chapter 14 business ideas

Question 1

what are internal sources

Answer 1

own strengths

own weaknesses

Question 2

list internal sources for new entrepreneurs

Answer 2

1 skills and hobbies

2 experiences

Question 3

list internal sources for business

Answer 3

1 R and D
2 Intrapreneurship
3 Brainstorming
4 sales personnel

Question 4

what are external sources

Answer 4

opportunities in the outside market

threats in outside market

Question 5

list external sources for new entrepreneurs

Answer 5

1 family and friends
2 media
3 import substitution
4 state agencies

Question 6

list external sources for business

Answer 6

1 media
2 import substitution 
3 competitors
4 customer feedback
5 use a market research company

Question 7

explain skills and hobbies internal for new entrepreneurs

Answer 7

turning a talent into a profitable business

Bill Gates had an interest in software- at 13 was developing software- led to Microsoft

Question 8

explain experiences internal for new entrepreneurs

Answer 8

learn from life in a diff country

Richard Branson had bad experiences on other airlines so set up Virgin Atlantic Airways

Question 9

explain R&D internal for business

Answer 9

develop new products
improve existing products
Coca Cola come up with new flavours and products to maintain sales against competition

Question 10

explain intrapreneurship internal for business

Answer 10

ideas from employees though suggestion schemes or boxes
a good idea may be rewarsed by a bonus
managers need to he open to new ideas
Sony playstation was a worldwide success so microsoft employees proposed their idea for the Xbox to Bill Gates

Question 11

explain brainstorming internal for business

Answer 11

thisbinvolves people from diff areas of the business coming together and creatively thinking up new ideas
the diversity of the team assists in the creativity process
all ideas are called out
leader writes down ideas
all ideas are viable
every idea is examined using SWOT
worthwhile ideas go forward

Question 12

explain sales personnel internal for business

Answer 12

market research or feedback from sales representatives is a major source of product innovation and new product ideas

Question 13

explain family and friends external for new entrepreneurs

Answer 13

complaining about a product
lack of a product
Bistro two wives complained to husbands about making gravy

Question 14

explain media external for new entrepreneurs

Answer 14

following trends eg on instagram

Question 15

explain import substitution external for new entrepreneurs

Answer 15

replacing an imported product with a home produced product

Question 16

explain state agencies external for new entrepreneurs

Answer 16

LEO and enterprise Ireland mentor and give their market research to help entrepreneurs

Question 17

explain media external source for business

Answer 17

seeing something on TV
reading an article
lack of a product
reports on men’s grooming- grooming rooms ‘Males’ opened in Dublin

Question 18

explain import substitution external for business

Answer 18

Joe Murphy ‘Tayto’

Geoff Read ‘Ballygowan’

Question 19

explain competitors external for business

Answer 19

monitoring competitors and copying some of their product ideas, while being mindful of patent and copyright law
Samsung and Apple
Coca Cola introduced Deep River Rock

Question 20

explain customer feedback external source for businesses

Answer 20

customer complaint/feedback could result in changes or in further developments of existing products
Pizza Hut introduced four for all pizza for families
McDonalds introduced salads and fruits

Question 21

explain use a market research company external for businesses

Answer 21

to identify gaps in the market and market trends

companies can then exploit these gaps or niche markets

Question 22

list development process of a new product

Answer 22

1 idea generation
2 product screening
3 concept development
4 feasibility study
5 prototype development
6 test marketing
7 product launch

Question 23

1 idea generation

Answer 23

as many suggestions possible
internal sources
external sources
brainstorming

Question 24

2 product screening

Answer 24

all ideas are vetted and the impractical and unworkable ideas are dropped leaving the most viable ones for further examination and development
SWOT
careful screening helps businesses avoid huge expenses in developing ideas that str subsequently not marketable
ensures that good opportunities aren’t lost

Question 25

3 concept debelopment

Answer 25

what will the product do what will the product look like what is its USP concept development gives the business s specific plan to follow to develop the product further

Question 26

4 feasibility study

Answer 26

breakeven point cash flow forecast state agencies provide grants for this research this is carried out to assess if a product has potential it looks whether it can be produced technically (production feasibility) if it will be profitable (financial feasibility) it seeks answers to questions such as what will it cost to produce and can the business afford it

Question 27

5 prototype debelopment

Answer 27

developing a sample or model of a product it’s produced to see what materials are required to make it it can be used to test the product to see if it conforms to certain standards to determine what adjustments/ improvements have to be made before deciding to go into full production

Question 28

6 test marketing

Answer 28

it involves doing a small scale trial to identify possible faults to assess customer reaction the product is tested on a sample of potential customers product may be refined based on responses reduces risk of failure

Question 29

7 product launch

Answer 29

``` full scale production sale in market engage in a marketing campaign consumers aware of product consumers desire for product ```

Question 30

skoda kodiaq 1 idea generation

Answer 30

employees in R and D | brainstormed ideas

Question 31

Skoda Kodiaq 2 product screening

Answer 31

new car considered the market segment they were in but decided a gap existed for a large sport SUV

Question 32

Skoda Kodiaq 3 concept development

Answer 32

develop a large and affordable 7 seater SUV attract new customers USP would be windscreen ice scraper and umbrellas at front doors

Question 33

Skoda Kodiaq 4 feasibility study

Answer 33

production feasibility it could be made | financial feasibility sufficient sales to generate a profit

Question 34

Skoda Kodiaq 5 prototype debelopment

Answer 34

made 47 prototypes | covered 700,000 km

Question 35

Skoda Kodiaq 6 test marketing

Answer 35

roadshow to show Irish customers | feedback was collected

Question 36

Skoda Kodiaq 7 product launch

Answer 36

extensive advertising campaihn | pre orders for 50% of their projected sales

Question 37

stakeholders that use the business plan

Answer 37

employees- job security and wage increases shareholders- ROI and dividend financial institutions- ability to repay loan managers- bonus for reaching targets suppliers- creditworthiness, sells goods in credit state agencies- grants