Questions and Answers of Entrepreneurship

What decision capabilities should the future HR department of Wells Fargo possess?
What is franchising? How does it differ from other forms of business ownership?
What is the difference among an individual franchise agreement, an area franchise agreement, and a master franchise agreement? If you wanted to open a large number of Fresh Healthy Vending
What are the rules of thumb for determining whether franchising is a good choice for a particular business? Provide an example of a business that wouldn’t be suitable for franchising.
If an individual Planet Smoothie franchise is losing money, does it still have to pay a monthly royalty? Explain how this is possible.
Describe some of the resources available to prospective franchisees to identify franchise opportunities.
Why is it important for a prospective franchisee to retain his or her own franchise attorney?
What is the purpose of a franchise agreement? Identify the two sections of the franchise agreement and describe the purpose of each one.
To date, every court case that has been adjudicated in the United States indicates that franchisors do not have a fiduciary responsibility to their franchisees. What do these rulings suggest to
What are some of the aspects of franchising that make it subject to ethical abuses? What steps can a prospective franchisee take to ensure that a specific franchisor is reliable and ethical?
What are the main reasons that many U.S. franchise systems are expanding into global markets? Do you think this expansion will continue to gain momentum or will decline over time?Provide an example
Does franchising have a bright or a dim future in the United States? Make your answer as substantive and thoughtful as possible.
Reread the Opening Profile, which focuses on Joseph Keeley and the franchise organization that he founded—College Nannies & Tutors.Think of an activity, other than nanny and tutoring services, that
Think of the current point that you’re at in your career or educational process. Do you think you’d be capable of owning and operating a franchise today or shortly after you graduate? If so, what
Pick a franchise organization that you admire. Spend some time looking at the company’s Web site. Describe how the company is set up. Is it a product and trademark franchise or a business format
Identify a franchise location near where you live and ask to talk to the owner.Show the owner one of the two “You Be the VC” features at the end of this chapter and ask the person whether he or
Select a franchise organization that is located on your campus or near your campus that isn’t involved in any co-branding arrangements. Suggest several co-branding relationships that would make
Make a list of five large franchise organizations.Do some Internet research to see if you can determine if these organizations are offering programs to help potential franchisees gain access to
Look at Table 15.4. If you were offered the opportunity to buy into any one of the franchise organizations listed in Table 15.4, which one would it be? Explain the rationale for your selection. TABLE
Recently, a good friend of yours gave a talk to a community group about franchising.Three of the people in the audience approached your friend after the talk to ask if their businesses are suitable
Do you think Starbucks could have benefited from placing a greater reliance on franchising over the years? What are the benefits to Starbucks as a result of the decision to avoid going the franchise
Wahoo’s Fish Taco is a franchise organization that offers Mexican food mixed with Brazilian and Asian flavors. It is a “fast-casual” restaurant that was founded in Costa Mesa, California, in
Curves International, whose 30-minute workout and singular focus on women made it among the world’s fastest-growing franchise organizations, seems to be losing at least a bit of steam.Over the past
Have you ever stopped at a gas station and caught a quick lunch at an Arby’s or a Blimpie sub sandwich inside? Or have you ever noticed that Baskin-Robbins and Dunkin’ Donuts often share the same
Imagine you’re a police officer who works the evening shift. You go to work at 3:30 P.M. and complete your shift at midnight. You’ve always enjoyed working out late in the day but don’t have
The idea for Game Truck first came to Scott Novis at his son’s fourth birthday party. They were at a pizza arcade and the noise, expense, and frustration caused him to think about a better
Skip ahead to Chapter 4 and look at the “You Be the VC 4.1” feature, which focuses on SafetyWeb. How would you assess the likely demand for SafetyWeb’s service? YOU BE THE VC 4.1 Company:
Zipcar is a car sharing service that Cambridge, Massachusetts, residents Robin Chase and Antje Danielson launched in 2000. Scott Griffith, a former Boeing engineer, now leads the firm. Although
In 1990, Jamba Juice started in San Luis Obispo, California. The company, which sells smoothie drinks, got off to a good start, opened two more cafés in 1993, and now has hundreds of outlets all the
Refer to the opening feature, which focuses on Klymit, a company that makes ultra light and hyperefficient cold weather apparel and related products. Make a list of the things that you believe Nate
Neil Frasier, a friend of your family, is a very proficient accountant. He’s 61 and has spent his entire career working at the Sears Holdings Corp. headquarters in Chicago. He just got a call from
Reread the Opening Profile. After doing this, make a list of all the things that you think that Jessica Truesdale has done right in building True You Cosmetics’marketing program.
It’s important for entrepreneurial firms to generate press as effectively and inexpensively as possible. One start-up, Airbnb, generated substantial press during its start-up phase at very little
Which of the growth strategies discussed in the chapter are the most risky? Which are the least risky? What role should risk play in a company’s decision to pursue a particular growth strategy?
Identify three start-ups, other than those discussed in the chapter or listed in Table 2.1, which were started to satisfy a changing environmental trend.Briefly describe the start-up and the
The “You Be the VC” features included in Chapters 1 and 2 focus on Windspire Energy, Songkick, PharmaSecure, and ecoATM. Which of these four companies do you think is pursuing the strongest
Read Case 1.1, which focuses on RunKeeper. What similarities, if any, do you see between RunKeeper’s start-up story and the start-up stories of Rovio Mobile (the company behind Angry Birds) and
Increasingly, entrepreneurship is being practiced in countries throughout the world.Why do you think this is the case? Do you expect entrepreneurship to continue to spread throughout the world, or do
Identify the five forces that determine industry profitability.
Describe how the threat of substitute products has the potential to suppress an industry’s profitability.
How does the threat of new entrants have the potential to suppress an industry’s profitability?
Describe the four primary factors that play a role in determining the nature and intensity of the bargaining power of buyers. How does the bargaining power of buyers have the potential to suppress an
Identify the nontraditional barriers to entry that are particularly suitable for entrepreneurial firms.
Describe the characteristics of a fragmented industry. What is the primary opportunity for new firms in fragmented industries?
Describe the characteristics of a mature industry. What is the primary opportunity for new firms in a mature industry?
What is a global industry? Describe the two most common strategies pursued by firms in global industries.
What is the purpose of a competitor analysis? Make your answer as complete as possible.
Karen Sharp lives in a town of approximately 10,000 in Western Kentucky. There isn’t a furniture store in the town and Karen is thinking about starting one. She has good business and marketing
Jackson Sprout, a long-time friend of yours, is disenchanted with what he perceives to be a lack of quality in the local restaurants serving Italian-based foods. In talking to you about this, Jackson
Your friend Lisa Ryan is opening a smoothie shop that will sell a variety of smoothie drinks in the $4 to $5 price range. When you ask her if she is worried that the steep price of smoothies might
Look again at Case 5.1 dealing with Panera Bread. Using the Internet to search for information, make a list of this firm’s direct competitors, indirect competitors, and future competitors. On a
The founders and initial management team at Xeros want to do as good a job as possible collecting competitive intelligence in an ethical manner to determine if largescale manufacturers of washing
Dana Smith will soon be opening a fitness club in Tucson, Arizona. Having identified his competitors, he wants to display the information he has collected in a way that will help him determine how
Complete a competitive analysis grid for Panera Bread.
Imagine the following scenario. The produce buyer at Whole Foods Market in a Midwestern city wants to buy sweet corn from local producers. She’s familiar with about a dozen local sweet corn
List at least three reasons that demonstrate why having a business model is important.
Why did WebHouse’s business model fail?
How does an understanding of the value chain help explain how business models emerge?
What are the two fatal flaws that can render a business model untenable?
What are the four primary components of a firm’s business model? Briefly describe the importance of each component.
Describe what is meant by the term core strategy and why it is important.
Describe the purpose of a mission statement.
What is meant by the term business model blind spot? Provide an original example of a firm that suffered as the result of having a business model blind spot.
What is a firm’s product/market scope?Why is the concept of product/market scope important in regard to crafting a successful business model?
Why is it important for firms to differentiate themselves from competitors?
In what ways does a focus on a cost leadership strategy lead to a very different business model than a focus on a differentiation strategy?
Define the term core competency and describe why it’s important for a firm to have one or more core competencies. How do a company’s core competencies help shape its business model?
What is meant by the term resource leverage? How does an understanding of this term help a firm exploit new product or service opportunities?
What is meant by the term strategic asset?Provide examples of the strategic assets of three well-known firms.
Why do firms typically need partners to make their business models work?
What is meant by the term customer interface? Explain how Dell and Hewlett-Packard differ from each other on this core dimension.
Describe the impact of a firm’s pricing structure on its business model.
Spend some time thinking about Warby Parker, the eyewear company (highlighted in the “Savvy Entrepreneurial Firm” feature)that is pioneering a new business model. Which of the four components of
Carol Schmidt plans to open a company that will make accessories for smartphones.She has read that having a clearly articulated business model will help “all the elements of her business fit
Do you consider the founders of Zipcar to be business model innovators? If so, why do you think a traditional car rental company, like Hertz or Avis, didn’t bring car sharing, as an alternative to
Jane Rowan is an experienced business consultant. Through working with clients, she has noticed that many companies have “business concept blind spots.” How can having a business concept blind
Write a mission statement for 99designs, the company highlighted in the “Partnering for Success” feature. How can this statement help clarify and direct the core strategy component of
Select one of the following companies:Facebook, Foursquare, or Zynga. For the company you selected, identify its core competency and explain how its core competency strengthens its business model and
Using the same firm you selected for question 8, make a list of the firm’s strategic assets. How does each of its strategic assets strengthen its business model?Question 8Select one of the
Twitter (http://twitter.com) is a free networking and micro-blogging service that allows its users to send and read other users’ updates (otherwise known as “tweets”). Although Twitter has
Shannon Jones just received an e-mail message from an angel investor who has agreed to listen to her pitch her business idea. The investor said, “Your timing is good—I just happen to be sitting
Spend some time studying SunRun, the solar power company highlighted in the “Savvy Entrepreneurial Firm”feature. What is found in the “strategic resources” component of SunRun’s business
Start-ups typically have a variety of design needs including logo design, brochures, stationery, and business cards. Traditionally the most important design work, like a business’s logo, is either
It all started because two aspiring designers needed money to pay their rent. It was October 2007, and Brian Chesky and Joe Gebbia were sharing an apartment in San Francisco. There was an
Describe what is meant by the terms code of conduct and ethics training programs.What is their purpose?
Describe what a founders’ agreement is and why it’s important for a team of entrepreneurs to have one in place when launching a venture.
Why is it important for a firm’s founders to think carefully about the name they pick for their company?
The following statement appears in this chapter: “Choosing a legal entity (for an entrepreneurial venture) is not a one-time event.” Why isn’t choosing a legal entity a one-time event? What
What are the advantages and disadvantages of organizing a new firm as a sole proprietorship?Is a sole proprietorship an appropriate form of ownership for an aggressive entrepreneurial firm? Why or
Describe the differences between a general partnership and a limited partnership. Is a general partnership an appropriate form of ownership for two people pooling their resources to start a
What are the major advantages and disadvantages of a C corporation?How is a C corporation subject to double taxation?
What is the difference between preferred stock and common stock? Who gets paid first in the event of liquidation—the preferred stockholders or the common stockholders?
What are the differences between a public corporation, a closely held corporation, and a private corporation? Which type of corporation enjoys the highest level of liquidity for its stock?
What are stock options? Why would a corporation offer stock options to its employees?
What are the advantages and disadvantages of a limited liability company? Is a limited liability company an appropriate form of ownership for an aggressive entrepreneurial firm?
Assume that Shoaib Shaikh, the founder of XploSafe (the company focused on at the beginning of the chapter), has asked you to help him write a code of conduct for his firm. Given your understanding
Under what circumstances should ethical considerations be part of a company’s business plan? Should a company periodically measure its ethical performance? If so, what are the best ways for a
Tom Andersen owns an electronics firm in Wichita. He has told you that he has been suffering some cash flow problems, but has avoided having to borrow money by letting some of his bills run late and
Nancy Wills is purchasing a business named Niagara Laser Optics near Buffalo, New York. The business has had several brushes with the law during the past several years, dealing with claims of false
Assume you are opening a restaurant near the college or university you attend and have decided to name it Campus Burger, Wraps, Fries, and Shakes. Based on the location of the college or university,

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