Chapter 3- Nursing Entrep Flashcards
Since idea generation and screening are relatively less costly stages in the new product development process (in terms of investment in funds, time, personnel, and escalation of commitment), it makes sense to manage the process in the most efficient and effective manner for the organization
Linda Rochford
The most serious mistakes are not being made as a result of wrong answers. The truly dangerous thing is asking the wrong question.
Peter Drucker
I have no data yet. It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.
Arthur Conan Doyle
___ has existed as long as individuals
have specialized in the production of a good or service to exchange with other individuals for products, they needed but did not produce themselves.
Entrepreneurship
According to Dana, Etemad, and Wright
(2008) - Types of Economies
- Bazaar
- Frim
- New Ecomonies
- It is a social, cultural and economic system in which the physical clustering of vendors facilitates the consumer’s comparative information search, by eliminating displacement time.
- It is strongly affected by relationships and networks
- Consumers are not treated equally.
- Products and services are personalized
Bazaar- Type Economy
- It is an economic institution in which location is a competitive advantage
- Business takes place primarily within a set of
impersonally defined institutions - The flow of commerce is a function of strategy based on optimization models
- The purpose of transactions is to maximize wealth efficiently, and the means to this is rational and unbiased decision-making that treats buyers as equals
Firm- Type Economy
The price paid and the level of service provided is established by the seller. Products and services are standardized
Competitive pricing
Firms engage in transactions while attempting to maximize profits through
rational decision-making
- is a cultural and economic system in which the virtual clustering of vendors facilitates the
consumer’s comparative information search, by eliminating displacement time - The flow of commerce is strongly affected by
relationships and networks; relationships and
preferential treatment are integral to business - Consumers are not treated equally
- Different people pay unlike prices
- The price paid and the level of service provided is a function of status and relationships
- Products and services are customized
New Eonomy
involves individuals and businesses seeking new ways to share underutilized resources and develop new business models that focus on selling the use of something rather than selling the item itself
Sharing Economy- Collaborative Consumption
The new trend
“Instead of buying and owning products, consumers are increasingly interested in leasing and sharing them. Companies can benefit from the trend toward ‘collaborative consumption’ through creative new approaches to defining and distributing their
offerings”
(Matzler, Veider, & Kathan, 2015)
Examples of Sharing Economy
- Uber
- Airbnb
- Grab and Foodpanda
- Skilled Nursing Facilities
- Medical equipment rentals
- Elderly shared ride
- Residential Care Facilitie
Sharing Economy in Healthcare Setting
- Sell the use of a product rather than ownership of it.
- Opportunity to resell products they purchased
- By exploiting unused resources and capacities
- By providing repair and maintenance services
- By using collaborative consumption to target new customers
- By developing new business models enabled by collaborative consumption
Six ways that companies could benefit by engaging in
the sharing economy:
It is an effective process in evaluating
entrepreneurial opportunities. It involves assessing the various venture ideas being considered by applying different levels and types of analyses
Idea Screening
should be high-level, designed to assist in making key decisions (i.e. determining if there is a viable market opportunity for the
venture)
initial scan
should be continuously conducted to support each part of the business plan (i.e. operations, marketing, finance)
secondary scan
Levels of Analyses
- Societal
- Industry
- Market
- Firm
PESTEL model stands for
- Political factors
- Economic factors
- Social factors
- Technological factors
- Environmental factors
- Legal factors
- Political Stability
- Corruption
- Foreign Trade Policy
- Funding Grants
(government policy, political decisions, etc. and likely changes)
Political factors
- Economic Growth
- Interest Rates
- Inflation
- Disposable Income of Consumers
- Labour Costs
(interest rates, inflation, exchange, taxes, etc. and likely changes)
Economic factors
- Population Growth
- Age
- Distribution
- Cultural Barriers
- Consumer Views
- Workforce Trends
(population characteristics, changes in demand, etc. and likely changes)
Social factors
- Emerging Technologies
- Maturing Technologies
- Copyright and Patents
- Production and Distribution
- Research and Investment
(new processes, products, etc. and likely changes)
Technological factors
- Climate
- Environmental Policies
- Availability of Inputs
- Corporate Social Responsibility
(climate, weather, etc. and likely changes)
Environmental factors
- Regulation
- Employment Laws
- Consumer Protection Laws
- Tax Policies
- Anti-trust Laws
(labour, laws, etc. and likely changes)
Legal factors
an appropriate tool to analyze the industry by considering competitive rivalry between firms in the indusry; threat of new entrants to the industry; threat of substitiutes, supplier power; and buyer power
Porter’s Five Forces model
an appropriate tool to analyze the proposed position within the industry. Answer questions like: How attractive is the market? What is the current size of the market? What size it will become? What is its expected growth rate? At what stage of the development cycle is the market? What level of profits can be expected in this market? What proportion of the market can we capture, and at what cost?
a market profile analysis
an appropriate tool to develop strategies to leverage strenghts overcome/minimize weaknesses take advantage of oppportunities; overcome/minimize threats
* financial projections and analysis
* founder fit analysis
* care competency analysis
* advice from trusted advisors
SWOT Analysis / TOWS Matrix / VRIO Framework
it is important to understand each
of the political, economic, social, technological,
environmental, and legal (PESTEL) factors—and, more specifically, the trends affecting those factors—that will have an impact on a venture based on a particular idea
Societal Level
Apply Porter’s (1985) Five Forces Model, or a
similar tool designed to assess industry-level
factors. This analysis will focus more specifically on the sector of the economy in which you intend to operate
Industry Level
Porter’s 5 Forces
- Threat of New Entrants
- Competitive Rivalry
- Supplier Power
- Threat of Substitution
- Buyer Power
- Buyer’s switching cost is low
- Not much experience needed
- Low entry barriers
- Low R&D expense
- Low customer loyalty for non-established brands, making it easy for buyer to switch to alternatives
- Increased bargaining power of suppliers
Threat of New Entrants
- High competition 5% of market players own 83% of market share
- High competition between online and offline
companies - Large advertising expense
- High customer loyalty to established brands
- Most competitors have a strong finance support
- Some competitors have government background
Competitive Rivalry
- The whole industry relies on one to two supplier
- There is low competition among suppliers
Supplier Power
There are multiple substitute services in the
market and some of them are relatively cheaper
Threat of Substitution
- Buyers are sensitive to price change
- Buyers are not willing to spend much
- Buyers can compare different alternatives easily with information on the internet
Buyer Power
use a tool to generate information about the part of the industry in which your business will compete. This tool might be in the form of a set of questions designed to uncover information that you need to know to help develop plans to improve the success of your proposed venture
Market Level
Most common tools used:
- Key Success Factors (KSF)
- Marketing Mix (5Ps)
- Market Segmentation
- business strategies that are critical to a
successful relationship with your customer - are decided by the needs and preferences of your market and customers, not by your business. Discovering your key success
factors requires researching your customers to understand who they are, what they want from your company, and what prompts them to make a purchase
Key Success Factors
___ are key marketing elements used to position a
business strategically. It is also known as ___ ,are variables
that managers and owners control to satisfy
customers in their target market, add value to their
business, and help differentiate their business
from competitors.
5P’s, marketing mix
Service provided is assistance for job seekers to get hired. Provide training, assistance in job searches and finding companies that would hire the client. Workshops and partnered company events.
Products
Website, Instagram, Facebook, flyers around
community and with partnered companies. Direct marketing, public relations, and word-of-mouth.
Promotion
Free to those that fit into certain criteria for funding
Price
Job centers in Pomona, West Covina, Hollywood, North Orange Country, and Boyle Heights. Social media marketing
Place
In house marketing team. Outside company
contracted to create flyers and run website.
Employees in partner agencies.
People
is the process of dividing a target market into smaller, more defined categories. It segments customers and audiences into groups that share similar characteristics such as demographics, interests, needs, or location.
Market Segmentation
- Age
- Gender
- Income
- Location
- Family Situation
- Annual Income
- Education
- Ethnicity
Demographic
- Personality traits
- Values
- Attitudes
- Interests
- Lifestyles
- Psychological influences
- Subconscious and conscious beliefs
- Motivations
- Priorities
Psychographic
- Purchasing habits
- Spending habits
- User status
- Brand interactions
Behavioral
- ZIP code
- City
- Country
- Radius around a certain location
- Climate
- Urban or rural
Geographic
both the internal organizational trends and the external market profile trends should
both be analyzed. There are several tools for
conducting an internal organizational analysis, and normally you should normally apply several of them
Firm Level
Firm Level: most common tools used:
- SWOT Analysis
- TOWS Matrix
- VRIO
- Financial Analysis
Characteristics of a business which give it advantages over its competitors
Strength
Characteristics of a business which make it
disadvantageous relative to competitors
Weakness
Elements in a company’s external environment that allow it to formulate and
implement strategies to increase profitability
Opportunities
Elements in the external environment that could endanger the integrity and profitability of the business
Threats
Leverage strengths to maximize opportunities
= Attacking strategy
TOWS Matrix
SO strategies
Counter weaknesses through exploiting
opportunities = Build strengths for
attacking strategy
WO strategies
Leverage strengths to
minimize threats
= Defensive strategy
ST strategies
Counter weaknesses
and threats
=Build strengths for
defensive strategy
WT strategies
Helps assess a firm’s capacity, determine what
competencies a venture should have, and determine whether competences are valuable, rare, inimitable, and exploitable
VRIO Framework
Is a particular resource (financial, physical, technological, organizational, human, reputational, innovative) valuable to a firm because it helps it take advantage of opportunities or eliminate threats?
Value
Is a particular resource rare in that it is
controlled by or available to relatively
few others?
Rarity
Is a particular resource difficult to imitate
so that those who have it can retain cost advantages over those who might try to obtain or duplicate it?
Imitability
Are the resources available to a firm
useful to it because it is organized and
ready to exploit them?
Organization
an important consideration for entrepreneurs screening venture opportunities. While there are plenty of examples of entrepreneurs
successfully starting all types of businesses,
“technical capability can be an important if not allimportant factor in pursuing ventures success”
(Vesper, 1996, p. 149)
Founder Fit
A common and useful way to help screen venture options is to seek input from experts, peers, mentors, business associates, and perhaps other stakeholders like potential customers and direct family members
Founder Fit
Any business requires to obtain ___ and ___ before it can be completely operational.
Where to Register Business Structures in the Philippines
all the necessary
licenses and certificate of registration
the simplest form of business entity where one person is responsible for all the company’s profits and debts. The business should apply for a business name and get registered with the DTI (Department of Trade and Industry).
Sole/Single Proprietorship
entity is owned by two or more individuals; two or more persons bind themselves to contribute money or industry to a common fund, with the intention of dividing the profit among themselves. The business should obtain a Certificate of Registration with SEC
(Securities and Exchange Commission).
Partnership
an entity that is separate from its owners (legally); it has its identifiable legal rights, independent of its owners, hence it can sue, be sued, own and sell property and sell the rights of ownership in the form of stocks. The business should obtain a Certificate of Registration with SEC (Securities and
Exchange Commission).
Corporation
eligible for government grants to help them get started; can leverage their business size, thus obtaining discounts on products and services for their members. The business must register with the CDA (Cooperative Development Authority). In adopting a nursing entrepreneurship group, nurses should register their business enterprise with CDA
Cooperatives
