mgmt new business exam 2
franchisee
A person who buys a franchise
the appendices
one page version of owner's resume
win for them
it should be all about the other person
mass market
large portions of the population (broad markets are expensive)
legal and organizational structures
legal form of the business organizational structure of the firm
anchor
make connection with that person
tagline
memorable catchphrase that captures the key idea of a business, it's service
ask
finish with a strong ask and don't distract them with other things
scope
geographical range covered by the market
tool
industry analysis
competitive advantage
particular way a firm implements customer benefits that keeps the firm ahead of other firms
franchise
business that markets a product, developed by a franchisor
innovative strategy
An overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing
executive summary
a 1 or 2 page overview of the business
business plan
a document signed to detail the major characteristics of a firm
decline stage
a life cycle stage in which sales and profits of the firm begin a falling trend
niche market
a narrowly defined segment of the population that is likely to share interests or concerns
title page
contains introductory information
scale
size of the market (if everyones your customer no ones your customer)
pre-strategy
the first step of strategic planning
strategy of a small business
the ideas and actions that explain how a firm will make it's profit
introduction stage
the life cycle stage in which the product or service is being invented and initially developed
vision statement
a very simple 5-10 word sentence or tagline
key personnel
sell the most important single element in the business plan. accomplishments rather then experience
what makes a strategy good is it fits too?
the particulars of your business and the resource you can bring to it
risks
the parts of a business or business plan that expose the firm to any kind of loss - profits, sales, reputation, assets, customers, and so on
pure innovation
the process of creating new products or services, which results in a previously unseen product or service
maturity stage
the third life cycle stage, marked by a stabilization of demand
market and target customer
total population of people or firms you plan to sell to
4 types of franchises
trade name, product distribution, conversion, business format
differentiation strategy
type of generic strategy aimed at clarifying how one product is unlike another in a mass market
win for win
what do you expect to go out of the dealership
competitive advantage
what makes your product or service unique
generic strategy
3 widely applicable classic strategies for business of all types (differentiation, cost and focus)
mission statement
a paragraph that describes the firm's goals and competitive advantages
what is an example of industry analysis
a research process that provides the entrepreneur with key information about the industry
growth stage
an industry life cycle stage in which customer purchases increase at a dramatic rate
imitative strategy
an overall strategic approach in which the entrepreneur does more or less what others are already doing
company background
brief description of the company, the firm's current status, and the history of the business Vision statement / mission statement Specific goals, Business' competitive advantage
market
business term for the population of customers for your product or service
location
description of the facility, how it meets starategic and sales goal of business
external legitimacy
extent to which a small business is taken for granted, accepted, or treated as variable by organizations or people outside the small business or the owner's family.
internal understanding
extent to which employees, investors, and family members in the business know the businesses purposes and operations
drawbacks on franchises
freedom, costs, standards
cost strategy
generic strategy aimed at mass markets in which a firm offers a combination of cost benefits that appeals to customer
focus strategy
generic strategy that targets a portion of the market, called a segment or niche
good strategy leads too?
greater chances for survival and higher profits for small businesses
marketing strategy
overall strategy your firm pursues in the market
research and development
part of a business that is focused on creating new products or services and preparing new technologies
Franchise Disclosure Document (FDD)
primary source of data for prospective franchisees regarding franchisors
