Finals_7 E Myth Revisited by M Gerber Flashcards
(21 cards)
This says that small businesses are started by
entrepreneurs risking capital to make a profit.
E-MYTH
Understanding the technical work of a business equates
to understanding how to run that business. However, it is
fundamentally flawed and often leads to business failure.
THE FATAL ASSUMPTION
10%, it is a visionary, thriving in the future and driving
innovation through creativity and strategic thinking.
Bounded by how many managers he can engage in
pursuit of their vision.
THE
ENTREPRENEURIAL
PERSONALITY
20%, it is pragmatic, focused on planning, order and
predictability, living in the past and craving stability.
Bounded by how many technicians they can manage.
THE MANAGERIAL
PERSONALITY
70%, it is a practical doer, focused on the present and
driven by the desire to complete tasks efficiently.
Bounded by how much they can do.
THE TECHNICIAN
PERSONALITY
The owner relinquishes control without proper
delegation or management oversight.
MANAGEMENT BY
ABDICATION
A name used to distinguish a technician/staff from the
manager and business owner.
HARRY
This answers the question – What does the entrepreneur
see off in the distance that the technician finds so
difficult to see?
A business model that fulfills the perceived needs of a
specific segment of the customers in an innovative way.
THE
ENTREPRENEURIAL
MODEL
A way of doing business that has the power to
dramatically transform any small business from a
condition of chaos and disease to a condition of order,
excitement and continuous growth.
TURN-KEY
REVOLUTION
An American businessman, founder of McDonald’s,
recognized for his role in turning the singular hamburger
stand into the most successful global fast food
corporation by revenue.
RAYMOND ALBERT
KROC
The format used by McDonald’s that revolutionized the
American business.
BUSINESS FORMAT
FRANCHISE
A name pertaining to early franchise businesses.
TRADE NAME
FRANCHISES
2 LEVELS OF PEOPLE
INVOLVED IN TURN-
KEY REVOLUTION
- Franchisor
- Franchisee
The franchisors basically just license the right to small
companies to market their nationally known products
locally alone.
TRADE NAME
FRANCHISE
It does not only lend its name to smaller enterprises but
also provides franchisee with an entire system of doing
business including supply, schedule and workflow.
BUSINESS FORMAT
FRANCHISE
The working model of the franchise, it shows them how
a product works and how the system runs the business.
THE FRANCHISE
PROTOTYPE
A stage of business development which tells that
business is not just about products but also processes and
customer experience.
STAGE 1: INNOVATION
A stage of business development which refers to
tracking and analyzing customer responses to
innovations.
STAGE 2:
QUANTIFICATION
A stage of business development which systematize
successful innovations to ensure consistent quality and
efficiency.
STAGE 3:
ORCHESTRATION
A system designed into the prototype to produce a
marketing result.
MANAGEMENT
SYSTEM
The process through which you create your management
system, and teach your up-and-coming managers to use
it.
MANAGEMENT
DEVELOPMENT
