Entrepreneurship 2ND SEM (Part II)

Question 1

refers to the physical environment, societal environment, and industry environment where the business operates.

Answer 1

External Environment

Question 2

The physical environment includes : 3

Answer 2

Climate
Natural Resources
Wildlife

Question 3

The Societal environment includes the various forces like : 4

Answer 3

Political Forces
Economic Forces
Sociocultural Forces
Technological Forces

Question 4

The industry environment of the business includes: 6

Answer 4

Competitors
Customers
Creditors
Employees
Government
Suppliers

Question 5

A person with entrepreneurial interest sees possibility of business opportunities in any new discovery or because of the use of latest technology.

Answer 5

Technological discovery and advancement

Question 6

The priorities, projects, programs, and policies of the government are also good sources of ideas.

Answer 6

Government’s thrust, programs, and policies

Question 7

The interest, hobbies, and preferences of people are rich source of entrepreneurial ideas. Like the increasing number of Internet Café at present could be lead to the strong attachment of young people to computers.

Answer 7

People’s interest

Question 8

The expertise and skills developed by a person who has worked in a particular field may lead to the opening of related business enterprise.

Answer 8

Past experiences

Question 9

It is also known as the “five forces of competition,” An industry environment is a competitive environment. Regardless of what product or services you have, competition is always present.

Answer 9

Forces of Competition Model

Question 10

it is the act or process of trying to get or win something.
For example, the prices are lower when there is a competition among the stores.

Answer 10

Competition

Question 11

These are the five forces competing within the industry:

Answer 11

Buyers
Potential New Entrants
Rivalry among existing firms
Substitute Products
Supplier

Question 12

The _________ are the one that pays cash in exchange to your goods and services. For example, the influenced of the price or in the bargaining strategy. The buyer has a strong and magnified bargaining power.

Answer 12

Buyers

Question 13

A ____________is defined as the one who enters something. For example, the level of capital requirements, if the business requires huge capital, new entrants should decline to join the business. This gives a threat to the business.

Answer 13

Potential New entrant

Question 14

is a state or situation in which people or groups are competing with each other. For example it depends on the Marketing strategy of your competitor, like giving freebies and special offers.

Answer 14

Rivalry among existing firms

Question 15

___________ means anything that takes the place or function of another. For example the consumers decide to use margarine as a substitute for butter. In case the price of butter increases, preferably the consumer will gradually switch to margarine.

Answer 15

Substitute Products

Question 16

The _________ are the one that provide something that is needed or wanted. For example if the supply and services being offered is unstable or keep. The intensity of the threat is strong in this kind of the competitive force in the industry

Answer 16

Suppliers

Question 17

Process of considering, evaluating, and pursuing market based activities that are accepted to be beneficial for the business.

Answer 17

Opportunity seeking

Question 18

can be defined as the steps taken in order to begin a new enterprise. It is a step-by-step method, one has to follow to set up a business.

Answer 18

. Entrepreneurial process

Question 19

an innovative concept that can be used for financial gain that is usually centered on a product or service that can be offered for money.

Answer 19

Entrepreneurial ideas

Question 20

These are the basic foundation that the entrepreneur must have in seeking opportunities, such as entrepreneurial mind frame, heart flame and gut game.

Answer 20

Essentials of entrepreneur’s opportunity seeking

Question 21

can be attain by assessing and looking at changes in the environment; technological discovery and advancement; government’s thrust, programs, and policies; people’s interest, and past experiences.

Answer 21

Sources of opportunity

Question 22

refers to the physical environment, societal environment, and industry where the business operates.

Answer 22

External environment

Question 23

refers to the local government (municipality, city, or provincial) or the national government and its branches.

Answer 23

Government

Question 24

it is the act or process of trying to get or win something

Answer 24

Competition

Question 25

anything that takes the place or function of another.

Answer 25

Substitute

Question 26

– the one who enters something.

Answer 26

New Entrants

Question 27

are the one that provide something that is needed or wanted.

Answer 27

Suppliers

Question 28

are the one that pays cash in exchange to your goods and services.

Answer 28

Buyers

Question 29

is a state or situation in which people or groups are competing with each other.

Answer 29

Rivalry

Question 30

____________ is a business or marketing statement that summarizes why a consumer should buy a company’s product or use its service. This statement is often used to convince a customer to purchase a particular product or service to add a form of value to their lives.

Answer 30

Value Proposition (VP)

Question 31

refers to how you sell your product or services to your customer. You will address the wants and desires of your customers.

Answer 31

Unique Selling Proposition (USP)

Question 32

effective unique selling proposition to the target customers: 3

Answer 32

• Identify and rank the uniqueness of the product or services character
• Very Specific
• Keep it short and simple (KISS)

Question 33

_________________is a sage in market identification process that aims to determine the buyers with common needs and characteristics. Prospect customers are market segment that entrepreneurial venture intends to serve.

Answer 33

Target Market

Question 34

Commonly used methods for segmenting the market are follows. (Target Market) 4 Items

Answer 34

Geographic Segmentation
Demographic Segmentation
Psychological Segmentation
Behavioral Segmentation

Question 35

the total market is divided according to geographical location.

Answer 35

Geographic Segmentation

Question 36

Geographic Segmentation (4 variables)

Answer 36

Climate
Dominant Ethnic Group
Culture
Density (either rural or urban)

Question 37

divided based consumers.

Answer 37

Demographic Segmentation

Question 38

Demographic Segmentation (8 variables)

Answer 38

Gender
Age
Income
Occupation
Education
Religion
Ethnic Group
Family size

Question 39

divided in terms for customers think and believe.

Answer 39

Psychological Segmentation

Question 40

Psychological Segmentation (7 variables)

Answer 40

Needs and Wants
Attitudes
Social Class
Personality Traits
Knowledge and Awareness
Brand Concept
Lifestyle

Question 41

divided according to customers behavior pattern as they interact with a company.

Answer 41

Behavioral Segmentation

Question 42

Behavioral Segmentation (6 variables)

Answer 42

Perceptions
Knowledge
Reaction
Benefits
Loyalty
Responses

Question 43

are the specific characteristics that the customers need from a product or a service.

Answer 43

Customer Requirements

Question 44

There can be two types of customer requirements:

Answer 44

1. Service Requirement
2. Output Requirement

Question 45

Intangible thing or product that is not able to be touched but customer can feel the fulfillment.

Answer 45

Service Requirement

Question 46

Tangible thing or things that can be seen.

Answer 46

Output Requirements

Question 47

Entrepreneur’s most critical task is to calculate the market size, and the potential value that market has for their startup business. Market research will determine entrepreneur possible customers in one locality.

Answer 47

Market Size