unit 2 Flashcards
thirteen characteristics of entrepreneurship
f. r.o.g. s.h.a.c. i.v. m.p.
- self-confident
- perceptive
- hardworking
- motivated
- resourceful
- able to manage risk
- creative
- goal-oriented
- optimistic
- flexible
- independent
- visionary
- able to get along with others
What is the difference between entrepreneurial characteristics and entrepreneurial skills?
entrepreneurial characteristics is something you develop entrepreneurial skills is having the ability do something specific (chef - cooking skills)
difference between an invention and innovation
invention - A product or process that does something that has never been done before. When the invented product or service fills a need, it can potentially be sold to consumers.
Innovation - An innovation requires using new technology, materials or processes to improve existing products or services or to create new production and distribution processes.
what is marketing
The action or business of promoting and selling products or services, including market research and advertising.
do a balance sheet
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do an income statement
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4 P’s of marketing
product, price, place, promotion
product
service done for customers
- Quality
- Design
- Features
- Benefits
- Service & Support
price
the cost of an item
- Perception of the product’s value in relation to price
- Cover costs and make a profit
place
Where the product will be sold
- How the product / service will get to the consumer
promotion
How will customers be made aware of the product or service
advertising, personal selling, sales promotion (coupons, contests, premiums, samples, and special events), sponsorship
2 c’s of marketing
competitive market
consumer market
competitive market
other businesses that have similar products and compete with us for consumer dollars
Direct Competition
- other sellers of products similar to ours
Indirect Competition
- other spending needs that may draw customer dollars away from our products
consumer market
The type of consumers who buy their products.
- Demographics
age, gender, family, life cycle, income, ethnicity and culture - Lifestyle
values, beliefs and motivations
channels of distribution
direct
indirect
specialty
direct distribution
the business that makes the product sells it directly to the consumer (e.g. at a farmer’s market, bakery, factory outlet store)
- allows for direct communication between producers and consumers (famers market)
indirect distribution
- the business sells to an intermediary who then sells the product to the consumer
- the intermediary could be a retailer, or it could be an importer or wholesaler who will then sell to a retailer
- intermediaries add to the cost of a product (winners, the bay)
specialty distribution
the consumer buys from a place other than a retail store (e.g. vending machine, catalogue)
what are the three types of logos
1) monogram
2) visual symbols
3) abstract symbols
what is a slogan
A short catchy phrase that is usually attached to the company’s name and logo.
What are the four main functions of management?
1) planning
2) controlling
3) leading
4) organizing
what are the three main leadership styles?
autocratic
democratic
laissez-faire
pros and cons of autocratic
pros:
- May be valuable in some types of business where decisions need to be made quickly and decisively
- keeps everyone on track
cons:
- Can create de-motivation and alienation of staff
- doesn’t involve other people’s decisions
pros and cons of democratic
pros:
- Encourages decision making from different perspectives
- Improves the sharing of ideas and experiences within the business
cons:
- Can delay decision making
- accountability
pros and cons of laissez-faire
pros:
- Can be very useful in businesses where creative ideas are important
- Can be highly motivational, as people have control over their working life
cons:
- Can make decision making time-consuming
- no one gets anything done
What are the benefits of assembly lines?
- get the job done quickly
- allow workers to specialize in certain fields which increases productivity
What is intellectual property?
a work or invention that is the result of creativity (a manuscript or a design) to which one has rights and for which one may apply for a patent, copyright, trademark
what are the 6 factors of production?
n.i.m.c.l.r. natural resources raw material labour capital information management
what are natural resources?
take materials out of the earth or sea, referred to as extractive industries
- water
what are raw materials?
only good used in the manufacturing of other goods (ingredients, supplies)
- chemicals, plastic
what is labour?
all physical and mental work need to make a good or service
- factory wokers
what is capital?
money invested in business (cash/equipment)
- machines
what is information?
info about customers, competition, political conditions
- donald trump – has his own company
what is management?
people who run the business and control or direct the factors of production
- bosses, managers
draw a traditional product life cycle
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draw three traditional product life cycles
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