Business Basics & Competition
This is an individual or business that purchases a good or service.
What is a customer?
In PESTEL, the letter T represents this type of external factor.
What is technological?
This individual develops a new business and assumes its risks and potential rewards.
Who is an entrepreneur?
Owners, managers, and employees are examples of this type of stakeholder.
What are internal stakeholders?
This network connects the individuals and businesses involved from acquiring resources through final customer delivery.
What is a supply chain?
This occurs when a business provides a product that responds to customers' problems, needs, or wants.
What is value creation?
Inflation, unemployment, household income, and interest rates belong to this PESTEL category.
What are economic factors?
This is the simplest version of a product idea containing only its core features and used to gather customer feedback.
What is a minimum viable product, or MVP?
This business structure protects its owners from personal liability for business debts while allowing owners to retain considerable control.
What is a limited liability company, or LLC?
A production method using skilled labor and close attention to detail is known as this type of process.
What is an artisan process?
A coffee shop develops a unique ordering app and offers faster service than nearby competitors. The business is attempting to achieve this ability to outperform rivals.
What is competitive advantage?
A growing preference among consumers for locally grown food would primarily be classified as this type of PESTEL factor.
What is a social factor?
Before developing a solution, an entrepreneur interviews potential customers to determine whether several people actually experience the same problem. This process is called this.
What is validation?
This department recruits, trains, and evaluates employees.
What is human resources?
Businesses consider cost, quality, efficiency, convenience, and this factor when selecting suppliers.
What is risk?
Several farms sell nearly identical corn. Because customers see little difference among sellers, the farms primarily compete by producing efficiently and keeping price as low as possible. The Market Structure is?
What is Perfect Competition?
A government gives tax incentives to businesses that manufacture electric vehicles. For EV manufacturers, this political factor would most likely make the market more or less attractive?
What is more attractive?
A company's statement says, “We aspire to create a world in which every student has access to affordable career preparation.” This is most likely which type of statement?
What is a vision statement?
A company discovers that hiding a product defect would protect short-term profits but violate its commitment to transparency and potentially harm customers. The company is facing this type of situation.
What is an ethical dilemma?
A low-price furniture company replaces handcrafted production with automated assembly lines and purchases materials in very large quantities. Its supply-chain choices support which competitive strategy?
What is competing through lower prices/lower costs?
A pharmaceutical company owns a patent that prevents competitors from producing its new medication. The patent is an example of this competitive concept.
What is a barrier to entry?
A ski resort is profitable but experiences increasingly short winters that reduce the length of its operating season. Identify the relevant PESTEL category and explain the business impact.
What is an environmental factor that could reduce business viability by limiting the resort's ability to provide its service?
An entrepreneur believes busy students need healthier grab-and-go breakfasts. After interviewing students, she develops a basic prototype and gathers reactions to it. Name the two things she is validating at these different stages.
What are the customer problem/need/want and the proposed product solution?
A rapidly growing company decides to hire an outside firm to manage cybersecurity rather than create an internal cybersecurity department. According to the CED, give one business reason this decision could make sense.
What is increasing efficiency, reducing costs, or obtaining expertise the business lacks?
A premium chocolate company can buy cocoa from Supplier A at a very low price but with inconsistent quality, or Supplier B at a higher price with consistently superior quality. The company's competitive advantage depends on premium product quality. Which supplier should it choose, and why?
Who is Supplier B, because a high-quality competitive strategy should be supported by high-quality resources and production methods?