chapter 5

Question 1

Competitive analysis?

Answer 1

Analysis is the collection of information, and competitive is your competitors. So it is information about your competitors products, services, and financial performance.

Question 2

Entrepreneurial opportunity?

Answer 2

I see a demand for a product or service and I can do a business venture.

Question 3

Joseph’s Shumpeter’s theories?

Answer 3

Entrepreneurs create value “by exploiting a new invention or untried invention, or producing an old one in a new way”.

Question 4

Joseph’s Shumpeter’s theory name?

Answer 4

Creative destruction

Question 5

Supply?

Answer 5

the amount of a product or service produced.

Question 6

Demand?

Answer 6

consumers desire for the products or services produced.

Question 7

Drivers of opportunity?

Answer 7

Capital, Technology, Globalization, and Economic.

Question 8

Capital for opportunity?

Answer 8

crowdsourcing for women and minority to be entrepreneurs.

Question 9

Technology for opportunity?

Answer 9

multiple applications.

Question 10

Globalization for opportunity?

Answer 10

spreads ideas across markets.

Question 11

Economic for opportunity?

Answer 11

strong economy fuels business.

Question 12

Was Blakely’s idea a demand or a supply idea?

Answer 12

It was a demand idea.

Question 13

Opportunity screening?

Answer 13

Is used to evaluate product ideas, strategies, and marketing trends to see if it will be successful.

Question 14

Secondary research?

Answer 14

data already available through published source.

Question 15

Primary research?

Answer 15

data that does not yet exist.

Question 16

Significant market demand?

Answer 16

solution to a problem.

Question 17

Significant market structure and size?

Answer 17

growth potential and drivers of demand. entry is not difficult.

Question 18

Significant margins and resources to support the venture’s success?

Answer 18

checking the operating cost (high) and profit margin (low) to see if the idea is worth it.

Question 19

Reasons small business fail?

Answer 19

Low sales
Lack of experience
Insufficient capital/money-
Poor location
Poor inventory management
Over investment in fixed assets
Poor credit -management
Personal use of business funds
Unexpected growth-
and Competition.

Question 20

Shared economy?

Answer 20

utilize unused assets/resources.

Question 21

Gig economy?

Answer 21

temporary positions, short-term workers.

Question 22

What are the 6 Competitive analysis key success factors?

Answer 22

Strengths, Weaknesses, Product quality, Price point, Location of the business, and Promotion.

Question 23

SWOT analysis?

Answer 23

Strengths, Weakness, Opportunities, and Threats. Builds on the knowledge gained with the competitive analysis information.

Question 24

Pest analysis?

Answer 24

Used to identify issues in the political, economic, societal, and technology area.

Question 25

What is the Business model?

Answer 25

a plan for how the venture will be funded, how the venture create value for stakeholders, and how income will be generated.

Question 26

What does the business model include?

Answer 26

Offering, Customers, Financial viability, and Infrastructure.

Question 27

Offering?

Answer 27

products/services being sold, how customers will benefit.

Question 28

Customers?

Answer 28

people you will be serving.

Question 29

Financial viability?

Answer 29

ability to generate profits.

Question 30

Infrastructure?

Answer 30

resources entrepreneur needs to launch and sustain the business.

Question 31

Unique selling proposition?

Answer 31

why a product or service is different/better than competitor’s product.