Exam 13: Strategies for Growth and Managing the Implication of Growth

Define and explain the principles of desire,effectiveness and analysis as they relate to time management. A.Desire - requires that the entrepreneur recognize that he or she is a time waster,that time is an important resource,and that there is a need to change personal attitudes and habits regarding the allocation of time.Therefore,effective time management depends on the entrepreneur's willpower,self-discipline,and motivation to optimize his or her time. B.Effectiveness - requires the entrepreneur to focus on the most important issues,even when under pressure.Whenever possible,an entrepreneur should try to complete each task in a single session,which requires that enough time be set aside to accomplish that task.This eliminates time wasted in catching up to where one left off.Although quality is of course important,perfectionism is not and often leads only to procrastination.The entrepreneur must not spend excessive time on trying to make a small improvement in one area when time would be better spent in another area. C.Analysis - provides information to the entrepreneur about how time is currently being allocated,which will also highlight inefficient or inappropriate investments of time.The entrepreneur should track his or her time over a two week period,using a time sheet with 15-minute intervals,and then analyze how time has been spent,where time has been wasted,and how these "time traps" can be avoided in the future (using the other principles).For example,the entrepreneur should not "reinvent the wheel" in solving similar problems;rather,standardized forms and procedures should be developed for all recurring events and operations.

A market development strategy would not involve:

When a retail tire store buys a tire wholesaler this is an example of horizontal integration.

The value-added chain is usually available only to large national firms.

The _______ requires that the entrepreneur recognize that he or she is a time waster,that time is an important resource,and that there is a need to change personal attitudes and habits regarding the allocation of time.

What benefits can an entrepreneur receive from better time management?

Forward integration is taking a step back on the value chain toward the raw materials.

Time management is the process of improving an individual's productivity through more efficient use of time.

What are the 4 main growth strategies discussed in the text? Briefly define each. to grow by encouraging existing customers to buy more of the firm's current products to grow by selling the firm's existing products to new groups of customers to grow by developing and selling new products to people who are already purchasing the firm's existing products to grow by selling a new product to a new market

Which of the following is not a benefit of time management?

Using a large proportion of part-time workers:

___________ refers to a diversification strategy that involves taking a step forward (down)on the value-added chain toward the customers.

If the existing product is being sold to teenagers in one country and new entry involves selling the existing product to teenagers in a new country then this represents a new product use.

The computerized system developed by the grocery and pharmaceutical industry to link chain members is:

One advantage of leasing equipment is that lease payments represent an expense and can be used as a tax deduction.

If employees are spread too thin because of growth,the firm will face problems of employee morale and increased employee turn over.

A recognition of the need to change personal attitudes and habits regarding the allocation of time is known as the principle of desire.

The principle of reanalysis requires the entrepreneur to focus on the most important issues,even when under pressure.

Entrepreneurs in the _____________ quadrant of firm growth aspire to grow their businesses but do not possess the ability to do so.

Entrepreneurs in the _____________ quadrant of firm growth possess the abilities to grow but do not aspire to grow their businesses.