Management Chapter Six – Flashcards
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entrepreneurship
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the process by which enterprising individuals initiate, manage, and assume the risks and rewards associated with a business venture
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small business
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a business having fewer than 100 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices
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entrepreneurial venture
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a new business having growth and high profitability as primary objectives
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entrepreneur
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an individual who establishes a new organization without the benefit of corporate sponsorship
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intrapreneurs
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new venture creators working inside big companies
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entrepreneurs
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use networks of contacts more than the formal authority of a management hierarchy
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entrepreneurs
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often rent or use assets on a temporary basis rather than owning them
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intrapreneurs
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corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea
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entrepreneur
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high in creativity and innovation, high in general management skills, business know-how, and networks
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inventor
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high in creativity and innovation, low in general management skills, business know-how, and networks
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promoter
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low in creativity and innovation, low in general management skills, business know-how, and networks
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manager (or administrator)
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low in creativity and innovation, high in general management skills, business know-how, and networks
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organization
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Sometimes a founder's greatest achievement (idea) was the ______.
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economic dislocations
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i.e. booms and failures, maybe causing rising oil prices
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franchising
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an entrepreneurial alliance between a franchisor and a franchisee
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franchisor
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an innovator who has created at least one successful store and wants to grow
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franchisee
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a partner who manages a new store of the same type in a new location
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transaction fee model
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companies charge a fee for goods or services
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advertising support model
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charging fees to advertise on a site
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intermediary model
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charging fees to direct site visitors to other companies sites
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affiliate model
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sites pay commissions to other sites to drive business to their own sites
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subscription model
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website charges a monthly or annual fee for site visits or access to site content
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transaction fee model
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charging fees for goods and services
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advertising support model
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charging fees to advertise on a site
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intermediary model
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charging fees to bring buyers and sellers together
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affiliate model
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charging feels to direct the visitors to other companies' sites
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subscription model
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charging fees for site visits
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side street effect
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as you head down a road, unexpected opportunities begin to appear
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cutting-edge, better
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You don't always need _____ technology. Sometimes you can just do things _____ than your competitors.
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newness and smallness
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two major liabilities of start-ups
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failure
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more the rule than the exception
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business incubators
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protected environments for new small businesses
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mortality
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the founder's death, which can determine the success of the venture
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succession
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one of the biggest issues that comes with mortality
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initial public offering (IPO)
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sale to the public, for the first time, of federally registered and underwritten shares of stock in the company
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initial public offering (IPO)
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offers a way to raise capital through federally registered and underwritten sales of shares in the company
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initial public offerings
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You "go public" through these.
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opportunity analysis
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a description of the good or service, and assessment of the opportunity, an assessment of the entrepreneur, and specification of activities and resources needed to translate your idea into a viable business and your source(s) of capital
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business plan
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a formal planning step that focuses on the entire venture and describes all the elements involved in starting it
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opportunity analysis
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focuses on the opportunity, not the entire venture
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opportunity analysis
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provides the basis of deciding whether to act
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viability, guides, financing
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Purposes of the Business Plan: it helps determine the _____ of your enterprise, it _____ you as you plan and organize, and it helps you obtain _____.
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the people, the opportunity, the competition, the context, risk and reward
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the five key planning elements
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legitimacy
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people's judgment of a company's acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values
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social capital
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a competitive advantage from relationships with other people and the image other people have of you
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networks
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Social capital is a part of _____.
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skunkworks
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a project team designated to produce a new, innovative product
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bootlegging
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informal work on projects, other than those officially assigned, of employees own choosing and initiative
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entrepreneurial orientation
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the tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services
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risky, overrelying
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Managing intrapreneurship is _____ since there is the chance of _____ on a single project.
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independent action, innovativeness, risk taking, proactiveness, competitive aggressiveness
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five tendencies of entrepreneurial orientation
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independent action
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when the organization grants individuals and teams the freedom to exercise their creativity, champion promising ideas and carry them through to completion
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innovativeness
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when the firm supports new ideas, experimentation, and creative processes that can lead to new products or processes and is willing to depart from existing practices and venture beyond the status quo
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risk taking
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when the organization is willing to commit significant resources and perhaps borrow heavily to venture into the unknown
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proactiveness
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when the organization acts in anticipation of future problems and opportunities, maybe changing the competitive landscape while other firms merely react
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competitive aggressiveness
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when the firm tends to challenge competitors directly and intensely to achieve entry or improve its position (has a competitive tendency to outperform its rivals in the marketplace)
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build support
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When engaging in corporate entrepreneurship, it is important to _____ for your ideas.
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academic definition of entrepreneurship
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the process by which individuals pursue opportunities without regard to resources they currently control
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Stevenson and Jarillo
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Who came up with the academic definition of entrepreneurship?
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academic
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Which definition of entrepreneurship did Stevenson and Jarillo come up with?
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venture capitalist
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Which definition of entrepreneurship did Fred Wilson come up with?
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Fred Wilson
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Who came up with the venture capitalist definition of entrepreneurship?
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venture capitalist definition of entrepreneurship
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the art of turning an idea into a business
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entrepreneurs
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_____ assemble and then integrate all the resources needed - the money, the people, the business model, the strategy - to transform an invention or an idea into a viable business.
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salary-substitute firms
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firms that basically provide their owner or owners a similar level of income to what they would be able to earn in a conventional job
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lifestyle firms
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firms that provide their owner or owners the opportunity to pursue a particular lifestyle, and make a living at it
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entrepreneurial firms
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firms that bring new products and services to the market by creating and seizing opportunities regardless of the resources they currently control
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women, minorities, seniors, immigrants
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four demographics that have increased the entrepreneur population
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ideas, business opportunities
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It is easier to generate _____ than real _____.
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entrepreneurial strategy matrix
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helps entrepreneurs think about their venture and decide whether it suits their particular objectives
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entrepreneurial strategy matrix
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helps identify effective and ineffective strategies by showing high/low innovation and high/low risk
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value chain
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the string of activities that moves a product from the raw material stage, through manufacturing and distribution, and ultimately to the end user
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value chain analysis
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helpful in identifying opportunities for new businesses and in understanding how business models emerge
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direct sales
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another internet sales possibility (mentioned on slides)
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market, organizable, copy
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Questions to Ask to See if Your Ideas are Opportunities: Does a real _____ exist? Is it _____? Can others immediately _____ it?
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business model
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used to include all the activities that define how a firm competes in the marketplace
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business model
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a firm's plan or diagram for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it generates
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core strategy, strategic resources, partnership network, customer interface
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four components of a business model
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core strategy
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composed of business mission, product/market scope, and basis for differentiation
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strategic resources
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composed of core competencies and strategic assets
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partnership network
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composed of suppliers, partners, and other key relationships
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customer interface
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composed of target customer, fulfillment and support, and pricing structure
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business model
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constantly asks "does this business make sense?"
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business model
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focuses attention on how all the elements of a business fit together and constitute a working whole
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business model
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describes why the network of participants needed to make a business idea viable are willing to work together
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business model
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articulates a company's core logic to all stakeholders, including the firm's employees
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corporate entrepreneurship
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the conceptualization of entrepreneurship at the firm level
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corporate entrepreneurship
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the conceptualization of entrepreneurship at the firm level
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corporate entrepreneurship
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the conceptualization of entrepreneurship at the firm level
