Strategic management involves setting objectives, analyzing the competitive environment . d. Integrative. entrepreneurship process. IV. Some of the most important reasons are: 1. Before entering the into market, entrepreneurs should make a strategy. Entrepreneurs Strategy involves the exploration of ideas, set of decisions, action, and reaction for exploitation of the opportunity; which contributes to minimize costs and maximize the benefits. The sources of resource bundle are the collective mind and experience of the entrepreneurs, managers, and employees. Over the next few years, this non-co-operation strategy turned out to be a major weakness for Apple. \text{Payment of cash dividends } & \text{(500) }\\ Bad Taste After Tooth Extraction Normal, Drawbacks: a lack of strong strategic commitment, difficulties in building market share, Voluntary agreements of cooperation between firms Efficient utilization of resources in the production process helps to gain competitive advantage. In which of the following industry structures is the entry of new firms the most difficult? How Is Strategy Formulation Process Referred Sometimes? The sales objective was to sell 10 million phones in the first year: this needed to be compared with the annual mobile sales of the global market leader, Nokia, of around 350 million handsets. B. is best described as the benefits the business chooses to give to customers through its product/service. Most of the entrepreneur finds easy to imitate the practice of successful business rather than going through the long and expensive process of systematic research. However, Apple had achieved what some commentators regarded as a significant technical breakthrough: the touch screen. Without a business idea, you cant start a business, and without a business, you cannot be termed an entrepreneur. People in society live within the umbrella of a certain environment. c. Economies of scale. It remains exclusive to Apple and means that the company has a specialist market where it has real competitive advantage and can charge higher prices. Also, it begins to see the feasibility of ideas, the ability . 3: Positioning the relationship, Firms engaging the same rivals in multiple markets, Certain assets are rare thus generate advantage, Extent to which competitor has strategic endowments compared to others, Collusive price setting, predatory pricing, and extraterritoriality, Classical frontal attack with brute force, Attack on a focal area important to competitor but not in the attackers target area, Withdrawal from a low-value market to attract rival firms to divert resources into that market so that the original firm can capture a high value market, Leverages local assets in areas MNEs are weak, Leverages homegrown competencies abroad by expanding into similar merkets, Cooperates through joint ventures with MNEs and/or sells-off to MNEs. She was an integral contributor to a formative stage of our company and a true comrade on the front . Process is a way of giving life to data by taking snapshots of action/interaction and linking them to form a sequence or series. It will steal some of the thunder from the iPhone and tie users into the Nokia service. Readers will read this comment with some amazement given the subsequent history of Nokias smart phones that is described in Case 9.2. b) Broad Scope Strategy: It offers the range of products at different market segments considering the portfolio approach for dealing with the uncertainties. In any situation, entrepreneurs should focus on creating reputation, build customer loyalty, creating market demand, through its ethical activities. All during this period, Apples strategic difficulty was that other powerful companies had also recognized the importance of innovation and flexibility in the response to the new markets that Apple itself had developed. Middle management c. Top management d. All of the above IV. Executing a strategic plan. Weak market demand. Innovation. Question5: What involves the strategic management function? The identification and exploitation of previously unexplored opportunities, Set of individuals who discover, evaluate, and exploit opportunities, 95% of all firms 15 lakhs, of which half would be saved if these test cities were merely a part of a national program, and that the testing program would delay the national program for six months. This case explores this profitable but risky strategy. One of the most important qualities however, is your ability to make good decisions. The following are a few characteristics required to be a successful entrepreneur. Strategic management. Quizlet. Indicates how likely they are to have similar competitive actions. \text{Net cash provided by operating activities } & \text{2,200}\\ The inspiration for this It involves various steps, procedures and formalities. Opportunity for relationships with key stakeholders, Benefit from first mover investments, experience, and inflexibility, Benefit from a strategic commitment Covers all aspects of the planning process, from the point of view of both the prospective entrepreneur and the potential investor. The Entrepreneurship Process can be expressed as a set of procedures and methodologies, followed by entrepreneurs to establish a new business or venture. \text{Collections from customers } & \text{\$ 61,000 }\\ Formulating a strategic plan. The comprehensive model of entrepreneurship involves which of the following perspectives? STRATEGIC ENTREPRENEURSHIP: A CASE IN THE BRAZILIAN. Entrepreneurship generally means offering a new product, applying a new technique or technology, opening a new market, or developing a new form of His main research interests Instead, the strategy formation in entrepreneurial SMEs is a combination of systematic planning and improvisation, a combination of proactivity and reactivity. Sometimes it may create the situation of error of commission and omission. 5.1. Q20. It is another strategy on minimizing the risk associated with the loss of new entry. searching actively for innovative ways the organization can improve on what it is already . Feel free to send suggestions. Developing strategies is the fourth step in the VMOSA (Vision, Mission, Objectives, Strategies, and Action Plans) process outlined at the beginning of this chapter. To understand any company's strategy, it is helpful to begin by looking back at its roots. 0 ratings 0% found this document useful (0 votes) IIBM DMS CASE STUDY SOLUTIONS PAPERS - What specific entrepreneurial aspects include the strategy formation process www.answersheets.in info.answersheets@gmail.com +91 95030-94040 Strategic Management Multiple choice: I. Horizontal integration is concerned with a) Production b) Quality c) Product planning d) All of the above II. The assessment new entry attractiveness is affected by prior knowledge and information search, window opportunity and comfort with decision making. Quizlet Inc. Retrieved from Quizlet: https://quizlet.com/51323401/business-chapters-1-4-flash-cards/ Parmar, V. (n.d.). iii. Entrepreneurs may face difficulty in protecting the product uniqueness. Such products protected by patent right registration. Strategic management is mainly the responsibility of (1) a. Some of the. a. Strategic Formulation: The stages of strategic management process start with the strategic implementation. Date the budget simply 2013 and denote the beginning and ending cash balances as beginning and ending. Assume the company expects 2013 to be the same as 2012, but with the following changes: a. This strategy contributes to the entrepreneur to gain competitive advantage for their sustainability in the market. MC Donalds, KFC, Hotel Radisson, are the examples of franchising. There is no business without risk. Engagement. Define the strategy Strategy is a blueprint of all the important entrepreneurial, competitive and functional area actions that are to be taken in pursuing organizational objectives and positioning the organization for sustained success and reveals how the targeted results will be accomplished. Step 2: Feasibility analysis. A complete version of the work and all supplemental materials, including a copy of the permission as stated above, in a suitable standard electronic format is deposited immediately upon initial publication in at least one online repository that is supported by an academic institution, scholarly society, government agency, or other well-established organization that seeks to enable Open . CAKART provides Indias top faculty each subject video classes and lectures online & in Pen Drive/ DVD at very cost effective rates. The introduction of the new product will help to improve the performance in the market. A. And the limited Entrepreneurs are individuals who are willing to take on risk to create something new. Creating the resource bundle which is valuable, rare, and inimitable is the important element of generating new opportunity. They are:(Poudyal & Pradhan, 2020). I currently work as an Economic Research Fellow at an African-based think tank. Resources can be capital, human, machine material, etc. Entrepreneurs may face difficulty in protecting the product uniqueness. In order to extract the most benefit from alliances, managers need to: Growth. True. The bargaining power of suppliers may prompt backward vertical integration. But there was no denying that the first Apple tablet carried some initial risks for the company. Network. The complexity of social entrepreneurial activity striving for the balance between social and commercial goals and its frequently consequent identity confusion raises concerns about the suitable application of social learning theories in SEs (Tracey & Phillips, 2018).On the one hand, social entrepreneurs require more vital transversal soft skills, which can be fostered more effectively through . By 1990, Microsoft had developed and distributed a version of Windows that would run on virtually all IBM-compatible personal computers see Case 1.2. Applying unethical strategies to be competitive, The primary force encouraging the entry of new firms into a purely competitive industry is. Its iTune download software had been re-developed to allow it to work with all Windows-compatible computers (about 90 percent of all PCs) and it had around 75 percent of the world music download market, the market being worth around US$1000 million per annum. B. When Apples Chief Executive Steven Jobs launched the Apple iPod in 2001 and the iPhone in 2007, he made a significant shift in the companys strategy from the relatively safe market of innovative, premium-priced computers into the highly competitive markets of consumer electronics. Entrepreneurs act as managers and oversee the launch and growth of an enterprise. Analyzing the information of the market and competitors will help them to know about the unfavorable situation in more clear way. b. C. Leads to increased scrutiny by stakeholder groups. In short, Strategy Implementation is managing forces during the action. Entrepreneurship is an innovation process that mobilizes people and resources. Strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. The purpose of strategic planning is to set your overall goals for your business and to develop a plan to achieve them. The strategy formulation process is a part of strategic management and involves using several analytical tools to figure out the best way to use an organization's . b. Its very important for us! Therefore, there is a need to conduct research and focus on entrepreneurial education among UiTM graduates to understand the factors that influence their business performance. The process of formation of corporate culture in entrepreneurial activity was presented, the classification of factors of corporate culture was improved, the primary bases of emergence, the status and prospects of corporate culture development in business were analyzed, its principles were systematized. Retrieved from Slideplayer: https://slideplayer.com/slide/8346652/ Poudyal, S. R., & Pradhan, G. M. (2020). \text{Cash Flows from Financing Activities}\\ Every entrepreneur needs to be an effective communicator. As a short term measure, Apple hit back by negotiating supply contracts for flash memory for its iPod that were cheaper than its rivals. 2: Contract or equity? In this situation, the venture carries little risk with little investment and focuses mostly on research activities and developmental activities. Step # 6. The search for an idea sources the development of concepts, and the implementation Adventure opportunities are the important interest areas of the school. Some of the advantages of first mover are as follows:i. Jobs and Wozniack took the concept back to Apple and developed their own computer the Apple Macintosh (Mac) that used this consumer-friendly interface. He also pointed out that the test-marketing program would cost Rs. Quizlet Inc. Retrieved from Quizlet: https://quizlet.com/51323401/business-chapters-1-4-flash-cards/, Parmar, V. (n.d.). Within the entrepreneurial process, there are different events that are generated along the process. The fourth situation of low innovation and high risk represents the small ventures business where there is low requirement of innovation. We want to be their most attractive partner for challenges that can be solved with chemistry. C. The transaction costs are be too low. On the other hand, he hardly wished to take an unknown risk of embarking on a national program until a test showed that the product did in fact have a good market demand. sustained success. They are: (Poudyal & Pradhan, 2020) Generation of a new entry opportunity Recent publications: The specific elements of the environment that arc external that affects entrepreneurial growth and development are still a debated issue among experts. Here are five tips to leverage when formulating a successful strategy for your organization. Become supplier of a foreign firm doing business in that firms home country Managing and Growing the Enterprise: It refers to the final stage of the entrepreneurial process. B. Accounting-based. In this article, well walk you through these five stages: Goal setting - Parents and Childs and the C suite. After collecting all information relevant to the problem, the entrepreneur lists as many causes of the problem as possible. For example, consider how Drybar founder Alli Webb used her understanding of market needs to create a niche within the traditional hairstyling industry. FloodBreak Strategy Formulation is an Entrepreneurial Activity based on strategic decision-making. The three categories are (1) work processes, (2) behavioral processes, and (3) change processes (see Three Approaches to Organizational Processes). (1), X Techniques used in environmental appraisal are (1), a. Single-variable extrapolation/multivariable interaction analysis, b. Structured/ unstructured expert/inexpert opinion, 1.Distinguish between a strategy and tactics. IV. Strategic management is mainly the responsibility of (1). At Stage I of the alliance formation process, which of the following is a viable option? b. Feint. The entrepreneurial trait school of thought: Identify common traits in successful entrepreneurs The venture opportunity school of thought: It focuses on the opportunity aspect of venture development. A key input to the budgeting process is last years statement of cash flows, which follows (amounts in thousands): Bosworth Wireless Statement of Cash Flows 2012, (Inthousands)CashFlowsfromOperatingActivitiesCollectionsfromcustomers$61,000Interestreceived400Purchasesofinventory(46,000)Operatingexpenses(13,200)Netcashprovidedbyoperatingactivities2,200CashFlowsfromInvestingActivitiesPurchasesofequipment(4,500)Purchasesofinvestments(800)Salesofinvestments900Netcashusedforinvestingactivities(4,400)CashFlowsfromFinancingActivitiesPaymentoflong-termdebt(200)Issuanceofstock1,400Paymentofcashdividends(500)Netcashprovidedbyfinancingactivities700CashIncrease(decrease)inCash(1,500)Cash,beginningofyear2,900Cash,endofyear$1,400\begin{matrix} Become alliance partner of foreign direct investor A. b) drive down profits of existing firms in the market. Fundamentals of Entrepreneurship. A. What specific entrepreneurial aspects include the strategy formation process? a) Entry will not affect the profits of existing coffeehouses. Introduction to Entrepreneurship Definition, Nature, Development and Process | Fundamentals of Entrepreneurship. Step 2: Ideate. \text{Purchases of equipment } & \text{(4,500) }\\ Some of the important subjective aspects of strategy formulation are culture, politics, leadership, and managerial bias. B. Chapter 07 Organizational Planning and Goal Setting, Tools for Formulating Capital Market Expectations, 2013 - 2023 studylib.net all other trademarks and copyrights are the property of their respective owners. Following elements are developed in the strategy formulation stage. In entrepreneurial firms, an innovation strategy is a specialized form of differentiation strategy. D. Almost entirely on situational factors. Death Notices In Victoria, Strategy Formulation is an Entrepreneurial Activity based on strategic decision-making. The organizational life cycle is the life cycle of an organization from its creation to its termination. A. The information of the new entry and the entrepreneurs willingness to take decision without proper information is dependent with assessing the attractiveness level. Selling the business make the most profit, with the least amount of risk. An individual's characteristics and actions of entrepreneurship are based: C. On both factors of nurture and nature. Plastic Candy Jars With Lids Dollar Tree, More recently, the term entrepreneurship has been extended to include elements unrelated to business formation activity. There are many reasons why a business needs to have an excellent entrepreneurial strategy. Foreign direct investment, International strategies for staying in domestic markets, Indirect exporting though domestic export intermediaries At the time, this revolutionary agreement was unique to Apple and was due to the negotiating skills of Steve Jobs, the Apple Chief Executive, and his network of contacts in the industry. 1. Define strategic management. Deals that have been struck by MNEs and host governments. \text{Purchases of inventory } & \text{(46,000) }\\ Entrepreneurs act as managers and oversee the launch and growth of an enterprise. b) Window of opportunity: This refers to the time when entrepreneur finds a favorable environment to enter in a market with a new product. Strategic management process has following five steps: Step # 1. Basically, there are two strategies to reduce the risk and uncertainties are as follow: Fig: Risk Reduction Strategy for New Entry Exploitation (Poudyal & Pradhan, 2020). Formal systems are adopted to bring ________ & amalgamation of decentralized units into product groups. And the leader in mobile telephones Finlands Nokia was about to hit back at Apple, though with mixed results. organi zation s long-term direction, set the specific performance objectives, develop strat egies to achieve these objectives and undertake to execute the. Apples strategy of keeping its software exclusive was a major strategic mistake. Communication. Currently, he is working on projects that examine the informal entrepreneurship process, the VC-entrepreneur relationship prior to financing, and diversity among nascent entrepreneur teams and how this affects their growth. Environmental Scanning 5. d. All of the above. Timmers (1998) first put forward the concept of the business model, holding that the business model is a description of enterprise products, services, information flow structure, various participants, interests, income sources of enterprise operation, and is a process of value creation, value acquisition, and value transmission, which essentially Identifying new opportunities for the organization to pursue. This course explores all aspects of the creation of a new venture from idea through startup, growth, and beyond. Give an outline of relation between Strategy and Customer in brief? iv. After being cautioned by the president of Medwin Drug about the necessity for watching costs more carefully, the division manager became increasingly concerned with two opposing factors in his marketing strategy: ( 1) test marketing of new products (offering them for sale first in a few test cities with area advertising and sales programs) tended increasingly to give competitors advance information on new products, and certain competitors had been able to copy a product almost as soon as Medwin could offer it nationally and profited thereby from Medwins advertising; and (2) national advertising and sales promotion expenses were rising so fast that a single major product failure would have an important impact on division profits, on which his annual bonus was primarily determined. What specific entrepreneurial aspects include the strategy formation process? Low. False Entrepreneurial strategy is a process where the entrepreneurs interpret, explore, and evaluate their ideas, plans, and policies in a systematic manner in order to achieve their aimed goals. As readers will be aware, the iPhone went on to beat these earlier sales estimates and was followed by a new design, the iPhone 4 in 2010. Business Model Innovation. In addition, Nokia also launched a complete download music service. It helps to minimize risk through the contract between the new entry firm and franchiser by allowing to use brand image and value of the product or serve. Innovation. In particular entrepreneurial competencies include entrepreneurial traits, motives, self-image, attitude, behavior, skills, and knowledge (Boyatzis, 1982).

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