Professional Documents
Culture Documents
1-Entrep. Keywords - 2nd
1-Entrep. Keywords - 2nd
Are unconventional, low-cost, and creative marketing techniques that allow a small
enterprise to realize a greater return from its marketing investment than larger rivals.
Do not require large amounts of money to be effective – just creativity.
Marketing mix
The marketing mix is a business tool used in marketing and by marketers. The marketing mix is
often crucial when determining a product or brand's offer, and is often associated with the four
Ps: price, product, promotion, and place.
The Product life cycle
1. Introductory stage
2. Growth and acceptance stage
3. Maturity and competition stage
4. Market saturation stage
5. Product decline stage
10 Myth of E- commerce
Myth 1: Online customers are easy to please.
Myth 2: If I launch a site, customers will flock to it.
Myth 3: Making money on the Web is easy.
Myth 4: Privacy is not an important issue.
Myth 5: The most important part of an e-commerce effort is technology.
Myth 6: I don’t need a strategy to sell online.
Myth 7: Customer service is not important.
Myth 8: Flashy Web sites are better than simple ones.
Myth 9: It’s what’s up front that counts.
Myth 10: It’s too late to get on the Web.
·
Search engine strategies
Natural (organic) Listings
Arise as a result of “spiders,” powerful programs search engines use to crawl around the
Web.
Paid (sponsored) Listings
Short text ads with links to the sponsoring company’s Web site.
Paid Inclusion
When a company pays a search engine for the right to submit either selected pages or its
entire Web site content for listing.
1. Market penetration
Sell the product with low price even with zero profit to gain market share
2. Skimming
Sell at high price for a certain segment then leave the market for others
3. Life Cycle Pricing
The products price starts at high price then decrease like TV`s or the opposite like
cars
Pricing techniques
1. Odd pricing (Phsychological pricing ) 199 or 19.99
2. Price lining ( Hyundai ) تفاوت بين الموديالت باسعار مختلفة او السندوتشات
3. Leader pricing ( Market attack low or zero profit ) احسن سعر
4. Discounts (Markdowns) قبل وبعد الخصم.. السعرين
5. Bundling (Combos or computer sets )
6. Optional-product pricing ( Cameras + Bag + Tripod )
7. Captive product pricing ( Gillett Fusion+ Razors )
8. Byproduct pricing ( Low value products : Used Banners ) البواقى و الفضل
9. Suggested retail prices ( Best buy for X $ ) سعر استرشادى
10.Follow the leader price
11.Below market pricing
12.Breakeven pricing
Steps to create financial plan
Developing alternatives is crucial for making good decisions. Although many factors will
influence the available alternatives, possible courses of action usually fall into these categories:
Not all of these categories will apply to every decision situation; however, they do represent
possible courses of action.
Step 4: Evaluate Alternatives
You need to evaluate possible courses of action, taking into consideration your life
situation, personal values, and current economic conditions.
Consequences of Choices. Every decision closes off alternatives.
For example, a decision to invest in stock may mean you cannot take a vacation. A decision
to go to school full time may mean you cannot work full time.
Opportunity cost is what you give up by making a choice. This cost, commonly referred to
as the trade-off of a decision, cannot always be measured in dollars.
Evaluating Risk : Uncertainty is a part of every decision.
In many financial decisions, identifying and evaluating risk is difficult. The best way to
consider risk is to gather information based on your experience and the experiences of
others and to use financial planning information sources.
Financial planning is a dynamic process that does not end when you take a particular action.
You need to regularly assess your financial decisions. Changing personal, social, and economic
factors may require more frequent assessments.
When life events affect your financial needs, this financial planning process will provide a vehicle
for adapting to those changes.
Regularly reviewing this decision-making process will help you make priority adjustments that
will bring your financial goals and activities in line with your current life situation.
How Lenders View Liquidity and Leverage
Liquidity Leverage
Low If chronic, this is often evidence This is a very conservative
of mismanagement. It is a sign position. With this kind of
that the owner has not planned for leverage, lenders are likely to
the company's working capital lend money to satisfy a
needs. In most businesses company's capital needs.
characterized by low liquidity, Owners in this position should
there is usually no financial plan. have no trouble borrowing
This situation is often associated money.
with last minute or "Friday night"
financing.
Average This is an indication of good If a company's leverage is
management. The company is comparable to that of other
using its current assets wisely and businesses of similar size in the
productively. Although they may same industry, lenders are
not be impressed, lenders feel comfortable making loans. The
comfortable making loans to company is not overburdened
companies with adequate with debt and is demonstrating
liquidity. its ability to use its resources to
grow.
High Some lenders look for this Businesses that carry excessive
because it indicates a most levels of debt scare most lenders
conservative company. However, off. Companies in this position
companies that constantly operate normally will have difficult time
this way usually are forgoing borrowing money unless they
growth opportunities because can show lenders good reasons
they are not making the most of for making loans. Owners of
their assets. these companies must be
prepared to sell lenders on their
ability to repay.
Location criteria for retail and service
1. Trade area size – the region from which a business can expect to draw customers
2. Retail compatibility
3. Degree of competition
4. Index of retail saturation (IRS)
5. Laws in the region
6. Transportation network
7. Physical and psychological barriers
8. Customer traffic
9. Adequate parking
10.Reputation
11.Visibility
Manufacturing locations
1. Foreign trade zones
2. Empowerment zones
3. Business incubators
Strategies for going global
1. Create a presence on the Web
2. Trade Intermediaries
- Domestic agencies that serve as distributors in foreign countries for companies of all sizes.
- Types of intermediaries:
3. Joint Ventures
- Domestic joint venture – two or more U.S. companies form an alliance for the purpose of
exporting their goods and services abroad.
- Foreign joint venture – a domestic firm forms an alliance with a company in the target
nation.
- Most important ingredient: Choosing the right partner.
- Use the joint venture as a learning process.
4. International Franchising
- Identify the country or countries that are best suited to the franchiser’s business concept.
- Generate leads for potential franchisees.
- Select quality candidates.
- Structure the franchise deal.
o Direct franchising
o Area development
o Master franchising
5. Exporting
- Significant impact: Small companies generate $1.1 billion each day in export sales!
International Barriers
1. Tariff – A tax a government imposes on goods and services imported into that country.
2. Nontariff barriers – Governments that protect domestic industries
3. Quotas - Limits on the amount of a product imported into a country.
4. Currency ???
5. Import or Export Problems
6. Embargo - Total ban on imports of certain products.
7. Dumping - Selling large quantities of a product in a foreign country below cost to gain market
share.
8. Smuggling????
9. Political barriers - Rules, regulations and political risks.
10.Business barriers – Different cost structures and business practices.
11.Cultural barriers - Differing languages, philosophies, traditions, and accepted practices.
Guidelines for success in international markets
1. Take time to learn before jumping in.
2. Seek out assistance from professionals.
3. Make yourself at home in all three of the world’s key markets - North America, Europe, and
Asia.
4. Appeal to the similarities in the various regions and recognize the differences in local
cultures.
5. Develop new products for the world market.
6. Learn foreign customs and languages.
7. “Glocalize” - make global decisions about products, markets, and management and allow
local employees to make tactical decisions.
8. Recruit and retain multicultural workers.
9. Train employees to think globally.
10. Hire local managers to staff foreign offices and branches.
11. Do whatever seems best wherever it seems best.
12. Consider using partners and joint ventures to break into foreign markets.
Leadership characteristics
1. Create a set of values and beliefs for employees and passionately pursue them.
2. Establish a culture of ethics.
3. Define and then constantly reinforce the vision they have for the company.
4. Respect and support their employees.
5. Set the example for their employees.
6. Create a climate of trust in the organization.
7. Build credibility with their employees.
8. Focus employees’ efforts on challenging and driving toward those goals.
9. Provide the resources employees need to achieve their goals.
10.Listen to their employees and Value the diversity of their workers.
11.Celebrate their workers’ successes who are willing to take risks.
12.Encourage creativity among their workers.
13.Maintain a sense of humor.
14.Create an environment in which people have the motivation, the training, and the freedom to
achieve the goals they have set.
15.Create a work climate that encourages maximum performance.
16.Become a catalyst for change when change is needed.
17.Keep their eyes on the horizon.
Create a job specification - written statement of the qualifications and characteristics needed for
a job, stated in terms such as education, skills, and experience.
Skill variety
Task identity
Task significance
Autonomy
Feedback
Flextime - an arrangement under which employees build their work schedules around a set of
“core hours” - such as 11 a.m. to 2 p.m. - but have flexibility about when they start and stop work.
Job sharing - a work arrangement in which two or more people share a single full-time job.
Flexplace - a work arrangement in which employees work at a place other than the traditional
office, such as a satellite branch closer to their homes or, in some cases, at home.
Telecommuting - an arrangement in which employees have employees working from their homes
use modern communications equipment to hook up to their workplaces.