BSM 200 FINAL EXAM UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. What is a startup?
Answer:
an idea for a scalable business model
Question:
2. Issues for a Growth Business?
Answer:
-Focus Changes (moving into Growth Phase)
-People, processes, prioritization, pace Potential for overtrading Risk Increases Higher Stakes
Question:
3. Growth Stages 1-2
Answer:
Stage 1: Inception or Survival Owner, Capital, Product, crucial relations (one significant customer,
supplier or tech)
Stage 2: Growth Managers, Finance, Competition, systems, formal research, wider network?
Question:
4. Owner Preferences Matter!
Answer:
Yes - Growth Pursuit of further or new growth by owners intimately involved
No - Disengagement Owner takes a step back and professional managers take over), focuses on their own
interests or ventures
Question:
5. Why don't entrepreneurs scale?
Answer:
-Loyalty to comrades
-Task orientation
-Excessive attention to detail
-Single mindedness to ONE product (idea/skill)
-Working in isolation
Question:
6. Stage 2 Growth
Answer:
Financially acceptable (know how it will be financed)
-Strategically acceptable (always improve and establish in the market)
-Operationally acceptable (management knows how to control & support) (Money, Time, Skills)
, Question:
7. (5) Needs of Growing Business
Answer:
1. Structure: Formal organizational structure
2. Finance: Access to capital to grow and operate
3. Human capital: Hire the right people
4. Operations: More customers with increasing demand for products and services
5. Administration: Better accounting and management systems, better HR tools
Question:
8. (4) Challenges of Growing Business
Answer:
1. Business focus Too many ideas- a need to focus
2. Market situation Increased competition and changing marketplace
3. Marketing Different promotional tools and strategies
4. Overall Owners want to grow?
Question:
9. Smart Growth (Edward Hess)
Answer:
1. Being better is more imp than being bigger (revenue> how to improve its customer value proposition?
better than its competitors. Must be good first= optimal room to grow
2. NOT "Grow or Die" but "Improve or die"
3. Growth is a complex experimental learning process, depends on people/leader/culture
4. Growth is outcome of a comprehensive internal corporate system, leaders, culture and processes BSM
200
5. Constant improvement; scaling needs organic growth and small strategic acquisitions
6. Needs diverse thinking, strategic reframing, customer co-creation, tolerance of mistakes,
7. Growth creates risk
8. Do what you do, faster, better, cheaper
Question:
10. Preconditions to Growth
Answer:
-Preparatory steps to manage risks of growth
-Can we link it to CVP (Customer Value Proposition) (While diversifying do not kill focus)
-Evaluate Costs (Per unit, customer relationships
Question:
11. Questions- Preconditions for Growth
Answer:
Are you ready? CEO always had plans to grow, when public, investors push Is the market ready? Sales
growth supported scaling, new product availability supported product innovation,research on demand Is
the business ready? Walk through it, make a spreadsheet, be thorough (1 weakness may disrupt a system)
Question:
12. Risks of Growth
AND CORRECT ANSWERS
Question:
1. What is a startup?
Answer:
an idea for a scalable business model
Question:
2. Issues for a Growth Business?
Answer:
-Focus Changes (moving into Growth Phase)
-People, processes, prioritization, pace Potential for overtrading Risk Increases Higher Stakes
Question:
3. Growth Stages 1-2
Answer:
Stage 1: Inception or Survival Owner, Capital, Product, crucial relations (one significant customer,
supplier or tech)
Stage 2: Growth Managers, Finance, Competition, systems, formal research, wider network?
Question:
4. Owner Preferences Matter!
Answer:
Yes - Growth Pursuit of further or new growth by owners intimately involved
No - Disengagement Owner takes a step back and professional managers take over), focuses on their own
interests or ventures
Question:
5. Why don't entrepreneurs scale?
Answer:
-Loyalty to comrades
-Task orientation
-Excessive attention to detail
-Single mindedness to ONE product (idea/skill)
-Working in isolation
Question:
6. Stage 2 Growth
Answer:
Financially acceptable (know how it will be financed)
-Strategically acceptable (always improve and establish in the market)
-Operationally acceptable (management knows how to control & support) (Money, Time, Skills)
, Question:
7. (5) Needs of Growing Business
Answer:
1. Structure: Formal organizational structure
2. Finance: Access to capital to grow and operate
3. Human capital: Hire the right people
4. Operations: More customers with increasing demand for products and services
5. Administration: Better accounting and management systems, better HR tools
Question:
8. (4) Challenges of Growing Business
Answer:
1. Business focus Too many ideas- a need to focus
2. Market situation Increased competition and changing marketplace
3. Marketing Different promotional tools and strategies
4. Overall Owners want to grow?
Question:
9. Smart Growth (Edward Hess)
Answer:
1. Being better is more imp than being bigger (revenue> how to improve its customer value proposition?
better than its competitors. Must be good first= optimal room to grow
2. NOT "Grow or Die" but "Improve or die"
3. Growth is a complex experimental learning process, depends on people/leader/culture
4. Growth is outcome of a comprehensive internal corporate system, leaders, culture and processes BSM
200
5. Constant improvement; scaling needs organic growth and small strategic acquisitions
6. Needs diverse thinking, strategic reframing, customer co-creation, tolerance of mistakes,
7. Growth creates risk
8. Do what you do, faster, better, cheaper
Question:
10. Preconditions to Growth
Answer:
-Preparatory steps to manage risks of growth
-Can we link it to CVP (Customer Value Proposition) (While diversifying do not kill focus)
-Evaluate Costs (Per unit, customer relationships
Question:
11. Questions- Preconditions for Growth
Answer:
Are you ready? CEO always had plans to grow, when public, investors push Is the market ready? Sales
growth supported scaling, new product availability supported product innovation,research on demand Is
the business ready? Walk through it, make a spreadsheet, be thorough (1 weakness may disrupt a system)
Question:
12. Risks of Growth
