M3 Flashcards
Moving from an idea to an entrepreneurial firm
Describe Business Context
Same as business environment?
What is a feasibility analysis?
A feasibility analysis is the process of determining if a business idea is viable.
Business model – what is it, what is it made of,
- A firm’s plan/ diagram for how it competes, uses its resources, structures its relationships,
integrates with customers, and creates value to sustain itself on the basis of the profits it earns
● Long-term success requires business model modification over time
Describe Canvas Model
Consists of: * Customer Segments * Value Proposition * Channels * Customer Relationships * Revenue Streams * Key Resources * Key Activities * Key Partnerships * Cost Structure 4C, 3K, 2 specials
Describe Timmons Model
Focus on a balance between Resources, The Team and The Opportunity. The Opportunity is only as good as the team executing it. Minimize and control rather than Maximize and own. It highlights an iterative approach towards the business opportunity.
Business plan – what is it, what is the role of
business plan
A business plan is a narrative describing what new business intend to accomplish and how it intends to do so. There is two purposes of a business plan.
- Inside the company it helps to develop a “road map” to follow in strategic execution
- Outside it acquaints potential investors and other stakeholders with the business opportunity the firm pursue, and how it will pursue the opportunity.
What are the 4 elements of a PEST analysis? And describe each with a sentence.
The PEST analysis consists of four elements which are;
- Political factorss. Government stability, policies, regulation of trade, new laws etc
- Economic factors. Inflation, interest, market trends, imports/exports regulations and tax laws
- Social factors. New interests ( trends), education, violence, population, wealth distribution
- Technological. New technology for the company, competing technology, opportunity for innovation, speed of growth
What is the VRIN framework?
Certain resources give the business a competitive advantage. These have the VRIN characteristics, which can be discovered by focusing on four essential qualities:
- Valuable resources. Help to find and implement effective strategy, exploit opportunities and minimize threat
- Rare resources. Not widely available to competitors. (A good location for a store e.g.)
- Imperfectly imitable resources. Hard to copy.
Non-suitable resources. There cannot be strategically equivalent substituts for this resource that are valuable but not rare nor imperfectly imitable
What are the parts of a feasibility analysis?
*Product/service feasibility analysis which consists of;
- Desirability
- Concept test
- Concept statement
- Product/service demand
*Industry/target market feasibility analysis
- Industry attractiveness (young industries rather than old, early rather than late in their lifecycle, fragmented rather than concentrated)
- Target market attractiveness
*Organizational feasibility analysis
- Management prowess (förmåga), to which extent does the entrepreneur/management team understands firms participation markets
- The new venture team (the group of founders, key employees and all individuals helping a new business in start up-years)
- Resource sufficiency ( does the venture has/is capable of obtaining sufficient resources to move forward, focusing on nonfinancial resources.)
- Financial feasibility analysis
- The financial component of comprehensive feasibility analysis (total start-up cash needed)
When should a feasibility analysis be conducted?
After recognizing an opportunity and before writing a business plan.
Why is a Business Model important?
o It serves as an ongoing extension of feasibility analysis
o It focuses attention on how all business elements fit together and make a whole
o It helps a business view itself in context to other businesses and see if they are differentiated
o It articulates a company’s core logic to all stakeholders, including firm employees
(This is only some examples)
What’s the differences between a Standard and a Disruptive Business Model
A standard business model(common, been around for long) depict or reveal plans or recipes firms can use to determine how they will create, deliver and capture value for stakeholders.
A Disruptive Business Model are impactful enough that they disrupt or change the way business is conducted in an industry or in an important segmentor niche of an industry. New Market Disruption(Google), Low-End Market Disruption(Ryanair)
Explain what a business environment is
It is the sum total of all internal and external factors that influence a business
