chapter 3

Question 1

Business Definition

Answer 1

includes the offer target market and product and delivery capability answering who what and how

Question 2

the Offer

Answer 2

what will you sell to your customers and includes the complete bundle of products and services you will be bringing to the marketplace

Question 3

Target Market

Answer 3

which segment of the market are you aiming to serve

Question 4

Product and Delivery Capability

Answer 4

how will you provide your offer to your targeted customers

Question 5

Four basic types of Businessess

Answer 5

Manufacturing
Wholesale
Retail
Service

Question 6

Manufacturing

Answer 6

produces a tangible product and sells it either through distributors or directly to end customer

Question 7

Wholesale

Answer 7

buys in bulk from manufacturers and sells smaller quantities to retailers

Question 8

Retail

Answer 8

sells individual items to consumers

Question 9

Service

Answer 9

sells an intangible product to businesses or consumers

Question 10

Mission Statement

Answer 10

concise communication of your purpose business definition and values
clarify what the business is trying to do in the present and provide direction and motivation for future action

Question 11

Vision

Answer 11

paint a picture of the overall view of what you want your organization to become in the future

Question 12

Culture

Answer 12

composed of the core values of the organization in action
factors including risk tolerance and innovation orientation with respect to people teams and outcomes attention to detail and communication norms

Question 13

Competitive Advantage

Answer 13

Strategy for beating the competition
must be sustainable
consumer need and want

Question 14

6 factors of Competitive Advantages

Answer 14

1 quality
2 price
3 location
4 selection
5 service
6 speed/turnaround

Question 15

Economics of one unit of sale (EOU)

Answer 15

the amount of gross profit that is earned n each unit of the product or service a business sells

Question 16

Organizational core beliefs

Answer 16

beliefs guiding the company

Question 17

5 Breakthrough Steps

Answer 17

1 calculating unit of sale
2 determining EOU
3 substituting someone elses labor
4 selling in volume
5 creating jobs and operating as a profit

Question 18

Currency

Answer 18

term for money when exchanging internationally

Question 19

Foreign Exchange Rate

Answer 19

relative value of one currency to another

Question 20

3 Types of valuation

Answer 20

cost approach
market approach
discounted cash flow

Question 21

EOU manufacturing

Answer 21

one item create and sell but includes direct labor

Question 22

EOU Wholesale

Answer 22

buy for cheaper
sell for more
little/no direct labor

Question 23

EOU Retail

Answer 23

buys for less and sells for more per item

Question 24

EOU Service

Answer 24

Hairdresser charging for a haircut