Week 13 & 14

Question 1

plays a crucial role in the success of new product development initiatives.It systematically evaluates market conditions, customer preferences, and organizational capabilitiestoguidethe development of new products that meet market needs and drive business growth.

Answer 1

Business analysis

Question 2

helps organizations comprehensively understand the market landscapeinthecontext of new product development.

Answer 2

Business analysis

Question 3

enables organizations to assess the feasibility and viability of new product ideas.

Answer 3

Business analysis

Question 4

It involves conducting market research to identify customertrends, preferences, and unmet needs.

Answer 4

Business analysis

Question 5

By analyzing this information, organizations can understand valuableinsightsthat inform the product development process.

Answer 5

Business analysis

Question 6

It involves evaluating technical requirements, resource availability, and market potentialtodetermine whether a product concept is worth pursuing.

Answer 6

Business analysis

Question 7

This analysis helps organizations makeinformeddecisions about resource allocation and investment, reducing the risk of developing products that maynotgenerate sufficient returns.

Answer 7

Business analysis

Question 8

Moreover, _____________ helps organizations stay competitive in the market. By conducting competitive analysis, organizations can identify key competitors, evaluate their product offerings, andidentify opportunities for differentiation.

This understanding allows organizations to position their new products effectively and develop unique value propositions that resonate with customers.

Answer 8

Business Analysis

Question 9

mechanism is the process of incurring expenses and securing fundingtocoverthoseexpenses to launch and establish a new business. This process typically involves identifyingandbudgetingfor all necessary expenses and securing funding to cover those costs through investments or loans.

Answer 9

start-up costs

Question 10

These costs are mandatory for a company to start and become operational. However, withsufficientfunding to cover such costs, a business can establish or struggle to become profitable in the longterm.

Answer 10

start-up costs

Question 11

Business ____________ also help entrepreneurs identify potential challenges and risks associated with their business idea and develop a financial plan to manage them.

Answer 11

start-up costs

Question 12

By carefully budgeting and planning for such costs, entrepreneurs can make informed decisions about the feasibility and sustainability of their business idea.

Answer 12

start-up costs

Question 13

Additionally, investors often use average start-up costs for a business to evaluate a business idea’s potential and the entrepreneur’s ability to manage and grow the business. Therefore, a well-planned and well-funded start-up is a positive indicator of the potential success of a business.

Answer 13

start-up costs

Question 14

The __________________ refers to investing in a firm or other business enterprise with the goal tofurtheritsbusiness objectives.

Answer 14

total capital investment

Question 15

The _______________________ definition refers to two situations. First, it is about investing in a firmorotherbusiness enterprise with the goal to further its business objectives. It also refers to capital assets or fixedassetsacquired by a firm.

Answer 15

total capital investment

Question 16

_______________ estimates future sales revenue by analyzing historical sales data andusingittopredict future sales patterns. Businesses use sales projections for both short-termand long-termplanning.

Answer 16

Sales projection

Question 17

______________ are a critical part of any business plan. They allow businesses to set realistic goals and track their progress over time. Without accurate sales projections, companies may in them selves under- or over-performing against their targets.

Answer 17

Sales projection

Question 18

are also vital for businesses to make informed decisions about their operationsandinvestments. For example, if a company is projecting strong sales growth, it may need to hire morestafforexpand its facilities.

Answer 18

Sales projection

Question 19

On the other hand, if sales are expected to slow down, they may need to cut costs to stay profitable.
Making accurate sales projections is an essential skill for anyone leading an organization’ssalesmanagement. While there is no guaranteed way to perfectly forecast future sales, careful analysisandplanning can help companies make the best estimate possible.

Answer 19

Sales projection

Question 20

Here’s an example:
Anna and Marvin, two passionate mixologists, decided to venture into the beverageindustrybylaunching their own line of cocktails in a bottle. After careful planning and product development, theyareready to forecast their sales for the next three years.
Year 1:
In the first year of operations, Anna and Marvin aim to establish their brand and gain tractioninthemarket.They plan to produce and sell 200 bottles of cocktails per week, equivalent to 800 bottles per month. Withthis initial target, they anticipate a steady growth as they introduce their products tolocal retailers,restaurants, and online platforms.
Year 2:
Building on the success of their first year, Anna and Marvin are optimistic about scaling up their productionand expanding their customer base. They plan to increase their weekly production by 100%, doublingitto400 bottles per week, or 1600 bottles per month. This expansion allows them to meet growingdemandandcapitalize on the increasing popularity of their cocktails.
Year 3:
As they enter their third year in business, Anna and Marvin are focused on sustaining their momentumandsolidifying their position in the market. They continue their growth trajectory by doubling their productiononce again. Now, they aim to produce 800 bottles per week, totaling 3200 bottles per month. Withawell-established brand reputation and a loyal customer following, they anticipate continuedgrowthandprofitability in the coming years.

is example of ______________________

Answer 20

Project sales

Question 21

The _______________ is a method commonly used by investors, financial professionals, and corporations to calculate investment returns.

Answer 21

payback period

Question 22

It helps determine how long it takes to recover the initial costs associated with an investment. This metric is useful before making any decisions, especially when an investor needs to make a snap judgment about an investment venture.

Answer 22

payback period

Question 23

The shorter the ________, the more desirable the investment. Conversely, the longer the ________
, the less desirable it becomes.

For example, if solar panels cost $5,000 to install and the savings are $100 each month, it would take 4.2 years to reach the payback period. In most cases, this is a pretty good payback period as experts say it can take as much as 9- 10 years for residential homeowners in the United States tobreak even on their investment.

Answer 23

payback

Question 24

Capital budgeting is a key activity in corporate finance. One of the most important concepts every corporate financial analyst must learn is how to value different investments or operational projects to determine the most profitable project or investment to undertake.

One way corporate financial analysts Do this is with the payback period.

Answer 24

payback period