Business Strategy
A short statement of why an organization exists
Mission statement
A person or group of people who can affect or be affected by the business.
Stakeholder.
Unincorporated business form owned by single person/owner
Sole proprietorship
In entrepreneurship, the process whereby an innovation that creates a new market and value network and eventually disrupts an existing market and value network is termed ... (remember Schumpeter)
Creative Destruction (or Disruptive innovation).
Indicate the two broad classifications of stakeholders.
Internal and External.
Name the two most common types of partnership
General Partnership & Limited Partnership
Four components of value proposition development.
1. Target Customer
2. Problem
3. Solution
4. Differentiation
Stakeholder analysis requires evaluation of stakeholders on the degree of ... and ... (name the two criteria).
Power and Interest.
Legal status where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in the business.
Limited liability.
Name the 6 cultural dimensions suggested by Hofstede.
Power Distance
Individualism/Collectivism
Uncertainty avoidance
Masculinity/femininity
Time orientation (Long-term/short-term)
Indulgence/restraint.
According to the stakeholder matrix, the strategy to treat the stakeholders that have low interest but high power to affect the business should be ...
Keep satisfied.
Explain the concept of "separate legal personality".
Unlike the Sole Trader or Partner in a Partnership, registration of a business as a company, makes the company a legal person in its own right. It can buy and sell property, sue others or be sued itself.
List the 3 value creation approaches.
-Through positioning
-Through resources
-Through opportunity (market gap) logic
List at least 5 external stakeholders.
Government
Society (community)
Competitors
Customers
Suppliers
Creditors
List 3 advantages and 3 disadvantages of PLC (C corporation).
+ Perpetuity
+ Limited liability
+ Access to funds
- Hard to set up (expensive, formalities)
- Diluted ownership;
- Double taxation;
- Reporting requirements.