Exam 3: Starting a Small Business

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?

The diamond market is monopolized by the DeBeers organization, from mining to cutting and polishing to wholesaling.  Jewelers can do little to negotiate prices.  This situation typifies:

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 neighbors 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 chicken meat processing industry is characterized by:

Careful analysis of the competitive environment can result in:

When Sally realized her vintage clothing pieces were being bought by the local college students and not just their parents, she started adding more vintage pieces to her inventory.  Sally is

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

Which action is a cause for erosion of a small firm's focus strategy?

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)

Intangible resources include:

Serendipity describes a new product idea resulting from deliberate search activities.

During a feasibility analysis, an entrepreneur may discover a fatal flaw in the idea.

Angela noticed an interest among her friends and colleagues in wearing high-end watches and other jewelry for special occasions, so she started a company where customers could rent high-end jewelry. Angela is

When screening new business ideas, the entrepreneur need not focus on the size of the targeted market.

Katarina has founded three different businesses in the past eight years, all of which have become so successful she has sold them at large profits.  We can say Katarina is good at:

When conducting an outside-in analysis, one should consider the _____ environment followed by the  _____ environment.

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:

Consuela noticed significant growth in the Hispanic population in her mid-size town.  The local grocery carried mostly traditional American products.  She knew her neighbors would want familiar foods so she decided to open a food market catering to their preferences.  Which kind of startup will her store be?

An increase in the bargaining power of suppliers

O-MY-U once had a winning team in every college sport.  But athletes graduate and fortunes change.  Attendance at the games dropped when the team had a losing season.  Bob and Shirley found it difficult to attract enough guests to their bed-and-breakfast to cover their costs.  How would Michael Porter explain this?