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Mangement exam 2 chp 8

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mehehaji's version from 2017-10-11 00:21

Section

Question Answer
What is magic number?the posttax income the entrepreneur personally seeks from the business
What is industry?the general name for the line of product or service being sold or the firms in that line of business
What is imitative strategy?an overall strategic approach in which the entrepreneur does more or less what others are already doign
What is innovative strategy?an overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing
what is parallel competetion? an imitative business that competes locally with others in the same industry
what is incremental innovationan overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas
Why is the magic number important?allows an entrpreneur or business owner to understand the potential viability of the business
What is pure innovation?process of creating new products or services, which results in a previously unseen product or service
What is blue ocean strategya strategy based on creating a new product or service that has no competitors
what is scale? the size of the market whether you plan to aim for a mass market or a niche market
What is scope?defines the geographic range covered by the market, from local to global
what is a niche market a narrowly defined segment of the population that is likely to share interests or concerns, 25-34 year old woman, familes with twins
What is the small business strategy processgoals, customer & benefits, industry dynamics & analysis, strategy selection, post startup tatics
What is value proposition?small business owners unique selling points that customers can expect from your goods or services, including benefits that differntiate your offering from those of the competetion
What is competetive advantage?the particular way a firm implements customer benfits that keeps the firm ahead of other firms in the industry
What are value benfits?displays characteristics related to the nature of the product or service itself.
What are cost benefits?refers to the ways by which a firm can keep costs low for the customer these include scale and scope savings
What is a perceptual map?a graphic display that positions products, services, brands or companies according to their scores on important strategic dimensions
What is industry dynamics?changes in competitors, sales and profits in an industry over time
what is retrenchment?an organizational life cycle stage in which established firms must find new approaches to imporve the business and its chances for survival
What is an industry analysis?a research process that provides the entrepreneur with key information about the industry, such as its current situation and trends
what are you looking for in your indsutry analysis?a business that can help you meet the magic number you determined
What are the three classic strategies for business?differentiation, cost, focus
What are differentiation strategies?aimed at mass markets, situations in which everyone might buy your product or service
What are cost strategysaimed at mass markets in which a firm offers a combination of cost benefits that appeals to the customer
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