Flashcards
MGMT 5300 Exam 1 Notes
Cards in this deck (22)
- 1Define entrepreneurFrom the French word Entreprendre, meaning a person that undertook the risk of new enterprise.
- 2Number of new businesses created each year in the economy600k - 800k
- 3Ratio of new businesses that fail8 out of 10 (most within 5 years)
- 4Top 3 reasons a business failsNo market need (42%), Ran out of cash (29%), and Not the right team (23%)
- 5Four types of entrepreneursSLAG: serial, lifestyle, aspiring, and growth
- 6Define the 4 types of entrepreneursS: moves from one venture to the next; L: develops enterprise around their individual circumstances; A: Have yet to make the leap but hope to be their own boss; G: Has the desire and ability to grow fast and large.
- 7Entrepreneurial TraitsSeeks new opportunities, self-discipline, pursues promising options and avoids problematic ones, focuses on adaptive execution, engages the energies of others, and leads by example
- 8The Spider Web ModelManaging a start up is analogous to building and maintaining a fragile spider-web which is under continuous attack.
- 9Near Neighbor NetworksEach node has a similar characteristic and is connected more or less equally to its neighbors.
- 10Scale-Free NetworksCertain nodes have a highly concentrated set of connections.
- 11Inter-NetworkType of scale-free network.
Entrepreneurs exploit its unique characteristics for finding resources, tackling problems, and creating efficient market entry strategies. - 125 stages of getting started1. Conduct Opportunity Analysis
2. Develop the plan and set up company
3. Acquire financial partners and funding
4. Determine resources required and implement plan.
5. Scale and harvest the venture (marketing, attract clients, success with product/service) - 13Disruptive InnovationAlso called radical innovation.
The change from candles to incandescent lighting. - 14Incremental InnovationAlso called derivative innovation.
The change between basic candles to designer candles. - 15Models for InnovationAnalogs: Automated Amazon Reordering- Taking one thing popular in one industry and making use of it in another. Intersection of Tech: Netflix- Innovation in technology on an already existing product. Points of Pain: Dollar Shave Club- Turning a threat into an opportunity.
Analysis of Existing Business: Fancy pizza joint- how do existing businesses in the industry work? You can be a cost leader or you can differentiate. - 164 Sources for Business IdeasPresent day work environment - 47%; secondary sources - 27%;
improving existing product/service - 15%;
vision for an opportunity - 11% - 17Market Issues Opportunity EvaluationNeed, Customers, Payback to User/Client, Product Lifestyle, Industry Structure, and Potential Market Size
- 18Financial and Harvesting Opportunity EvaluationProfits after Tax, Time to (break even, positive cash flow, ROI potential), Value, Capital Requirements, Exit Mechanism
- 19Competitive Advantage Opportunity EvaluationFixed and Variable Costs, Degree of Control, Barriers to Entry, Legal Contractual Advantage, Sources of Differentiation, and Competitors Mindset and Strategies
- 20Management and Risks Opportunity EvaluationManagement Team, Contracts and Networks, Risk, Fatal Flaws
- 214 Barriers to Market EntryEconomies of Scale: Firm that cannot produce the minimum efficient scale will be at a disadvantage;
Product differentiation: Entrants are forced to overcome customer loyalties to existing products/switching costs;
Cost advantage independent of scale: incumbents may have learning advantages;
Government Policies: May impose trade restrictions and/or grant monopolies - 225 phases of successRecognize the opportunity and act, investigate the need, develop the business plan, determine the resources needed, and manage the business.
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- Business/Economics Flashcards on MGMT 5300 Exam 1 Notes, created by Austin Hammond on 31/03/2023.
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