Podcast
Questions and Answers
What is the first criteria outlined in the module for a business case?
What is the first criteria outlined in the module for a business case?
What does 'red ocean' signify in the context of market opportunity?
What does 'red ocean' signify in the context of market opportunity?
Why does the speaker prefer to invest in a market that's enduring and growing?
Why does the speaker prefer to invest in a market that's enduring and growing?
What is the speaker's analogy for an ideal market opportunity?
What is the speaker's analogy for an ideal market opportunity?
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What represents the potential business impact of any initiative?
What represents the potential business impact of any initiative?
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What is one of the most critical elements of any business case?
What is one of the most critical elements of any business case?
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What is the benefit of the business case, as mentioned in the text?
What is the benefit of the business case, as mentioned in the text?
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What is the critical question for measurement, as per the text?
What is the critical question for measurement, as per the text?
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What should leaders focus on when evaluating a proposed solution, based on the text?
What should leaders focus on when evaluating a proposed solution, based on the text?
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What are the two simple questions at the heart of understanding the true business need, as mentioned in the text?
What are the two simple questions at the heart of understanding the true business need, as mentioned in the text?
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What is the primary focus of continuously asking 'why' and 'how do you know', according to the text?
What is the primary focus of continuously asking 'why' and 'how do you know', according to the text?
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What should be able to change at the end of the business case, based on the text?
What should be able to change at the end of the business case, based on the text?
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What do venture capital firms prioritize when funding projects?
What do venture capital firms prioritize when funding projects?
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What is the preferred focus when evaluating projects?
What is the preferred focus when evaluating projects?
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What is essential for projects to ensure sustained success and competitiveness?
What is essential for projects to ensure sustained success and competitiveness?
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What do investors favor when considering projects?
What do investors favor when considering projects?
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What is the crucial component of a business case's competitive advantage?
What is the crucial component of a business case's competitive advantage?
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What do investors assess when evaluating potential market opportunity?
What do investors assess when evaluating potential market opportunity?
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What is crucial for the success of a business case?
What is crucial for the success of a business case?
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What is important when defining the pain point being solved?
What is important when defining the pain point being solved?
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What did Novelis develop to address Coca-Cola's sales challenges?
What did Novelis develop to address Coca-Cola's sales challenges?
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What was Coca-Cola's main issue that affected sales?
What was Coca-Cola's main issue that affected sales?
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What are venture capital firms more inclined to fund?
What are venture capital firms more inclined to fund?
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What decision did the chief financial officer make regarding a declining line of business?
What decision did the chief financial officer make regarding a declining line of business?
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What must a business case articulate to ensure a return on investment?
What must a business case articulate to ensure a return on investment?
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What is crucial to define in a business case for investment?
What is crucial to define in a business case for investment?
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What is emphasized as a key factor in investment decisions by venture capital firms?
What is emphasized as a key factor in investment decisions by venture capital firms?
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What influences a business case's approval according to the text?
What influences a business case's approval according to the text?
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What are companies reluctant to invest in according to the text?
What are companies reluctant to invest in according to the text?
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What is suggested to identify critical success factors and risks in a business case?
What is suggested to identify critical success factors and risks in a business case?
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Why is the team executing the business case considered important according to the text?
Why is the team executing the business case considered important according to the text?
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What is used as an analogy to emphasize the importance of articulating how the investment will be paid off?
What is used as an analogy to emphasize the importance of articulating how the investment will be paid off?
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What prompted the need for a business case for investment according to the text?
What prompted the need for a business case for investment according to the text?
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What did the CFO question in the text?
What did the CFO question in the text?
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What is vital in the business case to gain approval according to the text?
What is vital in the business case to gain approval according to the text?
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What is as important as the plan itself in investment decisions according to the text?
What is as important as the plan itself in investment decisions according to the text?
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Study Notes
Key Elements of a Business Case for Investment
- A critical process in the organization was broken, prompting the need for a business case for investment to fix it.
- The business case was presented to the capital committee, highlighting the potential improvement in the process from below average to average after the investment.
- The CFO questioned the point of investing a significant amount of money just to achieve an average outcome.
- Companies are reluctant to invest in activities that don't differentiate them or improve performance, but may invest in critical yet marginal business cases.
- The business case must articulate a business model that ensures a return on investment, including market understanding, competition, pricing, costs, and revenue.
- It's crucial to define the break-even point, internal rate of return, investment amount, and utilization of the investment.
- A personal financial analogy is used to emphasize the importance of articulating how the investment will be paid off.
- Identifying and transparently addressing the risks of the project is vital in the business case to gain approval.
- A pre-action review technique is suggested to identify critical success factors and risks that differentiate between success and failure.
- The team executing the business case is as important as the plan itself, as the ability to execute is a crucial aspect of investment decisions.
- The panel of venture capital firms emphasized that the entrepreneur's capabilities are a key factor in investment decisions, even more so than the technology or patents.
- A business case's approval is influenced by four key criteria: the broken process, the business model, risk identification, and the capability of the executing team.
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Description
Test your knowledge of the key elements of a business case for investment with this quiz. Explore the critical factors that influence investment decisions, including market understanding, competition, pricing, costs, and revenue. Understand the importance of articulating a clear business model, identifying risks, defining financial metrics, and evaluating the capability of the executing team. Discover the essential criteria that influence the approval of a business case for investment.