Exam 3: Starting a Small Business

Briefly state the difference between a market and an industry.How are these two items related to small business success?

Match: 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 -Those capabilities that provide a firm with a competitive edge and reflect its personality

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

Peggy would like to open a dog grooming business in her home.Which of the following,if true,would indicate this is a good idea?

Compare and contrast personal experience,hobbies and personal interests,and accidental discovery as a source of startup ideas.Use examples to strengthen the discussion.

Match: a.opportunity recognition b.outside-in analysis c.pivot d.resources e.serendipity f.startups g.strategy h.SWOT analysis i.tangible resources j.​paradox of attraction -​The idea that an attractive market opportunity will draw competitors,diminishing its attractiveness

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

Match: 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 -Startup ideas involving new or relatively new technology,centered around providing customers with a new product

Match: 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 -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

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?

The trend toward more customized consumer goods is what kind of trend?

Rumpelstiltskin,an imp in a Grimm Brothers fairy tale,could spin straw into gold.We would call this a(n)

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:

Match: 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 -Startup ideas centered around providing customers with new or improved products or services

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?

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

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?

Drs.James and Janet Baker saw that many people experienced difficulty and frustration when typing,some because of physical disabilities.So they invented a voice recognition software to allow users to talk to the computer.Their ideas have become Dragon Naturally Speaking,a popular talk-to-type software application.Which of these statements describes their startup?

Match: 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 -A plan of action that isolates an enterprise from competitors and other market forces by targeting a restricted market segment

Arlene runs Aquabuddies,a company that makes figurines for aquariums.What type of strategy would be expected?