1.In your own words explain, are entrepreneurs born or made?
Theseare individuals with diverse personalities that can either be naturalor gained through experience. Some are usually able to engage inrisky investments while others are generally cautious in theirundertakings. Most entrepreneurs embrace the potential opportunitiesby incorporating their abilities and passion for achieving success.Both professional and personal life skills contribute significantlyto entrepreneurial success (Kuratko, 2016). Even though some may beborn with entrepreneurial personalities, experience and education arekey beneficial aspects that will lead to success. Lack of theseelements may be detrimental to the success of an entrepreneur. Peopleskills is a fundamental component that is missing among natural-bornentrepreneurs as opposed to those who have gained experience throughworking and interacting with different people.2.In your own words, what is a venture capitalist?
Theseare individuals or businesses with the financial capability ofinvesting in business ventures through the provision of capital tonewly established or expanding businesses. They usually have highexpectations of huge returns through their investments in highpotential businesses even though most of these investments areconsidered to be high risk. This type of financing is referred to asequity investment. Even though there is a likelihood of incurringlosses, venture capitalists have sufficient funds to foresee such ascenario (Kuratko, 2016). They tend to focus on the competitiveadvantage of the business in addition to active management, theexisting market, and unique products.
3.In your own words, explain three of the nine building blocks formanagers to use in developing an innovative and effective businessmodel.Customersegment – businesses engage with different segments of customershence there’s a need in identifying the desires of the customers.Market segmentation may be done through geographical, personal orbehavioral categorization.
Valueproposition – this is an aspect that contributes to solving theneeds of the customer through identifying the benefits of the productto the customers. The value of a product is influenced by differentfactors such as product design, pricing, and customization.
Distributionchannel – this involves the use of various means that willfacilitate the delivery of the value proposition to customers. Thesechannels include sales, communication and distribution channels(Kuratko, 2016).
4.What is a competitive advantage? How does marketing contribute to thecreation of a competitive advantage?
Benefitsattached to an organization due to the ability to offer qualityproducts at a reduced price or higher prices through embracing theconcept of differentiation is referred to as a competitive advantage.This provides the organization a competitive edge over its rivals.For an effective competition, organizations must establish importantcompetencies that match the existing opportunities in the market.Marketing contributes to the competitive advantage of an organizationas it enables consumers to identify with a product hence improvingproduct awareness. The only way to attract prospective customers isthrough marketing strategies. Sales are likely to increase due toproduct awareness as customers will begin to make purchases while atthe same time spreading the news about the qualities of the product(Christopher, 2016). Marketing strategies develop the reputation ofthe company as a result of public engagement and dispensation ofquality products.
5.What is market segmentation? List the steps in the marketsegmentation process.
Consumersare aggregated in different categories of common demands and reactsin the same way to a marketing action (Kuratko, 2016). The stages ofmarket segmentation include
Target market identification
Identifying the expectations of the intended audience
The creation of subgroups
Evaluation of the requirements of the intended audience
Identification of the market segment
Strategizing on the marketing concept
Frequent behavioral review of the target audience
Knowledge of the vastness of the target market
6.Discuss several reasons why marketers continue to have a difficulttime understanding, predicting, and explaining consumer behavior.
Thecontinuous change in some behavioral aspects of buyers is one of themain reasons. Consumers are considered to be more dynamic hence it’sdifficult to know their particular need throughout.
Economicchanges also affect the purchasing power of consumers. There is atendency of reduced purchases when countries are undergoing arecession. If the economy is good shape, the purchasing power alsoincreases (Johnston and Marshall, 2016).
Thecontinuous change in technology adds to the difficulty encountered inunderstanding consumer behavior. Consumers embrace differenttechnologies hence the need to adopt an all-rounded marketingstrategy that will target potential clients.
Additionally,change in qualitative factors also contributes to the change in thedynamics of consumer behavior.
7.In your own words, what are the characteristics of the four types ofbusiness legal entities?Partnershipthis is a business entity in which the owners can be two or more innumber. Investments in the business are made in equal proportion, andalso the returns are distributed in equal proportions.
ALimited Liability Company the company’s debts or liabilities arenot a responsibility of the members of the company. However, they areresponsible for loans accrued by the business especially if theyacted as guarantors. Profits are distributed as per the agreementsthat were formulated during its establishment. Dissolution of theLLC may occur in the case of death of a member, or a member opts out(Horne, Williamson, and Herman, 2016).
Thesole proprietor this is a person who owns the business and isresponsible for the entire financial component of the business. Theindividual is also responsible for all debts accrued by the business.The owner’s taxable income comprises of the profits made by thebusiness. Even though the start-up cost of such a company may becheap, access to finances and loans may be difficult.
Acorporation this entity offers a distinction between the businessand the owners. Taxation of profits is done at the corporation level.It provides shareowners with limited liability protection. Companiescan easily access loans, and it’s also easier to attract potentialinvestors. The company does not dissolve if one member dies nor optsout (Horne, Williamson, and Herman, 2016).
8.How does the cultural environment affect international marketingactivities?
Foreignmarkets have an impact on global marketing strategies. Differentfactors have to be taken into consideration before the introductionof a product to an international audience. One of these factors isthe language spoken. Marketers have to be familiar with the languageof a particular region so that they can be able to use it in theirmarketing strategies. They must also take into consideration thereligious beliefs of the community to ensure there’s no conflictbetween religious principles and the marketing strategy. Themarketers must be well informed on the customs and taboos of thetarget audience before embarking on popularizing their product(Johnston and Marshall, 2016). Finally, it is vital for the marketersto be knowledgeable about the business norms in a particular countryas these rules differ from one region to the other.
9.Describe the advantages and disadvantages of a flat versus tallorganizational structure.Flatorganizational structure
Themanagement levels are reduced with the primary focus being employeeempowerment rather than an emphasis on the occupational status ofemployees at work (Johnston and Marshall, 2016).
Apartfrom promoting the vision of the organization, employees are offeredmore opportunities to excel.
Informationand research are freely shared among employees thus facilitating anenvironment of excellence.
Thisstructure allows for flexibility and the ease in adopting changes.
Thereis a faster implementation of decisions due to quick communication.
Thereis a possibility of confusion as a result of the heavy workloadhandled by managers and the increased numbers of employeesinteracting with managers.
Thechain of command is usually long, and it’s common for organizationswith complex structures (Johnston and Marshall, 2016).
Itoffers clarity and managerial control hence employees can be closelysupervised.
Itprovides transparent structures for effecting promotions.
Theresponsibilities of the employees are clearly defined.
Excessivelylong structures are a challenge due to the lengthy duration is takenbefore communication can reach the intended audience.
Thelack of communication severely hinders the decision-making process.
10.Explain the concept of employees as stakeholders in your own words
Employeeshave to be involved in the realization of the company’s objective.This concept focuses on the value employees put on their work and theability to perform quality work. This concept also focuses on theemployees determined to attain their targets, surpass theirexpectations and act in the best interest of the company. It isimportant for businesses to focus on employee engagement through theestablishment of motivational programs and initiating good policies(Johnston and Marshall, 2016). Employees should be adequatelyequipped to perform their jobs efficiently. Employees will be proudof their job hence make appropriate decisions. Organizations shouldbe able to reward their employees based on performance.
Christopher,M. (2016). Logistics& supply chain management.Pearson Higher Ed.
Horne,M. S., Williamson Jr, T. S., & Herman, A. (2016). TheContingent Workforce: Business and Legal Strategies.Law Journal Press.
Johnston,M. W., & Marshall, G. W. (2016). Salesforce management: Leadership, innovation, technology.Routledge.
Kuratko,D. F. (2016). Entrepreneurship:Theory, process, and practice.Cengage Learning.