Today you are studying: How and why new business ideas come about
The Dynamic Nature of Business
During this lesson we will:
Consider how and why business ideas come
about by looking at the changes in
technology, what consumers want and how
products / services become obsolete
Today you are studying: How and why new business ideas come about
Recap
During your last few lessons, you have been learning about
business organisations and the differences between small
and large businesses
So…:
• What is the purpose of a business?
• Give 3 examples of small local businesses
• State at least 6 examples of larger businesses
• Can you describe an entrepreneur?
• Give an example of a well known entrepreneur
Today you are studying: How and why new business ideas come about
The Dynamic Nature of Business
• The world of enterprise is dynamic and ever-changing.
• This allows entrepreneurs to spot business
opportunities and encourage them to develop new
ideas.
• What products can you identify that have changed over
the past few years?
– Discuss with your partner the products you can identify
– Are they the same as yours or are they different?
Today you are studying: How and why new business ideas come about
•
•
What services does FarFetch provide for independent boutiques?
What do you think the word ‘Entrepreneur’ means?
Complete this task in
your exercise book
– Write your own definition or list some qualities you think an entrepreneur needs
•
Why do you think Neves would consider making customers happy to be a major
reason for FarFetch’s success?
Today you are studying: How and why new business ideas come about
Why and how do new business ideas
come about?
New business ideas usually come about because of a
change in society and consumer trends.
• Some people look at those changes and believe that,
perhaps, they could do better
• Entrepreneurs identify business opportunities based on
their observations.
• Some of the changes that have happened include:
– Advances in technology
– Changes in what consumers want
– Products and services become obsolete.
Today you are studying: How and why new business ideas come about
Changes in technology
Technology is constantly developing and this can have a
huge impact on what consumers want and need.
• Businesses have to be flexible and must innovate in
order to respond to continuous change.
• Coming up with new ideas, products and new
processes can allow entrepreneurs (and businesses) to
remain up to date in a world of rapidly changing
technology.
Today you are studying: How and why new business ideas come about
Changes in technology
• Changes in technology - makes it easier for
entrepreneurs to start their own business.
– The is often because previous technology is cheaper and as a
result it is more affordable and can be used to produce goods
and services for the entrepreneur to sell.
• E-commerce and m-commerce – using the internet for
buying and selling goods and services is called ecommerce (m-commerce is using mobile technology to
shop).
• As a result, small businesses can easily start up and sell
their products without having to have a physical highstreet presence.
Today you are studying: How and why new business ideas come about
Changes in technology
• Social media – these are platforms that allow people
to interact with other people (all around the world).
– Social media has transformed the way people deal with
businesses.
• Customers will often write about their experiences, good or
bad, to inform other people on the platform of their
experience.
– Businesses have realised the potential of this idea and are
building their business websites that integrate with
popular social media sites.
• Businesses often set up a page especially for their customers
(or potential customers) to see
Today you are studying: How and why new business ideas come about
Changes in what consumers want
• Another reason entrepreneurs come up with new ideas
is the changing needs and wants of consumers and this
is encouraged by changing lifestyles and ever
advancing technology.
• To be successful, businesses need to listen to their
customers in order to understand and stay ahead of
changing fads and fashion.
Today you are studying: How and why new business ideas come about
Please write these key
terms in the back of
your exercise book
Key Business Terms
• Enterprise – entrepreneurial activity (can also mean a
business or company
• Entrepreneur – someone who creates a business, taking on
financial risks with the aim if making a profit from the
business
• Consumer – someone who buys goods or services
• E-commerce – using the internet to carry out business
• M-commerce – using mobile technology to carry out
business transactions
Today you are studying: How and why new business ideas come about
Task
• On your own, write down eight qualities that you think
an entrepreneur has to have in order to succeed.
– It might help to think of well-known entrepreneur
– Compare your list with your partner – are they similar or
different
• (if your partner has something you do not then take
this opportunity to write down any qualities that you
do not have)
Complete this task in
your exercise book
Today you are studying: How and why new business ideas come about
Products and services becoming obsolete
• Most products have a limited lifespan and, at some point,
will no longer be sold.
– (Later during the course we will look at the Product life Cycle
where a product is launched, grows and declined before it
disappears altogether).
• Technology is one reason why products can become
obsolete as advances means that older technology is
replaced with new and innovative products
– (meaning the older products become of no use and thereby is
replaced by newer products).
Today you are studying: How and why new business ideas come about
Products and services becoming obsolete
• What products can you identify that have gone out of
production or no longer used?
• Be careful!!
– These are not the same as products that have changed
over time – these are products that no longer exist or
items that are rarely used
• Discuss with your partner to see if they have
something that you cannot think of!
Today you are studying: How and why new business ideas come about
Products and services becoming obsolete
These are some items that are no
longer or rarely used but they used to
be the ‘must have’ product of the day
Tape Cassette
Teasmade
Instamatic Camera
Sony’s mini disc
Dictaphone
Slide Projector
OHP
The telegram
Today you are studying: How and why new business ideas come about
Ego was a successful video and VHS rental
business in Newtown, Powys. It survived local
competition but with the rise of online filmstreaming services led to falling demand and it
closed in 2016.
Discuss with your partner the reasons why Ego failed.
Be ready to feedback your discussion points to the class
Today you are studying: How and why new business ideas come about
Independent/paired Research
• Research and write down
• Use the knowledge you have gained about small, local
businesses to:
• Write down how the changes in technology
• Consumer wants / habits
• Products and services