Exam 3: Starting a Small Business

Which factor determines the nature and degree of competition in an industry, as identified by Michael Porter in his book Competitive Advantage?

Which of the following could be considered a core competency?

A company that is the lowest-cost producer within the market will have what type of strategy?

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

An increase in the bargaining power of suppliers:

An example of an idea for a new start-up from a hobby is:

Tangible resources include:

Vernon worked in a cabinet shop until he became frustrated that his ideas for improving efficiency were falling on deaf ears.So he left and started his own cabinet shop where he could implement those ideas.From which source did his ideas for his start-up come?

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

Carol enjoyed yarn crafts but there were no yarn shops in her small town.She reasoned that there were many others nearby who might appreciate being able to purchase yarns and supplies without a long drive.Within a year her shop was profitable and expanding into larger space.Which of these statements best describes this situation?

What marketing activities suggest that a small business is following a focus strategy?

Laura discovered to her amazement that the skin oil she sold seemed to repel mosquitos.She relabelled the product and began selling it as an alternative to brands such as Peaceful Sleep and Tabard!.Laura's start-up is which kind?

Milton's Auto Service is a small auto maintenance and repair shop located in a small town in a garage behind Milton's house.Milton doesn't charge as much as auto dealerships so he has a steady stream of local customers.Which of the following best describes Milton's strategy?

The increased trade between South Africa and Namibia since the enactment of the Southern African Development Community Free Trade Agreement is related to the ____ element of the general environment.

Marketplace Farms is a regional cooperative of apple and peach growers.In order to compete against larger regional growers, the company relies on inexpensive packaging processes and lower-cost labour instead of machines.Marketplace Farms is relying on what type of strategy?

By observing trends in the use of leisure time, technology, or other areas, an entrepreneur can discover potential business ideas.

A differentiation-based strategy requires that a business:

As the success of the athletic teams at O-MY-U skyrocketed, so did attendance at the games.Out-of-town visitors found all the hotels fully booked.So Bob and Shirley opened their home to guests on weekends, operating as a bed-and-breakfast.Soon many of their neighbours did the same and Bob and Shirley found they could no longer fill all their rooms every game weekend.How would Michael Porter explain this?

Considering Michael Porter's five factors, the automotive industry in South Africa is characterised by:

Considering Michael Porter's five factors, we can say that the fast food hamburger industry is characterised by: