Exam 4: External Analysis

When small businesses compete with large firms, a main disadvantage is

In the context of external analysis, once an entrepreneur has examined and developed insights about substitutes, elasticity of demand, ease of entry and exit, benchmarking, and industry trends, he or she should ________.

A small business owner must understand when an opportunity for a new business is truly an opportunity.

James has invested a large amount of money in his business; he is reluctant to just give up this investment, which he would have to do if he closed his business.This is an example of an exit barrier.

If a business owner cannot easily exit an industry, then that owner is more likely to use predatory pricing in an effort to generate cash flow and survive.

________ is an area of business that uses standards that are necessary for the business.

________ is studying and learning from a company outside of your industry that has a particular skill that is potentially critical to the company's operation.

Dennis wants to open up a bowling alley in his community.What types of questions would be used in the research of the industry?

Orthodox and unusual or unique competitive factors do not vary by industry.

When an owner visits a competitor to gather information, what information should be reviewed?

Most of the NAICS (North American Industry Classification System)data is based on the local market area.

One way to obtain the NAICS (North American Industry Classification System)code is to locate a direct competitor and research it through Dunn and Bradstreet, Lexis Nexis, etc.

A competitive advantage in a business could be ________.

In defining the industry, an application should be conceptualized not in its use but as a physical item.

Gerald is planning on setting up a burger joint in his hometown.He finds out the NAICS (North American Industry Classification System)code for his business.From this information, he is able to understand that his immediate area contains virtually no competitors and has the potential to do very well.In the context of the critical steps involved in conducting an external analysis, Gerald is ________.

The first part of an external analysis is to

A(n)________ consists of direct competitors selling similar products or services within a specified geographic radius.

What are the reasons for developing a competitive map?

________ describes those areas of a business that are unique or unusual as compared to standard practices of the industry.

Fragmented markets have