MGMT 340
Suppose and advertisement costs $100 and causes fifty new customers to sign up for the service. This ad has a ____________ of $2.00.
cost per acquisition (CPA)
The essential lesson the be learned from small batch sizes is that by reducing batch sizes, organizations can get through the _____________ more quickly than competitors.
e. Build-Measure-Learn feedback loop
The __________ is that version of the product that enables a full turn of the Build-Measure-Learn loop with a minimum amount of effort and the least amount of development time.
minimum viable product (MVP)
The best way to influence the boss and get what you want is to take the ___________ possible.
most extreme position
The more money, time, and creative energy that has been sunk into an idea, the harder it is to _________.
pivot
Without a formal growth model, many companies get caught in the trap of being satisfied with a small profitable business when a ______ might lead to more significant growth.
pivot
What did the Boss offer the manager when he first started working for the hotel? This gesture was very surprising to the manager.
A cup of coffee
The more _________ a system is, the more effective your Franchise Prototype will be?
Automatic
There are formulas available to decide exactly how complex you want to make your mvp.
False
The true product of the business is the ________ itself?
Business
What is the "It" of Sarah's business?
Caring
_______________ are inventing the future.
College students
The technician has just reached the limits of his ___________ zone?
Comfort
Which of the following is not an example of a rule for your game from chapter 16?
Defense wins Championships.
The ________ Assumption states "if you understand the technical work of a business, you understand a business that does that technical work?
Fatal
What is the root cause of most small business failure?
Fatal Assumption
Once you were stricken with an ___________ Seizure there was no relief?
Entrepreneuial
A ________________ model is one that fulfills the perceived needs of a specific segment of customers in an innovative way?
Entrepreneurial
Which personality did Sarah say that she did not have?
Entrepreneurial
The _________ is the dreamer in us?
Entrepreneurial personality
Which of the following is not one of the Business Development Steps?
Fire everyone
What is the secret behind the success of the Business Format Franchise?
Franchise Prototype
Where are all assumptions put to the test?
Franchise Prototype
Most companies organize around personalities rather than around ________?
Functions
What are the natural dispositions of every business?
Grow or Contract
If you are building the wrong thing, optimizing the product or its marketing will yield significant results.
False
If you are causing (or missing) quality problems now, the resulting defects won't slow you down later.
False
Startups are different - too much budget is as harmful as too little.
False
Strategic planning takes months to complete and experiments should not begin until it is completed.
False
Structure is a prerequisite - it does guarantee success.
False
Why did Sarah start selling pies?
Her best friend said she should because she was so good at making pies
What question do you ask to discover Your Primary Aim?
How would you like your story to go?
"__________ is the signature of a bold, imaginative hand"?
Innovation
What business development step for small companies can have more impact than any other step mentioned in CH14?
Organizational Development
A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.
True
Customers reveal the truth in what they want by their action or inaction to your products or services.
True
Entrepreneurs possess a unique combination of perseverance and flexibility.
True
Entrepreneurs should humbly test their theories and approach to see what the market thinks. Listen to the feedback honestly. And continue to innovate in the directions they think will create meaning in the world.
True
Eric Rees says their organization IMVU does everything wrong: instead of spending years perfecting their technology, they build a minimum viable product (MVP), an early product that is terrible, full of bugs with stability problems. Then they ship it to their customers way before it's ready and expect the customers to pay for it.
True
In the Lean Startup model, an experiment is more than just a theoretical inquiry; it is also a first product.
True
More than one engine of growth can operate in a business at a time.
True
Once IMVU's efforts were aligned with what customers really wanted, their experiments were much more likely to change their behavior for the better.
True
One of the most vexing aspects of the minimum viable product is the challenge it poses to traditional notions of quality.
True
Startups are too unpredictable for forecasts and milestones to be accurate.
True
Startups need to conduct experiments that help determine what techniques will work in their unique circumstances.
True
The amount of time a company can count on holding on to market leadership to exploit its earlier innovations is shrinking, and this creates an imperative for even the most entrenched companies to invest in innovation.
True
The challenge of entrepreneurs is to find ways to achieve the same amount of validated learning at lower cost or in a shorter time.
True
The goal of a minimum viable product is to begin the process of learning, not end it.
True
The importance of small-batch approach produces a finished product every few seconds, whereas the large-batch approach must deliver all the products at once, at the end.
True
We must learn what customers really want, not what they say they want or what we think they should want.
True
_______________ is the process of demonstrating empirically that a team has discovered valuable truths about a startup's present and future business prospects.
Validated learning
You should build a business that works not because of you but ____________?
Without you
What does the author say to the question "How do I get my people to do what I want"?
You can't
"It's not your business you have to fear losing. It's something much bigger than that. It's _______?
Your self
Many viral products do not charge customers directly but rely on indirect sources of revenue such as _________________.
advertising
A common problem entrepreneurs can fall victim to is _______, endlessly refining their plans.
analysis paralysis
As startups grow, entrepreneurs can build organizations that learn how to balance the needs of existing customers with the challenges of dinding new customers to serve, managing existing lines of business, and exploring new business models - all ____________.
at the same time
After Infancy most _______ lock the door?
Technicians
At MacDonald's the hamburgers were removed from the hot trays in no more than_______ minutes?
10
According to the Small Business Administration more than ___________ such business close every year?
400,000
In 2000 franchise businesses were responsible for ______% of every retail dollar?
50
According to the Small Business Administration more than ___________ such business close every year?
600,000
How many steps are in the Business Development Program?
7
Innovation is a _______________.
All of these are correct
The Lean Startup model offers a way to test an organization's hypotheses __________.
All of these are correct.
What is the second standard of a Strategic Objective?
An Opportunity Worth Pursuing
Building the Prototype of your business is what kind of process?
Continuous
Think of your company as a _________ instead of a partnership?
Corporation
Which of the following is not an activity in foundation of the Business Development Process?
Cost Cutting
When developing a Market Strategy it is important to forget about what you want and consider what the _______ wants?
Customer
Which of the following is not a phase of business growth?
Death
_____________ is the essential unit of progress for startups.
Learning
"Your business and your ______ are two totally separate things"?
Life
Your ________ Plan shapes your life, and the business that is to serve it?
Life
The Franchise model uses workers with the ________ level of skill?
Lowest
What step is after Organizational Strategy in the business Development Program?
Management Strategy
What do you need instead of highly sophisticated workers?
Management System
The _________ is defined by how man technicians he can supervise effectively or how many subordinate managers he can organize into a productive effort?
Manager
A __________ business knows how it got to be where it is, and what it must do to get where it wants to go?
Mature
Turn-Key Revolution started in what fast food restaurant?
McDonalds
If the performance of the mentor and mentee are linked, it will ensure that the ___________ take education seriously.
Mentors
What is the first standard of a Strategic Objective?
Money
Who said "Creativity thinks up new things"?
Professor Levitt
Who was the author of the book "Man's Search for Himself" that Michael Gerber read three times?
Rollo May
Every game has to have _________ for people to be good at it?
Rules
Why did Elizabeth quit working for Sarah?
She got a new job
What does MacDonald call its self "The most successful _____________ in the world"?
Small Business
Your ______________ is a very clear statement of what your business has to ultimately do for you to achieve your Primary Aim?
Strategic Objective
A ___________ is a set of things, actions, ideas, and information that interact with each other, and in so doing, alter other systems?
System
Everyone who goes into business is actually ________ people in one?
Three
In chapter 10 they mention you should do what to each customer to increase sales?
Touch them
The early franchise businesses were called "___________" Franchises?
Trade name
Once an organization entered a period of rapid hiring, repeated Five Whys sessions revealed that problems caused by lack of ___________ were slowing down product development.
Trainning
One of the most important things to note about MVP is its ____________.
acceleration
The reason to build a new team to pursue an idea is that you believe you can accelerate through the Build-Measure-Learn feedback loop __________.
b. faster than anyone else can
The MVP's ultimate goal is to ________________.
c. to test fundamental business hypothesis
The author strongly recommend that startup teams be _____________.
completely cross-functional
Mainstream customers have ________ requirements and are much more demanding.
different
Because the Japanese car market after the war was so small and capital was not available, they were unable to do mass production and take advantage of ______________.
economies of scale
Leadership requires creating conditions that ________ employees to do the kinds of experimentation that ewntreporeneurship requires.
enables
The truth is every engine of growth __________________.
eventually runs out of gas
One of the most important lessons of the scientific method: if you cannot ____, you cannot learn.
fail
The _________ hypothesis tests how new customers will discover a product or service.
growth
Having a low-quality product can _____________ learning when the defects prevent customers from experience (and giving feedback on) the product's benefits.
inhibit
The _______________ about how to build a sustainable business is the outcome of experiments.
learning
After the startup has made all the micro changes and product optimizations it can to move its baseline toward the ideal, the company reaches a decision point. At this point they _________________.
pivot or persevere
Zappos' initial experiment provided a clear, _______.
quantifiable outcome
The one envelop at a time approach is called "single-piece flow" in lean manufacturing. It works because of the surprising power of _______________.
small batches
A ________ experiment is one in which different versions of a product are offered to customers at the same time. By observing the changes in behavior between the two groups, one can make inferences about the impact of the different variations.
split-test
The Lean Startup methodology reconceives a startup's efforts as experiments that _______ its strategy to see which parts are brilliant and which are crazy.
test
The imperative for new startups to innovate is ______________.
unrelenting
Startups have to focus on the big experiments that lead to _________________.
validated learning
The goal of every startup experiment is to discover how to build a sustainable business around the entrepreneur's ______________.
vision
The lesson of the minimum viable product is that any additional work beyond what was required to start learning is ___________, no matter how important it might have seemed at the time.
waste
The critical first question for any lean transformation is:
which activities create value and which are a form of waste?
