Small business management chapter 3

Opportunity recognition
Identification of potential new products or services that may lead to promising businesses
Entrepreneurial alertness
Readiness to act on existing but unnoticed business opportunities
Start ups
New business ventures created from scratch
Newmarket ideas
Start of ideas centered around providing customers with an existing product or service not available in their market
New technology ideas
Start up ideas involving you are relatively new technology centered around providing customers with a new product or service
Pivot
To refocus or re-create a start up if the initial concept turns out to be flawed
New benefit ideas
Start up ideas centered around providing customers with new or improved products or services or better ways of performing old functions
Serendipity
A facility for making desirable discoveries by accident
General environment
The broad environment encompassing factors that influence most businesses in a society
Industry environment
The environment that includes factors that directly impact a given firm and all its competitors
Competitive environment
The environment that focuses on the strength position in likely moves and countermoves of competitors in an industry
Resources
The basic inputs that an entrepreneur can use to start and or operate a business
Tangible resources
Those organizational resources that are visible and easy to measure
Intangible resources
Those organizational resources that are invisible and difficult to assess
Capabilities
A company routines and processes that coordinate the use of it’s productive assets in order to achieve desired outcomes
Core compentecies
Those capabilities that distinguish a firm competitively and reflect its focus and personality
Competitive advantage
A benefit that exists when a firm has a product or service that is seen by its target market as better than that of the competitors
SWOT Analysis
And assessment that provides a concise overview of a firms to Strategic situation
Strategy
A plan of action that coordinates the resources and commitments of an Organization to achieve superior performance
Cost-based strategy
A plan of action that requires a firm to hold down its cost so that it can compete by charging lower prices and still make a profit
Differentiation-based strategy
A plan of action designed to provide a product or service with unique attributes that are valued by consumers
Focus strategy
A plan of action that isolates in enterprise from competitors and other market forces by targeting a restricted market segment i
Paradox of attraction
The self-contradictory idea that an attractive market opportunity is likely to drop multiple competitors there by diminishing it’s attractiveness
Feasibility analysis
A preliminary assessment of a business idea that gauges whether the venture inVision is likely to succeed
Fatal flaw
A circumstance or development that alone could render a new business unsuccessful