MGT253 Study Guide - Flashcards

question

Pure Fix Cycles, the company profiled in the opening feature of Chapter 1, was launched by four co-founders and sells _____________

answer

Fixed gear, single speed bikes

question

Which of the following is an accurate characterization of interest in entrepreneurship?

answer

There is tremendous interest in entrepreneurship across the world.

question

According to the Global Entrepreneurship Monitor (GEM) 2013 survey, about ___________ percent of adults in the United States are either starting a business or are running a business that has been in existence for less than 3 1/2 years.

answer

12.7

question

According to the Global Entrepreneurship Monitor (GEM) 2013 study, the majority of people in high income countries are drawn to entrepreneurship _______________.

answer

To take advantage of an attractive opportunity

question

Which of the following statements regarding survival rates of entrepreneurial firms in the United States is correct?

answer

As high as 50 percent after four years.

question

Cody Rogers is the founder of a company named Extreme Sports Apparel. The company makes apparel products for extreme sports enthusiasts such as rock climbers, triathletes, skateboarders and BMX bikers. Cody wants his company to pursue a high level of corporate entrepreneurship. To achieve that goal, Cody's firm should be __________.

answer

Proactive, innovative and risk taking

question

Google is a firm that is proactive, innovative and risk taking. From this description, we can most likely conclude that Google has a high level of ____________.

answer

Entrepreneurial intensity

question

Apple is an established firm that encourages and emphasizes entreprenurial behavior throughout various divisions. According to the textbook, Apple practices __________ Entrepreneurship.

answer

Corporate Entrepreneurship

question

According to the opening feature on Pure Fix Cycles, one of the biggest challenges the startup now faces is an increasingly competitive marketplace.

answer

TRUE

question

According to the results of the GEM 2013 survey, about 1 out of every 8 American adults is actively engaged in starting a business or is the owner/manager of a business that is less than 3 1/2 years old.

answer

TRUE

question

According to reliable statistics, 9 out of 10 businesses fail in their first few years of existence.

answer

FALSE

question

Entrepreneurship is the process by which individuals pursue opportunities within the constraints of the resources they control.

answer

FALSE- WITHOUT REGARD TO RESOURCES

question

Established firms with an entrepreneurial emphasis are proactive, innovative and risk-taking.

answer

TRUE

question

What is entrepreneurship? What is the essence of entrepreneurial behavior?

answer

- Entrepreneurship is the process by which individuals pursue their oppurtunities without regard to the resources they currently control. - The essence of entrepreneurial behavior is opportunities ideas and putting useful ideas into place.

question

Describe three primary reasons that people become entrepreneurs and start their own firms.

answer

The three primary reasons that people become entrepreneurs and start their own firms are to 1) be their own boss -this reason of being one's own boss is given most commonly. many entrepreneurs have long ambition for starting their own businesses and are tired/frustrated with their traditional workplace. 2) pursue their own ideas - some people are naturally alert, and when they realize ideas for a new product/service, they want to see their new ideas realized. 3) realize financial rewards - pursuing rewards is typically secondary to the first two reasons

question

Three primary reasons that people become entepreneurs and start their own firms are to:

answer

1) be their own boss 2) pursue their own ideas 3) realize financial rewards

question

According to the textbook, the number one reason that people become entrepreneurs is to

answer

Be their own boss

question

Kasey Stevenson is starting a firm in the women's clothing industry primarily to pursue financial reward. According to the textbook, starting a business to make a lot of money __________.

answer

Often fails to live up its hype

question

The number one reason that people become entrepreneurs is to pursue financial rewards.

answer

FALSE

question

According to the textbook the four characteristics of successful entrepreneurs are ______________.

answer

1) passion for the business 2) tenacity despite failure, 4)product/customer focus, 3) and execution intelligence

question

The number one characteristic shared by successful entrepreneurs is ___________.

answer

A passion for the business.

question

According to the textbook, the passion that motivates people to launch entrepreneurial firms stems from the entrepreneurs belief that the business will_________.

answer

Positively influence people's lives. --- real passion

question

Which of the following was not identified in the textbook as one of the five primary reasons passion is important for the launch of a successful entrepreneurial organization?

answer

The ability to stick to a plan even when faced with evidence that changes are needed.

question

The what Went Wrong? feature in Chapter 1 focuses on Prim, a failed startup in the laundry industry. According to this feature, Prim failed largely as a result of _________.

answer

a lack of passion and resolve

question

Stacey Wills, who is a heard craftsperson, recently started a firm to manufacture a new innovative blender. Stacey's desire is to sell her food blender to as many people as possible because she firmly believes in the merits of her product. Stacey's story best illustrates which of the following characteristics or attributes of a successful entrepreneur?

answer

Product/Customer focus --- passion to innovate people's lives

question

Alex and patty Webb launched a firm several years ago and have been particularly successful in introducing new products to the marketplace. One thing that Alex and Patty are particularly good at is translating their thoughts, creativity and imaginations into products that reach the marketplace. The ability to make this happen is most closely related to which of the following business characteristics of successful entrepreneurs?

answer

Execution intelligence- "translating thoughts"

question

The Savvy Entrepreneurial Firm feature in Chapter 1 focuses on Pandora, the internet music streaming company. The feature's main purpose is to illustrate the importance of ___________ as a key characteristic of the founders and employees of entrepreneurial firms.

answer

Tenacity despite failure- try even tho 0 npv for a little

question

The number one characteristic shared by successful entrepreneurs is passion for the business.

answer

TRUE

question

The four main characteristics of successful entrepreneurs are: passion for the business, execution intelligence, product/customer focus, and tenacity despite failure.

answer

TRUE

question

The passion that entrepreneurs generally have typically stems from the ability to pursue their own ideas.

answer

FALSE- passion, doesnt focus on resources

question

Describe the four main characteristics of successful entrepreneurs.

answer

The four main characteristics of successful entrepreneurs are: 1) Passion for the business -This passion typically stems from the entrepreneur's belief that the business will positively influence people's lives 2) Product/Customer focus - This characteristic underscores two of the most important elements in any business-products and customers 3) tenacity despite failure -Because entrepreneurs are typically trying something new, the failure rate associated with their efforts is naturally high. The litmus test for entrepreneurs is their ability to persevere through setbacks and failures. 4) Execution intelligence -The ability to effectively execute a business idea means developing a business model, putting together a new venture team, raising money, establishing partnerships, managing finances, leading and motivating employees, and so on.

question

Which of the following is not one of the five myths about entrepreneurs?

answer

Entrepreneurs are tenacious

question

According to the textbook, entrepreneurs are _________.

answer

Moderate risk takers

question

Which of the following was not identified in the textbook as one of the common traits and characteristics of entrepreneurs?

answer

Pessimistic disposition

question

Suppose you are a Small Business Development Center counselor and you're looking at the personality profiles of five potential entrepreneurs. Based on the profiles, which individual has the most desirable mix of personal characteristics to become a successful entrepreneur.

answer

Candidate A: visionary, energetic, moderate risk taker

question

Which of the following is not a personality trait or characteristic common among entrepreneurs?

answer

Short attention span

question

Which of the following statements is correct regarding entrepreneurial activity and age ranges?

answer

The highest percentage of entrepreneurs falls in the 30-39 range.

question

Which of the following statements is incorrect regarding entrepreneurial activity and age range?

answer

The majority of business founders have no prior work experience.

question

According to Chapter 1, investors often cite the _______ as their most important criterion in the decision to fund new ventures.

answer

strength of the entrepreneur

question

According to Chapter 1, a sentiment that venture capitalists often express is that ________.

answer

they would rather fund a strong entrepreneur with a mediocre business idea than fund a strong business idea w a mediocre entrepreneur.

question

Pacific Fishing LLC is a startup that is working on a new technology for the fishing industry. Because the technology it's working on is highly proprietary, the company is located in the warehouse district of a large western city. Pacific's founder, Ray Sims, rarely gives interviews and is careful to not divulge much about what the company is doing. Which of the following common myths about entrepreneurs does the behavior of its founder, Ray Sims, dispel?

answer

Entrepreneurs love the spotlight- myth bc ray should be passionate

question

According to the consensus of the research, some people are genetically predisposed to be entrepreneurs.

answer

FALSE

question

Entrepreneurs are usually moderate, rather than high, risk-takers.

answer

TRUE- medium

question

Entrepreneurs are motivated primarily by money.

answer

FALSE

question

According to the textbook, there are three types of startup firms:

answer

1) lifestyle firms 2) salary substitute firms 3) entrepreneurial firms

question

Colorado Sandwich, Soup and Salad is a casual dining restaurant that has been owned by Stephanie Peterson for the past 14 years. The restaurant offers a menu that is typical for casual dining restaurants and affords Stephanie a level of income that is similar to what she would earn in a conventional job. According to the textbook, Colorado Sandwich, Soup and Salad is an example of a(n) ________ firm.

answer

salary-substitute

question

Montana Sky Trails leads multiday outdoor adventure trips for private groups and corporate clients to various locations across Montana. The company was started by Justin Smith, an individual that gave up a prestigious job in banking because Montana Sky Trails better accommodates his personal lifestyle. Montana Sky Trails is an example of a(n) ________ firm.

answer

lifestyle- erin tate aspen snowmass

question

Entrepreneurial firms ________.

answer

bring new products and services to market by creating and seizing opportunities

question

According to the textbook, Dropbox, Facebook, and LinkedIn are examples of ___________ firms.

answer

Entrepreneurial firms

question

The Partnering for Success feature in Chapter 1 focuses on start up incubators and accelerators. According to the feature, participating in a start-up incubator or accelerator is an excellent way to _____________.

answer

Gain access to mentors, partners and investors

question

In terms of "types" of startup firms, entrepreneurial firms bring new products and services to the market.

answer

TRUE

question

Identify the three types of startup firms, and discuss how they differ. Provide examples of each type of firm.

answer

1) Salary-Substitute firms -Salary-substitute firms are small firms that afford their owners a level of income similar to what they would earn in a conventional job. Examples of salary-substitute firms are dry cleaners, convenience stores, restaurants, accounting firms, retail stores, and hairstyling salons 2) lifestyle firms - . Lifestyle firms provide their owner or owners the opportunity to pursue a particular lifestyle and earn a living while doing so. Examples of lifestyle firms include ski instructors, golf pros, and tour guides. 3) Entrepreneurial firms - bring new products and services to market by creating and seizing opportunities. There are many examples of entrepreneurial firms in computer software, biotechnology, and medical devices.

question

Which of the following statements is not true about women-owned businesses in the United States?

answer

The number of women-owned businesses is decreasing.

question

There has been ________ in the number of minority entrepreneurs in the United States over the past several years

answer

a substantial increase---- beaners MIAMI

question

Which of the following was not given in the textbook as a reason for the increase in the number of senior entrepreneurs?

answer

Seniors tend to be more passionate about new business ideas than middle-aged or younger prospective entrepreneurs-------- dad not motivated anymore

question

According to a recent Gallop survey, about ________ percent of kids in grades 5-12 say they plan to start their own business.

answer

40% --- hen wouldve been one

question

Over the past 10 years, the demographic makeup of entrepreneurial firms has remand stable in the United States and around the world.

answer

FALSE- translation from product to service economy

question

Although interest in entrepreneurship remains high nationwide, the number of women-owned businesses is decreasing.

answer

FALSE- high fiiiiive

question

Unfortunately, statistics show that there is very little interest in entrepreneurship among young people in the United States.

answer

FALSE

question

As new products that are better than the existing generation of products are introduced, sales normally increase because the new products provide consumers increased value or worth. This process, which is called ________, stimulates economic activity, which is a good thing for the economy.

answer

Creative destruction

question

In the book The Theory of Economic Development, ________ argued that entrepreneurs develop new products and technologies that, over time, make current products and technologies obsolete. This process is called creative destruction.

answer

Joseph Schumpeter- Inventor of theory of economic development

question

According to the textbook, entrepreneurship has historically had ________.

answer

A major impact on the economy or society

question

________ is the process of creating something new, which is central to the entrepreneurial process.

answer

Innovation

question

In regard to patent activity (issuance), which of the following statements is correct?

answer

Small businesses outperform their larger counterparts.

question

Joseph Schumpeter argued that entrepreneurs develop new products and technologies that over time make current products and technologies obsolete, and this process, which he called creative destruction, is good because it stimulates economic activity.

answer

TRUE

question

Innovation is the process of creating something new, which is central to the entrepreneurial process.

answer

TRUE

question

Small businesses outperform their larger counterparts in terms of patent activity (issuance).

answer

TRUE

question

Identify and discuss the three primary reasons that entrepreneurial behavior has a strong impact on the United States.

answer

1) Innovation -Innovation is the process of creating something new, which is central to the entrepreneurial process. According to the Small Business Administration (SBA) Office of Advocacy, small innovative firms are 16 times more productive than large innovative firms in terms of patents per employee. 2) Job creation - In regard to job creation, according to the SBA, small businesses create a substantial number of new jobs in the United States. Firms with 500 or fewer employees create 65 percent of new jobs on an annual basis.

question

Which of the following is the correct sequence for the four steps in the entrepreneurial process?

answer

1) Deciding to become an entrepreneur 2) Developing successful business ideas 3) Moving from an idea to an entrepreneurial firm, 4) Managing the growing entrepreneurial firm.

question

Which of the following is not one of the four steps of the entrepreneurial process?

answer

Determining how to seize the spotlight.

question

An event that prompts an individual to become an entrepreneur, such as losing a job, inheriting money, or accommodating a certain lifestyle, is referred to as a(n) ________.

answer

triggering event

question

Jan Berry recently received a $500,000 inheritance from her maternal grandmother. Jan decided to use the money to start a business. According to the textbook, the inheritance that Jan received was the ________ that prompted her to start a business.

answer

triggering event

question

A(n) ________ is a written document that describes all the aspects of a business venture in a concise manner.

answer

business plan

question

A firm's ________ is a plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the value it creates.

answer

business model

question

The entrepreneurial process consists of four steps: 1) Deciding to become an entrepreneur 2) developing successful business idea 3) move the idea to an entrepreneurial firm 4) divesting or selling firm

answer

FALSE

question

iCracked, the company profiled in the opening feature of Chapter 2, was started by AJ Forsythe and Anthony Martin, two California college students. Through personal experiences, the two discovered that an opportunity existed to start a company that would ________.

answer

repair iphones inexpensively and conveniently

question

A(n)________ is a favorable set of circumstances that creates need for a new product service or idea.

answer

opportunity

question

According to the textbook, opportunities are ________.

answer

tough to spot

question

An opportunity has the following four essential qualities ________.

answer

1) attractive 2)timely 3)durable and 4) anchored in a product, service or business that adds value for its buyer or end user

question

Brad Johnson is starting an upscale men's clothing store in a mall near Seattle. He wants to open his store during the time period in which a business like his can realistically enter the new market. Brad is trying to open his business while the ________ is open.

answer

window of opportunity

question

The term "window of opportunity," as discussed in Chapter 2, is a metaphor that describes the time period in which a firm can ________.

answer

realistically enter a new market

question

Which of the following is correct regarding opportunities and ideas?

answer

It is important to discern whether a particular idea meets the criteria for an opportunity.

question

A(n) ________ is a favorable set of circumstances that creates the need for a new product, service, or business. A(n) ________ is a thought, an impression or a notion.

answer

opportunity; idea

question

Jessica Smith is thinking about starting a chain of fitness centers for young adults ages 18-30. Which of the following is not an appropriate criterion for Jessica to test her idea against?

answer

note: NOT Determine whether a fitness center for young adults ages 18-30 meets the threshold of being a good idea.

question

An idea is a favorable set of circumstances that creates a need for a new product, service, or business.

answer

FALSE- opportunity

question

An opportunity has four essential qualities. It is (1) rare, (2) attractive, (3) timely, and (4) anchored in a product, service, or business that creates or adds value for its buyer or end user.

answer

TRUE

question

The term "window of opportunity" is a metaphor describing the time period in which a firm can realistically raise money.

answer

FALSE

question

An idea is a thought, impression, or notion. It may or may not meet the criteria of an opportunity.

answer

TRUE

question

Describe the difference between an idea and an opportunity. Why is the distinction important?

answer

An opportunity is a favorable set of circumstances that creates a need for a new product, service or business. An opportunity has four essential qualities. It is (1) attractive, (2) durable, (3) timely, and (4) is anchored in a product, service, or business that creates or adds value for its buyer or end user. In contrast, an idea is a thought, impression, or notion. It may or may not meet the criteria of an opportunity. This distinction between an idea and an opportunity is important because many entrepreneurial ventures fail not because the entrepreneurs that launched them didn't work hard, but rather because there was no real opportunity to begin with.

question

Three ways to identify an opportunity include__________.

answer

1) Observing trends 2) Solving a problem 3) finding gaps in the marketplace

question

GasBuddy and GasPriceWatch.com are companies started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of these companies?

answer

Economic forces- bc cheaper gas

question

Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs?

answer

1) Interest rates 2) Consumer spending 3) level of disposable income

question

Which of the following is not an example of a social force?

answer

a change in interest rates

question

An increased focus on health and wellness has resulted in a number of new business ideas including healthier foods and beverages, yoga instruction and training centers and nutrition consulting. An increased focus on health and wellness is an important ______ that is creating opportunities in many areas for entrepreneurial firms.

answer

social force - white

question

The increasing number of social networks on the internet is attributed to a jump in the number of people who are wanting to connect with another online. This increasing number of social networks is an important ________ trends.

answer

Social

question

Hulu.com allows people to watch television shows and movies on the Internet. Hulu.com's business opportunity was made possible by ________ that enhanced the ability of television shows and movies to be uploaded to the Internet and played by anyone with a suitable computer and an Internet connection.

answer

Technological advances

question

If a new firm was launched to help businesses comply with The Affordable Care Act, that opportunity was created by ________.

answer

political actions and regulatory changes - government subsidiaries

question

SafetyWeb is a Web-based service that helps parents protect their children's online reputation, privacy, and safety. Which of the following approaches to identifying an opportunity (gap) was most likely the impetus for SafetyWeb?

answer

Solving a problem

question

The Savvy Entrepreneurial Firm feature in Chapter 2 focuses on a technique through which entrepreneurs can learn about emerging trends. The technique focused on in the chapter is

answer

Social media

question

Casey Griggs is a very capable computer engineer. Recently, he noticed a problem that computer engineers have, and thought of a solution to the problem that might represent an opportunity for a new product software. Casey's idea for a new software product is an example of a(n) __________ discovery.

answer

serendipitous- (surprise)

question

Clothing boutiques and specialty shops often start because there is a need for a particular product, but large retailers like Wal-Mart and Costco can't sell enough of the item to stock it on their shelves. If a clothing boutique started to sell designer clothes or clothing for hard-to-fit people because the clothing wasn't being offered by a larger retailer, the best way to describe how that idea was recognized is ________.

answer

Finding a gap in the marketplace

question

In 2000, Tish Cirovolo realized that there were no guitars on the market made specifically for women. As a result, she started Daisy Rock Guitars, a company that makes guitars just for women. Daisy Rock Guitars are stylish and come in feminine colors, and incorporate design features that accommodate a woman's smaller hand and build. The best way to describe how Cirovolo's business idea was recognized is ________.

answer

Finding a gap in the marketplace

question

A common way that gaps in the marketplace are recognized is ________.

answer

When people frustrated because they cant find a product or service that they need and recognize that other people feel the same way.

question

The three ways to identify an opportunity include observing trends, solving a problem and finding gaps in the marketplace.

answer

TRUE

question

Economic factors, social factors, technological advances, and political action and regulatory changes are the most important trends to follow in trying to identify opportunities.

answer

TRUE

question

Many new businesses are successful by taking advantage of fads.

answer

FALSE

question

Aging of the population, the increasing diversity of the workplace, and the continual migration of people from small towns and rural areas to cities are important economic trends.

answer

FALSE

question

Describe the three separate ways that entrepreneurs identify new business, product, and service opportunities?

answer

1) Observing trends The first approach to identifying opportunities is to observe trends and study how they create opportunities to pursue. Economic forces, social factors, technological advances, and political action and regulatory changes are the most important trends to follow. 2) Solving problems -The second approach to identifying opportunities is solving a problem. Sometimes identifying opportunities simply involves noticing a problem and finding a way to solve it. These problems can be pinpointed through observing trends and through more simple means (e.g., intuition, serendipity, or chance). 3) Finding gaps in the marketplace This approach is accomplished by finding a need that customers have that is not being satisfied-by either large, established firms or entrepreneurial ventures. Large retailers like Wal-Mart, Costco, and Home Depot compete primarily on price by serving large groups of customers with similar needs. They do this by offering the most popular items targeted towards mainstream consumers. While this approach allows the large retailers to achieve economies of scale, it leaves gaps in the marketplace. Entrepreneurs step in to start businesses to fill these gaps. There are also gaps in the marketplace that represent consumer needs that aren't being met by anyone.

question

The What Wrong feature in Chapter 2 focuses on Everpix, a company that enabled users to organize and store photos online in an innovative manner. Regrettably, Everpix failed. According to the feature, Everpix's failure resulted from that fact that it's founders ________.

answer

they spent too much time and energy perfecting their service at the expense of building a business.

question

Which of the following statements is INCORRECT regarding the personal characteristics of entrepreneurs.

answer

Several studies show that prior experience of an industry actually blinds an entrepreneur to the recognition of new opportunities in the same industry.

question

The ability to notice things without engaging in deliberate search is referred to as

answer

Entrepreneurial alertness

question

Kelly Pryor, who has launched several successful entrepreneurial firms, seems to have a "sixth sense" that allows him to see opportunities that others miss. Kelly's ability is referred to as

answer

Entrepreneurial alertness

question

Which of the following statements is incorrect in regard to entrepreneurial alertness?

answer

The research findings on entrepreneurial alertness are conclusive. - not true

question

According to the textbook, research results over time consistently suggest that somewhere between ________ percent of those who start businesses got their ideas through social contacts

answer

between 40 and 50

question

An individual who identifies a business idea on his or her own is referred to as a(n) ________ entrepreneur.

answer

Dolo

question

A network entrepreneur is an individual who identifies his or her business idea ________.

answer

through social contacts (networking)

question

A solo entrepreneur is an individual who identified his or her business idea ________. A network entrepreneur is an individual who identified his or her business idea ________.

answer

on their own; through social contacts

question

________ relationships are characterized by frequent interactions that form between coworkers, friends, and spouses.

answer

Strong tie

question

Most of Sarah's ideas come from interacting with coworkers, friends, her spouse, her parents, and other people that share the same beliefs that she does. Sarah is getting most of her ideas through ________ relationships.

answer

strong tie

question

Alex has a number of casual acquaintances that he interacts with infrequently. The relationships that Alex has with these people are referred to as ________ relationships.

answer

weak tie

question

According to research in this area, it is more likely that an entrepreneur will get a new business idea through _________ relationship than the alternatives.

answer

weak tie

question

________ is the process of generating a novel or useful idea.

answer

Creativity

question

Which of the following represents the correct order of the five stages of the creative process?

answer

1) Preparation 2) incubation 3) insight 4) evaluation 5) elaboration

question

Macy is a very creative person. Often, when trying to generate a novel or useful idea, she spends several days "mulling over" the idea, which is her way of thinking it through, at both the conscious and unconscious level. The stage of the creative process that Macy is in while she is mulling over an idea is referred to as ________.

answer

Incubation- whip

question

In the five-stage creative process, the flash of recognition, or what is sometimes referred to as the "eureka" experience, occurs in the ________ stage.

answer

Insight

question

In the five-stage creative process, the stage in which the creative idea is put into final form is referred to as the ________ stage.

answer

elaboration

question

Several studies have shown that prior experience in an industry helps entrepreneurs recognize business opportunities.

answer

TRUE

question

Opportunity recognition may be an innate skill or cognitive process.

answer

TRUE

question

Weak-tie relationships are characterized by infrequent interaction and ties between casual acquaintances.

answer

TRUE

question

It is more likely that an entrepreneur will get a new business idea through a strong-tie than a weak-tie relationship.

answer

FALSE

question

The five stages of the creative process include preparation, incubation, insight, evaluation, and elaboration.

answer

TRUE

question

Incubation is the stage of the creative process during which an idea is subjected to scrutiny and analyzed for its viability.

answer

FALSE- mulling

question

Evaluation is the stage of the creative process during which the idea is put into its final form.

answer

FALSE- elaboration

question

Describe the difference between strong-tie and weak-tie relationships. Is it more likely that an entrepreneur will get new ideas through strong-tie or weak-tie relationships?

answer

Strong-tie relationships are characterized by frequent interaction and form between coworkers, friends, and spouses. Weak-tie relationships are characterized by infrequent interaction and form between casual acquaintances. According to research in this area, it is more likely that an entrepreneur will get a new business idea through a weak-tie than a strong-tie relationship because strong-tie relationships, which typically form between like-minded individuals, tend to reinforce insights and ideas the individuals already have. Weak-tie relationships, on the other hand, which form between casual acquaintances, are not as apt to be between like-minded individuals, so one person may say something to another that sparks a completely new idea.

question

_________ is (are) used to generate a number of ideas quickly.

answer

Brainstorming

question

Which of the following is not one of the rules for a formal brainstorming session?

answer

The session is used for decision making

question

The number one rule for a brainstorming session is ________.

answer

No criticism allowed.

question

According to the textbook, a focus group is a gathering of 5 to 10 people who are selected because ________.

answer

of their relationship to the issue at hand

question

According to the textbook, the best approach to utilizing a library for entrepreneurship-related research is to ________.

answer

discuss your general area of interest with a reference librarian

question

An example of a valuable library resource is IBISWorld, which is a(n) ________.

answer

database of industry related information

question

To make sure that its customers are satisfied and to probe for new product ideas, Intuit routinely sends employees to the facilities of their customers. This technique for generating new business ideas is called ________.

answer

day-in-the-life research

question

Brainstorming is used to generate a number of ideas quickly.

answer

TRUE

question

Brainstorming sessions are designed to move slowly, so ideas can be presented and evaluated.

answer

FALSE

question

Focus groups typically involve a group of people who are unfamiliar with a topic and are brought together to respond to questions.

answer

FALSE

question

Describe how brainstorming can help facilitate the generation of ideas, and outline the four rules for conducting a brainstorming session.

answer

: Brainstorming is a technique that is used to generate a number of ideas quickly. Among the purposes a brainstorming session could be used for include the generation of new business, product, or service ideas. In a brainstorming session, the leader of the group of people is instructed to come up with ideas-one person shares an idea, another person reacts to it, another person reacts to the reaction, and so on. A flip chart is typically used to record all the ideas. A productive session is freewheeling and lively. The main objective is to create an atmosphere of enthusiasm and originality where lots of ideas are generated. The four strict rules of brainstorming are as follows: 1. No criticism allowed 2. Freewheeling is encouraged-- the more ideas the better 3. The session moves quickly, and nothing is permitted to slow down the pace. 4. Leapfrogging is encouraged. This means using one idea as a means of jumping forward.

question

Describe how library and Internet research can be used to generate new business ideas.

answer

Library and internet research are important tools for generating business ideas. A natural tendency s to think that an idea should be chosen, the process of researching the idea and should then begin. This approach is too linear. Often the best ideas emerge when the general notion of an idea, like creating casual electronic games for adults, is merged with extensive library and internet research, which might provide insights into the best types of casual games to create. The best approach to utlizing a library is to discuss your general area of interest with a reference librarian, who can point you to useful resources, such as industry-specific magazines, trade journals and industry reports. Simply browsing through several issues of a trade journal can spark new ideas. Internet research is also important. If you are starting from scratch, simply typing "new business ideas" into google or yahoo! will produce links to newspaper and magazine articles about the "hottest" and "latest" new business ideas. If you have a specific idea in mind. A useful technique is to set up a Google email alert using keywords that pertain to your topic of interest. The interenet can also be useful for specific searches and to access blogs that provide insightful information on almost any topic.

question

A(n)______ is a physical or digital repository for storing ideas.

answer

Idea bank

question

Which of the following is an example of how to encourage creativity at the organizational level?

answer

Elevate creativity's importance throughout the organization.

question

An idea bank is a physical or digital repository for storing ideas.

answer

TRUE

question

Creativity and innovation are almost identical concepts.

answer

FALSE

question

LuminAid, the company profiled in the opening feature of Chapter 3, was started to produce solar pillows, which are solar powered devices that are simple and can be easily and affordably shipped to disaster locations. The feature describes how LuminAid sought to validate its business idea. According to the feature ________.

answer

LuminAid did an exemplary job, validating its business idea, and its solar pillow is now

question

___________ is the process of determining whether a business idea is viable.

answer

Feasibility analysis

question

________ reasearch is research that is collected by the person or persons completing the analysis. ________ research probes data that is already collected.

answer

Primary (yourself), secondary (research already done)

question

Cynthia Jones recently surveyed 200 of her classmates to get a sense of the demand for a new software product she is working on. Collecting data via a survey you administer yourself is referred to as ________ research.

answer

primary

question

Talking to industry experts, obtaining feedback from prospective customers, and administering surveys are examples of ________ research.

answer

primary (yourself)

question

Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of ________ research.

answer

Secondary

question

Jennifer Burroughs is thinking about starting a firm in the upscale women's fashion industry. To get a full appreciation of the competitive nature of the industry, and how she might position her products, Jennifer has spent considerable time looking at industry-related publications, Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues. Jennifer is conducting ________ research.

answer

secondary - jessica conducting research from data already existed

question

Which of the following is not one of the four areas of feasibility analysis discussed in the textbook?

answer

Societal feasibility

question

Feasibility analysis is the process of determining if a business idea is viable.

answer

TRUE

question

A feasibility analysis is the assessment of a potential product or service idea rather than a potential business.

answer

FALSE- process of determining if business idea is viable

question

The four forms of feasibility analysis include: 1) Product/service feasibility 2) industry/target market feasibility 3) organizational feasibility 4) financial feasibility

answer

TRUE

question

Primary research probes data that is already collected

answer

FALSE

question

Census Bureau data, analyst forecasts, and other pertinent information gleaned through library and Internet research are examples of primary research.

answer

FALSE- primary done w new data

question

Describe the purpose of feasibility analysis. When should a feasibility analysis be conducted relative to opportunity recognition and the development of a business plan?

answer

Feasibility analysis is the process of determining if a business idea is viable. As a preliminary evaluation of a business idea, a feasibility analysis is completed to determine if an idea is worth pursuing and to screen ideas before spending resources on them. Feasibility analysis follows the opportunity recognition stage but comes before the development of a business plan.

question

________ feasibility is an assessment of the overall appeal of the product or service being proposed.

answer

Product/Service

question

The two components of product/service feasibility analysis are ________ and ________.

answer

Product/service desirability; product/service demand

question

Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environmental trend, solve a problem, or fill a gap in the marketplace? These are the types of questions asked during the ________ feasibility component of a complete feasibility analysis.

answer

product/service

question

Which of the following is not a part of assessing the product/service feasibility of a business idea?

answer

analyzing industry attractiveness

question

A(n) _________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability and purchase intent.

answer

Concept test

question

Which of the following is typically not included in a concept statement?

answer

A description of how much money the new venture needs

question

Tracy Brady is in the process of developing an exciting new product in the smartphone industry. She'd like to show a preliminary description of the product to industry experts and prospective customers to solicit their feedback. Tracy should complete and distribute a(n) ________ statement.

answer

Concept statement

question

Which of the following is an incorrect approach to administering a concept test?

answer

The best candidates to distribute a concept statement should be to friends and family.

question

A/B split testing, landing pages, prototyping services, and Web site usability testing are all online tools available to assist in the ________ stage of developing a business idea.

answer

feasibility analysis- gathering data and making sure can work

question

PickFu and Ubounce are Web sites that provide access to ________.

answer

A/B split testing services

question

Foundersuite, Quirky and Unassumer are Web sites that provide access to ____________.

answer

Feedback on business ideas

question

Three commonly utilized methods for determining product/service demand are __________.

answer

1) talking face to face w/ potential customers 2) utilizing online tools such as google AdWords and landing pages 3) Library, internet and gumshoe research

question

Katlin Smith is investigating the feasibility of developing an iPhone app to help high school students with math. To get a good handle on the potential demand for her service, Katlin is scrounging around for information wherever she can find it. She even spent two weeks volunteering as a math tutor at a local high school to see how students responded to her methods. Katlin is conducting ________ research.

answer

gumshoe- (detective)

question

Conner Brandshaw is investigating the feasibility of a new type of electronic game targeting middle school and high school-age boys. Which of the following is an example of "gumshoe research" that Conner could conduct to get a sense of the likely demand for his game?

answer

Spend several days in electronic games arcades and stores to observe the types of games that attract the interest of middle school and high school age boys - Gumshoe research- when observing group

question

According to the textbook, the only way to know if your product or service is what people want is by ________________.

answer

Talking to them

question

A _________ is a single Web page that typically provides direct sales copy, like "click here to buy a Hawaiian vacation"

answer

Landing page

question

Product/service feasibility analysis is an assessment of the overall appeal of the product or service being proposed.

answer

TRUE

question

The two components to product/service feasibility analysis are product/service desirability and total startup costs needed.

answer

FALSE- costs not needed

question

A concept statement should be two to three pages long.

answer

FALSE

question

The temptation to show a concept statement to friends and family members should be avoided because they are predisposed to give positive feedback.

answer

TRUE

question

Quirky is a website that allows you to submit product ideas to a community that vets and provides feedback on the ideas.

answer

TRUE

question

Describe what a concept statement is, and what it should include.

answer

A concept statement is a preliminary description of a business. It should include 1) A description of the product or service being offered 2) the inteded target market 3) the benefits of the product/service 4) a description of how the product will be positioned regular to similar ones in the market. 5) A description of how the product or service will be sold and distributed. The concept statement is administered as part of product/market feasibility and it should be used to get initial feedback and input regarding a business idea.

question

What is gumshoe research and why is it important?

answer

Gumshoe research is simply doing what it takes to collect sufficient information to assess the target market feasibility of an idea. A gumshoe is a detective or investigator that scrounges around for information or clues wherever they can be found. This type of research can be found in creative forms i.e. examples previously used

question

A(n) ________ is a group of firms producing a similar product or service. A firm's ________ is the limited portion of the industry that it goes after or to which it wants to appeal.

answer

Industry; target market

question

The two components of industry/target market feasibility

answer

1) Industry attractiveness 2) Target market attractiveness

question

_____________ feasibility analysis is an assessment of the overall appeal of the industry and market for the product or service being proposed.

answer

Industry/target market

question

Which of the following issues should be considered in industry/target market feasibility analysis?

answer

Industry attractiveness

question

The Savvy Entrepeneurial Firm feature in Ch. 3 focuses on Bill Gross, and how a company he was leading, knowledge adventure, and make a 180-degree turn on the positioning of a product. According to the feature, Gross and his team made the change as a result of ___________.

answer

Observing how customers acted when buying their product

question

Which of the following is not an attribute of an attractive industry?

answer

it is late rather than early in its life cycle

question

Mintel, IBISWorld, and Bizminer are databases most likely to be used during the _______ feasibility stage of the feasibility analysis process.

answer

Industry/target Market feasibility

question

Which of the following statements about target markets is incorrect?

answer

It's generally easier to find good information about a target market than an industry as a whole.

question

________ feasibility analysis is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.

answer

Organizational

question

Industry/target market feasibility is an assessment of the overall appeal of the industry and target market for the product or service being conducted.

answer

TRUE

question

Describe the purpose of industry/target market feasibility analysis, and identify the two primary issues that should be considered. What is the difference between a firm's industry and its target market?

answer

An assessment of the overall appeal of the industry and the target market for the product or service being promoted. The two primary issues are: 1) Industry attractiveness - An industry is a group of firms producing a similar product or service, such as computers, cars, or electronic games. 2) Target Market attractiveness - A firm's target market is the limited portion of the industry that it goes after or to which it wants to appeal. -Most firms do not try to service their entire industry. Instead, they select or carve out a specific target market and try to service that market very well.

question

The two primary issues to consider in organizational feasibility analysis are _________.

answer

1) Management prowess 2) Financial rate of return

question

The two primary to consider in organizational feasibility analysis are management prowess and _____________.

answer

resource sufficiency

question

According to the textbook, two of the most important factors to consider regarding "management prowess" are ________.

answer

-The passion the sole entrepreneur or the management team has for the business idea and -the extent to which the management team or sole entrepreneur understands the markets in which the firm will participate.

question

The focus in organizational feasibility analysis is on _________.

answer

Non-financial resources

question

The What Went Wrong? Feature in Chapter 3 focuses on Standout Jobs. Although the company was acquired by a larger firm in 2010, it was not considered to be a financial success. According to the case, Standout Jobs failed to meet expectations for the following three reasons: ________________.

answer

First, the company's timing was bad; second, prior to launch, the company's management team didnt have strong enough understanding of the HR/recruitment market; and third, the company's leaders found that you cant shove a solution down your customer's throats.

question

The Partnering for Success feature in Ch. 3 focuses on the task of finding the right business parents. According to the feature, which of the following is an incorrect rule-of-thumb is finding a business parter.

answer

Pick a partner that is similar rather than different from you in terms of skills, abilities, and functional background.

question

Which of the following is an example of a resource that normally would not be evaluated as part of the "resource sufficiency" stage of the organizational feasibility analysis.

answer

Financial resources

question

To test resource sufficiency, a firm should list the ________ most critical non-financial resources that it will need to move its business idea forward and determine if those resources are available.

answer

6 to 12

question

Organizational feasibility analysis is conducted to determine whether a proposed business venture has sufficient management expertise, organizational competence, and resources to successfully launch its business.

answer

TRUE

question

The focus in organizational feasibility is on financial resources.

answer

FALSE

question

The two primary resources to consider in organizational feasibility analysis are management prowess and resource sufficiency.

answer

TRUE

question

A new venture team is the group of founders, key employees, and advisers that either manage or help manage a new business in its startup years.

answer

TRUE

question

In regard to management prowess, two of the most important factors in this area are the passion that the solo entrepreneur or the management team has for the business idea and the extent to which the management team or solo entrepreneur understands the markets in which the firm will participate.

answer

TRUE

question

_________ feasibility analysis is a quick financial assessment of the viability of a business idea.

answer

Financial

question

The most important issues to consider in financial feasibility analysis are ___________.

answer

1) Total startup cash needed 2) Financial performance of similar businesses 3) the overall financial attractiveness of the proposed venture

question

The most important issues to consider in financial feasibility analysis are: financial performance of similar businesses, total cash needed, and ________.

answer

overall attractiveness of the proposed venture

question

Which of the following is incorrect regarding the "total startup cash needed" component of financial feasibility analysis?

answer

It's not necessary to complete an actual budget of startup expenses.

question

Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?

answer

Inability to forecast income and expenses with a reasonable degree of accuracy

question

Which of the following factors is a positive as it pertains to the financial feasibility of a business venture?

answer

High percentage of recurring revenue

question

For financial feasibility analysis, a very detailed and comprehensive financial analysis is required.

answer

FALSE

question

The most important issues to consider in financial feasibility analysis are total startup cash needed, financial performance of similar businesses, and overall financial attractiveness of the proposed venture.

answer

TRUE

question

The template for completing a feasibility analysis included in appendix 3.1 of the book is called the _________ analysis.

answer

First screen analysis

question

The first screen feasibility analysis template included in chapter 3 is called the "first screen" because

answer

feasibility analysis is an entrepreneurs initial or first pass at determining the feasibility of a business idea

question

The mechanics for filling out a first screen worksheet are complicated.

answer

FALSE

question

First Screen is a template for completing industry analysis

answer

FALSE

question

Briefly describe the purpose of the First Screen and how it's used.

answer

The First screen template for completing a feasibility analysis. It is called First Screen because a feasibility analysis is an entrepreneur's initial pass at determining the feasibility of a business idea. The mechanics for filling out the first screen worksheet are straightforward . It maps the four areas of feasibility analysis accentuating the most important points in such area. The final section of the worksheet, "Overall Protection," includes a section that allows for suggested revisions of a business idea to improve its potential for feasibility. The value for First screen is 1) Provides an entrepreneur an overall sense of the feasibility of a business idea 2) Draws attention issues that suggest the idea has low potential. The fact that an issue, such as total startup cash needed, is a low potential does not necessarily mean that the business idea is not feasible. By drawing attention to this issue, an entrepreneur may think through less expensive ways to launch the venture.

question

Her Campus Media, the focus of the opening feature of Chapter 4, features a vibrant online magazine, with feature articles targeted toward all aspects of college life and survival. According to the feature, Her Campus's business model focuses on connecting companies with college females. The key to making this work is ________.

answer

Her Campus's unparalleled access to college females

question

________ is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders.

answer

Business model

question

3) The Savvy Entrepreneurial Firm feature in Chapter 4 focuses on the ways in which Quirky creates, delivers and captures value for its stakeholders. According to the feature, Quirky would be a business that would be difficult to copy. According to the feature, it would be difficult to copy because ________.

answer

it has raised over $91 million and has over 550,000 people in its network- quirky

question

Which of the following is the proper sequence for when a firm should develop a business model?

answer

1)Initial validation of the business idea 2) preparation of the business model 3) fleshing out operational details from the firm

question

In regard to business models, which of the following statements is incorrect:

answer

There is a standard business model that most firms follow

question

The Partnering for success feature in Ch. 4 focused on Web-based platforms, including Odesk, Elance, and Guru, that make it easy to identify and hire experienced __________________.

answer

Freelancers

question

A business model is a firm's plan or recipe for how it creates, delivers, and captures value for its stakeholders

answer

TRUE

question

What is a business model? Why is it important? Provide an example to illustrate your answer.

answer

Definition: a business model is a firm's plan or recipe for how it creates, delivers and captures value for its stakeholders. -Business models are fundemental to a firm's ability to both succeed in the long and short run -Ex. Dropbox, has whats referred to as a freemium business model. It offers customers with a free account with a set amount of storage space, and makes money by selling premium accounts w/ more capacity. Dropbox could charge all of its users a monthly fee based on the amount of storage that they use, but thats not its business model. -Its business model is based on the belief that by introducing its service for free will induce customers to purchase their premium subscription. - A firms's business model also describes how the core aspects of what it does fit together and complement one another.

question

The two general categories of business models are ________ and __________.

answer

standard; disruptive

question

__________ business models depict existing plans or recipes firms can use to determine how they will create, deliver and capture value for their stakeholders.

answer

Standard

question

Brandon Jones has crafted a business model for his firm that is based on an existing plan or template for how firms in his industry create, deliver and capture value for their shareholders. Brandon has crafted a ________ business model.

answer

Standard

question

Which of the following statements about business models is incorrect?

answer

A firm's business model is confined to its own boundaries.

question

___________ refers to the number of subscribers that requires a subscription-based business loses each month.

answer

CHURN

question

Tyler Smith founded a firm that has a subscription-based business model. Although Tyler has averaged 600 new subscribers per month, she also loses 450 subscribers per month. The number of subscribers that Tyler loses each month is referred to as ________.

answer

CHURN

question

Which of the following firms has a peer-to-peer business model?

answer

Airbnb- peer to peer

question

___________ business models are ones that do not fit the profile of the standard business models, and are impactful enough that they disrupt or change the way that business is conducted in an industry or have an important niche within an industry.

answer

Disruptive

question

Google and its AdWords program is an example of a _____ disruptive business model.

answer

New-Market

question

Southwest Airlines is an example of a __________ disruptive business model.

answer

low-end

question

There are two types of disruptive business models-- ________ and ________.

answer

new market and low end

question

Which of the following firms is a disruptive business model?

answer

Salesforce.com

question

Standard business models depict existing plans or recipes firms can use to determine how they will create, deliver and capture value for their stakeholders.

answer

TRUE

question

It is important to understand that there are several perfect business models.

answer

FALSE- fin depends on situation

question

Disruptive business models are impactful enough that they disrupt or change the way business is conduced in an industry or an important niche within an industry.

answer

TRUE

question

According to the textbook, Southwest Airlines introduced a new market distribution type of disruptive business model.

answer

FALSE

question

The Barringer/Ireland business Model Template has five major categories and 14 individual parts.

answer

FALSE

question

What is the difference between standard business models and disruptive business models? Include examples of both in your answer.

answer

Standard business models depict existing plans or recipes firms can use to determine how they will create, deliver and capture value for their stakeholders. -Examples include the advertising business model, the auction business model, the low-cost business model, and the manufacture/retailer business model. Disruptive business models, which are rare, are the ones that to ot fit the profile of a standard business model, and are impactful enough that they disrupt or change the way business is conducted in an industry or an important niche within an industry. -Ex. Dell (direct to consumer sales model) -google (introduced advertising model) -Salesforce.com (notion of software as a service)

question

The Barringer/Ireland Business Model Canvas consists of ________ major category(ies) and ________ parts.

answer

4; 12

question

The four major categories in the Barringer/Ireland Business Model template are:

answer

1) Core Strategies 2) Resources 3) Financials 4) operations

question

Which of the following is not one of the four major categories in the Barringer/Ireland Business Model Template?

answer

Channels

question

In the Barringer/Ireland Business Model Template, ________ describes how the firm plans to compete relative to its competitors.

answer

Core Strategy

question

Jamie Finch is crafting the business model for her fashion design firm. She just completed the section that describes how her firm plans to compete relative to her rivals. Jamie just completed the ________ portion of her business model template.

answer

Core Strategy

question

Which of the following is not one of the four elements of the core strategy section of the Barringer/Ireland business model template?

answer

Key Assets

question

A business's ________ describes why it exists and what its business model is supposed to accomplish.

answer

Mission Statement

question

Nathan Green is starting a firm in the organic produce industry. Nathan has developed a statement—"Helping Make Your Life Better, Healthier, and Fuller"—that describes the reason his company exists and what his business model is supposed to accomplish. In the terminology used in the Barringer/Ireland Business Model Template, Nathan's statement is referred to as his ________ statement.

answer

mission

question

The first box in the Barringer/Ireland business model Template is

answer

Business mission

question

When completing the basis of differentiation box in the barringer/Ireland Business Model Template, it is best to limit the description to ________________.

answer

Two to three points

question

A firm's ________ market is a place within a larger market segment that represents a narrower group of customers with similar interests.

answer

Target

question

Kaitlyn Harris is opening up a women's fashion boutique that will focus on professional women that are 18-30 years old. The age range of women that Kaitlyn plans to focus on is referred to as her ________ market.

answer

Target

question

A company's ________ scope defines the products and markets on which it will concentrate.

answer

product/market

question

Erin Hill is working on the box in the Barringer/Ireland Business Model Template that defines the products and markets on which her firm will concentrate. Erin is working on the ________ scope portion of the business model template.

answer

product/market

question

The resources section of thre Barringer/Ireland business model template consists of the _______ and _________ boxes.

answer

core competency and key assets

question

In the Barringer/Ireland business model template, a(n) _______ is a specific factor or capability that supports a firm's business model and sets it apart from its rivals.

answer

core competency

question

Mark White is the founder of a firm that builds iPhone apps. Mark is very technically savvy, which allows him to build apps quickly and with minimal bugs or problems. In the terminology of the Barringer/Ireland Business Model Template, Mark's technical savvy is a(n) ________ of his firm.

answer

Core competency

question

In the terminology of the Barringer/Ireland business model template, ______ assets are the assets that a firm owns that enable its business model to work.

answer

Keys da keys da keys

question

In the Barringer/Ireland Business Model Template, key assets can be ________.

answer

1) Physical 2) financial 3) Intellectual 4) human

question

The Financials section of the Barringer/Ireland business odel template consists of the three boxes. The boxes are titled ______________.

answer

1) Revenue streams 2) cost structure 3)financing/funding

question

Which section of the Barringer/Ireland Business Model Template is the only section that describes how it makes money?

answer

Financials

question

A firm's ______ describe(s) the ways in which it makes money.

answer

Revenue streams

question

Advertising, commissions, download fees, licensing, and product sales are examples of _____________.

answer

Revene Streams

question

In the Terminology of the Barringer/Ireland business model Template, a firm's _______ structure describes the most important costs incurred to support its business model.

answer

Cost

question

Jenna Franklin is completing the portion of the Barringer/Ireland Business Model Template that describes the most important costs that will be incurred to support her business model. Jenna is completing the ________ structure box in the business model template.

answer

Cost

question

________ costs are costs that remain the same despite the volume of goods or services produced. ________ costs vary proportionally with the volume of goods or services provided.

answer

Variable;fixed

question

According to the textbook, there are three categories of costs to consider when completing the "financing/funding" section of the Barringer/Ireland Business model template. These are _____________.

answer

1) operating costs 2) capital costs 3) costs associated with setting up the firm

question

The operations quadrant in the barringer/Ireland business model template includes three sections. these are __________.

answer

1) Product (or service) production 2) channels 3) key partners

question

Sarah green who plans to open a garden and lawn business, is working on the portion of the Barringer/Ireland model template that focuses on how her products and services will be produced.

answer

product/or service production

question

Brad Jones is in the process of opening an electronics supply company and is working on the portion of his business plan template that describes how he will deliver his products and services to his customers. The portion of the business plan template that Brad is working on is referred to as ________.

answer

Channels- part of plan that tells u how firm will deliver products

question

Cynthia Hamilton is launching a chain of smoothie restaurants. Among Cynthia's key partners will be firms that provide her the ingredients needed to make her smoothies. In the terminology of the Barringer/Ireland Business Model Template, these partners are called ________.

answer

suppliers

question

An entity created by two or more firms pooling a portion of their resources to create a separate, jointly-owned organization is called a ________.

answer

joint venture

question

4 Major categories in the Barringer/Ireland business model: 1) core strategies 2) resources 3) financials 4) operations

answer

TRUE

question

Core strategy describes what causes consumers to pick the company's products over another.

answer

FALSE

question

A business's mission or mission statement describes why it exists and what its business model is supposed to accomplish.

answer

TRUE

question

When competing the basis for differentiation portion of the Barringer/Ireland Business model template, it is important to ephasize as many points of differentiation as possible.

answer

FALSE

question

A company's target market is a place within a larger market segment that represents a narrower group of customers with similar interests.

answer

TRUE

question

A company's product/market scope defines the products and markets on which it will concentrate.

answer

TRUE

question

The resources section of the Barringer/Ireland business model template includes three parts: core competency, key assets and revenue streams

answer

FALSE

question

In the terminology of the Barringer/Ireland Business Model Template, a key asset is a specific factor or capability that support a firm's business model and sets it apart from its rivals.

answer

FALSE

question

A firms revenue streams (CF) define the way in which it makes money

answer

TRUE

question

Value-Driven businesses focus on minimizing costs wherever possible

answer

FALSE

question

In the financing/funding section of the Barringer/Ireland business model template there are three categories of costs to consider: 1) capital costs 2) one-time expenses 3) provisions for ramp up expenses

answer

TRUE

question

A company's channels describe how it delivers its product or service to its customers.

answer

TRUE

question

A strategic alliance is an entity created by two or more firms pooling a portion of their resources to create a separate, jointly-owned organization.

answer

FALSE- joint venture

question

Describe the Barringer/Ireland Business Model Template and discuss its purpose.

answer

-The Barringer/Ireland Business Model Template is a visual template that lays out the four major categories and 12 individual parts of a firm's business model. -The job of the entrepreneur, or team of entrepreneurs, is to configure their firm's business model in a manner that produces a viable and exciting business. -is a tool that allows an entrepreneur to describe, project, revise, and pivot a business model until all 12 parts are decided upon The 12 parts are spread out, which provides space for ideas to be recorded, scratched out, and recorded again as ideas morph and change. The four major categories 1) Core strategy -Business mission -Basis of differentiation -Target market -Product/Market scope 2)Resources -Core competency -Key Assets 3) Financials -Revenue streams -Cost structure -financing/funding 4) Operations -Product production -Channels -Key Partners

question

What are core competencies? Provide an example of the three core competencies that are utilized by an entrepreneurial firm.

answer

Definition: A core competency is a specific factor or capability that support's a firms's business model and sets it apart from its rivals. Can take various forms 1) creating content of entered to give college-age girls 2) recruiting and managing a volunteer network 3) connect active college aged females with major brands.

question

Greenvelope, the company profiled in the opening feature of Chapter 5, believes it has created sufficient barriers to entry to enable it to maintain a leadership position in the invitation industry. Its barriers to entry include ________.

answer

1) its international presence 2) the price point of its products 3) its social mission 4) innovative nature of its products

question

Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research that Terry was doing is called ________ analysis.

answer

Industry- when u research about industry before entering

question

A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, airlines, or smartphone apps.

answer

industry

question

Once a firm enters an industry and chooses the market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) _________ analysis.

answer

Competitor

question

Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm's competitors. This analysis is called ________ analysis.

answer

Competitor

question

In various studies, researchers have found that from __________ percent of the variation in firm profitability is directly attributable to the industry from which the firm competes.

answer

8 to 30

question

Industries that sell product to seniors, such as the eyeglasses industry and the hearing aid industry benefit from the aging population which is an important ________ trend.

answer

Environmental- how tf is glasses environmental

question

Many firms benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign countries. This is referred to as a _________ trend.

answer

Business

question

The partnering for success feature in ch. 5 focuses on three things that are important for startups to become active in to learn the ins and outs of their industries. The three items focussed on in the feature are___________.

answer

1) trade associations 2)trade shows 3)trade and trade journals

question

Industry analysis is business research that focuses on the potential of an industry.

answer

TRUE

question

A comparison analysis is a detailed evaluation of a firm's competitors

answer

FALSE- competitor analysis

question

An industry is a group of firms producing a similar product or service, such as tires, life insurance, or smartphone apps.

answer

TRUE

question

Two trends that are most important to focus on in an industry analysis 1) business trends 2) environmental trends

answer

TRUE

question

Business trends include economic trends, social trends, technological advances, and political and regulatory changes.

answer

FALSE

question

What is industry analysis? Why is it important for a new venture to complete a thorough analysis of the industry it is entering?

answer

-Industry analysis is business research that focuses on the potential of an industry. An industry is a group of firms producing a similar product, such as tires, fitness drinks, or electronic games. -This analysis helps a firm determine if the target market(s) it identified during its feasibility analysis are accessible and which ones represent the best point of entry for a new firm

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According to the textbook, the five competitive forces included in the five forces model determine the average _______________.

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Rate of return for the firms in the industry

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According to the textbook, how do well managed firms respond to the five forces that determine industry profitability?

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They try to position their firms in a way that avoids or diminishes the forces.

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In general, industries are more attractive when the __________.

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Threat of each of the five levels is low

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Generally, industries are more attractive when the threat of substitute is ________.

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LOW

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The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter's five forces explains how this aspect of the prescription medicine industry helps keep profitability high?

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the threat of substitutes

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Which of Porter's five forces is most closely related to the concept "barrier to entry"?

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Threat of new entrants- if barriers low, new entrants can come in

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Which of the following is not one of the major sources of barriers to entry?

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Buyer group concentration

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Shelly Brunner owns a sports-themed restaurant which is located in an upscale business district in Chicago. One advantage that Shelly has is that she bought the lot she built her restaurant on 25 years ago when lots in the area were selling for $50,000. Shelly knows that several potential competitors have looked at bare lots near his business but haven't been willing to pay the asking prices, which are as high as $500,000. Which of the six major sources of barriers to entry is causing a disincentive for new firms to enter Shelly's industry?

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Cost advantage independent of size

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Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These industries are difficult to break into without spending heavily on advertising. The barrier to entry that the firms in these types of industries have erected is referred to as ________.

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Product differentiation - aint no one like nike

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Which of porters five forces is mostly influenced by the number and balance of competitors, degree of difference between products, growth rate of an industry and level of fixed costs?

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Rivalry among existing firms

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If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a formidable nontraditional barrier to entry referred to as a(n) ________.

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First mover advantage

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According to the example provided in Chapter 5, www.1800contacts.com possesses a nontraditional barrier to entry referred to as ________.

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Internet domain name

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Which of the following was not identified in the textbook as a nontraditional barrier to entry?

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Product differentiation

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Supply concentration, switching costs, attractiveness of substitutes, and thread of forward integration are factors that have a direct impact on _________.

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The bargaining power of suppliers.

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Tim Rutherford is thinking about starting a firm in the medical equipment industry. In the industry analysis Tim has been conducting, one thing he has noticed is that the medical equipment industry is characterized by buyer group concentration. This factor concerns Tim because it tells him that the profitability of the medical equipment industry is potentially suppressed by the ________.

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the bargaining power of BUYERS

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The five competitive forces model is a framework for understanding the structure of an industry.

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TRUE

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The best industry to enter is an industry where the threat of each of Porter's five forces is high.

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FALSE- forces low

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There are four factors that determine the threat of new entrants: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs.

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FALSE

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In most industries, the major determinant of industry profitability is the level of competition among the firms already competing in the industry.

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TRUE

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If the buyers are concentrated and they buy from a large number of suppliers, then the bargaining power of buyers is increased.

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TRUE- bc other prices compared

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Identify the five competitive forces that determine industry profitably. Explain the purpose of analyzing these forces?

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1) threat of substitutes 2) threat of new entrants 3) bargaining power of supplier 4) bargaining power of buyer Purpose: Companies analyze the five forces to try to position their firms in a way that avoids or diminishes the negative impacts of these forces.

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Discuss the nontraditional barriers to entry identified in the chapter. Why is it important that entrepreneurial firms utilize one or more of these forms of barriers to entry?

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1) Strength of MGT team 2) First mover advantage 3) passion of MGT/employees 4) Unique business model 5) Unique domain -It is important that startups utilize one or more of these forms of barriers to entry because many of the traditional barriers to entry, like economies of scale, are expensive. It is difficult for startups to erect expensive barriers to entry because money is usually tight.

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According to the textbook, the Five Forces model can be used in the following two ways:

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1) help determine whether it should enter a particular industry, and 2)to help a firm discern whether it can carve out an attractive position in the industry.

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Brain Sentry is starting a firm in the small industry that helps football teams discern whether a player has suffered a concussion. This industry is still so new that no standard operating procedures have been developed. The industry Brain Sentry is entering is an example of a(n) ________ industry.

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emerging

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The primary opportunity existing for startups in emerging industries is to ________.

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pursue a cost reduction strategy, which is accomplished through achieving lower costs that industry incumbents through process innovation

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A_______ industry is one that is characterized by a large number of firms that are approximately of equal size.

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Fragmented

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The primary opportunity existing for startups in fragmented industries is to ________.

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Consolidate the industry and establish industry leadership as a result of doing so

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A(n) ________ industry is an industry that is experiencing slow or no increase in demand.

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Mature

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According to the textbook, Justin's in peanut butter, Pure Fix Cycles in bicycles, and Flings Bins in trash bags are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

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Mature

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According to the textbook, Chipotle Mexican Grill in fast-casual restaurants and 1-800-GOT_JUNK? in junk removal are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

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fragmented

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According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

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Declining- bc are opportunities for leadership, niche and harvest

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Opportunities for leadership, niche, harvest and divestment are associated with ________ industries.

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declining

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A(n) ________ industry is an industry that is experiencing significant international sales.

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global

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The two most common strategies pursued by firms in global industries are the ________ strategy and the ________ strategy.

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Multidomestic strategy and the global strategy

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Firms that pursue a(n) ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.

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multidomestic

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Kellen West recently launched a firm in the fruit drink industry, and has already exported his fruit drinks to 11 different countries. One thing that Kellen's firm is doing is that it is varying the tastes of the fruit drinks it sells on a country-by-country basis to meet the demands of the local markets. Kellen's firm is pursuing a ________ strategy.

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Multidomestic

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Katherine Chapman recently launched a firm in the clothing industry, targeting 13-17 year olds. One thing Katherine thinks she has accomplished is producing products that have universal appeal, so she will not vary her approach from country to country. Katherine is pursuing a ________ strategy.

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Global

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A fragmented industry is a new industry in which standard operating procedures have yet to be developed.

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FALSE

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An emerging industry is one that is characterized by a large number of firms of approximately one size.

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FALSE

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The primary opportunity available to firms in fragmented industries is consolidation. The most common way to do this is through a geographic roll-up strategy, in which one firm starts acquiring similar firms that are located in different geographic areas.

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TRUE- bc one firm acquiring similar firms in different geo areas

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A fragmented industry is an industry that is experiencing slow increases in demand, numerous repeat customers, and limited product innovation.

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FALSE- fragmented heavy business

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Firms that pursue a multi domestic strategy use the same basic approach in all foreign markets.

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FALSE

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What is an emerging industry? What is the primary opportunity available to entrepreneurial firms in emerging industries? Name three examples of firms in emerging industries.

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Def: : An emerging industry is a new industry in which standard operating procedures have yet to be developed. - The firm that pioneers or takes the leadership of an emerging industry often captures a first-mover advantage, which is a sometimes insurmountable advantage gained by the firm initiating the first significant move into a new market - Ex. Itunes, brain sentry for concussions,

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According to textbook, first step in a competitor analysis is:

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to determine who the competition is

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The three different types of competitors a business will face are ____________

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1) Direct 2) indirect 3)future

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In context as of competitor analysis, businesses that offer identical or similar products are referred to as:

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Direct

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In the context of competitor analysis, ________ competitors offer close substitutes to the product sold by the firm completing the analysis.

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Indirect

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In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled water.

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Indirect

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In the context of competitor analysis, ________ competitors are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.

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Future

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The information that is gathered by a firm to learn about its competitors is referred to as ____________

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Competitive analysis

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The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on three firms that are doing well in crowded industries as ________.

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- differentiated from competitors -first mover advantage

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Amy has just launched a firm in the sports drink industry. She has decided to complete a grid to see how she stacks up against her competitors. Along the horizontal axis of the grid she lists her firm along with her major competitors. Along the vertical axis of the grid she lists the main competitive factors in her industry. Amy is completing a ________.

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competitive analysis grid

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The What Went Wrong? feature in Chapter 5 focused on Digg, a Web site that was once one of the hottest sites on the Internet but eventually failed. According to the feature, through a series of missteps Digg ________.

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Lost its way and its place in its industry

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The first step in a competitor analysis is to determine who the competition is:

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TRUE

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A firm's future competitors are the most important ones

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FALSE-direct

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The three types of competitors a business will face are direct competitors, indirect competitors, and future competitors.

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TRUE

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The information that is gathered by a firm to learn about its competitors is referred to as tactical intelligence.

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FALSE-competitive advantage

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A competitive analysis grid is a tool for organizing the information a firm collects about its competitors

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TRUE

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What is competitive intelligence? What are some of the ways that a firm can ethically obtain information about its competitors?

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-: The information that is gathered by a firm to learn about its competitors is referred to as competitive intelligence. There are a number of ways that a firm can ethically obtain information about its competitors. -These ways include: attend conferences and trade shows, read industry-related books, magazines, and Web sites, along with general business magazines, talk to potential customers about what motivated them to buy your product as opposed to your competitor, purchase competitors' products to understand their features, benefits, and shortcomings, study competitors' Web sites, and study Web sites that provide information about competitors.

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