ch.10 and ch.11 vocab

Question 1

born global

Answer 1

venture seeking to be a global company from its inception

Question 2

build measure learn loop

Answer 2

change course if necessary, how to persevere, and how to accelerate the expansion of a business

Question 3

business failure

Answer 3

ending a business due to the lack of goal attainment, which can include low levels of revenue and profit, or not meeting investors’ expectations

Question 4

business lifecycle

Answer 4

stages companies go through: birth, growth (or expansion to new markets and products), maturity, decline, death or rebirth

Question 5

early adopters

Answer 5

people who like to try new things and can be found at the onset of the adoption process for a product

Question 6

franchising

Answer 6

form of licensing that allows the business (franchisor) to share its business model to expand through various distributors (franchisees) for a fee

Question 7

Global Entrepreneurship Monitor (GEM)

Answer 7

organization that researches entrepreneurship around the world

Question 8

iterations

Answer 8

small changes to the current version of a product to make it better fit consumer needs

Question 8

innovation accounting

Answer 8

assesses whether the changes made to the product are creating the desired results

Question 9

joint venture

Answer 9

temporary partnership in which two different enterprises combine for the purpose of mutual benefits such as sharing of expenses and to work toward shared goals and the associated potential revenue

Question 10

lean pitch

Answer 10

verbal delivery of an idea or business plan as a request to a group of investors by an entrepreneur

Question 10

lean plan

Answer 10

brief business plan shown to potential investors and employees that is a fast and effective way to set, manage, and evaluate goals and strategies in a business

Question 11

lean startup

Answer 11

methodology entrepreneurs use this method to help them innovate by continuously testing their products and getting feedback from customers in real time

Question 12

licensing

Answer 12

contract in which one enterprise gives permission to another entity to manufacture and sell its products for a royalty

Question 13

mergers and acquisitions

Answer 13

when two companies combine, or one buys the majority stake of the other

Question 14

minimum viable product (MVP)

Answer 14

early version or prototype of a product that may not be polished or compete but that functions well enough that you can begin to market it or test it with potential users

Question 15

pivoting

Answer 15

crucial change done to test a hypothesis regarding the basic product, its growth potential, and business model; if something is not working, then a change or a “pivot” needs to take place

Question 16

strategic alliance

Answer 16

arrangement created by two entities to work on a project by sharing some of their strengths and resources, but not actually creating a new entity as in the case of a joint venture

Question 17

balance sheet

Answer 17

financial statement that summarizes a company’s financial condition according to the accounting equation

Question 18

breakeven point

Answer 18

level of operations that results in exactly enough revenue to cover costs

Question 18

business model

Answer 18

plan for how venture will be funded; how the venture creates value for its stakeholders, including customers; how the venture’s offerings are made and distributed to the end users; and the how income will be generated through this process

Question 19

business model canvas

Answer 19

developed by Osterwalder and Pigneur, used to develop a business model for a venture, including nine blocks that are mapped out to address customer segments, customer relationships, channels, revenue streams, value propositions, key partners, key activities, key resources, and cost structure

Question 19

business model innovation

Answer 19

occurs when an existing business fundamentally changes their business model

Question 20

business plan

Answer 20

formal document that typically describes the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives

Question 21

competitive matrix

Answer 21

shows how and why a startup has a clear if not measurable competitive advantage for relevant features/benefits by weight according to customers, such as price and quality in relation to competitors

Question 22

customer empathy map

Answer 22

portrayal of a target customer, the most promising candidate from a business’ customer segments, which explores the understanding of that person’s condition from their perspective to understand his or her problems and needs

Question 23

disruptive innovation

Answer 23

process that significantly impacts the market by making a product or service more affordable and/or accessible often by smaller companies in an industry

Question 24

executive summary

Answer 24

initial section of a business plan document that summarizes the key elements of the entire plan

Question 25

feasibility analysis

Answer 25

the process of determining if a business idea is viable; includes testing the viability of your product or service, evaluating your management team, assessing the market for you concept, and estimating financial viability

Question 26

financial analysis

Answer 26

forecasts revenue and expenses; projects a financial narrative; and estimates project costs, valuations, and cash flow projections

Question 27

fixed costs

Answer 27

costs that do not change, regardless of the amount of sales

Question 27

lean model canvas

Answer 27

developed by Ash Maurya as a derivation of the original business model canvas; this canvas differs by addressing unfair advantages, problems, solutions, and key metrics rather than customer relationships, key partners, key activities, and key resources

Question 28

go or no go decision

Answer 28

determination to proceed with or abandon a plan or project new idea, process, or product, or a change to an existing product or process

Question 29

market analysis

Answer 29

analysis of the overall interest in the product or service within the industry by its target market

Question 30

projected cash flow

Answer 30

outline of preliminary expenses, operating expenses, and reserves

Question 31

serviceable available market (SAM)

Answer 31

portion of the market that a business can serve based on its product, services, and location

Question 32

social business model canvas

Answer 32

modification of the business model canvas, designed for social entrepreneurship venues; new areas address impact measures around social impacts and its measurement, surplus, beneficiary segments and social and customer value propositions

Question 33

SWOT analysis

Answer 33

strategic analytical tool used to help a potential venture or existing company identify its strengths, weaknesses,
opportunities, and threats related to business competition

Question 34

total available market (TAM)

Answer 34

total perceived demand for a product or service within the marketplace

Question 35

value proposition

Answer 35

summary describing the benefits (value) customers can expect from a particular product or service

Question 36

value proposition canvas

Answer 36

one of the nine blocks on the business model canvas, this additional tool developed by Osterwalder and Pigneur is designed to illustrate a deeper dive into customer understanding and value creation of a business

Question 37

variable costs

Answer 37

costs that fluctuate with the level of revenue