Small Business Management Ch 7

-Supra strategies

Classic benefit combination strategies that are designed to work where there are many small business in an industry, along with a few larger firms are called?

-Strategic -Tactical

Competitive responses requiring a major commitment of resources is __________________ actions, while responses with low resource commitment are ______________ actions

Scope

A characteristic of a market that describes the geographic range covered by the market. From local to global

Scale

A characteristic of a market that describes the size of the market. A mass market or niche market

Perceptual map

A graphic display which positions products, services, brands, or companies according to their scores on important strategic dimensions

Blue ocean strategy

A strategy based on creating a new product or service which has no competitors

Focus strategy

A strategy that targets a portion of the market, called a segment or niche

Shake out

A type of life cycle stage following a boom or growth in which there is a rapid decrease in the number of firms in the industry

Parallel competition

An imitative business that competes locally with others in the same industry

Entry wedge

An opportunity that pops up that makes it possible for a new business to gain a foothold in a market

Retrenchment

An organizational life cycle stage in which established firms must find new approaches to improve the business and its chances for survival

Incremental innovation

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

Gross profit

Funds left over after deducting cost of goods sold

Net profit

Funds left over after deducting operating expenses

Magic number

The post-tax income the entrepreneur personally seeks from business

-Supply shortages -Unutilized resources -Customer contracting -Second sourcing -Market relinquishment -Favored purchase -Government rules

What are seven different entry wedges (opportunities)

-What do you expect out of business? -What is your product or service idea? -How innovative or imitative will you be? -Who do you plan to sell to? -Where do you plan to sell?

What are some initial key decisions that need to be made about the goals for your business?

-Craftsmanship -Customization -Supersupport -Serving the underserved -Elite -Single-mindedness -Comprehensiveness -Formula facilities -Bare bones or no-frills -Cutting out the intermediaries -Tightly managed decentralization

What are some small business supra strategies?

-Classic imitator (focus, differentiation) -Internet imitator (focus, differentiation or cost) -Classic cost leader (focus, costs) -Classic innovator (focus, differentiation)

What are some typical strategies for small business start-ups?

-Introduction -Growth -Shake out -Maturity -Decline -Death or retrenchment

What are the different stages in the industry life cycle in order from start to finish?

-Major goals -Types of customers you seek and what you offer -The stage and trend of your industry -The specific generic and supra strategies you choose to pursue

What are the four key decisions that help build a small business strategy?

-Differentiation -Cost -Focus

What are the generic strategies widely used for all types of business'?

-Loyal -Regular -Fanatics

What are three different types of customers?

80% of business comes from 20% of customers

What is the 80/20 rule?