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Management > Chapter 3: Starting a Small Business > Flashcards

Chapter 3: Starting a Small Business Flashcards

1
Q

The identification of potential new products or services that may lead to promising businesses is known as

A

Opportunity recognition

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2
Q

The readiness to act on existing, but unnoticed business opportunities is known as

A

Entrepreneurial Alertness

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3
Q

New business ventures created from scratch are called

A

Startups

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4
Q

Entrepreneurs craving the challenge of succeeding or failing on their own is known as

A

Startup Fever

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5
Q

What are the three basic types of start up ideas?

A

New Market Ideas
New Technology Ideas
New Benefit Ideas

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6
Q

These are centered around providing customers with an existing product or service not available in their market

A

New Market Ideas

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7
Q

These involve new or relatively new technology and are centered around providing customers with a new product

A

New Technology Ideas

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8
Q

Why are new technology ideas considered high risk?

A

There is not a definite model of success to follow

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9
Q

These are based on offering customers benefits from new and improved products or better ways of performing old functions

A

New Benefit Ideas

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10
Q

Fundamentally refocusing the startup as it unfolds or completely recreating it if the initial concept turns out to be seriously flawed is known as a

A

Pivot

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11
Q

What are three possible sources of startup ideas?

A

Personal Work Experience
Hobbies and Personal Interest
Accidental Discovery

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12
Q

A facility for making desirable discoveries by accident is known as

A

Serendipity

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13
Q

Combining two business to create a market opening can do what

A

Lead to unique products, services, or experiences

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14
Q

The broad environment encompassing factors that influence most businesses in a society

A

The General Environment

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15
Q

The general environment studies what important trends

A 
Economic
Sociocultural
Politicolegal
Global
Technological
Demographic
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16
Q

The context for factors that directly impact a given firm and all of its competitors

A

The Industry Environment

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17
Q

This focuses on the strength, position, and likely moves and countermoves of competitors in an industry

A

The Competitive Environment

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18
Q

What does evaluating the competitive environment help the entrepreneur to do?

A

Evaluate the nature and extent of existing competition and to fine-tune future plans

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19
Q

Inputs that an entrepreneur can use to start and conduct a business are known as

A

Resources

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20
Q

These resources are visible and easy to measure

A

Tangible Resources

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21
Q

These resources are invisible and difficult to assess

A

Intangible resources

22
Q

A company’s routines and processes that coordinate the combined use of these productive assets to achieve desired outcomes are called

A

Capabilities

23
Q

The crucial capabilities that distinguish a company competitively and reflect its general focus and personality is a company’s

A

Core compentencies

24
Q

This gives a startup or small business the upper hand by allowing it to provide products or services that customer will choose over available opportunities is called a

A

Competitive Advantage

25
Q

A benefit that exists when a firm has a product or service that is seen by its target market as better than those of competitors

A

Competitive Advantage

26
Q

This provides a snapshot view of current conditions outside and inside of the company

A

SWOT Analysis

27
Q

A SWOT analysis shows these

A

Strengths
Weaknesses
Opportunities
Threats

28
Q

What does a SWOT analysis identify?

A

Potential business opportunities that match the entrepreneur and his or her planner venture

29
Q

A set of actions that coordinates the resources and commitments of a business to boost its performance

A

Strategy

30
Q

A plan of action that coordinates the resources and commitment of an organization to achieve superior performance

A

Strategy

31
Q

The strategy that believes that a firm must hold down it’s costs so that it can compete by charging lower prices for its products or services and still make a profit

A

Cost-Based Strategy

32
Q

What is a possible side effect of the Cost-Based Strategy?

A

Could spark a price war

33
Q

This strategy emphasizes the uniqueness of a firm’s product or service

A

Differentiation Based Strategy

34
Q

A plan of action that isolates an enterprise from competitors and other market forces by targeting a restricted market segment

A

Focus Strategies

35
Q

A strategic approach in which entrepreneurs try to shield themselves from market forces by targeting a specific group of customers who have an identifiable but very narrow range of product or service interests

A

Focus Strategies

36
Q

Focus strategies are also known as

A

Market Niche

37
Q

A segmented market can erode any of these ways

A

Focus strategy is limited
Target segment becomes structurally unnattractive
Target segment loses its uniqueness
New firms subsegment the industry

38
Q

What is a common problem with coming up with a business idea

A

Coming up with too many ideas

39
Q

This should be completed to determine whether the idea you have selected is viable and merits the investment of time and money

A

An in-depth Feasibility Analysis

40
Q

The quality of the final evaluation will only be as good as

A

The information used to generate it

41
Q

The merits of an idea are relative to

A 
The strength of the business idea
Targeted market and customers
Industry and competitive advantage
Capability of founders
Capital requirements and venture performance
42
Q

A preliminary assessment of a business idea that gauges whether or not the venture envisioned is likely to succeed

A

Feasibility analysis

43
Q

A circumstance or development that, in and of itself, could render a new business unsuccessful

A

Fatal flaw

44
Q

success in entrepreneurship is generally the result of these three elements coming together to launch and maintain success

A

A market with potential
An attractive industry
A capable individual or team with the skill and capabilities to pull it all together

45
Q

Two levels of the market

A

Macromarket

Micromarket

46
Q

This is broad, with a limited attractiveness of the niche if the fundamental features are not promising

A

Macromarkets

47
Q

This establishes the boundaries for the research you will need to conduct regarding the number of customers targeted and their overall purchasing power

A

Macromarket analysis

48
Q

Fragments or niches of markets that can be identified within the broader market

A

Micromarkets

49
Q

Assesses the overall attractiveness of the industry

A

Macro-level analysis

50
Q

Focused more on the probability of a startup’s success in the long run

A

Micro-level analysis

51
Q

A new business will only be as strong as it’s

A

leader

52
Q

The 3 dimensions of capability

A

The fit of the venture with its leader’s mission, aspirations, and level of comfort with risk involved
The leader’s grasp of factors that are critical to the success of the enterprise and his/her ability to execute on these
The leader’s connection to suppliers, customers, investors, and others who will be essential to making the venture work

Management (20 decks)

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