Competitive Advantage In Entrepreneurship Portfolio

Competitive Advantage Entrepreneurship Portfolio Critical Thinkin

Complete items 1 through 6, which require you to create charts similar to the exhibits 3-4 and 3-6 in the textbook for this assignment.

Key Concept Questions: 3-7: Gross profit is the profit of a business before which other costs are subtracted? What is the average unit of sale for the following businesses? 3-8: A restaurant that serves $2100 in meals to 115 customers per day. 3-9: A record store that sells $1500 worth of CDs to 75 customers per day.

Biz Builder Business Plan: Complete business plan section 2.0, Mission, Vision and Culture: A, B, C & D sections- for your specific business. Be sure to write as a narrative rather than just simply answering the questions. Remember your audience.

Paper For Above instruction

The concept of competitive advantage is fundamental in entrepreneurship, serving as the cornerstone for establishing a sustained position in the competitive landscape. This portfolio aims to analyze various aspects of competitive advantage through exercises that involve creating comparative charts, understanding core financial concepts, and developing foundational business plans.

In the initial exercises, the focus is on constructing visual representations similar to exhibits 3-4 and 3-6 from the textbook. These charts typically align with assessing competitive positioning, financial performance, or market analysis, providing a snapshot of a business's strengths and weaknesses relative to competitors. Developing these charts requires a clear understanding of key metrics such as revenue, profit margins, cost structures, and market share, allowing entrepreneurs to visualize where their business stands and identify areas for strategic improvement.

Moving to the key concept questions, understanding gross profit is essential. Gross profit refers to the revenue remaining after deducting the cost of goods sold (COGS), but before subtracting operating expenses, taxes, and interest. This metric provides insight into the core profitability of a business's products or services. For example, if a bakery earns $10,000 in sales and the COGS (flour, ingredients, labor directly tied to production) amounts to $4,000, then the gross profit is $6,000. Recognizing how gross profit functions helps entrepreneurs analyze the efficiency of their operations and pricing strategies.

Furthermore, calculating the average unit of sale gives a clearer picture of revenue generated per customer. For a restaurant serving $2,100 in meals to 115 customers daily, dividing the total sales by the number of customers yields an average unit sale of approximately $18.26 per customer. Similarly, a record store earning $1,500 from 75 transactions results in an average sale of $20 per customer. These figures help entrepreneurs understand customer behavior and set strategies for pricing, upselling, or marketing to increase per-customer revenue.

Finally, the business plan section on Mission, Vision, and Culture forms the foundation of an enterprise's identity. Crafting a compelling narrative that encompasses these elements ensures that your business communicates its purpose and values effectively. The mission statement articulates the core purpose of the business, guiding decision-making and strategic initiatives. The vision statement projects a future aspiration, inspiring stakeholders and employees. The culture section describes the environment, values, and behaviors that define the organization, fostering alignment and motivation among team members.

In developing these sections, it is vital to tailor the language to resonate with your target audience, demonstrating clarity, passion, and authenticity. For instance, if your business is a sustainable clothing line, your mission might emphasize environmental responsibility, your vision could highlight leadership in eco-fashion, and your culture may prioritize innovation and community engagement. Communicating these elements effectively can create a compelling narrative that attracts customers, partners, and investors, positioning your business for long-term success.

In conclusion, mastering these exercises enhances an entrepreneur's ability to analyze competitive positioning, understand key financial metrics, and define the core identity of their enterprise. By combining visual analysis with strategic storytelling, entrepreneurs can craft a comprehensive approach to building a sustainable competitive advantage that aligns with their business objectives and market realities.

References

• Barney, J. B., & Hesterly, W. S. (2019). Strategic Management and Competitive Advantage: Concepts and Cases. Pearson.
• Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2020). Entrepreneurship. McGraw-Hill Education.
• Scarborough, N. M. (2018). Essentials of Entrepreneurship and Small Business Management. Pearson.
• Ross, S. A., Westerfield, R. W., & Jaffe, J. (2019). Corporate Finance. McGraw-Hill Education.
• Porter, M. E. (1985). Competitive Advantage. Free Press.
• David, F. R. (2017). Strategic Management: Concepts and Cases. Pearson.
• Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. John Wiley & Sons.
• Ries, E. (2011). The Lean Startup. Crown Business.
• Block, Z., & MacMillan, I. C. (2010). The Entrepreneur's Guide to Building a High-Growth Business. McGraw-Hill Education.
• Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.