Entrepreneurship and Design Thinking Lecture Notes

A comprehensive set of 75 vocabulary flashcards covering the core concepts of entrepreneurship, design thinking, business planning, and market segmentation based on the provided transcript.

Entrepreneur

An individual who establishes a business to make a profit and runs it despite the possible risks while innovating.

Entrepreneurial Mindset

A way of thinking, reasoning, and having a perspective on seizing an opportunity.

Skill of Reflection

Allows individuals to constantly learn from experiences, analyze mistakes, and improve in the future.

Skill of Experimentation

Taking concrete action to test an approach and gain knowledge from it; a learning-by-doing approach.

Skill of Creativity

Being open to new perspectives to unleash ideas and concepts that may be new to the market.

Skill of Empathy

The ability to understand the actual conditions of the target market by gaining knowledge from their needs and wants.

Skill of Play

Allows entrepreneurs to explore ways to promote a culture of happiness and well-being, helping to calm the mind and maintain focus.

Empathize

The starting point of a business venture that should be based on human needs.

Define

Identifying a specific need for a particular group, often called a design challenge.

Ideate

Generating and developing new ideas to address the identified needs of people.

Prototype

The creation of a sample product or service.

Test

The phase involving the actual testing of the product or service.

Commercial Entrepreneurship

Income-generating enterprises established mostly for the purpose of generating profit.

Social Entrepreneurship

Enterprises that prioritize creating social value and addressing social problems.

Entrepreneurial Process

The overall process of finding, evaluating, and developing business opportunities.

Phase 1 of Entrepreneurial Process

Identify and evaluate the opportunity.

Phase 2 of Entrepreneurial Process

Develop a business plan.

Phase 3 of Entrepreneurial Process

Determine resources required.

Phase 4 of Entrepreneurial Process

Manage and implement the enterprise.

Business Plan

A detailed and integrated written document that acts as a roadmap for a new business, describing various activities in opening and operating the venture.

Incorporators

The people who originally formed the corporation.

Vision

Describes what the organization wants to become and how the future will look if the mission is achieved.

Mission

Explains what the organization does, for whom, and the benefits it provides.

Goals

The long-term purpose that the organization strives to achieve.

Objectives

The strategies or implementation steps to attain goals, which must be SMART (specific, measurable, attainable, relevant, time-oriented).

Business Model

Defines the perspective of the business in terms of production, operation, and financial activities to achieve the VMGO.

Physical Environment

The first layer of the environment, including physical resources, climate, and wildlife.

Social Forces

Elements in society resulting from human interactions that influence thoughts, behavior, and beliefs.

Political Forces

Elements comprising political parties and systems that influence the political stability of a country.

Cultural Forces

The integrated characteristics of a group of people or an ethnic group in a particular society.

Economic Forces

Factors caused by changes in the Philippine economy that have direct or indirect effects on the entrepreneurial venture.

Legal Forces

Elements and bodies involved in the legislation and interpretation of laws and ordinances affecting the business.

Technological Forces

Trends and developments in computer and information technology that impact business.

Industry Environment

The external environment layer where trends and changes are immediately felt by the business, including government, creditors, and customers.

Creditors

Banks and financial institutions engaged in lending money to the borrower for a fee or interest.

Internal Environment

The environment within the business comprising resources, structure, culture, and competencies.

Business Resources

Tangible or non-tangible assets owned or controlled by the business.

Business Structure

The formal organizational arrangement in terms of hierarchy, communication flow, and relationship of functional areas.

Business Culture

A collection of values, beliefs, and principles shared by employees, founders, and stakeholders.

Distinctive Business Competency

The harmonious coordination of competency in business resources, structure, and culture.

Environmental Scanning

The gathering, critical evaluation, and utilization of information on events and environmental relationships.

PESTEL Analysis

A tabular framework of trends and developments in external environmental forces viewed from the perspective of the business.

Environmental Forces Matrix

Classifies environmental forces into their frequency of occurrence and level of effect on the business.

Forces of Competition Model

A model by Michael Porter including potential new entrants, buyers, suppliers, rivalry, and substitute products.

Strengths

Strong attributes of a business that provide an advantage in exploiting opportunities.

Weaknesses

Poor attributes or deficiencies that give disadvantages to the business.

Opportunities

Business situations in the form of products or services that can be exploited for profit and growth.

Threats

Possible external events in the environment that may provide harm to the business.

Market Identification

A strategic marketing process intended to define the specific customer of the product.

Geographical Segmentation

Dividing the market into geographical units.

Demographic Segmentation

Dividing the market based on age, sex, income, religion, and other similar factors.

Psychographic Segmentation

Dividing the market based on personality traits, lifestyle, and values.

Behavioral Segmentation

Dividing the market based on occasion, brand loyalty, usage rate, or user status.

Target Market

A specific set of consumers with common characteristics and needs that a company chooses to serve.

Individual/1-on-1 Marketing

A strategy where products are tailored to the needs of an individual consumer.

Differentiation Marketing

A multi-segment strategy where several segments are covered with products designed for specific segment needs.

Concentrated Marketing

A niche strategy where only one or a few segments are covered with a product designed for the majority in that segment.

Mass Marketing

An undifferentiated strategy where products are mass-produced for the whole market.

Positioning

Placing a product's distinct characteristics in the consumer’s mind relative to its competitors.

Unique Selling Proposition (USP)

What sets a product apart from others and provides a reason for consumers to buy it over competitors.

Product Differentiation

Highlighting unique features, benefits, performance, style, or design to set a product apart.

Service Differentiation

Differentiating through business offerings like warranties.

Channel Differentiation

Choosing different ways to make the product available to the market.

Operational Plans

A major section of the business plan outlining activities and explaining the who, what, when, and where of product delivery.

Procurement

The process of sourcing the supplies and materials required for the business.

Production Framework

The system of turning inputs into outputs through the production process.

4Ms of Operation

Machine, Man, Method, and Material.

Convenience Products

Consumer products that appeal to a large market and are bought frequently.

Shopping Products

Consumer products purchased and consumed less frequently, such as gadgets.

Specialty Products

High-priced products such as luxury cars and designer bags.

Unsought Products

Products consumers seldom look for, purchased for extraordinary reasons like fear or adversity (e.g., insurance).

Core Product

The basic benefit or need that the product fulfills for the buyer.

Formal/Actual Product

The physical or perceived characteristics including quality, features, styling, branding, and packaging.

Augmented Product

Additional offers that come with the product, such as after-sales service and installation.

Product Style

The aspect of product development that refers primarily to the appearance of the product.