Terminology
The process of gathering information about customer needs and preferences to guide business decisions
(2 words).
Market Research
Any physical or virtual space where buyers and sellers exchange products or services.
Market.
Drive innovation by identifying opportunities, taking calculated risks, and devloping solutions that solve problems.
Entrepreneurs.
Which PESTEL factor?
The government raises corporate tax rates for large businesses.
Political.
(Will also technically accept legal as written).
Mission or Vision statement?
Our goal is to provide affordable, high-quality financial education that helps students build budgeting, saving, and investing skills for lifelong success.
Mission.
Occurs when businesses provide a product that responds to customers' problems, needs, and wants (2 words).
Value Creation
Entrepreneurs often look for THIS (2 words):
an unmet consumer need that is not adequately being addressed by existing products or services.
Market Gap.
These TWO things create a statement, establishing core values, providing the business purpose and direction in both the short-term and long-term.
Mission Statement & Vision Statement.
Which PESTEL factor?
Changing consumer preferences increases the demand for plant-based foods.
Social.
Ethical, Unethical, or Illegal?
A coworker regularly uses the company printer to print flyers advertising for her side business.
Unethical.
Market structure without competition, in which only a single entity or company has total control over the supply of a specific product or service.
Monopoly.
The ability to outperform rivals in the same market, leading to increase market share and profit (two words).
Competitive Advantage.
What is the difference between value capture and value creation?
Value creation focuses on giving customers benefits while value capture focuses on money / profits.
Which PESTEL factor?
A new change to the minimum wage law increases labor costs for employers.
Legal.
Name two external stakeholders?
community, customers, suppliers, investors, or the government (or gov't agency).
Occurs when businesses are able to charge customers a higher price than it costs to produce. Focuses on monetization, drives company revenue (2 words).
Value Capture.
The purpose of THIS is to test a business idea with the fewest features needed in order to gather customer feedback before investing even more time and money.
MVP - Minimum Viable Product
What are THREE types of products?
1) Identical products
2) Differentiated products
3) Unique products
Which PESTEL factor?
Improvements in battery technology lower the cost of electric vehicles.
Technological.
What is the difference between a mission and vision statement?
Vision focuses on FUTURE and what business HOPE to achieve.
Mission focuses on TODAY and explains what the business DOES.
1) Sole Proprietorship
2) Partnership
3) LLC - Limited Liability Company
4) Corporation
5) Non-profit.
What are THREE key characteristics of a business?
1) produces a good or service.
2) creates value for customers.
3) captures value for profit.
What are the FIVE main barriers to entry?
1) Intellectual Property Rights
2) Regulations (on rivals)
3) Limited Access to Resources
4) Startup Costs
5) Low Prices / Undercutting by Competition
Which PESTEL factor?
Rising interest rates make it more expensive for firms to borrow money.
Economic.
What are THREE ways to encourage ethical behavior among your employees?
2) Employee Training
3) Accountability
4) Leadership
5) Incentives that Reward Ethical Behavior