Flash Cards
Profit vs. Profitability
Profit: short term measure of absolute profit in a business
Profitability: holistic, long term outlook on a company’s ability to generate cash flow
Which would classify as a business?
Coca-Cola
City of Edmonton
Google
Red Cross
All of the above
All of the above
What is business?
Organizations that are designed to achieve a specific goal. Businesses typically have a financial goal, but these can be non-profit too
What do businesses do?
They use Capital, Labour and Managerial Acumen to form its business model and articulate its value proposition
What is Strategy
Coordinated efforts that connect vision, environmental analysis, plans and actions that create value for all stakeholders
Describe Characteristics of Each: Vision, Analysis, Plans & Actions
Vision: the most future oriented, where are we going and why?
Analysis: using quantitative and qualitative skills to assess and solve business problems
Plans: turning goals into actions, how can we get there?
Actions: execution of the plans
Which of these is most future oriented?
Vision, Analysis, Plans, Actions?
Vision
What is strategic analysis?
An internal and external look at information to develop insights
What strategic analysis method incorporates both internal and external analysis?
SWOT (Strengths, weaknesses, opportunities, threats)
What are examples of internal strategic analysis methods
GAP, VRIO, Value Chain
What are examples of external strategic analysis methods
PESTLE, Porter’s 5 Forces
Characteristics of Entrepreneurship
Creating value through change, coming up with innovative ideas to solve problems, and taking RISK
Who bears the most risk in a business
the entrepreneur
What is a social entrepreneur
An entrepreneur who creates social or environmental value
What’s the difference between leaders and managers?
Leaders set the vision and inspire
Managers get things done
