ch.10 and ch.11 vocab Flashcards
born global
venture seeking to be a global company from its inception
build measure learn loop
change course if necessary, how to persevere, and how to accelerate the expansion of a business
business failure
ending a business due to the lack of goal attainment, which can include low levels of revenue and profit, or not meeting investors’ expectations
business lifecycle
stages companies go through: birth, growth (or expansion to new markets and products), maturity, decline, death or rebirth
early adopters
people who like to try new things and can be found at the onset of the adoption process for a product
franchising
form of licensing that allows the business (franchisor) to share its business model to expand through various distributors (franchisees) for a fee
Global Entrepreneurship Monitor (GEM)
organization that researches entrepreneurship around the world
iterations
small changes to the current version of a product to make it better fit consumer needs
innovation accounting
assesses whether the changes made to the product are creating the desired results
joint venture
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
lean pitch
verbal delivery of an idea or business plan as a request to a group of investors by an entrepreneur
lean plan
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
lean startup
methodology entrepreneurs use this method to help them innovate by continuously testing their products and getting feedback from customers in real time
licensing
contract in which one enterprise gives permission to another entity to manufacture and sell its products for a royalty
mergers and acquisitions
when two companies combine, or one buys the majority stake of the other
minimum viable product (MVP)
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
pivoting
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
strategic alliance
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
balance sheet
financial statement that summarizes a company’s financial condition according to the accounting equation
breakeven point
level of operations that results in exactly enough revenue to cover costs
business model
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
business model canvas
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
business model innovation
occurs when an existing business fundamentally changes their business model
business plan
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
competitive matrix
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
customer empathy map
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
disruptive innovation
process that significantly impacts the market by making a product or service more affordable and/or accessible often by smaller companies in an industry
executive summary
initial section of a business plan document that summarizes the key elements of the entire plan
feasibility analysis
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
financial analysis
forecasts revenue and expenses; projects a financial narrative; and estimates project costs, valuations, and cash flow projections
fixed costs
costs that do not change, regardless of the amount of sales
lean model canvas
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
go or no go decision
determination to proceed with or abandon a plan or project new idea, process, or product, or a change to an existing product or process
market analysis
analysis of the overall interest in the product or service within the industry by its target market
projected cash flow
outline of preliminary expenses, operating expenses, and reserves
serviceable available market (SAM)
portion of the market that a business can serve based on its product, services, and location
social business model canvas
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
SWOT analysis
strategic analytical tool used to help a potential venture or existing company identify its strengths, weaknesses,
opportunities, and threats related to business competition
total available market (TAM)
total perceived demand for a product or service within the marketplace
value proposition
summary describing the benefits (value) customers can expect from a particular product or service
value proposition canvas
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
variable costs
costs that fluctuate with the level of revenue
