Entrepreneurship 6

  1. market
    a group of people or organizations that may be interested in buying a given product or service, has the resources to purchase it, and is permited by law and regulation to do so
  2. business definition questions
    • who will the business serve
    • what will the busiiness offer customers
    • how will the business provide the products or services it offers
  3. business definition
    • the offer
    • target market
    • production and delivery compatibility
  4. four basic types of businesses
    • manufacturing
    • wholesale
    • retail
    • service
  5. manufacturing
    making or producing a tangible product
  6. wholesale
    buying in bulk from manufacturers and selling smaller quantities to retailers
  7. retail
    selling individual items to consumers
  8. service
    sells an intangible prodict to businesses or consumers
  9. core values
    the fundemental ethcal and moral philosophy and beliefs that form the foundation of the organization and provide board guidance for all decision making
  10. mission statement
    concise comunication of your purpose, business definition, and values
  11. vision
    paints a broader perspective of what you want your organization to become in the future, not what it is at the moment
  12. culture
    core values of the organization in action, defines work envirionment
  13. competitive advantage
    strategy for beating the competition
  14. six factors of competitive advantage
    • quality
    • price
    • location
    • selection
    • service
    • speed/turnaround
  15. competitive advantage, a successful business needs:
    • to sell to a market that is large and growing
    • to sell to a market where the competition is able to make a profit
    • no barriers to entry
    • solve problems of competitions faults
    • competitive prce
  16. barriers to entry
    the factors that contribute to the ease or difficulty of a new competitor joining an established market
  17. to determine whether or not you have a competitive advantage
    • competitive offers
    • unique selling proposition
    • cost structure
  18. unique selling proposition
    the distinctive feature and benefit that sets a company apart from its competition
  19. competitive strategy
    the combination of the business definition with its competitive advantage, must be sustainable
  20. tactics
    the specific ways in which a business carries out it's strategy (the plan for out-performing the competition)
  21. gross profit
    total sales revenue minus total costs of goods sold
  22. economics of one unit sale
    the amount of gross profit that is earned on each unit of the product or service a business sells
  23. units of sale
    the basic unit of the product or service sold by the business
  24. average gross profit per customer
    average sale per customer - average cost of sale per customer
  25. cost of goods sold
    the costof selling one additional unit of a tangible item
  26. cost of services sold
    the cost of selling one additional unit of service; direct labour + cost of delivery of service
  27. total gross profit
    total revenue - total cost of goods sold
  28. average unit of sale
    total sales / number of customers
  29. currency
    money that can be exchanged internationally
  30. foreign exchange rate
    the relative value of one currency to another
Card Set
Entrepreneurship 6
Chapter 6