MGMT 475 Siue Exam 1
Decisions needed to establish strategic planning
1. Major goals for your firm 2. Types of customers you seek 3. Stage and trend of your industry 4. Specific generic and Supra strategies you pursue
Myths about small biz
1. Not enough financing 2. Recession 3. You need to make something 4. If you fail, you can't try again 5. 90% of all small biz fail within 2 years
7 strategies of entrepreneurial way
1. Persevere 2. Scale back 3. Bird in the hand 4. Pivot 5. Take it on the road 6. Ask for help 7. Plan to earn
5 initial key goal decisions
1. What do you expect out of biz? 2. What is your product? 3. How imitative or innovative will you be? 4. Who do you plan to sell to? 5. Where do you plan to sell?
Expert biz profess.
A situation that occurs when all the major functions of a firm are conducted according to the standard business practices
Blue ocean strategy
A strategy based on creating a new product or service which has no competitors
Set asides
Government contracting funds that are saved for particular kinds of firms such as small biz, minority owned, and women owned
Pilot test
A preliminary run a business with the goal of assessing how well the overall Approach works
Rewards of small biz
Flexibility Income Growth
Creation
Focus on making new entities
Gross profit
Funds left over after deducting COGS
Standard business practice
A business action that has been widely adopted within an industry
License
A legal agreement granting you rights to use a particular piece of intellectual property
Efficiency driven economy
A nation where industrialization is becoming the major force providing jobs and where minimizing costs while maximizing productivity is a major goal
Innovation driven economy (US)
A nation where the major force for jobs come from high value added production based on new ideas and technologies
Factor driven economy
A nation where the major forces for jobs come from farming or industries like forestry, mining or oil production
Cognition
A persons way of perceiving about his or her experience
Industry specific knowledge
Activists and skills specific to businesses in a particular industry
Key biz functions
Activities common to all businesses such as sales, operations, accounting and Human Resources
Net profit
Amount of money left after operating expenses are deducted from the business
Certification
An examination based acknowledgement that the firm is owned and operated as specified
Goal
An intended outcome for your business
Entry wedge
An opportunity that makes it possible for a new business to gain a foothold in a market
Growth stage
And industry lifecycle stage in which the customer purchases increase at a dramatic rate
Incremental innovation
And overall approach in which a firm patterns itself on other firms with the exception of one or two key areas
Imitative strategy (Innovations small biz develops)
And overall strategic approach in which the entrepreneur does more or less what others are already doing
Customer focus
Being in tune with the market
Four key ideas to starting a small biz
Believe that you can do this Planning + action=success Help helps Do well. Do good
Brie
Boundary Resources Intention Exchange
Specialized biz profess.
Businesses have founders who are passionate about one or two of the key business functions
Opportunity recognition
Capturing new ideas that lead to business opportunities. this process often involves creative thinking that leads to discovery of new and useful ideas
Industry dynamics
Changes in competitors sales and profits in an industry overtime
Scale
Characteristic of a market that describes the size of the market a mass market or niche market
Strategic actions
Competitive responses requiring major commitment of resources
Tactical actions
Competitive responses with low resource requirements
CSI entrepreneurship
Corporate, social and independent
Scope
Defines the geographic range covered by the market
Comprehensive planners
Develop long term plans for all aspects of business
Critical point planners
Develop plans focused on the most important parts of the business
Sources for biz ideas
Hobby Work experience Similar business Serendipity Family and friends Education Idea sites
5 pitfalls of innovation
IDing wrong problem Judging ideas too quickly Stopping with first good idea Failing to get bandits on train Obeying rules that don't exist
Industry life cycle
Intro Growth Shakeout Maturity Decline Death or retrenchment
Perseverance
Learned optimism; The ability to stick with some activity even when it takes a long time and the outcome is not known
Overall growth strategies
Lifestyle 25k Traditional 25-100k High performing 100k-1mil High growth venture-25% growth a year
Efficiency
Most work with fewest resources
5 Ps of Entrepreneurial Behavior
Passion Perseverance Promotion/ prevention Planning style Professionalization
Reactive planners
Passive approach. Wait for cues from environment to determine what actions to take
Franchise
Prepackaged business bought or rented from a company
Innovativeness
Refers to how important a Role new ideas, products services processes or markets play in an organization
Radical innovations
Rejecting existing ideas and presenting a way to do things differently
Determination competencies
Skills identified with the energy and focus needed to bring a business into exist
Opportunity competencies
Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business
Entrepreneurial alertness
Special set of observational skills that help entrepreneurs identify good opportunities the ability to notice things that have been overlooked
Opportunistic
Start with a goal instead of a plan and look for opportunities to achieve it
Scamper (cues that trigger ideas for your business)
Substitute Combine Adapt Magnify Put to other uses Eliminate Rearrange
Incremental strategy (innovations small biz develops)
Taking an idea and offering a way to do something slightly better than it is presently done
Resource competencies
The ability of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location and expertise
Mindshare
The degree of attention your market pays to your idea
Professionalization
The extent to which a firm meets or exceeds the standard business practices for its industry
Feasability
The extent to which an idea is visible and realistic and the extent to which you are aware of internal and extra no industry read forces that could affect your biz
Introduction stage
The lifecycle stage in which the product is being invented and developed
Conversion rate
The measure of how many visitors from your website actually make a purchase from you
Competitive advantage
The particular way a firm implements customer benefits that keeps the firm ahead of other firms in the industry
Magic number
The post tax income the entrepreneur personally seeks from the business
Pure innovation
The process of creating new products which results in a previously unseen products
Creative destruction
The way that newly created goods services or firms can hurt existing goods services or firms
Generic strategies
Three widely applicable classic strategies for business of all types differentiation, cost, and focus
Minimalized biz profess.
entrepreneur does nearly everything in the simplest way possible