midterm 1 Flashcards
What is Entrepreneurship?
The act of creating, organizing, and managing a business venture along with its risks to make a profit
What are the Key Traits of entrepreneurship?
- Innovation
- Risk-taking
- the ability to seize opportunities
What is a Small Business?
- Typically owner-operated
- focuses on local or niche markets
- has limited resources and revenue
What is the growth goal of a small business?
steady, sustainable growth
What is a Start-up?
- Organizations designed to grow rapidly
- often with scalable and innovative business models
- usually in technology sectors
What is the objective of a startup?
Seeks to disrupt existing markets or create new ones
What is Opportunity Recognition?
Identifying gaps or opportunities in the market
What is Feasibility Analysis?
Assessing the viability of the opportunity through market research and financial analysis
What is Business Planning?
Developing a business plan to outline the strategy, market approach, and financial projections
What is Resource Acquisition?
Securing funding, talent, and partnerships to support the business
What is Scaling and Growth?
- Expanding operations
- entering new markets
- increasing the customer base
What is a Business Model?
Outlines how a company creates, delivers, and captures value. It encompasses all aspects of a business, from target customers to revenue streams
What is a Business Model Canvas?
A tool to visualize and structure business models, consisting of nine building blocks
What are the building blocks of the business model canvas?
- Customer segments
- Value propositions
- Customer relationships
- Channels
- Revenue streams
- Key resources
- Key activities
- Key partnerships
- Cost structure
What are Customer Segments?
- Demographic
- Geographic
- Behavioral
- Psychographic
- The question that needs to be answered: Who is your target and what problem do they need fixed?
What are Value Propositions?
The question that needs to be answered: What distinctive value does your solution provide?
What are Customer Relationships?
How will you get your target?
What are Channels?
How will you get to your target?
What are Revenue Streams?
How will you generate revenue?
What are Key Resources?
What resources do you need to deliver?
What are Key Activities?
What will you do?
What are Key Partnerships?
What will they do?
What is Cost Structure?
What costs are necessary to create value?
What is Customer Discovery?
The process of understanding the needs, problems, and behaviors of potential customers before launching a product.
What is Validation?
Testing the business model assumptions by gathering customer feedback to refine the product/service offering.
What is Innovation?
The process of creating new value through products, services, processes, or business models.
What categories are the Ten types of innovation divided into?
- Offering
- Configuration
- experience
what is Better World Fashion (BWF)?
- A Danish sustainable fashion company with a mission to disrupt the fashion industry by creating leather products using recycled materials
- sources leather from NGOs like the Red Cross, turning old garments into new jackets and bags
- offers a buy-back program allowing customers to return products for discounts on future purchases
what type of business model does BWF use?
Circular Business Model - Emphasizes sustainability and resource efficiency by using second-generation inputs (98%) to create high-quality, environmentally friendly products.
what is BWF’s Competitive Advantage?
- combines sustainability, high product quality, and customization
- certifications (B Corporation and the Project Just Seal of Approval) enhancing its credibility
what is BWF’s Market and Target Audience?
- The primary market is Denmark, with sales expanding to other countries, including Germany, Norway, Sweden, and the U.S.
- The target demographic includes eco-conscious consumers aged 25 and above who seek premium and sustainable products.
what is BFW’s Customer Engagement?
- builds emotional connections with customers through its app, which tracks each jacket’s history and allows users to add their own stories - This feature supports customer loyalty and reinforces the brand’s sustainable mission.
what are some of BWF’s challenges?
- Consumer Perceptions:
- Many consumers are not fully aware of the environmental benefits of circular fashion, leading to resistance in paying premium prices for sustainable products
- Market Education:
- BWF must work to educate and convince consumers about the advantages of their products and the importance of sustainability.
what are some future opportunities for BWF?
- Product Expansion:
- BWF plans to diversify its product range beyond jackets and bags, possibly including footwear and accessories.
- Geographic Expansion:
- The company plans to tailor marketing strategies and product designs to local preferences to grow its international presence in large markets like the U.S. and Asia
- Marketing and Partnerships:
- BWF is enhancing its marketing efforts, including collaborations with influencers and events to raise brand awareness and connect with a broader audience.
