Business Essay Questions
Q1: Describe an external growth strategy and list examples (examples are required).
An external growth strategy is a strategy that is used to establish a relationship with a third party. One of the most common external growth strategies is a merger or acquisition. There are four main purposes of a merger or acquisition. The first purpose is to expand the product line. The second purpose is to gain access to distribution channels. The third purpose is to achieve competitive economies of scale. The fourth purpose is to expand the company’s geographic reach. An acquisition is the outright purchase of one firm by another. A merger is the pooling of interests to combine two or firms into one.
There are some advantages of using the external growth strategy. The first advantage is to reduce the competition. The second advantage is to access to proprietary products. The third advantage is to gain access to the new products. The fourth advantage is to gain access to the new markets. The fifth advantage is access to technical expertise. The sixth advantage is access to an established brand name. The seventh advantage is the economies of scale. The eighth advantage is the diversifications of the business risk.
Q2: Describe an internal growth strategy and list examples (examples are required).
An internal growth strategy is a strategy that relies on the effects that are generated within the firm itself. The best example of an internal growth strategy is to develop new products. The new product development involves the creation and sale of the new products or services as a means of increasing the revenue of the firm. The new product development is a competitive necessity in the more fast paced industries.
There are some advantages of using the internal growth strategies. The first advantage is the incremental, even-paced growth. The second advantage is to provide maximum control. The third advantage is to preserve organizational culture. The fourth advantage is to encourage internal entrepreneurship. The fifth advantage is to allow the firms to promote from within.
There are also some disadvantages of using the internal growth strategies. The first disadvantage is a slow from of growth. The second disadvantage is the need to develop the new resources. The third disadvantage is the investment in a failed internal growth strategy can be difficult to recoup. The fourth disadvantage is to add to the capacity of the industry.
There are several ways that a new venture can develop a new market. The first way is to find a niche and fill it. The second way is to develop products that add value. The third way is to get quality right and pricing right. The fourth way is to focus on a specific target market. The fifth way is to conduct ongoing feasibility analysis.
Q4: Discuss reasons as to why new products/services fail.
There are five main reasons why new products or services might fail. The first reason is the inadequate feasibility analysis. The second reason is the overestimation of market potential. The third reason is bad timing. The fourth reason is the inadequate advertising and promotions. The fifth reason is poor service.
Q5: What is the major disadvantage facing an entrepreneur if he/she chooses an “External” growth strategy? Explain why it is such a major disadvantage.
One major disadvantage of the external growth strategy is the incompatibility of top management. If the top management is not able to do their job correctly, then the company is going to be able to use the strategy effectively (Pitt, 2012).
Explain in your own words the three steps to change from your current state to your desired state?
There are three main steps in changing my current state to my desired state. The first step is to see it. The second step is to believe it. The third step is to act on it. But if any of these steps seem to be difficult, a person might want to give up. Therefore a person needs to draw the best picture of yourself and soak in the picture. This allows the person to become the one out of ten people to become successful. Find a symbol in your drawing that is going to represent your desired state.
Why is it necessary for you to draw the picture yourself? (hint: Statistics says, where you get your power)
It is necessary for you to draw the picture yourself is because you get the most power. Your brain releases serotonin and oxytocin, which is what makes a person feel happy and capable. He needs to feel it with colors and emotions so that the person feels creative.
3. How is this video related to the course?
This video is related to the course because it talks about all of the different things that a company can do in order to make the best decisions for the company.
Q1: How does the "zig-zag" principle apply to an entrepreneurial context?
The zig-zag principle applies to an entrepreneurial context in eight different ways. The first way is to access their resources. The financial capital is only going to be needed so that the company can meet the goals of the business. The second way is to identify your beacon in the fog. All of the goals of the company will need to be written down so that they are measurable and realistic. The third way is to create a catalyzing statement. For the elevator pitch, this is key element so that everyone is moving around you. This is where the values of the foundation will be used. The fourth way is to drive your startup to profitability. This is important to the business especially if it is broke and the company is fighting for money to run the business. In other words, the company will zag the sources of revenue.
The fifth way is to define processes and add resources. The initial zigs and zags make the company profitable, they will formalize and a document all of the processes that are done. The sixth way is to scale the business. This is going to help the company to switch to the mindset of working inside of the business. The seventh way is to stay within your guardrails. This is where the company will set up the rules for the zigs and zags that prevent the out of control situations. The eight way is to develop the reward systems. Too much of a reward will lead to an entitlement mentality of the company.
Q2: How are companies employing the "zig-zag" into their employee programs?
The best way for the company to employ the zig zag principle is to create a set of values to help the business to find its way among all of the other businesses. The company can add their own resources and hire the right people to do the job. Therefore, the company will be able to turn their cash into more money. The zig zag principle will help to protect the company’s resources along. Once the company becomes more realistic about achieving all of their goals, they will be able to prepare for any obstacles that they might face in the future. This is because the company will be a lot more flexible with their time.
Q3: What type of employee makes a better CEO? A specialists or generalists?
A generalist is going to make a better CEO. This is because they have a lot of knowledge about the different roles of the company. A specialist is only going to be highly skilled at one job or responsibility. Most of the time, they are going to be able to help the most in the sales and support department of the company. Some companies feel that the generalist employees would not make good CEOS but I believe that knowing all of the jobs of the company will help the CEO to do their job at the best of their ability.
Q4: Where you fall on the spectrum of specialist to generalist could be one of the most important aspects of your personality—and chances of your survival in an ever-changing workplace. Do you agree or disagree. Explain your answer.
First of all, I think that it is important to look at some examples of what a specialist is. The first example is a financial type. They are the people that know a lot about the numbers that the company generates. Therefore, they know how to cut expenses when the company is not making any profits. The second example is the operational type. They know how to make the right decisions and buy the things that the company needs to operate. But they are not going to have any sales experience. The third example is the sales and marketing type. These are the people who know how to sell their way out of a difficult situation. They will be able to fill orders very quickly and make sure everything is okay with the sales department.
The generalist will have a different perspective when it comes to being the CEO of a company. Even though they might not have the knowledge of finance, operations, and sales but they know how to make the right decisions for the company. They have the ability to ask questions about the company, listen to the answers, and come up with alternative solutions. Therefore, they know what is good for the company.
I believe I am more of a generalist. This is because I know a lot of knowledge about the different aspects of a company. I have a great personality that allows me to adjust to different situations without any problems. I am also very motivated and can multi task very easily. Therefore, I should not have any problems getting all of the jobs that a CEO would have to do. I could also survive very well in the ever-changing workplace that is going to happen in the world of being a CEO (Zwilling, 2011).
References:
Pitt, Martyn R. and Koufopoulos, Dimitrious. (2012). Essentials of Strategic Management. Sage
Publishing: Thousand Oaks, CA.
Zwilling, Martin. (2011). Smart Entrepreneurs Follow the Zig Zag Principle. Retrieved on April
15th, 2016, from http://www.forbes.com/sites/martinzwilling/2011/10/04/smart-entrepreneursfollow-the-zig-zag-principle/#eb2873246f6d.
