24 Questions
What is the potential long-term benefit of providing quality products and services?
An increase in market share
Why do entrepreneurs gather information about their customers and competitors?
To make well-informed decisions
What is the primary focus of goal setting?
Making a general direction or aim
What is the benefit of ensuring quality in a business?
Minimizing mistakes and reducing rework
What is an important aspect of a business's social responsibility?
Meeting government standards
What is the result of providing quality products and services to customers?
Increased customer satisfaction
What does a successful entrepreneur do to ensure informed decision-making?
Collect information from various sources
What is a potential long-term benefit of increased customer satisfaction?
Increased market share
What is the primary goal of opportunity evaluation?
To assess the feasibility of a product or service
What is a critical element of the entrepreneurial process?
Opportunity evaluation
What is the purpose of evaluating the creation and length of an opportunity?
To understand the duration of the opportunity
What is an important aspect of evaluating a product or service?
Its competitive advantage
What is a key question to ask when evaluating a market opportunity?
What is the target market?
What is the purpose of evaluating the fit of an opportunity with the entrepreneur's personal skills and goals?
To determine the feasibility of the opportunity
What is an important aspect of evaluating a market opportunity?
Its industry characteristics
What is the purpose of evaluating the differential advantage of an opportunity?
To assess the competitive environment
What is the main purpose of environmental scanning in business?
To gather information from many sources for enhanced probability of success
What is included in the demographic environment assessment?
Age profile, income distribution, and education profile
What does the internal environment of a business include?
Raw material, production/operation, finance, and human resource
Why is it essential to assess the availability of raw material?
To avoid shortage of raw material that can affect production
What is the role of the human resource component in internal environment?
To estimate the cost and level of competition in hiring and retaining human resources
What determines the nature and degree of entrepreneurial activity at any time?
Financial, institutional, cultural, and personality factors
Why should traditional culture be protected?
To promote innovation, motivation, and development
What is the objective of environmental scanning in business?
To maximize the information for enhanced probability of success
Study Notes
Opportunity Development
- Involves combining resources to pursue a market opportunity identified
- Requires systematic research to refine the idea into a high-potential opportunity
- Aims to transform the idea into marketable items
Opportunity Evaluation
- Critical element of the entrepreneurial process
- Evaluates whether the product or service has the returns needed to justify the investment and risk
- Assesses the creation and length of the opportunity, its real and perceived value, risks, and returns
- Considers fit with the entrepreneur's personal skills and goals, and differential advantage in the competitive environment
Factors for Opportunity Evaluation
- Product or Service:
- Description, differentiator, purpose, and need it fills
- Competitive advantage and benefits
- Required customer care support
- Market Opportunity:
- Market demand and target market
- Industry characteristics (growth rates, change, entry barriers)
- Market share expectations
Demographic Environment
- Assesses the overall population pattern of a given geographical region
- Includes variables like age profile, distribution, sex, education profile, and income distribution
- Helps identify the size of target customers
Internal Environment
- Components:
- Raw Material: Availability and potential future shortage
- Production/Operation: Availability of machineries, equipment, tools, and techniques
- Finance: Total requirements, start-up expenses, fixed expenses, and running expenses
- Human Resource: Kind of human resources required, demand, and supply in the market
- Helps estimate costs and level of competition in hiring and retaining human resources
Environmental Factors Affecting Entrepreneurship
- Combination of financial, institutional, cultural, and personality factors determines entrepreneurial activity
- Affects the nature and degree of entrepreneurial activity at any time
Benefits of Quality
- Cost-effectiveness: Minimizes mistakes and reduces costs
- Increase in market share: Satisfied customers lead to repeat business and recommendations
- Better profitability: Satisfied customers increase sales, market share, and profits
- Social responsibility: Meets community standards and fulfills social responsibility
- Reputation: Improves reputation for competition and growth
Information-seeking
- Successful entrepreneurs collect information about customers, competitors, suppliers, technology, and markets
- Gathering relevant information ensures well-informed decisions
Goal Setting
- A goal is a general direction or long-term aim
- Not specific, not necessarily time-bound, and something to strive for by meeting certain objectives
This quiz covers the process of identifying and developing market opportunities, including research, evaluation, and transformation into marketable products or services.
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