Introduction

Question 1

THE OPPORTUNITY CYCLE OF ENTERPRISE

Answer 1

The opportunity cycle of enterprise is a framework that explains the process of how resources are turned into productive
activities, which then create value and returns for the company.
• Resources, which can include investment or business ideas, and these resources can create new opportunities for the
company. They are assets so can be tangible or intangible such as skills, ideas and IP.
• Productive activities: which can involve working with suppliers (provide the services that are required to create value)
or co-producers to create value for the company. Productive activity can be market research and understanding the
product, as well as R&D.
• Value Creation: it is then passed on to customers, who ultimately create returns for the company. However, these
returns may decrease over time due to competition, which means that the company must continue to accumulate
resources
• Returns: can give your returns to the competition by selling ideas, this can also be thought of as building a brand,
knowledge, and skills which adds to your resources
• Investment: distribute investment to your investors who are a key source for business expertise

Question 2

THE FIRM

Answer 2

Inputs can include a range of resources such as raw materials, technology, finances, and people, among others. These inputs are
then processed by the organization’s people, processes, and facilities to create value and ultimately generate an output.
* The people component involves the employees who work within the organization and bring their skills, knowledge, and
expertise to the table.
* The processes refer to the various procedures and systems that are in place to manage the organization’s operations
and ensure efficiency and effectiveness.
* Finally, the facilities component encompasses the physical infrastructure, equipment, and technology that are
necessary to carry out the organization’s activities.
Through this transformation process, inputs are converted into outputs, which can take various forms depending on the nature
of the organization. Outputs can include products, services, information, or even cultural and social outcomes.

Question 3

OPERATES WITHIN A CONTEXT

Answer 3

While most organizations have a fairly good understanding of:
* current economic situation
* consumer trends
* Current technology
* competitors and suppliers
However, it becomes increasingly difficult to predict and plan for the future as you look further out. There are a number of
trends and factors that can impact an organization’s operations and success over the long term, including :
* economic, political, and environmental trends: Economic trends can include things like changes in GDP, interest rates,
and inflation, while political trends may include shifts in regulations, policies, and government leadership.
Environmental trends may encompass issues like climate change, natural disasters, and resource scarcity.
* Societal: can relate to changes in demographics, attitudes, and values.
* Technological: can encompass developments in areas like automation, artificial intelligence, and the Internet of Things
* industry trends: may relate to changes in supply and demand, market competition, and industry disruption