Entrepren1314-05-01-12.doc
ENTREPRENEURSHIP Spring 2012 Dr. Soon Paik
Chapter 13 Growth Strategies(05/01/2012)
1. Domestic Growth Strategies
(1) types Product
Existing New
Market Existing
New
(2) overcoming pressures
Pressures Overcoming strategies
1) financial
2) human
3) management
4) entrepreneurs’
2. Global Growth Strategies
1) exporting
2) non-equity
3) direct
4) entrepreneurial
3. Expansion Growth Strategies
1) franchising
2) joint ventures
3) acquisition
4) mergers
5) leveraged buyouts
Chapter 14 Ending Strategies
1. Chapter 11 Bankruptcy:
- reorganization
- succession
- selling
2. Chapter 13 Extension
3. Chapter 7 Liquidation
Entrepren01-01-25-12.doc
Entrepreneurship Dr. Soon Paik
Chapter 1. Entrepreneurship 1 (01/25/2012)
1. Definition
- Entrepreneur:
- Entrepreneurship:
- History: Early
Middle ages
17th c.
18th c.
19th & 20th c.
20th & 21st c.
2. Entrepreneurial Process
1) identify
2) develop
3) determine
4) manage
5) start-up
3. Role of Entrepreneurship in Economic Development
- 1750
- J. Schumpeter
- Bridging gap between science and marketplace
1) Gov. 2) Corp. 3) Individuals.
4. Entrepreneur’s Decision-Making
1) effectuation
2) cognitive
3) learning from
5. Entrepreneur’s Characteristics
1) education
2)age
3) work history
4) role model
5) moral support network
6) professional support network
7) male vs. female
8) minority
9) corporate entrepreneurship
6. Small Businesses
- 25.1 m(98.5%)
- contributions: + GDP
+ employment
+ new inventions
Entrepren02-02-01-12.doc
ENTREPRENEURSHIP Dr. Soon Paik
Chapter 2. Entrepreneurship 2: Creativity (02/01/2012))
* Creativity: (1) new ideas, (2) innovations
1. New Ideas
(1) Brains: left brain and right brain
(2) Sources of New Ideas: - consumers + production process + distributors
- R & D
- Federal and State
(3) Methods of Obtaining New Ideas
1) brainstorming
2) checklist
3) forced relationships
4) attribute listing
5) big-dream approach
2. Innovation
(1) types: 1) breakthrough I
2) technological I
3) ordinary I
- uniqueness
quantity
(2) Product Development Process
1) idea stage
2) concept
3) development
4) test marketing
5) commercialization
(3) Intellectual Properties
1) patents
2) trademarks
3) copyrights
4) trade secrets
5) licensing
6) product safety/liability
7) insurance
8) Sarbanes-Oxley Act
9) contracts
** Carl Goldberg: dog seatbelt
** Goodyear: rubber + sulfa + lead
** Pirates: software
movies
Entrepren03-02-08-12.doc
ENTREPRENEURSHIP Dr. Soon Paik
Chapter 3. Business Plan 1: What, Who, Perspectives (02/08/2012)
1. What - business plan
- two questions: 1) where
2) how
2. Who - entrepreneurs
- consultants
3. Perspectives: 1) entrepreneur
2) customers
3) investors
4. Twelve Elements
(1) introduction: 1) name/address, needs
2) elevator pitch
(2) executive summary: 1) who
2) what
3) how
(3) vision/mission and goals/objectives:
1) vision
2) mission
3) goals
4) objectives
(4) environment/industry analysis:
- 3 tests: 1) reality
2) competitiveness
3) value
(5) venture description: - goods&services, size, history
(6) organization: - ownership forms (private, partner, corporation)
(7) marketing: - marketing plan (price, distribution, promotion)
(8) financing: 1) forecasted sales/expenses,
2) forecasted cash flows,
3) forecasted balance sheets
(9) production: - price vs. quality
(10) operation: - manufacturing, shipping, inventory, custom services
(11) risk assessment: 1) potential risks
3) prevention/dissolution of risks
(12) appendix: 1) resume
2) leases/contracts/agreements
3) market research data
Entrepren04-02-15-12.doc
ENTREPRENEURSHIP Dr. Soon Paik
Chapter 4 Organizing 1: Ownership (02/15/2012)
* Types: Number Sales Net Income
Sole
Partnership
Corporation
1. Characteristics of 3 Forms
Sole Partnership Corporation
1) ownership
2) liability
3) cost of org
4) continuity of bus
5) transferability of interest
6) capital request
7) management control
8) distribution of profit/loss
9) raising capital
2. Tax Issues of 3 Forms
1) sole
2) partnership
3) corporation
4) LLC/S
3. Designing
- 5 areas: 1) structure
2) goals/objectives
3) rewards
4) selection
5) training
Entrepren05-02-22-12.doc
ENTREPRENEURSHIP Dr. Soon Paik
Chapter 5 Organizing 2: Franchising and Buy-Out (02/22/2012)
I. Franchising
1. Concept and Growth
- concept
- growth
2. Types 1) trade name: car dealers, Western Auto,
2) product distribution: Exxon, Coca-Cola, McDonald, Safeway,
3) services: personnel agencies, income tax preparation, real estates,
3. Advantages 1) access to bus system
2) get management trainings
3) use national advertising programs
4) use financing arrangements
5) use proven bus-formats
4. Disadvantages 1) high fees/profit sharing
2) limited product line
3) market saturation
5. Laws: 1971
1979
6. Trends - international
- intercept
- co-branding
- baby-boomers
II. Buy-Out
1. Advantages: successful bus, good location, good financing, bargain
2. Disadvantages: losing bus, bad location, bad financing, over-priced
3. How to Buy?
1st step: self-analysis: interests
abilities and skills
2nd step: list: brokers, banks, accountants, lawyers,
Newspapers/trade journals, trade ass, www.
3rd step: investigating: 5questions: Why to sell? What firm’s assets?
What market potential? How financial? What legal?
4th step: evaluating: (1) balance sheet
(2) income statement
(3) market
5th step: negotiating: 5Ps: 1) preparation, 2) persuasiveness, 3) poise,
4) patience, 5) persistence
Bargain zone
Entrepren06-02-29-12.doc
ENTREPRENEURSHIP Dr. Soon Paik
Chapter 6 Marketing 1 (02/29/2012)
* marketing plan: 3 questions: 1. where has been?
2. where to go?
3. how to get there?
I. Situation Analysis
1. upside-down pyramid approach
Situations
Goals/objectives
2. survey methods
Costs speed depth response rate
Telephone
Personal
Internet
II. Goals/Objectives
1. target marketing
- cases: Chico’s
DLNY
Pulte
- guerrilla marketing: 1) find
2) do
3) concentrate
2. market segmentation
- by customers’ characteristics
1) geographic
2) demographic
3) psychographic
- by customers’ buying patterns
1) products
2) usage
3) time
Entrepren07-03-07-12.doc
ENTREPRENEURSHIP Dr. Soon Paik
Chapter 7 Marketing 2 (03/07/2012)
III. Strategies
1. marketing mix: 4 elements: (1) G&S, (2) price, (3) distribution, (4) promotion
(1) goods/services
- product cycle
(2) price
- 3 factors: 1) costs
2) markups
3) competitive
- price/quality strategies: quality
Low high
Price high
low
(3) distribution
- directness:
- number of channels
(4) promotion
- market communications
1) advertising
+ expenditure by medium
TV
Direct mail
Newspaper
Radio
2) public relations
3) sponsorship
4) personal selling
2. budgeting: - percentages
- hiring
- saving
3. implementing/monitoring
- implementing:
- monitoring:
Entrepren08-03-21-12.doc
ENTREPRENEURSHIP Dr. Soon Paik
Chapter 8 Marketing 3: E-Commerce and Global Marketing (03/21/2012)
I. E-Commerce
- on-line purchases
- strategies
(1) market: 1) who are customers?
2) what customers want?
(2) domain
(3) search
(4) order
(5) privacy
(6) security
2. Global Marketing
- country screening matrix
Market factors country 1 country 2 country 3 ….
- strategies: 1) world
2) trade
3) joint
4) foreign
5) international
6) counter
7) exprting
8) international
- barriers to international trade
1) domestic
2) international: [1] tariff
[2] non-tariff
3) political
- international trade agreements
+ GATT
+ WTO
+ NAFTA
+ KORUSFTA
Entrepren09-04-04-12.doc
ENTREPRENEURSHIP Dr. Soon Paik
Chapter 9 Financing 1: Financial Plan (04/04/2012)
1. Projected(Pro Forma) Financial Statements
- balance sheet:
- income statement:
- cash flow:
SAM’S BALANCE SHEET
Assets Liabilities
Current Current
Fixed Long-Term
Intangible Net Worth
Total Total
SAM’S INCOME STATEMENT 1st year 2nd 3rd
Net sale
Cost of goods sold
Total expenses
Net income
SAM’S CASH FLOW jan feb mar dec
sales
disbursements
cash
beginning balance
ending balance
2. Valuation
(1) Ratio Analysis
- liquidity ratios
1) current ratio:
2) quick ratio:
- leverage ratios
3) debt/asset ratio:
4) debt/net worth ratio:
- operating ratios
5) average inventory turnover ratio:
6) total asset turnover ratio:
- profitability ratios
7) net profit/sales ratio
8) net profit/equity ratio:
(2) Break-Even Analysis
- total cost proportions
1) break-even sales
2) break-even volume
Entrepren10-04-11-12.doc
ENTREPRENEURSHIP Spring 2012 Dr. Soon Paik
Chapter 10 Financing 2: Sources (04/11/12)
* Financing sources: 1. Internal
2. External:
1. Internal Financing: - profits; - assets sales; - payment terms extension
- cash management
- cash management:
+ cash flow Jan Feb Mar Dec
Sales $50k
Disbursements 150
Cash flow (100)
Beginning bal 300 200
Ending balance 200
+ Cash Flow Strategies
(1) account receivable: 4 point:
(2) account payable: 5 points:
(3) inventory control: 2 points:
+ Avoiding Cash Crunch
(1) bartering
(2) trimming overhead costs
(3) investing surplus cash
2. External Financing
(1) self-financing: - personal funds
- family/friends
(2) debt financing
- asset base loans
- cash flow loans
- SBA 7(A)
- SBIDA
- R&D Limited partnerships
Entrepren11-04-18-12.doc
ENTREPRENEURSHIP Spring 2012 Dr. Soon Paik
Chapter 11 Financing 3: Equity Financing (04/17/12)
* sources: 1. Internal vs. 2. External
2. External Financing:
(1) self financing
(2) debt financing
(3) equity financing:
* stages of equity financing
Early stage seed/start-up capital informal risk-capital market
Expansion stage growth/expansion capital venture-capital market
Public offering stage operation capital public-equity market
Acquisition stage acquisition/LBO capital public-equity market
1) informal risk-capital market
- characters: + educated
2) venture-capital market
- types: + private
- statistics: + value
- deal: + needs
- venture-capitalist’s share
+ company’s value =
+ vc’s share =
(ownership given-up)
3) public equity market
- advantages:
disadvantages:
- procedures: + timing
+ underwriter
+ registration
+ quiet
+ qualified
+ reporting
Entrepren12-04-25-12.doc
ENTREPRENEURSHIP Dr. Soon Paik
Chapter 12 New Entry Strategies (04/26/2012)
* Entrepreneurial strategies: New Entry S. Chapter 12
Growth S. Chapter 13
Ending S. Chapter 14
1. New Entry Generation Strategies
(1) creating resource bundle: 1)
2)
3)
2) opening new entry opportunity: 1)
2)
3) making decision to enter: 1)
2)
2. New Entry Exploitation Strategies
(1) first movers’ strategies: first movers’ advantages
1)
2)
3)
4)
5)
(2) risk reduction strategies
Risks(Uncertainty) Risk Reduction Strategies
1) environmental u.
- demand u. a)
b)
- technological u. a)
b)
2) customers’ u. a)
b)
3) lead-time u. lead-time extension: a)
b)
c)
d)
(3) new organization strategies: 1)
2)
3)
LAB 3 Creating New Variables Name___Danyah Aldailami____
Objective:
The purpose of this lab is to explore different ways of creating or adding new variables to a dataset.
In this 6-week life-style changing program, many people experienced a change in body mass index (BMI). There are several statistics describing the change in BMI that would be interesting such as mean BMI change, maximum BMI gain, and maximum BMI loss. To investigate these statistics and several others you will need to first create this new variable.
1. Create a new variable called BMI at baseline (BMI1) and BMI after 6 weeks (BMI2) and then calculate the change in BMI (BMIchange). To do this, calculate BMI using the following information: Note: the following formula is for weight (lb), and height (in). If you use units of weight in kilograms and height in meters, the constant 703 will drop from it.
BMI1 = (weight at baseline x 703)/Height2
BMI2= (weight after 6weeks x 703)/Height2
BMI Change = BMI2 – BMI1
To compute new data values based on numeric transformations of existing variables:
· From the menu choose:
Transform
Compute variable
· Enter the name of the target variable BMI1
· Enter the numeric expression… (weight at baseline x 703)/Height2
· Click ok
After you have created BMI1, create BMI2 and change in BMI, create a frequency table for change in BMI. Use the frequency table to answer the following questions:
a) For change in BMI, find:
Mean (s.d.): __0.2969__ Minimum: __ -2.92___ Maximum: __2.15__
Extreme Outliers (if any): There are three outliers with one extreme outlier
b) What percent of the population reduced BMI:___ 94.8%___
c) What is the mean change in BMI for the females: ____ 3.3205____
2. A) Often it is useful to examine a variable such as baseline BMI (a quantitative variable) by recoding it into several meaningful categories (a qualitative variable).
To Recode the Values of a Variable into a New Variable
· From the menus choose:
· Transform Recode Into Different Variables...
· Select baseline BMI into the box as the “Input Variable”
· For the “Output Variable”, name it BaselineBMI_CAT and click “Change”.
· Next Click “Old and New Values”.
· In this new box, under Old Value, choose "Range Lowest through value" and put 20 in there, because you want all the values lowest through 20. Under New Value, put in a 1 for category 1, and click "Add."
· Next, under Old Value, choose "Range ____ through ____" and put 20.01 in the first box and 24 in the second, because you want a range between 20.01 and 24. Under New Value, put in a 2 for category 2, and click "Add."
· Next, under Old Value, choose "Range ____ through ____" and put 24.01 in the first box and 27 in the second, because you want a range between 24.01 and 27. Under New Value, put in a 3 for category 3, and click "Add."
· Lastly, under Old Value, choose "Range value through Highest" and put 27.01 in there, because you want all the values from 27.01 to the highest. Under New Value, put in a 4 for category 4, and click "Add."
· Click “continue” then “ok”.
B) Summarize the BMI categories variable
There 9(2.1%) people with BMI falling under this category of BMI less or equal to 20 of which 0(0%) and 9(3.5%)were females. Those with BMI of between 20.01-24 were 71 in number(16.7%),of these 24 (14.4%) were males while 47(18.1%) were females. The ones with the BMI of between 24.01-27 were 92 in number(21.6%) with 37(22.2%) being males and 55(21.2%) being females. Those with BMI of greater or equal to 27 were 254 in number with 106(63.5%)being males and 148(57.1% ) being females.
3. What percent of those who reduced their BMI are males? ____39.6%______
4. What percent of the males increased their BMI? ____5.79%_______
Please submit your responses to the above questions
LAB 3:
Creating New Variables
1
Types of original variables
Procedures
Type of new
variables
Creating New Variables
Transform
(Compute)
Quantitative Variable
Quantitative Variable
Transform
(Recode Into Different variables)
Qualitative Variable
Quantitative
Variable
Quantitative Variable
To recode the values of BMI change (Quantitative) into BMI change as qualitative variable
Now label each category
The row percentage (i.e., out of the 404 who reduced BMI, 160 are males, (160/404)*100=39.6%).
The column percentage (i.e., out of the 167 males, 5 increased their BMI, (5/167)*100=3.0%).
The overall column percentage (i.e., out of all 426 people, 404 reduced their BMI, (404/426)*100=94.8%).
The overall row percentage (i.e., out of all 426 people, 259 were females , (259/426)*100=60.8%).
BMI_change_CAT * GENDER | |||||
GENDER | Total | ||||
MALE | FEMALE | ||||
BMI_change_CAT | Reduced | Count | 160 | 244 | 404 |
% within BMI_change_CAT | 39.6% | 60.4% | 100.0% | ||
% within GENDER | 95.8% | 94.2% | 94.8% | ||
No change | Count | 2 | 6 | 8 | |
% within BMI_change_CAT | 25.0% | 75.0% | 100.0% | ||
% within GENDER | 1.2% | 2.3% | 1.9% | ||
Increased | Count | 5 | 9 | 14 | |
% within BMI_change_CAT | 35.7% | 64.3% | 100.0% | ||
% within GENDER | 3.0% | 3.5% | 3.3% | ||
Total | Count | 167 | 259 | 426 | |
% within BMI_change_CAT | 39.2% | 60.8% | 100.0% | ||
% within GENDER | 100.0% | 100.0% | 100.0% |
LAB 3:
Creating New Variables
1
The main purpose of this lab is to explore different ways to create new variables or to manipulate existing variables.
Transform Compute procedure in SPSS is used to create a quantitative variable from another quantitative variable(s)
Transform Recode into different variables procedure in SPSS is used to create a qualitative variable from another quantitative variable
Cumulative percentage is a way of describing frequency distributions. It is also used to identify the percent of people Under, At, or Above a certain cut-off point of a scale variable. For example, the percent of population who have weight less than 200 lbs.
Introduction
2
Types of original variables
Procedures
Type of new
variables
Creating New Variables
Transform
(Compute)
Quantitative Variable
Quantitative Variable
Transform
(Recode Into Different variables)
Qualitative Variable
Quantitative
Variable
Quantitative Variable
The row percentage (i.e., out of the 404 who reduced BMI, 160 are males, (160/404)*100=39.6%).
The column percentage (i.e., out of the 167 males, 5 increased their BMI, (5/167)*100=3.0%).
The overall column percentage (i.e., out of all 426 people, 404 reduced their BMI, (404/426)*100=94.8%).
The overall row percentage (i.e., out of all 426 people, 259 were females, (259/426)*100=60.8%).
BMI_change_CAT * GENDER | |||||
GENDER | Total | ||||
MALE | FEMALE | ||||
BMI_change_CAT | Reduced | Count | 160 | 244 | 404 |
% within BMI_change_CAT | 39.6% | 60.4% | 100.0% | ||
% within GENDER | 95.8% | 94.2% | 94.8% | ||
No change | Count | 2 | 6 | 8 | |
% within BMI_change_CAT | 25.0% | 75.0% | 100.0% | ||
% within GENDER | 1.2% | 2.3% | 1.9% | ||
Increased | Count | 5 | 9 | 14 | |
% within BMI_change_CAT | 35.7% | 64.3% | 100.0% | ||
% within GENDER | 3.0% | 3.5% | 3.3% | ||
Total | Count | 167 | 259 | 426 | |
% within BMI_change_CAT | 39.2% | 60.8% | 100.0% | ||
% within GENDER | 100.0% | 100.0% | 100.0% |
Example: Use the corn1 dataset (lab2) to answer the following questions:
What percent of the subjects have body mass index (BMI) of 20 or more at baseline?
Answer:
Step 1: Computing the BMI from two quantitative variables
From the menu choose:
Transform Compute Variable Enter the name of the target variable BMI_baseline
Enter the numeric expression… (weight at baseline x 703)/Height2 Click ok
Please note that no space is allowed for the new name
Please select each variable name from the variable list because it might be different from the variable label.
The BMI formula in SPSS should look like this (weight*703)/height**2
5
Step 1:
Enter the name of the new variable (with no space)
Step 2:
Select the original variables from the list
Use this pad exclusively to complete the formula
Step 2:
Obtain the cumulative frequencies for the BMI at baseline:
From the menus choose:
Analyze Descriptive Statistics Frequencies ...( make sure the frequency tables item is checked
Step 3: Interpret the cumulative percent
Total percent of population who had BMI less than 20
Total percent of population who had BMI 20 or more = 100- 2.1 = 97.9%
The percent of population who had BMI exactly 20.01
Classify the study subjects BMI at baseline into the categories indicated in Table 1.1
Answer:
Step 1: Use Transform Record procedure to create BMI groups at baseline (qualitative) from BMI at baseline (quantitative). Use “Recode into Different Variables” option in order to avoid overwriting the original variable. See the next slide.
Indicate the percent of the subjects with overweight __________21.6%___________
What percent of the female population have normal weight? _________18.1%__________
LAB 3 Creating New Variables Name_____________________
Objective:
The purpose of this lab is to explore different ways of creating or adding new variables to a dataset.
In this 6-week life-style changing program, many people experienced a change in body mass index (BMI). There are several statistics describing the change in BMI that would be interesting such as mean BMI change, maximum BMI gain, and maximum BMI loss. To investigate these statistics and several others you will need to first create this new variable.
1. Create a new variable called BMI at baseline (BMI1) and BMI after 6 weeks (BMI2) and then calculate the change in BMI (BMIchange). To do this, calculate BMI using the following information: Note: the following formula is for weight (lb), and height (in). If you use units of weight in kilograms and height in meters, the constant 703 will drop from it.
BMI1 = (weight at baseline x 703)/Height2
BMI2= (weight after 6weeks x 703)/Height2
BMI Change = BMI2 – BMI1
To compute new data values based on numeric transformations of existing variables:
· From the menu choose:
Transform
Compute variable
· Enter the name of the target variable BMI1
· Enter the numeric expression… (weight at baseline x 703)/Height2
· Click ok
After you have created BMI1, create BMI2 and change in BMI, create a frequency table for change in BMI. Use the frequency table to answer the following questions:
a) For change in BMI, find:
Mean (s.d.) _______ Minimum______ Maximum_______
Extreme Outliers (if any): __________
b) What percent of the population reduced BMI ___________________________________
c) What is the mean change in BMI for the females ________________________________
2. A) Often it is useful to examine a variable such as baseline BMI (a quantitative variable) by recoding it into several meaningful categories (a qualitative variable).
To Recode the Values of a Variable into a New Variable
· From the menus choose:
· Transform Recode Into Different Variables...
· Select baseline BMI into the box as the “Input Variable”
· For the “Output Variable”, name it BaselineBMI_CAT and click “Change”.
· Next Click “Old and New Values”.
· In this new box, under Old Value, choose "Range Lowest through value" and put 20 in there, because you want all the values lowest through 20. Under New Value, put in a 1 for category 1, and click "Add."
· Next, under Old Value, choose "Range ____ through ____" and put 20.01 in the first box and 24 in the second, because you want a range between 20.01 and 24. Under New Value, put in a 2 for category 2, and click "Add."
· Next, under Old Value, choose "Range ____ through ____" and put 24.01 in the first box and 27 in the second, because you want a range between 24.01 and 27. Under New Value, put in a 3 for category 3, and click "Add."
· Lastly, under Old Value, choose "Range value through Highest" and put 27.01 in there, because you want all the values from 27.01 to the highest. Under New Value, put in a 4 for category 4, and click "Add."
· Click “continue” then “ok”.
B) Summarize the BMI categories variable
3. What percent of those who reduced their BMI are males? _______________________
4. What percent of the males increased their BMI? _______________________________
Please submit your responses to the above questions

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