Exam 5: Managing Entrepreneurially

As their ventures grow,entrepreneurs need to put certain controls in place to ensure the organization runs smoothly.This does not come easy for many of them.A typical growth challenge of an entrepreneurial venture is ________.

In evaluating an idea for an entrepreneurial opportunity,a commonly used,structured approach called a feasibility study analyzes the various aspects of a proposed venture.

It is not vital that an entrepreneur develop a business plan when planning a venture.

A Mature Café (Scenario) Sarah has been operating and growing her café in an upscale neighbourhood for almost five years. She is happy with how the business has continued to increase in revenues as her customer base has become loyal over the years. She has just over 30 employees, two of whom are managers. The lease on the space is coming up for renewal and this has brought up the notion of leaving the business and exploring other interests she has in travelling through Africa and Southeast Asia. Sarah has worked hard and she wants to be sure she gets as much out of the business as she put into it. Another factor is the increasing competition in the area and the sinking feeling she has that it will be next to impossible to differentiate her business from the big chains opening on several street corners. Her fear is that her sales may have plateaued and there in fact will be a decrease in sales in the near future. -In spite of all the questions Sarah has about whether to sell,or reinvent the business,and so on,she is remaining ________ about opportunities she can get involved in aside from the café and any new ideas that may surface to give her a chance to diversify.

Business model is about ________ while delivering products or services to customers.

Research directed toward acquiring new knowledge rather than toward a practical objective is known as curiosity-driven research.

Entrepreneurship is ________.

One final part of completing a feasibility study is uncovering potential sources of financing.

As successful entrepreneurs realize that they cannot do everything by themselves,they must decide on an appropriate organizational structure if they want to continue to effectively carry out the activities of the venture.

In a short essay,explain in detail the three main issues in controlling an entrepreneurial venture.Give specific examples to support your answers.

For the past two months,Ian has been looking at the potential of a new compact solar capture technology he has developed.This technology would make it economically feasible for condominium owners to harness the sun on their balconies and use the generated electricity to offset the power purchased from their local electricity provider.If the business takes off,it would revolutionize the relationship between power authorities and their customers-where both sides would be power generators and clients.This process is known as ________.

For successful companies ________ matter more than R & D in enabling innovation.

A New Subsidiary (Scenario) Philip works for a large multinational corporation with offices in 23 countries, 64,000 employees worldwide, and $8 billion in annual sales. The company was involved in several different industries: automotive parts, rapid transit systems, and recreational vehicles. Philip is the executive vice-president of new technology ventures. Philip wants you to investigate and potentially launch a business focusing on alternative energy systems. The first area you are to explore is the potential business opportunity of ocean tidal energy. You are to explore what technology already exists that can be exploited, what additional technology development is needed, and figure out the viability of the tidal energy as an entrepreneurial venture. -The idea for the marine tidal energy is not brand new,and the technology still holds a great deal of opportunity.Once you have thoroughly researched the venture's feasibility,the next most important step is to ________.

Lisa has been hired by Lexman Corporation,a large multinational hydro-electric engineering firm,to launch a brand-new business under a different name.Funding will come from Lexman,but they want to take a hands-off approach and let Lisa run it as if it were her own business.The enterprise will market small,low-cost solar generators that individual homeowners can purchase and then easily relocate to a new home if they move.Executives at Lexman have told Lisa that the main Outcome in the first three years is growth and market penetration and then more of a focus on profit in year four and beyond.This is definitely a(n)________.

Three months after launching your bike shop,business is stabilizing at a level a bit higher than you anticipated.This is good for the bottom line but is creating stress due to the extra hours you have been working to ensure the business runs properly.It is clear you need people to help you.The first thing you need to do is ________.

In evaluating an idea for an entrepreneurial venture you need to examine the marketplace considerations as well as the ________ considerations in order to obtain a balanced view.

Entrepreneurs need to address growth strategies as part of their business planning and should not be ________ in that planning.

In one survey it was discovered that the biggest source of ideas for entrepreneurial ventures is ________.

Besides focusing on controlling critical inflows and outflows,a contingency plan needs to also include identification of specific strategies for cutting costs as well as the possible ________.

Angela's Thesis Coaching Company (Scenario) Angela is finally starting to feel more at ease with her business. Six months since the launch of her Ph.D. Thesis Masters she is starting to see revenues climb and her associates are producing great work—and more importantly, her customers are happy. Ph.D. Thesis Masters (PTM) provides coaching and research services for masters and Ph.D. students working on their theses. Angela discovered that many students need help with much of the grunt work of formatting, meeting deadlines, and doing secondary research of the existing literature. Her associates are Ph.D. graduates who have successfully completed their theses and can now guide other students and help them with the related pressures and quality guidelines. Angela has worked out a formula where she charges student clients $75 per hour and pays her associates $45, leaving her with a $30 gross profit (or gross margin) for every hour of work completed. Her customers are happy and her associates are happy. -To get here,Angela had to complete a number of research tasks herself,the majority of which had to do with the potential of the student market,competitors,and the viability of her associates model,as well as ongoing understanding of how her services need to evolve.This type of research is most likely ________.