Chapter 14: Identifying Opportunities

Question 1

What are the two sources of ideas for individulas?

Answer 1

internal and external

Question 2

4 sources of internal ideas for an individual?

Answer 2

hobbies, skills, work, frustrating experiences.

Question 3

4 sources of external ideas for an individual?

Answer 3

competition, internet, enterprise boards, foreign countries

Question 4

4 internal sources for businesses

Answer 4

market research
customer feedback
brainstorming
market tests

Question 5

4 external sources for businesses

Answer 5

competition, interent, foreign countries, market research

Question 6

Define Market research

Answer 6

Gathering, recording and analysing info to tell us about consumer needs and wants

Question 7

what is desk research

Answer 7

using pre existing info

Question 8

what is field research

Answer 8

obtaining new info online and through surveys

Question 9

What are the 7 stages in product development?

Answer 9

1. idea generation
2. product screening
3. concept development
4. feasability study
5. prototype development
6. test market
7. full launch.

Question 10

What is the break even point

Answer 10

fixed costs over selling price minues variable cost

Question 11

Define Margin of Safety

Answer 11

the differance between a firms target output level and its breakeven output level. it shows by how much the company can fall short of its target and still not lose money.