Business 292 Test ONE

Feasibility Studies

1. the overall business idea 2. the product/service 3. the industry and market 4. financial projections (profitability) 5. the plan for future action

General Environment

A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector

Task Environment

A part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups, and the like

A

Adapt: adaptation from existing products or services Idea Trigger: What could you adapt from other industries or fields to your business?

C

Combine: possible combinations that result in something completely different books, coffee, and music: Barnes & Noble, Tattered Cover Book Stores Idea Trigger: What separate products, services, or whole business can you put together to create another distinct business?

E

Eliminate: search for opportunities that arise when you get rid of something or stop doing something Idea Trigger: what could I get rid of or reduce that would eliminate something my customer has to do?

M

Magnify (Modify): taking an existing product and changing its appearance or adding more features can also cue you to minimize something Idea Trigger: what could I make more noticeable or dramatic, or different in some way from my competitors?

P

Put to other uses: think of ways you could generate high number of opportunities for your product or service Idea Trigger: suppose you learned that all the traditional uses for your product had disappeared, what other uses might there be?

S

Substitute: what might substitute for something else to form an idea Idea Trigger: what opportunities can you think of that come as a result of substituting or replacing something that already exist?

SCAMPER

a creativity tool that provides cues to trigger new ideas for your business

Family Business

a firm in which one family owns a majority stake & is involved in the daily management of the business

Traditional Small Business

a firm intended to provide a living income to the owner & operating in a manner & on a schedule consistent with other firms in the industry & market

High-Performing Small Business

a firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business

High-Growth Venture

a firm started with the intent of eventually going public, following the pattern of growth & operations of a big business

Efficiency-Driven Economy

a nation where industrialization is becoming the major force providing jobs, revenues, & taxes & where minimizing costs while maximizing productivity is a major goal

Innovation-Driven Economy

a nation where the major forces for jobs, revenues & taxes come from high-value added production based on new ideas & technologies & from professional services based on higher education

Task Environment

a part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups, & the like

Heir

a person who becomes an owner through inheriting or being given a stake in a family business

Franchise

a prepackaged business bought, rented, or leased from a company called a franchisor

Lifestyle or Part-Time Firm

a small business primarily intended to provide partial or subsistence financial support for the existing lifestyle of the owner, most often through operations that fit the owners schedule & way of working

Entrepreneurial Alertness

a special set of observational and thinking skills that help entrepreneurs identify good opportunities the ability to notice things that have been overlooked, without actually launching a formal search for opportunities, and the motivation to look for opportunities

Imitative Strategy

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

Social Capital

characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur

Organizational Identity

composed of the name, description, & distinctive elements of a firm, such as trademarks, uniforms, logos, characters, & stories (Part of the BRIE model)

Social Entrepreneurship

form of entrepreneurship involving the creation of self-sustaining charitable & civic organizations, or for profit organizations which invest significant profits in charitable activities

License, Licensee, Licensor

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

Components of Entrepreneurial Ecosystem

Entrepreneurs, government, universities, investors, service people, mentors, and large organizations

Corporate Entrepreneurship

form of entrepreneurship which takes place in existing businesses around new products, services, or markets. It focuses on customer-focus & innovation

Royalty

payment based on the number or value of licensed items sold

Second Career Entrepreneurs

people who begin their businesses after having left, retired, or resigned from work

Founders

people who create or start new buisnesses

Buyers

people who purchase an existing business

Target Market

refers to the group of customers in the area you plan to serve who would be likely to be interested in your product, or those of competitors can refer to individuals or market groups called segments also called serviceable obtainable market, or SOM

Radical Innovation Strategy

rejecting existing ideas, and presenting a way to do things differently

Incremental Strategy

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

Entrepreneurial Ecosystem

a specific configuration of the environment that reflects the components that are most central to developing a strong and active community of startup business

External Enivronment

the forces, institutions & people (the rest of the world) outside of the boundary of the firm

Internal Environment

the people & groups within the boundary of a firm, including the owners, managers, employees, & Board members of the firm

Basic Business Competency

understanding the organizational & business processes of a firm

R

Rearrange (Reverse): Magnetic poetry example Idea Trigger: what can you rearrange or reorder in the way your product or service appears?

Feasibility

the extent to which an idea is viable and realistic and the extent to which you are aware of internal and external forces that could affect your business

Bootstrapping

using low-cost or free techniques to minimize your cost of doing business