Test 1 (Ch. 1, 2, 4, 7, and 15) Flashcards
The process by which individuals– either on their own or inside organizations– pursue opportunities without regard to the resources they currently control. (opportunity focused, risk taking, innovative, and growth oriented)
entrepreneurship (1)
economy that relies on unskilled labor and the extraction of natural resources for growth
factor-driven economies (1)
economy that is growing and in need of improving their production processes and quality of goods produced
(ex: Argentina, Russia, South Africa)
efficiency-driven economies (1)
economy that is most advanced; are where businesses comet based on innovation and entrepreneurship
(ex: UK, Singapore, Israel, and US)
innovation-driven economies (1)
innovative
value-creating
growth-oriented
primary characteristics of high-impact entrepreneurial ventures (1)
activities that are unclear and subject to change as more information is obtained
fuzzy front end (1)
mechanism that drives an individual to become a nascent entrepreneur because all other opportunities for income appear to be absent or unsatisfactory
push (1)
mechanism that attracts an individual to an opportunity and creates a “burning desire” to launch a business and capture a market
pull (1)
gigantic companies were the norm
1960s (1)
1) macroeconomic turmoil
2) international competition
3) technological revolution
1970s (1)
business was in terrible shape; new, smaller, more flexible entrepreneurial manufacturers still generating jobs
1980s (1)
information age; “dot com” bubble
1990s (1)
knowledge economy; increased globalization
new millennium (1)
rapidly growing mass of information that companies and individuals are stockpiling and storing
big data (1)
the data that goes into the Internet every time we send a text, search a website, or tweet
data exhaust (1)
1) minimizing waste in time and resources
2) continuous improvement through experimentation and pivoting in new directions
3) systems thinking or looking at the big picture
lean thinking (1)
1) It takes a lot of money to start a business
2) It takes a great idea
3) The bigger the risk, the bigger the reward
4) A business plan is required for success
5) Entrepreneurship is for the young and reckless
6) Entrepreneurship cannot be taught
Myths of Entrepreneurship (2)
entrepreneurs who base their business from their home
home-based entrepreneur (2)
an entrepreneur who starts one business and then moves on to start another
serial/portfolio entrepreneur (2)
socially responsible businesses that typically focus on educational, religious, or charitable goals; often tax exempt
nonprofit entrepreneur (2)
entrepreneurship that occurs inside an existing organization
corporate entrepreneur (2)
model that waits for project champions to emerge and suggest new business opportunities
opportunistic model (2)
model that sprinkles resources throughout the organization to encourage innovation and entrepreneurship at all levels while establishing clear criteria for the selection of opportunities to pursue; ex: Google
enabler model (2)
model in which the company acts like an evangelist, assigning ownership of a project or new business creation and providing modest seed funding to test it (ex: DuPont)
advocate model (2)
model in which the company establishes formal organizations with dedicated funds and significant autonomy (ex: IBM)
producer model (2)
Find a mentor Build a professional network Learn about entrepreneurs Understand personality and business preferences Improve or acquire critical skills Study an industry
Steps when preparing to become an entrepreneur (2)
lack of confidence financial needs startup logistics personal or daily issues time constraints lack of skills
barriers to people becoming self-employed as entrepreneurs (2)
Emerging Growth Differentiation Shakeout Maturity Decline
Industry Life Cycle (4)
core assets and activities are not threatened
progressive change (4)
core activities are threatened
intermediating change (4)
core assets and activities are threatened
radical change (4)
core assets are threatened
creative change (4)
costs to produce have declined relative tot the price of their goods and services
economies of scale (4)
products and services with loyal customers who are not likely to switch easily to something new
brand loyalty (4)
cost of entering an industry
capital requirements (4)
buyers in most industries don’t readily switch from one supplier to another unless there is a compelling reason to do so; switching costs the buyer money and time
switching costs for the buyer (4)
new venture must persuade established distribution channel members to accept its new product or service and must prove that it will be beneficial to distributors
access to distribution channels (4)
where established firms hold patents on products and processes that the new venture requirers, they have the ability either to keep the new venture out of the industry or to make it ver expensive to enter
proprietary factors (4)
government can limit entry to an industry or market through strict regulation, licensing requirements, and by limiting access to raw materials via laws or high taxes and to retain locations by means of zoning restrictions
government regulations (4)
threat from substitutes
threat from buyers’ bargaining power
threat from suppliers’ bargaining power
competitive rivalry among existing firms
threats to entrepreneurs (4)
identify and profile the first customer
estimate potential demand front hat customer
identify subsequent customer segments that can be tapped later on to grow the company
goals of market research (4)
individuals or companies that hold the key to reaching particular customers; they control the flow of information
gatekeeper (4)
people who want to affect the purchase decision and whose approval is often required before a decision to purchase is made
influencers (4)
people who make the final decisions about purchases, usually for a company, and usually based on a budget
deciders (4)
those who have the actual authority to buy
purchasers (4)
the ultimate beneficiaries of the purchase
users (4)
direct, indirect, emerging/potential
types of competitors (4)
group of legal rights associated with patents, trademarks, copyrights, and trade secrets
intellectual property rights (7)
consists of a formula, device idea, process, pattern, or compilation of information that gives the owner a competitive advantage in the market place, is novel in the sense that it is not common knowledge, and is kept in a reasonably confidential state
trade secrets (7)
the court will order that the defendant stop violating your trade secret rights
injunctive relief (7)
paid for any economic harm you m ay have suffered
damages (7)
a symbol, logo, word, sound, color, design, or other device that is used to identify a business or a product in commerce
trademark (7)
protects original works of authors, composers, screenwriters, and computer programmers
copyrights (7)
gives the parent holder the right to defend the patent against other who would attempt to manufacture, use, or sell the invention during the period of the patent, which for most is 20 yrs from the date of application
patents (7)
moral code by which we live and conduct business derived from the cultural, social, political, and ethnic norms with which we were raised as children; the concept of right and wrong
ethics (15)
1) dogmatism
2) egoism
3) relativism
4) subjectivism
Adler’s 4 approaches to ethical issues (15)
occurs when a person’s private or personal interests clash with his or her professional obligations such that an independent observer might reasonably question whether the individual’s professional actions or decisions are influenced by personal gain, financial, or otherwise
conflict of interest (15)
operating a business in a way that exceeds the ethical, legal, commercial, and public expectations that society has of the business
social responsibility (15)
the fundamental beliefs that a company holds about what is important in business and in life in general
core values (15)
a company’s fundamental reason to be in business
purpose (15)
what brings everyone together to achieve a common objective and is closely related to the company’s purpose
mission (15)
means to execute strategies
tactics (15)
plans for achieving goals and, ultimately, accomplishing the mission
strategies (15)
