The general environment is more narrowly defined than the industry environment
because it focuses on specific segments, such as those relating to the economy,
sociocultural trends, and geopolitical developments.
Today, companies tend to focus on developed countries as they search out international
markets.
The possibility of being sued makes employers reluctant to give a full and candid report
on former employees.
One problem with motivating salespeople is that the entrepreneur’s goals and a
salesperson’s goals may differ.
Private employment agencies administer the various state unemployment insurance
programs.
The desire for continuity of a business might be one reason to organize as a corporation
rather than as a partnership.
Entrepreneurs should think very carefully about their motives for exiting a business and
what they plan to do after the harvest.
Small and entrepreneurial firms cannot hold their own or gain an edge over successful,
more powerful businesses.
Codes of ethics should not only express the principles that members of the firm should
follow but also give examples of situations likely to be faced.
You Make the Call – Situation 4
When Amy Clark was growing up, her father owned several service stations, where she
pumped gas and developed some knowledge of station operation. When she graduated
from high school, Amy entered business college and trained to be a secretary. She
married soon after school, and her husband entered the service station business.
Recently, Amy decided that she would like to operate a station of her own. A station
with three service bays and facilities for minor auto repair is available, but she would
have to persuade the oil companythe same one that franchises her husband’s stationthat
she is qualified to have a franchise. Clark has expressed her philosophy as follows:
“I”m a person who likes to get things done. I like to keep excelling and to do bigger and
better things than I”ve ever done before. I guess that’s why I”d like to have a station of
my own.”
Question 1 Evaluate Amy Clark’s qualifications for the proposed venture. Should the
oil company accept her as a dealer?
Question 2 As a female entrepreneur, what problems should she anticipate in
relationships with customers, employees, the franchising oil company, and her family?
You Make the CallSituation 2
Lynn Cooper owns and operates BFW, Inc., in Lexington, Kentucky, where she
produces fiber-optic lights and headgear-mounted video cameras used for medical
exams and surgery. She sees exporting as a means of increasing sales, but with just one
employee, she wonders how best to handle the additional marketing and distribution
exporting would require.
Question 1 What sources of information would be helpful to Cooper?
Question 2 Would you recommend that she consider using an international distributor?
If so, what characteristics should she look for in a distributor?
Question 3 Do you think exporting is a feasible alternative for Cooper at this time?
Why or why not?
Use of the accounting return on investment technique answers the question, “How long
will it take to recover the original investment outlay?”
The Internet is a prime venue for fraudulent activities.
Delivery terms specify which party pays the freight costs, selects carriers, bears the risk
of damage, and selects the modes of transport.
A double-entry system of accounting is basically a checkbook system of receipts and
disbursements.
Around 5% of the business plans reviewed by venture capitalists are funded.
If the franchisor insists, it is best to sign a franchise contract quickly before other
entrepreneurs take advantage of the opportunity.