SBM exam 2
license
A government issued right to operate a business
effectual reasoning
A logical process in which one analyzes the resources available and restraints on the use of resources to create an attainable goal.
feasibility study
investigation that gauges the probability of success of a proposed project and provides a rough assessment of the project's feasibility
caveat emptor
let the buyer beware
casual model of entrepreneurship
one in which you want to create a particular product or service that does not yet exist and to achieve that end, you have to cause the product or service to exist
conversion rate
percentage of consumers who buy a product after viewing it
magic numbers
post tax income entrepreneurs seeks from the business
a/b testing
process of comparing two variations of a single variable to determine which performs best in order to help improve marketing efforts
tactical actions
refinements or extensions of strategies usually involving minor resource commitments
radical innovation strategy
rejecting existing ideas, and presenting a way to do things differently
royalty
share of earnings given as payment
common ways to search for new business opportunities
solving existing problems and preparing for future ones
freemium
subscriptions that provide some content for free but require a monthly subscription to take advantage of all the site has to offer
strategic partnerships
successful and trusting relationships with top-performing suppliers
licensor
An organization or company that holds the rights to trademarked property
BASIC
Beginner's All-purpose Symbolic Instruction Code
Blue Ocean Strategy
Business-level strategy that successfully combines differentiation and cost-leadership activities using value innovation to reconcile the inherent trade-offs.
opportunity recognition
Identification of potential new products or services that may lead to promising businesses
gains
Increases in equity from peripheral or incidental transactions of an entity
conversion franchising
an agreement that provides an organization through which independent businesses may combine resources
trade name franchising
an agreement that provides to the franchisee only the rights to use the franchisor's trade name and/or trademarks
parallel competition
an imitative business that competes locally with others in the same industry
business format franchising
an ongoing business relationship between a franchiser and a franchisee
imitative strategy
an overall strategic approach in which the entrepreneur does more or less what others are already doing
bricolage
construction or creation from a diverse range of available things
revolving credit
credit that is automatically renewed as debts are paid off.
retrenchment
curtailment; reduction; retreat to reassess
perceptual map
displays, in two or more dimensions, the position of products or brands in the consumer's mind
pitfalls of new ideas
focus on long term
discounted cash flows
future cash flows expressed in terms of their present value
how do entrepreneurs recognize new ideas for their business
having your thumb on the pulse of culture and business innovation
difference between imitation, incremental, and radical innovation strategies, how to find the best one
imitation is copying, incremental is slowly increases the effectiveness of an existing product, radical innovation is transforming a product. Know your capacity
affordable loss
The minimum possible expenditure of capital and other resources in order to bring an entrepreneurial idea to market.
leveraging contingencies
The practice of and ability to seize upon novel opportunities that become apparent during the conduct of business.
Casual (predictive) reasoning
The process of setting a goal and then determining the strategy and resources required to attain the goal.
lean business practices
Total Quality Management, Just in time Manufacturing, Value Chain, Continuous Improvement
point of indifference
When two alternatives have identical merit.
replacement value
a claim settlement method in which the insured receives the full cost of repairing or replacing a damaged or lost item
Employee Stock Ownership Plan
a company-established benefits plan in which employees acquire stock, often at below-market prices, as part of their benefits
customer segment
a group of customers who have similar preferences or place similar value on product features
start-up
a newly created company designed to grow fast
business models
a plan that details how a company creates, delivers, and generates revenues
heuristic
a problem solving approach (algorithm) to find a satisfactory solution where finding an optimal or exact solution is impractical or impossible.
target market
a set of buyers sharing common needs or characteristics that the company decides to serve
pilot test
a trial run of an intervention
RBI screen
"Really Big Idea" -a fast technique for making initial assessments of prospective business ideas based on five questions
minimum viable product
A bare-bones offering that allows entrepreneurs and product developers to collect customer feedback and to validate concepts and assumptions that underlie a business idea.
Licensee
One who receives a license to use, or enter onto, another's property.
buy-in
Process by which a person or group provides a sustained commitment in support of a decision, approach, solution or course of action.
incremental strategy
taking an idea and offering a way to do something slightly better than it is done presently
components of a good feasibility strategy
technical feasibility, financial feasibility, market feasibility (or market fit), and operational feasibility.
entrepreneurial alertness
the ability to notice things without engaging in deliberate search
creativity
the ability to produce novel and valuable ideas
net realizable value
the amount of cash the firm expects to collect
book value
the difference between the cost of a depreciable asset and its related accumulated depreciation
due diligence
the exercise of reasonable care in the evaluation of a business opportunity
product distribution franchising
the franchisor provides a few general guidelines and the franchisee is much more independent
value proposition
the full positioning of a brand - the full mix of benefits on which it is positioned
feasibility
the measure of the tangible and intangible benefits of an information system
founders
the political leaders of the colonies
synergy
the power that results from the combination of two or more forces
buyout
the purchase of substantially all of an existing business
earnings multiple
the ratio of the value of a firm to its annual earnings