Entrepreneurship test 2 study guide Chapter 5 Feasibility analysis 1 Essay Pre feasibility analysis a Understand your capabilities b Understand competition c Understand customer needs and wants d Understand your bargaining power in value chain 2 More complex company more detailed feasibility analysis 3 Essay Know all 3 Preparing for feasibility analysis Is there a customer and sufficient market a b Do the capital requirements vs sales and expense estimates make sense c Can you find a founding team to effectively execute the concept 4 Figure 5 1 Know graphic well Answers to these questions should determine if we move forward with business Ch 5 slide 6 5 Dif of F A and business plan a Feasibility Analysis about testing a business concept b Shows execution of business concept 6 Short answer S A Dif between feature and benefit feature unique aspect of product a b benefit how feature affects customers life 7 Multiple Choice M C a Feasibility video was about a shipping company in green bay Ch 6 1 SWOT Analysis a Strength b Weakness c Opportunity d Threats external 2 Decrease margin in industry need increase turnover 3 4 M C Industry stages Increase margin in industry can have decreased turnover a Birth take product and set tone for the industry be careful bc product has to be good b Growth and adaptation many enter c Differentiation and competition still growing peaking d Shakeout competition see profits decline and get out e Maturity and decline better have new technology 5 NAICS CODE Industry classes 6 3 types of competition On test a Direct b c Emerging potential Indirect 7 PEST ANALYSIS a Political b Economic c Sociocultural d Technological 8 S A 3 goals in researching target market Identify first customer a b Estimate potential demand from that customer c 9 Dif of primary vs secondary Identify subsequent customer segments and needs to grow the company a Primary firsthand more accurate expensive and time consuming b Secondary other people do it Ch 7 1 Product Development Cycle MC a Opportunity recognition b Technical feasibility analysis i Does it already exist ii Does it have potential to draw revenue iii Can we produce it without high cost iv How much time will it take to produce it c Design and development of platform i Platform core product or your technology d Prototype building and field testing i Does not always represent final product e Initial market tests i Very expensive and dangerous 1 Look stupid idea stolen f Product market introduction and ramp up 2 3 advantages of outsourcing on test a Reduce cost b Reduce risk c Reduce production time 3 Disadvantages of outsourcing a Big fish cut in front of your orders b Increased time to market c Decrease control of quality d Decrease control of costs 4 1 reason patents denied obviousness 5 Patents only good to national borders Ch 8 1 S A Why is it important to have a team instead of individual a Different strengths b More assets 2 Dif bw angel and venture capitalist a Angel 1 person less than 1 million b Venture capitalist investing for a group of people 500 000 10 million 3 Types of independent contractors a Consultants b Professional employer organizations c Manufacturing support d Sales support e Government agencies Ch 9 Mostly M C 1 Cash flow statement a Month by month b Do you have enough cash on hand every month 2 Pricing strategies a Premium pricing expensive b Price skimming lower price when competition enters c Demand based pricing looking at customers tolerance what are they willing to pay d Captive product pricing low price for core products disposables expensive e Psychological pricing 499 Product Bundle Pricing f g Geographical pricing Gasoline prices in NYC vs here NOTE NEED TO KNOW CASE STUDIES IN BOOK
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