MGMT 321 Study guide exam 1

family business

A firm in which one family owns a majority stake and is involved in the daily management of the business

high-growth venture

A firm started with the intent of eventually going public, following the pattern of growth and operations of a big business

efficiency-driven economy

A nation where industrialization is becoming the major force providing jobs, revenues, and taxes, where minimizing costs while maximizing productivity(efficiency) is a major goal(Russia, Brazil, China)

factor-driven economy

A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production(Pakistan, Jamaica, Venezuela)

innovation-driven economy

A nation where the major forces for jobs, revenues, and taxes come from high-value added production based on new ideas and technologies and from professional services based on higher education(Germany, Republic of Korea, United States)

general environment

A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector

task environment

A part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups, and the like

Cognition

A person's way of perceiving and thinking about his or her experience

main street business

A popular term for small business reflecting the idea that these are the kinds of firms you would expect to find on the main street of a typical American city, and are the opposite of big businesses or "wall street" business

virtual instant global entrepreneurship

A process that uses the internet to quickly create businesses with a worldwide reach

organizational culture

A set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrates how things get done

certification

An examination based acknowledgement that the firm is owned and operated as specified

BRIE self assessment

Boundary- Creating a place for your business(in location and in people's minds) Resources- The money, product, knowledge, that make up the business Intention- The desire to start a business Exchange- Moving resources/products/services in exchange for money

creative destruction

The way that newly created goods, services, or firms can hurt existing goods, services, or firms

bootstrapping

Using low-cost or free techniques to minimize your cost of doing business

overall growth strategy

one of four general ways to position a business based on the rate and level of growth entrepreneurs anticipate for their firm

serial entrpreneur

people who open multiple businesses throughout their career

perserverance

the ability to stick with some activity even when it takes a long time and its outcome is not immediately known

preserverance

the behavior of continued effort to achieve a goal

creation

the entrepreneurial focus which looks at the making of new entities

customer-focus

the entrepreneurial focus which refers to being in tune with one's market

role conflict

the kind of problem that arises when people have multiple responsibilities, such as parent and boss, and the different responsibilities make different demands on them

trade magazines

the magazines that target specific industries and professions

time management

the organizing process to help make the most efficient use of the day

action

the visible behavior a person takes

growth rewards

what people get from facing and beating challenges

Strategies for Entrepreneurship

-If you don't succeed the first time, try, try again -Scale back -Bird in the hand(use resources at hand) -Pivot(corridor principle, you never know whats going to happen until you try it) -Take it on the road(try another market) -Ask for help -Plan to earn

Potential Entrepreneurs Mention problems like:

-Not enough financing -You can't start businesses during a recession - To make profits, you need to make something -If you fail, you can never try again -Students don't have the skills to start a business

4 growth strategies

-lifestyle or part-time -Traditional small business -high-performing small business -high-growth venture

Techniques for time management

-list -123 prioritize -delegate -repeat -strategize

lifestyle or part-time firm

A small business primarily intended to provide partial or subsistence financial support for the existing lifestyle of the owner, most often through operations that fit the owner;s schedule and way of working

CSI entrepreneurship

Acronym for the three forms of entrepreneurship: -corporate (customer/innovations) -social (creation/customer/efficiency) --independent (creation/customer/efficiency/ innovation)

promotion focus

An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains

necessity-drive enrepreneurship

Creating a firm as an alternative to unemployment

opportunity-driven enrepreneurship

Creating a firm to improve one's income or a product or service

habit driven planners

Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines

reactive planners

Entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions take

social entrepreneurship

Form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations, or for profit organizations which invest significant profits in charitable activities

competencies

Forms of business-related expertise or skills

set-asides

Government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like

organizational identity

Part of the BRIE model; composed of the name, description, and distinctive element of a firm, such as trademarks, uniforms, logos, characters, and stories

5 P's of Entrepreneurial Behavior

Passion Perseverance Promotion/Prevention focus Planning Style Professionalization

late career entrepreneurs

People who begin their businesses after having retired or resigned from work in corporations at age 50 or later

crowdsourcing

Techniques often based on internet based services to get opinions or ideas throughout the collective involvement of others

mindshare

The degree of attention your target market pays to your idea or organization

innovation

The entrepreneurial focus which looks at a new thing or a new way of doing things

efficiency

The entrepreneurial focus which refers to doing the most work with the fewest resources

professionalization

The extent to which a firm meets or exceeds the standard business practices for its industry

external environment

The forces, institutions and people(rest of the world) outside the firm

independent enrepreneurship

The form of entrepreneurship in which a person or group own their own for-profit business

external relations

The general description for the processes and skills used in the management of a firm's interactions with people, organizations, and institutions outside of its boundary

ecommerce

The general term for conducting business on the internet

focuses of entrepreneurship

The key directions the organization intends to pursue

internal environment

The people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm

succession

The process of intergenerational transfer of a business

Forms of entrepreneurship

The settings in which the entrepreneurial effort takes place

environment

The sum total of forces outside of the entrepreneur and the firm

standard business practice

a business action that has been widely adopted within an industry or occupation

traditional small business

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 business

a firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business

expert business professinalization

a situation that occurs when all the major functions of a firm are conducting according to the standard business practices of its industry

specialized business professionalization

a situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or human resources

minimalized business professionalization

a situation that occurs when the entrepreneur does nearly everything in the simplest way possible

key business functions

activities common to all businesses such as sales, operations(production), accounting, finance, and human resources

industry-specific knowledge

activities, knowledge, and skills specific to businesses in a particular industry

effectuation

an approach used to create alternatives in uncertain environments

prevention focus

an entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss

passion

an intense positive feeling an entrepreneur has toward the business or the idea behind the business

comprehensive planners

entrepreneurs who develop long range plans for all aspects of the business

critical point planners

entrepreneurs who develop plans focused on the most important aspect of the business first

opportunistic planners

entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it

corporate entrepreneurship

form of entrepreneurship in which takes place in existing businesses around new products, services, or markets

crowdfunding

funding a business online through the collective involvement of others who provide donations, loans, or investments

Independent small businesses

o A business owned by an individual or small group

Owner-managed firms

o A business run by the individual who owns it

Small business administration

o A part of the U.S. Gov. which provides support and advocacy for small business

Heir

o A person who becomes an owner through inheriting or being given stake in a family business

Entrepreneur

o A person who owns or starts an organization, such as a business

Self-efficacy

o A person's belief in his or her ability to achieve a goal

Franchise

o A prepackaged business bought, rented, or leased from a company called a franchiser

Firm

o An organization that sells to or trades with others

Four key ideas to starting an entrepreneurial small business

o Believe that you can do this(self-efficacy) o Planning + action = success o Help helps.(learn from others) o Do well. Do good. (do good for others as you try to do well for your business)

Novelty

o Characterized by being different or new

Imitative

o Characterized by being like or copying something that already exists

Entrepreneurship and opportunity

o Not About only the idea but assessing it and the opportunity it provides o An opportunity key characteristic is the ability to add value for the customer* o The ultimate reason or focus for your concept is the customer*

Founders

o People who create or start new businesses

Buyers

o People who purchase an existing business

Small and medium enterprise

o The international term for small business

Goods or services

o The tangible things(goods) or intangible commodities (services) created for sale

Occupation

o The type of activity a person does regularly for pay

Self-employed

o Working for yourself

Opportunity

o business concept for a product or service that adds value to the lives of its customers by uniquely addressing an identified need or desire in a way that takes advantage of existing market conditions and the skill set of the entrepreneurs and ensure the financial viability of the enterprise delivering the product or service

small business

o involves 1-50 people o Has its owner managing the business on a day-to-day basis

Entrepreneurship

o the pursuit of opportunity without regard to resources currently under control o knowledge is the impetus for entrepreneurships

innovativeness

refers to how important a role new ideas, products, services, processes, or markets play in an organization

determination competencies

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

flexibility rewards

the ability of business owners to structure life in the way that suits their needs best

resource competencies

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

income rewards

the money made by owning one's own business