Unit 3 Questions Flashcards
What are the typical characteristics of entrepreneurs
• Internal locus of control
• High energy level
• High need for achievement
• Tolerance for ambiguity
• Self-confidence
• Passion and flexible
• Self-reliant and desire for independence
What are the different myths about entrepreneurs
• Entrepreneurs are born, not made.
• Entrepreneurs are gamblers.
• Money is the key to entrepreneurial success.
• You have to be young to be an entrepreneur.
• You must have a degree in business to be an entrepreneur.
Describe the life cycle of an entrepreneurial firm
- Birth Stage: Establishing the firm, getting customers, finding the money. (Fighting for existence and survival)
- Breakthrough stage: Working on finances, becoming profitable, growing. (coping with growth and takeoff)
- Maturity Stage: Refining the strategy, continuing growth and managing for success (investing wisely and staying flexible)
Explain the reasons small businesses fail.
• Lack of experience
• Lack of expertise
• Lack of strategy and strategic leadership
• Poor financial control
• Growing too fast
• Insufficient commitment
• Ethical failure
Explain the planning process (steps)
• Define your objectives.
• Develop premises regarding future conditions.
• Analyze and choose among action alternatives.
• Implement the plan and evaluate results.
What is the difference between contingency and scenario planning?
Contingency
• Identifying alternative courses of action that can be implemented if circumstances change.
Scenario
• A long-term version of contingency planning. • Identifying alternative future scenarios.
• Plans made for each future scenario.
• “worst-case” and “best-case” scenarios
Explain SMART goals. How could you apply this in your life?
•Set specific goals.
•Make sure goals are measurable.
•Ensure goals are attainable.
•Goals must be referred to regularly.
•Goals must be timely.
Choose several companies and explain their competitive advantage
• Competitive advantage — operating with an attribute or set of attributes that allows an organization to outperform its rivals.
What is a companies mission? Explain in detail
Employees: We respect the individuality of each employee, creativity and productivity are encouraged, valued, and rewarded.
Communities: We are commited to being caring and supportive corporate citizens within the worldwide communities in which we operate.
- Suppliers: We think of our suppliers as partners who share our goal of highest quality.
- Customers: We are committed to providing superior value in our products and services.
- Shareholders: We are dedicated to performing in a manner that will e chance returns on investments
What are the different levels of strategies? Explain
• Corporate strategy: sets long-term direction for the total enterprise
• Business strategy: identifies how a division or strategic business unit will compete in products or services
• Functional strategy:guides activities within one specific area of operations
What is SWOT? Do a SWOT analysis for a company you know well
Strengths
• Manufacturing efficiency?
• Skilled workforce?
• Good market share?
• Strong financing?
• Superior reputation?
Weaknesses
• Outdated facilities?
• Inadequate research and development?
• Obsolete technologies?
• Weak management?
Opportunities
• Possible new markets?
• Strong economy?
• Weak market rivals?
• Emerging technologies?
Threats
• New competitors?
• Shortage of resources?
• Changing market tastes?
• Substitute products?
Explain the different master strategies
Growth strategies
• seek an increase in size and the expansion of current operations.
Stability strategy
• maintains current operations without substantial
changes.
Renewal strategy
• tries to solve problems and overcome weaknesses that are hurting performance.
Combination strategy
• pursues growth, stability, or retrenchment
Explain Porter’s model
Industry competition
• Rivalry among firms and their competitive behaviour
New entrants
• the threat of new competitors entering the market
Substitute products or services
• the threat of substitute products or services
• Suppliers –can influence price
• Customers –what they are willing to pay for products
Explain how licensing works. Provide an example of where you see it today.
One of the easiest ways for an inventor to capitalize on his/her invention or innovation is to license it. Licensing means that the inventor allows another business to use his/her invention for a fee. This fee (royalty) can either be a fixed amount or it can be a percentage of the total sales revenue that the user pays the patent or copyright owner
Develop an idea, invention or innovation. Explaing the stages your product or service
would go through. (stages of development)
1.Idea -maybe a new idea or a better one to enhance a product/service
2.Idea screening– test some ideas, what is the competitive market like?
3.Concept development – possibly designing a prototype
Eg. Bendable phones
4.Market strategy – market research target market
5. Feasibility study –materials, pricing, costs of ads, promotion, distribution, packaging and other design costs.
6. Product design – take into account preferences of target market- eg. Sleek, thin, wide screen phones –trendy
7. Test Marketing – is there acceptance of product in a small market
8. Market entry – launch product to the market -
