ER Unit 3 Flashcards
Entrepreneurship
• Strategic thinking and risk-taking behaviour that results in the creation of new opportunities
Business Ownership
• Sole proprietorship- single business owner –
unlimited liability
• Partnership –unlimited liability
• Two or more people form a business
• Corporation – legal entity that exists separately from
its owners – responsible for its own liabilities-limited
Stages of lifecycle innovation
1.Idea:maybe a new idea or a better one to enhance a product/service
2.Idea screening– test some ideas, what is the competitive market like?
3.Concept development– possibly designing a prototype
Eg. Bendable phones
4.Market strategy – market research target market
5. Feasibility study –materials, pricing, costs of ads, promotion, distribution, packaging and other design costs.
6. Product design – take into account preferences of target market- eg. Sleek, thin, wide screen phones –trendy
7. Test Marketing– is there acceptance of product in a small market
8. Market entry– launch product to the market -
Debt/equity financing
• Debt financing -borrow money that must be paid back over time.
• Equity financing offering shares in a business in return for a cash investment
Importance of planning,
Steps in the planning process
• Define your objectives.
• Develop premises regarding future conditions.
• Analyze and choose among action alternatives.
• Implement the plan and evaluate results.
Benefits of planning
• Improves focus and flexibility.
• Improves action orientation.
• Improves coordination and control
SMART
•Set specific goals.
•Make sure goals are measurable.
• Ensure goals are attainable.
•Goals must be referred to regularly.
•Goals must be timely.
Management by Objectives (MBO)
• A structured process of regular communication.
• Supervisor/team leader and workers jointly set performance objectives.
Competitive Advantage
operating with an attribute or set of attributes that allows an organization to outperform its rivals.
strategy
a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish organizational goals with sustainable competitive advantage.
SWOT
Strengths:
• Manufacturing efficiency?
• Skilled workforce?
• Good market share?
• Strong financing?
• Superior reputation?
Weaknesses
• Outdated facilities?
• Inadequate research
and development?
• Obsolete technologies?
• Weak management?
Opportunities
• Possible new markets?
• Strong economy?
• Weak market rivals?
• Emerging technologies?
Threats
• New competitors?
• Shortage of
resources?
• Changing market tastes?
• Substitute products?
Core Competency
a defining capability or advantage that distinguishes an enterprise from its competitors.
strategic and tactical plans
• Strategic plans — set broad, comprehensive, and longer-term action directions for the entire organization.
• Tactical plans— define what needs to be done in specific functions to implement strategic plans.
• Production plans- manufacturing,materials
• Financial plans- costs, forecasts
• Facilities plans -evaluate space for business success
• Marketing plans-target market- 4p’s
• Human resource plans-selecting, maintaining right labour
