Chapter 5 - Entrepreneurship

which of the following are characteristic of the first mover advangtage

customers are driven by something other than cost the firsm is the first to market with a differen approach customer loyalky is obtained

the mission of the firm is to make money

false

implementing a stragy is about :

fit within the business alignemnt within the business

the firm _______ is how the form plans to sue the competitive adavantge of the business to accomplish its mission

strategy

The ________ helps a small business stay away from things that opportunistically sound promising, but which take the business away from its pricipal focus

mission statement

what is a brief statement that summrizaes how and where the firm will compete?`

mission statement

it is necessary that the mission statement be so ______that it clearly tells every employee what not to do

specific

are centeral to a new bsuiness abilily to maintain a clear visison about what it wants to be and how it will accoumploist that plan

strtgey mission

a company is more likely to make money if the mission statement is

succeint widely known clear memeorbale

an effective mission statement and __________- competitive advantage are inserarable

sustainable

to ensure that every employee can understand the mission statement, the new business owner must keep the statement _______

simple

implementing a _______ is about fit and alignment within the business

stratgy

a ______________ is a set of advantages that proved a firm with the opportunity to make money where other buisness cannot easily copy that firms advantages

sustainable competitive advantage

why did Circut city attempt to chagne direction fail?

led to a loss of their traditioanl cusomter base caused the company to lose its unigue postiting in the market

first step in idenifying a sustainable competitive advantage ?

list if assests and capabilies

a _______ is a meausrement used to evalte whether a person or firm is meeting its goals

metric

the ____ is the foundation on which the firm ________- is built

misson, stragtegy

which of the following are true regarding metics?

are evaluated on a recurring baisis positive movement are best establisih at the founding of business

for the mission statement of a business to be utlilized effectively, the founders must make sure that its _________

directly applicable

economic_______ are the finacnail gains garnered from an asset or capapbilies that are in excess of the ordinary returns in that particular industry

rents / economic rents

Idenifty the charactics of a substine that an entreprenier should evalte for every resource and capability of his or her business

satiffies the same basic need that is satisfied by the product or service evaluated based on its similiartly to the entrpreneur unique resoucre and capabilily

a mision statement that is understandbale and memorable, it must be kept

short

process of identifying a sustanianble competitive advangte invloves evaluating the competitive of unqie resources and capabilies

step 3

what is a direct measure of the business mission?

metric

Key Characteristics that should drive the new business owner in developing the mission statement

- be spefic -keep it short -keep it appilcable -keep it simple

Steps for sustainable competitive advantage

1. develp a list of the assests and capabilites 2. break the list of assets and capabilies into two groups standard and unique 3. evaluate the unigue resourses

organization should develop between______ measures of success for its venture

5 and 8

when making a mission statement, the new business founder should keep the statement short, simple, specific and applicable. the misson statemnet should also:

Measureable goals

most capabilies and assests listed by the firm are _____ for the industry

Standard

a mission statement is said to be ______ if it helps the employees of a firm active decision in the moment without having refer everything to the firm founder

actionable

a firms _______ are resources that combone to allow the firm to perfrom better than its competitors

capabilities

Which of the following is an example of a companus attempt to change direct that led to failure ?

circuit city's stratgey to change their sales force to inexpencise clerks

a keey part of building a _______- is having a deep understanding of your customers needs

competitive advantage

is the area of sepreration where a firm performs better than anyone else in the marteking that it serves

competitive advantage

the unigue assets and capabilies possessed by a new business will help form its

competitive advantage

a firms indurty consists of those business the firm believerare its direct

competitors

which of the following are consided intangiable assets?

contacts education experience branding

micheal porter

differenttiation focus low cost

a mission statements must be

direct simple appropriate

after developing an effective misson statement, the business needs to complete a deatield list of what consititues competitive advantgaes

false

as a business grows, it gets progressively less difficult to change it direct

false

the ________ advatntage occurs when the cusomter loyalty can be obtained if customers are driven primcpally by something iother than cost and the firms is the first maket with a differrenting approach

first mover

firms that arrive after the first mover are referred to as ______

followers

are examples of the impact of the mission statement ?

geographic firm will compete major ways in which the firm will compete

which of the following are terms used when creating the overarching goals of an organiziation?

overall stragy statement of purpose comapny mission

____ measures are tied to the stratgic goals of the organization but have more to do with the feel of the organization

qualitative

both categories of measures are tied to the strategic goals of the organization but ___________measures have more to do with the feel of the organization

qualitative

which two categories are the five to eight measures of success for a venture broken up?

qualitative quantitative

list the order the four logical steps in develping the firms strategy

the firms mission statement a detailed strategic plan the stratgy meets the citerion of being defenddable the strategy needs to be constantly reevaluated

For every resouce and capabilly that an entrepreuen deteremines to be indeed rare, the entreprenuer should evalute __________.

the market for a close substitute

which metic is easlily measured

Quantitative

implementing a strategy is about:

alignment within the business fit within the business

which of the following are critira used to evaluate the unigue resources and capabilies of a business venture

is it durable is it eaily substitued is it valueable is it rare

Which of the following statements are true regarding the rarity of a resource?

judgments about how rare a resource may be are qualitative if a resource is rare, it is considered unique a resource can be considered rare if it is matched by one competitor

Charactiers of a substitude that an entrepreneur should evaluate for every resource and capability of his or her business

the substitute satisfeies the same basic need that is satisefed by his or her prodcut or service Evaluated based on its similiartly to the entrepreneur unique rsource and capability

all individual competitive advancetages eventually disappear

true

important features of the mission statement ?

understood by all the business stake holders described what the company does or does not do must be concise

what assets tyipcally provides a business with a competitive advantage for some period of time?

unique

Step 2 the process of identifying a sustainable competitive advantae invloves splittling the list of assets into which of the following two cats?

unique assests standard assests

along with being rare, durable and not easily substituted, the resource msut also be _______, which means the customer is willing to pay extra bc of the uniqueness

valuable

a new business needs to focus on:

what the business does best in the industry performing activites where it has a competitive advantage doing some set of activies better than everyone else

how is the durability of a new firm's unique rsource or capability evaluated by the entrorenuer

whether the competitors of the firms would actually try to match the firm

Why do individual competitive advantagese eventually disappear

indutries change competitiors adapt

sustainable competitive advantage ( step 1 and 3)

list of the assests and capabilities break the list of assets and capabililies into two groups ( stand amd unqiue

which two elements have the power to guide the business as it develops?

mission strategy

a new business competitive advange needs to be _________

defensbile

the ____ perspective invloves assessing each resource or capability against the four elements within the evaluation system

resource based