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Questions and Answers of
Management Leadership
How should a market entry strategy be determined? What factors should be considered?
What is the value of defining a market niche?
Suppose you are introducing a new type of exercise equipment to the fitness industry. What would your strategy for research with the customer look like?
Given the definitions of direct and indirect competitors, provide an example of each for a product of your choosing.
How has the environment for product development changed in the last decade, and what does this mean to entrepreneurs starting new businesses?
What are the principal reasons why new products fail?
Suppose you are going to develop and market a new device for tracking calories consumed during the day. What will your product development strategy be, and why?
In what ways should you protect an invention from the time of its earliest conception?
For what kinds of businesses is starting as a solo entrepreneur sufficient? Are there advantages to starting even these types of businesses with a team?
What strategy should an entrepreneur employ when selecting a personal board, an advisory board, or a board of directors?
How might the need for an attorney differ for a service business and a high technology company?
What are the types of resources that entrepreneurs need to gather to start a new venture?
Why is the cash flow statement the most important statement for the entrepreneur?
What are the primary differences between an income statement and a cash flow statement or cash budget?
What are some ways to forecast sales effectively for a retail business? For a manufacturer? For a service business?
What are the three categories of funds in the cash needs assessment, and how are they used to calculate how much money is needed to start the business?
What is the role of the balance sheet in the business plan?
How are financial ratios used to gauge the financial health of the business?
Interview a banker and an accountant about the key financial statements that entrepreneurs need to understand to run their businesses. Ask about the biggest mistakes business owners make in
Why is the business planning process an excellent exercise for any entrepreneur contemplating the start-up of a new venture?
What is the difference between a feasibility study and a business plan?
Why might it be better to start the business after completing the feasibility study and before completing a business plan?
How might the business plan change if the reader were an investor versus a potential management hire?
What are three key elements of a successful business plan pitch?
Assuming that you were running a successful consulting practice as a sole proprietorship, what would induce you to change the legal form to a corporation?
Why would you choose an LLC form over a partnership or an S-corporation?
What kinds of businesses are well suited to the nonprofit legal structure?
What key factors determine the strategic plan for the legal organization of the business?
What are the advantages and the disadvantages of a virtual company?
What is the purpose of the imaginary tour of the business?
Which factors important in choosing a retail site would not be relevant to a manufacturing site—and vice versa?
What are the advantages and disadvantages of using stock as compensation and incentives?
How can the entrepreneur improve the chances of choosing the best job candidate?
List three alternatives to equity incentives for key managers.
Why is it important to consider your manufacturing plan in the earliest stages of a new venture?
Suppose you had a new advertising firm. How could you use just-in-time scheduling to create more efficiencies in your operations?
What are some of the key factors that must be considered when setting up a quality control system?
Characterize the critical aspects of an effective supply chain for any business.
What are the differences between an entrepreneurial marketing strategy and a large corporation’s marketing strategy?
Is it important to stick with your marketing plan even if it isn’t returning immediate results? Why or why not?
What role should new media play in your marketing strategy?
What are the critical factors that should be considered in building a brand?
How can personal selling be used to build long-term customer relationships?
How does bootstrap financing fit into the strategic plan of a new venture?
What is the role of angels as a source of new venture funding?
At what stage of venture development do venture capitalists typically become involved, and why?
Why are commercial banks not usually a reliable source of new venture financing?
What are the benefits of a private offering as compared to a public offering?
At what stage of venture development do venture capitalists typically become involved, and why? Discuss.
For what kind of business would soliciting private venture capital be a logical financial strategy for growth? Why?
How can strategic alliances be used to help grow the business?
What are some things that an entrepreneur should do to prepare for a public offering before the year of “going public”?
In approaching a venture capitalist, how can the entrepreneurial team deal from a position of strength?
What are the key components in valuing a new or growing venture?
What are four characteristics of high-growth companies?
How can both market and management factors affect the growth of a new venture?
What advantages do intensive growth strategies have over integrative and diversification strategies?
Why is it important to start a growth-oriented business with a plan for globalization from the beginning?
How do foreign agents, distributors, and export trading companies differ in the services they provide?
Contingency planning is not foolproof. How can an entrepreneur ensure that the contingency plans he or she has devised will keep the business on the path to its goals?
How can the entrepreneur prepare for potential product liability litigation, both to minimize the chance that such lawsuits will be brought and to give the company the best chance of prevailing
How can an entrepreneur prepare for a potential decline in sales?
Suppose an entrepreneur has built a successful business over several years and now has the opportunity to start another business compatible with the current one. How can the entrepreneur leave the
If an entrepreneur’s business finds itself in trouble, what are the options available to the entrepreneur to attempt to remedy the situation?
Define the term supply chain management in your own words, and list its most important activities.
Can a small business like a local sandwich or bicycle shop benefit from practicing supply chain management? What should they concentrate on?
Describe and draw a supply chain for a bicycle repair shop.
What roles do collaboration and trust play in the practice of supply chain management?
What are the four foundation elements of supply chain management? Describe some activities within each element.
What does the bullwhip effect refer to, and what causes it? How, then, would you try to reduce the bullwhip effect?
What are the benefits of supply chain management?
Can nonprofit, educational or government organizations benefit from supply chain management? How?
What does the term third-tier supplier mean? What about third-tier customer? What about the focal firm? Provide examples.
Could a firm have more than one supply chain? Explain.
When did the idea and term supply chain management first begin to be thought about and discussed?
Do you think supply chain management is simply the latest trend in management thinking, and will die out in a few years? Why or why not?
Is the use of a large number of suppliers a good idea? Why?
Do you think the proper way to choose a supplier is to always find the one that will give the lowest price? When might this not be a good idea?
Why don’t firms just buy out their suppliers and industrial customers, forming conglomerates, instead of practicing supply chain management?
What is the difference between an MRP system and an ERP system?
What role do information systems play in supply chain management? Give some examples.
Briefly describe the terms lean and Six Sigma.
What are 3PLs and what role do they play in SCM?
What does process integration mean, and what does this have to do with SCM?
Describe the steps in a traditional manual purchasing system.
Describe the e-procurement system and its advantages over the manual system. Are there any disadvantages to the electronic system? Do you think the e-procurement system will ultimately replace the
How can purchasing help to improve the competitive edge of an organization?
What is the profit-leverage effect of purchasing? What is the return-on-assets effect of purchasing?
How does a merchant differ from an industrial buyer?
Describe the purpose of a material requisition, a purchase order, a request for quotation and a request for proposal. Does the material requisition serve the same purpose as the purchase order?
Why are small value purchase orders problematic? How can purchasing more effectively deal with this problem?
Should unit price be used as the sole criterion for selecting suppliers? Why or why not?
Explain backward vertical integration. What are the advantages of outsourcing compared to backward vertical integration?
When should a firm outsource instead of making the items in-house?
What factors should be considered while choosing suppliers?
What are the reasons to use a single supplier? Is this the most efficient way to purchase materials in general?
Describe centralized and decentralized purchasing and their advantages.
Describe how the hybrid purchasing organization works.
Describe how blanket orders and blanket order releases can be used to manage the procurement system of a business that owns a dozen large restaurants in a city.
How does public procurement differ from corporate purchasing?
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