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Entrepreneurship and new Venture Development
N/A
60
Business
Undergraduate 3
04/02/2014

Additional Business Flashcards

 


 

Cards

Term

BenchPrep, the company profiled in the opening feature for Chapter 2, sells an iPhone app to help students prepare for the GMAT and other exams. The original idea for the company stemmed from the founders' recognition that if people could use their iPhones to study for the GMAT:

Definition

they wouldn't have to carry heavy study books around and they could maximize their study time by catching a few minutes of studying between meetings and on similar occasions

Term

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

Definition

opportunity

Term


According to the textbook, opportunities are:

Definition

tough to spot

Term

An opportunity has four essential qualities:

Definition

attractive, timely, durable, and anchored in a product, service, or business that creates or adds value for its buyer or end user

Term

Shelly Ford is starting a fashion boutique in an upscale mall near San Antonio. She wants to open her store during the time period in which a business like hers can realistically enter the new market. Shelly is trying to open her business while the ________ is open.

Definition

window of opportunity

Term

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

Definition

realistically enter a new market

Term

Which of the following is correct regarding opportunities and ideas?

Definition

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

Term

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.

Definition

opportunity, idea

Term

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 criteria for Jessica to test her idea against?

Definition

Determine whether a fitness center for young adults ages 18-30 meets the threshold of being a good idea.

Term

The three ways to identify an opportunity include:

Definition

observing trends, solving a problem, and finding gaps in the marketplace

Term

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?

Definition

economic forces

Term

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?

Definition

interest rates, consumer spending patterns, and level of disposable income

Term

What is not an example of a social force?

Definition

changes in interest rates

Term

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.

Definition

social force

Term

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 one another online. The increasing number of social networks is an important:

Definition

social trend


Term

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.

Definition

technological advances

Term

According to the textbook, which is the proper sequence of events in developing successful business ideas?

Definition

opportunity recognition, feasibility analysis, development of a business plan

Term

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

Definition

Feasibility analysis

Term

Cameron Smith recently surveyed 200 of his classmates to get a sense of the demand for a new software product he is working on. Collecting data via a survey you administer yourself is referred to as:

Definition

primary research

Term

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

Definition

primary research

Term

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

Definition

secondary research

Term

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:

Definition

secondary research


Term

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

Definition

Product/service

Term

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 ________ component of a complete feasibility analysis.

Definition

product/service feasibility

Term

The two components of product/service feasibility analysis are:

Definition

product/service desirability and product/service demand

Term

The two components of product/service feasibility analysis are product/service demand and:

Definition

product/service desirability

Term

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

Definition

concept test

Term

Al Jenkins is in the process of developing an exciting new product in the smartphone industry. He'd like to show a preliminary description of the product to industry experts and prospective customers to solicit their feedback. Al should complete and distribute a(n):

Definition

concept statement

Term

A ________ survey is an instrument that is used to gauge customer interest in a product or service.

Definition

buying intentions

Term

A buying intentions survey is typically administered as part of ________ feasibility analysis.

Definition

product/service

Term

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.

Definition

industry, target market

Term

The two components of industry/target market feasibility analysis are:

Definition

industry attractiveness and target market attractiveness

Term

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

Definition

Industry/target market

Term

According to the textbook, the five competitive forces included in the five-forces model determine:

Definition

the average rate of return for the firms in an industry

Term

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

Definition

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

Term

In general, industries are more attractive when:

Definition

the threat of each of the five forces is low

Term

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?

Definition

threat of substitutes

Term

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

Definition

threat of new entrants

Term

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?

Definition

cost advantage independent of size

Term

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:

Definition

product differentiation

Term

Which of Porter's five forces is most directly influenced by the following factors: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?

Definition

rivalry among existing firms

Term

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):

Definition

first-mover advantage

Term

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

Definition

Internet domain name

Term

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

Definition

capital requirements

Term

Supplier concentration, switching costs, attractiveness of substitutes, and threat of forward integration are factors that have a direct impact on:

Definition

bargaining power of suppliers

Term

The five industry types discussed in the book include:

Definition

emerging, fragmented, mature, declining, and global

Term

The primary opportunity existing for startups in emerging industries is to:

Definition

capture a first-mover advantage

Term

Phone Halo, the company profiled in the opening feature for Chapter 14, developed a device 0that prevents people from losing their mobile phones. Which growth strategy is Phone Halo now pursuing?

Definition

Licensing

Term

Abby Covin owns a firm that manufacturers and sells high-end furniture and home accessories. She is currently trying to grow her firm by developing new products. Abby is pursuing a(n) ________ growth strategy.

Definition

internal

Term

New product development, other product-related strategies, and international expansion are examples of:

Definition

internal growth strategies

Term

Internally generated growth is often called ________ growth because it does not rely on outside intervention.

Definition

organic

Term

What is an example of an external growth strategy?

 

Definition
licensing
Term

Which of the following is an advantage of internal growth strategies?

Definition

encourages internal entrepreneurship

Term

A(n) ________ seeks to increase the sales of a product or service through greater marketing efforts or through increased production capacity and efficiency.

Definition

market penetration strategy

Term

________ is work that is done for a company by people other than the company's full-time employees.

Definition

Outsourcing

Term

A(n) ________ strategy involves making additional versions of a product so that it will appeal to different clientele.

Definition

product line extension

Term

According to the textbook, international new ventures are:

Definition

businesses that, from inception, seek to derive significant competitive advantage by using their resources to sell products or services in multiple countries

Term

________ growth strategies rely on establishing relationships with third parties, such as mergers, acquisitions, strategic alliances, joint ventures, licensing, and franchising.

Definition

External

Term

A(n) ________ is the pooling of interests to combine two or more firms into one. A(n) ________ is the outright purchase of one firm by another.

Definition

merger, acquisition

Term

________ is the licensing of a recognized trademark or brand that the licensor typically controls through a registered trademark or copyright.

Definition

Merchandise and character licensing

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