Refinements or extensions of existing strategies are often referred to as tactical actions

the creation of new value by an existing organization or new venture that involves the assumption of risk

the process of discovering and evaluating changes in the business environment, such as a new technology, sociocultural trends, or shifts in consumer demand, that can be exploited

private individuals who provide equity investments for seed capital during the early stages of a new venture 

companies organized to place their investors’ finds in lucrative business opportunities

funding a venture by pooling small investments from a large number of investors, often raised on the internet

Entrepreneurial leadership 

leadership appropriate for new ventures that requires courage, belief in ones convictions, and the energy to work hard even in difficult circumstances; and embody vision, dedication and drive, and commit to excellence. 

strategy that enables a skilled and dedicated entrepreneur, with a viable opportunity and access to sufficient resources, to successfully launch a new venture

a firms entry into an industry with a radical new product or highly innovative service that changes the way business is conducted

a firms entry into an dindustry with products or services that capitalize on proven markets successes and that usually has a strong marketing orientation

a firms entry into an industry by offering a product or service that is somewhat new and sufficiently different to create value for customers by capitalizing on current market trends

intense rivalry, involving actions and responses, among similar competitors vying for the same customers in a marketplace

acts that might provoke competitors to react, such as new maket entry, price cutting imitating successful products, and expanding production capacity

a firm’s awareness of its closest competitors and the kinds of competitive actions they might be planning

extent to which competitors are vying for the same customers in the same markets

extent to which rivals draw from the same types of strategic resources

major commitments of distinctive and specific resources to strategic initiatives

refinements or extensions of strategies usually involving minor resource commitments

degree of concentration of a firm’s business in a particular industry

a firm’s choice of not reacting to a rival’s new competitive action

a firm’s strategy of both cooperating and competing with rival firms

the creation of new value by an existing organization or new venture that involves the assumption of risk; new value can be created in start-up ventures, major corporations, family-owned businesses, non-profit organizations, and established institutions (291)

a privately held firm in which family members have some degree of control over the strategic direction of the firm and intend for the business to remain within the family (293)

exists when a company that already has a successful product or service contracts with another business to be a dealer by using the name, trademark, and business system in exchange for a fee (293)

home-based business (aka SOHO = Small Office/Home Office)

companies with 20 or fewer employees, including the self-employed, freelancers, telecommuters, or other independent professionals working from a home-based setting (293)

the process of discovering and evaluating changes in the business environment, such as a new technology, sociocultural trends, or shifts in consumer demand, that can be exploited (294)

4 qualities an opportunity must have to be viable 

1. Attractive (must be demand for it) 2. Achievable 3. Durable (attractive long enough to be successful) 4. Value creating (must be potentially profitable) (295)

4 kinds of entrepreneurial resources

1. Financial resources 2. Human capital 3. Social capital 4. Government resources (297)

a strategy that enables a skilled and dedicated entrepreneur, with a viable opportunity and access to sufficient resources, to successfully launch a new venture (303)

3 characteristics of entrepreneurial leadership

1. Vision 2. Dedication and drive 3. Commitment to excellence (303)

3 categories of new-entry strategies

1. Pioneering new entry 2. Imitative new entry 3. Adaptive new entry (304)

a firm's entry into an industry with a radical new product or highly innovative service that changes the way business is conducted (304)

a firm's entry into an industry with products or services that capitalize on proven market successes and that usually has a strong marketing orientation (305)

a firm's entry into an industry by offering a product or service that is somewhat new and sufficiently different to create value for customers by capitalizing on current market trends (306)

companies that are willing to venture into market spaces where there is little or no competition -- labeled "blue oceans" -- will outperform those firms that limit growth to incremental improvements in competitively crowded industries -- labeled "red oceans." (307)

1. overall cost leadership 2. differentiation 3. focus 4. combination strategies

intense rivalry, involving actions and responses, among similar competitors vying for the same customers in a marketplace

acts that might provoke competitors to react, such as new market entry, price cutting, imitating successful products, and expanding production capacity (313)

reasons for companies to launch new competitive actions

1. improve market position 2. capitalize on growing demand 3. expand production capacity 4. provide an innovative new solution 5. obtain first mover advantages (313)

a firm's awareness of its closest competitors and the kinds of competitive actions they might be planning (313)

two factors used to access whether companies are close competitors

1. market commonality
2. resource similarity (315)

the extent to which competitors are vying for the same customers in the same markets (315)

the extent to which rivals draw from the same types of strategic resources (315)

two types of competitive actions

1. strategic actions 2. tactical actions (319)

major commitments of distinctive and specific resources to strategic initiatives (ex: merging with another company, building a new production facility, etc.) (319)

refinements or extensions of strategies usually involving minor resource commitments (ex: cutting prices, improving gaps in service, etc.) (319)

3 factors affecting how competitors will respond

1. market dependence 2. competitor's resources 3. actor's reputation (320)

a firm's choice of not reacting to a rival's new competitive action (320)

Which of the following are characteristics necessary for successful entrepreneurial leadership?

Why is vision such an important element of entrepreneurial leadership?

Which of the following is typically not associated with entrepreneurship?

Is the process of identifying selecting and developing new venture?