Exam 1 Study Guide
Exam 1 Study Guide MAN 337
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This 6 page Study Guide was uploaded by Dylan Wood on Friday February 19, 2016. The Study Guide belongs to MAN 337 at University of Texas at Dallas taught by Dr. John Butler in Winter 2016. Since its upload, it has received 48 views. For similar materials see Entrepreneurship and Innovation in Business at University of Texas at Dallas.
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Date Created: 02/19/16
Man 337 Exam 1 Review 4 questions, 25 pts a piece, bring Blue Book What is a quicklook? to Explain: o if a technology has potential to make $ o where the markets and applications are in which it could make $$ o why someone may pay $$ money for it o how it could get to the point where it is making $$ cxPurpose of a quicklook: o You can get early feedback into the loops: Who is interested in paying $$ for the technology how much value do users and buyers place on technology what do they need and expect the technology to do what form do they expect the technology to be in o So you can mobilize stakeholders the inventor b/c support is crucial resources more technology across bridges partners get the technology to the market market pay $$ for the technology o Tool’s you will use info from the inventor inventor’s suggestion for: primary and secondary research as well as applications/markets for the technology From these tools you will produce: interview reports, secondary research references, and quicklook reports o Steps of the Quicklook Method Identify and define the real elements of innovation in the technology Develop an explanation of the potential benefits the technology can provide Determine how far along in development the technology is Determine the ownership of the IP and how to protect the IP Examine competitors and competing technologies Identify and explore potential commercial markets Find the real challenges to commercializing the technology Find the real opportunities the technology has in the market place Draw out the lessons and make recommendations Schumpeter or Keynes Classical Economist o Innovation outside of economic system o innovation is caused by events such as earthquakes, climate, or war o things that influence the economy, but are not part of economics o had problems with profit as a moral question Marxism: Marx believed profit was stealing from the workers o were basic moral philosophers Keynes o Maintains equilibrium theory Equilibrium theory is made up of perfect markets, perfect competition, and rationality o Sound economic theory cannot be based on one event controlling the economy ex. government spending, interest rates, tax cuts o Monetary events determine demand and with it, economic conditions ex. government deficits, interest rates, credit volume, and volume of money in circulation Assumes that turnover velocity of money is constant and cannot be changed over the short run by individuals or firms (this is why he focuses on the long term) o Macroeconomy is everything o Individuals/business have little power to direct the economy o Supply as control and demand drives economic phenomena, capital formation, productivity & employment o No room for entrepreneurship and innovation o Based on three aspects: Rationality, perfect markets, and perfect competition Schumpeter o Presents keynesian answers as invalid, or only valid with certain ranges o Microeconomy of the individual has changed velocity of money overnight (this is short term) o Healthy economy = dynamic disequilibrium o No such thing as equilibrium, the economy is forever changing o Schumpter’s model is more realistic than the Keynesian/classical model o biological vs. mechanistic (keynes view) o Central problem of economies is not being in equilibrium, but rather undergoing structural change o Creative Destruction Move resources and capital from old outdated enterprises to new enterprises so the econ is in constant flux Innovator is the true subject of economics The more an economy advances the more capital formation is required Morality and Profit o Classical economists present profit to be morally equivalent to a bribe and cannot be morally justified o Schumpters theory goes beyond classical economics profit is not something stolen from another profit becomes the only source of jobs for workers and labor income Profit is actually the cost of staying in business → the cost of surviving creative destruction Believes profit is a moral imperative o In equilibrium theory, there is no place for profit Schumpeter’s argument o money and credit become the lever of control o monetary factors determine economic activity and allocation of resources ex. deficits, credit, taxes Business Model Generation A business model creates, delivers, and captures value The nine basic building blocks show how a company makes money The building blocks cover four main business areas o Customers o Offer o Infrastructure o Financial Viability Nine Building Blocks o Customer Segments o Value Propositions o Channels o Customer Relations o Revenue Streams o Key Resources o Key Activities o Key Partnerships o Cost Structure Entrepreneurship The Entrepreneur and The Challenge Entrepreneurship wealth creation and job creation Entrepreneur creates a new organization that makes a positive change Successful entrepreneurs will create a service or product that satisfies the everyday needs of individuals An Opportunity is a favorable juncture of circumstances with a good chance for success or progress job of the entrepreneur to locate new ideas and put them into action Entrepreneurship may be described as the identification and exploitation of previously unexploited opportunities can consist of innovation or the introduction of creative change Entrepreneurial Activity based on Innovation and Technology Capitalism and enterprise are about having a dynamic economy and innovation Three factors comprise entrepreneurial action 1. a person or a group who is responsible for the enterprise 2. the purposeful enterprise 3. initiation and growth of the enterprise Four Types of Entrepreneurship 1. Incremental Venture The founding and management of a routine business exhibiting modest novelty 2. Innovative Venture The initiation and operation of a business based on an innovation 3. Imitative venture The identification and imitation of a novel business or venture 4. Rentseeking venture The founding of a business that utilizes standards, regulations and laws to share in some of the values of an existing enterprise IF YOU MAKE SOME MONEY PEOPLE WILL SUE YOU Four steps to starting a business 1. The founding team or individual has the necessary skills or acquires them 2. The team identifies the opportunity that attracts them and matches their skills. They create a solution for the opportunity 3. They acquire ( or possess) the financial and physical resources necessary to launch the business by location investors and partners 4. They complete an arrangement or contract with their partners, investors, and within the founder team to launch the business and share the ownership and wealth creation Five Characteristics of an attractive opportunity 1. Timely a current need or problem 2. Solvable a problem that can be solved in the near future with accessible resources 3. Important the customer will pay for the solution and allow the enterprise to profit 4. Context a favorable regulatory and industry situation 5. Profitable Eight Elements of Entrepreneurship 1. Initiate and operate a purposeful enterprise 2. Operate within the context and industrial environment at the time of initiation 3. Identify and screen timely opportunities 4. Ability to accumulate and manage knowledge and technology 5. Ability to mobilize resourcesfinancial,physical, and human 6. Ability to assess and mitigate uncertainty and risk associated with the initiation of the enterprise 7. Entrepreneurial Capital and the Value of a Venture One measure of the quality of entrepreneurial capability is entrepreneurial capital (EC) , which is a combination of entrepreneurial competence and entrepreneurial commitment: Entrepreneurial Capital=entrepreneurial competence Entrepreneurial Terror Butler Rules Summary There is no way to prepare for entrepreneurial terror no college course or training will prepare you for this special hell. But you aren’t alone, and the rewards are worth it. The Third Market: Engines of America Summary Entrepreneurs have created a new marketing entity: The Third Marketnot “large” not “small”, but most emphatically ignored by Corporate American and government. But that will change int he decade ahead. Lesson The big companies that make up Corporate America must make sure their marketing plans include the Third market, the entrepreneurial companies that give the American economy its life. The Secret Revolt Summary Research tells us that the Third Market the Entrepreneurial Marketbuys almost half of all business to businesses products and services; creates almost all the new jobs and is different in mindset from “small” and “large”. Size is immaterial . Lesson For any company selling a product of service, the Third Market is an enormous untapped and undiscovered marketing opportunity. Are Entrepreneurs Born or Made? Summary There is overwhelming evidence that entrepreneurs are born, not made; that they are genetically empowered with hunter genes handed down through countless generations. The implications are mindboggling. Just think what it may mean for corporate management to know in advance who may have a natural propensity for entrepreneurship. However, it’s disquieting to know that children may be diagnosed as being impaired with disorder, and medicated just because they inherited hunter genes, and must function in a world of farmers. Lesson Entrepreneurs are bornnot madebut this for freedom is the spark that ignites. Are you a Buccaneer or a Farmer? Summary There are two kinds of entrepreneurs buccaneers and farmers. It’s not important which you are, but it’s absolutely necessary that you know which you are. The transition from buccaneer to farmer is a ydifcitul journey few entrepreneurs make it. Lesson It’s better to be happy buccaneer than a miserable farmer. Entrepreneurial Transition Summary There are four distinct and different phases in a entrepreneurial life. First: The Genius Second: Benevolant Dictator Third: Disassociated Director Fourth: Visionary Leader It’s absolutely necessary that entrepreneurs know where they are in order to be prepared for the next phase. But beware of phase three most entrepreneurs don’t make it through the potential disastrous stage. The Decision Making Process Summary The process of making decisions must change as an entrepreneur goes through the four phases. If you don't’ chang e the process you are doomed. Lesson As you grown, adjust the process with which you make decisions.
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