Leaving Cert Business Management Skills: A) Outline the internal and exte

Question

A) Outline the internal and external sources of new product ideas for companies like Google.

Internal

1. Brainstorming sessions. This involves people from different areas of the business coming together and creatively thinking up new ideas. Team dynamics and individual creativity are both vital in these sessions.

2. Sales personnel. Market feedback from sales representatives plays a significant role in ideation for new products based on customer demand.

3. Ideas from employees through suggestion schemes or idea boxes. This can be incentivized through rewards for innovative ideas that lead to new products.

4. The R&D department may discover new products or improve existing products through their work, which can also lead to new product development.

External

1. Monitoring competitors and copying their successful product ideas, while being mindful of patents and copyright laws (e.g., Samsung and Apple).

2. Import substitution, which is where a product that is currently imported is replaced by a locally produced product of a similar quality or price.

3. Market research companies that analyze market trends can also inspire companies to develop new products to meet customer demands.

B) 'For a business to survive it needs to grow and expand'. Evaluate two methods of business expansion.

1. A merger.
   - This is the voluntary joining together of two or more firms for their mutual benefit, thereby trading under a common name. A single new legal entity is formed once approved by shareholders.
   - Advantages include economies of scale that can help reduce costs and risks.

2. A takeover.
   - This occurs when one company purchases 51% or more of the shares in another company, effectively taking control of that company.
   - Though this can lead to quicker market share gains, it may also lose the identity of either company, which can be detrimental.

C) Discuss the short-term and long-term implications of business expansion using the following headings:

Organization Structure:
   - Short-term: Business may need to adopt a more complex structure to handle increased activities.
   - Long-term: Organizations may expand into new geographies which will require new structures to manage efficiently.

Product mix:
   - Short-term: Expansion increases complexity in product offerings, which may complicate the marketing strategy.
   - Long-term: Businesses may have to invest more in R&D to diversify their product mix.

Profitability:
   - Short-term: Initial costs may rise before profits are realized due to restructuring.
   - Long-term: Higher profits may be achieved through economies of scale.

Employment:
   - Short-term: Expansion may lead to layoffs due to redundancy.
   - Long-term: Expansion may necessitate hiring new employees, which can lead to increased morale and productivity.

A) Outline the internal and external sources of new product ideas for companies like Google - Leaving Cert Business - Question 6 - 2013

Worked Solution & Example Answer:A) Outline the internal and external sources of new product ideas for companies like Google - Leaving Cert Business - Question 6 - 2013

Outline the internal and external sources of new product ideas for companies like Google.

Internal Sources

External Sources

Evaluate two methods of business expansion.

Discuss the short-term and long-term implications of business expansion using the following headings: Organization Structure

Short-term Implication

Long-term Implication

Product mix

Short-term Implication

Long-term Implication

Profitability

Short-term Implication

Long-term Implication

Employment

Short-term Implication

Long-term Implication

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