Entrep Ch 3 Creating Business Flashcards
(39 cards)
Who said “Problems are only opportunities in work clothes.”
Henry J. Kaiser, American industrialist
A group of people or organizations that may be interested in buying given product or service, has the resources to purchase it, and is permitted by law and regulation to do so.
A Market
This includes the offer, target market, and product and delivery capability—answering the questions of who, what, and
how.
Business definition
A solid business definition has three elements, what are these?
- The offer: What will you sell to your customers
- Target market: Which segment of the market are you aiming to
serve - Production and delivery capability: How will you provide your
offer to your targeted customers?
The fundamental ethical and moral philosophy and beliefs that form the foundation of the organization and provide broad guidance for all decision making.
Core Values
The culture of an organization is largely shaped by?
It’s leadership
Culture is composed by?
Composed of the core values in action.
Your competition is defined by your target market and can be?
It can be
Direct: selling the same or similar products to the same market
Indirect: selling different products that compete for the same share of customer spending
What are the 6 factors of competitive advantage?
- Quality: Can you provide higher quality than competing businesses?
- Price: Can you offer a lower price on a sustained basis than your
competition, or does your higher price reflect quality and/or
uniqueness? - Location: Can you find a more convenient location for customers?
- Selection: Can you provide a wider range of choices than your
competitors can? - Service: Can you provide better, more personalized customer service?
- Speed/Turnaround: Can you deliver your product/service more quickly than the competition?
According to _____ of New Venture Creation, a successful company
needs to do one of 5 things.
According to Jeffery Timmons
The factors that contribute to the ease or difficulty of a new competitor joining an established market.
Barriers to entry
To determine whether you have a competitive advantage that will enable you to outperform your closest and strongest competitors, ask these 3 questions:
- Competitive Offers
- Unique Selling Proposition (UPS)
- Cost structure
What is USP?
Unique Selling Proposition, the distinctive feature and benefit that set a company apart from its competition.
The combination of the business definition with its competitive advantage.
Competitive Advantage must be sustainable
Competitive Strategy
This is the plan for outperforming the competition
Strategy
These are the ways in which you will carry out your strategy.
Tactics
What is Gross Profit?
Total sales revenue
minus
Total cost
of goods sold.
What is EOU
Economics of one unit of sale
The amount of gross profit that is earned on
each unit of the product or service a business sells
This is the basic unit of the product or service sold by the business.
Unit of sale
Define These Units of Sale
Manufacturing
Wholesale
Retail
Service
In the same order,
It’s one order with x amount of quantity (like 100 Leche Flan)
A bulk of an item that should be cheaper than the same amount in retail. (Like 12 Leche Flan for 120 pesos)
1 Item (1 Leche Flan for 15 pesos)
Defined by units of time (Like 1 Hour of making Leche Flan)
What is COGS?
Cost of goods sold, The cost of producing
tangible item. (Materials and Labor)
What is COSS
Cost of services sold, The cost of delivering
a service.
Employees that actively produce or deliver a product or service
Direct labor
A term for money when it is exchanged internationally
Currency
