ENT 5216 Exam 1

-fit within the biz -alignment within the biz

Implementing a strategy is about:

-biz model -customer problem -product offering

Important elements of a one-page pitch:

guide for the running of the business

Unlike the biz plan of a venture capital-backed biz, the ent biz plan is developed as a _____.

Economic Gardening

program in US that helps new ent bizzes in an area

-provides larger firms flexibility -refers to an excess of resources -is not a characteristic of typical ent ventures

organizational slack

-race -gender -religion -parents

Research suggests that successful new biz ideas are NOT determined by your:

50

The EU considers any biz with fewer than ___ employees to be a small biz.

mission, strategy

The _____ is the foundation on which the firm's ___ is built.

-pricing of products -quality and availability of parking -facility's square footage

cost factors that play into finances of a business

one-page pitch

document that lays out the crucial info about a new business idea and provides an effective starting point for every potential employee, investor, or supplier

1. the firm's mission statement is employed to specify where the firm is to compete and how 2. detailed strategic plan is laid out specifying a series of resource and capabilities 3. strategy meets the criterion of being defendable for some length of time 4. strategy needs to be constantly reevaluated

four logical steps in developing the firm's strategy

business plan for new ent biz

this is developed to serve as a guide to manage the biz, provide potential investors with critical info, and to provide a self-evaluation

brief explanation of the biz idea

Along with the biz idea, what else should be included in the 1st column of the gap analysis chart?

metric

A ___ is a measure used to evaluate whether a person or firm is meeting its goals

15-25

A business plan for a small business typically runs ____ pages long.

-memorable -clear -widely known -succinct

A company is more likely to make money if the mission statement is ___.

capabilities

A firm's ___ are resources that combine to allow the firm to perform better than its competitors

Gross National Product

According to the world bank, the presence of ent small and medium sized business enterprises is one of the strongest factors in the growth on any nation's ______.

managerial theory that believes individuals act to maximize their own benefit

Agency theory

desire to own and operate a biz

First step of ent

-running of biz -funding of biz -design of biz

Founders of a biz need to be involved in:

-to be a guide to managing the biz -to provide self-evaluation -to provide investors with necessary info

Goals of the biz plan for a new ent biz?

Ent Bizzes

Great Depression was harder on more mature or ent bizzes?

by analyzing whether the competitors of the firm would actually try to match the firm

How is the durability of a new firm's unique resource or capability evaluated by the ent?

strategy

Implementing a ____ is about fit and alignment within the biz.

25-45

Venture capital backed biz plan typically runs from ____ pages long.

-knowledge widely dispersed -no one person is critical -greater excess resources

What are characteristics of large businesses?

-dominated the industrial sectors -responsible for some of the great abuses in biz -took advantage of the economies of scale

What are some facts about robber barons?

-number of employees will not be expected to grow over 100 people -start-up is self-funded or closely funded -operation is designed in the image of the founder

What are the characteristics of entrepreneurial firms?

-develop ability to generate consistent and growing sales -sustainable operating profit margin -sufficient resources to get the business to a point where it is self-funding

What are the critical elements that an entrepreneur must solve for success?

-generally dependent on a single person or a few individuals -they have limited flexibility in responding to emergency issues like hiring replacements if the company loses key individuals

What is true about ent bizzes?

the structure of management is designed to take advantage of the skills of the founder or founders of a firm

What is true of ent firms?

they are often formed as high-tech ventures consisting of unique characteristics

What is true of venture capital start-ups?

-cash flow -competitive adv -management team

What needs to be evaluated in order to provide potential investors with the critical info required when developing a new biz plan for a new ent biz?

late 70s to early 80s

What time period did the US see a decline in large multi-national firms and a rise of new opportunities for ent bizzes?

1930s during the Great Depression

When did a big industrial concentration take place?

1880s

When was the initial development of the large industrial base of the US?

Small Business Act

Which act officially organized the US Small Biz Administration?

-provide office machines and basic furniture -provide common receptionists to new bizzes -provide many critical services to new bizzes

incubator facts

exit barrier

investments in bizzes that are not easily recovered are considered ____.

exit barriers

keeps an ent from leaving a biz he or she invested in

short

mission statement should be:

Harvest Plan

plan to exit the business that allows the investors to take advantage of growth

substitute

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

1. develop list of biz's assets and capabilities 2. split the list into standard and unique assets 3. evaluate competitiveness of unique resources or capabilities

sustainable competitive advantage

-prior experience -risk tolerance -personality orientation

What are components of the ent orientation concept?

categories of analysis

What is included in the second column of the chart used in the gap analysis?

Robber Barons

Who is associated not only with the success of the industrial base but also with the great abuses in biz?

-change led to a loss of traditional customer base -caused the company to lose its unique positioning in the market

Why did City Circuit's attempt to change direction fail?

Legitimacy

People in an ent's network can help by providing ____ to a new biz.

-appropriate -direct -simple

Key ability to communicate a mission easily is that the statement be:

extensive written procedures

Large businesses often have ____

business owner

The most important single factor in the biz's success?

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

The primary purpose of the NAICS is to help ____.

Science

The process of forming and managing a new entrepreneurial business in a clear, sequential manner that is rich in practical application and grounded in research is the _____ part of ent biz development.

-appear to be an opportunity -match the founders' skills

The process of generating ideas will result in a list of 3-5 biz ideas that:

99%

The repayment rate on micro-loans is typically:

focused

The success of entrepreneurial businesses occurs because they are simply more _____ than their larger counter parts.

Entrepreneurs

Civic leaders often look to ___ as a means to promote economic strength for a community, region, or state

consumer's response to price changes

Elasticity of demand is the _____.

their view of the world

Ent's prior experience plays a role in new biz creation through ____.

-mission will impact the market in which the firm will compete -mission may impact the major ways in which the firm will compete -mission may impact how broad a geographic range the firm will serve

Examples of the impact of the mission statement:

organizational slack

Excess resources in an organization that allow for redundancy and the quick deployment of personnel in crisis.

-lack of promotion opportunities -inflexibility of large corporations in dealing with the needs of an individual's family and children

Reasons individuals can become frustrated with working in a large corp?

downsizing, growing

Recent trends indicate that larger corporations have been ___, while entrepreneurial businesses have been ____ rapidly.

False

Robber barons were responsible for the collapse of small bizzes in the 1880s. T or F

-product offering -customer problem -biz model

Should be on your one-page pitch:

-generating new employment with ent ventures -providing a basis to the area's economic vitality -providing a growing tax revenue base

Silicon Valley and Boston's 128 corridor

-one's personal skill sets -gap or need not being effectively met in the current market -ability to fill market gaps with the opportunity available

Steps that are important to the development of a quality biz:

small and medium sized

The World Bank estimates that one of the strongest factors in the growth of any nation's GNP is the presence of entrepreneurial ______ enterprises.

500

US Gov considers any biz with less than __ employees a small biz

mission statement

brief statement that summarizes how and where the firm will compete

develop an effective sales generation model

Along with being properly financed and developing sustainable profit margins, in order to be successful, ents must:

-substitute is evaluated based on its similarity to the ent's unique resource and capability -substitute satisfies the same basic need that is satisfied by his or her product or service

Characteristics of a substitute that an ent should evaluate for every resource and capability of his or her biz

-keep it applicable -be specific -keep it simple -keep it short

Characteristics to create a mission statement:

-managers are considered agents -agents often maximize their own benefit -owners always act to maximize the value of the biz

agency theory

-either start or grow quickly to employ a relatively large number of employees -have a developed organizational structure -formed with a harvest plan in place

What are characteristics of a venture capital-backed firm?

-knowledge is widely dispersed throughout the biz -no one person is critical to the biz's survival -have greater excess resources

What are characteristics of large bizzes?

-must be concise -must describe what the company does or does not do -must be understood by all the biz's stakeholders

What are important features of the mission statement?

-what specific skills were required of the hobby -what is it about the hobby that is exciting? -what products/services were used in these hobbies?

What are questions potential biz owners should ask themselves about hobbies

-working on the home -tracing the family history -maintaining family property -cooking with family members

What are some family experiences that build knowledge and can grow into a new biz opportunity?

-requires minimal research -reasonably quick analysis

What are the characteristics of a gap analysis methodology for a new venture?

-start-up is self funded or closely funded -operation is designed in the image of the founder -number of employees will not be expected to grow beyond 100

What descriptions are characteristics of an ent firm?

-the ent might not enjoy the hobby as much as when they began -the ent develops a following of fellow enthusiasts -the ent will stick with the biz through lean times

What happens when a biz is based on a founder's hobby?

-cities with base closings experienced higher income growth -cities with base closings offered tax breaks and programs to support

What happens when a military base closes in an area?

-biz idea -brief explanation of the idea

What is included in the first column of the chart used in gap analysis?

-tax incentives -support classes -financing for the venture

What is provided by the Economic Gardening program in the US?

-skill set -competitive advantage -understanding of an industry

What is synergy a combination of?

analyzing the skill set of the potential founders

What is the suggested starting point for generating biz ideas?

-new biz rarely perform better than competitors in all areas -a comp adv must provide the opportunity to be more profitable than competitors -new biz need to develop one or several fundamental characteristics with which it exceeds the industry's performance

What is true about a biz's com adv?

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

What is true about competitive maps?

-these factors are central to developing a comp adv -these factors provide a means for the biz to differentiate itself from competitors -ents need to focus their resources on these factors

What is true about unusual or unique competitive factors?

-high inventory needs -an ent team with a low asset base -rapid expansion costs -high development costs

What would be classified as a threat to operational financing?