PRACRES for Quiz#2 (ABM)

PESTLE Analysis

Analyzing six segments of the general environment

Political

• Tax policies, trade restrictions, tariffs, immigration policies, government stability.

Economic

• Interest rates, inflation, GDP, unemployment, disposable income.

Social

• Population size, age, ethnic mix, cultural trends, health and safety consciousness

Technological

• Product and service improvements, automation, new product development.

Legal

• Employment laws, health and safety regulations, discrimination laws, antitrust laws.

Environmental

• Climate change, natural disasters, pollution, weather patterns.

Porter’s Five Forces

A model introduced by Michael Porter to analyze industry competition

New Entrants

• Barriers to entry and impact on competition

Substitutes

• Availability of alternative products or services

Rivalry

• Number of competitors and their aggressiveness

Suppliers

• Supplier power in driving prices

Consumers

• Customer power in driving prices down

Sustainable Development Goals

Seventeen SDGs aim to address global issues like poverty, inequality, and climate change by 2030, building on the Millennium Development Goals (MDGs).

Key SDGs

1. No Poverty

2. Zero hunger

3. Good health and well-being

4. Quality education

5. Gender equality

6. Clean water and sanitation 

7. Affordable and clean energy

8. Decent work and economic growth

9. Industry, innovation, and infrastructure 

10. Reduced inequalities 

11. Sustainable cities and communities 

12. Responsible consumption and production 

13. Climate action

14. Life below water

15. Life on land

16. Peace and justice strong institutions

17. Partnership for the goals

Business Model Canvas

A tool for designing business models

Customer Segments

• Different groups served.

Value Propositions

• Solving customer problems and satisfying needs

Channels

• Communication, distribution, and sales methods.

Customer Relationships

• Types of relationships with customer segments.

Revenue Streams

• Cash generated from customer segments.

Key Resources

• Essential assets for the business.

Key Activities

• Critical activities for the business model.

Key partnerships

• Network of suppliers and partners.

Cost Structure

• All costs to operate the business.

Social Business Model Canvas

Adapts the business model canvas for social enterprises

Mission

Social or environmental change goals

Customer Relationships

Value creation for targeted customers

Social Innovation

• Effective solutions to social problems.

Value Proposition

• Benefits to customers.

Channels

• Effective communication and distribution methods.

Consumer Benefits

• Emotional, social, and functional benefits.

Key Activities and Resources

• Essential tasks and assets.

Key Allies

• Important partners and supporters.

Cost of Delivery

• Major cost elements and management.

Revenue Streams

• Mix of income sources for sustainability.

Community Reinvestment

• Surplus generation and reinvestment.

Feasibility Analysis

Determines the viability of a business idea

Product/Service Feasibility

Desirability and Demand

Industry/Target Market Feasibility

Industry and market appeal

Organizational Feasibility

Management expertise and resources

Financial Feasibility

Financial requirements and performance

First Screen

• template for completing a feasibility analysis.

• a tool that can be used in the initial pass at determining the feasibility

Entrepreneurial Creativity and the Business Idea

Emphasizes creativity and innovation in a free market economy.

Creativity - generating useful new ideas and can be developed at personal, group or contextual levels

Sources of new ideas

• Consumers: Monitoring and soliciting feedback.

• Existing Products: Analyzing and improving offerings.

• Distribution Channels: Suggestions from channel members.

• Government: Regulatory responses.

• Research and Development: Formal and informal innovation efforts.

Methods of Generating New Ideas

• Focus Groups: Discussions to generate ideas.

• Brainstorming: Encouraging creative idea generation.

• Brainwriting: Written idea generation within groups.

• Problem Inventory Analysis: Identifying product problems.

• Creative Problem Solving: Techniques to unlock creativity, such as reverse brainstorming, checklists, free association, and forced relationships.

Creative Problem Solving

• Brainstorming: Problem statement, No experts, all ideas recorded

• Reverse Brainstorming: Negative aspects of a product/service/idea → Ways to overcome these problems

• Checklist Method: Related issues

• Free Association: Chain of word associations

• Forced Relationships: Product combinations, generating ideas from relationship patterns between elements of a problem

• Collective Notebook Method: Regularly recording ideas

• Attribute Listing: Positives and Negatives

• Big-Dream Approach: Thinking without constraints

• Parameter Analysis: Parameter identification and creative synthesis

Factors influencing creativity

• Encouragement: Support for creative efforts.

• Autonomy: Freedom to explore ideas.

• Resources: Availability of necessary resources.

• Pressures: Managing stress and expectations.

• Mental Blocks: Overcoming barriers to creativity like over-management, competition, fear of criticism, stress, and limiting personal beliefs.

Barriers to Creativity

• Over-management: Competition in workplace, assignment burden; caused by hectic work environment

• Fear of criticism: Afraid of others criticizing ideas

• Stress: Demands, constraints, and uncertainty to handle the task effectively

• Personal beliefs: Not creative, basically.