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103 Cards in this Set
- Front
- Back
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A company's plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it generates.
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Business Model
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A written document describing all the aspects of a business venture, which is usually necessary to raise money and attract high-quality business partners.
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Business Plan
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Behavior orientation exhibited by established firms with an entrepreneurial emphasis that is proactive, innovative, and risk taking.
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Corporate Entrepreneurship
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The process by which new products and technologies developed by entrepreneurs over time make current products and technologies obsolete; stimulus of economic activity.
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Creative destruction
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Companies that bring new products and services to market by creating and seizing opportunities.
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Entrepreneurial firms
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The position of a firm on a conceptual continuum that ranges from highly conservative to highly entrepreneurial.
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Entrepreneurial intensity
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The process by which individuals pursue opportunities without regard to resources they currently control.
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Entrepreneurship
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The ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs.
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Execution intelligence
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The process of creating something new which is central to the entrepreneurial process.
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Innovation
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Businesses that provide their owners the opportunity to pursue a particular lifestyle and earn a living while doing so. (e.g., ski instructors, golf pros, and tour guides).
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Lifestyle firms
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Entrepreneurs who are often characterized as willing to assume a moderate amount of risk in business, being neither overly conservative nor likely to gamble.
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Moderate risk takers
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An entrepreneur's belief that his or her business will positively influence people's lives; one of the characteristics of successful entrepreneurs.
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Passion for their business
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A defining characteristic of successful entrepreneurs that emphasizes producing good products with the capability to satisfy customers
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Product / customer focus
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Small firms that yield a level of income for their owner or owners that is similar to what they would earn when working for an employer (e.g., dry cleaners, convenience stores, restaurants, accounting firms, retail stores, and hairstyling salons.
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Salary-substitute firms
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Then event that prompts an individual to become an entrepreneur (e.g., losing a job, inheriting money, accommodating a certain lifestyle).
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Triggering event
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Relative worth, importance, or utility.
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Value
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A technique used to quickly generate a large number of ideas and solutions to problems; conducted to generate ideas that might represent product or business opportunities.
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Brainstorming
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States that once an entrepreneur starts a firm and becomes immersed in an industry, "corridors" leading to new venture opportunities become more apparent to the entrepreneur than to someone looking in from the outside.
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Corridor principle
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The process of generating a novel or useful idea.
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Creativity
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Panel of individuals set up be some companies to meet regularly to discuss needs, wants, and problems that may lead to product, service, or customer service ideas.
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Customer advisory boards
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A form of anthropological research used by companies to make sure customers are satisfied and to probe for new product ideas by sending researchers to the customers' homes or business.
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Day-in-the-life research
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The ability to notice things without engaging in deliberate search.
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Entrepreneurial alertness
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A gathering of five to ten people who have been selected based on their common characteristics relative to the issue being discussed; conducted to generate ideas that might represent product or business opportunities.
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Focus group
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A thought, impression, or notion.
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Idea
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A physical or digital repository for storing ideas.
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Idea bank
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Any product of human intellect, imagination, creativity, or inventiveness that is intangible but has value in the marketplace and can be protected through tools such as patents, trademarks, copyrights, and trade secrets.
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Intellectual property
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A privately maintained Internet site that can be accessed only by authorized users.
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Intranet
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Entrepreneurs who identified their idea through social contacts.
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Network entrepreneurs
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A favorable set of circumstances that creates a need for a new product, service, or business.
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Opportunity
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An entrepreneur recognizes a problem and creates a business to fill it.
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Opportunity gap
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The process of perceiving the possibility of a profitable new business or a new product or service.
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Opportunity recognition
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Entrepreneurs who identified their business idea on their own.
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Solo entrepreneurs
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Relationships characterized by frequent interaction that form between like-minded individuals such as coworkers,friends, and spouses; these relationships rend to reinforce insights and ideas the individuals already have and, therefore, are not likely to introduce new ideas.
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Strong-tie relationships
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Relationships characterized by infrequent interaction that form between casual acquaintances who do not have a lot in common and, therefore, may be the source of completely new ideas.
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Weak-tie relationships
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The time period in which a firm or an entrepreneur can realistically enter a new market.
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Window of opportunity
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An instrument that is used to gauge customers' interest in a product or service.
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Buying intentions survey
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A representation of the product or service to prospective users to gauge customer interest, desirability, and purchase intent.
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concept test
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A preliminary evaluation of a business idea to determine if it is worth pursuing.
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feasibility analysis
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A preliminary financial assessment of a new venture that considers the total start-up cash needed, financial performance of similar businesses, and the overall financial attractiveness of the proposed venture.
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financial feasibility analysis
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a product testing methodology in which a company sends teams of testers to the homes or businesses of users to see how its products are working.
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follow-me-home testing
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A group of firms producing a similar product or service, such as airlines, fitness drinks, or electronic games.
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Industry
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An assessment of the overall appeal of the industry and target market for the product or service being proposed.
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Industry / market feasibility analysis
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A group of founders, key employees, and advisors that move a new venture from an idea to a fully functioning firm.
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New-venture team
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A study conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to e successful.
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Organizational feasibility analysis
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Research that is original and is collected firsthand by the entrepreneur by, for example, talking to potential customers and key industry participants.
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Primary research
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An assessment of the overall appeal of the product or service being proposed.
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Product / service feasibility analysis
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Data collected previously by someone else for a different purpose.
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Secondary research
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An explanation in a new firm's business plan of the sources of the numbers for its financial forecast and the assumptions used to generate them.
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Assumptions sheet
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A panel of experts asked by a firm's management to provide a counsel and advice on an ongoing basis.
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Board of advisers
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A panel of individuals who are elected by a corporation's shareholders to oversee the management of the firm.
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Board of directors
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A detailed evaluation of a firm's direct, indirect, and future competitors.
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Competitor analysis
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A quick overview of the entire business plan that provides a busy reader everything that he or she needs to know about the distinctive nature of the new venture.
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Executive Summary
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A document that spells out a company's operations and plans in much more detail than a summary business plan; the format that is usually used to prepare a business plan for an investor.
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Full business plan
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An analysis that breaks the industry into segments and zeros in on the specific segment (or target market) to which the firm will try to appeal.
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Market analysis
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The process of studying the industry in which a firm intends to compete to determine the different potential target markets in that industry.
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Market segmentation
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A firm's overall approach for marketing its products and services.
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Marketing strategy
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In a business plan context, a noteworthy event in the past or future development of a business.
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Milestone
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A statement that describes why a firm exists and what its business model is supposed to accomplish.
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Mission statement
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A blueprint for a company's operations; primarily meant for an internal audience.
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Operational business plan
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a graphic representation of how authority and responsibility are distributed within a company.
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Organizational chart
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How the entire company is situated relative to its competitors
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Position
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Projections for future periods, based on a firm's forecasts, and typically completed for two to three years in the future.
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Pro forma (or projected) financial statements
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The first physical depiction of a new product.
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Prototype
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Ratios showing the relationships between items on a firm's financial statements that are used to discern whether a firm is meeting its financial objectives and how it stacks up against industry peers.
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Ratio analysis
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A document, usually included in the financial section of a business plan, that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for.
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Sources and uses of funds statement
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A business plan 10 to 15 pages long that works best for companies very early in their development that are not prepared to write a full plan.
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Summary business plan
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A computer generated 3-D image of an idea.
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Virtual prototype
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Conditions that create disincentives for a new firm to enter an industry.
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Barrier to entry
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A tool for organizing the information a firm collects about its competitors to see how it stacks up against its competitors, provide ideas for markets to pursue, and identify its primary sources of competitive advantage.
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Competitive analysis grid
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The information that is gathered by a firm to learn about its competitors.
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Competitive intelligence
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A group of firms producing a similar product or service, such as airlines, fitness drinks, or electronic games.
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Industry
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A marketing strategy which is accomplished through achieving lower costs than industry incumbents through process improvements.
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Cost reduction strategy
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An industry that is experiencing a reduction in demand.
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Declining industry
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A phenomenon that occurs when mass-producing a product results in lower average costs.
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Economies of scale
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A new industry in which standard operating procedures have yet to be developed.
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Emerging industry
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A sometimes significant advantage, created by the opportunity to establish brand recognition and/or market power, gained by the first company to produce a product or service or the first company to move into a market.
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First-mover advantage
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An industry characterized by a large number of firms approximately equal in size.
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Fragmented Industry
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When one firm starts acquiring similar firms that are located in different geographic areas.
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Geographic roll-up strategy
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An industry that is experiencing significant international sales.
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Global industry
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An international expansion strategy in which firms compete for market share by using the same basic approach in all foreign markets.
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Global strategy
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Business research that focuses on the potential of an industry
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Industry analysis
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A competitive strategy in which the firm tries to become the dominant player in the industry.
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Leadership strategy
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An industry that is experiencing slow or no increase in demand, has numerous (rather than new) customers, and has limited product innovation.
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Mature industry
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An international expansion strategy in which firms compete for market share on a country-by-country basis and vary their product or services offerings to meet the demands of the local market.
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multidomestic strategy
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A marketing strategy that focuses on a narrow segment of the industry.
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Niche strategy
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The way in which a firm interacts with its customers.
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Customer interface
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An overly narrow focus that prevents a firm from seeing an opportunity that might fit its business model.
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Business concept blind spot
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Initiative that revolutionizes how products are sold in an industry.
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Business model innovation
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The overall manner in which a firm competes relative to its rivals.
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Core strategy
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Generic strategy in which firms strive to have the lowest costs in the industry relative to competitors' costs and typically attract customers on the basis of price.
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Cost leadership strategy
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A strategy that firms use to provide unique or different products to customers. Firms using this strategy typically compete on the basis of quality, service, timeliness, or some other dimension that creates unique value for customers.
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Differentiation strategy
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The way a firm's product or service "goes to market" or how it reaches its customers; also, the channels a company uses and the level of customer support it provides.
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Fulfillment and support
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An approach that takes place when a service provider comes inside a partner's facilities and helps the partner design and manage its supply chain.
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Insourcing
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A statement that describes why a firm exists and what its business model is supposed to accomplish.
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Mission statement
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A range that defines the products and markets on which a firm will concentrate.
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Product/market scope
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The process of adapting a company's core competencies to exploit new opportunities.
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Resource leverage
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Anything rare and valuable that a firm owns, including plant and equipment, location, brands, patents, customer data, a highly qualified staff, and distinctive partnerships.
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Strategic Assets
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A company or vendor that provides parts or services to another company.
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Supplier
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A network of all the companies that participate in the production of a product, from the acquisition of raw materials to the final sale.
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Supply chain
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The coordination of the flow of all information, money, and material that moves though a product's supply chain.
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Supply chain management
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A competitive advantage that is sustainable normally as the result of the unique combination of core competencies and strategic assets that a firm possesses.
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Sustainable competitive advantage
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The limited group of individuals or businesses that a firm goes after or tries to appeal to at a certain point in time.
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Target market
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The string of activities that moves a product from the raw material stage, through manufacturing and distribution, and ultimately to the end user.
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Value chain
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