BA 3305 Entrepreneurship MIDTERM

effectual or causal

2 ways opportunities can be pursued?

promotion, product, price, and placement

4 Ps of marketing

when you need to gain basic experience, when you lack the resources, when you face a narrow window of time, when you are uncertain about the demands

4 times part-time entrepreneurship makes sense?

business plan

A document designed to detail the major characteristics of a firm—its product or service, its industry, its market, its manner of operating (production, marketing, management), and its financial outcomes on the firm's present and future

Entrepreneurial ecosystem

A specific configuration of the environment that reflects the components that are most central to developing a strong and active community of start-up businesses

pop-up business

A temporary business that offers services or products in a variety of locations for a brief period at a time

episodic businesses

A temporary, project-based, or sporadically operating business.

Tangibility

An item's capability of being touched, seen, tasted, or felt

3,000

Big businesses can sometimes need this many ideas to get one successful product

Imitative

Characterized by being like or copying something that already exists.

price gouging

Charging an outrageously high price for something

word of mouth, personal contact, door-to-door, party sales, trade shows and exhibitions, and vending machines

Direct sales categories?

External environment

Everything outside the business

Passion, Perseverance, Promotion-Prevention Focus, Planning Style, Professionalization

Five Ps of Entrepreneurial Behavior?

Elasticity

From economics, the idea that the market's demand for a product or service is sensitive to changes in its price

small business

Involves 1-50 people and has its owner managing the business

Services

Nonphysical products

Channels

People and firms who connect producers of goods and services with customers

sales leads

People who receive a promotional impression and who give some thought to buying the product

Goods

Physical products

elastic product

Product for which there are any number of substitutes and for which a change in price makes a difference in quantity purchased

inelastic product

Product for which there are few substitutes and for which a change in price makes very little difference in quantity purchased

Planning Style

Ranging from comprehensive to habit-based, this reflects how much and about what you ordinarily plan

Prospects

Sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase

opportunity recognition

Searching and capturing new ideas that lead to business opportunities.

Consideration

Stage that is the process of getting into the prospective customer's final list of brands of products or services they are considering for purchase

Awareness

Stage that is the process of getting your message out as much as you can to your target market

Interest

Stage that is the process of prospective customers taking some action to learn more about the product, service, or your company

Radical innovation strategies

Strategies that reject existing ideas and present a way to do things differently.

Incremental strategies

Strategies that take an idea and offer a way to do something better than it is done now.

Perseverance

The ability to stick to activities over long periods, even in the face of setbacks

hybrid entrepreneurship

The process of initiating a business while simultaneously remaining employed for wages or salary

Succession

The process of intergenerational transfer of a business

Buyout

The purchase of substantially all of an existing business

marketing funnel

The rule of thumb in marketing that it takes a large number of people to be made aware of your product in order to find a purchaser

liability of newness

The set of risks faced by firms early in their life cycles that comes from a lack of knowledge

Feel Check Plan Do

The steps of the Entrepreneurial Process?

Action

The visible behavior a person takes

Bootstrapping

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

catalogs, flyers, letters, videos, mail order, and anything else that can be mailed, faxed, called, or emailed

What are examples of Direct mail?

lack of agreement, separation of work and family issues, and handling of endings

What are some Team problems?

calculated as a portion of a known number, soft estimates such as traffic counts or questionnaire results, using the hit rate

What are some sales forecasting methods?

value of promotion

What is directly tied to the sales it produces

impression

What it is called when someone notices a promotional effort

Perishability

When a service that if it is not used when offered, it cannot be saved for later use

Takeoff

after the success stage, characterized by rapid growth

task environment

comprises those institutions the firm deals with directly

internal environment

consists of everyone within the firm

causal model of entrepreneurship

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.

Emergence

first stage, where the entrepreneur moves from thinking about starting the business to actually starting the business

You may start a new business, You may buy an existing business, You may franchise a business, You may inherit a business, You may be hired to be the professional manager of a small business.

five ways that people get into small business management?

Demand, Value, Prices set by competing firms, Your business strategy and product placement

four key factors for determining optimum price?

resource maturity

fourth stage, characterized by relatively stable or slowly rising sales and profits over several years

Word of mouth

good starting point and is low cost, but is not controllable and is limited in reach.

Teams

majority of businesses are started by?

Spouses or life partners

most common form of team

Marketing

one of the basic building blocks for your business plan and your road map to what you want to do; it can't be set in concrete

start-ups marketing plan

plan that helps define how the firm will build its brand and relationship with customers.

established businesses marketing plan

plan that is a key step in imagining how a firm might reposition itself and maintain its relationship with customers

role conflict

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

Existence

second stage, marked by the business being in operation but not yet stable in terms of markets, operations, or finances

general environment

sectors shaping the larger world

work and personal experience, imitation of a similar business, a chance happening, discussions with family and friends, education and experience, and online searches for "idea sites."

sources for new businesses?

manufacturer's suggested retail price (MSRP)

target price set by a manufacturer for a product or service intended to provide profit for each intermediary in the distribution channel

Strategy

the idea and actions that explain how the firm will make its profit

Awareness, Interest, Consideration, Purchase

the stages in customer development process?

Success

third stage, marked by the firm being established in its market, operation, and finances

Entrepreneurial Life Cycle

· emergence, existence, success, and resource maturity

family business

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

Franchise

A legal agreement that allows a business to be operated using the name and business procedures of another firm

start-up

A new business that is started from scratch

Entrepreneur

A person who owns or starts an Organization

self-efficacy

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

Cognition

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

markup pricing

A price-setting method where an amount is added to the cost of a product to set the retail price and provide a profit

Heterogeneity

A quality of a service in which each time it is provided it will be slightly different from the previous time

Inseparability

A quality of a service in which the service being done cannot be disconnected from the provider of the service

organizational culture

A set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company

entrepreneurial alertness

A special set of observational and thinking skills that help entrepreneurs identify good opportunities

Purchase

Stage where a person buys your product or service and becomes a customer of your firm

o First step involves reviewing and confirming the goals that define your firm and knowing your magic number o The second step is where you consider your customers and the benefits you want to offer them and plot these out in a procedure called perceptual mapping. o The third step is to study the dynamics and trends of your industry using a technique called industry analysis in order to identify the best way and time to enter business. o Fourth step involves building on the prior three steps to determine the best strategic direction and strategy for the firm

Strategic planning four-step process?

Imitative strategies

Strategies that take an idea that somebody else has already discovered and build a business around that idea

outbound (calling the customer) and inbound (customer calling your firm)

Telemarketing two forms?

Markup

The amount an entrepreneur adds to costs to provide a profit

Margin

The amount of profit, usually stated as a percentage of the total price

Promotion-Prevention Focus

The behaviors related to pursuing gains and preventing losses

Passion for Innovation

The belief that If the team is always thinking about making things better for customers, one another, the firm, and its offerings, it will mean the best days are always ahead of all

Passion for the Team

The belief that Team members need to feel good about one another as people and professionals and want to help one another. It isn't enough to avoid toxic employees

Passion for the Mission

The belief that The team needs to believe in the business, its goals, products, and services

Passion for the Customer

The belief that a team that is always thinking about the customer and how to make their experience better will in turn make customers passionate about the company

Passion for Fairness

The belief that an organization that seeks to always be fair creates teams and individuals who emulate this

law of supply and demand

The economic theory that describes how the demand for products (or services) and the supply of them affect each other

Professionalization

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

external legitimacy

The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business or the owner's family

internal understanding

The extent to which employees, investors, and family members involved in the business know the business's purposes and operations

Volatility

The frequency of business starts and stops

Industry

The general name for the line of product or service being sold, or the firms in that line of business

optimum price

The highest price that will produce your desired level of sales in your intended market

Passion

The intensely positive feeling entrepreneurs have for their business

magic number

The post tax income the entrepreneur personally seeks from the business.