ENTREP 12 Flashcards
MIDTERM EXAMINATION
It is examining how you observe, think, feel, react draw conclusions and evaluate outcomes.
Reflection
It is trying out an approach or a solution and then learning from it.
Experimenting
It is being open to new perspectives or other ways of looking at things that are better.
Creativity
It is the ability to put yourself in the shoes of another person.
Empathy
This skill involves injecting some fun, excitement and joy in what you are doing.
Skill of Play
This refers to a business or marketing statement that summarizes the reason why a consumer should buy a company’s product or use its services.
Value Proposition
It pertains to how you sell your product or services to your customer.
USP
Entrepreneurship involves identifying and ranking the ___________ of the product or services character.
Uniqueness
These are all individuals and organizations in a particular market who have some level of interest in the product.
Potential Market
It refers to the process of gathering, analyzing, and interpreting information about the products or the services.
Market Research
Two Types of Entrepreneurship
Commercial Entrepreneurship
Social Entrepreneurship
Three Design Thinking Process
Define
Prototype
Ideate
__________ refers to the factors or elements affecting business organization.
Business Environment
A set of controllable and connected variables that a company gather to satisfy a customer better than its competitor is ____________
Marketing Mix
External business environment includes the factors and elements ________ the organization
Outside
________ are parties likely to be affected by the activities of the organization
Stakeholders
_____________ situation refers to national or local laws, international laws, rules, and regulations.
Politico-Legal
BUSINESS ENVIRONMENT is divided into the External and Internal Environment.
TRUE
SOCIOCULTURAL SITUATIONS include the customers’ changing values and preferences
TRUE
STAKEHOLDERS are those who patronize the organizations’ services and products
FALSE - CONSUMERS
SUPPLIERS are those who ensure the organization’s continuous flow of needed and reasonably priced inputs or materials required for producing their goods and rendering their services.
TRUE
Three P’s of Marketing Mix
PEOPLE
PLACE
POSITIONING
Two examples of Promotion
DIRECT MARKETING
SOCIAL MEDIA
It is about human labor force involved in the manufacture of products
Manpower
Manpower is measured as the most serious and main factor of ______________
Production
Educational qualifications and experience, status of employment, numbers of workers required, skills and expertise required for the job are some of the ___________ criteria.
Man Power
___________ talks about raw materials necessary in the production of a product
Material
_______ it is the manufacturing equipment used in the goods or delivery of services.
Machine
________ is the process or way of transforming raw materials to finished products
Method
___________ is the process of developing, testing, and commercializing a product or service with the ultimate objective observing the problem of the primary target market.
Product Development
__________ is a preliminary model or sample of a new product or service that is created to test a product concept our services process.
Prototype
_______________ is a process of finding out if the intended primary target market will be buying the product or availing the services
Validation of Market Acceptability
__________ are plans that ensure the continued business operation in the absence of the key employees.
Succession Plan
3 M’s of Production
MANPOWER
MATERIAL
MACHINE
Define Financial Planning
Financial planning is a critical aspect of entrepreneurship. It involves creating a comprehensive strategy for managing your business’ priority to ensure its long-term success and sustainability.
An individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
Entrepreneur
The resources and capabilities that comprise the strategic advantages of a business.
Core Competencies
Common traits of an entrepreneur
PROACTIVE
DECISIVE
RISK TAKERS
Core traits of an entrepreneur
LEADERS
COMMUNICATORS
PROBLEM SOLVERS
SPECIALIST
________ is a proactive process of developing a business venture to make a profit
Entrepreneurship
An _____________ is defined as a way of thinking, reasoning and behaving a perspective
Entrepreneurial Mindset
The tendency for individuals to pay attention to things in their environment that are only consistent with their own expectations
Selective Perception
_______________ being open to new perspectives or other ways of looking at things
It is about unleashing your ideas, concepts, or approaches that have not been tried.
The Skill of Creativity
This type of entrepreneurship involves creating new products.
Aim to create something with value, be it a product, a process, or an initiative.
Corporate Entrepreneurship
This type of entrepreneur involves the creation or setting up of a business
Marshals resources to seize a business opportunity
Start-up Entrepreneurship
This form of entrepreneurship involves a franchise that minimizes some business risks for an entrepreneur.
Buying a franchise
__________ is a license purchased by an entrepreneur allowing one to trade under the name of that established business
Franchise
This type of entrepreneurship used the business methods of a commercial enterprise to general profit
Engages in a process of social change
Social Entrepreneur
A thinking process
commonly used by designers to solve certain problems related to products and services.
Design Thinking
__________ means to
put yourself in the shoes of the other person for you to know how the other person thinks or feels about a given situation.
Empathize
Identifying a specific need
for a particular group is called a
design challenge. You have to think of how to solve a specific problem that they have, or to respond to what they felt they needed to improve their
living conditions
Define
Involves generating and
developing new ideas to address the needs of the people
Ideate
Involves creating a
sample product or service offering
that incorporated features and
qualities desired by the target users or customers
Prototype
You will now try out or sell the
product or service to an initial group of users or customers.
Test
Income-generating enterprises that are established mostly for the
purpose of generating profits.
Commercial Entrepreneurship
Income-generating enterprises that are established with more emphasis on social impact for the poor and other disadvantaged groups.
Social Entrepreneurship
Entrepreneurial Process
FINDING
EVALUATING
DEVELOPING
4 PHASES OF ENTREPRENEURIAL PROCESS
- IDENTIFY AND DEVELOP THE BUSINESS OPPORTUNITY
- DEVELOP A BUSINESS PLAN
- DETERMINE THE RESOURCES REQUIRED
- MANAGEMENT OF IMPLEMENT THE ENTERPRISE
TWO MAIN APPROACHES FOR OPPORTUNITY IDENTIFICATION
- Finding Approach
- Building Approach
It involves scanning the environment for
information to provide ideas for
starting up a business. This approach assumes that business opportunities exist “outside” of the entrepreneur.
Finding Approach
It involves creating a business opportunity that does not exist in the environment. The business idea originates or builds on the entrepreneur’s creativity, talents, skills, prior knowledge and experience, personal network, and internal resources.
Building Approach
MACRO ENVIRONMENTAL FACTORS
SOCIOCULTURAL
TECHNOLOGY ADVANCEMENTS
ECONOMIC TRENDS
INDUSTRY TRENDS
ENVIRONMENTAL OR ECOLOGICAL FACTORS
POLITICAL SITUATION
MACRO ENVIRONMENTAL FACTORS
COMPETITOR MOVES
SUPPLIERS
INCREASE OF SUBSTITUTE PRODUCTS
Changes in social
conditions such as educational needs, housing needs, food preferences,
leisure, lifestyles
Sociocultural
Innovations in technology and
inventions on products and service.
Technology Advancements
Changes in economic conditions that directly affect the business climate such as labor, costs, unemployment rates,
interest rates, inflation rates,
imports/exports
Economic Trends
Changes in
growth or decline of specific
industries belonging to
manufacturing, services, and
agriculture sectors
Industry Trends
Risks related to natural
disasters, health pandemic
Environmental or Ecological Factors
Changes in
government policies and regulatory
standards that directly affects the
business
Political Situation
Increase/decrease in number of
competitions, tactics of competitors
that impact the business
Competitor Moves
Increase/decrease in the
number of suppliers that affect
production and inventory levels
Suppliers
Entry/exit of substitute products that affect competition
Increase of Substitute Products
The process of
assessing potential business opportunities and selecting the best opportunity to invest in. A compelling business opportunity must be viable and doable.
Opportunity Screening
The business has the ability to
start, grow and survive. It factors the following:
* Market Aspects
* Production Sourcing
* Competition
* Financial Potential
Viability
It is achievable, practical, or
workable given the resources and time you
have to implement it.
Feasibility
If the business
concept is aligned with your values, abilities, passion, interests, and family or friends’ support
Alignment with Personal Values,
Interest, Resources
If there are
enough customers who will buy your product or service that will earn a profit so that the business can run continuously
Market Potential
If the process,
methods, technology are available
for the product or service
Operating Potential
If the business
will generate a profit-expected
revenues would be at least enough to cover the expenditure costs; if the
working capital requires is minimum and can be met.
Financial Potential
If the
presence or sudden moves of
competitors would not severely
threaten your business
Threat from Competitors
If certain unforeseen events
such as those related to weather,
security, and public health would not severely harm your business.
Potential Damage from Unforeseen Risks
Becoming popular
with the increasing number of individuals who are self-employed and working at
home
Home-based Business
A strategic plan on how you
are going to implement your chosen venture
to make it successful.
Business Plan
A plan of the strategies
that you will use to know your customers
and how to attract them to buy your product
or service.
Marketing Plan
A definitive
statement that clearly identifies the benefits
or value that a product or service can offer to
the customers.
Value Proposition
Allows you to differentiate
your marketing strategies across customer
segments.
Target Market
The process of
dividing the market into small homogenous
groups.
Market Segmentation
The process of
gathering, analyzing, and interpreting
information about the products or services
Market Research
STEPS IN CONDUCTING A MARKET RESEARCH
- Define the purpose or objectives of the market research
- Gather data from secondary sources
- Analyze and interpret the results
This is a form of person-to-person communication for data gathering
that may be done either in face-to-face or virtual conference methods.
Interviews
This usually involves three of five persons who
form a panel where the same set of questions
are asked to each member/target customer
Focused Group Discussions (FGDs)
This method requires preparing a
questionnaire that is given to a wider number of respondents/target customers
Surveys
An integrated approach to
strategies in offering and delivering the
product/service to your target customers.
Marketing Mix
Pertains to the distribution strategy of
your business.
Place
A marketing decision that combines
market research with financial analysis
Price
You need to determine the
costs directly related to your product
or service.
Costs
You need to research on
the standard markup for products in specific industries by reading
business publications or by asking
suppliers
Markups
Refers to the revenues
earned after paying the cost of goods
sold (COGS).
Margins
An entrepreneur examines the
price offered by the competitor and compares the quality or differentiating the
factors of his product versus the competitor
Competitors
Also called
markup pricing. Here, you add a
specific mark-up to the cost to
determine the selling price.
Cost plus pricing
Also called
benchmark pricing. This is offering
prices similar to your competitors
Competitive Pricing
This is offering one or
two products at a reduced price
Bundling
The most a customer will pay
for your product or service.
Price Ceiling
Pertains to your assessment of
how much it costs you to produce your
product or service
Price Floor
The price below which
you cannot sell and make the necessary
profit.
Break-even Price
It enables the entrepreneur to
inform potential consumers about the product’s availability, or to educate the
consumer about the product
Promotion
The role of human resources in
propelling the growth of the business
People
The attributes of your product
that may be affected as it goes through the
distribution channels
Packaging
How your product or service
offering is positioned in the minds of your
target customers
Positioning
