Chapter 4

Question 1

5 why’s

Answer 1

method to uncover the real problem that may be hidden

Question 2

What are the 6 open-ended questions

Answer 2

Who, What, Where, When, How, and Why.

Question 3

Another way to solve something than 6 open and 5 why

Answer 3

reframe the problem (how can I use a pen in space → how can I write in space / How can I improve sales→How can I increase customer satisfaction or How can I make the product/service at a cheaper price/higher quality)

Question 4

PEST analysis

Answer 4

a route towards understanding the business context for a problem. is a strategic tool for examining the wider macro-environment. It stands for Political, Economic, Social and Technology.

Question 5

PESTLE

Answer 5

pest including legal and environmental factors

Question 6

STEEPLE

Answer 6

pest including lega, ethicsl and environmental factors

Question 7

Model customer

Answer 7

An image of the customer that may use the product and their journey (before, during and after the product).

Question 8

jobs to be hired

Answer 8

what is the “job” that the product has and why do the customers “hire” them

Question 9

difference divergent and convergent thinking

Answer 9

divergent looks at multiple solutions while convergent focus on 1.

Question 10

4 rules of brainstorming

Answer 10

1. The larger the number of solutions, the better. 2. Wild solutions are welcomed. 3. Combining and improving ideas is good. 4. There should be no criticism of any idea generated.

Question 11

2 things that decide creativity

Answer 11

1. If the idea is novel, original or rare relative to other ideas. 2. If the idea is useful – relative to other ideas.

Question 12

Inventors

Answer 12

come up with new ideas

Question 13

innovators

Answer 13

commercialise ideas

Question 14

‘Me, Market and Money for filtering ideas”

Answer 14

me: entrepreneur’s assessment of how attractive the match between themselves and any idea is, market: ‘ the belief that there is customer demand for an idea. money: all entrepreneurs have unavoidable start-up expenses

Question 15

4 things that decides if an idea is me fit

Answer 15

1. Does an idea match the entrepreneur’s goals?, 2. Does the idea fit with the entrepreneur’s skills, experience, interests and dispositions?, 3. Is the idea attractive to the entrepreneur’s friends, family and colleagues?, 4. Is it the ‘right’ time?

Question 16

bootstrapping

Answer 16

economize on resources because most start-ups have limited resources. a situation in which an entrepreneur starts a company with little capital, relying on money other than outside investments

Question 17

What are 3 alternative ways of developing a business idea

Answer 17

1. Licensing or selling an idea. 2. Buying an existing business. 3. Franchising.

Question 18

benefits franchise for franchisors

Answer 18

Lower costs, Lower management costs, A viable exit route, Better growth incentives, Cost effective business growth

Question 19

benefits franchise for franchisee

Answer 19

Limits uncertainty, Support, Exclusivity, Eases entry costs, Lower costs

Question 20

where come solutions from

Answer 20

sometimes eureka, but often past experience, motivations and creative skills.

Question 21

Teresa Amabile’s model of creativity

Answer 21

1. Expertise (cant be creative if you have no knowledge/ connecting the dots, have contacts)
2. Motivation levels (intrinsic motivation & passion > extrinsic)
3. Creative skills (break mental set during problem-solving - develops by deliberative and systematic search procedures to scan and search the environment for solutions purposively)