Exam 3: Getting Started

When conducting Outside-In analysis one should consider both the _____ and _____ environments.

The general environment is very narrow and includes the forces that directly impact a firm and its competitors.

Observations about the external environment and organizational potentials can be brought together by means of

Which of the following is a recognized segment of the general environment?

According to a study by the National Federation of Independent Business Foundation, the most common source of new product ideas for small business startups is

An increase in the rivalry among existing competitors in a target market

Startups are more likely to be successful when the entrepreneur first evaluates his or her own capabilities and then looks for a new product or service idea, as opposed to beginning with a need in the marketplace and then relating those to personal capabilities.

A computer technician recognizing a need for more atheistically pleasing computers would be said to have entrepreneur _____.

Resources can be either tangible or intangible in nature.

Which type of strategy requires a firm to be the lowest-cost producer within the market?

Name and describe the two broad-based strategy options that a firm can select when pursuing a competitive advantage in the marketplace.

Hobbies of retiring business executives can spawn startup ideas.

A fatal flaw is a circumstance or development that, in and of itself, could render a new business unsuccessful.

List the five factors that determine the nature and degree of competition in an industry, as presented by Michael Porter in his book Competitive Advantage.

A focus strategy is best described as

Many new businesses are formed as a result of the entrepreneur's previous work experience, through which he or she sees ways to improve or modify a product.

Mark Michaels is the owner of Delectable Delights, a specialty store offering chocolates, candies, and fruit baskets. After a recent analysis of the competitive environment, Michaels concluded that three distinct consumer segments exist for his products-A, B, and C consumers. In an effort to maximize the effectiveness of its strategy, Michaels has decided to focus on fulfilling the needs of A consumers. He is employing a _____ strategy.

As described in the textbook, a Type C idea involves

In marketing terms, a focus strategy depends upon market segmentation.

What type of idea accounts for the largest number of startups?