Lesson: Industry and Environmental Analysis - Identification of Business Opportunities Flashcards
10 key principles
Scalability
Big Ideas
Systems
Sustainability
Growth
Vision
Purpose
Autonomy
Profitability
Standards
an undertaking by a person or a group of persons or a group of persons whose main objective is to earn profit for the owners.
Scalability
a business is no more effective than the idea upon which it is built.
Big Ideas
which all parts contribute to the success and failure of the whole.
Systems
-must be dynamic - able to thrive through all economic conditions, in all markets, providing meaningful highly differentiated
results to all of its customers.
Sustainability
is essential in business. Without continued growth, operations will stagnate.
Growth
A business must manifest the higher purpose upon which it
was seeded. It was meant to exemplify the mission it was intended to fulfill.
Vision
A business is the fruit of a Higher Aim in the mind of the
person who conceived it.
Purpose
A business is not part of the
owners life, but is, in fact, its own entity.
Autonomy
A business is an economic entity, driving an economic reality, creating an economic certainty for the communities in which it thrives.
Profitability
which all small businesses are measured as either successful, or not. All small businesses should aim to thrive beyond the standards that formerly existed.
Standards
10 tools:
Use technology to speed up workflow
Shorter meetings fuel efficiency
Smart office space pays
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Small changes, big savings
Keep a firm grip on cash flow
Stay connected on the move
Use time for efficiently
Get the best deal on insurance
Don’t be lax with the legal
Hold a brief meeting standing up, every morning, where each person explains what they are going to work on
Use technology to speed up workflow
Businesses should be looking to innovations in technology to solve dayto-day inconveniences and to
increase efficiency.
Shorter meetings fuel efficiency
an area where some smarter thinking can make a real difference.
Smart office space pays
keeps your business top of mind so consumers think of it when they require or need a service or product.
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One way of improving efficiency is for business owners to make small changes to the way they handle their company’s expenses.
Small changes, big savings
“Cash is King not profit”. Ensure the right management of your inflow and outflow of cash
Keep a firm grip on cash flow
The growing trend towards mobile and flexible working means the employees are permanently connected and on
the go.
Stay connected on the move
“The shorter the amount of time you allow yourself, the more you will get done
Use time for efficiently
Businesses need insurance because it helps cover the costs associated with property damage and liability
claims.
Get the best deal on insurance
In the hectic process of starting up a business, the
founders often put off sorting out the legal matters until later, or not at all.
Don’t be lax with the legal
is what sets your business apart from your competition.
highlights the benefits a customer receives when they do business with you.
It could be your products, service,
reputation, or even your location
Competitive Advantage
METHODS OF COMPETITIVE ADVANTAGE:
Cost Leadership
Differentiation
Defensive Strategies
Alliances
an advantage occurs when a business is able to offer the same products at a lower price.
Cost Leadership
find attributes that are important and set them apart from their competitors.
Differentiation
used a defensive strategy to distance themselves from competitors.
Defensive Strategies
advantage of seeking strategic alliance with others within related or within businesses.
Alliances
Individuals or companies who desire to possess or make use of products and services.
They play a huge role in the success of your business.
CUSTOMERS
Provide inputs that the firms in an industry need to create the goods and services that they turn to sell to their buyers.
SUPPLIERS
Goods/services that can be used in place for another. These goods may, even if partly, satisfy the same needs of a
consumer such that the consumer may use one for instead for another.
SUBSTITUTES
Decision Making Tools:
Decision Matrix
T-Chart
Decision Tree
Multivoting
Pareto Analysis
Cost-Benefit
Conjoint Analysis
Used to evaluate all the options of a decision
Decision Matrix
Used when weighing the pluses and minuses of the options.
T-Chart
A graph or model that involves contemplating each option and the outcomes of each.
Decision Tree
Used when multiple people are involved in making a decision.
Multivoting
A technique used when a large number of decisions need to be made.
Pareto Analysis
Used when weighing the financial ramifications of each possible alternative as a way to
Cost-Benefit
Used by business leaders to determine consumer
preferences when making decisions.
Conjoint Analysis
Seven Steps in Effective Decision-Making:
Identify the Decision to be Made
Gather Relevant Information
Identify Alternatives
Weigh Evidence
Choose among Alternatives
Take Action
Review Decision and Consequences
one of the fundamental factors explain limited growth, productivity, and employment in the economy.
Weak Competition
Technical Marketing Techniques:
Create Utility and Usefulness with your product
Change your pricing
Emphasize your product’s key benefit to the customer
Deliver true value of your product to your customer
Types of Business Competition:
Performance Competition
Head to Head Competition
Controlling Supplies
Advertising
Distribution
Predatory Competition
party that supplies goods and services.
Also called Vendor
Supplier
Impact of Suppliers to Business:
Quality
Timeliness
Competitiveness
Innovation
Finance
