Business Ideas

Question 1

Explain what internal sources means as somewhere where business ideas come from

Answer 1

Means getting ideas from your own strengths and weaknesses within the organisation.

Question 2

Explain what external sources means as somewhere where business ideas come from

Answer 2

Means getting ideas from opportunities and threats in the outside market.

Question 3

Name two internal sources of business ideas for new entrepreneurs

Answer 3

Skills and hobbies

Experiences

Question 4

Explain with an example skills and hobbies as an internal source of business ideas for new entrepreneurs

Answer 4

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.

Question 5

Explain with an example Experiences as an internal source of business ideas for new entrepreneurs

Answer 5

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

Question 6

Name three internal sources of business ideas for established businesses

Answer 6

Research and development
Intrapreneurship
Brainstorming (new and esablished)

Question 7

Explain with an example Research and development as an external source of business ideas for established businesses

Answer 7

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.

Question 8

Explain with an example Intrapreneurship as an external source of business ideas for established businesses

Answer 8

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.

Question 9

Explain with an example Brainstorming as an external source of business ideas for new and established businesses

Answer 9

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

Question 10

Explain with an example friends and family as an external source of business ideas for new enterprises

Answer 10

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.

Question 11

Name external sources of business ideas

Answer 11

Friends and family
Media
Import substitution
State agencies
Competitors
Customer feedback

Question 12

Explain with an example Media as an external source of business ideas for new enterprises and established businesses

Answer 12

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.

Question 13

Explain with an example Import substitution as an external source of business ideas for new enterprises and established businesses

Answer 13

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.

Question 14

Explain with an example State agencies as an external source of business ideas for new enterprises and established businesses

Answer 14

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.

Question 15

Explain with an example Competitors as an external source of business ideas for established businesses

Answer 15

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

Question 16

Explain with an example Customer feedback as an external source of business ideas for established businesses

Answer 16

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.

Question 17

What are the 7 steps of development of a new product or service

Answer 17

1. Idea Generation
2. Product/service screening
3. Concept development
4. Feasibility study
5. Prototype development
6. Test Marketing
7. Product Launch

Question 18

Explain Stage 1 Idea Generation as a step in the development process of a new product or service

Answer 18

Deals with a company coming up with ideas for new products or services
These ideas can come from Internal or External sources

Question 19

Explain Stage 2 Product/service screening as a step in the development process of a new product or service

Answer 19

Uses a SWOT analysis to analyse and evaluate the ideas thought up in idea generation

Question 20

Explain Stage 3 concept development as a step in the development process of a new product or service

Answer 20

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.

Question 21

Explain Stage 4 feasibility study as a step in the development process of a new product or service

Answer 21

Investigation into new product and aims to answer questions:
Is product commercially viable?
Can product be made?

Question 22

Explain Stage 5 Prototype Development as a step in the development process of a new product or service

Answer 22

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.

Question 23

Explain Stage 6 test marketing as a step in the development process of a new product or service

Answer 23

Involves launching the product on a small segment of the market and evaluating the consumer’s response to it.

Question 24

Explain Stage 7 product launch as a step in the development process of a new product or service

Answer 24

Full scale production of the product begins and the product is made available for sale on the entire market.

Question 25

Name example of company for product development

Answer 25

Kellogg’s Crunchy Nut Bites

Question 26

Explain example (Kellogg crunchy bites) of the development of a new product under step 1 idea generation

Answer 26

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

Question 27

Explain example (Kellogg crunchy bites) of the development of a new product under step 2 product/service screening

Answer 27

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

Question 28

Explain example (Kellogg crunchy bites) of the development of a new product under step 3 Concept development

Answer 28

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

Question 29

Explain example (Kellogg crunchy bites) of the development of a new product under step 4 feasibility study

Answer 29

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

Question 30

Explain example (Kellogg crunchy bites) of the development of a new product under step 5 prototype development

Answer 30

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

Question 31

Explain example (Kellogg crunchy bites) of the development of a new product under step 6 test marketing

Answer 31

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

Question 32

Explain example (Kellogg crunchy bites) of the development of a new product under step 7 product launch

Answer 32

Kellogs launched crunchy nut bites september 2008

sales data shows it was one of best performing brands to launch in cereal category