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78 Cards in this Set
- Front
- Back
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Two reasons entrepreneurial behavior had a strong impact on a economy´s trend |
Innovation - process of creating something new Job opportunity - create new job opportunities |
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What are the difference between a firm resource and sustained competitive advantage? |
Firm resources - there different categories - Physical capital resource - graphic location, raw material - Human resources - training experience, relationships - Organizational capital resources - planning, controlling, information among groups - in firms, between and around Sustained - does not depend upon a period of calendar time Competitive advantage - implementing a value creating strategy not simultaneously being implemented by a potential opportunities Sustained - implementing a value and when other firms are not able to duplicate the benefit of the strategy |
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Four main characteristics of a entrepreneur |
Passion for the business Product/customer focus Tenacity despite failure Execution intelligence |
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What is entrepreneurship? |
A process by which individuals purse opportunities without regards of resources |
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What is an opportunity? And what is it four essential qualities? |
A favorable set of circumstances that creates a need for a new product or service of business. 1. Attraktives 2. Durable 3. Timely 4. Anchored |
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What is the difference between an opportunity and an idea? |
Ide is a though, impression which may or may no meet the criteria of an opportunity |
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Three different ways to identify an opportunity |
1. Observing trends 2. Solving a problem 3. Finding a gap on the market |
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What Environmental trends are being approached in a PEST- analysis |
Political and regulatory changes Economical Social Technological Advances |
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Describe the three general approachesentrepreneurs use to identify opportunities
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Observe trends
Solving a problem Finding a gap in the marketplace |
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What is a Window of opportunity?
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It is a gap in the market place that is an opportunity because of time, trends etc.
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Describe the difference between a idea and opportunity
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An idea is a thought, impression or notion but a opportunity need to be timely, attractive, durable, anchored in a product, service or business that creates or adds value for its buyers or end users
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List the personal characteristics that makesome people better at recognising business opportunities than others |
- Previous experience
- Cognitive factors (entrepreneurial alertness), - Social networks - Creativity. |
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Identify the five steps in the creativeprocess |
Preparation
Incubation Evaluation |
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Describe the purpose of brainstorming andits use as an idea generator |
Generating several ideas about a specific topic / Generate new business ideas / Find solutions to problems
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Describe three steps for protecting ideasfrom being lost or stolen |
Putting the idea to tangible form
Entering it into a logbook or saving it in a computer file Secure the idea or avoid talking about the idea in public. |
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What is a business opportunity? |
A favorable set of circumstances that creates a need for a new product, service or business. |
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What is Herristics? |
A decision making shortcut |
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Describe the difference between a business model and a business strategy |
Business model = recipes for a "success" Business strategy = ? |
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What is the parts of a business model? |
- Core strategy - Strategic resources - Partnership network - Customer interface |
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Which are the three questions that a business model should answer? |
- Who is the customer? - What does the customer value? - How do we make money in this business? |
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What is Costumer Segments? |
Different groups of people or organisations an enterprise aims to reach and serve |
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What defines Value Propositions? |
Bundle of product and services that create value for a specifik costumer segment |
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What is Channels? |
How a company communicates with and reaches its costumer segment to deliver a value proposition |
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What is Customer Relationship? |
types of relationship a company establish with specific customer segments. |
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What is Revenue Streams? |
Cash a company generates from each segment. |
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What is Key Resources? |
The most important asset required to make a business model work. |
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What is Key Activities? |
The most important things a company must do to make its business model work |
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What is Key Partnership? |
The network of suppliers and partners that make the business model work. |
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What is Cost Structure? |
All cost incurred to operate a business model. |
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What does the traditional approach to the strategic market plan include? |
- Safety - Prescriptive Solutions - Control - Public image |
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What does the contemporary approach to the strategic market plan include? |
- Direction - Mobilisation - Relationship with stakeholders - Flexibility & presistence |
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What defines Quantitative? |
Price, speed of service |
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What defines Qualitative? |
Design, customer experience |
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What is marketing? |
A process by which companies create value for customers and build strong costumer relationships to capture value from customers in return |
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Describe a customer driven strategy |
Select customers to serve - Segmentation - Targeting Decide on a value proposition - Differentiation - Positioning |
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What is the six steps of a STP Process? |
Research-->Segmentation-->Targeting-->Positioning-->Implementation-->Control |
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What is the basic criteria for successful segmentation? |
Substantiality Possible to identify ans measure Accessibility Responsiveness |
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Name the three categories you look at during segmentation |
- Behavioural: Media usage, purchase/transaction etc. - Psychological: Lifestyle, personality etc. - Profile: Demographic, geographic etc. |
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What is targeting? |
The process of evaluating each market segment´s attractiveness and selecting one or more segments to enter. |
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Name four target market approaches |
- Undifferentiated Marketing: Mass marketing, one single marketing mix to all - Differentiated Marketing: Several segments, different marketing mixes - Focused/Concentrated Marketing: One segment marketing and customise marketing mix - Customised Marketing: Marketing efforts customised to individuals or firms |
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What is positioning? |
The act of designing the company´s offering and image so that they occupy a meaningful and distinct position in the target customer´s mind´s. |
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Name the two fundamental elements of positioning |
- Physically attributes: The functionality and capability that a band or product offer - Communication: the way in which a brand is communicated and how customers perceive the brand relative to other competing brands in the market place |
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What is the difference between Brand Positioning and Product Positioning? |
Brand = the unchanging brand story Product = a tangible example of the brand story |
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What is a brand? |
- A promise - A guarantee - A pledge etc. |
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Name four different brand architecture strategy alternatives |
Monolithic Endorsed Free-Standing Hybrid |
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What does the marketing mix include? (7p´s) |
Product People Place Processes Price Promotion Physical evidence |
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Name the two pricing strategies |
Cost-based pricing: Price is determined by adding a markup percentage to a product price Value-based pricing: Price is determined by estimating what customers are willing to pay for a product. |
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Describe the process of marketing reseach |
- Define the problem - Develop the research plan - Implementing the research plan - Interpreting and reporting the findings |
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Name the three types of research |
Exploratory: preliminary info to help understand the market better that will help to define problems and suggest hypotheses Descriptive: describe problems, situations or markets Casual: to test hypotheses about and effect relationships |
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Name the two types of information you can collect. |
Secondary data: Info that was collected for another purpose Primary data: Info collected for this specific pupose |
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What is Physical Capital? What is Social Capital? What is Organisational Capital? |
= Tangible property ex) firm plant = ex) knowledge, training, experience = Personal and business network = ex) culture, structure, processes and routines |
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What does VRIN stand for? |
Valuable = help conceive of and implemented efficient strategy, exploit opportunities and minimize threats Rare = not widely available to competitors Imperfectly imitable = Hard to copy Non-substitutable = there cannot be strategically equivalent substitutes for this resource |
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What does Profitability mean? What does Liquidity mean? What does Efficiency mean? What does Stability mean? |
= a firms ability to make a profit = a firms ability to cover its short term liabilities = how productively a firm utilizes its assets = how healthy the financial structure of a firm is |
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What is a financial statement? |
A written report that quantitatively describes a firms financial health
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What is a forecast? |
An estimate of a firms future income and expanses, based on past performance, current circumstances and future plans |
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What is a budget? |
A itemised forecast of a companies income, expenses and capital needs. A important tool for financial planning and control. |
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What is a pro forma financial statement? |
Similar to its historical statements except that they look forward rather than track the past |
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The difference between Pro forma financial statement and Historical statement? |
Pro forma: for the future based on forecasts complement two/three years in the future do not need to be published Historical: reflect past performance prepared under rules and on a annual basis should be published |
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What is Revenue? |
The amount of money that a company receives during a specific period including discounts and deductions for returned merchandise. |
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What is Expense? |
The economic costs that a business incurs though its operations to earn revenue. |
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What is Asset? |
A resource with economic value that an individual or corporation owns or controls with the expectation that it will provide future benefits. |
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What is Liability? |
A company´s debts or obligations that arise during the course of business operations. |
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What is Equity? |
The amount of founds contributed by the owners plus the retained earnings. |
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Name a few financial problems in new and small firms |
- higher transaction cost - limited internal possibilities to spread risk - lack of information etc. |
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Why do especially start-ups need funding? |
- cash flow challenges - capital investments - lengthy product development cycles |
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Name a few types and sources of funding |
Internal: -retained earnings External: -dept -hybrids |
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What is the difference between dept and equity? |
Suppliers of equity have no limit to potential upside Suppliers of dept only earn interest |
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What is the difference between dept and equity? |
Dept: - can involve personal collateral that could be lost - interest in a cost that affects profits Equity: - no effect on profits - equity investors gets more involved |
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What is it called when a business have a high risk and uncertain return? |
Bootstrapping |
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What is it called when a business have a low risk and a predicted return? |
Dept financing |
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What is it called when a business have a potentially high return and a high risk? |
Equity finansing |
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Name the three sources for Equity funding |
-Business Angels -Venture capital -Initial public offering |
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What is crowdfunding? |
It is a site that works as a meeting arena for micro financing. |
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What is bootstrapping? |
"doing more with less" Finding ways of avoiding the need for money Can be accomplished through networks or to generate sales early. |
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What does it mean with cash flow managing? |
Speeding the money, reducing the cost and raising prices |
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Name four ways of protecting your resources |
- Trade secrets - Copyright - Trademarks - Patents |
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What three things does a patent need to be? |
Useful, Novel and Not Obvious |
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Name the three levels of ethical standards |
Laws - societal Organisational polices and procedures - organisational Moral stance - individual |
