978-0134741086 Chapter 5 Part 2

Chapter 5, Page 89

3. Using the ideas you generated in question 2, create a two-page proposal for

establishing a business plan competition at your school. (LO 4) (AACSB:

1. Why do many small businesses fail when a big discount retailer such as Wal-

Mart enters their market? (LO 7)

2. Work with a team of your classmates to identify a local small business that

competes with a bigger competitor. Which of the strategies described here has the

small company employed to become a stronger competitor? What other strategies

would you recommend to the owner of this business?

3. Based on your work in question 2, develop a one-page report summarizing your

Chapter 5, Page 90

1. Visit The Escape Game’s Web site at https://nashvilleescapegame.com to learn

more about the company. Work with a team of your classmates to identify the

2. What opportunities and threats does The Escape Game face? (LO 7) (AACSB:

Application of knowledge)

3. Identify The Escape Game’s major competitors. What are their strengths and

weaknesses? (LO 7) (AACSB: Application of knowledge)

4. Write a short memo (two pages maximum) to The Escape Game partners and

their management team, describing your strategic recommendations for helping The

Escape Game gain and maintain a competitive advantage in their industry and

realize their goals to grow the company to become a national industry leader. (LO 7)

(AACSB: Application of knowledge)

Chapter 5, Page 91

1. Which of the strategies discussed in this chapter are these companies using?

Explain. (LO 7) (AACSB: Application of knowledge)

2. What competitive advantages does the successful execution of subscription-

based strategies produce for these businesses? (LO 7) (AACSB: Application of

3. What are the risks associated with these companies’ strategies? (LO 7)

(AACSB: Application of knowledge)

Part 4: Chapter Discussion Questions

5-1. Why should an entrepreneur develop a business plan? (LO 2) (AACSB:

Reflective thinking)

5-2. Why do entrepreneurs who are not seeking external financing need to prepare

5-3. Describe the major components of a business plan. (LO 2) (AACSB: Reflective

thinking)

Chapter 5, Page 93

5-4. How can an entrepreneur seeking funds to launch a business convince potential

lenders and investors that a market for the product or service really does exist?

(LO 3) (AACSB: Reflective thinking)

5-5. How do lenders and investors use the 5 Cs of credit when evaluating a request

5-6. How would you prepare to make a formal presentation of your business plan to

a venture capital forum? (LO 4) (AACSB: Analytical thinking)

5-7. Why is strategic planning important to a small company? (LO 5) (AACSB:

Chapter 5, Page 94

5-9. What are the steps in the strategic management process? (LO 7) (AACSB:

Reflective thinking)

5-10. A common criticism of mission statements is that entrepreneurs spend too

much time crafting them and not enough time implementing them in the business.

5-11. Discuss the importance of what you do with a mission statement. (LO 7)

5-12. What are strengths, weaknesses, opportunities, and threats? (LO 7) (AACSB:

Reflective thinking)

Chapter 5, Page 95

5-13. Give examples of strengths, weaknesses, opportunities, and threats. (LO 7)

(AACSB: Analytical thinking)

5-14. Explain the characteristics of effective objectives. (LO 7) (AACSB: Reflective

thinking)

5-15. Why is setting objectives important? (LO 7) (AACSB: Reflective thinking)

5-16. What are business strategies? (LO 7) (AACSB: Reflective thinking)

5-17. Describe the three basic strategies available to small companies. (LO 7)

(AACSB: Reflective thinking)

Chapter 5, Page 96

5-18. Under what conditions is each of the three basic strategies most successful?

(LO 7) (AACSB: Reflective thinking)

5-19. Explain how a company can gain a competitive advantage using each of the

three strategies described in this chapter: cost leadership, differentiation, and focus.

(LO 7) (AACSB: Reflective thinking)

5-20. Give an example of a company that is using each of the three strategies. (LO

5-21. How is the controlling process related to the planning process? (LO 7)

(AACSB: Reflective Thinking)

Chapter 5, Page 97

5-22. What is a dashboard? (LO 7) (AACSB: Reflective thinking)

5-23. What value does a dashboard offer entrepreneurs who are evaluating the

success of their current strategies? (LO 7) (AACSB: Reflective thinking)

Part 5: Case Studies

The following text case may be used for lecture and assignments for topics presented in

this chapter.

 Case 1: United Apparel Liquidators

 Case 2: Bark & Co.

 Case 4: ThinkImpact

 Case 10: Nuts.com

Part 6: Online Videos and Podcasts

These online videos may enhance class discussion and provide additional insight for the

chapter topics.

 Importance of a Business Plan to Raise Money 1:37 minutes

http://www.youtube.com/watch?v=-xLFZTxkgmM&NR=1

 How to Write a Business Plan 9:02 minutes

http://www.youtube.com/watch?v=x0y3VgjhGw0

Chapter 5, Page 98

 SWOT Analysis: How to Do One for Your Organization 5:21 minutes

http://www.youtube.com/watch?v=GNXYI10Po6A

 Competitor Analysis for Websites 5:37 minutes

http://www.youtube.com/watch?v=rK1tED8XpYc

 How to Set SMART Goals 4:43 minutes

Links to additional online resources are available on the companion Web site at