Entrepreneurship Exam 1 study guide
nontraditional barrier
cheaper way to create a barrier to entry for start ups
mature industry
industry that is experiencing slow or no increase in demand, along with limited innovation
False
A concept statement should be two to three pages long
False
Aging of the population , the increasing diversity of the workplace, and the continual migration of people from small towns and rural areas to cities are important economic trends
False
An idea is a favorable set of circumstances that creates a need for a new product, service, or business
Declining Industry
An industry that is experiencing a reduction in demand
True
An opportunity has four essential qualities. It's is rare, attractive, timely and anchored in a product service or business that creates or adds value for its buyer or end user
Key assests
Assets that enable a business to work. Physical, financial, intellectual, or human
Fixed cost
Cost that remain the same despite the volume of goods or services provided
Variable cost
Cost that vary depending on the volume of goods or services produced
Product/market scope
Defines the products and markets on which it will concentrate
Standard business model
Depict existing plans or recipes firm's can use to determine how they will create, deliver, and capture value for their stakeholders
Channel
Describes how it delivers it's product or service to it's customers
Business mission
Describes why a business exists and what the business model is supposed to accomplish
True
Economic factors, social factors, technological advances, and political action/ regulatory changes are the most important trends to follow in trying to identify opportunities
False
Evaluation is the stage of the creative process during which the idea is put into it's final form
True
Feasibility analysis is the process of determining if a business idea is viable
False
Incubation is the stage in the creative process during which an idea is subjected to scrutiny and analyzed for its viability
Resources
Inputs a firm uses to produce, sell, distribute, and service a product or service.
Key partners
Key partnerships your business relies on
fragemented industry
Large number of firms of approximately equal size
False
Many new businesses are successful by taking advantage of fads
Cost structure
Most important cost incurred to support a business model
Strategies for Global industry
Multi domestic and global
Emerging industry
New industry where standard operating procedures have not been developed
True
Opportunity recognition may be an innate skill or cognitive process
True
The 4 forms of feasibility analysis include: product service, Industry/target, organizational, and financial
True
Product/service feasibility analysis is an assessment of the overall appeal of the product or service being proposed
Product production
Section focuses on how a firm's product or service is produced
True
Several studies have shown that prior experience in an industry helps entrepreneurs recognize business opportunities
Core competencies
Specific factor or capability that supports a firms business model and sets it apart from competitors
Operations
The day to day heartbeat of a firm.
True
The temptation to show a concept statement to friends and family members should be avoided because they are predisposed to give positive feedback
False
The two components to product/service feasibility analysis are product desirability and total start up funds needed
Revenue streams
The ways a business makes it's money
True
Three ways to identify an opportunity include observing trends , solving a problem, and finding gaps in the marketplace
Target Market
Unique smaller market within a larger market. The market which your company competes
Basis of differentation
What separates it from the competition. It's is what causes customers to pick one company over another
Financing or funding
Will describe how a business will finance it's business model
barrier to entry
a condition that creates a disincentive for a new firm to enter an industry
3types of strategies for Declining Industry's
leadership, niche, and cost reduction