MGMT 475 Siue Exam 1

Decisions needed to establish strategic planning

1. Major goals for your firm 2. Types of customers you seek 3. Stage and trend of your industry 4. Specific generic and Supra strategies you pursue

Myths about small biz

1. Not enough financing 2. Recession 3. You need to make something 4. If you fail, you can't try again 5. 90% of all small biz fail within 2 years

7 strategies of entrepreneurial way

1. Persevere 2. Scale back 3. Bird in the hand 4. Pivot 5. Take it on the road 6. Ask for help 7. Plan to earn

5 initial key goal decisions

1. What do you expect out of biz? 2. What is your product? 3. How imitative or innovative will you be? 4. Who do you plan to sell to? 5. Where do you plan to sell?

Expert biz profess.

A situation that occurs when all the major functions of a firm are conducted according to the standard business practices

Blue ocean strategy

A strategy based on creating a new product or service which has no competitors

Set asides

Government contracting funds that are saved for particular kinds of firms such as small biz, minority owned, and women owned

Pilot test

A preliminary run a business with the goal of assessing how well the overall Approach works

Rewards of small biz

Flexibility Income Growth

Creation

Focus on making new entities

Gross profit

Funds left over after deducting COGS

Standard business practice

A business action that has been widely adopted within an industry

License

A legal agreement granting you rights to use a particular piece of intellectual property

Efficiency driven economy

A nation where industrialization is becoming the major force providing jobs and where minimizing costs while maximizing productivity is a major goal

Innovation driven economy (US)

A nation where the major force for jobs come from high value added production based on new ideas and technologies

Factor driven economy

A nation where the major forces for jobs come from farming or industries like forestry, mining or oil production

Cognition

A persons way of perceiving about his or her experience

Industry specific knowledge

Activists and skills specific to businesses in a particular industry

Key biz functions

Activities common to all businesses such as sales, operations, accounting and Human Resources

Net profit

Amount of money left after operating expenses are deducted from the business

Certification

An examination based acknowledgement that the firm is owned and operated as specified

Goal

An intended outcome for your business

Entry wedge

An opportunity that makes it possible for a new business to gain a foothold in a market

Growth stage

And industry lifecycle stage in which the customer purchases increase at a dramatic rate

Incremental innovation

And overall approach in which a firm patterns itself on other firms with the exception of one or two key areas

Imitative strategy (Innovations small biz develops)

And overall strategic approach in which the entrepreneur does more or less what others are already doing

Customer focus

Being in tune with the market

Four key ideas to starting a small biz

Believe that you can do this Planning + action=success Help helps Do well. Do good

Brie

Boundary Resources Intention Exchange

Specialized biz profess.

Businesses have founders who are passionate about one or two of the key business functions

Opportunity recognition

Capturing new ideas that lead to business opportunities. this process often involves creative thinking that leads to discovery of new and useful ideas

Industry dynamics

Changes in competitors sales and profits in an industry overtime

Scale

Characteristic of a market that describes the size of the market a mass market or niche market

Strategic actions

Competitive responses requiring major commitment of resources

Tactical actions

Competitive responses with low resource requirements

CSI entrepreneurship

Corporate, social and independent

Scope

Defines the geographic range covered by the market

Comprehensive planners

Develop long term plans for all aspects of business

Critical point planners

Develop plans focused on the most important parts of the business

Sources for biz ideas

Hobby Work experience Similar business Serendipity Family and friends Education Idea sites

5 pitfalls of innovation

IDing wrong problem Judging ideas too quickly Stopping with first good idea Failing to get bandits on train Obeying rules that don't exist

Industry life cycle

Intro Growth Shakeout Maturity Decline Death or retrenchment

Perseverance

Learned optimism; The ability to stick with some activity even when it takes a long time and the outcome is not known

Overall growth strategies

Lifestyle 25k Traditional 25-100k High performing 100k-1mil High growth venture-25% growth a year

Efficiency

Most work with fewest resources

5 Ps of Entrepreneurial Behavior

Passion Perseverance Promotion/ prevention Planning style Professionalization

Reactive planners

Passive approach. Wait for cues from environment to determine what actions to take

Franchise

Prepackaged business bought or rented from a company

Innovativeness

Refers to how important a Role new ideas, products services processes or markets play in an organization

Radical innovations

Rejecting existing ideas and presenting a way to do things differently

Determination competencies

Skills identified with the energy and focus needed to bring a business into exist

Opportunity competencies

Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business

Entrepreneurial alertness

Special set of observational skills that help entrepreneurs identify good opportunities the ability to notice things that have been overlooked

Opportunistic

Start with a goal instead of a plan and look for opportunities to achieve it

Scamper (cues that trigger ideas for your business)

Substitute Combine Adapt Magnify Put to other uses Eliminate Rearrange

Incremental strategy (innovations small biz develops)

Taking an idea and offering a way to do something slightly better than it is presently done

Resource competencies

The ability of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location and expertise

Mindshare

The degree of attention your market pays to your idea

Professionalization

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

Feasability

The extent to which an idea is visible and realistic and the extent to which you are aware of internal and extra no industry read forces that could affect your biz

Introduction stage

The lifecycle stage in which the product is being invented and developed

Conversion rate

The measure of how many visitors from your website actually make a purchase from you

Competitive advantage

The particular way a firm implements customer benefits that keeps the firm ahead of other firms in the industry

Magic number

The post tax income the entrepreneur personally seeks from the business

Pure innovation

The process of creating new products which results in a previously unseen products

Creative destruction

The way that newly created goods services or firms can hurt existing goods services or firms

Generic strategies

Three widely applicable classic strategies for business of all types differentiation, cost, and focus

Minimalized biz profess.

entrepreneur does nearly everything in the simplest way possible