Presented by Amanda Ritter

Transcription

1 Presented by Amanda Ritter Key knowledge Market research and initial feasibility studies Key skills Identify business opportunities Define, describe and apply relevant business management concepts and terms Acquire, record, interpret and share business information and ideas Research and analyse case studies and contemporary examples of business management applicable to planning a business Apply business management knowledge to practical and/or simulated business situations 1

2 So where does this fit in? Fostering innovation and entrepreneurship Sources of business opportunity Personal motivations Business contributions Unit 1 Business Planning Importance of goal setting Market Research & feasibility studies Business concept development & opportunities Characteristics of successful business people 2

3 So what does this key knowledge cover? Market Research Market research Process What s included Reasons for market research Best times for market research Disadvantages of Market Research Feasibility Studies Process What s included Reasons for feasibility studies Best times for feasibility studies Disadvantages of Feasibility Studies 3

4 Market research Market research refers to an in depth investigation into consumer needs and problems associated with marketing goods and/or services Source: 4

5 Market research process source: 5

6 Data collection Primary Employees conducting surveys using questionnaires Face to face, phone or online Secondary Using published data Government Australian Bureau of Statistics Market Research Businesses Source: 6

7 Market Research What s Included? Quantitative Data (Can Count) How many competitors are in your market and what market share they have How fast the market is growing Qualitative Data (Attitudes & Opinions) Customer focus groups How people feel about different aspects of your product or service Source: 7

8 Types of questions to answer How you have carried out market research. What market segments (groups of customers with common characteristics) you intend to target. Why people will buy your product or service. Who your potential customers are. The number of potential customers. Where your potential customers are located. Your potential customers buying patterns. Who makes the buying decision for your product or service? How you will sell your product or service. Who are your competitors, both present and potential? What do you know about your competitors, in terms of product range, pricing, sales turnover, quality? What are the strengths and weaknesses of your most important competitors? What competitive edge do your most important competitors have? What is your competitive business advantage? Image used under Public Domain from Pixabay.com 8

9 Market research Why do it? Video source: 9

10 Market research Why should you do it? Essential when: Starting a new business Introducing a new product or service Writing a Business Plan Wise when: Maintaining a current business Source: 10

11 Initial Feasibility Study Feasibility studies are an assessment of whether a proposed business idea will be viable by looking at the current business environment, customer need, operational costs and possible value. The study results in a feasibility report. Source: 11

12 Feasibility study process SWOT Analysis Strengths o Eg. Expertise, financial backing, good team Weaknesses o Eg. High start up costs Opportunities o Eg. Current customer trends Threats risks and strategies to minimize these risks o Eg. Lots of competitors Source: 12

13 Feasibility study What s included? Includes market research and also: Technical feasibility do you have technical expertise and resources needed and so can it be done? Commercial/Economic feasibility what profit will it make and can you afford to begin it? Legal feasibility what laws have to be complied with to make it legal? Operational feasibility does it fit in well with the current business environment and so will it be productive? Timeframe feasibility is the schedule doable Social and environmental impact report what are the affects on people and place? 13

14 Feasibility study Why do it? To work out whether your business has a good chance of success and to plan strategies for minimizing risks When should you do one? Before beginning a business Before launching a new product or service Source: 14

15 Disadvantages of research Takes time away from core business Costs money especially if outsourcing to research firms Findings may provide unwelcome news Source: 15

16 Source: Source: Source: 16

17 Short answer activity Read this response Define the term market research and give an example of when a business should conduct this kind of research. (2 marks) Sample answer: Market research refers to an in depth investigation into consumer needs and problems associated with marketing goods and/or services. It is essential when starting a new business, introducing a new product or service or writing a Business Plan. However, market research is also recommended to maintain the viability of a current business Key points Provide definition of market research Give an example of when a business should conduct this kind of research Mark allocation 1 mark 1 mark (Written by the author) 17

18 Short answer Worked example Define the term market research and give an example of when a business should conduct this kind of research. (2 marks) Sample answer: Market research refers to an in depth investigation into consumer needs and problems associated with marketing goods and/or services. It is essential when starting a new business, introducing a new product or service or writing a Business Plan. However, market research is also recommended to maintain the viability of a current business Key points Provide definition of market research Give an example of when a business should conduct this kind of research Mark allocation 1 mark 1 mark (Written by the author) 18

19 Short answer activity Write a response Other than market research, outline two components of a feasibility study and justify why each is important. (4 marks) (Written by the author) 19

20 Short answer activity Mark this response Other than market research, outline two components of a feasibility study and justify why each is important. (4 marks) Sample answer: One component of a feasibility study is a technical feasibility section which investigates whether the technical expertise and resources needed are available. This is important to work out if business owners have themselves, or can get from others, the skillset needed and access to the technology and raw materials required to run the business. Key points Outline and justify one component Outline and justify a second component Mark allocation 2 marks 2 marks (Written by the author) 20

21 Short answer Teacher s mark Other than market research, outline two components of a feasibility study and justify why each is important. (4 marks) Sample answer: One component of a feasibility study is a technical feasibility section which investigates whether the technical expertise and resources needed are available. This is important to work out if business owners have themselves, or can get from others, the skillset needed and access to the technology and raw materials required to run the business. Key points Outline and justify one component Outline and justify a second component Mark allocation 2 marks 2 marks (Written by the author) 21

22 Short answer activity Read this response Other than market research, outline two components of a feasibility study and justify why each is important. (4 marks) Sample answer: One component of a feasibility study is a technical feasibility section which investigates whether the technical expertise and resources needed are available. This is important to work out if business owners have themselves, or can get from others, the skillset needed and access to the technology and raw materials required to run the business. An economic study is important so the business owner can determine whether they can fund the start up for the time it takes until the venture begins to make a profit. (Written by the author) 22

23 Short answer - Analysis of exemplar Other than market research, outline two components of a feasibility study and justify why each is important. (4 marks) Sample answer: One component of a feasibility study is a technical feasibility section which investigates whether the technical expertise and resources needed are available. This is important to work out if business owners have themselves, or can get from others, the skillset needed and access to the technology and raw materials required to run the business. An economic study is important so the business owner can determine whether they can fund the start up for the time it takes until the venture begins to make a profit. Key points Outline and justify one component Outline and justify a second component Mark allocation 2 marks 2 marks (Written by the author) 23

24 Short answer activity Mark your response Other than market research, outline two components of a feasibility study and justify why each is important. (4 marks) Key points Outline and justify one component Outline and justify a second component Mark allocation 2 marks 2 marks (Written by the author) 24

25 Summary Market Research and initial Feasibility Studies 25

26 So what have we covered and what is up next? Fostering innovation and entrepreneurship Sources of business opportunity Personal motivations Business contributions Unit 1 Business Planning Importance of goal setting Market Research & feasibility studies Business concept development & opportunities Characteristics of successful business people 26

27 The copyright in substantial portions of this material is owned by the Victorian Curriculum and Assessment Authority. Used with permission. The VCAA does not endorse this product and makes no warranties regarding the correctness or accuracy of its content. To the extent permitted by law, the VCAA excludes all liability for any loss or damage suffered or incurred as a result of accessing, using or relying on the content. Current and past VCAA exams and related content can be accessed directly at The copyright in substantial portions of this material is owned by the Board of Studies Teaching & Educational Standards. Used with permission. The BOSTES does not endorse this product and makes no warranties regarding the correctness or accuracy of its content. To the extent permitted by law, the BOSTES excludes all liability for any loss or damage suffered or incurred as a result of accessing, using or relying on the content. Current and past BOSTES exams and related content can be accessed directly at We do our best to make these slides comprehensive and up-to-date, however there may be errors. We'd appreciate it if you pointed these out to us! 27