This is a summery on Topic 11: Business opportunity and related factors. I achieved a distinction for this subject using these notes and believe they will be beneficial to you too.
Topic 11: Business opportunity and related factors
1.1 The importance of research Entrepreneurs need to be resourceful, creative and hard working. Willing to take
calculated risks. to know what the possible risks are and to identify the needs and desires of customers the
entrepreneur needs to conduct research.
Research is a systematic investigation to find facts or to collect information. Good research will allow the
entrepreneur to make profitable decisions. If the entrepreneur doesn’t carry out sufficient and complete
research before starting the business they will be at risk of a loss. If the business does not meet the needs and
desires of customers they will fail.
1.2 Research Instruments
A device or tool that can be used to gather information or to form a set of guidelines for observation.
Respondents people on whom the investigation is carried out and provide the responses from which conclusions
are drawn.
1.3 What should be researched?
Products
New products – will people buy it?
New products will appeal to people who have a desire to be seen as leaders or pioneers and serve as a good
test for marketing purposes
Old products – how is it better?
This relates to product differentiation where products are made to look different and superior to others.
The market
How many competitors do you have?
How well established are your competitors and why?
Customers
You could collect information on your customers’:
Income – high earners would often like to be seen as forerunners
Age groups – needs and desires will differ
Level of education – needs and desires will differ with the level of education
Tastes and preferences – people use cars to satisfy the desire for recognition
Social and cultural beliefs – some cultures prohibit the consumption of certain foods which are acceptable to
others.
Unit 2: using SWOT analysis to identify business opportunities
2.1 What is a SWOT analysis?
Is research into the business’s strengths, weaknesses, opportunities and threats.
Strengths – the internal strengths of the product, service or organisation
Weaknesses – the internal weaknesses of the product, service opportunities
Opportunities - the external weaknesses of the product, service opportunities
Threats – the external threats to the product, service or organisation.
2.2 When would you carry out a SWOT analysis?
Useful if there are changes in the market environment or within the business or hen considering starting a new
business venture.
Research is used to determine the needs and desires of potential customers and decide which opportunity to
consider.
Questions: how many competitors are there?
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