Question

These are convenient frames of reference for streamlining the process of generation of ideas. Identify them and explain any three briefly.

Answer 1

(i) Natural resources: Ideas can be generated based on natural resources. A product/service may be desired from forest resources, agriculture, horticulture, mineral marine, or aqua mineral, animal husbandry, wind, sun and human resources. A further exercise with a field may generate many useful products ideas. For example:
If we are getting ideas in the field of forest resources, we think wood- based product, bio-fertilizers, etc. Solar energy is used for many purpose like cooking, electricity consumption and water heater.
(ii) Existing Products/Services: Existing products and services can general number of ideas to improvise the product, to come up with cheaper substitution or sometimes by reducing the price of the product.
There is a constant and consistent effort on the part of all entrepreneurs to improve the product/services already existing in the market. This can be improved by using old techniques with more care or using newly developed technology. So, thinking about existing product/ services he can generate number of ideas to improve them.
For example:
(a) Thinking of introducing Laser Printer in place of Dot Matrix Printers.
(b) In an area, where automobiles are being made, there is a scope of starting a small unit of spare parts.
(iii) Service Sector Ideas:
(a)Service sector field is the most growing field these days all over the world. It emerges knowledge to societies doing advance research in information technology.
(b)An entrepreneur identifies new opportunities and by understanding it he links services to develop various business activities.
(c)Various service base units in an enterprise are transport, security, catering, recruitment, training and communication, health care centres.
(d)It serves the purpose of helping enterprise to satisfy their day-to-day needs like bill collection, water tank cleaning, travel arrangement, etc.
(e)For example: Cyber cafe (internet facilities), ATM Facilities and other banking services, Metro trains, etc. In Amongst the most interesting ones in the food sector are the following:
•Indian fast food chains: McDonald’s and Pizza Hut can be the role models in terms of efficiency of service, hygiene, quality, and overall value.
•Family dinner: Nirula’s offering Indian style “Plated or Combo” meals with table service and overall good price-value equation.
•Ice-cream and Juice/Beverage Parlours, (Indian “desserts” and “snack food” chains).
Lastly, in the genre of food and food service chains, one of the biggest opportunities remains in starting national or at least regional chains offering Indian mithai, namkeen/ farsaans, and snack-foods such as pakodas and samosas. Haldiram’s success should certainly put any doubt on this opportunity to rest.
(iv)Market driven or demand driven ideas:
(a)For an entrepreneur market is the only place where he can carry out or generate maximum ideas. Such a study yields valuable data about trends of supply, demand and consumer taste and preferences.
(b)Market research is any organized effort to gather information about target markets or customers as it is one of the important component of business strategy.
(c)Market research is a key factor to maintain competitiveness over
competitors and it provides important information to identify and analyze the market need, market size and competition.
(d)It also includes social and opinion research by systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision-making.
(e)Idea generation develops from knowledge of the consumer, the market, the technology and the general environment, and it creates newness in product, production and marketing. It systematically develops product ideas to satisfy the aim of the project and therefore the business strategy.
(v) Trading related ideas:
(a)Trade in simple terms is buying goods and services and selling them to consumers at a profit. One big advantage that trading has over other types of businesses is that it is easier to launch and less risky.
(b)Trading these days is not limited to ordinary grocer or distributor outlets. With increasing consumerism, the scope and nature of trade has enlarged; local trade, import and export, e-commerce are all making trading a very wide area of enterprise. It is however, necessary for a prospective trader to be aware of the trends in an economy.
(c)With the opening of the market to International Companies, large size departmental stores, chain shops and umbrella markets have become omnipresent; competition has become intense and to survive in the market new entrants will have to acquire skills, competencies and knowledge required to launch, manage and expand business opportunities.