150 ENTREPRENEURSHIP
- What are the key elements affecting entrepreneurial strategy in the following environments?
a. Emerging industries
b. Transitional industries
c. Maturing industries
d. Declining industries
e. Fragmented industries - What are the five stages for assessing entrepreneurial opportunities?
- What are the four tests of strategy? Why is it important to apply the tests before going into
business?
EXERCISES
- Return to the list of companies in Table 4.2. Choose one and answer the following ques-
tions:
a. What unique product/services are being offered?
b. What VRIN resources does the company appear to have?
c. What other companies (if any) have been instrumental in the company’s success?
d. How have these companies contributed? - Develop a strategy for your new venture.
a. What entry wedges, major and minor, will you use?
b. How will you attempt to collect and appropriate rents?
c. What industry environment are you entering? How will this environment influence your
strategy?
d. Apply the four tests to your strategy. What questions do they raise? How would you
answer these questions if they were posed by a banker or venture capitalist? - Choose a company from the latest Inc 500 list (http://www.inc.com).
a. Write a paragraph describing the business model of the company.
b. Use the Strategy Diamond Model to outline what the company is doing, how it is pur-
suing its strategy, and what its time frame appears to be.
c. Find another company on the list that is in a similar business and repeat a. and b. above.
d. Compare the two companies. How are they different? Similar? Which company’s strate-
gy seems to be closest to establishing SCA? Justify your answer.