chapter 8 Flashcards Preview

405 Midterm 2 > chapter 8 > Flashcards

Flashcards in chapter 8 Deck (34):
1

the creation of new value by an existing organization or new venture that involves the assumption of risk.

Entrepreneurship

2

= the process of discovering and evaluating changes in the business environment

Opportunity recognition

3

Becoming aware of a new business concept

discovery

4

Analyzing the opportunity to determine whether it is viable or feasible to develop further

evaluation

5

funding a venture by pooling small investments from a large number of investors, often raised on the internet.

crowdfunding

6

companies organized to place their investors’ funds in lucrative business opportunities.

venture capitalist

7

Talk to potential target customers

Identify operational requirements

Conduct a feasibility analysis

evaluation phase

8

Can be spontaneous and unexpected

Can also result from a deliberate search

discovery phase

9

They are attractive
They are achievable
They are durable
They are value-creating

viable opportunities

10

are essential for entrepreneurial success

resources

11

depend on stage of venture development & venture scale

financial resources

12

Courage
Belief in one’s convictions
Energy to work hard

Entrepreneurial leadership

13

Extensive social contacts & strategic alliances
Technology, manufacturing, or retail alliances

Social capital

14

an entrepreneur’s most important asset

vision

15

Involves internal motivation
Intellectual commitment
Patience
Stamina, willingness to work long hours
Enthusiasm that attracts others

drive and dedication

16

Commit to knowing the customer
Providing quality goods and services
Paying attention to details
Continuously learning
Connecting the dots
Hiring people smarter than themselves

Commitment to excellence

17

creating new ways to solve old problems or meeting customers’ needs in a unique new way

pioneering new entry.

18

Imitators have a strong marketing orientation
Capitalizing on proven market successes
Introducing the same basic product or service in another segment of the market

Imitative new entry

19

Capitalizes on current market trends
Offers a product or service that is somewhat new and sufficiently different
Creates new value for customers
Captures market share

Adaptive new entry

20

Simpler organizational structure
Quicker decision-making to upgrade technology & integrate marketplace feedback

Overall cost leadership

21

Using new technology
Deploying resources in a radical new way

Differentiation

22

Using niche strategies that fit the small business mold

focus

23

Combine the best features of low-cost, differentiation, and focused strategies
Hold down expenses by having a simple structure
Create high-value products & services by being flexible & innovative

Pursuing combination strategies

24

intense rivalry, involving actions and responses among similar competitors vying for the same customers in a marketplace. Intense rivalry among similar competitors has the potential to alter a company’s strategy

Competitive dynamics

25

acts that might provoke competitors to react, such as new market entry, price-cutting, imitating successful products, and expanding production capacity

new competitive action

26

= a firm’s awareness of its closest competitors and the kinds of competitive actions they might be planning.

Threat analysis

27

= the extent to which competitors are vying for the same customers in the same markets.

Market commonality

28

= the extent to which rivals draw from the same types of strategic resources

Resource similarity

29

= major commitments of distinctive and specific resources to strategic initiatives.

Strategic actions

30

= refinements or extensions of strategies usually involving minor resource commitments

Tactical actions

31

involves new value creation, which

Threatens existing competitors
Changes the competitive dynamics of the marketplace

Entrepreneurial strategy

32

= degree of concentration of a firm’s business in a particular industry

. Market dependence

33

= a firm’s choice of not reacting to a rival’s new competitive action

Forbearance

34

= a firm’s strategy of both cooperating and competing with rival firms.

Co-opetition