How Feasibility Analysis Shaped Rent the Runway into the Business it is today. 1. Make a list of the ways in which Hyman and Fleiss vetted their business idea prior to launch. How long was it between the initial idea for Rent the Runway and when the business was launched? What does the amount of time between the two events tell you about Hyman and Fleiss’ feasibility analysis process? 2. To what degree would rent the Runway be a different company today if Hyman and Fleiss had not conducted a feasibility analysis? Do you think the business would be as successful as is currently the case? 3. Identify at least two “take aways” from the Rent the Runway story not mentioned in the Lessons Learned portion of the 4. What can young entrepreneurs with business ideas learn from Hyman and Fleiss’ experiences?
> What are the four primary factors that play a role in determining the nature and intensity of the bargaining power of suppliers?
> Kevin Andrews and Karen Platt are college seniors. They’re in the process of launching an unsweetened, fruit-flavored bottled water start-up named Compete H2O. The start-up will be unique in that Compete H2O will be sold via small kiosks located in fitne
> A good friend of yours, Andrew Waters, has decided to leave his corporate job in order to launch a private SEO (search engine optimization) consulting firm. He is putting together a business plan for this venture and says the following to you, “I’ve read
> Travis Ryan is one of four cofounders of a skateboard company. The cofounders have decided to write a business plan to obtain funding for their venture. During a recent meeting, Travis said, “I know that we’re all really busy, so I’d like to volunteer to
> Although there are many retail stores in the United States, there are only a handful of big box stores such as Walmart, Target, and Costco. These stores stock products from thousands of suppliers. As a result of the sheer size of Walmart, it is able to s
> Your friend has developed what he believes is a novel floor cleaning product. The advantage of this product, he tells you, is that because of the unique chemicals used to create the cleaning fluid, people are able to use a fraction of the amount of fluid
> Think about and find some information about trends in the motorcycle industry. In particular, identify the effects of economic, demographic, and regulatory changes that may affect the motorcycle industry at the time you are reading this book. Write a pa
> In what ways is an entrepreneur who just launched a restaurant different from someone who just took a job as the general manager of a restaurant owned by a major restaurant chain?
> Karen Sharp lives in a town of approximately 10,000 in Western Kentucky. There isn’t a furniture store in the town. Karen is thinking about starting one. She has good business and marketing skills and is confident she can operate the store successfully.
> As mentioned in this chapter, White Wave Inc. produces Silk Soymilk, a product that has done surprisingly well in the mature milk industry. Based on the material we’ve covered so far, why do you think Silk Soymilk has been so successful?
> Which focuses on Panera Bread. What are some of the entry barriers a firm would have to deal with and try to overcome if it tried to compete against Panera Bread in the casual dining segment of the restaurant industry?
> What are the six major sources of barriers to entry that can restrict a firm’s entry into a market?
> Eric Andrews has been investigating the possibility of starting a service that will partner with grocery stores to provide a delivery service for their customers. The idea is that after purchasing their groceries, customers could go to a kiosk in the sto
> Linda Henricks is thinking about starting a firm in the home health care provider industry. When asked by a potential investor if she had studied the industry, Linda replied, “With the aging of the population and the fact that people are living longer th
> Re-read the opening profile about IndieU. What are the most significant threats to this firm’s currently successful business model? What actions should the firm take to successfully deal with the threats you identified?
> PatientsLikeMe: Allowing People with Serious Diseases to Connect with One Another and Exchange Support and Advice 1. Of the reasons articulated in Chapter 1 that motivate people to start businesses, which of the three reasons was the primary motivation b
> School of Rock: Filling a Gap in Music Education and Growing via Franchising 1. What types of characteristics do you anticipate School of Rock looks for in franchisees? 2. Look at Table 15.2. Of the ways mentioned in this table for franchisors to develop
> What are some examples of instances in which location is an important part of a firm’s business model?
> Justin’s Nut Butter: Why do Large Companies Acquire Start-Ups and Why do Start-Ups Agree to be Acquired? 1. Why do you think Hormel acquired Justin’s to add to the strength of its peanut and nut butter offerings and to add a product to its portfolio that
> Airbnb: Passing through the Stage of Growth in an Exemplary Manner 1. Make a list of things that you think Airbnb did “right” in growing its business. 2. Comment on the propensity of Airbnb’s founders to solicit customer feedback. Based on the informati
> You Make the Call: Can a Company Patent How It Makes a Peanut Butter and Jelly Sandwich? 1. Go to the U.S. Patent & Trademark Office’s Web site (www.uspto.gov) and look up Patent No. 6,004,596. Read the patent. After reading the patent are you more incli
> Proactive: How Three Critical Marketing Decisions Shaped a New Venture’s Future 1. How has Proactiv gone about establishing its brand? To what degree do you believe Proactiv is important in its customers’ lives? 2. Discuss the things that Rodan and Field
> How can the threat of substitute products suppress an industry’s profitability?
> Kickstarter: An Increasingly Important Forum for Raising Seed Capital 1. Do you think Kickstarter is a viable alternative to raising equity funding or debt financing? If so, under what circumstances? 2. Kickstarter is not the first crowdfunding platform
> Zappos: Making Human Resources the Key to Customer Service 1. What steps did Zappos take early in its life as a company to overcome the liability of newness? 2. What can entrepreneurs learn from Zappos’ experience about motivating employees and building
> Fundbox: Designed to Help Small Businesses Minimize Cash Flow Shortfalls 1. Toward the beginning of this case, the following statement appears: “Almost all small businesses experience cash flow shortfalls.” What is cash flow? Why is cash flow so critical
> Peloton Cycle and Donors Choose: How For-Profit and Nonprofit Start-Ups Build Credibility and Trust. 1. Why is building credibility, legitimacy, and trust particularly important for a start-up venture, regardless of whether it is a for-profit or a nonpro
> How bringing Its Business Plan to Life Helped a Social Enterprise Get Off to a Strong Start 1. Why is the problem of bringing light to people who don’t have access to reliable electricity not being tackled in a meaningful way by a large lighting company,
> How Casper Woke Up the “Sleepy” Mattress Industry 1. To what degree do you think Casper has disrupted the mattress industry? To what degree did Casper’s research about the mattress buying process resonate with you? Would you buy a Casper mattress? Why
> Resources and core competencies are both important parts of the Barringer/Ireland Business Model Template. What are the differences between resources and core competencies and why must an entrepreneurial firm have both resources and core competencies in
> TOMS’ One-for-One Business Model: Is It Sustainable for the Future? 1. Given TOMS’ mission and the way its business model is constructed, would you characterize TOMS’ business model as a standard business model or a disruptive business model? What impact
> Embrace Infant Warmer: Sometimes a Business Start Is a Matter of Life and Death. 1. What target market does Embrace seek to serve and how attractive is that market? 2. What examples of primary research that Embrace’s founders completed appear in the case
> Rover.com: Don’t Chuckle: This Is One Impressive Business Idea. 1. In the United States, what environmental trends are supporting the development of Rover.com’s business? 2. In this chapter, we noted that a true business opportunity is attractive, durabl
> What are the four distinctive parts of the entrepreneurial process and what is the relationship among the parts?
> 1. Which of the characteristics of a successful entrepreneur, discussed in the chapter, do you see in Julie Rice and Elizabeth Cutler? To what degree do you think these characteristics have contributed to SoulCycle’s success? 2. How does SoulCycle’s basi
> Quiznos: Will It Regain a Leadership Position in the Sandwich and Sub Shop Franchise Industry? 1. To what degree do you think Quiznos’ brand has been permanently damaged by its missteps? Is Quiznos doing everything it can to repair its brand? What, if an
> Warby Parker: Pursuing an Omni-Channel Strategy for Firm Growth 1. How is Warby Parker able to sell eyewear at such a low price? 2. Explain the rationale behind Warby Parker’s omnichannel strategy. Provide an example of another company that is pursuing a
> Sir Kensington’s: Pursuing a Measured, Yet Promising Path to Growth 1. There is a discussion early in this chapter about the need to prepare for growth. What actions did Scott Norton and Mark Ramadan take that demonstrate their commitment to trying to fu
> GoldieBlox vs. Beastie Boys: The Type of Fight That No Start-Up Wants to Be a Part of 1. If the case hadn’t been settled by GoldieBlox and the Beastie Boys and you had been asked to render a judgment in the case, would you have rendered a judgment in fav
> 1. Critique Nest’s segmentation strategy, its selection of a target market, and its positioning strategy. To what degree are these elements of Nest’s market strategy complementary and effective? 2. Describe Nest’s brand. In what ways does Nest practice b
> Revolights: Using Multiple Sources of Funding to Bring Its Innovative Bicycle Lighting System to Life 1. The following sentence appears early in this chapter: “There are three reasons that most entrepreneurial ventures need to raise money during their e
> Debra McGahan, a close friend of yours, mentioned to you that to complete a project in one of the courses she is taking this semester, she needs to describe a firm that is using an effective business model. Your immediate response is to recall that you j
> Basecamp: Implementing Novel Work Design and Human Resource Management Practices 1. Share your general reaction to this case study. Do you think Basecamp’s approaches to work design and HRM are transferable to other organizations, or do you think they’re
> Mary Lynn Schroeder: Building a Successful Business with Limited Money and Limited Business Experience 1. What can a first-time entrepreneur, who may have a good idea but not much money or business acumen, learn from Mary Lynn Schroeder’s experience? 2.
> What are the differences among direct competitors, indirect competitors, and future competitors?
> Preparing a Proper Legal Foundation: A Start-Up Fable 1. Complete Jack and Sarah’s list for them, including the issues you think they will place on the list along with their recommendations. Which of the issues do you think will stimulate the most discus
> Birchbox: Leveraging the College Experience to Write a Business Plan and Launch a Growing Start-Up 1. How effectively do you think Katie Beauchamp and Hayley Barna used their time in college to advance their business idea? 2. In what ways is Birchbox’s b
> Panera Bread: Occupying a Favorable Position in a Highly Competitive Industry 1. How has Panera Bread established a unique position in the restaurant industry? 2. How has Panera Bread’s unique position in the restaurant industry contributed to the firm’s
> Etsy: Breaking Down a Business Model 1. How does Etsy create, deliver, and capture value for its shareholders? 2. Is Etsy’s business model a standard or a disruptive business model? Explain your answer. 3. How is Etsy’s business model different from eBay
> PledgeMusic and Zinepak: Creating New Businesses in the Music Industry by Directly Engaging Fans 1. What environmental trends are working in favor of PledgeMusic and Zinepak? What environmental trends are working against each company? 2. What gap or gaps
> KaZAM, the company producing a bike that teaches kids how to ride without training wheels in a safe, enjoyable, and confidence-building manner, is the subject firm described in the “You Be the VC 9.2” feature (from Chapter 9). Reread that feature. What t
> Imagine you’re opening a tutoring service near the campus of the college or university you attend. What would be the characteristics of a comprehensive social media strategy that you can employ to build your brand, engage customers, and generate leads an
> Twitter (http://twitter.com) is a free networking and micro-blogging service that allows its users to send and read other users’ updates, called “tweets.” This business model continues to be criticized for not being viable in the long-term. Spend some ti
> What is entrepreneurship?
> What are the two most common strategies pursued by firms in global industries?
> What is the evidence that debunks the myth that entrepreneurs are born, not made?
> What are the five common myths of entrepreneurship?
> What is it about “tenacity” that makes it such an important characteristic for entrepreneurs?
> Why is product/customer focus an important characteristic of successful entrepreneurs?
> What is it about passion that makes it particularly compatible with the entrepreneurial process?
> Why is passion such an important characteristic of successful entrepreneurs?
> What are the three primary reasons people become entrepreneurs?
> What are the three main attributes of firms that pursue high levels of corporate entrepreneurship?
> What is an industry?
> What is a company’s product/market scope?
> How can a start-up avoid or sidestep the pressure applied by one of the five forces on industry profitability by establishing a unique “position” in an industry?
> What is the difference between a scale joint venture and a link joint venture? Provide examples of both types of joint ventures and how their effective use can increase a firm’s sales.
> Spend some time looking at Wonder Workshop, the focus of the “You Be the VC 3.2” feature. What are five actions this firm could have taken when completing its feasibility analysis that would have been particularly helpful in supporting its business model
> Why do most entrepreneurial firms initially choose to compete within a narrow target market?
> How are a firm’s core strategy and its mission related to each other as parts of a business template?
> What are the four major categories that comprise the Barringer/Ireland Business Model Template?
> What is the best time for a firm to develop its business model?
> How does a freemium business model work?
> What are some common advantages that accrue to a firm as a result of partnering with other companies?
> Who are “key partners” and why are they important to the success of an entrepreneurial venture?
> What are the primary elements of the Operations component of the Barringer/Ireland Business Model Template?
> How do fixed costs differ from variable costs?
> What are the nontraditional barriers to entry that are particularly suitable for entrepreneurial firms to study when selecting an industry in which to compete?
> What is a revenue stream and why is it so important to a firm’s short- and long-term success?
> Do you think that the business models of daily newspapers are viable in the long run? If you were the owner of a daily newspaper in a major U.S. city, would you try to maintain the print edition of your paper, evolve to strictly an online presence, or do
> What are a firm’s key assets?
> How many core competencies do most start-ups have?
> What is a core competency?
> Why is it important for a franchisor to develop detailed and thorough operating manuals?
> What are some of the aspects of franchising that make it subject to ethical abuses?
> What is the purpose of a franchise agreement?
> Why is it important for a prospective franchisee to retain his or her own franchise attorney?
> Typically, if an individual franchise unit is losing money, does it still have to pay a monthly royalty to the franchisor? Explain your answer.
> What are the four primary factors that play a role in determining the nature and intensity of the bargaining power of buyers?
> What is franchising?
> What is an international expansion strategy? What are the keys to implementing this strategy successfully in an entrepreneurial firm?
> Naomi Stephenson plans to open a company that will design and manufacture accessories for smartphones. She has read that having a clearly articulated business model will help “all of the elements of her business fit together.” Naomi isn’t quite certain s
> What is a market penetration strategy? Provide an example of a market penetration strategy, and describe how using it effectively might increase a firm’s sales.
> What are some of the common reasons new products fail?
> What are the keys to a firm’s effort to achieve success through new product and service development?
> How does a joint venture differ from a strategic alliance?
> What is a joint venture?
> Over the past several years, why have strategic alliances and joint ventures become increasingly prevalent growth strategies for entrepreneurial firms?
> What is the meaning of the term licensing? How can licensing be used to increase a firm’s revenues?
> What is the purpose of completing a competitive analysis grid?
