Business Ventures Quiz 2

Place -

- Channels - Coverage - Locations - Transport

Promotion

- Sales promotion - Advertising - Sales force - Public relations

Price

-List price - Discounts - Payment period - Credit terms

Product

-Product variety - Quality - Design - Features

Profit

A financial gain, esp. the difference between the amount earned and the amount spent in buying, operating, or producing something

Income Statement

A financial statement showing the revenue and expenses for a fiscal period.

Balance Sheet

A financial statement that reports assets, liabilities, and owner's equity on a specific date.

Flow Chart

A graphical representation of the progress of a system for the different steps of the manufacturing problem.

Business Strategy

A leadership plan that achieves a specific set of goals or objectives and compete in the market domain.

cover letter

A one-page document on business stationery that introduces the business plan and the business owner to the recipient and indicates why the recipient is being asked to read the plan. Also called letterhead

Stock Exchange

A place where shares in a company or business enterprise are bought and sold.

Operations Management

A specialized area in management that converts or transforms resources (including human resources) into goods and services.

Needs

A state of felt deprivation or necessity.

Interest

A sum paid or charged for the use of money or for borrowing money

System

A system converts input into output, and usually consists of "processes"

Liabilities

Amounts owed to creditors

Executive Summary

At the start of business plan - overview of the business, its business model, market, expectations, and immediate goals.

Cycle Time (CT)

Average time between completion of successive units of products

Lenders

Banks, individuals, companies, car companies. Anyone who allows individuals to borrow money.

Targeting

Choosing the segment(s) that will allow an organization to most efficiently and effectively attain its marketing goals.

Relationships

Connections you have with other people and groups in your life.

price floor

Customer's lowest perception of product value

Price Ceiling

Customer's max perception of product value

Positioning

Designing the company's offering and image to occupy a distinctive place in the minds of the target market(s).

Segmentation

Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.

Demands

Human wants that are backed by buying power. Given their wants and resources, people demand products and services with benefits that add up to the most value and satisfaction.

Capacity

Maximum output rate that can be sustained

Throughput

Output rate (output/unit time) that units actually being processed

The Four "P's"

Product, Price, Place, Promotion

STP

Segmentation, Targeting, Positioning

Marketing Skimming

Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay high prices. Fewer, but more profitable sales.

value proposition

Small business owners' unique selling points that will be used to differentiate their products and/ or services from those of the competition.

Costs

The expenses involved with manufacturing, promoting, and distributing a product

Wants

The form that a human need takes as shaped by culture and individual personality. People have narrow basic needs but almost unlimited wants.

Target Customer

The inteded group to which a product or sevice is marketed or advertised

Transformation Process

The process that converts resources into finished goods and services

order fulfillment

The processes involved in responding to customer orders.

Pacing

The speed and time it takes for cycles of the different production steps to be completed

Process

The steps in production.

Customer Decision making Journey

The steps that a consumer goes through from first realizing a product exists all the way through to finally purchasing it:

Potential Market Size

Total Estimated market population/size for your Market Domain

Transactions

Trade between two parties

Goals -

What do you expect from the Business? What is you product/service? How innovative/imitative will you be? Who do you plan to sell to? Where do you plan to sell?

Penetration Rate

What proportion of all the potential customers you have identified can you serve?

Sourcing

When a business outsources to other companies to make intermediate goods that are part of the company's overall production (ex: computer chip in an Iphone)

Purchase -

a consumer decides to actually purchase a product

Awareness

a consumer first realizes a product or service is available and that they might want or need it

Evaluation

a consumer researches the product and considers competing products in order to form opinions

Business Model Canvas

a diagram of how a company creates value for itself and its customers

Interview guide

a list of all the questions and possible probes an interviewer asks in an interview, as well as notes about how the interviewer will begin and end the interview

Quality Management

a management approach that establishes an organization wide focus on quality

Market Penetration

a marketing strategy that tries to increase market share and market presence among existing customers.

Value based pricing

a method of setting prices based on customer perceptions of value

creditor

a party that has a claim on the services of a second party. It is a person or institution to whom money is owed. (commercial banks, credit unions)

investor

a person or organization that puts money into financial plans, property, etc. with the expectation of achieving a profit. (Self funding, Angel investors, Personal investors, Venture capitalists, Crowdfunding)

Business Model

a plan that details how a company generates revenues

Marketing

a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

Market

a set of actual and potential buyers of a product or service.

Total Available Market -

all customers who have the means to purchase the product/service

Loans

amounts of money borrowed which will accumulate interest

Budget

an estimate of income and expenditure for a set period of time.

Efficient

being effective without wasting time or effort or expense

Time Chart

diagram used to visually review the time dedication necessary for the different steps of the business system.

revenue

income

Angel Investors

individuals who invest in start-up companies with high growth potential in exchange for a share of ownership

competitor based pricing

involves setting prices based on competitors' strategies, prices, costs, and market offerings

Assets

money and other valuables belonging to a business

effective

one that enables the organization to accomplish its strategy

service organization

one that transforms resources into an intangible output and creates time or place utility for its customers

Venture Capitalists

persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock

Demand forecasts

projections of a company's sales for each time period in the planning horizon

Probing

prying or persistently searching for specifics when interviewing

Leading Questions

questions that predispose a respondent to answer in a certain way (have the answer in the question)

Crowdfunding

raising money for a project or venture by obtaining many small amounts of money from many people

Snowballing

refers to market research carried out with individuals who then suggest other friends, family members or colleagues, thereby increasing the sample size. Tends to produce samples of very similar people.

Cost Based Pricing

setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk

Marketing Offers

some combination of products, services, information, or experiences offered to a market to satisfy a need or want

Exchange

the act of obtaining a desired object from someone by offering something in return

Price

the amount of money charged for a product or service.

Principle

the amount you borrow and goes down as you begin to pay it back

Marketing Management

the art and science of choosing target markets and building profitable relationships with them

Procurement

the buying and reselling of goods that have already been produced

Customer Value

the consumer's assessment of the product's overall capacity to satisfy his or her needs.

Expense

the cost of goods or services used to operate a business

equity

the difference between liabilities and assets. The share price is used to figure out the equity value.

customer satisfaction

the extent to which a product's perceived performance matches expectations

Outputs

the goods, services, and ideas that result from the conversion of inputs

Supply Chain Management

the management of flows among firms in the supply chain, which primarily decides the quantity of a good/service to supply in order to maximize total profitability

Finance

the management of money or funds for companies.

Logistics

the management of the details of an operation

Maximum Perceived Value

the maximum price the public is willing to pay for a good or service.

Marketing Myopia

the mistake of focusing only on existing wants and losing sight of underlying consumer needs

inventory

the quantity of goods that a firm has on hand, or final goods that are currently unsold

Market Share

the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself

Inputs

the resources—such as labor, money, materials, and energy—that are converted into outputs

Manufacturing Organization

the transformation process of turning raw materials into physical goods.

ask

the ultimate sum a business is seeking from investors

Self Funding

when the owner of the business uses their personal finance to fund the business

Non-judging language -

words that do not put a negative interpretation to what the person is sharing.