ENTREP- EXAM 3RD QUARTER

Entrepreneurship

is a proactive process of developing a business venture to make a profit.

entrepreneur

is successful if the business that he or she envisioned has materialized into a thriving industry with regular costumers and financial gain

entrepreneurial Mindset

is defined as a way of thinking, reasoning, and behaving a perspective on seizing an opportunity, adopting a holistic approach, and building on leadership

entrepreneur

an individual who establishes a business to make profit, runs it even through the risks, and enjoys most of rewards.

 

entrepreneur

is usually described as an individual who establishes a business to make profit, runs it even through the risks, and enjoys most of rewards.

Self-reflection

is a process of introspection and self-analysis that helps entrepreneurs examine their thoughts

Reflection

is examining how you observe, think, feel, react, reason out, make assumptions, draw conclusions, evaluate outcomes, and act upon what you believe.

Selective Perception

- The tendency for individuals to pay attention to things in their environment that are only consistent with their own expectations or assumptions

Reflection skills

are essential for an entrepreneur to effectively discern what is going on around him or her and to ponder how he or she could better respond to various stimuli.

Experimentation

is trying out an approach or a solution and then learning from it. 

skill of experimentation

involves taking a concrete action to test an approach or several possible approaches. Experimentation is a learning-by-doing approach.

Creativity

is being open to new perspectives or other ways of looking at things that are better or of higher quality.

skill of creativity

is about unleashing your ideas, concepts, or approaches that have not been tried before. It allows you to innovate so as to differentiate your product or service.

Empathy

is the ability to put yourself in the shoes of another person to understand how that other person thinks and feels. Enabling you to better relate to that person.

Empathy skills

enable you to tailor your product or service offerings to the needs and wants of your customers.

skill of play

involves injecting some fun, excitement, and joy in what you are doing as you go through your tasks.

is about appreciating and developing a sense of fun and adventure as you pursue your goals.

Empathize

the starting point of your business venture should be human needs

Define

your chosen business should inspire you to identify and solve a problem

Ideate

involves generating and developing new ideas to address the needs of people

Prototype

involves creating a sample product or service offering that incorporated features and qualities desired by the target users or customers

Test

try out or sell out the sample product

Corporate Entrepreneurship

This type of entrepreneur-ship involves creating new products, ventures, or organizational renewal within large organizations.

Start-up Entrepreneurship

This type of entrepreneurship involves the creation or setting up of a new small business.

Start-up entrepreneur marshals

resources to seize a business opportunity to offer a product or a service for the purpose of generating profit (as a commercial enterprise) or generating both profit and creating a social impact (as a social enterprise)

Buying a Franchise

This form of entrepreneurship involves a franchise that minimizes some business risks for an entrepreneur. Franchising involves a plan of distribution where an individually owned business is run as a part of a large chain.

Franchise

– is a license purchased by an entrepreneur allowing one to trade under the name of that established business

Buying a Small Business

Buying an existing business is exactly what it sounds like. The buyer typically takes over full ownership of the business.

Social Entrepreneur

This type of entrepreneurship uses the business methods of a commercial enterprise to generate profit but it is more concerned in helping social cause or improving the welfare of disadvantage groups, such as the unemployed, farmers, fisherfolk, urban poor, and others.

Commercial Entrepreneurship

refers to income-generating  enterprises that are established mostly for the purpose of generating profits

Social Entrepreneurship

refers to income-generating enterprises that are established with more emphasis on social impact for the poor and other disadvantaged groups

Finding Approach

It involves scanning the environment for information to provide ideas for starting up a business. This approach assumes that business opportunities exist “outside” of the entrepreneur.

Sociocultural

Changes in social conditions such as educational needs, housing needs, food preferences, leisure, lifestyles.

Technological Advancements

Changes in economic conditions that directly affect the business climate such as labor costs, unemployment rates, interest rates, inflation rates, imports/exports.

Industry Trends

Changes in the growth or decline of specific industries belonging to manufacturing, services, and agriculture sectors.

Environmental or Ecological Factors

Risks related to natural disasters, health pandemic

Political Situation

Changes in government policies and regulatory standards that directly affect the business.

Competitor moves

Increase/decrease in number of competitors, tactics of competitors that impact the business.

Suppliers

Increase in the number of suppliers that affect production and inventory levels

Increase of Substitute Products

Entry/exit of substitute products that affect competition.

STRENGTHS

The first component in the SWOT analysis is Strengths, namely the advantages or strengths of a company that is owned, which can provide benefits.

OPPORTUNITIES

Opportunities are opportunities that arise outside your company or project and can be used to make a difference to your ability to compete.

WEAKNESSES

Weakness, which means the company's weakness, can be compared with competitors, can also be a weakness that is considered currently internally.

THREATS

are negative factors from the environment that provide obstacles to the development or running of an organization and program.

Building Approach

It involves creating a business opportunity that does not exist in the environment. The business idea originates or builds on the entrepreneur’s creativity, talents, skills, prior knowledge and experience, personal network, and internal resources.

Opportunity screening

is the process of assessing potential business opportunities and selecting the best opportunity to invest in.

Viability

means that the business can start, grow, and survive. It factors in the ff

Feasibility

of the business means that it is achievable, practical, or workable given the resources and time you have to implement it.

marketing Plan

is a plan of the strategies that you will use to know your customers and how to attract them to buy your product or service.

Unique Selling Proposition USP

refers to a statement that describes the most compelling attribute of your product or service that sets it apart from your competitors.

UNIQUE SELLING PROPOSITION (USP)

• Refers to HOW YOU WILL SELL the product or service to your customers.

• After you create your VP, you have to figure out how to advertise or promote certain unique features of the product or service that you’re trying to sell.

Value Proposition

 is a definitive statement that clearly identifies the benefits or value that a product or service can offer to the customers.

VALUE PROPOSITION (VP)

•  states WHY A CUSTOMER SHOULD BUY a certain product or service.

•  The entrepreneur should bear in mind that a value proposition has to be direct in addressing the problems of the customers, should have quantifiable benefits, and should differentiate itself from the competitors.

Market segmentation

is the process of dividing the market into small homogenous groups.

Direct Competitors

are rival firms located near you and offer the same or very similar products/services as yours.

Indirect Competitors

are competitors who offer a group of products/service, that are substitutes to your product/service.

marketing mix

is an integrated approach to strategies in offering and delivering the product/service to your target customers

Marketing Mix

• The 7Ps are employed until the entrepreneur finds the right combination that will most effectively serve the customer’s needs and wants and at the same time achieve the profitability objective.

• Entrepreneurs must use the 7Ps model to do the following: conduct a situation analysis, set objectives; conduct a SWOT analysis 

Product (or Services)

This element of the marketing mix indicates a description of the product or service that you are selling. Must decide on what makes your product or service distinct from that of your competitor.

Place

This element of the marketing mix pertains to the distribution strategy of your business. Refers to the where, how, and when you are going to deliver the product or service to target customers based on their needs and preference.

Price

This pertains on decisions on the pricin strategy for your product or services.

• cost

• markups and margins

• profit margin

• competitors

Net Profit Margin = Net Income / Total Revenuex 100

Cost Plus Pricing

– also called mark-up. Adding a specific mark-up to the cost to determine the selling price

Competitive Pricing

– Offering prices similar to your competitors. Also called benchmark pricing.

Bundling

- Offering one or two products at a reduced price.

Price Ceiling

– is the most a customer will pay for your product or service. This is the customer’s perception of what you have to offer, and often, this amount has been set by the competition.

Price Floor

– pertains to your assessment of how much it costs you to produce your product or service.

Promotion

This element of the marketing mix enables the entrepreneur to inform potential consumers about the product’s availability, or to educate the consumer about the product.

Communication Program

in marketing are channels and tools a company uses to communicate the necessary message to the target group.

communication program.

As an entrepreneur, you have to create awareness about the product or service by establishing an effective

People

This element of the marketing mix focuses on the role of human resources in propelling the growth of the business.

Customer Relationship Management (CRM)

 pertains to a business philosophy and a set of strategies, programs, and systems that focuses on identifying and building customer loyalty, especially with the most valued customers.

Frontliners

– are those staff members whose job involves directly interacting with customers.

Contract

– is an agreement between two or more people, which creates an obligation to do or not to do something in exchange for money or some other consideration.

Packaging

This element of the marketing mix refers to how your product or service is presented to your customers in terms of visual appeal.

Positioning

This marketing concept gives consideration to how your product or service offering is positioned in the minds of your target customers.

Positioning Statement

– a brief paragraph to describe your target market and what their specific needs or goals are. It shows that you clearly know your target market and customers.

Positioning

The five main strategies upon which businesses can base their positioning are the ff:

1. Positioning based on product characteristics

2. Positioning based on price

3. Positioning based on quality or luxury

4. Positioning based on product use or application

5. Positioning based on competition

positioning perceptual map

enables the entrepreneur to compare the competitiveness of his or her own business with competitors in the same market arena, such as in terms of quality and price.

Process improvement

is an effort taken by entrepreneurs to make core business processes better, leading to improved work output.

Eliminate waste

– The Lean Principles call for teams to look for eight kinds of waste: defects, excess processing, overproduction, non-utilized talent, sitting inventory, products waiting for the next step, unnecessary moving of products, and inefficient movement of people.

Reduce cost

– Looking for waste in the form of duplicate or unnecessary tasks. Looking for opportunities to better allocate resources or automate manual tasks.

Improve communication and collaboration

– This approaches focuses on you, as the entrepreneur and leader, and your relationships with people.

Branding

is the name or symbol associated with the product or service offering that communicates messages to target customers.

Trademarks

are the registered brand’s names, and they come in many forms: distinctive word, phrase, logo, internet domain name, graphic symbol, slogan, or other device to identify the source of a product and distinguish the manufacturer’s or merchant’s product from others.