Chapter 4- Entrepreneurship

Effective industry analysis starts by identify every potential_______ within a defined distance of the new business's location

competitor

an effective industry analysis starts by identifying every potential ________within a defined distance of the new business location

competitor

elasticity of demand is the

consumer's response to price changes

___________ a theoretical approach and practical methodilogy that examines business fucnitions in terms of whether a product or service meets the cirterai sof being rare, duricable, nonsubstitutable, and valuable simultaneously.

resource based

conducing a ________ analysis will help entrepuers better understand what create the buisinesses advantages

resource based

the normal or ordinary parts of a business?

they must be done and done well there is little reason to do any of the normal parts of the business better than the average in the industry

The ____ step of conducting an external analysis is determning the industry in which the new business wil compete

first

Entrepreneur should ______When defining their business industry

specific

which of the following statesments are true about developing a competitive map?

-it should be developed by the entrepreneur -its purpose is to better understand competiors and their capabililies - its a step in external analysis

conducting a resouce based analysis will help entrepreneurs ________

better understanding what creates the business advantage

products or services that are considered rare have qualities that competitors find ______

difficult to obtain

Trends shape the ________ term prospects of the given industry

long

products that are not ________ will not provide the business with returns in excess of what competitors earn from their sale

valuable

Entrepreneur should understand ___________

that the geographic radius that customers will travel is not the same for all businesses

The primary purpose of the NAICS code is to help ______

the government gather, track, and publish data on specific industries

In developing a competitive map, entrepreneurs should

Determine key competitive factors they wish to understand

NAICS an acronym of?

North american industry classification system

Substitution for playing soccer?

Playing tennis, handball, boating

resource based analysis examines which of the following critria that products or service must meet?

Rare Durable Valuable

a reasonable distance is determened by _________

The entrepreneur

_______ refers to the ability to gain extraordinary returns for the business product or service

value

a competitive advantage creates

value

data that are aggreagated on a national level may have limited value to entrepreneurs_________

who are interested only in customers from their local area

most small business that directly compete with well established firms operate at a ______

cost disadvantage and must compete on some other basis

a ________ keeps an entrepreneur from leaving a business he or she invested in

exit barrier

knowing ones customer is_____for the effective use of marketing dollars

important

a ___________ is defines as those direct competitors that sell similar products or services within the specified geographic radius that customers are willing to travel

industry

associations exist to support and promote their _______

industry

When starts out as a competitive advange for one company may become a _______

Standard practice within that industry

_______________ products perform a similar function or achieve the same result, but are not a precise imitation

Substitute

an entrepreneur should start a business based on________

an opportunity

which statement about fragmented markets is true ?

most entrepreneurial businesses compete in a fragmented market

when entrepreneurs can easily exit an industry, the intenesity of industry competition tends to _________

decrease and the threat posed by new entrants is reduced

A product or service that is _______- provides the company with the ability to hold onto the competitive advantage

durable

Entrepreneurs should define the industry broadly enough to be inclusive of all potential

competitors

Identify the critical steps in examining the nature of the external environment of a business

- research the industry in which one expects to do business - draw a set of competitive maps - research the competitors within the industry that one expects to do business

which of the following statements regarding exact or direct competitors are correct

-Direct competitors can be easily found in the local telephone book -often, direct competitors are geographically local -identifying direct competitors is easier when entrepreneurs are clear regarding their customers needs

Entrepreneur should define the industry broadly enough to be inclusive of all potential

competitors

what is the ket to effective opportunity recognition by an entrepreneur

a detailed undering standing of the external environment

a common cause of new business failure is ______ on its competitive advantage

a lack of focus

a competitive advantage can come from which of the following examples

a product that is protected by a patent a location that is highly sought after by other businesses access to ditrubution channels that competitors cannot gain access to

determing a reasonable distance that customers will be willing to travel is more of a _____ than a _________.

art; science

industry ___________ exist for nearly any industry and often exist at the state, national and even international level

associations

exact competitors are _______

business that directly compete for the same ideal customers

a _______ map is an analytical tool that organizes information about direct competitors on all points of competition

competitive

a company's ____________ is made up of those things that the company does uniquely well or better that anu

competitive advantage

________ markets are those markets that have no clear dominant competitors and are made up of a large number of similar sized companies

fragmented

many companies that are not potentail competitors are willing to help industy outsiders improve their operations by sharing their ________

knowledge

understanding the business competitivie advantages is the _______step in an external analysis

last

while defining a radius from which one believes to draw majority of one's customers, one should __________

make this distance reasonable

Relatively ________ is a determination about whether a service or a prodcut may be easily substituted by something else that a competitor could be provide

nonsubstituable

Entrepreneur can create a lsit of competitor that customers can find ____when there is no phyiscal restriction to the business operations

on the internet electronically

when products or services are rare, durable, and realtivley nonsubtitubable, and valuable, they can develop a ______________

competitive advantage

which of the following are the three elements that describe how durabilt helps businesses hold onto competitive advantage?

-The desire of competitive to compete with the business using the same potential resource of capability -how long it would take for a competitor to imatie the product/service or to wash away the business advangte - the length of time that business might be able to gain and hold a competitive advantage

Which of the following statements regarding a business competitive advantage are true?

-a competitive adavnete must provide the opportunity to be more profitable that competitors -new business need to develop one or several characteristic with which its is exceeds the industry performance -new businesses rarely perform better than competitors in all areas

Which of the following are examples of sources where an opportuntity may come from?

-a personal frustation -a new tech. advancement -a vacancy at the perfect location for a business

Reasons why entrepreneurs should develop their own competitive map?

-will help in developing insights regarding positioning, pricing, and even layout. -it is less expensive - it provides the entrepreneur with an understanding of what is right and wrong with each competitor

_________ competitive factors describe areas of a business that provides an opportunity for it to gain value over and aboe ordniary returns in the industryu

Unusual or unique

are potential sources of a business competitive advantages

-a unique structural business attribute - an activity that the business does best

which statements about an industry are true?

-business in the same industry sell similar products -it is defined as business within a specified geographic radius -customers share similar buying cretia, such as price

which of the developing competitive maps are true

-one must take a customers perspective from a series of visits - entrepreneurs should visit all potential competitors -list of criteria that they wish to take away from their visits to customers

Which of the following statements about unsial or unique competitive factors are correct?

-these factors are central to developing a competitive adavnge -entrepreneur need to focus their resources on these factors -these factors provide a means for the business to differantiate itself from competitors

areas provide a business with a competitive advantage

-those that allow the business to charge a higher -those that draw a new customer when the price is the same as competitors - those that help the business create a lower cost structure