This is a summery on Topic 10: Creative Thinking and problem solving. I achieved a distinction for this subject using these notes and believe they will be beneficial to you too.
Topic 10 Creative Thinking and problem solving
Unit 1: creative thinking to generate entrepreneurial opportunities and to solve business problems
1.1 Creative thinking in a business
In the business field originality and innovation are required. Creativity can contribute to increased productivity and
profitability by:
Helping a business to respond to the threat of competition and to remain a leader in the field.
Leading to the development of better methods of production to save on costs (electricity in agriculture
or computerised production)
Allowing a business to extend its range of services (e.g. Credit facilities or better service)
Helping a business to provide its clients with the best possible products or services which improves client
loyalty
1.2 Creative thinking to generate entrepreneurial opportunities
In the beginning you need creativity to identify an opportunity, such as a product or service that does not yet
exist, or to improve an existing product.
For example:
Landlines ---> cell phones
Money ---> credit cards
Posted letters ---> email
Later on, businesses need creative thinking to keep on improving products to stay ahead of their competition.
For example:
Better hair shampoo
Advanced security systems for cars and homes
Faster internet speeds
Faster, more fuel-efficient cars
Guidelines to encourage creativity and solve business problems:
Listen to other people’s ideas
Accept that it is possible to improve on anything
Stop being negative
Mix with people who are creative
Ask yourself if this is the only way things can be done
1.3 Creativity in identifying entrepreneurial qualities:
1st step in an entrepreneur's creative process is to turn an idea into an opportunity.
Needs creativity to create opportunities as well as consider how to apply these creative ideas in reality
Cannot control or change the environment
Opportunities arise when:
Circumstances change
There is inconsistency
There is confusion
There are information gaps.
, Unit 2: Problem Solving
The steps of the problem-solving cycle are:
1. State problem
2. Problem definition
3. Identify constraints
4. Identify solutions
5. Selection
6. Action
7. Monitor
Example: a customer brings back a faulty appliance
a. Respond within 24 hours
b. Admit that there is a problem and do not act defensively
c. Show that you understand the problem
d. Identify the steps needed to solve the problem
e. Keep stakeholders informed of the progress
f. Be prepared to offer compensation for the inconvenience and loss of time
g. Restore customer confidence for a good future relationship
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