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 ?

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?

Julie, owner of a bed and breakfast inn, had been asked repeatedly to cater events.  Once she realized her kitchen was not being used during the later part of the day, she started the company.  This change is an example of

Janis wants to open a restaurant.  She is not interested in a franchise; she wants to build her business literally from the ground up.  When she does, her business will be classified as a:

Resources are best described as

The State of Maryland has recently imposed a "rain tax" based on the amount of non-water-absorbing surfaces on real estate.  Which type of trend does this represent?

Verlin 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 startup come?

Noland has identified an underserved market for his product.  Competitors are not likely to notice his efforts to attract his target market, and his product fills a need for these customers.  Noland has found:

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?

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

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

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

Select one of the ways of innovative thinking, explain it, and give an example of a business idea this type of thinking might generate.

Wilma needed wine glasses but all she had were candlestick holders and 8-ounce canning jars.  Gluing the two together, she created what she called "mountain crystal" which became a big hit.  The local crafters' association asked her to make enough for them to sell, and her business took off.  This is an example of building a business from:

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

Considering Michael Porter's five factors, the automotive industry in the United States is characterized by:

A SWOT analysis can be described best as

Which statement is an example of a political/legal trend?

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?

One of the drawbacks of SWOT analysis is: