Midterm 1

Question 1

definition of entrepreneurship

Answer 1

the art of turning an idea into a business and then pursuing opportunities

Question 2

what are the key elements to entrepreneurship?

Answer 2

opportunity, future, newness/innovative

Question 3

what are the key abilities entrepreneurs need?

Answer 3

identify a key problem and create a solution for it

Question 4

definition of idea

Answer 4

notion, thought, impression

Question 5

definition of opportunity

Answer 5

something allows us to create a need for a new product, service, or business

Question 6

what are the factors of a good opportunity?

Answer 6

1. attractiveness
2. timely
3. durableness
4. anchored to value-creating product/service

Question 7

a __ cannot be useless but a __ can

Answer 7

opportunity, idea

Question 8

what are the 4 opportunity trends

Answer 8

1. economic forces
2. social forces
3. technological advances
4. political / regulatory

Question 9

what are some examples of economic forces that can impact an opportunity?

Answer 9

disposable income, change in consumer spending patterns

Question 10

what are some examples of social forces that can impact an opportunity?

Answer 10

demographic changes, cultural changes, fashion/lifestyle changes

Question 11

what are some examples of technological advances that can impact an opportunity?

Answer 11

new tech, advancing tech

Question 12

what are some examples of political and regulatory forces that can impact an opportunity?

Answer 12

new laws and regulations, changes in political arena

Question 13

why do some problems go unsolved?

Answer 13

1. no market
2. societal forces can mask a problem
3. lack of imagination
4. economic forces may make a problem acceptable

Question 14

what is a social venture?

Answer 14

an opportunity that seeks to solve a social problem and provide a social good

Question 15

what makes an entrepreneur able to recognize an opportunity?

Answer 15

1. opportunity recognition
2. industry experience
3. cognitive differences (entrepreneurial awareness)
4. non industry connections
5. creativity (preparation, incubation, insight, evaluation)

Question 16

what are the 4 stages of feasibility analysis?

Answer 16

1. product / service feasibility
2. industry /target market feasibility
3. organizational feasibility
4. financial feasibility

Question 17

what are the two aspects of product / service feasibility that need to be looked at?

Answer 17

1. desirability
2. demand

Question 18

what is desirability?

Answer 18

does it make sense, would people like it, does it take advantage of a trend?

Question 19

what is demand?

Answer 19

talking face to face with potential customers, using online tools, library

Question 20

what is a concept test?

Answer 20

write down basics of what you want to create and show it to people who would be able to judge it

Question 21

what makes an industry more appealing?

Answer 21

1. young
2. early in their life
3. fragmented

Question 22

what are some aspects to look at when assessing an industry?

Answer 22

number of competitors, stage of industry life cycle, industry growth rate, importance of industry products

Question 23

what makes a target market attractive?

Answer 23

no hyper competition, large enough to make money but small enough not to be full of competitors

Question 24

what are some aspects to look at when assessing a target market?

Answer 24

barriers to entry, purchasing power of customers, ease of making customers aware of new product or service, growth potential of target market

Question 25

what is organizational feasibility?

Answer 25

determines whether a business has sufficient management expertise, resources to launch, organizational competence

Question 26

what are the two most important aspects of organizational feasibility?

Answer 26

1. management prowess 2. resource sufficiency

Question 27

what is management prowess?

Answer 27

the passion the group / individual has and the extent to which they understand the target market

Question 28

what is resource sufficiency?

Answer 28

availability of non financial resources

Question 29

what are some important things to consider when looking at non financial resources?

Answer 29

IP protection, labor pool

Question 30

what is financial feasibility?

Answer 30

overall financial attractiveness of the proposed venture

Question 31

what are some key aspects of financial feasibility?

Answer 31

initial capital investment, number of revenue drivers, time to break even, financial performance of similar businesses, ability to fund initial product development, initial start up expenses, total start up cash needed, degree of risk, opportunity cost

Question 31

what is a disruptive business model?

Answer 31

a model that does not fit in the norm (advertising, auction, franchise, freemium, low cost model, traditional retailer) yet it is impactful enough to change the way business is done in the industry

Question 32

what is a new market disruption? examples?

Answer 32

addresses a market that wasnt previously served. google adword and cannon small printers

Question 33

what is a low end market disruption? examples?

Answer 33

a firm in an industry improved to the point that they offer something better than what people need, an inferior low cost or a simple replacement. Southwest airlines

Question 34

what is the difference between innovative and disruptive?

Answer 34

innovation improves current markets and disruption penetrates new markets

Question 35

what are 4 aspects of the barringer / ireland business model template?

Answer 35

1. core strategy 2. resources 3. financials 4. operations

Question 36

what are 4 aspects of the core strategy?

Answer 36

mission basis of differentiation target market product / market scope

Question 37

what are the qualifications for a mission ?

Answer 37

1. describe the reason for being 2.. what makes company different 3. be risky and challenging but achievable 4. use a tone that represents company culture / values 5. convey passion 6. be honest

Question 38

what is a basis of differentiation?

Answer 38

explains why anyone would buy from our company over our competitors (ex: roller backpack relieves pain NOT available in 6 colors)

Question 39

what is a target market?

Answer 39

segment within larger market who represents niche or underrepresented groups

Question 40

what is the product / market scope?

Answer 40

a range that defines the products and markets on which a firm will concentrate

Question 41

what are the two aspects of resources?

Answer 41

core competencies key assets

Question 42

what are core competencies?

Answer 42

specific factor/capability that sets the firm a part from its competitors and supports the business model

Question 43

what are some examples of core competencies?

Answer 43

technical know how, expertise in a certain area such as product design, passion, high company morale

Question 44

what are key assets?

Answer 44

assets that a firm owns and enables business model to work

Question 45

what are examples of key assets?

Answer 45

equipment, vehicles, patents, trademarks, copyrights, cash, founders, key employees

Question 46

what are the main components of financials?

Answer 46

1. revenue streams 2. funding 3. cost structure

Question 47

what is a revenue stream? examples?

Answer 47

describes how the firm will make money. examples: ads, commissions, subscriptions

Question 48

what is a cost structure?

Answer 48

describes the most important costs incurred to support the business model

Question 49

explain the threefold approach to making a cost structure

Answer 49

1. identify whether business is cost or value driven 2. identify nature of business costs 3. identify businesses major cost categories

Question 50

what does the operations address?

Answer 50

how will we produce, who will we work with, how do we deliver

Question 51

what are the 3 aspects of operations?

Answer 51

1. production 2. channels 3. key partners

Question 52

what are examples of production?

Answer 52

how we deliver or make the product? do we have employees or contractors?

Question 53

examples of channels

Answer 53

store, online shop, app, show room