Dynamic Business Trends and Motivations

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Questions and Answers

What is the term given to any factors that help a business to succeed when competing against rivals?

Product Differentiation

Competitive Advantage (correct)

Business Strategy

Market Research

Why is it important to ask "Why not?" when thinking about new business ideas?

Asking "Why not?" encourages creative thinking and helps to challenge conventional assumptions. This can lead to new ideas and innovations.

A business can benefit from adapting existing products and services because it usually requires less research and development.

True

What are three main reasons why new business ideas emerge?

New business ideas emerge due to changes in consumer tastes, products and services becoming obsolete, and changes in technology. Signup and view all the answers

Why might a business choose to adapt an existing product rather than developing a completely new product?

All of the above Signup and view all the answers

What is one major way that new technology can impact the business world?

New technology can make existing products and services obsolete. Signup and view all the answers

What is the difference between minor changes and dramatic innovations?

Minor changes are small adjustments to existing products or services, while dramatic innovations are entirely new products or services that often introduce transformative changes to the market. Signup and view all the answers

How can a business ensure that they are successful when launching a new product?

A business should focus on ensuring their new product is original and relevant to the market, monitor competitor activity, build customer loyalty by providing excellent products and services, and constantly adapt to changing market dynamics. Signup and view all the answers

How can businesses encourage and use ideas from their employees?

Businesses can encourage and use ideas from their employees by creating a culture of open communication, providing channels for employees to share their ideas, and recognizing and rewarding employees for their contributions. Signup and view all the answers

What was the key idea behind the invention of the cat's eye reflector?

The cat's eye reflector was designed to be self-cleaning, with a rubberised top that would give when cars ran over it, wiping the reflector clean. Signup and view all the answers

Percy Shaw's invention of the cat's eye reflector proved that asking "Why not?" can lead to significant and valuable ideas.

True Signup and view all the answers

Study Notes

Dynamic Nature of Business

Business success isn't guaranteed due to changes in technology, fashion, and the economy.
Businesses need to adapt quickly to changing circumstances.
Customer tastes and needs are influenced by factors beyond a company's control.
The 2016 European referendum is an example of an unexpected event forcing businesses to adjust.
Successful businesses adapt to new conditions.
Snapchat, launched in 2011, illustrates rapid business growth due to adapting to changing technology and consumer desires.
Starting a new business requires quick decision making due to limited resources.

Motivators for Starting a New Business

Desire for achievement and satisfaction.
The desire to be your own boss and have independent decision-making power.
Financial gain is a significant motivator.
Many entrepreneurs start franchises, like Subway, for the potential profit of an existing business model.
Starting your own business involves making quick decisions, which can be challenging.

Key Qualities for Starting a Business

Personal qualities like determination, resilience, enthusiasm, and hard work.
Skills such as listening, planning, organizing, persuading, and managing others.
Resources such as finding help with finance or advice.
Exceptional knowledge of a specific topic.

How New Business Ideas Are Developed

Often start as trials while working at another job.
A business plan guides the process for raising capital.
A plan must include clear business aims, strategy, financial forecasts, and financial requirements.
A strong sales forecast based on market research is very critical.

Why New Business Ideas Emerge

Changing consumer tastes continuously create new openings.
Obsolescence of existing products and services.
Technological advancement.
Consumers may switch from established brands to new ones due to changing tastes and prices.
Existing businesses may struggle when tastes and technology change.

Identifying and Valuing New Business Ideas

Businesses need to anticipate and act on changing consumer habits.
Businesses need to adapt to advancements in technology.
A new idea can prove more successful than adapting or maintaining an existing product (e.g. iPhone replacing iPods).
Keeping up with technology is critical for success.
Original ideas often create or improve competitive advantage.
Adapting products to respond to market changes (e.g., new chocolate bars, improved crumpets) can be successful.
Businesses should adapt to changing preferences and technology.
Maintaining a variety of ideas in a business can improve its adaptability.

External Influences on Business

A new business will have to adapt to changing market conditions.
Many business start-ups need funding.
Customer loyalty is important for maintaining success.

Importance of Creativity and Innovation

Asking "why" and "why not" fosters creativity and innovation.
Creative thinking leads to original business ideas.
The willingness to adapt existing products and services.
Sharing original ideas within a business is essential.
Businesses need staff that engage with their roles and are not afraid of experimenting with ideas.

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Description

Explore the dynamic nature of businesses and the various motivators that drive individuals to start their own ventures. This quiz covers the influence of external factors on business adaptability, the desire for independence, and financial incentives. Dive into examples like Snapchat and franchise operations for a broader understanding.