Entrepreneurship Final 2

The two primary audiences for a business plan are investors and other external stakeholders and __________.

A firm's employees

Many firms benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign countries. This trend is referred to in the textbook as a(n) __________ trend.

Business

A ___________ is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.

Business model

Peter Watson is thinking about launching a small business consulting company. To get advice on how to proceed, he stopped by his local Small Business Administration (SBA) office. The SBA advisor told Peter that one of the first things he needs to do is to sit down and write a 25 to 35 page narrative that describes what his new business plans to accomplish and how it plans to accomplish it. The SBA advisor is telling Peter to write a(n) ___________.

Business plan

A company's mission statement should be placed in the ______section of its business plan.

Company description

Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) ____________ analysis.

Competitor

Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n)

Competitor analysis

Aquafina operates in the bottled water industry. The companies that offer identical or similar products and go after the same customers that Aquafina does are Dasani and Zephyrhills. Dasani and Zephyrhills are Aquafinia's ________ competitors.

Direct

Brian Sentry is starting a firm in the small industry that helps football teams discern whether a player has suffered a concussion. The industry is still so new that no standard operating procedures have been developed. The industry Brian Sentry is entering is an example of a(n) _______________ industry.

Emerging

According to the textbook, in many instances an investor will first ask for a copy of a firm's ___________ and will request a copy of the full business plan only if that portion of the plan is sufficiently convincing.

Executive summary

The ___________ is a short overview of the entire business plan.

Executive summary

If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a formidable nontraditional barrier to entry referred to as a(n) ______________.

First-mover advantage

A(n) _______________ industry is one that is characterized by a large number of firms of approximately equal size.

Fragmented

Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research Terry was doing is called ______________ research.

Industry

A business plan is important for two reasons: it forces the founding team to systematically think through every aspect of their new venture and:

It communicates the merits of a new venture to outsiders, such as investors and banks.

A business's ___________ statement describes why it exists and what its business model is supposed to accomplish.

Mission

A(n) ______________ business plan, which is intended to be a blueprint for a company's operations, is 40-100 pages long and is intended primarily for an internal audience.

Operational

According to the textbook, the five competitive forces included in the Five Forces model determine the average ____________

Rate of return for the firms in the industry

Which of Porter's five forces is most directly influenced by the number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?

Rivalry Among Existing Firms

Lincoln & Lexi, the company profiled in the opening feature for Chapter 4, was founded to:

Sell children's clothing through home parties and baby showers

Kaitlyn Harris is opening up a women's fashion boutique that will focus on professional women that are 18-30 years old. The age range of women that Kaitlyn plans to focus on is referred to as her _______ market.

Target

The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter's five forces explains how this aspect of the prescription medicine industry keeps profitability high?

Threat of Substitutes

In general, industries are more attractive when the ___________.

Threat of each of the five forces are low

The Partnering for Success feature in Chapter 5 focuses on three things that are important for startups to become active in to learn the ins and outs of their industries. The three items focused on in the feature are _______________.

Trade associations, trade shows, and trade journals

The three types of business plans are _____________.

summary business plan, full business plan, operational business planl