Learning Activity #1
Chapter 1 of the text indicated that Managerial Inadequacy, Financial Inadequacy, External Factors are the most significant influencers of the demise of the small business Table 1.5 from Chapter 1 of the course materials lists several reasons why Small Businesses Fail. Chapter 5 is focused on business strategy and the development of a Business Plan. It is imported for new and existing small business owners to understand the pitfalls that they must work to overcome and the value that must be placed on establishing a culture of continuous strategic planning.
The goal of this Learning Activity is to understand why developing a Business Plan will help the small business to overcome the top reasons why most small businesses fail.
Create a table with three columns. The first column should list the reasons why a small business fails. The second column should identify the section of the Business Plan that specifically addresses the reason why the small business may fail that you listed in column 1. The third column should provide a summary of how this section of the Business Plan will provide a road map for mitigating the risk of the business failure.
Learning Activity #2
Chapter 2 of the text is focused on the concept of understanding the Value Proposition of your business. It is through the understanding of the businesses unique value that the small business owner will seek to establish a competitive advantage.
Learning Activity
Review the exercise for Frank's All American BarBeQue on page 16 of Chapter 2 of the text. Prepare a 200 word minimum response to question 1 of this exercise. Your response should demonstrate your understanding of the importance of being able to identify and capitalize upon the value of your organization and how this value will contribute to gaining a competitive advantage. Be sure to comment on the "five value benefits and the perceived costs".