Chapter 3 Creating Business From Opportunity

Question 1

Core values

Answer 1

The fundamental ethical the moral philosophy and believes that form the foundation of the organization and provide a broad guidance for all decision-making

Question 2

Competitive strategy

Answer 2

The combination of the business definition with its competitive advantage

Question 3

Mission statement should address of these nine areas

Answer 3

1. Target customers
2. Products and services
3. Markets served
4. Use of technology
5. Importance of public issues
6. Focus on survival
7. Profitability
8. Gross
9. employees

Question 4

Culture

Answer 4

Core values in action

Question 5

Two main ways entrepreneurs get ideas for business

Answer 5

Opportunity and recognition

Question 6

Competitive advantage and your strategy to

Answer 6

beating the competition

Question 7

Six elements of competitive advantage

Answer 7

1. Quality
2. Price
3. Location
4. Selection
5. Service
6. Speed / turn around

Question 8

8 factors to help determine if your competitive advantage is strong enough .

Answer 8

1. sell to market that is large and growing
2. sell to a market with the competition is able to make a profit
3. sell to a market where the competition is succeeding but is not so powerful as to make it impossible for a new entrepreneur to enter.
4. Sell a product or service that solves problems consumers may have with the competition
5. Sell a product or service at a competitive price that will attract customers
6. understand the needs of your customers
7. Have a sustainable competitive advantage or multiple evolving advantages
8. Deliver a product or service to meet your customers needs at the right price

Question 9

3 criteria to sue in determining if your competitive advantage is strong enough to outperform the competition

Answer 9

1. Competitive offers
2. Unique selling proposition
3. Cost structure