Business Environment & Entrepreneurship

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Questions and Answers

An entrepreneur is using SWOT analysis. What strategy reflects the most effective application of this tool?

  • Minimizing weaknesses to avoid external threats.
  • Using strengths to exploit business opportunities. (correct)
  • Ignoring external threats to focus on internal strengths.
  • Converting weaknesses into strengths to neutralize threats.

A new entrepreneur is determining the appropriate sequence for establishing a business venture. Which of the following sequences represents the correct order of steps?

  • Creation of entrepreneurial ideas, opening of an entrepreneurial venture, identification of entrepreneurial opportunities.
  • Creation of entrepreneurial ideas, identification of entrepreneurial opportunities, opening of an entrepreneurial venture. (correct)
  • Opening of an entrepreneurial venture, creation of entrepreneurial ideas, identification of entrepreneurial opportunities.
  • Identification of entrepreneurial opportunities, opening of an entrepreneurial venture, creation of entrepreneurial ideas.

Teejay's Water Refilling Station is a one-man business. Student Software Company is started by two partners sharing costs and profits equally. For larger entrepreneurial ventures formed by 7 people, what would the structure be?

  • Corporation
  • Limited Liability Company
  • Sole Proprietorship
  • Partnership (correct)

Jedi Pacioli opens a grocery store, while another entrepreneur opens a laundry shop. How are these ventures classified?

<p>The grocery store falls under Merchandising, while the laundry shop falls under the Service category. (B)</p> Signup and view all the answers

In selecting raw materials, which set of factors is most critical?

<p>Availability, credibility, and quality. (D)</p> Signup and view all the answers

When analyzing data to inform business strategy, how should sales volume be categorized?

<p>Quantitative (C)</p> Signup and view all the answers

A company is assessing its internal environment. Which tool is most appropriate for this purpose?

<p>SWOT Analysis (D)</p> Signup and view all the answers

What is the primary goal of the market segmentation stage?

<p>To identify buyers with common needs. (C)</p> Signup and view all the answers

In determining market position, which activity should be prioritized first?

<p>Deciding the market. (C)</p> Signup and view all the answers

What should entrepreneurs do when conducting exploratory research?

<p>Gather preliminary information to define problems or develop hypotheses. (D)</p> Signup and view all the answers

Flashcards

Environmental Scanning

Analyzing the business's future, threats, opportunities, and trends.

SWOT Model

A model using Strengths, Weaknesses, Opportunities, and Threats to analyze a business.

SWOT Key

Using strengths to take advantage of opportunities.

Physical Environment

The natural environment composed of natural elements inherent to the Earth.

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Selecting Raw Materials

Availability, credibility, and quality are essential.

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Sole Proprietorship

One person owns the business.

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Partnership

Two or more people share costs and profits.

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Intermittent Production

An intermittent production system is characterized by producing a variety of products based on design.

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4M's Goal

What is the goal of the 4Ms?

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Market Positioning

What is part of market positioning?

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Study Notes

  • Environmental scanning defines a business's path, identifies threats/opportunities, and highlights trends.
  • Effective environmental scanning tools: SWOT Model, Competitive Forces Matrix, and Forces Competition Model.
  • Cultural Forces, influenced by human interactions, shape people’s behavior, beliefs, and actions.
  • New government programs can represent business opportunities by opening markets and providing support.
  • SWOT analysis involves using strengths to exploit business opportunities.
  • The Physical Environment encompasses natural elements inherent to Earth.
  • The Industry Environment is where businesses immediately feel trends and changes.
  • New venture creation sequence: Creation of entrepreneurial ideas, Identification of opportunities, Opening of venture.
  • Raw materials selection depends on availability, credibility, and quality.
  • Teejay’s Water Refilling Station, a one-man business, operates as a Sole Proprietorship.
  • Student Software Company, started by two partners, is classified as a Partnership.
  • Larger ventures (5-15 people) are structured as a Corporation.
  • Jedi Pacioli opening a grocery store is Merchandising.
  • Service-based establishments belong to the Service category (laundry shops, clinics, law offices).
  • Intermittent production systems produce a variety of products based on design.
  • Manpower considerations should include educational qualifications and job experience.
  • Production method selection should consider manufacturing equipment, mode of production, and product.
  • The goal of the 4 M’s is to persuade customers to make referrals.
  • Machine represents manufacturing equipment.
  • Manpower requires prioritizing expertise and job-specific skills.
  • Raw materials selection must consider credibility, quality, and availability.
  • Sales volume is quantitative.
  • Graduation Promo represents Promotional Pricing.
  • SWOT Analysis assesses the internal environment.
  • A brand is a company’s valuable asset.
  • Market surveys provide insights into pricing, customer preferences, and shopping behaviors.
  • PESTEL Analysis is a tabular framework for tracking external trends.
  • BCG in BCG Analysis stands for Boston Consulting Group.
  • Input, Process, and Output are the three essentials in a production system.
  • Product pricing factors: availability of competing products, production costs, and product type.
  • Market Segmentation identifies buyers with common needs and divides the market into distinct segments.
  • Market Positioning determines a business's place in the industry; Concentrated Marketing is also niche marketing.
  • Common segmentation methods: Geographic, Psychological, and Behavioral.
  • Distinctive Advantage is key for brands, evidenced by taglines like “banayad sa kamay”.
  • Entrepreneurs must define their target customers.
  • Evaluating the advantages/benefits of every person is not market positioning.
  • Intangible Resources are assets without physical form.
  • Entrepreneurs must carefully assess their capabilities when evaluating market segments.
  • Market position order: decide the market, determine if the position is distinct, evaluate advantages, and review benefits.
  • Consumer Buying Behavior refers to how consumers react to events and forces influencing their decisions.
  • Social Factors, like relationships, influence consumer behavior.
  • Exploratory Research gathers preliminary information and develops hypotheses.
  • Sales volume is quantitative.
  • A Marketing Mix combines product, price, place, and promotion.
  • Buying decision process: recognize needs/wants, search for information, evaluate alternatives, make the decision, analyze satisfaction.
  • Branding reinforces a brand as one of a company’s most valuable assets.

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