978-1259912191 Chapter 1 Solutions Manual Part 2

Chapter 1: The 21st Century Entrepreneur

Discussion Questions:

1. When did Michael Dell start his business? Dell started his business when he

2. How did he start the business? Did he require capital? Did he have a

partner? Discuss the outcome of your research. He started building and

3. Why did he grow and expand his business model? He wanted to continue to

4. Discuss how his entrepreneurial skills and knowledge assisted him to

achieve the success that his company enjoys today. Discuss why he was

(LO 1-6)

It is standard practice for new entrepreneurial business owners to learn about ethics,

why they are important, and to incorporate sound ethical business practices into their

business decisions. Go to the following website

http://www.entrepreneur.com/humanresources/employeemanagementcolumnistdavidjav

itch/article56740.html and read the article “Respecting Your Business’s Ethics Policy”

and discuss the following questions:

Discussion Questions:

1. Why should new entrepreneurial owners teach their employees about business

ethics?

2. Discuss why organizational values and business ethics should be clearly defined.

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Chapter 1: The 21st Century Entrepreneur

3. Do you believe that it is a good idea for ethics to become part of the culture of a

new business? Why

Bonus Internet Exercise 1.3: Ethical Considerations for the New Entrepreneur

(LO 1-6) – Notes

Incorporating ethics is an important part of the new entrepreneurial business. Student

responses will vary.Critical Thinking Exercises

Critical Thinking Exercise 1.1: Venture Capital-backed Firms versus Entrepreneurial

Startups

(LO 1-6)

One major challenge for an entrepreneurial startup is to choose the type of firm that it

will be. For example, you learned that venture capital-backed firms include high-growth

or high-tech venture firms. In addition, the most common type of firm that entrepreneurs

consider is the new small business start-up.

Discussion Questions:

1. List the characteristics of a venture capital-backed firm and a new

entrepreneurial business start-up.

2. Summarize the key advantages and disadvantages for each business type.

3. Explain which business type you would choose for your new business. Explain

why.

Critical Thinking Exercise 1-1: Venture Capital-backed Firms versus Entrepreneurial

Startups

(LO 1-6) – Notes

Discussion Questions:

1. List the characteristics of a venture capital-backed firm and a new

entrepreneurial business start-up. Venture capital-backed firms are

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Chapter 1: The 21st Century Entrepreneur

2 Summarize the key advantages and disadvantages for each business type.

3 Explain which business type you would choose for your new business.

Explain why. Student responses will vary.

Critical Thinking Exercise 1.2: Planning Goals for the New Entrepreneurial Business

(LO 1-6)

Entrepreneurs plan to assure they achieve their business objectives. New

entrepreneurs differentiate between the two different business types to assure that they

establish the appropriate organization to enhance their organizational goals. To

illustrate, consider the different planning objectives and strategies that exist between

venture capital-backed firms and entrepreneurial business start-ups and discuss the

following questions.

1. Compare and contrast the planning goals between a venture capital-backed firms

and entrepreneurial business start-up.

2. List at least three planning goals that entrepreneurs consider for a new small

business.

3. What are the advantages of a well-thought-out business plan?

4. Who should develop the business plan? Why?

5. Why is a well-designed business plan important for the new business? Who does

it help?

Critical Thinking Exercise 1.2: Planning Goals for the New Entrepreneurial Business

(LO 1-6) – Notes

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Chapter 1: The 21st Century Entrepreneur

1. Compare and contrast the planning goals between a venture capital-backed

firms and entrepreneurial business start-up. The venture capital-backed firm

2. List at least three planning goals that entrepreneurs consider for a new

small business. 1. To serve as a guide in managing the business; 2. To provide

3. What are the advantages of a well-thought-out business plan? A good plan

4. Who should develop the business plan? Why? The entrepreneur should

5. Why is a well-designed business plan important for the new business? Who

does it help? A well-designed business plan serves as a guide to the owner. It

helps the owner, the investors and any funders including relatives understand the

business.

Critical Thinking Exercise 1.3: Stakeholders and the Entrepreneur

(LO 1-3)

New entrepreneurial business owners are innovative and they plan for effective and

efficient business operations. One important consideration is to determine who will be

involved with the performance of the new business. The authors in the text discussed

that stakeholders are important because they may impact the current and future

success of the business. Consider the impact that stakeholders have on the business.

Discussion Questions:

1. Define a stakeholder and summarize why stakeholders are important to a new

business owner.

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Chapter 1: The 21st Century Entrepreneur

2. List at least ways how stakeholders impact an entrepreneurial business.

3. Why are their relationships critical to the success of the new business?

4. Who would you consider to be stakeholders for your new small business? Explain w

Critical Thinking Exercise 1.3: Stakeholders and the Entrepreneur

(LO 1-3) – Notes

1. Define a stakeholder and summarize why they are important to a new

business owner. A stakeholder is an individual or an organization that impacts

2. List at least five ways stakeholders impact the business. Suppliers are

3. Why are the relationships of stakeholders critical to the success of the new

business? A business cannot survive without suppliers since there would not be

4. Who would you consider to be stakeholders for your new small business?

Explain why. Student responses will vary.

Bonus Cases

Bonus Case 1.1: New Entrepreneurs and Unemployment Issues in the United States

(LO 1-1, 1-2, 1-3. 1-4, 1-5, 1-6)

During a period around October 2009, there were reports that revealed a record number

of unemployed individuals in the United States. For example, according to a recent

News Release by the Bureau of Labor Statistics (BLS)i, “Since the start of the recession

in December 2007, the number of unemployed persons has increased by 7.6 million to

15.1 million, and the unemployment rate has doubled to 9.8 percent”. Many businesses

downsized and individuals were unemployed. As a result, there was limited job

availability and many individuals remained unemployed.

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Chapter 1: The 21st Century Entrepreneur

Entrepreneurship is a popular employment alternative for many individuals in the United

States and abroad. The advantages of self-employment include, but are not limited to,

freedom, lack of corporate politics, and being one’s own boss. Potential entrepreneurs

assess their external environment to discover needs that they can accommodate with

their savvy entrepreneurial business ideas.

Typically, potential entrepreneurs have traits that are creative and innovative. They use

their intelligence to create new small businesses that fill needs in the community; and

they also enhance the economy. Individuals can establish businesses that implement

positive social change in their communities.

Discussion Questions:

1. What suggestions do you have for the United States Government and individual

citizens in the United States to resolve unemployment or underemployment in the

United States?

2. Discuss what individuals can do to decrease the unemployment rate in the

United States.

3. If you were the President of the United States, what actions would you take to

resolve the unemployment issues in the United States?

Bonus Case 1.1: New Entrepreneurs and Unemployment Issues in the United States

(LO 1-1, 1-2, 1-3. 1-4, 1-5, 1-6) – Notes

Student responses will vary.

Bonus Case 1.2: Bill Gates: The Microsoft Genius

(LO 1-1)

Bill Gates is known as the Chairman of Microsoft Corporation. He started out as an

entrepreneur and grew his business into a successful corporate enterprise. Many

individuals establish their businesses because they have a hobby, pursue a specific

business venture, or want to become self employed. As a result, each individual new

entrepreneurial business has the potential to provide a business or service to satisfy

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Chapter 1: The 21st Century Entrepreneur

clients. Finally, entrepreneurs strive to enhance their community and implement positive

change. Some individuals might wonder if their success is based on luck or possibly

fate.

Throughout Chapter One, the authors explored who entrepreneurs are and what they

do to establish businesses as a foundation for success. In addition, they strive to

provide a product or service that is needed in the marketplace. Bill Gates successfully

implemented a product that contributed to the greater good of society. Find information

about Bill Gates and Microsoft on the web and answer the following questions.

Discussion Questions:

1. In your own words, explain why you believe Bill Gates is a successful

entrepreneur. Discuss whether or not your reasoning is based on his income or

the creative products he offers to contribute to technology.

2. Summarize how Bill Gates initiated his company. Did he have a partner?

3. List the specific contributions that his products made on our society. Explain the

reasoning behind your answers.

4. Describe the specific contributions that Bill Gates made in order to implement

positive change in society. What do you think motivates him to contribute to

society?

5. Do you believe that Bill Gates is a genius? Describe how the world might be

today without Microsoft products. Provide specific answers.

Bonus Case 1-2: Bill Gates: The Microsoft Genius

(LO 1-1) – Notes

Discussion Questions:

1. In your own words, explain why you believe Bill Gates is a successful

entrepreneur. Discuss whether or not your reasoning is based on his

income or the creative products he offers to contribute to technology.

2. Summarize how Bill Gates initiated his company. Did he have a partner?

3. List the specific contributions that their products made on our society.

Explain your reasoning behind your answers. Microsoft launched windows

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Chapter 1: The 21st Century Entrepreneur

4. Describe the specific financial contributions that Bill Gates makes to

implement positive change in society. What do you think motivates him to

contribute to society? Gates and his wife established the William H Gates

5. Do you believe that Bill Gates is a genius? Describe how the world might

be today without Microsoft products. Provide specific answers. Gates is

(LO 1-1, 1-2, 1-3. 1-4, 1-5, 1-6)

Dr. Thomas W. Mastaglio is the President and CEO of MYMIC

LLC. MYMIC is a high technology start up specializing in

modeling, simulation and visualization solutions to support

training, military analysis, experimentation and business strategy

evaluations located in Portsmouth, Virginia. Dr. Mastaglio served

as the Executive Director of the Virginia Modeling, Analysis and

Simulation Center from November 1996 to June 2000. In that capacity he established

a consortium of industry, academia and government recruiting over 120 members and a

workforce of over 50 individuals and generated $7.5M in revenue. The Center is one of

the most successful endeavors of its kind achieving, a strong reputation both locally and

nationally.

Dr. Mastaglio is a 1969 graduate of the U.S. Military Academy. He retired from the Army

in 1991 and has worked in the defense industry as a senior engineer, program manager,

and scientist. He worked for IBM as Training Effectiveness Advocate for the Close

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Chapter 1: The 21st Century Entrepreneur

Combat Tactical Trainer development and as the Deputy Program Manager for

Lockheed Martin’s and Warfighter Simulation 2000. Prior to his experience in the

defense industry Dr. Mastaglio established and ran his own consulting firm from 1991 to

1993.

Dr. Mastaglio earned a Doctor of Philosophy degree from the University of Colorado in

Computer and Cognitive Science in 1990. His research interests include the application

of artificial intelligence to improving human-computer interaction and learning, usability

engineering, cognitive modeling, the development of large-scale enterprise models and

simulations, and the educational requirements for modeling and simulation. He is a

Research Professor in Electrical and Computer Engineering and an Adjunct Professor

of Psychology at Old Dominion University. He also holds an adjunct faculty appointment

in Computer Science at Norfolk State University. Dr. Mastaglio has served as a member

of the Army Science Board, a technology consultant to the Department of Defense and

member of Commonwealth of Virginia Joint Commission On Technology and Science.

He and his company, MYMIC LLC, are active in community and regional organizations

committed to technology and economic development. They are active members and

sponsors of the activities of the Hampton Roads Technology Council and have been

nominated for the Hampton Roads High Tech Emerging Company Award on three

occasions. They belong to the Emergency Management Training, Analysis and

Simulation Center, the Virginia Modeling, Analysis, and Simulation Center, and are

assisting the Hampton Roads Partnership to develop a regional strategy for Modeling

and Simulation.

Dr. Roger Smith recently asked Dr. Mastaglio if he could give business advice to a

college student and fit that advice on the back of a business card. Dr. Mastaglio

responded, “As in school, in business there are 3 “R’s” which are the key to success:

relationships, results and reputation!” (Smith 2009)ii.

1. Discuss Dr. Mastalio’s response to Dr. Smith’s question related to the advice he

could give someone on the back of a business card. What is your response to his

statement about the key to success?

2. Discuss how Dr. Mastaglio’s motivation and creativity enhanced his success.

3. Summarize how his organization contributes to society

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Bonus Case 1.3: MYMIC, LLC: A Dynamic Approach to Entrepreneurship

(LO 1-1, 1-2, 1-3, 1-4, 1-5, 1-6) – Notes

1. Discuss Dr. Mastalio’s response to Dr. Smith’s question related to the

advice he could give someone on the back of a business card. What is your

response to his statement about the key to success? Student responses will

2. Discuss how Dr. Mastaglio’s motivation and creativity enhanced his

success. Without his creativity and motivation, Dr. Mastaglio would not have

3. Summarize how his organization contributes to society. The organization’s

Endnotes

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i USAID August, 2013 :

http://www.usaid.gov/what-we-do/economic-growth-and-trade/microenterprise-development

Retrieved on September 25, 2014

ii Dr. Tom Mastaglio, President MYMIC LLC, p 241 in ADVICE written on the back of a business

card, Dr. Roger D. Smith, Modelbenders Press, 2009