Entrepreneurial Small Business 3rd Edition Jerry Katz, Jerome A Katz - Solutions

Unlock the full potential of your entrepreneurial skills with the "Entrepreneurial Small Business 3rd Edition" by Jerry Katz and Jerome A Katz. Our comprehensive solutions and answers key are designed to guide you through the textbook's challenging questions and answers. Dive into detailed chapter solutions and test bank materials, available for free download. Our step-by-step answers and solution manual ensure you have access to expertly solved problems, making learning seamless. Whether you're an instructor seeking an instructor manual or a student looking for solutions in PDF format, our resources provide unmatched support.

1. The scheme and overview illustrated in Figure E.2 is aimed at capturing with a bird’s-eye view the elements afecting the journey from the frst encounter with an idea resulting in a vague vision of opportunity to the steps to making it become a reality.(a)Give your personal account of the
B Financing If you fnd the venture attractive and feasible, it is time to fnd out how much money the venture will need in start-up capital (also called initial capital or seed money). The general headlines here are:Capital needs = investments + other initial costs(a) What kind of investments do you
Let us assume that you, during a summer job, consider starting a summer business with the value proposition: ‘fresh-pressed organic orange juice on the go 24/7’. The pop-up shop will be located in a small, but popular and swinging city during the summer months (it will be open from June to
6. The chapter includes the following two statements: ‘growth requires capital’ and ‘money always comes with a price’.Elaborate on these statements and think through what dilemmas they can give cause to for a successful growing start-up.
5. Financial sustainability is discussed in the short and long term.(a) Explain the fundamental diferences between the following two associated questions:• Do we have enough money (cash) available?• Can we expect to make a proft?(b) Is it possible to answer ‘no’ to the frst and ‘yes’ to
4. The chapter stresses that the business model aims to iron out the goal conflicts and dilemmas inherent in designing a business model. One classic conflict is formulated with the saying:‘You can have two but not all three – but if you only have one, you have none.’Dissect the more general
3. The discrepancy between ‘customer value’ and ‘economic value’is illustrated with Spotify’s dilemma. Explain the rationale behind this, in the digital economy, using the terms ‘create, deliver and capture value’.
2. Three witty and telling quotations from Timmons, Kjos and Eisenhower give us useful insights with bearing on the art of business modelling:To open a business is easy. To keep it open, is very difcult.(Timmons, 1989)Anyone can fy with low fares, the challenge is to fy with low costs.(Bjørn Kjos,
1. ‘Entrepreneurs make decisions based on instinct and act on the go, they don’t need fnancial gobbledygook, planning or budgets.’Discuss this statement and elaborate on your personal opinion on this issue.
E The social progress index embodies a large body of research on moving ‘beyond GDP’ and older ways to defne success in society. They have instead identifed the social and environmental elements of the performance of countries, aiming to inspire action and have a positive impact. From this
Value curves(a)Present the main competitive factors (value elements) in the following industries/markets (provide about fve factors each).•e-scooters for sharing in the city centre•Electric cars•Youth hotels•Bookstores•Tablets (like iPad)(b)Take one of the above markets/results and
Have a BMC at the ready – preferably designed by you and your team.(a) Expose it to a stress test by answering the following questions:General Do the blocks ft together and support each other, are they in sync? Do all the blocks support the value proposition? Are there any ‘misfts’ or loose
In a group, prepare two big, blank BMCs and get some post-it notes.(a)Pick two strong competitors in a sector, decode and map them briefy in the BMC forms (e.g. Spotify vs Apple Music McDonald’s vs a local fne-dining restaurant, Starbucks vs a local classic cafe, TESLA vs BMW, H & M vs Zara, IKEA
Following is a list of eight companies considered to be among the most innovative companies of 2020 (see bcg.com and fastcompany.com). Match them with the business patterns just mentioned.Choose the one you fnd most ftting, they are often overlapping. (If you don’t recognize the company, Google
Ten archetypical business patterns with disruptive potential are specifed in Insights 6.1.(a)Give one additional example from your experience for each of the following models:•subscription (Netfix)•freemium (Spotify)•free model (Facebook)•marketplace (eBay)•access-over-ownership
9.What challenges can one expect mixing social and proft goals in a social enterprise?
8.What in your opinion are the prerequisites for using the terms ‘entrepreneurship’ and ‘entrepreneur’ to describe activities and actors in the social sector? Explain your view.
7.What similarities and diferences can we fnd between business-oriented entrepreneurship and social entrepreneurship/ enterprises?
6.The term value constellation is used in connection with the value curve and the hierarchy of values (the value pyramid). What can we learn from this term and the theory behind it? How can we use this in the design of the ofering and the BMC?
5.The business model canvas (BMC) can be described as nine hypotheses. What is the rationale for this way of seeing (interpreting) the BMC? What kind of actions does this view trigger?
4.A frequent theme in the chapter and throughout the book is that technology alone does not create value. Take the sentence further and describe fully what it means and give examples from your own experience.
3.IKEA’s business model is described as dynamically stable. What does this mean?
2.The most used and accepted description of a business model is that ofered by Osterwalder and Pigneur (2010): the rationale of how an organization creates, delivers and captures value. Scrutinize the three tasks this defnition assigns to the business model (create, deliver and capture). What do
1.The text stresses the idea of a business model as a value creating system. What is the essence of this system’s perspective?
Debate!Divide into ‘debate teams’ and give one side the task of arguing for the extensive use of business plans in start-ups, and the other group against it.Prepare your arguments carefully! Try to forestall the counterarguments from the opponents and be ready with your responses.
Get access to the short explainer video from the Harvard Business Review entitled ‘How to Write Great Business Plan’ (2017), based on a classic article with the same title from William A. Sahlman (1997) (see hbr.org/ video/5399060076001/the-explainer-how-to-write-a-great-business-plan).What are
(a)Find and acquaint yourself with a business plan in a subject you are interested in. You can get them from your teacher, via your ‘start-up incubator’ or from a sample business plan collection on the Internet (e.g. www.bplans.com).(b)Read two or more business plans and compare. What seems to
B(a) When following the ‘efectual method’, you are expected to start your journey with the resources you can bring to the table as the point of departure. So, what do you have?The frst step in answering that question is seeing yourself as a human resource and ask yourself: ‘Who am I?’
A Imagine yourself in the kitchen planning a meal for you and your friend.(a)How do you typically go about in this situation? Do you take the casual or efectual route?(b)What conditions infuences your choice?(c)What inferences with an entrepreneurial bearing can we draw from this?
6.A start-up business plan seems a good idea because it answers basic questions like ‘Where are we now?’‘Where do we want to get to?’ and ‘How are we going to get there?’(a)What are the unspoken and underlying basic assumptions behind this seemingly obvious reasoning?(b)Do the implied
5.The text suggests an ‘it depends’ position in the choice of principal process model in terms of when to get going. What does it depend on?Give an outline on what determines the choice between the three alternatives: the planned, the efectual or the lean model.
4. Efectuation refers to a radical deviation from the traditional view of how to bring about a new venture and transform reality.(a)Can it be described as a rational method?(b)Does the theory make sense? Does it have ‘face validity’?(c)Does efectuation now replace causation as the ‘way to do
3.The linear, goal-driven, learn-before-we-go process seems reasonable, rational and obvious – and therefore attractive.Discuss the following questions:(a)Do you agree with the above formulation?(b)Where does this attractiveness come from?(c)What are the main weaknesses in the linear
2.The chapter discusses why it is so difcult fnding a universal model or a best practice for the ‘entrepreneurial process’.Discuss and give plausible explanations for this dilemma. Is there a solution?
1.(a)The text implies that there is a diference between an idea and an entrepreneurial opportunity. Discuss.(b)In the same line of thought, is there a diference between an entrepreneurial opportunity and a business idea/business model? Discuss.
Pay attention to attention!First individually and then as a group, take a walk down the main street in your community. When you return home, write down what you saw, what you noticed and your refections on the observations. One A4 sheet is enough!Compare your observations with your group members.
Speed test your discovery skills against the Inventors DNA theory:Do you often question the conventional wisdom in situations? Do you often ask the questions: ‘Why?’‘Why not?’‘What if . . . ?’ Do you often fnd yourself asking: ‘I wonder how, what, when . . . ?’ Do you often ask if
Take one imagined opportunity from those discussed in B1 and make an evaluation of it using the following questions:•Is it technically possible to solve the ‘problem’?•Are potential customers/receivers interested in that solution?•Will it be worthwhile?•Does it create value for you or
In a group, use the PESTEL acronym, one area at a time, to identify major drivers of change in society (≈ trends). Then, select the one ‘change driver’ you think is conceivable and interesting and derive potential opportunities that could arise from it.
Give a sketch of a tentative solution to the ten problems detected in A2.
The fourth one – customer pains – is often a good starting point to spot opportunities and train yourself to be attentive to opportunities. Consider your usual daily routine and give ten examples of moments of irritation, friction, frustration or inconvenience that could be classed as problems
Six sources of opportunities are identifed in the text. In a group, give at least two examples of new products, services or initiatives that can be traced to four of them:1 Things that work elsewhere. 2 Economic and social change and consumer trends. 3 Research/new technology/new knowledge. 4
5 In a group, discuss why it is so difcult to see new alternative solutions. Explore possible explanations and cures to this dilemma.
4 ‘There are no straight lines between experiences and knowledge’ is a sentence in the text referring to learning in action. What does it mean? What kind of reasoning can we fnd behind this claim?
3 Example 4.6 describes the Ice Hotel in Jukkasjärvi. In a group, discuss whether this realized opportunity was found or created. Elaborate your argument and compare with other groups’ conclusions.
2 Five well-grounded hypotheses concerning the status of the opportunity as discovered or created were presented. Unpack one at a time and give reasonable arguments for them. How can one claim the following:•The more uncertainty and complexity there are in the environment, the more the creation
1 The chapter starts with two similar bold statements. But they differ substantially in their meaning and implications.(a) Read the quotes closely and then refect and discuss the basic diferences between the two and their repercussions:Opportunity is central to entrepreneurship – without it,
E Take at least two entrepreneurs you know personally (or at least have some knowledge about) and evaluate them according to the traits/dimensions in the following table. Seek a balance between male and female. Use a scale from 1–5, where 1 is the lowest and 5 is the highest. Elaborate and
D International studies of entrepreneurship (GEM, 2020) have found that attitudes and perceptions, including self-perceptions, vary considerably between and across countries and that these diferences may have substantial implications for the level of entrepreneurial activity. One typical tested
C The chapter casts some light on our innate weaknesses as human beings in reaching conclusions and making rational decisions (i.e. decision-making biases).Give examples from your own experience to each of the below examples of biases (fallacies). Considering each one individually, explore what one
Some scholars have described the theory of self-efcacy as the psychological dimension necessary for taking action – what transforms thought into action. Explain the rationale behind this theory.
In line with the propositions stated earlier, ask yourself the following questions. Grade your answers 1–5, where totally disagree is 1 and totally agree is 5. Do you:•see opportunities where others see problems?•have a questioning mindset that goes beyond the obvious?•exhibit a willingness
The chapter suggests that membership in networks absorbs uncertainty by afording a supportive value system and accompanying senses of belonging, security and control.Give some possible explanations as to how this efect works (i.e. the cause and efect behind the perceived reduction of uncertainty).
5 The saying ‘no entrepreneur is an island’ refers to the tendency to overemphasize the role of the individual as the ‘lone hero’ in entrepreneurship. Recent discourse suggests that the team, network,structure and context are just as important to recognize if we want to understand
4 The following list of statements are assumed to have a bearing on how entrepreneurs think and act and be components in an entrepreneurial mindset.Examine them one at a time and explore if and why they explain something essential in the entrepreneur’s mode of thinking and acting – their modus
3 The following extract is taken from Apple’s ‘Think Diferent’ campaign (1997) and clearly places the ‘game changer’ on a pedestal of heroism and remarkableness, as a unique and lonely freethinker.Here’s to the crazy ones. The misfts.The rebels. The troublemakers. The round pegs in the
2 The chapter mentions three common myths about entrepreneurs:•They are born to it.•They have unique traits.•Entrepreneurship is a talent, not a skill. You can’t learn it.Which one of these three, if any, do you agree with? How do prejudices like these arise and consolidate over time? Do
1 A classic formulation from Shaver and Scott (1991) captures a long line of thinking concerning entrepreneurship:Economic circumstances are important, social networks are important, entrepreneurial teams are important, marketing is important, fnance is important, even public agency assistance is
D If we suppose we have four ideal types of processes to come to a decision/ action. Which one might best match the uncertainty outlined in the four levels? Elaborate and explain your choices.Your repertoire of ideal types are: detailed planning, scenario planning, experimenting/improvising,
C2 Can we fnd a pattern here? Try to construct some hypothesis in line with:The higher level of uncertainty, the . . . The lower level of uncertainty, the . . . The more strategic decision, the higher . . . The more operational decision, the more . . .
C1 The chapter introduces a four-level model of uncertainty – from relative certainty to genuine uncertainty (Figure 2.7). Try to match diferent decision situations to each of the levels.Which level (1–4) is best matched with the following kinds of decision situations?1 How many teachers do we
B Three typical uncertainties were identifed in the chapter: market uncertainty, technological uncertainty and environmental uncertainty. Explain them and give examples on each.
A Do you have the prerequisites to understand the ‘big picture’?Test yourself •Do I have tools and methods to keep me informed with what’s happening out there?•Do I have the ability to identify what’s happening?•Do I regularly get out to see what’s going on?•Am I regularly
5. Figure 2.6 displays the idea that entrepreneurship has more impact and creates more value in an innovation-driven economy compared to the two earlier stages (the factor- and efciency-driven stages); that is to say that entrepreneurship creates more value in a modern economy than ever before.What
4(a)Uncertainty is associated with risk and proft. Clarify why and how.(b)Risk is associated with fear and hesitation to act, while entrepreneurs are supposed to be people of action. How does this come together?Are entrepreneurs gamblers? Do they have another appetite for risk? Are they just overly
3 Discussion about the size of a company is a recurring theme and a lot of powerful proclamations are often produced: ‘big is dead’ and ‘small is beautiful’ meets ‘big is back’ and ‘big is beautiful’. All have their advocates. What are the main arguments from both sides here? What
2 The ‘entrepreneurial economy’ is contrasted to the ‘managerial economy’ and it is hinted that the future belongs to the former. Do you have experiences or insights supporting or opposing this prophesy? What do you think in this matter? Elaborate!
1 The chapter explores how you can cultivate your ‘environmental sensitivity’ and improve your understanding of the ‘big picture’. Why is that kind of aptitude and capacity important for you as an emerging entrepreneur? Why is it important for your organization?
In discussions concerning the role of entrepreneurship in the economy, an often recurring key concept emerges, namely Schumpeter’s ‘creative destruction’ – a concept encompassing two words that seem to be opposite to each other – to create and to destroy.Unpack the concept and relate it
The chapter introduced a plethora of attempts to defne the entrepreneur and entrepreneurship. Did you identify adequate aspects among them that you found interesting and powerful for understanding and explaining the phenomena? Gather your choices and discuss them using arguments from your
What did you notice in the chapter that you want to remember? Was it something in the reading that surprised you? What confrmed or was in line with your pre-understandings? What challenged your pre-understandings? Did this encounter with the text change some of your preunderstandings?
Why is it a good idea to acquaint oneself with the historical background of entrepreneurship? What can we learn from that kind of scouting and thinking?
5. Can you think of another product that is basically the same as the competition and has been positioned much differently in order to command a higher price?Dongzhou Gongbu saw a golden opportunity, only he wasn’t quite sure what to do with it at first. A native Tibetan, he had worked in the
4. How might he use this in advertising?Dongzhou Gongbu saw a golden opportunity, only he wasn’t quite sure what to do with it at first. A native Tibetan, he had worked in the Chinese government for a number of years and had witnessed the difficulties the Chinese government was facing feeding its
3. How did this help him with his pricing strategy?Dongzhou Gongbu saw a golden opportunity, only he wasn’t quite sure what to do with it at first. A native Tibetan, he had worked in the Chinese government for a number of years and had witnessed the difficulties the Chinese government was facing
2. What was his “total product”?Dongzhou Gongbu saw a golden opportunity, only he wasn’t quite sure what to do with it at first. A native Tibetan, he had worked in the Chinese government for a number of years and had witnessed the difficulties the Chinese government was facing feeding its
How did Dongzhou Gongbu “discover” his new product?Dongzhou Gongbu saw a golden opportunity, only he wasn’t quite sure what to do with it at first. A native Tibetan, he had worked in the Chinese government for a number of years and had witnessed the difficulties the Chinese government was
For one week collect all the coupons you find in newspapers, magazines, mail, and so on. What percentage are for products or services or brands that you would really buy? Typically, how many coupons do you actually use in a week? Pull all the coupons for one product category and visit a store.Are
Select a service you know. Brainstorm a list of potential incremental changes—whether technologically feasible or not—that might extend the product life cycle for it over the next several years.
BMW automobiles call themselves “the ultimate driving machine.”The advertising tagline attempts to capture the total product package—what driving a BMW means to its owners.Review other advertising and come up with a list of five other products that do the same thing. What do their products
At this time, you are fairly experienced with college education.What could you suggest could be done in order to reduce intangibility, inseparability, perishability, and heterogeneity of this service?
10. Think of two products in the same product category—one high priced and one low priced. How do the other parts of the marketing mix—the product itself, the advertising message, and the distribution—support or detract from the message the price tag gives?
9. Describe a situation in which you have been influenced by consumer buying psychology toward considering a price too high or a real bargain.
8. While displaying at the craft fair, a representative of a mail order catalog company wants to put your product in the catalog.It will pay you $40 and mark the product up to $55 for the catalog. It estimates that your market share could be substantial and should be dependent only on your
7. Imagine you can make a $75 retail Christmas wreath in two hours at a variable cost of $25 per wreath and a fixed cost of $800. Marketing consists of a booth at the local craft fair (rent: $100 for the month before Christmas), where five other competitors already sell wreaths nearly identical to
6. How do the four primary factors of optimum price work together to determine what price should be? Draw a diagram of the relationships.
5. Suppose you are operating a copy service. You learn that FedEx Kinkos is going to open an outlet just a few blocks away.You are concerned that you cannot compete with the marketing power of FedEx. What is likely to happen to your business if you lower your prices and place colorful advertising
4. Why do owners and managers of small businesses spend so much time on issues of pricing?
3. List all the products/services you have seen lately that are promoted as new, different, improved, or otherwise changed from what has been available before. What percentage of these are actually me-too products? Identify the differential advantages these companies believe they have over the
2. What is the core component, the augmented product, and the total product sold at your college or university? How does it differ from your institution to others in the area?
1. A college education comes pretty close to being a true service.Discuss the four main characteristics of service—intangibility, inseparability, perishability, and heterogeneity—as they pertain to a college education.
3. What are the critical success factors (CSFs) that can positively impact the chance of success?
2. In what areas are most entrepreneurs weak and how can they improve these areas?
1. What can entrepreneurs do to decrease the effect of liability of newness?
What other unusual benefits have you heard of or do you think could make a business attractive to potential employees?
Do you think a small business can use unconventional benefits in lieu of a high salary to recruit and retain a good employee?
How do you think creating a benefit such as unlimited vacation can increase productivity and retention?What would be some of the drawbacks to adding the unlimited vacation?
2. Could some of the difficulties this restaurant experienced have been reduced or eliminated with a disaster plan?
1. What different risks does a business strongly based on tourists have from a business not based as heavily on tourism?
3. What type of inventory system would you suspect Cameron Hughes has in place?

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Entrepreneurial Small Business 3rd Edition Jerry Katz, Jerome A Katz - Solutions

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