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Management > Using Internal and External Analysis to Assess New Business Ideas > Flashcards

Using Internal and External Analysis to Assess New Business Ideas Flashcards

1
Q

Entrepreneurs can look for needs in the marketplace and then determine how to use their own capabilities to pursue those opportunities.

A

Outside-In Approach

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2
Q

Entrepreneurs can first evaluate their capabilities and then identify new products or services they might be able to offer to the market.

A

Inside-Out Approach

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3
Q
  • General Environment
  • Industry Environment
  • Competitive Environment
A

Outside-In Analysis Considerations

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4
Q

The broad environment, encompassing factors that influence most businesses in a society.

A

General Environment

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5
Q

The environment that includes factors that directly impact a given firm and all of its competitors.

A

Industry Environment

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6
Q

The environment that focuses on the strength, position, and likely moves and countermoves of competitors in an industry.

A

Competitive Environment

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7
Q
  • Economic trends
  • Politicallegal trends
  • Sociocultural trends
  • Global trends
  • Techological trends
  • Demographic trends
A

The General Environment

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8
Q
  • Changes in the rate of inflation
  • Interest rates
  • Currency exchanged rates
A

Economic Trends

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9
Q
  • Societal currents that may affect customer demand
  • Opening up new markets and forcing others into decline.
A

Sociocultural Trends

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10
Q
  • Changes in tax law and government regulations that may pose a threat to existing companies or devastate an inventive business concept.
A

Politicallegal Trends

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11
Q

Reflect international developments that create new opportunities to expand:

  • Markets
  • Outsource
  • Invent abroad
A

Global Trends

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12
Q

Developments that grow out of these spawn or wipe out many new ventures. Developments:

  • The creation of high-quality, affordable, virtual-reality hardware that could radically transform entertainment and communications.
  • The Internet of things, which connects and combines the limited computing power embedded in devices in the home and office to make advanced automation possible.
  • The fast-falling price of 3-D printing, which makes the creation of just about any suitable product possible, as well as fast, inexpensive, and completely customizable
  • The exponential growth and availability of data collected online, or big data, that make high-powered analytics and decision making faster and less expensive.
A

Techological Trends

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13
Q
  • Population size
  • Age structure
  • Ethnic mix
  • Wage distribution
A

Demographic Trends

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14
Q
  • Threat of new competitors
  • Threat of substitute products or services
  • Intensity of rivarly among existing competitors
  • Bargaining power of suppliers
  • Bargaining power of buyers
A

The Industry Environment: 5 Factors that determine the nature ad degree of competition in an industry.

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15
Q

The five factors that determine the nature and degreee of competition in an industry weigh equally with the potential attractiveness and _____ of a target industry.

A

Profitability

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16
Q

Entrepreneurs who understand industry influences can better identify:

A

High Potential Startup Opportunities

17
Q

It is important to determine the strength, position, and likely responses of rival businesses to newcomers.

A

The Competitive Environment

18
Q
  • Who would be the new venture’s current competitors?
  • What unique resources do they control?
  • What are their strengths and weaknesses?
  • How will they respond to the new venture’s decision to enter the industry?
  • How can the new venture respond?
  • Who else might see and exploit the same opportunity?
  • Are there ways to co-opt potential or actual competitors by forming alliances?
A

Several questions about the competitors like to be encountered in the marketplace

19
Q

A further step in analyzing the competition. To identify the thinking that _____ their rivals’ moves, which is often based on the assumption that business must operate in a certain way because they always have.

  • Example: Blockbuster vs Netflix- if things aren’t done differently, companies are left vulnerable.
A

Shapes

20
Q
  • Building on internal resources and capabilities
  • Core competencies and competitive advantage
A

Inside-Out Analysis

21
Q

The basic inputs that an entrepreneur can use to start and/or operate a business.

  • Cash for investment
  • Knowledge of critical technologies
  • Access to essential equipment
  • Capable business partners
A

Resources

22
Q

Those organizational resources that are visible and easy to measure.

  • An office building
  • Manufacturing equipment
  • Cash reserves
A

Tangible Resources

23
Q

Those organizational resources that are invisible and difficult to assess.

  • intellectual property
  • a favorable reputation
  • network of contacts and relationships
A

Intangible Resources

24
Q

A company’s routines and processes that coordinate the use of its productive assets in order to achieve desired outcomes.

A

Capabilities

25
Q

Are often used interchangably, but are not the same.

A

Resources and Capabilities

26
Q

Do not work on their own.

A

Resources

27
Q

Those capabilties that distinguish a firm competitively and reflect its focus and personality.

  • Make it possible to achieve competitive advantage
A

Core Competencies

28
Q

A benefit that exists when a firm has a product or service that is seen by its target market as better than that of competitors.

A

Competitive Advantage

29
Q

An assessment that provides a concise overview of a firm’s strategic situation. This integrates Internet and Externaly Analyses.

  • Strengths
  • Weaknesses
  • Opportunities
  • Threats
A

SWOT Analysis

30
Q

Because SWOT analysis focuses on the _____, the entrepreneur needs to consider whether the targeted opportunity will lead to other opportunities in the future.

A

Present

Management (33 decks)

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