sheets, financial projections, and the like.

types of entrepreneurship

1. Corporate Entrepreneurship 2. Entrepreneurs inside 3. Buying a franchise 4. Buying a small business 5. Social entrepreneurship 6. Family enterprise 7. Serial Entrepreneurs

3 central characteristics of opportunity

1. Economic value: the capacity to generate value • Social value: if it helps to address a social need • Environmental value: exists if the opportunity protects the environment 2. Novelty or newness 3. Perceived desirability

7 truths about entrepreneurship

1. Entrepreneurship is not reserved for startups 2. Entrepreneurs do not have a special set of personality traits. 3. Entrepreneurship can be taught (it's a method that requires practice). 4. Entrepreneurs are not extreme risk-takers. 5. Entrepreneurs collaborate more than they compete. 6. Entrepreneurs act more than they plan 7. Entrepreneurship is a life skill.

6 emotional blocks from preventing us from practicing creativity

1. Fear (the most determinantal one) 2. No appetite for chaos 3. Preference for judging over generating ideas 4. Dislike for incubating ideas 5. Perceived lack of challenge 6. Inability to distinguish reality from fantasy

3 types of experiments

1. Trying out new experiences: useful for generating new business ideas 2. Taking apart Products, Processes, and ideas: useful for generating new business ideas -Leads to different and better ways of doing things. Generates questions and triggers new ideas about how we can make our products/services work better 3. Testing ideas through pilots and prototypes: useful for generating and testing new business ideas to see what works

3 main questions to keep in mind while creating storyboard:

1. What is the problem your customer is experiencing? 2. What are you offering as a solution to the problem? 3. How will your customer benefit from your product/service offering?

BMC 9 Components

1. customer value proposition 2. Customer Segments 3. Channels 4. Customer Relationships 5. Key activities 6. Key Resources 7. Key Partners 8. . Revenue Stream 9. Cost Structure

6 types of customers

1. end users 2. influencers 3. recommenders 4. economic buyers 5. decision makers 6. saboteurs

The role of mindset in opportunity recognition:

As our mindset grows and expands through practicing self-leadership, creating, and improvising, we are more inclined to recognize and create opportunities. In order to develop an optimal mindset for entrepreneurship we need to recognize its importance, and consciously take the steps to nurture it though the practice of self-leadership, creativity, and improvisation, which builds our levels of self-efficacy

The value proposition is delivered through communication, distribution, and sales channels. The core question: What are all the way in which you can reach your customer?

Channels information

represents all expenses required to execute and run the business model. Ask: What are the most important costs inherent in business model? Which resources are the most expensive to get? Which activities are the most expensive?

Cost Structure information

Relationships can be developed on a 1-to-1 basis in a brick-and-mortar T-shirt store and/or through a purely automated process of selling T-shirts online. They depend on engendering positive feelings about your business, building a sense of costumer identity, and motivating costumer to want to bring their friends into the relationship. Key question: How do you establish and maintain relationships with your customers?

Customer Relationships information

Who are your most important customers? What segment of the market would be most likely buying your T-shirts?

Customer Segments information

ask yourself: What value do we deliver? What bundle of products and services are we offering? What are we helping customers achieve by providing a new range of T-shirts?

Customer Value Proposition information

entrepreneurial mindset

Entrepreneurial mindset: is the ability to quickly sense, take action, and get organized under uncertain conditions. Employs numerous cognitive stratifies to identify opportunities, consider alternative options, and take action.

The belief entrepreneurs have in their ability to begin new ventures. Is an essential part of the entrepreneurial mindset, and is thought to be a good indicator of entrepreneurial intentions as well as a strong precursor to action.

Entrepreneurial self-efficacy (ESE)

truth #6: Entrepreneurs act more than they plan information

Entrepreneurs act- they go out and talked to other people, connected with their customers, generated buzz about their product or service, and built a strong network. They collected real data that informed the next step. Investors want to know if the entrepreneurs have the capability to roll with the punches, take action, and accept the constructive feedback they receive from coaching.

truth #5: Entrepreneurs collaborate more than they compete. information

Entrepreneurs draw on shared experience and desire to learn from others facing similar challenges. It is important to have a support group of like-minded entrepreneurs willing to help one another out with a "pay it forward" attitude- collaborating for the greater good. Not only do successful entrepreneurs collaborate with other entrepreneurs, but they also collaborate with their target customers to test new ideas, potential investors to build trust, and family and friends for support.

improvisation information

Entrepreneurs starting new ventures who displayed more signs of improvisational behavior tended to outperform those who did not have the same tendencies. "Yes, and" theory

5 eras of entrepreneurship

Era 1: Emergence of the Self-Made Man Era 2: An Entrepreneurial Nation Era 3:The Pinnacle of Entrepreneurship Era 4: Rise of Institutional America Era 5: Confined Re-Emergence

What makes a country entrepreneurial?

Financial resources: entrepreneurs need access to appropriate financing such as loans, private equity, angel investors. Support from government: entrepreneurs need support from government policies that incentivize entrepreneurship. Entrepreneurship education: provide entrepreneurship courses and training at primary and secondary levels. Physical infrastructure: entrepreneurs should be able to easily access or purchase at a reasonable price vital resources in the areas of communication, land, office space, and transportation. Cultural and social norms: entrepreneurs tend to thrive more in an environment where they feel encouraged enough to start a business or have the confidence to choose entrepreneurship as a career path.

idea classification matrix

Innovation: if the product or service is novel, useful, and valuable. Inventions: score highly for novelty; but if an invention does not reach the market or appeal to consumers then it will be rendered useless. Improvement: enhancing existing products Irrelevant: scoring low on both novelty and usefulness Opportunities spring from ideas, but not all ideas are opportunities

Entrepreneurs are not able to do everything by themselves, so partnering with suppliers, associates, and distributors is a logical option, not only for strategic purposes but also for efficiency needs. Ask yourself questions around outsourcing: Could some activities be outsourced? Do you have a network of suppliers/buyers you could tap into or negotiate with?

Key Partners information

Resources are what you need to develop the business, create products and services, and deliver on your CVP. Resources take many forms and include people, technology, information, and physical and financial resources. How much and which resources will you need to accommodate your customer numbers? What resources do you need to accomplish they key activities? You will also need to calculate how much money you will need to set up, as well as accumulate the skills, knowledge, and info you need to start your own business.

Key Resources Information

What are the most important activities that the company participates in to get the job done?

Key activities information

2 hemispheres of a creative mind

Left brain: detail oriented, logical, rational, reasoning Right hemisphere: big-picture orientation, intuition, emotional, dreaming Today society is moving from left-brain thinking to right brain thinking. Entrepreneurs envision success while also preparing for failure. They tend to be both optimistic and pragmatic, just like the creative people over 60 in the study.

truth #7: Entrepreneurship is a life skill. information

Life skill that helps people to deal with an uncertain future by providing them with the methods to act, identify opportunities, approach problems in a specific way, adapt to new conditions, and take control of personal goals and ambitions.

Working through all 9 components of your business model helps you understand how the various parts work together: the value you'll create for customers, the processes you must have to deliver value, the resources you need, and the way you'll make money. One of the biggest considerations in building your own business model is money - it matters. The right side of the BMC is about creating value and the left side is about delivering that value as efficiently as possible.

MBC Information

truth #3: Entrepreneurship can be taught (it's a method that requires practice). information

Method of practice approach represents a body of skills that when developed through practice over time constitute a toolkit for entrepreneurial action. Requires consistent practice so that knowledge and expertise can be continuously developed and applies to future endeavors.

truth #4: Entrepreneurs are not extreme risk-takers. information

Most entrepreneurs are very calculated risk takers and gauge what they are willing to lose with every step taken. They practice the cycle of act - learn - build, that encourages taking small actions in order to learn and build that learning into the next action. Entrepreneurship should never be a zero-sum game; never an all-or-nothing decision.

brief presentation highlighting many of the essential elements found in a feasibility study and business plan. Has replaced the formal business plan in most venues. The purpose of the pitch is to describe and get interest.

Pitch Deck/Launch Plan

revenue is generated if a successful value proposition is delivers. Ask: how much are my customers willing to pay? How many customers do I need? How much cash can be generated through T-shirt sales in the store to T-shirt sales online? How much does each stream contribute to the total?

Revenue Stream

When we believe in our ability to succeed something, we are more likely to actively take the steps to make it happen. People with high levels of self-efficacy tend to put in higher levels of effort, persist with an idea, preserve with a task more than those people who possess low levels of self-efficacy

Self-Efficacy and Entrepreneurial Intentions Information

truth #2: Entrepreneurs do not have a special set of personality traits. information

Serial entrepreneurs: people who start several business, sometimes at the same time, or sometimes one after the other. People who are serial entrepreneurs all have the same thinking patter - Effectuation: the idea that the future is unpredictable, but yet controllable. We are not born with an entrepreneurial mindset, we work to develop it.

truth #1: Entrepreneurship is not reserved for startups information

Startup: a temporary organization in search of a scalable business model Traditional view of the startup is not the only path for entrepreneurs. They are everywhere, from. Corporations to franchises, to for profit and nonprofit organizations, to family enterprises.

passion

The entrepreneurial mindset is about understanding yourself, who you are, and how you view the world. It connects to your desired impact, meaning your passion. Passion: intense positive emotion, which is usually related to entrepreneurs who are engaged in meaningful ventures, or tasks and activities, and which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and remain focused on their goals. Positives: strength, courage, motivation, energy, drive, resilience, enthusiasm Negatives: can become blinded by passion and so obsessed by an idea or new venture that we fail to heed the warning signs or refuse to listen to negative info. or feedback.

Era 5: Confined Re-Emergence

The rise of information technology, advanced software development, and biotech and medical research created new markets and new businesses. The rise in venture capital funds gave them the financial capital to bring them to the market. "tech entrepreneur" was born.

Era 2: An Entrepreneurial Nation

US Constitution created a launching pad for creativity and innovation. people had right to own private property, access to banking system, and protection for enterprises through patents. Industrial Revolution gave inventors more common place alongside the merchants and industrialists.

four-quadrant frame

Upper left: shows the problem Upper Right: suggest a solution Lower Left: organizes their businesses into different function units Lower right: shows the outcome/benefits

bootstrapping startup

You are better off starting off at a stead pace and achieving desired milestones than trying to launch your dream business as quickly as possible. Can use cash from your savings, carefully use certain credit cards, fund your startup out of your salary from your existing job, or take equity out of your home if you are a homeowner. Sweat equity

Family enterprise information

a business that is owned and managed by multiple family members typically for more than one generation. What makes family enterprising part of the portfolio of entrepreneurship types is that each generation has an opportunity to bring the organization forward in new innovative ways. Family enterprises are the dominant form of business organization worldwide.

Buying a franchise

a type of license purchased by an entrepreneur (franchisee) from an existing business (franchisor) that allows the entrepreneur to trade under the name of that business. Allows entrepreneurs to get a head start launching their own business A franchisee not only pays the franchisor a lump sum to buy the franchise but also has to pay royalties, which are a share of the proceeds based on sales revenue.

in accord with the finding approach- that the opportunity already present in the environment and can be discovered through a systematic search. In accord with the building approach - they use whom they know and what they know to find the answers to their questions. Active search can be very helpful in the recognition of opportunities, but we also need to be already to nonobvious opportunities when

active search information

the ability to identify opportunities in their environment - entrepreneurs become alert to opportunities that already exist through their daily activities - in some instances, even being taken by surprise by what they observe. Entrepreneurs are more adept at spotting opportunities because: -They have access to more information -They may be more prone to pursing risks rather than avoiding them -They may possess different cognitive styles from those of nonentrepreneurs

alertness information

Serial Entrepreneurs

are people who start several businesses, whether simultaneously or one after another. Not satisfied with just focusing on one business, always looking for the next big thing or exploring ways to implement their diverse range of ideas.

leads a person to believe that he/she achieved success without help from others, may feel entitled to success and entitled to "bend the rules" to get ahead.

arrogance

the process of building or starting a business with very little funding or capital or virtually nothing at all. All about finding creative ways to access every resource you have available to launch your venture while minimizing the amount of cash you can spend. It is more likely for entrepreneurs to turn to friends, family and food for financial assistance. Important to keep these as forma loan agreements, or else could cause family drama

bootstrapping information

a concept that assumes that opportunities do not exist independent of entrepreneurs, but instead are a product of the mind. Opportunities are created, not found- originate from entrepreneur's prior knowledge and experience. Entrepreneurs either finds ways to source the information and resources in order to create an opportunity or to decide against the opportunity altogether.

building approach

a conceptual framework that describes how a company creates, delivers, and extracts value.

business model

divides the business model's four parts into nine components in order to provide a moral thorough overview of the logic behind the business model. When the 4 parts are divided into 9 components, it looks like:

business model canvas (BMC)

Helps entrepreneurs generate value and scale through fulfilling unmet needs in existing market, by delivering existing products and services to existing customers with unique differentiation, and by serving customers in new markets. Easier to make quick efficient changes to business model during startup Business models in any company must always be positioned for adjustment and changes as new information is received and markets change. Key to a successful business model: focus on what customers want and there they are going.

business model information

a formal document that provides background and financial information about the company, outlines your goals for the business, and describes how you intend to reach them

business plan

supports the business model and explains the necessary steps to attain the business model's goals. Business Plan: needs to show that you are serious and that you've done your homework, given the level of detail that is necessary to compete a strong business plan. It must be thought of as a work in progress because nothing goes according to plan. 20-30 pages. Includes organization's mission, strategy, tactics, goals, financials, and objectives, together with a 5-year forecast for income, profits, and cash flow

business plan information

Entrepreneurs inside Information

consists of employees who think and act entrepreneurially within organization. Entrepreneurs inside can exist and function in any type of organization. Building a tribe of willing supporters is essential for getting buying in to their ideas, and proving there is a market for them. Ex: damaged vegetables

the capacity to produce new ideas, insights, inventions, products, or artistic objects that are considered to be unique, useful, and of value to others

creativity

the process of raising capital for a new venture from a large audience, typically through the internet - has been a new pathway for many entrepreneurs. People who use crowdfunding to raise money are known as "crowdfunders" and people who contribute financial support to crowdfunding ventures are known as "backers."

crowdfunding -resource for money

involves using the Internet to attract, aggregate, and manage ostensibly inexpensive or even free labor from enthusiastic customer and like-minded people.

crowdsourcing -a resource for talent and labor

similar to economic buyers, but they might have even authority to make purchasing decisions as they are positioned higher in the hierarchy. CEO'S or mom and dad

decision makers

employed to enhance and modify existing ideas in order to create better alternatives and new possibilities.

development strategies information

customers who have the ability to approve large-scale purchases, such as buyers for retail chains, corporate office managers, and corporate VPs. Connecting with these customers brings you one step closer to the type of end-user costumers you want

economic buyers

customers who will actually use your product Getting a deeper insight into the needs and motivations of end users is essential in the experimentation period, as their feedback will help you refine and tweak the product.

end users information

natural reward strategies information: help us to form positive and productive ways of thinking that can benefit our performance.

endeavor to make aspects of a task or activity more enjoyable by building in certain features, or by reshaping perceptions to focus on the most positive aspects of the task and the value it holds. Take a break to listen to music or take a short walk

Era 3:The Pinnacle of Entrepreneurship

entrepreneurship was at its height. New businesses/inventions were created to satisfy the growing consumer market and its demand for technical innovation. They satisfied consumers want to live in comfort and be more efficient. Telephone and Lightbulb

a method used to prove or disprove the validity of an idea or hypothesis. Need to have a clear purpose, be achievable, and generate reliable results Essential when it comes to trying out new ideas, finding solutions, and providing answers to those "What if" questions. Entrepreneurial experimentation is about acting to learn. By taking action and experimenting quickly and cheaply, you will have a better chance of refining your ideas into feasible and viable opportunities

experimentation

an essential planning tool that allows entrepreneurs to test the possibilities of an initial idea to see if it even worth pursuing. Focuses on the size of the market, the suppliers, distributors, and the skills of entrepreneur. Every entrepreneur should conduct this. Because it determines whether your idea is workable and profitable. Created to assess the viability of a business concept

feasibility study

a concept that assumes that opportunities exist independent of entrepreneurs and are waiting to be found. Entrepreneurial opportunities exist as a result of changing landscape in technology, consumer preferences, demographics, gov. regulations Views decisions as risky, because opportunities already exist, it stands to reason that the information is available and the data there to be collected.

finding approach opportunities

Benefits and negatives to formal route of bootstrapping, such as venture capital firms or angel investors:

get money you need, and gain advice and guidance from people more experienced than you, as well as their contacts and connections that will help your business become more profitable. Negatives: entrepreneurs enjoy the independence and control they acquire by funding the business themselves. Keeps them focused and determined and allows them to grow the business the way they want to. Have freedom to test their products/services and make decisions without having to explain themselves.

techniques that help to break our minds out of mental fixedness in order to bring about creative insights. Think about opposite of something you believe to explore a new perspective, take the viewpoint of someone who may/may not be involved in the situation, take role of famous person, what would they do?

habit-breaking strategies

constructive thought pattern strategies information

help us to form positive and productive ways of thinking that can benefit our performance. Identifying destructive beliefs and assumptions and reframing those thoughts through practicing self-talk and mental imagery

Behavior-focused strategies information:

helps increase self-awareness to manage behaviors particularly when dealing with necessary but unpleasant tasks. 5 types: 1. self-observation 2. self-goal setting 3. self-reward 4. self-punishment/self-correcting feedback 5. self-cuing

an assumption that is test through research and experimentation.

hypothesis

involve suspending disbelief and dropping constraints in order to create unrealistic states, or fantasies.

imagination-based strategies

the art of spontaneously creating something without preparation. It is connected to the mindset because it helps us develop the cognitive ability to rapidly sense and act as well as change direction quickly.

improvisation

Celebrities, journalists, industry analysts, and bloggers with a large following have the power to influence our purchase decisions. Customers who have no involvement in product at all

influencers information

group members collaborate to come up with new or improved ideas. Group brainstorming is an example.

interpersonal strategies

as an apparent way of generating value through unique, novel, or desirable products, services, and even processes that have not been previously

opportunity

A small scale study conducted to assess the feasibility of a product or service.

pilot experiment

come in form of basic models, or sketches that inform others and communicate what our ideas look like, behave like, and work like before the real product or service is launched.

prototype -Often created before pilot experiment

popular bloggers, experts in an industry, or CEOs of major corporations carry a lot of weight when they evaluate your product and tell the public about it - make or break your reputation

recommenders information

involve consciously making links between concepts or ideas that are not normally associated with each other.

relationship-seeking strategies information

customer can be anyone who can veto or slow down a purchasing decision- top managers, friends, spouses, children Identify your saboteur customers and find out what's putting them off Test and learn approach is quick, cheap to generate knowledge about what works and what doesn't

saboteurs information

uses memory to retrieve information to make links or connections based on past experience that are relevant to the current problem using stimuli. This strategy illustrates our ability to be resourceful in generating associations between objects that at first appear have no apparent relationship with each other.

search strategies information

using certain environmental cues as a way to lists or notes or constructive behaviors and reduce or eliminate destructive ones.

self-cueing

process of setting individual goals for ourselves.

self-goal setting:

a process whereby people can influence and control their own behavior, actions, and thinking to achieve the self-direction and self-motivation necessary to build their entrepreneurial business ventures

self-leadership

raises our awareness of how, when, and why we behave the way we do in certain circumstances.

self-observation

process that allows us to examine our behaviors in a constructive way in order to reshape these behaviors.

self-punishment/Self-correcting feedback

ways in which we compensate ourselves when we achieve our goals, tangible or intangible.

self-reward:

Provides entrepreneur with a better understanding of your own idea and how it interacts with customers Helpful to draw before interacting with customers or other stakeholders because it can bring clarity to the idea, better tell the story of the idea, and highlight the potential value it brings to the customers. As the venture grows (entrepreneurship), so do the individual and team (organizational behavior). Storyboards will evolve and grow over the years to become even more innovative and inclusive

storyboard information

an easy form of prototyping that provides a high-level view of thoughts and ideas arranged in sequence in the form of drawings, sketches, or illustrations

storyboarding

the increase in value or ownership interest created by someone as a result of hard work

sweat equity

Buying a small business information

the entrepreneur is buying out the existing owner and taking over the operations. This is a less risky approach than starting from scratch.

Social entrepreneurship information

the process of sourcing innovative solutions to social and economic problems. Subcategory B-Corp: organization certified by the nonprofit B Lap that ensures that strict standards of social and environmental performance, accountability, and transparency are met.

Era 4: Rise of Institutional America

this era signaled a shift from the traditional entrepreneurship to big corporations. Small firms either merged with other companies or were swallowed by big organizations. America was enjoying economic prosperity due to new innovations in technology, transportation, entertainment, and consumer electronics.