Exam 3: Starting a Small Business

Jessie would like to start a landscaping company that concentrates on using indigenous plants.The feasibility study showed a need for R100 000 to start the company (she has R10 000), competition of three other companies (one concentrated on using indigenous plants) and buyers who were predominantly 60 years or older (who loved yard work).Which statement is true?

Jeff Bezos' original business plan involved taking orders for books and having the items shipped directly from the publisher to the customer.He modified the plan to include other products such as toys and decided to buy the toys from the producers and ship them from his own warehouse.This modification of the original plan is called:

An inside-out analysis is one that:

Many commuters grab a cup of coffee and drink it during their ride to work.So someone invented specially shaped cups that don't tip and lids with sip openings that close and don't spill.Which of these innovative ways of thinking best fits this situation?

Mike and Jane opened a franchise sporting goods store.Neither was athletic; neither had ever managed a retail store; and the business failed within one year.Which statement best explains these results?

For the past several years the borrowing interest rates has hovered around 10% in South Africa.This is an example of a(n) ______________ trend.

Careful analysis of the competitive environment can result in:

The trend toward more customised consumer goods is what kind of trend?

It is nearly impossible to make a business out of a hobby.

Kitty-Kat Korner fabric shop caters to the quilters in the region.Nowhere else can a quilter find everything she needs: fabrics, notions, pattern books, even quilting machines and quilting classes.This is not your typical fabric store by any means.Which of the following best describes Kitty-Kat's strategy?

Farmers wishing to sell grain cannot negotiate a price; they either accept the price offered or decline to sell their crop.This is an example of:

When Jeff Bezos launched Amazon.com, his idea of selling items he did not own from a website was unique.Which type of start-up is this?

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

Morris built a thriving business by selling tailor-made clothing at off-the-rack prices.All other custom-clothing stores charge much higher prices.We can say that Morris has a(n):

The two broad strategies for building a competitive advantage are the _____ strategies.

_____ refers to the way entrepreneurs identify new products or services that may lead to promising businesses.

As China's production of exportable goods increases, Chinese workers have more money to spend on consumer items.Other developing countries are experiencing the same growth.Which type of trend does this represent?

Describe the differences and relationships between resources, capabilities and core competencies.How do these items relate to inside-out analysis?

Which statement is an example of a global trend?

Compare and contrast personal experience, hobbies and personal interests, and accidental discovery as a source of start-up ideas.Use examples to strengthen the discussion.