MGT 492 UKY Rainey

The business model includes all of the following components EXCEPT

Business culture

After you have generated ideas for needs or problems and you want to narrow the ideas down to the best, what are the most effective approaches to judging ideas?

- Identify the positives of an idea first - Use predefined criteria to establish standards for selection - Don't rush to a conclusion

Design thinking is a:

- Process to gain empathy with customers - Process that involves experimentation - Technique that requires collaboration

When you are trying to generate ideas for problems or solutions in a group, which of the following should you do?

- You should capture even the most outlandish ideas - After brainstorming, combine ideas to create new ideas

Which of the following statements describes a business model?

-A blueprint for running a business. -A means to create and capture value. -The decisions entrepreneurs make to earn a profit.

Which one of the following statements about innovation and commercialization is most accurate?

Innovation takes a novel idea and turns it into a product or service, while commercialization is the business process that moves an innovation from the lab to the market.

Which of the following are new trends as of 2018?

-Artificial intelligence -Digital twins

Elements of Design Thinking

-Creativity/ Inspiration -Opportunity/ Ideation -Innovation/ Implementation

Why is product design critical?

-Design determines features and performance. -determines cost and price. -Design determines reliability.

In addition to testing your hypotheses about your business model, when you conduct feasibility analysis, you also want to answer three questions about the success factors for your business. What are they?

-Do the capital requirements to start and operate to a positive cash flow make sense? -Can I put together the right founding team to execute my concept? -Is there a customer and market of sufficient size to make the concept viable?

The entrepreneurial process provides many benefits to the economy. Which of the following are two of those benefits?

-Entrepreneurs create new industries. -Technological change spurs economic growth.

The following statements ARE entrepreneurial myths:

-If you're going to be successful, you need a business plan. -The more risk you take, the bigger the reward you'll receive. -You need a lot of cash to start a business.

Which of the following are reasons for business failure?

-Industry architecture -No way to capture value -Technical problems -Lack of resources

Which of the following are reasons entrepreneurs choose the startup process rather than selling a product or service to an existing company?

-Investment capital is plentiful. -Your opportunity is new to the world. -The job market is uncertain.

What are some ways you can innovate with your business model?

-Raise the quality of your product above industry standards -Eliminate something that has traditionally been done in your industry. -Find the white spaces in your industry.

What distinguishes an entrepreneurial venture from a small business?

-The business has a goal to grow -The business creates new value.

Industry Life Cycle Stages

1. emerging companies 2. growing 3. established 4. distribution 5. new life

Which of the following statements is true?

Many large businesses have started as home-based businesses.

Amazon took its very successful fulfillment process from books to selling household goods and apparel. What is this an example of?

Taking an existing model into new areas.

Which of the following is NOT a critical skill that an entrepreneur needs to acquire to be successful?

The ability to read quickly.

Which of the following is NOT an example of product development tradeoffs?

You are building a boating app for an iPhone.

Design Thinking

a process and approach that looks at the world from the customer's perspective.

No matter which source you consult, the failure rate for new consumer products is:

between 70% and 90%

Verification

bringing the idea to an outcome.

-A dating site geared toward divorced parents in their 40s is a: -A company that is testing a new vaccine and is in clinical trials with humans is:

entrepreneurial venture

Creation Theory

entrepreneurs create opportunities via their actions, reactions, and experiments around new products, services, and business models.

True or False? A minimum viable product contains all the functionality of a final product; it just doesn't look as finished.

false

True or False? Before you can identify a problem that customers have, you need to have a sense of what your solution might be.

false

True or False? Business models take a long time to develop and should not be changed.

false

True or False? Businesses that do not manufacture products do not need to do prototypes.

false

Entrepreneurship is a way of thinking that is opportunity-focused, risk taking, _____, and growth oriented.

innovative

Incubation

letting the problem lie in the subconscious for a time.

Preparation

looking at a problem from a variety of perspectives.

Discovery Theory

sees opportunity arising from shifts in external factors in the market or industry, such as regulation, technological changes, and changes in customer preferences.

-An Italian family restaurant in Boston is a: -A dentist's office serving the local community is a:

small business

Because starting any business requires a tremendous amount of time, effort, and resources, it makes sense to:

start a business that has the potential to grow large and give a good return on investment.

Illumination

the discovery of a solution.

The decade of the 1970s was characterized by:

the technology revolution, international competition, and macroeconomic turmoil.

True or False? In general, you should not outsource both the design and development of your product to the same firm.

true

True or False? The prototype doesn't always resemble the final product in appearance.

true

True or False? To validate a customer, you need determine whether you have the right customer and the right solution.

true