Chapter 3 - Starting a small business Flashcards
What is opportunity recognition?
Identifying potential new products or services that may lead to promising business
What is Entrepreneurial Alertness?
Readiness to act on existing, but unnoticed business opportunities
What is a start up?
A new business venture created from scratch
What is a Type A Idea?
Taking an existing product to a new market
What is a Type B Idea?
Bringing a new technology to market
What is a Type C idea?
Providing customers with a new or improved version of an existing product
What are common sources of business inspiration?
Personal Experience, Hobbies, Accidental Discoveries and Eye on Change.
What is an Inside-Out business analysis?
Looking at your own abilities first and thinking of new products or services you can take to market
What is an Outside-In business analysis?
Looking at the needs of the marketplace first in order to determine how you can pursue those opportunities
Define General Environment
The broad factors that influence most businesses in society
Define Industry Environment
The factors that directly impact a firm and it’s competitors
Define Competitive environment
The strength, position and likely moves/counter-moves of competitors
Define Resources
Basic inputs a firm uses to conduct business
Define tangible resources
Resources that are visible and easy to measure
Define intangible resources
resources that are invisible and difficult to assess
Define capabilities
the integration of the firms various resources that are deployed together to the firm’s advantage
define competitive advantage
a benefit that exists when a firm has a product or service that is seen by it’s target market as better than those of competitors
Define core competencies
Those capabilities that provide a firm with a competitive edge and reflect it’s personality
What is a SWOT analysis?
An assessment that provides a concise overview of a firms strategic situation
What is a strategy?
A plan of action that coordinates the resources and commitments of an organization to achieve superior performance
Define cost-based strategy
A plan of action that requires a firm to hold down it’s costs so that i can charge lower prices and still profit
Define differentiation based strategy
A plan of action to provide a product/service with unique attributes that are valued by customers
Define Focus Strategy
A plan of action that isolates an enterprise from competitors by targeting a restricted (niche) market segment
Define strategic decision
A decision regarding the direction a firm will take in relating to its customer and competitors
