Midterm Flashcards
Name the critical success factors
Achieving financial performance Meeting customer needs Gaining employee commitment Encourage innovation and creativity Building quality products and services Building distinct and competitive advantage
What does SWOT stand for?
Strengths
Weaknesses
Opportunities
Threats
The internal parts of the diamond-e framework (strengths and weaknesses)
Management preferences
Organization
Resources
Strategy
External forces of diamond-e framework (opportunities and threats)?
PEST
Porters 5 Forces
What is management preferences of diamond-e
The managers vision, preferences, biases, they control based off their opinion
What is the organization part of the diamond-e
The company’s culture, capabilities, and structure
Skills, talents and company focus
What is the resources part of the diamond-e?
Human, capital, financial
Employees capabilities, assets (capital) and money to spend
What is an external analysis?
The process of scanning and evaluating the external environment
What is a general environment and which model do you use for it?
What all businesses face, you use the PEST model
What is a specific environment and what model would you use for it?
Affects the people in the specific industry and you use the Porters 5 forces model
What are the PEST factors?
Political-legal
Economical
Social
Technological
What is the political-legal factors?
Laws, regulations, taxes, trades
What are the economic factors?
Inflation/deflation
Interest
Employment rates
Economic growth
What are the social factors?
Customs, values, attitudes, demographics
What are the technological factors?
Internet, information technologies, isn’t limited to computers and informations
What are the Porters 5 Forces
Competitors Substitutes Potential entrants Suppliers Buyers
What does the porters five Forces model do?
Predict the industry profitability and if company should enter the industry
What is the competitors part of the PFF
The most powerful force, rivalry against firms who sell something similar
Substitutes part of the PFF
Products that do a similar job, creates a price ceiling and increases cost of marketing
-should try to lock in customers and make yourself distinct
Potential entrants of PFF
New, future competitors that can cause big changes and intensify the competition
Buyers part of the PFF
The people who BUY your product
- There could be few buyers, low switching costs so you could for an alliance with other sellers to lock in customers
- partnering with 2 or more firms
What does an entrepreneur do?
Identify an opportunity and access the resources to capitalize on it
What is the entrepreneurship process
It’s influenced by PEST, generated ideas, weed out the bad ones and ensure you have a good idea with a competitive advantage
What are the 3 components of the screening process
The idea creates/ adds value to the customer
The idea is unique
The idea is financially worthwhile
What is the idea adds value part of the screening process
Solves a problem, meets a need and they are willing to pay for it
What is the unique part of the screening process
It is different from existing products and substitutes, it can’t be easily copied
What is the viable part of the screening process
If it’s financially worthwhile, if there are enough customers to buy it, can you overcome the barriers to entry, what forces are there
What are the components of a high potential good idea for a venture
Product is valuable, unique and has a recurring revenue Market is reachable and growing Competition is not that good There are many suppliers to switch to Few substitutes You have networks and little competition
What are the 3 components of accessing resources
Bootstrapping
Debt vs. Equity
Crowdfunding
What is the bootstrapping part of accessing resources
Making do with as little as possible
What is the debt vs equity part of the accessing resources
Debt: borrowing money from financial institutions and suppliers (with interest)
Equity: savings, love money, investors
What is the crowdfunding part of accessing resources
Getting money/ support from a lot of people vs just one
-if you invest they get something back
What does a social entrepreneurship do?
Generate social value while operating with financial discipline
Not for products; social value, solving a problem
Key facets of social entrepreneurship?
- help overcome market inequities and failures
- markets don’t address all societal needs
- seek innovative solutions to the worlds wicked problems
- can’t rely on donors and government funding
What are dual stakeholders? From the social entrepreneurship
People who serve and support
Who does a social entrepreneurship serve?
Serving the underserved, who can’t afford it access service
How does a charity fund their work?
Through donations, not self sustaining
How do social enterprises sustain themselves and what are examples of some
Sell their products or services in order to reinvest their profits
-ex. Habitat for humanity, TOMS, SOS
What is the objective of citing sources and APA formatting
You do not want to unintentionally plagiarize, make clear what your contribution is and how you build on prior work, show that you have done research and build off others work, make it easier for reader to go back to resources
What are the 3 components of incorporating sources?
- summary- general overview
- paraphrase
- quotation
What is the general guideline for citing sources and APA formatting
Provide author name/ organization
Title
Date when document was published
Location(URL, page number)
What is the strategy part of the diamond -E
The plan to pursue opportunities or avoid threats, must be internally and externally consistent
Describe a small business
Fewer than 100 employees
Lead when it comes to innovation
Describe a new venture
Recently formed organization that produces goods or services for sale
New if it has been operating within 12 months
What is an entrepreneur
A person that accepts the risks and opportunity involved in creating and operating a new venture
