study

Question 1

what is a business plan

Answer 1

a written doc that explains every aspect of a new business venture

Question 2

explain how a business plan helps internally

Answer 2

roadmap for executing strats, forces founders to sit down and plan everything out

Question 3

explain how a business plan helps for external stakeholders

Answer 3

introduces possible investments, increases new venture credibility, shows that the company is viable and realistic

Question 4

why do businesses create business plans?

Answer 4

to clarify strategy, attract investors, gain credibility, develop operational plans, and compete effectivley

Question 5

what are the sections of a business plan?

Answer 5

executive summary
company description
industry analysis
market analysis
marketing plan
management team/company structure
operations plan
product/service
design/develop.
financial projections

Question 6

what are the 4 generic strategies for gaining comp. adv.?

Answer 6

1. cost leadership
2. differentiation
3. cost focus
4. differentiation focus

Question 7

what is cost leadership. example?

Answer 7

A strategy where a business aims to be the lowest-cost producer in its industry while serving a broad market. ex: walmart

Question 8

what is differentiation? ex?

Answer 8

A strategy where a business offers unique products or services that are hard to replicate. ex: apple

Question 9

What is cost focus? ex?

Answer 9

A strategy where a company keeps costs low but targets a niche audience. ex: in n out

Question 10

What is differentiation focus? ex?

Answer 10

A strategy where a company offers unique, high-end products to a niche audience. ex: lamborghini, prada

Question 11

What are the three main financial statements in a business plan?

Answer 11

1. income statement
2. balance sheet
3. cash flow statement

Question 12

what does an income statement show ?

Answer 12

shows profit/loss over time

Question 13

what does a balance sheet show?

Answer 13

shows assets, liabilities, and equity at a specific point in time

Question 14

what does cash flow statement show?

Answer 14

tracks cash inflows and outflows

Question 15

what is a pro forma financial statement?

Answer 15

A financial projection based on expected future performance rather than past data.

Question 16

What is break-even analysis?

Answer 16

A calculation that determines how many units a company needs to sell to cover its costs.

Question 17

What is a marketing strategy?

Answer 17

A company’s plan for attracting, engaging, and retaining customers while differentiating itself from competitors.

Question 18

Why is a marketing strategy important?

Answer 18

Identify target customers
Build brand awareness
Set pricing strategies
Optimize product placement
Improve customer retention

Question 19

What are the key components of a marketing strategy?

Answer 19

1. positioning
2. differentiation

Question 20

what is the marketing strategy - positioning?

Answer 20

how a company wants to be perceived relative to competitors

Question 21

what is the marketing strategy - differentiation?

Answer 21

unique features that set the product apart

Question 22

What is value-based pricing? ex?

Answer 22

Pricing based on what customers perceive as the product’s value, rather than production costs. Example: Luxury brands.

Question 23

What is cost-based pricing?

Answer 23

Pricing based on production costs plus a markup. Example: Walmart, Ryanair.

Question 24

What is a product attribute map?

Answer 24

A visual tool comparing two points of differentiation among competing products.

Question 25

What is the Business Model Canvas?

Answer 25

describes what makes this business valuable by outlining its feasibility, desirability, and viability

Question 26

explain feasibility

Answer 26

can we build it? can it be done reasonably?

Question 27

explain desirability

Answer 27

do customers want it?

Question 28

explain viability

Answer 28

can we generate value? will it make money long term?

Question 29

what are the three elements of business model canvas?

Answer 29

1. value 2. customers 3. cost/revenue

Question 30

explain the value element in the business model canvas

Answer 30

value prop, what problem do we solve

Question 31

explain customers element in business model canvas

Answer 31

channels, market segments, relationships

Question 32

explain the cost/revenue element of the business model canvas

Answer 32

most important costs, what resources are most expensive, are we cost driven or value driven, what value are people willing to pay at

Question 33

What is sustainability in business?

Answer 33

Meeting present needs without compromising future generations’ ability to meet theirs.

Question 34

What is greenwashing?

Answer 34

Misleading consumers about a product’s environmental benefits.

Question 35

What is the FTC Green Guide?

Answer 35

A set of guidelines by the Federal Trade Commission (FTC) to prevent deceptive environmental marketing claims.

Question 36

what is a NAICS code?

Answer 36

6 digit numerical code used by businesses/government to classify industries

Question 37

what is a concentrated industry?

Answer 37

dominated by a few large firms

Question 38

what is a fragmented industry?

Answer 38

large number of similar companies

Question 39

what is market segmentation?

Answer 39

breaking up market into subsets that behave in same way/have same needs

Question 40

ways to segment the market

Answer 40

geographically, demographically, psychographically, behaviorally, product type

Question 41

what are direct competitors? ex?

Answer 41

similar products/ services ex: coke and pepsi

Question 42

indirect competitors ex?

Answer 42

close substitutes, ex: water and milk and soda

Question 43

what are future competitors? example?

Answer 43

businesses that could move into direct or indirect competition. ex: clover milk launching soda line

Question 44

def of operations model

Answer 44

approach for making just one of what we are selling

Question 45

def of operations plan

Answer 45

how businesses will be run/how products will be produced

Question 46

what are the ways to frame your operations plan?

Answer 46

1. backstage, frontstage 2. day in the life 3. operations flow diagram

Question 47

what is backstage/frontstage?

Answer 47

backstage = behind the scenes frontstage = what customers experience

Question 48

what is day in the life ops plan framing?

Answer 48

visualizing what a typical day looks like for a business

Question 49

what is an ops flow diagram?

Answer 49

visual representation of how everything works

Question 50

examples of ops strategy

Answer 50

in-house or outsource

Question 51

explain what a development plan is

Answer 51

making something that doesn't exist yet, describing the current state of development, risks/challenges of that, and costs associated with it

Question 52

what can a patent protect

Answer 52

methods or innovations

Question 53

what can a trademark protect?

Answer 53

name/symbol

Question 54

what can copyright protect?

Answer 54

expression of something (song, movie)

Question 55

what is a trade secret?

Answer 55

Avoid disclosure altogether, which gives owners a competitive advantage in the marketplace

Question 56

what elements of a business plan would be found in the operations plan?

Answer 56

1. operations model and procedures 2. business location 3. facilities and equipment 4. operations strategy and plans

Question 57

What is the difference between a goal and a strategy?

Answer 57

A goal is an objective (e.g., increase sales), while a strategy is how to achieve it (e.g., targeting a new customer segment).

Question 58

What is the "value stick" framework?

Answer 58

A way to visualize competitive advantage by increasing customer willingness to pay or decreasing supplier costs.

Question 59

What is the "corridor principle"?

Answer 59

The idea that entrepreneurs discover new opportunities as they progress in their ventures.