Chapter 3 Vocab

Question 1

Identification of potential new products or services that may lead to promising businesses

Answer 1

Opportunity Recognition

Question 2

Readiness to act on existing, but unnoticed, business opportunities

Answer 2

Entrepreneurial Alertness

Question 3

New business ventures created from scratch

Answer 3

Startups

Question 4

Startup ideas centered around providing customers with an existing product or service no yet available in their market

Answer 4

New Market Ideas

Question 5

Startup ideas involving new or relatively new technology, centered around providing customers with a new product

Answer 5

New Technology Ideas

Question 6

Toe refocus or recreate a startup if the initial concept turns out to be flawed

Answer 6

Pivot

Question 7

Startup ideas centered around providing customers with new or improved products or services

Answer 7

New Benefit ideas

Question 8

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

Answer 8

General Environment

Question 9

The environment that includes factors that directly impact a given firm and all of its competitors

Answer 9

Industry environment

Question 10

The environment that focuses on the strength, position, and likely moves and countermoves of competitors in the industry

Answer 10

Competitive Environment

Question 11

The basic inputs that a firm uses to conduct its business

Answer 11

Resources

Question 12

Those organizational resources that are visible and easy to measure

Answer 12

Tangible resources

Question 13

Those organizational resources that are invisible and difficult to assess

Answer 13

Intangible resources

Question 14

A company’s routines and processes that can coordinate the combined use of its productive assets in order to achieve desired outcomes

Answer 14

Capabilities

Question 15

Those capabilities that provide a firm with a competitive edge and reflect its personality

Answer 15

Core Competencies

Question 16

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

Answer 16

Competitive Advantage

Question 17

An assessment that provides a concise overview of a firm’s strategic situation

Answer 17

SWOT Analysis

Question 18

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

Answer 18

Strategy

Question 19

A plan of action that requires a firm to hold down its costs so that it can compete by charging lower prices and still make a profti

Answer 19

Cost-based strategy

Question 20

A plan of action designed to provide a product or service with unique attributes that are valued by consumers

Answer 20

Differentiation-based Strategy

Question 21

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

Answer 21

Focus Strategy

Question 22

A preliminary assessment of a business that gauges whether the venture envisioned is likely to succeed

Answer 22

Feasibility Analysis

Question 23

A circumstance or development that alone could render a new business unsuccessful

Answer 23

Fatal Flaw

Question 24

A facility for making desirable discoveries by accident

Answer 24

Serendipity