Midterm

Question 1

Name the critical success factors

Answer 1

Achieving financial performance 
Meeting customer needs
Gaining employee commitment
Encourage innovation and creativity 
Building quality products and services
Building distinct and competitive advantage

Question 2

What does SWOT stand for?

Answer 2

Strengths
Weaknesses
Opportunities
Threats

Question 3

The internal parts of the diamond-e framework (strengths and weaknesses)

Answer 3

Management preferences
Organization
Resources
Strategy

Question 4

External forces of diamond-e framework (opportunities and threats)?

Answer 4

PEST

Porters 5 Forces

Question 5

What is management preferences of diamond-e

Answer 5

The managers vision, preferences, biases, they control based off their opinion

Question 6

What is the organization part of the diamond-e

Answer 6

The company’s culture, capabilities, and structure

Skills, talents and company focus

Question 7

What is the resources part of the diamond-e?

Answer 7

Human, capital, financial

Employees capabilities, assets (capital) and money to spend

Question 8

What is an external analysis?

Answer 8

The process of scanning and evaluating the external environment

Question 9

What is a general environment and which model do you use for it?

Answer 9

What all businesses face, you use the PEST model

Question 10

What is a specific environment and what model would you use for it?

Answer 10

Affects the people in the specific industry and you use the Porters 5 forces model

Question 11

What are the PEST factors?

Answer 11

Political-legal
Economical
Social
Technological

Question 12

What is the political-legal factors?

Answer 12

Laws, regulations, taxes, trades

Question 13

What are the economic factors?

Answer 13

Inflation/deflation
Interest
Employment rates
Economic growth

Question 14

What are the social factors?

Answer 14

Customs, values, attitudes, demographics

Question 15

What are the technological factors?

Answer 15

Internet, information technologies, isn’t limited to computers and informations

Question 16

What are the Porters 5 Forces

Answer 16

Competitors
Substitutes
Potential entrants
Suppliers
Buyers

Question 17

What does the porters five Forces model do?

Answer 17

Predict the industry profitability and if company should enter the industry

Question 18

What is the competitors part of the PFF

Answer 18

The most powerful force, rivalry against firms who sell something similar

Question 19

Substitutes part of the PFF

Answer 19

Products that do a similar job, creates a price ceiling and increases cost of marketing
-should try to lock in customers and make yourself distinct

Question 20

Potential entrants of PFF

Answer 20

New, future competitors that can cause big changes and intensify the competition

Question 21

Buyers part of the PFF

Answer 21

The people who BUY your product

• There could be few buyers, low switching costs so you could for an alliance with other sellers to lock in customers
• partnering with 2 or more firms

Question 22

What does an entrepreneur do?

Answer 22

Identify an opportunity and access the resources to capitalize on it

Question 23

What is the entrepreneurship process

Answer 23

It’s influenced by PEST, generated ideas, weed out the bad ones and ensure you have a good idea with a competitive advantage

Question 24

What are the 3 components of the screening process

Answer 24

The idea creates/ adds value to the customer
The idea is unique
The idea is financially worthwhile

Question 25

What is the idea adds value part of the screening process

Answer 25

Solves a problem, meets a need and they are willing to pay for it

Question 26

What is the unique part of the screening process

Answer 26

It is different from existing products and substitutes, it can’t be easily copied

Question 27

What is the viable part of the screening process

Answer 27

If it’s financially worthwhile, if there are enough customers to buy it, can you overcome the barriers to entry, what forces are there

Question 28

What are the components of a high potential good idea for a venture

Answer 28

``` Product is valuable, unique and has a recurring revenue Market is reachable and growing Competition is not that good There are many suppliers to switch to Few substitutes You have networks and little competition ```

Question 29

What are the 3 components of accessing resources

Answer 29

Bootstrapping Debt vs. Equity Crowdfunding

Question 30

What is the bootstrapping part of accessing resources

Answer 30

Making do with as little as possible

Question 31

What is the debt vs equity part of the accessing resources

Answer 31

Debt: borrowing money from financial institutions and suppliers (with interest) Equity: savings, love money, investors

Question 32

What is the crowdfunding part of accessing resources

Answer 32

Getting money/ support from a lot of people vs just one | -if you invest they get something back

Question 33

What does a social entrepreneurship do?

Answer 33

Generate social value while operating with financial discipline Not for products; social value, solving a problem

Question 34

Key facets of social entrepreneurship?

Answer 34

- help overcome market inequities and failures - markets don’t address all societal needs - seek innovative solutions to the worlds wicked problems - can’t rely on donors and government funding

Question 35

What are dual stakeholders? From the social entrepreneurship

Answer 35

People who serve and support

Question 36

Who does a social entrepreneurship serve?

Answer 36

Serving the underserved, who can’t afford it access service

Question 37

How does a charity fund their work?

Answer 37

Through donations, not self sustaining

Question 38

How do social enterprises sustain themselves and what are examples of some

Answer 38

Sell their products or services in order to reinvest their profits -ex. Habitat for humanity, TOMS, SOS

Question 39

What is the objective of citing sources and APA formatting

Answer 39

You do not want to unintentionally plagiarize, make clear what your contribution is and how you build on prior work, show that you have done research and build off others work, make it easier for reader to go back to resources

Question 40

What are the 3 components of incorporating sources?

Answer 40

- summary- general overview - paraphrase - quotation

Question 41

What is the general guideline for citing sources and APA formatting

Answer 41

Provide author name/ organization Title Date when document was published Location(URL, page number)

Question 42

What is the strategy part of the diamond -E

Answer 42

The plan to pursue opportunities or avoid threats, must be internally and externally consistent

Question 43

Describe a small business

Answer 43

Fewer than 100 employees | Lead when it comes to innovation

Question 44

Describe a new venture

Answer 44

Recently formed organization that produces goods or services for sale New if it has been operating within 12 months

Question 45

What is an entrepreneur

Answer 45

A person that accepts the risks and opportunity involved in creating and operating a new venture