Module 2

Question 1

15 characteristics of a good business

Answer 1

1) identify market gap
2) no/few competitors
3) growing market
4) identify customers
5) low funding
6) sustainable
7) high profit margin
8) effective communication strategy
9) identifiable risks that can be monitored and mitigated
10) low fixed costs
11) not easily copied
12) controllable
13) management skills that can be leveraged
14) scalable
15) financable

Question 2

External analysis

Answer 2

1) PESTEL
2) market research
3) porters 5 forces
4) business model

Question 3

Desk research

Answer 3

1) industries and market
2) competitors
3) customers
4) distribution chain
5) supply chain
6) product development
7) economic data
8) market trends

Question 4

Life cycle of a business

Answer 4

1) completely new
2) emerging
3) growing
4) mature
5) declining

Question 5

Field research

Answer 5

1) customers needs, satisfaction and dissatisfaction
2) consumer reaction to product development
3) direct trail of competitions performance
4) customer reaction to competitors performance
5) premesis investiagtion

Question 6

Field research sources

Answer 6

1) observation and discussion
2) face to face interview
3) focus groups

Question 7

Advantages and disadvantages of field work

Answer 7

Advantages:

• reflects your needs
• you control quality
• up to date

Disadvantages:

• expensive
• takes time

Question 8

Market sizes

Answer 8

1) potential market
- size of your general market that might be interested in your product
2) total available market (TAM)
- those in your potential market who might by your particular product
3) served available market (SAM)
- size of your target market
4) penetrated market

Question 9

Types of competitors

Answer 9

1) direct
2) indirect
3) future