Test Bank for Entrepreneurship - Questions and Correct Answers Latest Update 2024

Test Bank for Entrepreneurship - Questions and Correct Answers Latest Update 2024 Entrepreneur - Answers A person that takes initiative to bundle resources in innovative ways and is willing to bare the risk of uncertainty. The Entrepreneurial Process - Answers Opporitunity Identification Opportunity Emergence Weigh Risk vs. Rewards Opportunity Recognition The Business Plan How Entrepreneurs Should Think - Answers Effectuate Be cognitively adaptable. Learn from failure. Role of Entrepreneurship in Economic Development - Answers Innovation is depicted as a key to economic development. Product-evolution process: Process through which innovation is developed and commercialized. Iterative synthesis: The intersection of knowledge and social need that starts the product development process. New entry - Answers Offering a new product for an established or new market Offering an established product to an old market Creating a new organization Resources as a Source of Competitive Advantage - Answers Resources must be: Valuable Rare Inimitable Non Substitutable Sources: Unique Experiences and Knowledge Market Knowledge Technological Knowledge Assessing the Attractiveness of a New Entry Opportunity - Answers Depends on the level of information and the willingness to make a decision without perfect information. The viability of a new entry can be described in terms of a window of opportunity. Error of Commission Error of Ommission - Answers Negative outcome from acting on the perceived opportunity. Negative outcome from not acting on the new entry opportunity. Entry Strategy: First-Mover Advantages and (Dis)Advantages - Answers Advantages: Less Competition Cost Advantages Secure suppliers and distributers, Position to satisfy Customers is better Expertise through participation Disadvantages: Must learn success factors Common Environmental changes Demand Uncertainty First Mover Tradeoffs - Answers Customer Uncertainty Lead time -Building customer loyalties. -Building switching costs. -Protecting product uniqueness. -Securing access to important sources of supply and distribution. Risk Reduction Strategies - Answers Market Scope Strategy -Narrow-scope strategy: small product range to a small number of customer groups to satisfy a particular need ----High-end of the market represents a highly profitable niche. ----LEads to specialization -Broad Scope Strategy: a range of products across many different market segments ----Reduces risks with market uncertainties but increases exposure to competition. Imitation Strategy -franchising -me-too --adds legitimacy --reduce customer uncertainty and R&D Problems with newness - Answers Costs of Learning Role Conflict Facilitate formal work and casual non work bonding Bonus: forced to learn a lot first hand Trends - Answers Try to catch a new trend that will be in existence for a long time Sources of New Ideas - Answers Consumers Existing Products or Services Distribution Channels Federal Government R&D Product Planning and Development Process - Answers Idea Stage Concept Stage Product Development Stage Test Marketing Stage What is the Business Plan? - Answers A document describing relevant internal and external elements, and strategies for starting a new venture. Addresses short term an long term decision that will be made in the first 3 years. Why is the Business plan valuable - Answers Helps evaluate the viability of the venture. Helps organize ones thoughts and plans for the organization. Help obtain financing. Feasibility study - Answers Must be completed before the business plan sets feasible goals, marketing strategy, financing, and production Gather information using upside-down pyramid - Answers general enviromental and demographic trends national trends in the industry local environmental and demographic trends local trends for the industry local competition market positioning market objectives Why some business plans fail - Answers Goals are unreasonable Objectives are not measurable Lack of experience in the planned business No sense of potential threats or weaknesses to the business. No customer need was established Business Canvas Exercise - Answers Key Partners Key Activities Key Resources Value Proposition Choosing a Partner - Answers Should have omplementry skills What resources do they bring: human: skills and knowledge social: networked