The document defines several key business strategy concepts. It explains that intellectual capital has three components: human capital, structural capital, and customer capital. It defines competitive advantage as factors that allow a company to outperform competitors. Whole Foods' competitive advantages include its employees' passion for food and customer service. The document also discusses the differences between goals and objectives, and the three strategic options of cost advantage, differentiation advantage, and focus.

1. CHAPTER 3 DISCUSSION QUESTIONS Define intellectual capital & explain its 3 components. Define competitive advantage & explain Whole Foods’ strategy. Explain the 4 aspects of their businesses that entrepreneurs should examine to define their companies’ competitive advantages. 4) What are the 3 ways that a clearly defined vision helps a company? 5) What is a mission statement & what are its main elements? 6) Look up FPU's mission statement. How well do we follow it? 7) Define strengths, weaknesses, opportunities, & threats. 8) What are "key success factors?” 9) Explain the difference between: direct competitors, significant competitors, & indirect competitors. 10) What is the difference between goals & objectives? 11) Explain the 3 strategic options.

2. INTELLECTUAL CAPITAL -ALL RESURCES THAT DETERMINE THE VALUE & THE COMPETITIVENESS OF COMPANY.

3. 3 COMPONENTS OF INTELLECTUAL CAPITAL 1) HUMAN CAPITAL -TALENT & SKILLS OF A COMPANY’S EMPLOYEES. 2) STRUCTURAL CAPITAL -ACCUMULATED KNOWLEDGE & EXPERIENCE THAT A COMPANY POSSESSES. 3) CUSTOMER CAPITAL -REPUTATION & RELATIONSHIPS THAT A COMPANY BUILDS OVER TIME WITH ITS CUSTOMERS.

4. COMPETITIVE ADVANTAGE -”THE FACTORS BY WHICH A COMPANY SETS ITSELF APART FROM ITS COMPETITORS.” -OCCURS WHEN AN ORGANIZATION ACQUIRES OR DEVELOPS AN ATTRIBUTE(S) THAT ALLOWS IT TO OUTPERFORM ITS COMPETITORS. -ENABLES AN ORGANIZATION TO CREATE SUPERIOR VALUE FOR ITS CUSTOMERS & SUPERIOR PROFITS FOR ITSELF. -2 BASIC TYPES: COST ADVANTAGE DIFFERENTIATION ADVANTAGE

5. WHOLE FOODS & HUMAN CAPITAL COMPETITIVE ADVANTAGE: -EMPLOYEES: A LOVE OF FOOD & DEDICATION TO CUSTOMER SERVICE.

6. EXAMPLES OF COMPETITIVE ADVANTAGE

7. PRICE

8. CONVENIENCE

9. LOCATION

10. LOYALTY

11. BRAND RECOGNITION

12. QUALITY

13. ENTREPRENEURS SHOULD EXAMINE 4 ASPECTS OF THEIR BUSINESSES TO DEFINE THEIR COMPANIE’S COMPETITIVE ADVANTAGES

14. 1) PRODUCTS THEY SELL -WHAT IS UNIQUE ABOUT THE PRODUCTS? -DO THEY SAVE CUSTOMERS TIME OR $? -ARE THEY MORE RELIABLE OR DEPENDABLE THAN COMPETITORS?

15. 2) SERVICE THEY PROVIDE -WHAT SERVICES DOES THE COMPANY PROVIDE TO DELIVER ADDED VALUE & A SUPERIOR SHOPPING EXPERIENCE FOR CUSTOMERS?

16. 3) PRICING THEY OFFER -LOW PRICE GIVES SOME CUSTOMERS AN INCENTIVE TO BUY. -LOWEST PRICE IS NOT ALWAYS BEST WAY TO CREATE A UNIQUE IMAGE.

17. 4) WAY THEY SELL -CUSTOMERS WANT TO BE ABLE TO CONDUCT BUSINESS WHEN THEY WANT TO.

18. VISION -”THE RESULT OF A DREAM THAT DOES NOT EXIST YET & THE ABILITY TO PAINT A PICTURE OF THAT DREAM FOR EVERYONE TO SEE.” -ANSWERS THE QUESTION: -WHERE ARE WE GOING? -BEING “FUTURE-FOCUSED” TOUCHES EVERYONE ASSOCIATED WITH THE COMPANY: -EMPLOYEES -CUSTOMERS -COMMUNITY

19. HOW A VISION HELPS A COMPANY 1) VISION PROVIDES DIRECTION -FOCUSES EVERYONE’S ATTENTION ON THE FUTURE & HOW TO GET THERE. 2) VISION DETERMINES DECISIONS -INFLUENCES ALL DECISIONS (BIG & SMALL) THAT EVERYONE (OWNERS, MANAGERS, EMPLOYEES) MAKE. 3) VISION MOTIVATES PEOPLE -EXCITES & IGNITES PEOPLE INTO ACTION.

20. MISSION STATEMENT -”AN ENDURING DECLARATION OF A COMPANY’S PURPOSE.” -ESTABLISHES THE PURPOSE OF THE BUSINESS & GIVES THE COMPANY A SENSE OF DIRECTION. -ADDRESSES THE QUESTION: -WHAT BUSINESS AM I IN? -DOES NOT NEED TO BE LENGTH TO BE EFFECTIVE.

21. KEY ELEMENTS OF A MISSION STATEMENT 1) PURPOSE -WHAT ARE WE IN BUSINESS TO ACCOMPLISH? 2) BUSINESS -HOW ARE WE GOING TO ACCOMPLISH OUR PUSPOSE? 3) VALUES -WHAT PRINCIPLES & BELIEFS FORM THE FOUNDATION OF THE WAY WE DO BUSINESS?

22. CAN YOU GUESS WHAT COMPANIES THE FOLLOWING MISSION STATEMENTS BELONG TO?

23. “ To qualify its students for personal success, and direct usefulness in life; And its purposes, to promote the public welfare by exercising an influence in behalf of humanity and civilization, teaching the blessings of liberty regulated by law, and inculcating love and reverence for the great principles of government as derived from the inalienable rights of man to life, liberty, and the pursuit of happiness."

24. “……… prepares its students to become active, engaged citizens and leaders of conscience. Whether at the undergraduate, graduate or professional level, its academic programs are grounded in a liberal arts tradition and are unified by the theme of the Individual and Community.“

25. "To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete."

26. ““ Help people save money so they can live better."

27. "Never stop exploring."

28. “… seeks to be the leading brand of quality lifestyle accessories offering classic, modern American styling.”

29. GOALS VS OBJECTIVES GOALS -”THE BROAD, LONG-RANGE ATTRIBUTES A BUSINESS SEEKS TO ACCOMPLISH.” -THEY TEND TO BE GENERAL. OBJECTIVES -MORE SPECIFIC TARGETS OF PERFORMANCE, COMMONLY ADDRESSING AREAS SUCH AS PROFITABILITY, PRODUCTIVITY, GROWTH, & OTHER KEY ASPECTS OF A BUSINESS.

30. CHARACTERISTICS OF OBJECTIVES -THEY ARE: SPECIFIC MEASURABLE ASSIGNABLE REALISTIC, YET CHALLENGING TIMELY WRITTEN DOWN

31. SWOT ANALYSIS -”A STRATEGIC PLANNING METHOD USED TO EVALUATE A BUSINESS VENTURE.” -IT INVOLVES SPECIFYING THE OBJECTIVE OF THE BUSINESS VENTURE & IDENTIFYING THE INTERNAL & EXTERNAL FACTORS THAT ARE FAVORABLE & UNFAVORABLE TO ACHIEVING THAT OBJECTIVE.

33. STRENGTHS -POSITIVE INTERNAL FACTORS THAT A COMPANY CAN USE TO ACCOMPLISH ITS MISSION, GOALS, & OBJECTIVES. WEAKNESSES -NEGATIVE INTERNAL FACTORS THAT INHIBIT THE ACCOMPLISHMENT OF A COMPANY’S MISSION, GOALS, & OBJECTIVES.

34. OPPORTUNITIES -POSITIVE EXTERNAL OPTIONS THAT A FIRM CAN EXPLOIT TO ACCOMPLISH ITS MISSION, GOALS, & OBJECTIVES. THREATS -NEGATIVE EXTERNAL FACTORS THAT INHIBIT A COMPANY’S ABILITY TO ACHIEVE ITS MISSION, GOALS, & OBJECTIVES.

35. KEY SUCCESS FACTORS -”THE FACTORS THAT DETERMINE A COMPANY’S ABILITY TO COMPETE SUCCESSFULLY IN AN INDUSTRY.” -IDENTIFYING & MANIPULATING THESE VARIABLES IS HOW A SMALL BUSINESS GAINS A COMPETITIVE ADVANTAGE. -COMPANIES THAT UNDERSTAND THESE KSF’S TEND TO BE LEADERS OF THE PACK.