Chapter 23 Flashcards
What is demographic study
Study of population
What is direct competition
2 companies making same level of product
What is indirect competition
Competition among the suppliers of different types of products that satisfy the same needs. For example, a pizza shop competes indirectly with a fried chicken shop, but directly with another pizza shop.
What is marketing myopia
Only think about current situation of market. No care about future.
Who does assessment of risk
Venture capitalist
What are 2 types of assessment changes
1- Controllable (human can control)
2- Uncontrollable (natural disaster, war, global changes)
How to tackle uncontrollable changes
Legal insurance
What is financial plan
It relates to monitory things of plan. It has 3 parts
1- Overall project cost
2- Sourcing (a-active portion, b-dead portion)
3- Justifications (assumptions, projections, break even analysis, balance sheet)
What is active portion of resources
Where venture capitalist invest
What are 3 types of assumptions
- Marketing
- Manufacturing
- Sales
What is appendix in financial plan
The things which are not covered in plan are mentioned in appendix. (e.g. suppliers, addresses of suppliers, personal reference, machinery supplier)
