Business Case

Question 1

Breakeven Units with Target Profit

Answer 1

Target Profit = CM x Units

Question 2

Weighted Average Formula

Answer 2

((N1 x Average 1) + (N2 x Average 2)) / Total N

Question 3

What to consider when evaluating the business

Answer 3

Target market, competition, core competencies, barriers to entry, business cycle stage, method to measure viability, opportunity cost

Question 4

Product Life Cycle Stages

Answer 4

Introduction, Growth, Maturity, Decline

Question 5

4 Main Types of Barriers to Entry

Answer 5

Legal, Technical, Strategic, Loyalty

Question 6

Opportunity Cost

Answer 6

The benefit you forego in choosing one course of action over another

Question 7

Breakeven Point per Unit

Answer 7

Fixed Costs / (Sales Price Per Unit – Variable Costs Per Unit)

Question 8

Cost per Subscriber

Answer 8

Cost of Mailing / Response Rate

Question 9

Market/External Impact Examples

Answer 9

• Competitors
• Economic Health
• Regulation / Government
• Industry Trends
• Geography / Climate

Question 10

Customer/Internal Impact Examples

Answer 10

• Internal Capabilities
  
  • Acquisitions
  • Manufacturing Capacity
  • Distribution Networks
• Brand Perception
• Exit Strategies
• Consumer Preferences

Question 11

Example Brainstorming Frameworks

Answer 11

Internal vs. External, The Supply Chain, Financial vs. Non-financial, Stakeholders, Long-term vs. Short-term, Customer Journey (AIDA)

Question 12

AIDA

Answer 12

Attention, Interest, Desire, Action

Question 13

4 Ps

Answer 13

Product, Price, Promotion, Place

Question 14

4 ways to segment customers

Answer 14

geographical, demographic, behavioral, psychological

Question 15

Breakeven in years

Answer 15

investment cost / annual profit

Question 16

return on investment (ROI)

Answer 16

(revenue - investment costs) / investment costs

Question 17

10 ways to improve a trash can

Answer 17

1. Odor - Add air freshener to it to ensure rotten smell is taken care of.
2. Trash level - Simple indicator lets people know the time to change it.
3. Integration with smart homes - Tell people the days trash hasn’t been removed.
4. Pest repellant - Inbuilt system to repel pests.
5. Food composter - Compost waste food into manure.
6. Compressor - Compress trash with a simple lever.
7. Compartments for different trash types.
8. Connect directly to trash lines for easy removal.
9. Integrate with vacuum cleaner to directly take in trash from cleaning.
10. Kid friendly - Small compartment for kids to tuck in small bits of trash without height issues

Question 18

Steps to answer favorite product question

Answer 18

business objective, user problems, solutions

Question 19

new product development process

Answer 19

idea generation, idea screening, concept development and testing, building a market strategy, product development, market testing, and market commercialization