Chapter 3
- 1. CHAPTER 3 DISCUSSION QUESTIONS 1) Define intellectual capital & explain its 3 components. 2) Define competitive advantage & explain Whole Foods’ strategy. 3) Explain the 4 aspects of their businesses that entrepreneurs should examine to define their companies’ competitive advantages. 4) What are the 3 ways that a clearly defined vision helps a company? 5) What is a mission statement & what are its main elements? 6) Look up FPU's mission statement. How well do we follow it? 7) Define strengths, weaknesses, opportunities, & threats. 8) What are "key success factors?” 9) Explain the difference between: direct competitors, significant competitors, & indirect competitors. 10) What is the difference between goals & objectives? 11) Explain the 3 strategic options.
- 2. INTELLECTUAL CAPITAL -ALL RESOURCES THAT DETERMINE THE VALUE & THE COMPETITIVENESS OF A COMPANY.
- 3. 3 COMPONENTS OF INTELLECTUAL CAPITAL 1) HUMAN CAPITAL -TALENT & SKILLS OF A COMPANY’S EMPLOYEES. 2) STRUCTURAL CAPITAL -ACCUMULATED KNOWLEDGE & EXPERIENCE THAT A COMPANY POSSESSES. 3) CUSTOMER CAPITAL -REPUTATION & RELATIONSHIPS THAT A COMPANY BUILDS OVER TIME WITH ITS CUSTOMERS.
- 4. COMPETITIVE ADVANTAGE -”THE FACTORS BY WHICH A COMPANY SETS ITSELF APART FROM ITS COMPETITORS.” -OCCURS WHEN AN ORGANIZATION ACQUIRES OR DEVELOPS AN ATTRIBUTE(S) THAT ALLOWS IT TO OUTPERFORM ITS COMPETITORS. -ENABLES AN ORGANIZATION TO CREATE SUPERIOR VALUE FOR ITS CUSTOMERS & SUPERIOR PROFITS FOR ITSELF. -2 BASIC TYPES: 1) COST ADVANTAGE 2) DIFFERENTIATION ADVANTAGE
- 5. EXAMPLES OF COMPETITIVE ADVANTAGE
- 6. EMPLOYEES
- 7. CONVENIENCE
- 8. LOCATION
- 10. QUALITY
- 11. ENTREPRENEURS SHOULD EXAMINE 4 ASPECTS OF THEIR BUSINESSES TO DEFINE THEIR COMPANIE’S COMPETITIVE ADVANTAGES
- 12. 1) PRODUCTS THEY SELL -WHAT IS UNIQUE ABOUT THE PRODUCTS? -DO THEY SAVE CUSTOMERS TIME OR $? -ARE THEY MORE RELIABLE OR DEPENDABLE THAN COMPETITORS?
- 13. 2) SERVICE THEY PROVIDE -WHAT SERVICES DOES THE COMPANY PROVIDE TO DELIVER ADDED VALUE & A SUPERIOR SHOPPING EXPERIENCE FOR CUSTOMERS?
- 14. 3) PRICING THEY OFFER -LOW PRICE GIVES SOME CUSTOMERS AN INCENTIVE TO BUY. -LOWEST PRICE IS NOT ALWAYS BEST WAY TO CREATE A UNIQUE IMAGE.
- 15. 4) WAY THEY SELL -CUSTOMERS WANT TO BE ABLE TO CONDUCT BUSINESS WHEN THEY WANT TO.
- 16. VISION ”THE RESULT OF A DREAM THAT DOES NOT EXIST YET & THE ABILITY TO PAINT A PICTURE OF THAT DREAM FOR EVERYONE TO SEE.” -ANSWERS THE QUESTION: -WHERE ARE WE GOING? -BEING “FUTURE-FOCUSED” TOUCHES EVERYONE ASSOCIATED WITH THE COMPANY: -EMPLOYEES -CUSTOMERS -COMMUNITY
- 17. HOW A VISION HELPS A COMPANY 1) VISION PROVIDES DIRECTION -FOCUSES EVERYONE’S ATTENTION ON THE FUTURE & HOW TO GET THERE. 2) VISION DETERMINES DECISIONS -INFLUENCES ALL DECISIONS (BIG & SMALL) THAT EVERYONE (OWNERS, MANAGERS, EMPLOYEES) MAKE. 3) VISION MOTIVATES PEOPLE -EXCITES & IGNITES PEOPLE INTO ACTION. 4) VISION ALLOWS FOR PERSERVERANCE IN THE FACE OF ADVERSITY -ENABLES YOUNG COMPANIES TO OVERCOME HARDSHIPS & OBSTACLES.
- 18. MISSION STATEMENT ”AN ENDURING DECLARATION OF A COMPANY’S PURPOSE.” -ESTABLISHES THE PURPOSE OF THE BUSINESS & GIVES THE COMPANY A SENSE OF DIRECTION. -ADDRESSES THE QUESTION: -WHAT BUSINESS AM I IN? -DOES NOT NEED TO BE LENGTHY TO BE EFFECTIVE.
- 19. KEY ELEMENTS OF A MISSION STATEMENT 1) PURPOSE -WHAT ARE WE IN BUSINESS TO ACCOMPLISH? 2) BUSINESS -HOW ARE WE GOING TO ACCOMPLISH OUR PUSPOSE? 3) VALUES -WHAT PRINCIPLES & BELIEFS FORM THE FOUNDATION OF THE WAY WE DO BUSINESS?
- 20. CAN YOU GUESS WHAT COMPANIES THE FOLLOWING MISSION STATEMENTS BELONG TO?
- 21. “……… embraces an education that matters: one that achieves academic success through the integration of liberal arts and professional programs. Our community of educators and learners creates an environment that fosters intellectual curiosity and encourages experiential and applied learning. A ….. experience enables each student to discover and fulfill his or her own unique potential. We prepare students to become confident, knowledgeable individuals and leaders of conscience.
- 22. "To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete."
- 23. "To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."
- 24. “…seeks to be the leading brand of quality lifestyle accessories offering classic, modern American styling.”
- 25. ““Help people save money so they can live better."
- 26. “To give people the power to share and make the world more open and connected.”
- 27. “…is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.”