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

_______ strategies involve developing and selling new products to people who are already purchasing the firm's existing products.

The entrepreneur has which of the following responsibilities regarding taxes?

Most life-style entrepreneurs eagerly pursue firm growth.

The principle of teamwork states that an entrepreneur spends too much time with employees and should try to become less accessible to them in order to increase their efficiency.

Growing ventures tie up more cash in their inventory than in any other part of the business.

Explain the 4 types of entreprenuers and firm growth.

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

If employees are involved in the decision-making process,they are more motivated to implement the decided course of action.

The principle of prioritized planning requires the entrepreneur to categorize his or her tasks by their degree of importance and then to allocate time to tasks based on this categorization.

Acknowledgment that only a small amount of time is actually under one's control and that most of one's time is taken up by others is known as the:

Discuss the three types of market development strategies and give examples of each. A.New geographical market - This simply refers to selling the existing product in new locations.For example,a firm selling its products in Singapore could start selling its products in Malaysia,Thailand,and IndonesiA.This has the potential of increasing sales by offering products to customers who have not previously had the chance to purchase them.The entrepreneur must be aware of possible regional differences in customer preferences,language,and legal requirements that may necessitate a slight change in the product (or packaging). B.New demographic market - Demographics are used to characterize (potential)customers based upon their income;where they live;their education,age,and sex;and so on.For an entrepreneur that is currently selling the firm's existing product to a specific demographic group,the business could grow by offering the same product to a different demographic group.For example,a studio currently produces and sells computer games (specializing in games on baseball and soccer)to males between the ages of 13 and 17.However,there is an opportunity for this company to expand its sales by also targeting males between the ages of 24 and 32 who are university educated,have high disposable incomes,and would likely enjoy the escapism of these computer game products. C.New product use - An entrepreneurial firm might find out that people use its product in a way that was not intended or expected.This new knowledge of product use provides insight into how the product may be valuable to new groups of buyers.For example,when I moved from Australia to Chicago,I bought a baseball bat.I did not use the bat to play baseball;rather I kept it beside my bed for security against anyone who might break into my apartment.Another example is four-wheel-drive vehicles.The original producers of this product thought that it would be used primarily for off-road recreational driving but found that the vehicle was also popular among housewives because it was big enough to take the children to school and carry all their bags and sporting equipment.Knowledge of this new use allowed the producers to modify their product slightly to better satisfy customers who use the product in this way.An advantage from using a market development strategy is that it capitalizes on existing knowledge and expertise in a particular technology and production process.

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

One of the most successful diversification strategies is to diversify into unrelated products or unrelated markets to spread the risk.

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

A product development strategy relies on taking market share from competitors.

Most entrepreneurs could benefit from implementing time management techniques.

The _________ captures the steps it takes to develop raw materials into a product and get it into the hands of customers.

A firm that manufactures washing machines starts to manufacture detergent illustrates _______ integration.

Identify and describe the three major types of diversification growth strategies.

Creating a positive organization culture involves: