Business management Units 1 and 2

• Sources of business opportunity include: innovation, recognising and taking advantage of market opportunities, changing customer needs, research and development, technological development, and global markets
• A manager is responsible for overseeing the operations of a business to ensure it achieves its goals
• An entrepreneur is willing to seize opportunities to start and operate a business, take risks, and aim for profit
• Examples of innovation:

  • Significantly improving an existing product to include new features
  • Introducing a newly branded product into an existing market
  • Purchasing a successful business and increasing sales through a successful advertising campaign
• Business Opportunity: A set of circumstances that presents itself as an avenue to success
• Innovation: Creating a new good, service, or process, or significantly improving an existing one
• Research & Development: Activities undertaken to improve existing products, create new products, and improve production processes
• Identifying a business opportunity involves seeking avenues to success such as new products, new customers, and new ways of running businesses
• Changing customer needs can be influenced by changing incomes, tastes, fashions, population, and market expectations
• Customer needs are best described as the way in which customers demand and expect products
• Technological Development involves seeking feedback from potential customers to refine products and can lead to product innovation
• The most significant disadvantage of research and development is the risk associated with developing a new product
• Global Markets provide opportunities for new businesses, with advantages including business growth, reduced dependence on local markets, extended product life cycles, and reduced effects of market fluctuations
• Two types of business opportunities created by an ageing population:

  • Opening or operating an aged care facility due to increased demand
  • Offering specialized financial planning services to those nearing retirement age