WEEK 2 Flashcards

1
Q

It is a way of thinking and
decision-making that is based on the idea
that entrepreneurs create their future by
taking action and making things happen.

It is a way of thinking that is focused on creating opportunities and solving problems by using the resources that are available to you, rather than making predictions and trying to plan for the future.

A

Effectuation

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2
Q

It is an idea with a sense of purpose – a desire to improve the state of the world and the lives of individuals by enabling the creation of firms, products, markets, services, and ideas.

A

Effectuation

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3
Q

5 Principles of Effectuation

A

Bird In Hand Principle
Affordable Loss Principle
Crazy Quilt Principle
Lemonade Principle
Pilot-in-the-plane Principle

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4
Q

Start with what you currently have. Who are you, what can you do, whom do you know, what other means and capabilities do you have access to right now?

A

Bird in Hand Principle

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5
Q

In much of the business world, the manager in charge of launching a new product analyses the market and chooses segments with the highest expected value. It is a natural reflex that is the result of years of training around a single mantra: maximize returns by selecting the optimal strategy for your target. Expert entrepreneurs turn this logic on its head—they think in terms of affordable loss rather than expected returns.

A

Affordable Loss Principle

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6
Q

They decide what they are willing to lose rather than what they expect to make.

A

Affordable Loss Principle

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7
Q

It is the focus on building partnerships rather than beating competitors.

A

Crazy Quilt Principle

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8
Q

It is the ability to turn the unexpected into the profitable. Expert entrepreneurs learn not only to work with surprises but also to take advantage of them. In most contingency plans, surprises are bad—the worst-case scenarios.

A

Lemonade Principle

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9
Q

Control the controllable. Psychological research suggests that an enormous range of human behaviours relate to control striving in some way and are intrinsically linked to healthy human functioning, Focus on activities that are within your control and therefore have a better chance of bringing desired results. An effectual worldview is rooted in the belief that the future is made.

A

Pilot-in-the-plane Principle

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10
Q

Effectuation isn’t a static, one-time exercise. It is a logic and process that can be used as the firm develops in the “0-60mph” (early startup) phase of growth. Expert entrepreneurs follow the process to gain early customers and committed partners who then create new means and new goals as resources and viewpoints are added to the mix.

A

Effectual Cycle

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11
Q

The entrepreneur’s means provide the starting point. The action begins in earnest when the entrepreneur begins interacting with people

Sometimes the starting point of that interaction is an idea, a provisional goal the entrepreneur uses to initiate the interaction.

Sometimes the interaction is specifically initiated in the terms of “what can we do?” as the entrepreneur determines possibilities together with the person she interacts with.

A

Effectual Cycle

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12
Q

-Filipino Chinese business tycoon and entrepreneur
-Most famous for founding the SM Malls, the Philippines’ largest and leading group of malls
-He is also dubbed as the “Father of Philippine Retailing” due to owning the largest group of malls in the country

A

Henry Sy Sr.

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13
Q

14 Life Principles Of Henry Sy Sr.

A
  1. Strive to be a leader in your chosen field.
  2. Be a person of Integrity
  3. Have a long term vision and strategy.
  4. Focusing means concentrating and prioritizing.
  5. Have great passion to achieve.
  6. Work hard
  7. Be patient and persevere
  8. Recognize opportunity
  9. Be optimistic
  10. Be confident
  11. Be disciplined
  12. Build your organization
  13. Make it your mission to provide employment
  14. Social responsibility is important
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14
Q

It is adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future.

A

The 2030 Agenda for Sustainable Development

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15
Q

At its heart are the ________________ , which are an urgent call for action by all countries - developed and developing - in a global partnership. They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.

A

17 Sustainable Development Goals (SDGs)

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16
Q

17 UN SDGS

A
  1. No Poverty
  2. Zero Hunger
  3. Good Health and Well-being
  4. Quality Education
  5. Gender Equality
  6. Clean Water and Sanitation
  7. Affordable and Clean Energy
  8. Decent Work and Economic Growth
  9. Industry, Innovation, and Infrastracture
  10. Reduced Inequality
  11. Sustainable Cities and Communities
  12. Responsible Consumption and Production
  13. Climate Action
  14. Life Below Water
  15. Life on Land
  16. Peace, Justice, and Strong Institutions
  17. Partnerships for the Goals
17
Q

SM’s Path to Sustainable Growth (5)
Wherever SM operates:

A
  1. We provide Inclusive Economic Opportunities
  2. We Facilitate Development
  3. We Promote Environmental Sustainability
  4. We Create Positive Community Impact
  5. We Drive Sustainable Growth
18
Q

It allows you to enjoy greater security in your life. If you have cash set aside for emergencies, you have fallback should something unexpected happen. And, if you have savings set aside for discretionary expenses, you may be able to take risks or try new things.

A

Savings

19
Q

Importance of Saving

A

-Makes you financially Independent
-No need to take Loans and pay interest to Financial Insititutions
-Helpful in Emergency times.
-Lead a Stress-free life.

20
Q

It is simply a spending plan that takes into account estimated current and future income and expenses for a specified future time period, usually a year.

A

Budget

21
Q

It can help you set a long-term financial goals, keep you from overspending, help shut down risking spending habits, and more.

A

Budgeting

22
Q

Refers to creating a plan to spend your money, whereas the spending plan is the budget. Creating a spending plan allows you to determine whether you will have enough money to do activities you wish to and prioritize your task spending accordingly

A

Budget

23
Q

4 Types of Budgeting

A
  1. Incremental budgeting
  2. Activity-based budgeting
  3. Value proposition budgeting
  4. Zero-based budgeting
24
Q

Takes last year’s actual figures and adds or subtracts a percentage to obtain the current year’s budget. It is the most common type of budget because it is simple and easy to understand. _______________ is appropriate to use if the primary cost drivers do not change from year to year.

A

Incremental Budgeting

25
Q

It is a top-down type of budget that determines the amount of inputs required to support the targets or outputs set by the company. For example, a company sets an output target of $100 million in revenues. The company will need to first determine the activities that need to be undertaken to meet the sales target, and then find out the costs of carrying out these activities.

A

Activity-based Budgeting

26
Q

It is a mindset about making sure that everything that is included in the budget delivers value for the business. _________________ aims to avoid unnecessary expenditures - although it is not as precisely aimed at that goal as our final budgeting option, zero-based budgeting.

A

Value Proposition Budgeting

27
Q

One of the most commonly used budgeting method. It starts with the assusmption that all department budgets are zero and must be rebuilt from scratch. Managers must be able to justify every single expense. No expenditures are automatically “okayed”. It is very tight, aiming to avoid any and all expenditures that are not considered absolutely essential to the company’s successful (profitable) operation. This kind of bottom-up budgeting can be a highly effective way to “shake things up”.

A

Zero-based Budgeting