Ent3003 exam 2 ACTUAL UPDATED QUESTIONS AND CORRECT
ANSWERS
,AmeriCAN Packaging case study •Jeff's network played a key role in each phase of the business' life, illustrating how
one's network is the most valuable resource one has at his/her disposal.
-used means at hand: inventory of skills and knowledge. also used network
-failed wood recycling business
-After reaching out to a close friend's father (investment banker), who was looking
to do the same, he identified the metal packaging opportunity in the Dominican
Republic. Together, they made up the founding team
-gap in the market for metal packaging manufacturers in the DR (heart of cigar
industry)
-•To learn more about the cigar manufacturing and packaging industry, Jeff
reaches out to his network in his hometown of Miami.
• Learns the entire supply chain for the production of cigars exists in Latin America
EXCEPT for the metal packaging components (which are sourced from China and
Switzerland). Thus, decides he can compete on price and lead-time (solution).
• Begins to look for suitable warehouse in the DR to set up metal packaging plant
near tobacco manufacturers.
• Takes on a risk and signs a 5-year lease on a manufacturing facility in the
Dominican Republic without consulting his co-founder and investor! (does not
really have affordable loss)
• While this isn't something that is recommended, it worked out for Jeff...he quickly
wrote a makeshift business plan for his investment partner and he went on to raise
$2 million in funding to set up AmeriCan.
-•Local suppliers were reluctant to work with smaller quantities of products.
• Needed to run a test batch of printed metal cans but couldn't find a local partner.
Leverages network to find a printer in Costa Rica...BUT, couldn't get samples so
had to order 20,000 printed tins. Then gets rejected, so stuck with the tins and no
customers!
• Attends trade shows, hires a Spanish consultant, establishes university internship
program and taps into LinkedIn. Also reaches out to friends, family, professors and
others.
-Manufacturing emergency!
-•sold a large stake in AmeriCan to an established cigar manufacturer with a good
reputation (vertical integration). This propelled AmeriCan to the forefront of the
industry.
• This injection of credibility and trust helped expand AmeriCan's book of business
in all of Lati
,The power of networks Entrepreneurship is about collaboration: It's about creating together, taking action
with limited resources, and navigating uncertainty. Strong network helps w/ these
things
-Studies show that by making connections with people who share our values, we
are able to achieve more than if we had acted alone. In general, we have two
sources of personal differentiation. We have our human capital and our social
capital.
-Human capital is our talent, charisma, and intellect; social capital is our source for
ideas, etc.: We have two sources of personal differentiation: our human capital is
our talent, intellect, charisma (what we know and who we are) and social capital is
our source for ideas, support, reputation, new knowledge, and resources.
The best networks can provide entrepreneurs with access to external sources of
information: The best networks can provide entrepreneurs with access to external
sources of information, financing, emotional support, and expertise, and allow for
mutual learning and information exchange.
network building is a dynamic process means continuously making purposeful and valuable connections is essential for
business success.
networking builds ____ social capital: our personal social networks populated with people who willingly
cooperate, exchange information, and build trusting relationships with each other.
Is a productive (aka valuable) asset, but less tangible than physical or human
capital bc exists in relationships among ppl. (hard to assess or measure).
Interacting socially will help you build social capital: Anywhere that provides the
opportunity to interact socially will help you build social capital if you recognize
the value in purposeful relationships. There are three dimensions of social capital.
-structural dimension (components of your network, such as type of social ties
you do/do not have and degree to which these ties are formal or informal);
relational dimension (what your contacts represent, such as a trusting
relationship); cognitive dimension (norms, visions, values, interpretations, and
beliefs you may share with others, which provide a good foundation for working
well together toward a common goal)
-spending time participating in online social networks is not as "real" as the face-
to-face social interaction of the past. The decline of community networks that
used to be so prevalent in the past has led to a loss of social capital.11 However,
the good news is that anyone can build social capital if they make an effort to
actively and purposefully form connections with others.
Organization for economic cooperation and a. Bonds: connections with people who are just like us, such as family, friends, and
development/oecd's 3 main varieties of social capital others, who have a similar cultural background or ethnicity.
b.Bridges: Links that go further than simply sharing a sense of identity; for
example, making connections with classmates or colleagues who may have
different backgrounds, cultures, or other characteristics.
c.Linkages: Connections to people or groups regardless of their position in an
organization, society, or other community.
, benefits and drawbacks of social capital Social capital creates a sense of shared value to the people who are connected in
the network: Especially when cooperation, trust, and mutual exchange are high.
a.Famously, the most powerful contact in Bill Gates's network before Microsoft
took off was his mother, Mary Gates.
b.Mary Gates sat on the board of United Way with John Akers, a senior IBM
executive.
c.The relationship led to her son, Bill, pitching the Microsoft operating system to
Akers, who awarded the contract to Gates.
- Forming connections with people who are too similar to ourselves can prevent
us from seeing the bigger picture, as they are less likely to challenge our ideas,
which may deprive us of valuable feedback and information
-When bonds are too strong, social capital can have a negative impact on society
a.As an extreme example, members of drug cartels are often bound together by
personal loyalties, and their actions go against the interests of society and inhibit
social and economic progress.
-It is important to expand and capitalize on the external relationships: Or "weak
ties" in our network, such as people we meet at trade shows and exhibitions, as
well as potential investors and banks to capture a wider range of information.
-combo of social bonds, bridges, and linkages = best way to get diverse and
productive network
the value of networks An entrepreneur is required to interact with investors, mentors, advisors,
professors, potential employees, resource providers, and other stakeholders.
In a networking group of about 40 people, the leads you could obtain are almost
incalculable: In a networking group of 20 to 40 people, the amount of possible
referrals and leads that you could obtain from this group are almost incalculable.
a.Benefits of informal networks: New research released by the Economist
Intelligence Unit on the benefits of informal professional networks and
communities, including online (Facebook, LinkedIn) and physical (parties,
entrepreneurial events) networking, showed that informal networking
(unstructured, free-flowing communication) was far more important to
entrepreneurial success than formal networking (meeting in a formal setting).
b. 78 percent of startups benefited from informal networking: Out of the 1,000
entrepreneurs surveyed across ten cities—six cities in Asia, two in Europe, and two
in the U.S., the study found that 78 percent of startups benefited from active
informal networking... the greater the number of networking activities, the higher
the chance of greater profitability, revenue growth, and innovation
ANSWERS
,AmeriCAN Packaging case study •Jeff's network played a key role in each phase of the business' life, illustrating how
one's network is the most valuable resource one has at his/her disposal.
-used means at hand: inventory of skills and knowledge. also used network
-failed wood recycling business
-After reaching out to a close friend's father (investment banker), who was looking
to do the same, he identified the metal packaging opportunity in the Dominican
Republic. Together, they made up the founding team
-gap in the market for metal packaging manufacturers in the DR (heart of cigar
industry)
-•To learn more about the cigar manufacturing and packaging industry, Jeff
reaches out to his network in his hometown of Miami.
• Learns the entire supply chain for the production of cigars exists in Latin America
EXCEPT for the metal packaging components (which are sourced from China and
Switzerland). Thus, decides he can compete on price and lead-time (solution).
• Begins to look for suitable warehouse in the DR to set up metal packaging plant
near tobacco manufacturers.
• Takes on a risk and signs a 5-year lease on a manufacturing facility in the
Dominican Republic without consulting his co-founder and investor! (does not
really have affordable loss)
• While this isn't something that is recommended, it worked out for Jeff...he quickly
wrote a makeshift business plan for his investment partner and he went on to raise
$2 million in funding to set up AmeriCan.
-•Local suppliers were reluctant to work with smaller quantities of products.
• Needed to run a test batch of printed metal cans but couldn't find a local partner.
Leverages network to find a printer in Costa Rica...BUT, couldn't get samples so
had to order 20,000 printed tins. Then gets rejected, so stuck with the tins and no
customers!
• Attends trade shows, hires a Spanish consultant, establishes university internship
program and taps into LinkedIn. Also reaches out to friends, family, professors and
others.
-Manufacturing emergency!
-•sold a large stake in AmeriCan to an established cigar manufacturer with a good
reputation (vertical integration). This propelled AmeriCan to the forefront of the
industry.
• This injection of credibility and trust helped expand AmeriCan's book of business
in all of Lati
,The power of networks Entrepreneurship is about collaboration: It's about creating together, taking action
with limited resources, and navigating uncertainty. Strong network helps w/ these
things
-Studies show that by making connections with people who share our values, we
are able to achieve more than if we had acted alone. In general, we have two
sources of personal differentiation. We have our human capital and our social
capital.
-Human capital is our talent, charisma, and intellect; social capital is our source for
ideas, etc.: We have two sources of personal differentiation: our human capital is
our talent, intellect, charisma (what we know and who we are) and social capital is
our source for ideas, support, reputation, new knowledge, and resources.
The best networks can provide entrepreneurs with access to external sources of
information: The best networks can provide entrepreneurs with access to external
sources of information, financing, emotional support, and expertise, and allow for
mutual learning and information exchange.
network building is a dynamic process means continuously making purposeful and valuable connections is essential for
business success.
networking builds ____ social capital: our personal social networks populated with people who willingly
cooperate, exchange information, and build trusting relationships with each other.
Is a productive (aka valuable) asset, but less tangible than physical or human
capital bc exists in relationships among ppl. (hard to assess or measure).
Interacting socially will help you build social capital: Anywhere that provides the
opportunity to interact socially will help you build social capital if you recognize
the value in purposeful relationships. There are three dimensions of social capital.
-structural dimension (components of your network, such as type of social ties
you do/do not have and degree to which these ties are formal or informal);
relational dimension (what your contacts represent, such as a trusting
relationship); cognitive dimension (norms, visions, values, interpretations, and
beliefs you may share with others, which provide a good foundation for working
well together toward a common goal)
-spending time participating in online social networks is not as "real" as the face-
to-face social interaction of the past. The decline of community networks that
used to be so prevalent in the past has led to a loss of social capital.11 However,
the good news is that anyone can build social capital if they make an effort to
actively and purposefully form connections with others.
Organization for economic cooperation and a. Bonds: connections with people who are just like us, such as family, friends, and
development/oecd's 3 main varieties of social capital others, who have a similar cultural background or ethnicity.
b.Bridges: Links that go further than simply sharing a sense of identity; for
example, making connections with classmates or colleagues who may have
different backgrounds, cultures, or other characteristics.
c.Linkages: Connections to people or groups regardless of their position in an
organization, society, or other community.
, benefits and drawbacks of social capital Social capital creates a sense of shared value to the people who are connected in
the network: Especially when cooperation, trust, and mutual exchange are high.
a.Famously, the most powerful contact in Bill Gates's network before Microsoft
took off was his mother, Mary Gates.
b.Mary Gates sat on the board of United Way with John Akers, a senior IBM
executive.
c.The relationship led to her son, Bill, pitching the Microsoft operating system to
Akers, who awarded the contract to Gates.
- Forming connections with people who are too similar to ourselves can prevent
us from seeing the bigger picture, as they are less likely to challenge our ideas,
which may deprive us of valuable feedback and information
-When bonds are too strong, social capital can have a negative impact on society
a.As an extreme example, members of drug cartels are often bound together by
personal loyalties, and their actions go against the interests of society and inhibit
social and economic progress.
-It is important to expand and capitalize on the external relationships: Or "weak
ties" in our network, such as people we meet at trade shows and exhibitions, as
well as potential investors and banks to capture a wider range of information.
-combo of social bonds, bridges, and linkages = best way to get diverse and
productive network
the value of networks An entrepreneur is required to interact with investors, mentors, advisors,
professors, potential employees, resource providers, and other stakeholders.
In a networking group of about 40 people, the leads you could obtain are almost
incalculable: In a networking group of 20 to 40 people, the amount of possible
referrals and leads that you could obtain from this group are almost incalculable.
a.Benefits of informal networks: New research released by the Economist
Intelligence Unit on the benefits of informal professional networks and
communities, including online (Facebook, LinkedIn) and physical (parties,
entrepreneurial events) networking, showed that informal networking
(unstructured, free-flowing communication) was far more important to
entrepreneurial success than formal networking (meeting in a formal setting).
b. 78 percent of startups benefited from informal networking: Out of the 1,000
entrepreneurs surveyed across ten cities—six cities in Asia, two in Europe, and two
in the U.S., the study found that 78 percent of startups benefited from active
informal networking... the greater the number of networking activities, the higher
the chance of greater profitability, revenue growth, and innovation
