Business ideas

Question 1

internal sources of business ideas

Answer 1

getting ideas from your own strengths and weaknesses

Question 2

R&D (Research and development)

Answer 2

Most big companies set up a special department. They research new discoveries/ideas that can either lead to the development of new products or the improvement of existing products.
eg. Coca Cola’s R&D researches new flavours to maintain sales against stiff competition.

Question 3

intrapreneurship/employees

Answer 3

Intrapreneurship means ideas from employees. The business can take advantage of their employees’ enterprise which can lead to new products/services. They can encourage this by setting up a formal employee suggestion scheme offering rewards.
eg. Microsoft employees saw the success of the Sony Playstation. They worked on a similar idea, the Xbox.

Question 4

Brainstorming

Answer 4

Brainstorming involves people from different departments of the business coming together and creatively thinking up new ideas. The group leader records all ideas and no ideas are dismissed at this stage. The business uses a SWOT analysis to analyse the potential of each idea.
eg. at a brainstorming session, Jack Dorsey came up with a new idea which was developed into Twitter

Question 5

Sales Personnel

Answer 5

Salespeople are closest to the marketplace. They give ideas from retailers or customers

Question 6

Skills and Hobbies

Answer 6

An entrepreneur may have special aptitudes or skills that they could turn into a profitable business. They may have been born with these talents or learned them over time.
eg. Bill Gates had an interest in software and started programming when he was 13. He set up Microsoft

Question 7

Experience/frustrations

Answer 7

an entrepreneur may have seen or learned something, or had something happen to them that could give them the idea for a profitable business. They may also be frustrated by a lack of something: a gap in the market.
eg Richard Branson set up Virgin Atlantic Airways because he was unhappy with the service of other airlines

Question 8

External sources of ideas

Answer 8

getting ideas from opportunities and threats in the outside market.

Question 9

Competitors

Answer 9

Businesses keep a close eye on competitors. If a rival company comes up with a new idea that appears successful, then other companies will produce a variation of the product. However they must not infringe copyrighted or patented ideas.
eg. Apple copied spotify and released apple music

Question 10

Customer Feedback

Answer 10

Customer requirements and suggestions can be a good source of new ideas. If enough customers demand something, then there is a gap in the market for it. A business can survey its customers for their opinions.
eg. pizza hut launched 4 for all pizza after observing customers

Question 11

State agencies

Answer 11

Irish government agencies provide ideas for new products and new markets.
eg. Enterprise Ireland set up an information centre that provides market research reports

Question 12

Import substitution

Answer 12

This is when a business makes an Irish product that replaces an imported product.
eg. Tayto, most crisps were from the UK

Question 13

Family & friends

Answer 13

An entrepreneur may come up with a business idea after hearing family/friends complain about a lack of a product/service. It may also lead to improvements to current products.
eg. gravy bisto was set up after a couple overheard their friends complaining about not making good gravy

Question 14

Media

Answer 14

An entrepreneur may get an idea from seeing something in a newspaper, magazine or on TV. The media gives a good indication of current market trends.
eg. food delivery apps, people are going out less and staying more at home