Chaprer3

Topics: Marketing, Entrepreneurship, Research Pages: 5 (812 words) Published: June 3, 2015
Chaprer3

1. What is a feasibility analysis? What is it designed to accomplish? Feasibility analysis is the
process of determining whether
a business idea is viable.
It is the preliminary evaluation
of a business idea, conducted
for the purpose of determining
whether the idea is worth
pursuing.

2. Briefly describe each of the four areas that a properly executed feasibility analysis explores. product/service feasibility, industry/market feasibility, organizational feasibility, and financial feasibility.

3. What is a product/service feasibility analysis?

Product/service feasibility analysis is an assessment of the overall appeal of the product or service being proposed.

4. Describe the difference between primary research and secondary research. . Secondary research probes data that is already collected.
Primary research is research that is collected by the person or persons completing the analysis. 5. What is a concept statement?

A concept statement is a one-page description of a business that is distributed to people who are asked to provide feedback on the potential of the business idea.

6. What is a buying intentions survey, and what does it accomplish? A buying intentions survey is an instrument that is used to gauge customer interest in a product or service. It consists of a concept statement or a similar description of a product or service with a short survey attached. 7. What are the two ways that entrepreneurs assess the likely product demand for the proposed product or service they are analyzing?

Step 1: Administer a Buying Intentions Survey (Primary research) Step 2: Conduct Library/ Internet research (secondary research)

8. What is gumshoe research in the context of product/service feasibility analysis?

A gumshoe is a detective or an investigator that scrounges around for information or clues wherever they can be found. 9. What is industry/target market feasibility analysis?

Is an assessment of the overall
appeal of the industry and the
target market for the proposed
business.

10. Describe the attributes of an attractive industry for a new venture.

Industries that are young rather than old, are early rather than late in their life cycle, and are fragmented rather than concentrated are more receptive to new entrants than industries with the opposite characteristics. 11. What is a target market? Why do most start-ups focus on relatively small target markets to begin with rather than larger markets with more substantial demand?

a target market is a place within a larger market segment that represents a narrower group of customers with similar needs.

Most start-ups simply don’t have the resources needed to participate in a broad market, at least initially. Instead, by focusing on a smaller target market, a firm can usually avoid head-to-head competition with industry leaders and can focus on serving a specialized market very well. 12. What are some of the ways to determine the attractiveness of a small target market within a larger industry? Often, considerable ingenuity must be employed to find information to assess the attractiveness of a specific target market. If necessary, get information from more than one industry or market.

13 . What is organizational feasibility analysis?
Is conducted to determine
whether a proposed business has
sufficient management expertise,
organizational competence, and
resources to successfully launch
a business.

Focuses on non-financial resources

14.Briefly describe each of the two primary issues to consider when conducting an organizational feasibility analysis. Ppt2526

10. 15. What is a new-venture team?
11.  
12. A new-venture team is the group of founders, key employees, and advisers that either manage or help manage a new business in its start-up years. 13.  
14. 16. What is financial feasibility analysis?
15.  
16. Is the final component of a comprehensive...
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