Lesson 2: Recognize a Potential Market

Question 1

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

Answer 1

entrepreneurial ideas

Question 2

the creation of entrepreneurial ideas leads to

Answer 2

identification opportunities

Question 3

identification opportunities results in

Answer 3

the opening of entrepreneurial venture

Question 4

the entrepreneurial process of creating a new venture

Answer 4

creation of entrepreneurial ideas → identification of entrepreneurial opportunities → opening of entrepreneurial ventures

Question 5

defined as the steps taken in order to begin a new enterprise

Answer 5

entrepreneurial process

Question 6

step-by-step method one has to follow to set up a business

Answer 6

entrepreneurial process

Question 7

who made the diagram showing the entrepreneurial process of creating a new venture

Answer 7

Nick L. Aduana

Question 8

sources of ideas for entrepreneurial ventures

Answer 8

FROM existing products; the process; the person; relations

Question 9

methods of generating for testing business ideas OR methods of generating business ideas through logical thinking

Answer 9

statistical analysis and market analysis

Question 10

refers to the systematic analysis of data generated from a survey of individuals

Answer 10

statistical analysis

Question 11

undertaken to know the various factors that affect the demand for a particular product or serivce

Answer 11

market analysis

Question 12

market analysis is related to

Answer 12

statistical analysis

Question 13

the process of considering, evaluating, and pursuing market-based activities that are expected to be beneficial for the business

Answer 13

opportunity seeking

Question 14

essential in entrepreneur’s opportunity-seeking

Answer 14

entrepreneurial mind frame; entrepreneurial heart flame; entrepreneurial gut game

Question 15

This allows the entrepreneur to see things in a
very positive and optimistic way in the midst of difficult situation

Answer 15

entrepreneurial mind frame

Question 16

being a risk-taker, an entrepreneur can

Answer 16

find solutions when problems arise

Question 17

Entrepreneurs are driven by passion; they are
attracted to discover satisfaction in the act and process of discovery.

Answer 17

entrepreneurial heart flame

Question 18

entrepreneurs are driven by

Answer 18

passion

Question 19

the great desire of an entrepreneur to achieve his/her goals

Answer 19

passion

Question 20

This refers to the ability of the entrepreneur of
being intuitive.

Answer 20

entrepreneurial gut game

Question 21

entrepreneurial gut game is also known as

Answer 21

intuition

Question 22

the entrepreneurial gut game also means

Answer 22

confidence in one’s self and the firm belief that everything you aspire can be reached

Question 23

sources of opportuntiies

Answer 23

changes in the environment; technological discovery and advancement; government’s thrust, programs, and policies; people’s interest; past experiences

Question 24

ways to discover opportunities. Looking at the big picture,
some have noticed the emerging trends and patterns for business opportunities.

Answer 24

sources of opportunities

Question 25

Entrepreneurial ideas arise when changes happen in the external environment.

Answer 25

changes in the environment

Question 26

A person with an entrepreneurial drive views these changes

Answer 26

positively

Question 27

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

Answer 27

external environment

Question 28

the external environment includes

Answer 28

physical environment, societal environment, industry environment

Question 29

the physical environment includes

Answer 29

climate, natural resources, wildlife

Question 30

the weather conditions.

Answer 30

climate

Question 31

such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Answer 31

natural resources

Question 32

includes all mammals, birds, reptiles, fish, etc., that live in the wild.

Answer 32

wildlife

Question 33

the societal environment includes

Answer 33

political forces; economic forces; sociocultural forces; technological environment

Question 34

includes all the laws, rules, and regulations that govern business practices as well as the permits, approvals, and licenses necessary to operate the business.

Answer 34

political forces

Question 35

such as income level and employment rate.

Answer 35

economic forces

Question 36

customs, lifestyles and values that characterize a society.

Answer 36

sociocultural forces

Question 37

new inventions and technology innovations

Answer 37

technological environment

Question 38

the industry environment includes

Answer 38

competitors; customers; creditors; employees; government; suppliers

Question 39

one factor in the physical environment that can easily change is

Answer 39

climate

Question 40

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

Answer 40

technological discovery and advancement

Question 41

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

Answer 41

government's thrust, programs, and policies

Question 42

The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas

Answer 42

people's interest

Question 43

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

Answer 43

past experiences

Question 44

the forces of competitions model is also known as

Answer 44

five forces of competition

Question 45

An industry environment is a

Answer 45

competitive environment

Question 46

Regardless of what product or services you have, competition is

Answer 46

always present

Question 47

the act or process of trying to get or win something

Answer 47

competition

Question 48

the five forces of competition

Answer 48

buyers; potential new entrants; rivalry among existing firms; substitute products; supplier

Question 49

the ones that pay cash in exchange for your goods and services.

Answer 49

buyer

Question 50

the buyer has a

Answer 50

strong and magnified bargaining power

Question 51

example of the influence of buyers

Answer 51

price or bargaining strategy

Question 52

factors to notice that will lessen the threat of bargaining power

Answer 52

there are several suppliers available in the market; the buyer has the potential for backward integration; the cost of switching the supplier cost is minimal; the product represents the high percentage of the buyer's cost; the buyer purchases large portions of the seller's products or services

Question 53

defined as companies or businesses that have the ability to penetrate or enter into a particular industry.

Answer 53

new entrant

Question 54

if a business requires huge capital,

Answer 54

new entrants should decline to join the business

Question 55

factors to notice with regards to potential new entrants

Answer 55

substantial capital requirement; strict government policy; difficulty in accessing distribution channels; economies of scale; high cost of product differentiation; high switching cost

Question 56

a state or situation wherein business organizations are competing with each other in a particular market

Answer 56

rivalry

Question 57

The intensity of rivalry among existing firms is characterized to the following factors:

Answer 57

diversity of rivals; number of competing firms; characteristics of the products or services; increased capacity; amount of fixed costs; rate of industry growth

Question 58

that serves the same purpose as another product in the market

Answer 58

substitute

Question 59

A substitute product can give a big threat in the industry environment if the following factors are noticed:

Answer 59

switching cost is low; preferences and tastes of the customers easily change; product differentiate is highly noticeable; the quality of substitute products dramatically improves; the price of substitute product is substantially lower

Question 60

the one that provide something that is needed in business operations such as office supplies and equipment.

Answer 60

suppliers

Question 61

suppliers can be noticed if there is the presence of the following factors:

Answer 61

the supplier has the ability for forward integration; suppliers in the industry are few but sales volume is high; substitution products are not readily available in the market; the switching cost is very high; the product or service is unique

Question 62

factors used to measure the supplier power of an industry

Answer 62

number of suppliers; uniqueness; switching costs; forward integration; industry importance

Question 63

when few firms can give a company something it needs to stay in business, each has a greater negotiating power. they can raise prices or reduce quality without fear of losing business

Answer 63

the number of suppliers

Question 64

if a supplier provides a unique product or its not easy to find a substitute. it is more dominant. businesses can't easily switch to another supplier

Answer 64

uniqueness

Question 65

if it's costly or time consuming to switch suppliers, then they have more power. businesses are less likely to switch, even if prices increase

Answer 65

switching costs

Question 66

if suppliers can move into the buyer's industry, they have more power. they already have access to the necessary supplies, making it difficult for their former buyers to compete once they decide to enter the market themselves

Answer 66

forward integration

Question 67

some sectors are tightly intertwined, such as automotive suppliers and the major auto companies or the semiconductor and tech industries, which can balance the power between the suppliers and those in the sector. this is because the supplier needs these buyers to do well so that it can too. when a supplier can just as easily sell its products elsewhere, that gives it a great deal more power

Answer 67

industry importance