Podcast
Questions and Answers
What is the primary focus of the 'Opportunity Assessment' step in the business idea development process?
What is the primary focus of the 'Opportunity Assessment' step in the business idea development process?
- Identifying and analyzing potential competitors in the market.
- Evaluating the financial viability of a business idea.
- Assessing the feasibility of implementing a business idea. (correct)
- Determining the potential size and growth of the target market.
Which of the following is NOT a key aspect considered in the 'Product or Service' element of opportunity assessment?
Which of the following is NOT a key aspect considered in the 'Product or Service' element of opportunity assessment?
- The competitive edge of the product or service compared to existing products or services.
- The uniqueness of the product or service compared to existing offerings.
- The need that the product or service aims to address.
- The potential profitability of the product or service. (correct)
In the context of 'Market Opportunity' assessment, what is the primary concern regarding the 'bargaining power of existing products and services'?
In the context of 'Market Opportunity' assessment, what is the primary concern regarding the 'bargaining power of existing products and services'?
- How much control existing businesses have over the pricing of their products or services. (correct)
- How well existing products or services meet the needs of the target market.
- How likely customers are to switch from existing products to the new product.
- How easy it is for existing businesses to lower their prices to compete.
What is the most important factor in determining the 'Costing and Pricing' element of opportunity assessment?
What is the most important factor in determining the 'Costing and Pricing' element of opportunity assessment?
Which of the following is NOT a source of inspiration for developing business ideas?
Which of the following is NOT a source of inspiration for developing business ideas?
Which business idea best exemplifies the use of a 'Product or Service' assessment?
Which business idea best exemplifies the use of a 'Product or Service' assessment?
Which of the following is a major barrier to entry for a new business in a highly competitive market?
Which of the following is a major barrier to entry for a new business in a highly competitive market?
What is the primary purpose of the 'Target Market' identification in the opportunity assessment?
What is the primary purpose of the 'Target Market' identification in the opportunity assessment?
What is an example of annoyance-driven innovation?
What is an example of annoyance-driven innovation?
What strategy involves looking for gaps in the market that larger companies overlook?
What strategy involves looking for gaps in the market that larger companies overlook?
What is a potential advantage of offering smaller packaging of a product?
What is a potential advantage of offering smaller packaging of a product?
Which of the following is not a suggested source for new business opportunities?
Which of the following is not a suggested source for new business opportunities?
What can be considered a business opportunity from the process of production?
What can be considered a business opportunity from the process of production?
What is a primary factor that can lead someone to establish their own business after employment?
What is a primary factor that can lead someone to establish their own business after employment?
Which creative approach can entrepreneurs take to develop new products?
Which creative approach can entrepreneurs take to develop new products?
What is the potential benefit of talking to shoppers about their wants?
What is the potential benefit of talking to shoppers about their wants?
Which of the following is NOT considered a factor of the macroenvironment?
Which of the following is NOT considered a factor of the macroenvironment?
What is the recommended approach for starting a new business venture?
What is the recommended approach for starting a new business venture?
Which of the following is NOT an example of a source of business ideas?
Which of the following is NOT an example of a source of business ideas?
Which of the following is a way to differentiate a product in the market?
Which of the following is a way to differentiate a product in the market?
What is the main focus of the internal environment of a business?
What is the main focus of the internal environment of a business?
Why is it important to scan the market before starting a business?
Why is it important to scan the market before starting a business?
Which of the following is NOT an aspect of the microenvironment?
Which of the following is NOT an aspect of the microenvironment?
What is the significance of the statement "The hardest part is starting..." by Simon Sinek?
What is the significance of the statement "The hardest part is starting..." by Simon Sinek?
Flashcards
Business Cycle
Business Cycle
The series of stages a business goes through: opportunity, development, formation, implementation, and wind-up.
Macroenvironment
Macroenvironment
External factors impacting all businesses that are beyond their control; includes political, economic, social, technological, environmental, and legal factors.
Microenvironment
Microenvironment
External factors directly influencing a specific business; includes competitors, suppliers, and customers with partial control.
Internal Environment
Internal Environment
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Sources of Business Idea
Sources of Business Idea
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Identifying Business Opportunities
Identifying Business Opportunities
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Differentiation in Products
Differentiation in Products
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Simon Sinek Quote
Simon Sinek Quote
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Annoyance-Driven Innovation
Annoyance-Driven Innovation
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Cheaper Product Versions
Cheaper Product Versions
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Finding New Niches
Finding New Niches
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Innovative Processes
Innovative Processes
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Smaller Packaging
Smaller Packaging
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Mix and Match
Mix and Match
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Hobby to Business
Hobby to Business
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Customer Conversations
Customer Conversations
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Opportunity Assessment
Opportunity Assessment
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Product or Service
Product or Service
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Market Opportunity
Market Opportunity
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Costing and Pricing
Costing and Pricing
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Target Market
Target Market
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Implementation Feasibility
Implementation Feasibility
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Competitive Edge
Competitive Edge
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Study Notes
Business Enterprise Simulation - Week 1
- This subject combines accounting, business, and management (ABM) principles.
- The subject focuses on real-world business activities, following the business cycle.
- This includes the stages of searching for opportunities, developing products/services, forming, organizing, implementing, and controlling businesses as well as winding up a business.
- Relevant management reporting is assessed within the context of ethical standards and social responsibility.
- Appropriate technology use is also considered.
Most Essential Learning Competencies
- A key competency is scanning the market to identify and capitalize on potential business opportunities.
Top 5 Businesses in Your Area
- Identify the top 5 businesses in your local area.
- Analyze why these businesses are successful.
Quote
- "The hardest part is starting. Once you get that out of the way, you'll find the rest of the journey much easier." - Simon Sinek
Scanning the Market
- The starting point of any new venture is understanding the macro, micro, and internal environments.
- Recognizing opportunities and understanding the business's operating environment.
- Opportunity identification should come before product/service design.
3 Environments Affecting the Business
- Macroenvironment: Consists of external factors that affect all businesses, typically beyond the company's control (e.g., PESTEL factors).
- Microenvironment: Includes external factors directly affecting a specific business, including competitors, suppliers, customers, intermediaries, and publics - some degree of control possible.
- Internal Environment: Consists of factors within the organization – employees, management, resources, processes, mission, and vision – fully controllable.
Sources of Business Ideas
- Ideas can come from products, processes, people, and relationships
Business Opportunities from the Product
- A. Differentiating existing products (size, shape, color, content, flavor)
- B. Identifying "next" trends and leveraging technologies to innovate.
- C. Addressing consumer complaints or frustrations (annoyance-driven innovation)
- D. Developing cheaper versions of existing products without compromising quality
Business Opportunities from the Process of Production and Distribution
- A. Identifying and filling unmet needs in established industries.
- B. Innovating production processes (e.g. combining frying/roasting).
- C. Using smaller packaging for cheaper offerings
- D. Combining existing products.
Business Opportunities Sourced from the Person
- Examining personal interests, hobbies, skills, dreams, and experiences as potential business avenues.
- Engaging with consumers/customers to understand their needs and desires.
- Leveraging skills/experiences from previous roles as a foundation for new ventures. (e.g., teachers opening preschools/cooks opening restaurants)
Business Opportunities from Relationships
- Partnerships with friends/classmates
- Identifying local community needs as business ideas.
- Learning from family/relatives who are already involved in business.
Performance Task No. 1
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The class is divided into groups, each responsible for proposing a business idea rooted in an identified local problem or opportunity.
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Groups must define assigned category;
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Propose a business idea;
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Describe proposals with features/services;
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Identify target markets
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Concepts should reflect creativity, practicality, and marketability.
Opportunity Assessment
- Evaluating the feasibility of identified opportunities.
- Assessing the likelihood that the opportunity can be realized/implemented.
7 Elements of Opportunity Assessment
- 1. Product/Service: Unique features, consumer motivation, market needs, and competitive edge.
- 2. Market Opportunity: Ease of entry, market competitiveness, bargaining power of existing products/services, target market.
- 3. Costing & Pricing: Affordability, production costs, and competitive pricing
- 4. Profitability: Motivations for business ventures are profits, so profitability is crucial.
- 5. Resource Requirements: Intermediate inputs (raw materials), and factor inputs(labor, capital, and technology).
- 6. Risks: Internal (controllable) and external (uncontrollable) risks associated with ventures.
- 7. Entrepreneurial Commitment: Motivations, skills, experience, resources, and time devoted to business operations.
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Description
Explore the fundamentals of business principles through real-world simulations. This quiz covers topics such as identifying opportunities, product development, and ethical management practices. Test your understanding of market analysis and the factors contributing to local business success.
