Video Cases

Working ON the business and not just IN the business is best described as:

A mindset that focuses on building a scalable business with high growth potential as opposed to performing the actual work that the business does each day.

The most important lesson Marcy learned about her business was:

Accurate and complete cost accounting is critical to success.

_______________________ is the process of investigating an investment thoroughly and may include background checks, credit checks, employment history, and financial history.

Due diligence

Which of the following is the most accurate statement about doing business online?

E-commerce models may have advantages over physical stores and should be considered when launching a business.

Which of the following statements is false?

Succession issues tend to apply only to family run businesses.

The best way to determine the optimal price for a product is to:

Systematically experiment with pricing to see what actually sells best.

According to the video, producers of cocoa have a hard time negotiating with chocolate manufacturers because:

The barriers to entry are high in chocolate manufacturing—there are only about 12 producers—making it difficult for farmers to negotiate on price.

Judging from this video, successful use of social media in a small business includes:

-Content that is valuable to the customer. -Information that helps improve the customer's experience. -Messages that motivate the customer to use the product more often and more effectively. All of the above.------

According to the video, being global involves more than just selling and/or manufacturing in foreign locations. It also includes "thinking" globally. Which of the following two are NOT examples of thinking globally?

-Trying to homogenize the different cultures that make up the global workforce. -Selecting manufacturing sites based solely on cost.

Based on what you have seen in this video, which of the following is the most accurate statement about growing a large entrepreneurial business?

A basic system must be designed, refined, and replicated over and over.

What strategic pivot did Theo Chocolate make that increased their sales volume substantially?

After establishing themselves solidly as a high-quality specialty chocolate producer, they responded to customer requests for more mundane offerings like mint and orange flavors.

In this context, a "clean" deal means:

All equity investors are accredited and the legal form of organization makes it easy to bring in investors.

According to Heidi, franchise culture is:

All of the above

According to Heidi, the best way to keep franchisees aligned with the plan while still capitalizing on their innovative ideas is:

An open door policy

In adding value to her bags by decorating them, Marcy:

Began selling a premium product that required a higher price be set.

The best way to describe the difference between a "build-up" and a "tear-down" leveraged buy-out (LBO) is:

Build-up LBOs are designed to make the company more attractive to buyers by bundling it with other companies; tear-down LBOs focus on splitting the company into pieces for sale.

Which of the following statements is false?

Business planning is a useless exercise because so many unexpected things happen.

Roxie wanted Tellie to plan for expansion. Judging from the text's chapter and this video, what was she probably thinking?

Businesses that remain small do not provide the kinds of returns that investors need to warrant the risk. AND By planning to open other similar stores, Tellie would have to make sure the first was run well and could be handed off to someone else to run day-to-day operations.

The phrase Goldman uses to describe developing access to markets not traditionally associated with "healthy" foods as:

Democratizing organics

Peter Metcalf attributes the company's success largely to its unique culture. What elements of that culture best explain how it has functioned so well in a global environment?

Employees the world over are united by their love of outdoor sports. The teamwork, mutual trust, and sense of adventure required in outdoor activities is inculcated in employees irrespective of their home culture.

Uncle Jake was a/n ______________ investor, meaning that he put money into the business in exchange for part ownership.

Equity

The best summary of the theme of this video is:

Financial planning is essential to the success of a new business.

In order to meet company goals, especially with friends and family who are involved with the company, Heidi has to:

Focus on managing by the numbers and be firm when people don't meet goals, no matter who they are.

Which of the following statements best describes the relationship between Camp BowWow corporate and the franchisees?

Franchise guidelines are followed strictly, but individual owners are encouraged to be innovative as well.

A sensible strategy for succession planning may include:

Getting outside help from professionals.

Paulette's decision not to open a retail store was driven by which of the following considerations?

Her margins were too thin if she had the dolls manufactured in the U.S.

Which of the following is the most important element of family succession planning?

Honest and forthright communication among family members and with non-family stakeholders.

The strategy that the founders of Honest Tea used to get started is best described as:

Identifying and attacking a niche

Thad's approach to training his employees to sell is best described as:

Inclusive and encouraging.

Which of the following mistakes did the most damage to Rosetta's business?

Increasing the quality without increasing the price.

Heidi, the found of Camp Bow Wow, started a franchise instead of only having one location in part because:

It allowed her to work at realizing her vision and building the brand rather than the day-to-day operations of the business.

The best way to summarize what Paulette learned about location as she started her own business is:

Location is not just about geography—a business can be "located" online.

Though Theo Chocolate's embrace of larger markets was a turning point, there was a downside as well. Which of the following best describes it?

Now they were in a tougher market where competitors fight brutally for shelf space.

The culture at Honest Tea favors which kind of employee?

One who can thrive in an open, entrepreneurial environment.

The best way to summarize the ideas in this video is:

Planning for succession should include an objective, realistic look at the real capabilities of next-generation family members.

As Honest Tea grew, other companies changed their marketing strategies in response. The result was a shift in the types of products sold to kids. What specific shift occurred?

Pouch drinks offered by competitors dropped from an average of 100 calories per pouch to between 75 and 80 calories.

The central lesson to be taken from this video is:

Promoting a small business requires active engagement with prospective customers.

The fair trade practices used by Theo Chocolate help raise the price paid to farmers by:

Providing a transparent negotiating system that enables farmers to increase the quality of their product.

Mike Boyle competes in an industry that thrives on the idea that people won't actually come to work out. Which of the following best describes his approach to selling gym memberships?

Rather than focusing on making more money, he focuses on having more of an impact by working to make sure members show up regularly in order to look and feel better.

The best description of "profit" is:

Revenues minus administrative expenses for a given period of time.

Heidi's dream for Camp BowWow is being realized mostly because:

She brings fresh energy to the brand constantly by adding things for customers like Home Buddies and Behavior Buddies.

The central lesson in this video is:

Small business owners need to understand basic accounting concepts in order to manage their finances well.

Ralph took his first tangible step to becoming an entrepreneur rather than a small business owner when he:

Started considering expansion strategies to teach other people how to fit 3-D molded shoes

Which of the following bestdescribes Black Diamond's capturing of a viable specialty market.

Their highly specialized product required capturing a global market in order to make it viable.

The biggest driver of Theo Chocolate's move toward a broader marketing strategy was:

Their use for the first time of hard marketing data.

Building good customer relationships requires that employees put the customer first. Which of the following best describes Mike's approach to training his employees?

This is the way we do it, and if you think there is a different or better way, let's talk about it.

The strategy that founder Seth Goldman used to get Honest Tea on the shelves alongside larger, established brands was:

To offer something distinctly different rather than trying to "muscle in" to an already packed market space.

Judging from the video, Alfonso's primary motivation as he moves out of the business he founded is:

To provide a way for his loyal employees to benefit from QuickPickle in the coming years.

The lesson that Goldman learned through his experience with the bottling plant was:

To stick with what it did best—making tea and promoting the brand.

Cash flow is best described as:

Total cash revenues minus total cash expenses per unit time.

Startup expenses would NOT include (choose two)

Variable expenses incurred during the second year in business. AND Wages paid after a business opens.

Boyle's vision of his business is best described as:

We are not a strength and conditioning business so much as a life-changing business.

Contribution margin is best described as:

What is left over from the sale of one unit after subtracting variable costs.

Which of the following is NOT one of the elements of the "triple bottom line?"

Which of the following is NOT one of the elements of the "triple bottom line?"