Chapter 2 - Chapter 2 Recognizing Opportunities Generating Ideas*Highlighted = Notes on Exam 1 Study Guide Opportunity is a favorable set of

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Chapter 2 ***Highlighted = Notes on Exam 1 Study Guide*** Opportunity - is a favorable set of circumstances that creates a need for a new product, service, or business. Four essential qualities of an opportunity: 1. Attractive 2. Durable 3. Timely 4. anchored in a product, service or business that creates value for its buyer or end user. Window of opportunity - describes the time period in which a firm can realistically enter a new market. Difference b/w opportunity and an idea – An idea is a thought, impression, or notion and may or may not meet the criteria of an opportunity. This is a critical point b/c many businesses fail not because the entrepreneurs that started them didn’t work hard, but because there was no real opportunity. I dentifying an Opportunity (3 Techniques): 1. Observing Trends – observe trends and study how they create opportunities for entrepreneurs to pursue. a) Economic Forces - affect, for ex., consumers’ level of disposable income. (ex., a drop in interest rates typically leads to an increase in new home construction and furniture sales.) b) Social Forces - The persistent proliferation of fast-food restaurants, for example, isn’t due primarily to people’s love for fast food but rather to the fact that people are busy: the number of households with both parents working remains high. Recent social trends that allow for new opportunities are: aging of the population increasing diversity of the workforce globalization of industry increasing focus on health care and fitness proliferation of computers and the Internet
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This note was uploaded on 06/12/2011 for the course MNGT 305 taught by Professor Chadwick during the Spring '11 term at Nicholls State.

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Chapter 2 - Chapter 2 Recognizing Opportunities Generating Ideas*Highlighted = Notes on Exam 1 Study Guide Opportunity is a favorable set of

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