Business chapt 7 key development

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Sources of business ideas internal

Sources of business ideas that originate from with in a such as personal experiences

Personal experiences

Entrepreneur often turn their own frustrations and needs into business ideas e.g James Dyson inventing the bagless vacuum cleaner after getting frustrated with the traditional vaccum cleaner

Brain storming ideas

Involves employees from different areas coming together and creatively developing new ideas some ideas are rejected some ideas are are given further consideration all ideas are welcomed

intraprenuership

Ideas can be given by employees through suggestion schemes and suggestion boxes a good idea may be rewarded by a bonus or a profit sharing scheme e.g a good intraprenueril culture exists within organisation like google

research and development department

may discover a new product or or improve an existing product through science and technology e.g dairy company investing to develop high-protein nutritional products

problem solving

Some businesses try to identify problems in certain industries to provide solutions they can use a design thinking approach to new products ideas to achieve this e.g air bnb used design thinking to discover a need for better photos on their platform to make locations look nicer

copying competitors

Monitoring competitors and trying to compete with them by producing new products that are similar to their most successful ideas all while being mindful to not break patent and copy write laws e.g new ev brands are mirroring some if the features of successful brands like tesla

market and consumer data

Technology now provides businesses with a large amount of data that can be used to analyse consumer behaviour and preferences social media shows the latest trends in real time allowing the business to monitor their target market online and quickly identify the consumers needs

import substitution

When an Irish business produces a product of similar quality or price to one currently being imported from another country e.g fulfil bars were produced to compete with imported protein bars from america

organisational culture

Leader ship style can impact how ideas are generated within a business an autocratic approach risks limiting idea generation as staff May not feel as valued and trusted and may not be willing to offer up new ideas more charismatic leaders like Steve jobs help inspire innovation and idea development in the staff at apple

availability of resources

Business needs both financial and human recourses to develop new ideas businesses need to allocate set times and money to invest in idea development googles offers their staff 20 percent free time to develop ideas so that they have time to work on innovation

market and consumer behaviour

How settled a market is impacts the scope for new ideas when the market changes their is greater opportunities for new products e.g increasing environmental awareness has led to alternatives for plastic straws

technological advancement

The development of new technology creates more business opportunities innovations that were not possible before e.g smartphones have led to new industries such as food delivery services just eat

legal requirements

Businesses May not be legally permissible even if they offer good solutions to existing problems e.g modular housing ideas that would help solve the housing crisis in Ireland cannot be fully developed until legal changes are made that would make such schemes possible