Entrepreneurship - Exam #1

Ace your homework & exams now with Quizwiz!

The particular way a firm implements customer benefits that keeps the firm ahead of other firms in the industry.

Competitive Advantage

Types of Customers?

Corporate Customers, Loyal customers, Local customers, and Passionate customers

refer to the ways by which a firm can keep costs low for the customer

Cost Benefits

The extent to which a product or service is like another.

Degree of Similarity

A 30-second (100 words or less) action-oriented description of a business designed to sell me the idea of the business to another.

Elevator Pitch

The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business or the owner's family.

External Legitimacy

An overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas.

Incremental Innovation

An overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing.

Innovative Strategy

Cost Benefits include:

Lower costs, Scale savings, Scope savings, Learning, and Organizational Practices

The posttax income the entrepreneur personally seeks from the business.

Magic Number

The business term for the population of customers for your product or service.

Market

A customer group that involves large portions of the population.

Mass Market

A paragraph that describes the firm's goals and competitive advantages.

Mission Statement

A narrowly defined segment of the population that is likely to share interests or concerns.

Niche Market

The name given to the formal presentation of a slideshow summarizing your business plan given before the judges or potential investors or partners.

Pitch

The name of a slideshow presentation that summarizes a business or more often a business plan

Pitch Deck

Value benefits include:

Quality, Style, Delivery, Service, Technology, Shopping ease, Personalization, Assurance, Place, Credit, Brand/Reputation, Belonging, and Altruism

Competitive responses requiring a major commitment of resources.

Strategic Actions

Competitive responses with low resource requirements.

Tactical actions

Memorable catchphrase that captures the key idea of a business, its service, product, or customer (also known as a slogan).

Tagline

Refer to what the customer senses in the product or service

Value Benefits

What are the general ideas of the Business Life Cycle?

1) there are multiple stages; 2) the key issues, actions, and lessons at each stage are different from the other stages; and 3) the level of risk the business faces changes from stage to stage

How many levels of professionalization are there?

3

Using low cost or free techniques to minimize your cost of doing business.

Bootstrapping

Which of the following is not one of the 5 skills for managing relations with the environment?

Bootstrapping

Creating a place for your business in space and in people's minds

Boundary ("B" in the BRIE Model)

What is the BRIE Model?

Boundary, Resources, Intention, and Exchange

Smart entrepreneurs check the likelihood for success of their idea through feasibility analyses or customer development processes, repeating these until they have a winning and saleable idea. This is done during the _______ step of the entrepreneurial process.

Check

The _____ of an organization will be a part of its task environment.

Competitors

Entrepreneurs who develop long-range plans for all aspects of the business.

Comprehensive Planners

The measure of how many visitors to your website (or people who click on your online advertisement) are willing to make a commitment to the product or service promoted on the site.

Conversion Rate

Entrepreneurs who develop plans focused on the most important aspect of the business first.

Critical-point Planners

The first stage in the small business life cycle, where the entrepreneur moves from thinking about starting the business to actually starting the business.

Emergence

A special set of observational and thinking skills that help entrepreneurs identify good opportunities; the ability to notice things that have been overlooked, without actually launching a formal search for opportunities, and the motivation to look for opportunities.

Entrepreneurial Alertness

A situation that occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do.

Ethical Dilemma

A system of values that people consider determining whether actions are right or wrong.

Ethics

Making Investments in and sales from the business.

Exchange ("E" in the BRIE Model)

The forces, institutions, and people outside the boundary of the firm.

External Environment

What is the four step process that firms go through in order to be successful? (start-up process)

Feel, Check, Plan, and Do

The owner's to structure life in the way the suits their needs best.

Flexibility Rewards

A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic scale.

General Environment

Entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it.

Opportunistic Planners

Searching and capturing new ideas that lead to business opportunities. This process often involves creative thinking that leads to discovery of new and useful ideas.

Opportunity Recognition

______ refers to a set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done.

Organizational Culture

A intense positive feeling an entrepreneur has toward the business or the idea behind the business.

Passion

What are the 5 P's of Entrepreneurial Behavior?

Passion, Perseverance, Promotion-Prevention Focus, Planning Style, and Professionalization

An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains

Promotion Focus

Entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take.

Reactive Planners

The most typical fourth stage of the small business. It is characterized by relatively stable or slowly rising sales and profits over several years. In a firm that has the takeoff stage following the success stage, the resource maturity stage occurs after takeoff.

Resource Maturity

The things that make up the business , like money products, knowledge, etc.

Resources ("R" in the BRIE Model)

The kind of problem that arises when people have multiple responsibilities, such as a parent and boss, and the different responsibilities make different demands on them.

Role Conflict

Acceptance?

SB-Personal Validation; HGV- External legitimacy

Human Resources?

SB-Personalize; HGV- Professionalize

Grow?

SB-When necessary; HGV-When possible

_______ refers to the size of the market, whereas ______ refers to the geographic range covered by the market.

Scale;scope

Government contracting funds that are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like.

Set-Asides

Which of the following statements is not true of the target customers?

Usually you have one type of target customer

Small businesses are usually:

imitative in nature

The extent to which a firm meets or exceeds the standard business practices for its industry is known as ______.

professionalization

A person's belief in is or her ability to achieve a goal is called:

self-efficacy

Industry analysis is defined as the technique used to:

study the dynamics and trends of an industry

A ______ is a very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm.

vision statement

________ refers to the sum total of the forces outside of an entrepreneur and a firm.

Environment

The process of intergenerational transfer of a business.

Succession

How many ways are there to plan?

5

The sequence or pattern of developmental stages any business goes through during its life span.

Business Life Cycle

The sum of all the forces outside the firm or entrepreneur.

Environment

The second stage of the business life cycle marked by the business being in operation but not yet stable in terms of markets, operations, or finances.

Existence

A situation that occurs when all the major functions of a firm are conducted according to the standard business practices of an industry.

Expert Business Professionalization

A firm in which one family owns a majority stake and is involved in the daily management of the business.

Family Business

The extent to which an idea is viable and realistic and the extent to which you are aware of internal (to your business) and external (industry, market, and regulatory environment) forces that could affect your business.

Feasibility

______ means the extent to which an idea is viable and realistic, and the extent to which you are aware of internal and external forces that could affect your business.

Feasibility

Evaluates the potential of a business opportunity by studying 5 primary areas in depth: the overall business idea, the product/service, the industry and market, financial projections (profitability), and the plan for future action.

Feasibility Study

What people get from facing and beating challenges

Growth rewards

What are the 3 most popular types of rewards for small business owners?

Growth, Flexibility, and Income

Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines.

Habit-based Planners

A firm started with the intent of eventually going public, following the pattern of growth and operations of a big business.

High-Growth Venture

Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources are known as _________.

Key business functions

The belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors.

Legitimacy

The set of risks faced by firms early in their life cycles that comes from a lack of knowledge by the owners about the business they are in and by customers about the new business.

Liability of Newness

The firm that obtains the rights to use a particular piece of intellectual property is referred to as the:

Licensee

A situation that occurs when the entrepreneur does nearly everything in the simplest way possible, rather than the professional way.

Minimalized Business Professionalization

The ability to stick with some activity even when it takes a long time and its outcome is not immediately known.

Perseverance

_____ refers to the preliminary run of a business, sales effort, program, or website with the goal of assessing how well the overall approach works and what problems in might have.

Pilot Test

An entrepreneurs attention to minimizing losses, with a bias toward inaction or protective action to prevent loss.

Prevention focus

The extent to which a firm meets or exceeds the standard business practices for its industry.

Professionalization

Personal control preference?

SB - Retain autonomy; HGV - Involve key others

What's more important?

SB - Sales; HGV - Marketing

When the firm is in trouble?

SB - cut costs; HGV - sell more

External control perference?

SB-Control firm; HGV-Control Market

Delegation Orientation?

SB-Delegation is difficult; HGV- Delegation is essential

Focus?

SB-Efficiency; HGV-Effectiveness

Profits that are available to be used to satisfy the preferences of the owner in how the business is run.

Slack Resources

This stage of the business cycle occurs once the firm is established in its market.

The success stage

A firm intended to provide a living income the owner, and operating in a manner and on a schedule consistent with other firms in the industry and market.

Traditional small business

Small business owners' unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition.

Value Proposition

What does SCAMPER stand for?

substitute, combine, adapt, magnify or modify, put to other uses, eliminate, rearrange

What are the 5 approaches to managing relations with the environment?

Building legitimacy, Developing a social network, Handling a crisis, Achieving sustainability, and Making ethical decisons

A certification awarded to organizations for creating and implementing an environmental management system that meets the requirement of the International Standards Organization.

ISO 14001 Certification

An overall strategic approach in which the entrepreneur does more or less what others are already doing.

Imitative Strategy

The money made by owning one's business.

Income Rewards

On overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas is referred to as ________.

Incremental Innovation

Taking an idea and offering a way to do something slightly better than it does presently.

Incremental Strategy

Demonstrating a determination to get the business going and for it to be successful.

Intention ("I" in the BRIE Model)

The people and groups within the boundary of the firm, including the owners, managers, employees, and board members of the firm.

Internal Environment

a small business primarily intended to provide partial or subsistence financial support for the existing lifestyle of the owner, most often through operations that fit the owner's schedule and way of working.

Lifestyle or Part-time firm

Involves 1-50 people and has its owner managing the business on a day-to-day basis

Small Business

Preferred funding source ?

Small Business - Owner's own money; High-Growth Venture - other people's money

The entrepreneur's set of relationships and contacts with individuals and institutions.

Social Network

A situation that occurs when businesses have founders or owners who are passionate about one or two key business functions, such as sales, operations, accounting, finance, or human resources, and pursues those functions in a professional manner.

Specialized Business Professionalization

A business action that has been widely adopted within an industry or occupation.

Standard Business Practice

_______ is the idea and actions that explain how a firm will make its profits.

Strategy

The third stage of the business life cycle marked by the firm being established in its market, operation, and finances.

Success

This stage occurs after the success stage for a small percentage of businesses. It is characterized by rapid growth (5-10% a month or more). When this growth levels off, the firm enters the resource maturity stage.

Takeoff

A part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest, groups, and the like.

Task Environment

A ______ plan is a document is designed to detail the major characteristics of a firm -- its product or service, its industry, its market, its manager of operating and its outcomes with an emphasis on the firm's present and future.

business

Meta-strategy?

SB-Imitation; HGV-Novelty

What limits growth?

SB-Loss of control; HGV-Market Response

A firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business.

High-performing small business

Funding a business online through the collective involvement of others who provide donations, loans, or investments.

Crowdfunding

2 ways to finance your small business?

Crowdfunding and Bootstrapping


Related study sets

Property Insurance Practice Test Questions

View Set

Organelles-A small structure within a cell that performs a specific job.

View Set

NJ Insurance Prep (Chapter One Reading)

View Set