THE ENTREPRENEUR AND HIS STRATEGIES Flashcards
is a quid pro quo influencing process. The leader
utilizes rewards and coercive power to get people doing what the leader wants them to do.
Transactional Leadership
Transformational Leadership
is based on charisma, vision, values and an emotional appeal to influence
other people.
is an ideal and
unique image of the future that reflects shared values to which one should aspire.
Vision
brief, clear, abstract, challenging, future oriented, stable and it should have
the ability to inspire.
A good vision should
is a brief description of why a company or nonprofit organization exists.
A Mission Statement
This figure gives an overview of the environmental factors each firm has to consider to develop a
viable business strategy.
The External Environment
business consists of the society, the economy, the ecology, politics,
and technology.
The Macro-Environment
of a firm a characterized by two features:
Internal Conditions
The resource basis available to a firm consists of the total of tangible resources and intangible
resources.
Resources
Combining the firm’s external environment and its internal conditions creates a matrix that helps
the business owner to develop a strategy for dealing with future events and for developing the own business.
THE SWOT ANALYSIS
Potential Threats
ü Entry of new competitors
ü Weak economy
ü Costly new regulatory requirements
ü Change in buyer needs, trends, fashions, or technology
Threats
Potential Opportunities
ü New trends or new technologies
ü New foreign markets due to falling trade barriers
ü Internet bandwidth
ü Alliances
Opportunities
a detailed set of instructions to follow in order to solve a problem or achieve something. It
also refers to a sequence of steps that must be taken for a strategy to succeed.
Action Plan
– intended future achievements including a description how they will be achieved.
Development Plan
– a condition or circumstance that puts a company in a favorable or superior
business position.
Competitive Advantage
