30 Questions
What type of information does an organization collect during the environmental scanning process?
Information about changes in the environment
Which of the following is an example of an external opportunity for an organization?
External factors that can help gain competitive advantage
How can a company utilize its internal strengths according to the text?
By conducting a thorough analysis and using them to improve business
Which aspect of an organization is considered as an internal strength according to the text?
World-class customer service
What do weaknesses represent in the context of SWOT Analysis?
Areas where the organization needs improvement
In what way can a lack of marketing budget impact an organization's e-commerce visibility?
Lead to a decrease in website visibility
What does the Market Profile in the business study cover?
Methods of product distribution
Which component of the Marketing Studies involves analyzing the source of product supply?
Supply Analysis
What does Competitive Analysis in the business study focus on?
Quality and market acceptability of the product
Which Marketing Studies component involves assessing the distribution and cost of transportation?
Competitive Analysis
What is emphasized in Geographic Segmentation Strategy in the business study?
Approaches to penetrate the market niche
What is the focus of Program Analysis of Marketing Strategies in the business study?
Geographic segmentation strategy
What is a crucial factor to consider before venturing into a new business?
Believing in the product or service
Why should an entrepreneur analyze customers' profile when considering a new business?
To determine potential growth and success
What does effective distribution strategy help in achieving for a new business?
Securing customer loyalty and satisfaction
Why is it important to involve customers in suggesting improvements for a new product or service?
To ensure continuous product growth
What is one key purpose of knowing the competitors before starting a new business?
To identify gaps in the market
In the context of starting a new business, why is it important for the entrepreneur to convince customers that their product is unique?
To satisfy customers’ needs and wants better than existing products
What does the Financial Management aspect of a business plan primarily focus on?
Capital investment and funding sources
Which section of a business plan describes the physical layout of the building and the production equipment?
Production and Technology
What is the main purpose of a business plan according to the text?
To assess the viability of the business
Which aspect of a business plan involves projections over a period of one year and five years to determine ROI?
Financial Management
In a business plan, what does the Project Summary typically consist of?
Machineries and plant location
What does the Demographic Segmentation Strategy focus on?
Educational background and lifestyle
What does the Marketing Strategy aspect of a business plan focus on?
Analyzing market share and promotion strategies
In the context of Channel of Distribution, what does 'direct marketing' refer to?
Personal selling
What is the primary focus of the Pricing Strategy?
Attracting customers through price index
What aspect does Production Process mainly highlight?
Volume of production per shift
Which factor does Plant Rated Capacity focus on?
Monthly consumption of target market
'Machinery and Equipment' in production planning involves considerations about:
Spare parts availability
Study Notes
Environmental Scanning and Business Planning
- Environmental scanning involves collecting and analyzing information about the business environment to forecast changes and make informed decisions.
- It helps identify opportunities, threats, strengths, and weaknesses.
SWOT Analysis
- SWOT analysis helps identify an organization's core strengths, weaknesses, opportunities, and threats.
- Internal strengths: aspects of an organization that make it better than its competitors (e.g., having the best technological tools).
- Internal weaknesses: areas where the organization needs to improve to remain competitive (e.g., high debts, lack of capital).
- External opportunities: external factors that can help an organization gain a competitive advantage.
- External threats: external factors that can negatively impact an organization.
Market Analysis
- Market profile: market segmentation for the distribution of a product or service.
- Demand analysis: projected consumption in the first year, five years, and ten years of operation.
- Supply analysis: source of product supply (foreign or local suppliers).
- Competitive analysis: selling price, competing products, distribution, and cost of transportation.
Marketing Strategies
- Geographic segmentation strategy: identifying the target market and approaches to penetrate the market niche.
- Program analysis: discussion of marketing strategies, including distribution, pricing, promotion, and advertising.
Factors to Consider Before Starting a Business
- Know your product or service: believe in the product or service and its ability to satisfy customers' needs and wants.
- Analyze market potential: determine the customer base and their buying habits, income, and social status.
- Determine marketing strategy: develop an effective distribution strategy to reach customers.
- Know the competitors: analyze the competitive product advantage and market share.
Business Plan
- A business plan is a blueprint for success that assesses the viability of a business venture.
- It should include:
- Introduction: rationale and background of the study.
- Project summary: name of the firm, business description, and highlights of the findings.
- Management and personnel components: organizational structure and management team.
- Marketing studies: market analysis, marketing strategies, and program analysis.
- Production and technology: production process, machinery, and equipment.
- Financial management: capital investment, sources of funding, and financial projections.
General Format of a Business Plan
- I. Introduction: rationale and background of the study.
- II. Project summary: business description and highlights of the findings.
- III. Management and personnel components: organizational structure and management team.
- IV. Marketing studies: market analysis, marketing strategies, and program analysis.
- V. Production and technology: production process, machinery, and equipment.
- VI. Financial management: capital investment, sources of funding, and financial projections.
Explore the essential steps and strategies to consider before starting a new business venture. Learn about the significance of environmental scanning, SWOT analysis, and creating a comprehensive business plan with different phases.
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