Exam 5: The Process

Suppose a course of events was described in the following manner: it was an open and free process involving restrictions, which provided checkpoints which pointed all activities in a specific direction. Is this a description of a process?

A business plan is a symbol of the understanding of how one - according to the non-linear model - gets from A to B

There is proof that entrepreneurs that reach the introduction stage and survive for a period after that differ from those that abandon a project in an early stage or wind up in a long period of waiting. A clear differentiator between the two is:

Research has shown that while planning and drafting a business plan does not necessarily ensure greater profitability, it does increase the likelihood that the venture will reach the introduction phase and once there, the enterprise will have considerably better prospects of sustained growth and survival.

Sarasvathy's effectuation model is a process.

MVP is an acronym for:

Sarasvathy proposes a packet that, according to her, reflects the entrepreneur's way of thinking and working. What are the three main components of this packet?

The Lean School defines a startup as "a temporary organization designed for finding and elaborating a sustainable business model in situations of extreme uncertainty."

Supporters of the business plan as a crucial tool for entrepreneurs explain how it forces them to strategically analyze the branch and market, penetrating and testing it as far as they can, without taking risks and jumping in blindly.

Assign the following as examples of causal or effectual reasoning. -Avoid risks that could end in failure! Avoid surprises. Don't experiment - plan!

In an effectual way of working, improvisation, experimentation, imagination and judgement are more important than in the causal way of working.

Assign the following as examples of causal or effectual reasoning. -Action is driven by goals and sub-goals, which determine what course of action is rational and with whom it should be pursued.

The book mentions a number of desirable team qualities, known as dynamic capabilities. These are "the group's ability to continuously interpret what is happening in their surroundings and, just as continuously, to reconfigure their resources and actions according to the insights gained."

The closest one can come is to try to achieve the best "fit" between the elements that form this book's structure. In other words, the environment, the people, the opportunity and the process.

Goal ambiguity is an expression used when discussing uncertainty. It means that:

Knightian uncertainty is an expression used when discussing uncertainty. It means that:

Assign the following as examples of causal or effectual reasoning. -One uses strategic partners and brings them on board to increase one's resources. Opportunities develop and take form via partners.

Supporters of the business plan as a crucial tool for entrepreneurs explain how it forces them to think through their offering early in the process and how it, for example, will be produced, packaged and distributed to reach and create value for the customer (and the business owner).

Effectual reasoning starts with available resources and lets the goal take shape via interaction with the environment (which may also supply resources).

In the discussion regarding causal and effectual rationality, the first is said to be typically useful when uncertainty is low and predictability is high, and the other when uncertainty is high and predictability is low.