Seeking New Business Opportunities

Question 1

Explain seeking new business opportunities.

Answer 1

• Managers will often seek new opportunities to gain new business
• This helps the business to grow and expand.
• This is often called business development
• Businesses can implement strategies to seek new business opportunities domestically or globally

Note: We will look at strategies for each, however some can be used for seeking new business for both

Question 2

Explain domestic opportunities.

Answer 2

Domestic opportunities are where the business is looking to gain more business within their current country of operating

Some strategies include:
- Multiple branding
- Franchising
- Government programs

Question 3

Explain multiple branding.

Answer 3

Multiple branding is where one business sells multiple brands in the same market

✓ Allows customers to have a choice in a wide variety of products
✓ Allows a business to hold larger amount of shelf space

X Business may receive backlash and customers may feel the business is only after profits

Question 4

Explain franchising.

Answer 4

Franchising is where a business grants someone the rights to carry out commercial activities using the brand of the business.

✓ Enables the business to expand while using other people’s money.

X There is some loss of control and profits are shared between the franchisee and head company.

Question 5

Explain government programs.

Answer 5

• Governments at different level provide assistance for businesses that are looking to grow.
• One example is Business Victoria, which provides grants and assistance in growing businesses.

Some examples include:
- Business development grant
- Victoria Defence Industry program

Question 6

Explain global opportunities.

Answer 6

Global opportunities are where the business is looking to gain more business outside their current country of operations.

Some strategies include:
- Exporting
- Austrade
- Develop an online presence

Question 7

Explain exporting.

Answer 7

Exporting is where a business sends their goods or services to another country for sale.

✓ This can open up new markets and greatly increase sales
X There can be extra red tape or taxes involved

Question 8

Explain austrade.

Answer 8

Austrade: the government body that is involved in advancing Australia’s international trade and education as well as investment and tourism.

✓ Austrade establishes connections for Australian businesses
✓ Makes use of global trade experts

X Can be costly to set up an agent and distributor or products

Question 9

Explain develop an online presence.

Answer 9

• Putting the business online can allow the business to attract new customers in new locations domestically or globally
• This can be achieved through building a website or through social media

✓ This can open up new markets
✓ Sell to a global market

X Can be costly to set up
X Need to find new distribution channels

Question 10

List all the strategies businesses use to seek new opportunities.

Answer 10

• Multiple branding
• Franchising
• Government programs
• Exporting
• Austrade
• Developing an online presence