Lesson 1- Business Motivations/Opportunites

Question 1

Business motivations

Answer 1

The reasons why someone chooses to start a business

Question 2

Source of business opportunities

Answer 2

Where or how the opportunity arose for them to start their own business

Question 3

5 Business motivations

Answer 3

Financial independence
Personal independence
Fulfil a market need
Fulfil a social need
Make a profit

Question 4

What is financial independence?

Answer 4

Being able to support yourself without relying on others people/ a job

Question 5

What is personal independence?

Answer 5

Being able to make your own decisions, decide your role, working hours, holidays

Question 6

What is make a profit in bus motivation?

Answer 6

To benefit financially from capitalising on a business opportunity

Question 7

4 business opportunities

Answer 7

Innovation
Entrepreneurship
Market opportunities
Changing customer needs

Question 8

Innovation

Answer 8

Is transforming into reality a new idea about a product or service, or it could be a new way of doing things

Characteristics:
New efficient processes can save time, money and create less waste
Allows business to grow
Helps a business to adapt to changing market place
Gives a competitive advantage

Question 9

Entrepreneurship

Answer 9

Concept of developing and managing a business entire in order to gain profit by taking several risk

Characteristics:
Seeks out new opportunity
Manages business activities
Takes calculated financial risks
Experiences business success

Question 10

Changing customer needs

Answer 10

Customers has many needs in today society
Busy:
Convenience
24/7 trade
Supportive home services e.g childcare
Tech savvy:
Has access to to info
Compares competitors
Hops online
Able to give reviews
Demanding:
High expectations of corporate social responsibility to ppl and environment
High expectations of quality of product
High health and safety conscious
Aware of consumer laws ad rights when shopping

Question 11

Market opportunites

Answer 11

Refers to chances to increase trade caused by changing trends in a market. Key = recognise the trend or gap in the market

Example:
Increasing Chinese demand for Aus wine = opportunity for Aus wineries

Question 12

Business objectives

Answer 12

Clear, specific and measurable they prose direction for decision making and planning
Business may have multiple objectives