Business Management Extra

Question 1

Outline the relationship between business opportunities and business concept development (2 marks)

Answer 1

Business opportunities are sets of circumstances that present as avenues to success.
After a prospective business owner takes an idea that has arisen from an assessment of possible
opportunities, such as a market opportunity, changing customer needs, research and development, or
changes in global markets, he or she will begin to develop the business concept.

Question 2

Define the term Market research (2 marks)

Answer 2

Market research is a process of systematically collecting, recording and analysing
information concerning consumers and the marketplace

Question 3

Outline another relationship between business opportunities and business concept development (2 marks)

Answer 3

This is where the business
opportunity begins to turn into a feasible business. The development of a business concept will determine
if the business idea is attractive to potential customers and whether the idea will generate enough sales
to cover costs and make a profit.

Question 4

Explain how a well-defined business concept should contribute to the long-term success of a business idea? (3 marks) part 1

Answer 4

A well-defined business concept provides clarity about the viability of a business idea.
Undertaking a thorough business concept development process will help the potential business owner to
consider their idea from all angles, meaning that any problems or ambiguities will be reduced, increasing
the likelihood of long-term success.

Question 5

Explain how a well-defined business concept contribute to a long-term success of a buieness idea? (3 marks)
part 2

Answer 5

. A well-defined business concept should also allow a potential business
owner to thoroughly understand his or her target market, the needs of customer, as well as the business
environment generally. This understanding is likely to result in the business providing a product that is not
already available, helping to ensure that the business can hold a sustainable place in the market

Question 6

Explain how a well-established business concept should contribute to the long-term success of a buieness idea? (3 marks)
part 3

Answer 6

Furthermore, if the business environment changes, a well-defined business concept should enable a
business owner to adjust his or her strategies while remaining aligned to the core values and objectives of
the business, ensuring success in the long-term