Exam 3: Starting a Small Business

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

The entrepreneur's "_____" is found at the point of overlap of emerging potentials in the external environment and the unique strengths and capabilities of the entrepreneur and the venture.

Carol enjoyed yarn crafts, but there were no yarn shops in her small town. She reasoned that there were many others nearby who might appreciate being able to purchase yarns and supplies without a long drive. Within a year her shop was profitable and expanding into larger space. Which of the following statements best describes this situation?

Match the term with its definition. -A preliminary assessment of a business idea that gauges whether the venture envisioned is likely to succeed

All of the following are trends in the general environment EXCEPT

Match the term with its definition. -An assessment that provides a concise overview of a firm's strategic situation

Match the term with its definition. -A benefit that exists when a firm has a product or service that is seen by its target market as better than that of competitors

Marketplace Farms is a regional cooperative of fig and orange growers. In order to compete against larger regional growers, the company relies on inexpensive packaging processes and lower-cost labor instead of machines. Marketplace Farms is relying on what type of strategy?

Laura discovered to her amazement that the skin oil she sold seemed to repel mosquitos. She relabeled the product and began selling it as alternative to brands such as Cutter and Off. Laura's startup is based on a new _____ idea.

A focus strategy is best described as

Tangible resources include

Match the term with its definition. -To refocus or recreate a startup if the initial concept turns out to be flawed

Match the term with its definition. -A plan of action that isolates an enterprise from competitors and other market forces by targeting a restricted market segment

Miriam opened a yarn craft store in her small town based on her personal interests and hobbies. There were no competitors locally; the merchandise was readily available; and she had the initial capital to open the store. Yet her business failed. Too few customers visited her store. What was Miriam's fatal flaw?

Containers Etc. manufactures household containers. In contrast to traditional market designs, all of the products are microwaveable, child-proof, and come in an assortment of 35 colors. Accordingly, Containers Etc. is pursuing a _____ 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

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

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

Drs. James and Janet Baker saw that many people experienced difficulty and frustration when typing, particularly from physical disabilities, so they invented a voice recognition software to allow users to talk to the computer. Their idea resulted in Dragon NaturallySpeaking, a popular talk-to-type software application. Which of the following suggestions for generating business ideas describes how the Bakers conceived their startup?

Many direct sales organizations suggest that the new "member" begin selling the product part time while continuing to work at his or her regular job. Which of the following explanations best fits this recommendation?