The Business concept and the Business model Flashcards
Is an idea that is the basis for founding a business. It typically describes how you capture value and your unique selling proposition.
Business Concept
A business concept for a high speed rail project that is developed as an early stage idea for an _______________ development program.
Infrastructure
A fast moving _________________ company is looking to diversify its business by launching new brand with dozens of products.
They develop over 50 business concepts for the new brand as part of the business development process.
Consumer Goods
A _________________ owner develops a number of business concepts for their next project. These concepts will be compared and evaluated.
The winning idea will be developed as a business plan that will be pitched to raised financing from local banks and partners.
Small Business
Refer to the broad targets or aspirations that a company aims to achieve. They help define the company’s direction, focus its resources, and guide decision-making.
Business Goals
The three key components of business goals are ___________, ___________, & ________
Vision, Mission, and Objectives
A company’s __________ is its long-term, overarching goal. It is a statement that describes what the company hopes to achieve in the future and provides a sense of purpose and direction. A company’s ___________ should be ambitious, inspiring, and aligned with its values.
Vision
A company’s __________ is its reason for being. It is a statement that defines the company’s purpose, values, and key objectives. A company’s ________________ should be clear, concise, and actionable, and should communicate the company’s unique value proposition to its stakeholders.
Objectives
Refers to the products or services that a company provides to its customers. It is the core of the company’s value proposition and is what sets it apart from its competitors.
Business Offering
is the rationale for why customers should choose the company’s products or services over those of its competitors. The justification should be compelling and based on a deep understanding of customer needs, preferences, and pain points.
Justification for the Business Offering
The Business Proponents?
- Governance and Top Management
- Operating and Support Team
- Organizational Structure
Can be defined as: “The system by which entities are directed and controlled. It is concerned with structure and processes for decision making, accountability, control and behavior at the top of an entity. ____________ influences how an organization’s objectives are set and achieved, how risk is monitored and addressed and how performance is optimized”.
Governance
Is responsible for establishing policies, guidelines and strategic objectives, as well as for providing leadership and direction for quality management within the organization. It should also establish those responsible and hold them accountable for a wide variety of management system processes.
Top Management
goods or service that your going to create
Product Design or Service Design
source of materials, equipments needed and production process
Product Procedure
cost includes labor, direct materials, factory overhead which serves as a basis in setting up the selling price
Product Cost
strategies in promoting your product
Product promotion and positioning
fuel businesses with the revenue it generates. It is the heart of business operations, it needs to take a calculated, strategic approach to designing a_________________.
Products and services
is the coordination and combination of people, communication, and material components to create quality service.
Service design
is the ring capabilities with product and business knowledge to convert ideas into physical and usableobjects.
Product design
refers to all those costs which the company incurs to create the product of the company or deliver the services to the customers, and the same is shown in the financial statement of the company for the period in which they become the part of the cost of the goods that the company sells.
Product cost
Examples of Product cost mainly include the following expenses:
Direct material (DM)
Direct labor (DL)
Factory overheads (FOH)
are those raw materials that can be easily identified and measured.
Direct materials
are the employees or the labor force that gets directly involved in producing or manufacturing finished goods from raw materials.
Direct laborers
are indirect expense related to manufacturing a finished product that cannot be directly traced in the factory.
Factory overheads
The_________________ are the salaries, wages, and benefits (like in insurance) paid to these labor forces against their services.
direct labor costs
The cost of material and labor are the _____________while the factory overheads are the_________________ , all of which are required to create a finished good (or service) ready to sell from raw material.
- Direct costs
- Indirect costs
The materials used in the manufacturing process cannot be traced directly as raw materials are indirect materials. E.g., grease, oil, welding rods, glue, tape, cleaning supplies, etc., are all _________________ . It is difficult and not cost-effective to determine the exact expense of ______________ applied to a single unit of a product.
Indirect Materials
The workers or employees required for the smooth functioning of the production process but do not get directly involved in creating a finished product are indirect materials. E.g., quality assurance teams, security guards, supervisors, etc., in the manufacturing premise are classified as the______________force. The associated costs in their salaries, wages and other benefits are considered ___________ costs.
Indirect Labor
The factory ______________that fall under the above two categories of factory __________ can be classified as __________________. E.g., electricity expenses cannot be classified as material or labor. Similarly, costs like factory and equipment depreciation, insurance costs, property taxes on factory premises, factory rent orlease, the cost to utilities, etc.;
Other Overheards
Product Cost Formula
Product Cost Formula = Direct Labor + Direct Material + Factory Overheards
Factory OH Formula
Factory OH = Indirect Labor + Indirect Material + Other Factory OH
To determine this cost on a per-unit basis, divide this cost as calculated above by the number of units produced.
Product Cost per Unit Formula = (Total Product Cost ) / Number of Units Produced.
are essential elements of a marketing strategy that aim to create awareness, generate interest, and establish a favorable perception of a product or service in the minds of the target market.
Product promotion and positioning
Here are some considerations for product promotion and positioning:
Target Audience
Unique Selling Proposition (USP):
Branding
Develop a strong brand identity that reflects the values and positioning of your product. Consistently apply your brand across all promotional materials, including logos, slogans, packaging, and communications
Branding
Craft persuasive messages that communicate the value and benefits of your product to the target audience. Determine the most effective communication channels to reach and engage your audience, such as social media, email marketing, content marketing, advertising, public relations, or direct sales.
Messaging and Communication Channels
Create high-quality marketing materials that support your promotional efforts. This may include brochures, flyers, product catalogs, videos, website content, social media posts, and customer testimonials. Ensure these materials align with your brand image and effectively convey the key features and benefits of your product.
Marketing Collateral
Develop a _______________ that reflects the value proposition of your product. Consider factors such as production costs, competitor pricing, target market affordability, and perceived value by customers. Position your product as offering good value for the price.
Pricing Strategy
Determine the most appropriate ________________ to make your product accessible to customers. This could include direct sales, retail partnerships, e-commerce platforms, or wholesalers. Ensure that your ______________ align with your target audience’s preferences and shopping behaviors.
Distribution Channels
Plan and execute promotional campaigns to create awareness and generate interest in your product. This may involve targeted advertising, social media campaigns, influencer marketing, search engine optimization (SEO), public relations activities, or event sponsorships.
Promotional Campaigns
Foster customer engagement by providing exceptional customer service, addressing inquiries promptly, and offering support channels. Encourage customer feedback and leverage positive testimonials to strengthen your product positioning.
Customer Engagement and Support
Continuously monitor the effectiveness of your promotional efforts. Track key metrics such as brand awareness, customer engagement, sales performance, and customer satisfaction. Use this data to refine your promotional strategies and optimize your product positioning.
Monitoring and Evaluation
