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Copyright © 2019 Pearson Education, Inc.
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
Copyright © 2019 Pearson Education, Inc.
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)
Copyright © 2019 Pearson Education, Inc.
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)
Copyright © 2019 Pearson Education, Inc.
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:
Copyright © 2019 Pearson Education, Inc.
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)
Copyright © 2019 Pearson Education, Inc.
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)
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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)
Copyright © 2019 Pearson Education, Inc.
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
Copyright © 2019 Pearson Education, Inc.
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
