Comm Midterm 1
diversified
2 unrelated segments w very different needs/issues
Multi-sided platforms/markets
2/more interdependent segments
reward
ability to bestow positive benefits
revenue streams
cash generated from each customer segment
Task-oriented behaviors
clarity of roles and expectations
expert
comes from having special knowledge
Relationship-oriented behaviors
concern for others
broad differentiation
differentiate product to appeal to broad spectrum of buyers
trade-off strategies
embrace one or risk having none at all
pooled interdependence
everyone deals w common resource/input and completes task on their own, at the end results are added together
want
gap between what is and what is desired
strategy
general plan to achieve one or more long-term or overall goals under conditions of uncertainty
referent
influence because of admiration
corporation
legal entity entirely separate from parties that own it
value driven structure
less concerned w cost implication, focus on quality
self-service
maintains no direct relationship w customers
operating plan
manufacturing/operating system to be used
centralization
most decision making concentrated at top
key resources
most important assets required to make business model work, allow enterprise to execute other functions, depends on model type
transaction revenues
one-time customer payments
customer relationships
relationships a company establishes w specific customer segments
asset sale
selling ownership rights to physical good
retailing
sells to consumers
automated services
simulates personal relationship
Fundamental attribution error
tendency to overemphasize internal causes of another person's poor behavior or performance/underemphasize external factors
key activities
things company does to make business model work, depends on model type, same goals as key resources
TOWS
threats, opportunities, weaknesses, strengths
VRIO
valuable, rare, costly to imitate, organized to capture value
disproportionate influence
when others are willing to allow you to direct their attention/action
business plan
written description of business's future
coercive
ability to punish if don't comply
hostile takeover
acquisition where company doesn't want to be acquired
communities
allow users to exchange knowledge/solve each other's problems
low cost provider
appeal to broad spectrum of customers by under-pricing rivals
intrapreneurs
apply entrepreneurial skill within a corporation, enjoy freedom w employers providing regular salaries/financial backing, take less personal risk
legitimate
authority inherent in role
personal assistance
based on human interaction
goal setting theory
based on premise that intention to work towards a goal is a primary source of motivation
small business owner
be your own boss, generate steady income, make conscious decision to stay small
reinforcement theory
behavior is a function of consequences - positive, negative, or none
value proposition
benefits offered to consumer by product
debt
borrowed funds repaid with interest over stated time period
entrepreneur
build scalable business model, take risks, have longer run view
company overview
business type, background,
wholesaling
buys from manufacturers, sells to retailers
niche market
cater to specialized segments
co-creation
co-create value w customers
organization
collection of people working together to achieve a common purpose
overall cost leadership
competitive advantage based on developing/distributing products more efficiently than competitors
focused low cost
concentrate on narrow buyer segment/market niche, outcompete rivals by having lower costs
focused differentiation
concentrate on narrow buyer segment/market niche, outcompete rivals by offering customized attributes that better meet tastes/requirements
agency problem
conflict of interest when one party is supposed to act in best interest of the other
manufacturing
creates goods
marketing
customers and competition
competitive scope
defines breadth of the company's target market
task interdepedence
degree/form in which group members must rely on one another for inputs to perform their tasks efficiently
brokerage fees
derives from intermediation services performed on behalf of two or more parties
cost structure
describes all costs incurred to operate business model
customer segments
different groups of people/organizations an enterprise aims to serve
job specialization
dividing tasks into jobs, leads to efficiency
operational effectiveness
doing the same things better
mass market
don't distinguish between different segments
matrix structure
employees from various functional areas form teams to combine skills in working on project/product
reciprocal interdependence
everyone's outputs becomes everyone's inputs and vice versa
escalation of commitment
fear of changing plans will result in loss of sunk costs/embarrassment from admitting mistake
advertising
fees for advertising for particular product/service/brand
financial plan
financial needs and sources of financing, projections, historical statements
cost driven structure
focus on cost minimization
motivation
forces within a person that affect direction, intensity, and persistence of voluntary behavior
recurring revenues
from ongoing payments for continuing services/after-sale services
bootstrapping
fund operation with own resources
equity
funds raised through sale of stock, those who provide get share of business profit
need
gap between what is and what is required
commerce
general exchange of goods and services
subscription fees
generated by selling continuous access to a service
usage fee
generated by use of particular service - the more the service is used, the more the customer pays
best cost provider
gives customers more value for their money by satisfying requirements on key attributes WHILE beating their price expectations
licensing
giving customers permission to use protected intellectual property - in exchange for licensing fees
functional structure
group together people w comparable skills/perform similar tasks, each unit headed by someone w expertise
departmentalization
grouping jobs into units
channels
how customer segments are reached to deliver value proposition
equity theory
how fairly they are treated in comparison to coworkers
self-fulfilling prophecy
impact of expectations on performance
IPO
initial public offering, first sale of company's shares to public/listing of shares on stock exchange
management plan
key players and their experience
maxi-maxi
leverage strengths to exploit opportunities
maxi-mini
leverage strengths to overcome weaknesses
sole proprietorship
makes all important decisions, but receives all income
unity of command
management principle that workers should report to just one boss
social facilitation
mere presence of other people enhances predominant behavioral responses in that situation
key partnerships
network of suppliers/partners making business model work
span of control
number of subordinates who report directly to a manager
LLC
only taxed on personal level (no double taxation)
big 5 personality traits
openness, conscientiousness, extraversion, agreeableness, neuroticism
strategic focus
organization is clear about mission/vision, has coherent and well-articulated strategy for achieving goals
business
organization seeking to provide goods/services to customers
capabilities
organizational/managerial skill
mini-mini
overcoming weaknesses to avoid threats
mini-maxi
overcoming weaknesses to exploit opportunities
own/indirect channels
own stores
partnership
owned jointly by 2 or more people
partner/indirect channels
partner stores/wholesalers
interactional justice
perceived degree that respect is given
distributive justice
perceived fairness of outcome
procedural justice
perceived fairness of process used to determine outcome
expectancy theory
probability of individual acting a certain way depends on strength that individual's belief that the act will have a certain outcome/whether they value it
leadership
process involving disproportionate influence over others in pursuit of goals
focus on particular market niche
products/services are designed to meet needs of customers
angel investors
provide financing for start up businesses by investing their own money, "seed capital"
service
provides services to consumers
acquisitions
purchase of one company by another
management
pursuit of organizational goals through the use of organizational resources
core competencies
resources/capabilities that create competitive advantage, something you do better than anyone else
classic entrepreneur
risk takers starting companies based on innovative ideas
own/direct channels
sales force, web sales
confirmation bias
seeking out/paying attention to information confirming/aligning with our decisions/beliefs/values opinions
not for profit companies
serve public purpose instead of personal gain, no income tax
process
set of behaviors/responses that continue for some period of time
C corp
shareholders who have stake in the company, board of directors, top management
segmented
slightly different needs/issues
change-oriented behaviors
speaking up, innovating, learning, adapting
venture capital
specialize in financing small/high growth companies, receive ownership interest/voice in management in return for money
dedicated personal assistance
specific representative to specific client
decentralization
spreads decision making throughout organization
multi-preneurs
start series of companies
micropreneur
start small and plan to stay small
publicly held
stock available for sale to general public
privately held
stock only held by few individuals who can't sell to general public
coopetition
strategic alliances b/t competitors
vision and mission statement
strategy, philosophy, values
divisional structure
structured similarly to standalone companies, w certain common tasks centralized at HQ level
differentiation
superiority of good/service due to things other than cost
resources
tangible and intangible assets
renting/lending/leasing
temporarily granting someone exclusive right to particular asset for a fixed period - in return for fee
social loafing
tendency for average levels of effort in a group to mask an individual's lower level of output on a task
self-serving bias
tendency to attribute our own successes to internal factors... and our failures to external factors
mergers
two companies combine to create new company
product/service plan
unique features, why customers will buy
sequential interdependence
unique task completed by each person in specified order using unique inputs
VRIO framework
used to determine whether resources/capabilities are source of sustained competitive advantage
growth-oriented entrepreneurs
want business to become major corporation
chain of command
who reports to who
