Question 1

Describe the differences and relationships between resources, capabilities and core competencies. How do these items relate to inside-out analysis?

Accepted Answer

The answer of Describe the differences and relationships between resources,...

Question 2

Many commuters grab a cup of coffee and drink it during their ride to work. So someone invented specially shaped cups that don't tip and lids with sip openings that close and don't spill. Which of these innovative ways of thinking best fits this situation?

Accepted Answer

A)  Combine two businesses to create a market opening. 
B)  Study a product or service to see if you can make it "green." 
C)  Recognize a hot trend and ride the wave. 
D)  Study an existing product and explore ways to improve its function.

Question 3

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?

Accepted Answer

A)  From hobbies 
B)  From personal interests 
C)  From accidental discovery 
D)  From work experience

Question 4

Which segment is part of the general environment?

Accepted Answer

A)  The industry segment 
B)  The global segment 
C)  The information segment 
D)  The human resources segment

Question 5

It is nearly impossible to make a business out of a hobby.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

The answer of Select one of the ways of innovative...

Question 7

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:

Accepted Answer

A)  low barriers to entry. 
B)  availability of substitutes. 
C)  intense rivalry. 
D)  strong buyers.

Question 8

One of the drawbacks of SWOT analysis is:

Accepted Answer

A)  it is very time consuming. 
B)  a professional consultant must perform it. 
C)  its focus on present conditions. 
D)  it requires information about competitors not readily available to outsiders.

Question 9

Match the term with its definition.
-A plan of action that requires a firm to hold down its costs so that it can compete by charging lower prices and still make a profit

Accepted Answer

A) cost-based strategy 
B) focus strategy 
C) general environment 
D) industry environment 
E) inside-out analysis
F)intangible resources
G)new benefit ideas
H)new market ideas
I)new technology ideas

Question 10

Match the term with its definition.
-Startup ideas involving new or relatively new technology, centered around providing customers with a new product

Accepted Answer

A) cost-based strategy 
B) focus strategy 
C) general environment 
D) industry environment 
E) inside-out analysis
F)intangible resources
G)new benefit ideas
H)new market ideas
I)new technology ideas

Question 11

Match the term with its definition.
-The environment that includes factors that directly impact a given firm and all of its competitors

Accepted Answer

A) cost-based strategy 
B) focus strategy 
C) general environment 
D) industry environment 
E) inside-out analysis
F)intangible resources
G)new benefit ideas
H)new market ideas
I)new technology ideas

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

List the five factors that determine the nature and degree of competition in an industry, as presented by Michael Porter in his book Competitive Advantage. Why is the proper identification of these factors important for a new venture?

Accepted Answer

The answer of List the five factors that determine the...

Question 14

Richard could see the demand for towable recreational vehicles declining so beginning in the early 1970s he used his equipment, employees, and professional network to design and build utility trucks, a more recession-resistant industry. This is an example of:

Accepted Answer

A)  serendipity. 
B)  diversification. 
C)  innovative thinking 
D)  market ideas.

Question 15

Which of Michael Porter's four conditions for segmented market erosion occurred with Minnetonka, the small firm that is widely recognized as the first to introduce liquid hand soap?

Accepted Answer

The answer of Which of Michael Porter's four conditions for...

Question 16

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)

Accepted Answer

A)  core competency. 
B)  competitive advantage. 
C)  serendipity. 
D)  opportunity alertness.

Question 17

Match the term with its definition.
-Startup ideas centered around providing customers with new or improved products or services

Accepted Answer

A) cost-based strategy 
B) focus strategy 
C) general environment 
D) industry environment 
E) inside-out analysis
F)intangible resources
G)new benefit ideas
H)new market ideas
I)new technology ideas

Question 18

Miles' startup company began well but within a couple months he found he was unable to pay invoices from suppliers. He didn't understand how he could have this problem. He hired experts; his business idea was sound; and he had many new customers. What went wrong?

Accepted Answer

A)  Miles lacked critical technologies. 
B)  Miles lacked patents or copyrights. 
C)  Miles lacked raw materials. 
D)  Miles lacked cash resources.

Question 19

Match the term with its definition.
-The broad environment, encompassing factors that influence most businesses in a society

Accepted Answer

A) cost-based strategy 
B) focus strategy 
C) general environment 
D) industry environment 
E) inside-out analysis
F)intangible resources
G)new benefit ideas
H)new market ideas
I)new technology ideas

Question 20

Match the term with its definition.
-A company's routines and processes that can coordinate the combined use of its productive assets in order to achieve desired outcomes

Accepted Answer

A) capabilities 
B) competitive advantage 
C) competitive environment 
D) core competencies 
E) cost-based strategy
F)differentiation strategy
G)entrepreneurial alertness
H)fatal flaw
I)feasibility analysis

Exam 3: Starting a Small Business

Describe the differences and relationships between resources, capabilities and core competencies. How do these items relate to inside-out analysis?

Many commuters grab a cup of coffee and drink it during their ride to work. So someone invented specially shaped cups that don't tip and lids with sip openings that close and don't spill. Which of these innovative ways of thinking best fits this situation?

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?

Which segment is part of the general environment?

It is nearly impossible to make a business out of a hobby.

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

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:

One of the drawbacks of SWOT analysis is:

Match the term with its definition. -A plan of action that requires a firm to hold down its costs so that it can compete by charging lower prices and still make a profit

Match the term with its definition. -Startup ideas involving new or relatively new technology, centered around providing customers with a new product

Match the term with its definition. -The environment that includes factors that directly impact a given firm and all of its competitors

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

List the five factors that determine the nature and degree of competition in an industry, as presented by Michael Porter in his book Competitive Advantage. Why is the proper identification of these factors important for a new venture?

Richard could see the demand for towable recreational vehicles declining so beginning in the early 1970s he used his equipment, employees, and professional network to design and build utility trucks, a more recession-resistant industry. This is an example of:

Which of Michael Porter's four conditions for segmented market erosion occurred with Minnetonka, the small firm that is widely recognized as the first to introduce liquid hand soap?

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)

Match the term with its definition. -Startup ideas centered around providing customers with new or improved products or services

Miles' startup company began well but within a couple months he found he was unable to pay invoices from suppliers. He didn't understand how he could have this problem. He hired experts; his business idea was sound; and he had many new customers. What went wrong?

Match the term with its definition. -The broad environment, encompassing factors that influence most businesses in a society

Match the term with its definition. -A company's routines and processes that can coordinate the combined use of its productive assets in order to achieve desired outcomes