Business Ideas Flashcards
Only from presentation
Explain what internal sources means as somewhere where business ideas come from
Means getting ideas from your own strengths and weaknesses within the organisation.
Explain what external sources means as somewhere where business ideas come from
Means getting ideas from opportunities and threats in the outside market.
Name two internal sources of business ideas for new entrepreneurs
Skills and hobbies
Experiences
Explain with an example skills and hobbies as an internal source of business ideas for new entrepreneurs
A would be entrepreneur may have special aptitudes /talents they could turn into a profitable business.
Ex: Bill Gates (Microsoft) had interest in software from a young age and began programming at 13. He used hobby to set up most successful software company in the world.
Explain with an example Experiences as an internal source of business ideas for new entrepreneurs
Person wishing to set up their own business may have seen or learned something that could give them the idea for a profitable business.
Ex: Richard Branson set up Virgin Atlantic Airways after his own unsatisfactory experiences on other airlines
Name three internal sources of business ideas for established businesses
Research and development
Intrapreneurship
Brainstorming (new and esablished)
Explain with an example Research and development as an external source of business ideas for established businesses
Business may set up special department that is in charge of carrying out activities that may lead to the development of new products.
Ex: Coca-Cola has R&D department who constantly work to come up with new flavours and products.
Explain with an example Intrapreneurship as an external source of business ideas for established businesses
A business can get good ideas for new products and services from its employees.
Ex: The Microsoft Xbox console was developed by intrapreneurship in Microsoft after employees saw success of the Sony Playstation.
Explain with an example Brainstorming as an external source of business ideas for new and established businesses
Brainstorming is technique involving bringing together a group of creative people to generate business ideas.
Use SWOT analysis on all ideas suggested to gage worthwhile ideas
Ex: idea for Twitter was developed during brainstorming session by Jack Dorsey
Explain with an example friends and family as an external source of business ideas for new enterprises
Entrepreneur may get inspiration for ideas from talking to family and friends about products they would like to see in the market.
Ex: Bisto gravy was developed by friends who got the idea from their wives.
Name external sources of business ideas
Friends and family Media Import substitution State agencies Competitors Customer feedback
Explain with an example Media as an external source of business ideas for new enterprises and established businesses
Ideas may come from seeing something in a newspaper, magazine or on TV.
Ex: ‘The Grooming Rooms’ a male only beauty salon in Dublin was developed from media reports about the increasing money being spent on male grooming products.
Explain with an example Import substitution as an external source of business ideas for new enterprises and established businesses
Where local businesses supply goods/services in the country instead of importing (buying them) from other countries.
Ex: Tayto crisps were developed by Irish man Joe Murphy when he realised the crisps sold in Ireland at the time were all made in the UK.
Explain with an example State agencies as an external source of business ideas for new enterprises and established businesses
Irish government agencies provide new ideas for new products and new markets.
Ex: Enterprise Ireland conducts market research in Ireland and produce reports on market trends/ business opportunities in Ireland.
Explain with an example Competitors as an external source of business ideas for established businesses
Businesses can get an idea by copying and adapting successful ideas developed by their rivals
Ex: Coca-Cola developed Deep River Rock water when they saw the success of other bottled water on the market
Explain with an example Customer feedback as an external source of business ideas for established businesses
Business surveys customers for their opinion about business and its products.
Ex: McDonalds surveyed women to find out why fewer women were eating in their restaurants. Found out women perceived food as unhealthy which led to launch of ‘Salad Plus’ range.
What are the 7 steps of development of a new product or service
- Idea Generation
- Product/service screening
- Concept development
- Feasibility study
- Prototype development
- Test Marketing
- Product Launch
Explain Stage 1 Idea Generation as a step in the development process of a new product or service
Deals with a company coming up with ideas for new products or services
These ideas can come from Internal or External sources
Explain Stage 2 Product/service screening as a step in the development process of a new product or service
Uses a SWOT analysis to analyse and evaluate the ideas thought up in idea generation
Explain Stage 3 concept development as a step in the development process of a new product or service
Creating a detailed version of the chosen product idea by drawing up a written document and identifying the Unique Selling Point (USP) of the product.
Explain Stage 4 feasibility study as a step in the development process of a new product or service
Investigation into new product and aims to answer questions:
Is product commercially viable?
Can product be made?
Explain Stage 5 Prototype Development as a step in the development process of a new product or service
A prototype is first working model of the product. A sample or mock-up of new product that is tested to see if it works properly and if any changes need to be made.
Explain Stage 6 test marketing as a step in the development process of a new product or service
Involves launching the product on a small segment of the market and evaluating the consumer’s response to it.
Explain Stage 7 product launch as a step in the development process of a new product or service
Full scale production of the product begins and the product is made available for sale on the entire market.
Name example of company for product development
Kellogg’s Crunchy Nut Bites
Explain example (Kellogg crunchy bites) of the development of a new product under step 1 idea generation
In established market there is little room to increase sales- need improved new products to maintain and improve market share in cereal business
Conduct market research to find set of new food ideas suitable for developing new crunchy nut product
Asked customers what they like and looked at new trends- used this info to list possible options for product
Explain example (Kellogg crunchy bites) of the development of a new product under step 2 product/service screening
Put all ideas generated up on boards
Shown to representative consumers
Consumers rate ideas so Kellogg identify best idea
Research revealed New crunchy nut bites idea was most appealing among ideas tested
Explain example (Kellogg crunchy bites) of the development of a new product under step 3 Concept development
Kellogg developed concept for Crunchy nut bites: They would be extension to Crunchy nut family of products but would provide a new flavor or texture for customers
Explain example (Kellogg crunchy bites) of the development of a new product under step 4 feasibility study
Conducted market research to establish what proportion of people liked it to buy it.
Data collected helped calculate a sales forecast for 1st or 2nd year of sales
Kellogg finance dep drew up budget for costs of product
Figures revealed crunchy nut bites would be profitable
Explain example (Kellogg crunchy bites) of the development of a new product under step 5 prototype development
Made several food prototypes including mini crispy lattice product and a nutty triangle
Receipe refined using customer feedback until perfect
Pack design was also developed and tested with customers- enabling kellogs to select packaging
Explain example (Kellogg crunchy bites) of the development of a new product under step 6 test marketing
At Kellogs each product must undergo in home usage test
Consumers are given product to try to see how customers interact with it
They complete questionnaire on what they thought of it
Final survey measures how appealing the new product is to consumers
Explain example (Kellogg crunchy bites) of the development of a new product under step 7 product launch
Kellogs launched crunchy nut bites september 2008
sales data shows it was one of best performing brands to launch in cereal category
