Shared Flashcard Set

Details

w212 Midterm
w212 midterm
20
Business
Undergraduate 3
03/03/2010

Additional Business Flashcards

 


 

Cards

Term

 The four steps of creativity

Definition

a.       Background or Knowledge Accumulation

b.      The Incubation Process

c.       The Idea Experience

d.      Evaluation and Implementation

                                                               i.      Most difficult step

Term

The four types of innovation

Definition

a.       Invention

                                                               i.      Totally new product, service, or process

b.      Extension

                                                               i.      New use or different application of an already existing product, service, or process

c.       Duplication

                                                               i.      Creative replication of an existing concept; adds own creative touch

d.      Synthesis

                                                               i.      Combination of existing concepts and factors into a new formulation or use

Term

The six pitfalls in selecting new ventures

Definition

a.       Lack of Objective Evaluation

b.      No Real Insight into the Market

c.       Inadequate Understanding of Technical Requirements

d.      Poor Financial Understanding

a.       Lack of Venture Uniqueness

b.      Ignorance of Legal Issues

 

 

Term

 The leading determinant of new ventures failing according to both entrepreneurs and venture capitalists

Definition
lack of management skill
Term

The five factors assessed in the comprehensive feasibility approach and what each covers

Definition

a.       Technical - Feasibility analysis of product or service

a.       Market - Determination of market opportunities and risks

a.       Financial - Analysis of financial feasibility and resources

a.       Organizational - Analysis of organizational capabilities and personnel requirements

a.       Competitive - Analysis of competition

Term

I.                    The five pitfalls to avoid in planning a business

Definition

a.       No realistic goals

b.      Failure to anticipate roadblocks

c.       No commitment or dedication

d.      Lack of demonstrated experience (business or technical)

e.      No market niche (segment)

Term

I.                    The ten sections of a typical business plan

Definition

a.       Executive Summary

b.      Business Description

c.       Marketing

                                    d.      Operations

e.      Management

f.        Financial

                                    g.       Critical Risks

h.      Harvest Strategy

i.         Milestone Schedule      

j.        Appendix or Bibliography

 

Term

Ten myths of entrepreneurship and their meanings

Definition

a.       Entrepreneurs are doers, not thinkers

b.      Entrepreneurs are born, not made

c.       Entrepreneurs are always inventors

d.      Entrepreneurs are academic and social misfits

e.      Entrepreneurs must fit the profile

f.        All entrepreneurs need is money

g.       All entrepreneurs need is luck

h.      Entrepreneurship is unstructured and chaotic

i.         Most entrepreneurial initiatives fail

j.        Entrepreneurs are extreme risk takers… the gamblers!

Term

    Entrepreneurial Schools of Thought Approach: The distinction between macro and micro views of entrepreneurship as well as the schools of thought included in each

Definition

Macro

                                                               i.      The Environmental School of Thought

                                                               i.      The Financial/Capital School of Thought

                                                               i.      The Displacement School of Thought

Micro

                                            i.      The Entrepreneurial Trait School of Thought

                                            i.      The Venture Opportunity School of Thought

                                               i.      The Strategic Formulation School of Thought

Term
The four strategies of the strategic formulation school of thought
Definition

a.       Mountain Gap Strategies, which refers to identifying major market segments as well as intrinsic (in-between) markets that arise from larger markets

b.      Great Chief Strategies, which refers to the skills or special talents of one or more individuals around whom the venture is built

c.       Better Widgets Strategies, which refers to innovations that encompass new or existing markets

d.      Water Well Strategies, which refers to the ability to gather or harness special resources (land, labor, capital, raw materials) over the long term

Term

The three marketing philosophies

Definition

a.       Production-driven philosophy

                                                               i.      Produce efficiently and worry about sales later

b.      Sales-drive philosophy

                                                               i.      Focus on personal selling and advertising to persuade customers to buy the company’s output

c.       Consumer-driven philosophy

                                                               i.      Research to discover consumer preferences, desires, and needs before production begins

Term
The five elements of a marketing plan
Definition

a.       Current marketing research

b.      Current sales analysis

c.       Marketing information system

d.      Sales forecasting

e.      Evaluation

Term

Introductory Stage

Definition

                                                               i.      Unique product

1.       Skimming – deliberately setting a high price to maximize short-term profits

                                                             ii.      Nonunique product

1.       Penetration – setting prices at such a low level that products are sold at a loss

Term

Growth Stage

Definition

                                                     Consumer pricing – combining penetration and competitive pricing to gain market share; depends on consumer’s perceived value of product

Term

Maturity Stage

 

Definition

                      Demand-oriented pricing – following a flexible strategy that bases pricing decisions on the level of consumer demand

Term

Decline Stage

Definition

                               Loss leader pricing – pricing the product below cost in an attempt to attract customers to other products

Term

The four basic areas of risk for entrepreneurs

Definition

a.       Financial risk versus profit motive varies in entrepreneurs’ desire for wealth

b.      Career risk – loss of employment security

c.       Family and social risk – competing commitments of work and family

d.      Psychic risk – psychological impact of failure on the well-being of entrepreneurs

Term

 The four sources of stress

Definition

a.       Loneliness

b.      Immersion in business

c.       People problems

d.      Need to achieve

Term

The four potentially negative characteristics of an entrepreneur

Definition

a.       Overbearing need for control

b.      Sense of distrust

c.       Overriding desire for success

d.      Unrealistic optimism

Term

The steps to engineering entrepreneurial thinking in corporations

Definition

a.       Set explicit goals

b.      Create a system of feedback and positive reinforcement

c.       Emphasize individual responsibility

d.      Give rewards based on results

e.      Do not punish failures

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