22.6.2 Internal factors influencing business opportunities While a business does not have control over its external environment, it will have some control over its internal factors, and these factors themselves can influence business opportunities. These internal factors range from decisions about the product, locations, resources and business culture. Businesses that can respond to opportunities quickly are often the most successful. Product Businesses need to respond and change their products to suit changing consumer needs and wants. Uber Eats is a good example of a business that has expanded its service offering from a ride-sharing service to a food delivery service. After identifying opportunities in the market, a business owner will need to respond to those opportunities in some way. This may involve developing new products to satisfy demand or changing the way the business delivers its products or services to consumers. A business might respond to opportunities in the market by developing a new product to satisfy demand. Product development can involve modifying an existing product or the way in which it is presented, or creating an entirely new product that meets the demands of a newly defined customer or market. Starting with an idea for a new product or an idea to modify a product, a business will go through a series of steps to bring the product to market.
SkillBuilder discussion Evaluating, concluding and decision making 1. Uber Eats officially launched in Australia in 2016. Do you think it was a ‘new’ product at the time? 2. What is the opportunity that Uber Eats took advantage of?
FIGURE6 Uber Eats is an example of a successful response to a business opportunity.
Location The location a business chooses can create opportunities or restrict them, according to the nature of the business. A business needs to consider how important passing trade will be, whether visibility is important, how important access to resources will be, or whether cost will be the most important factor. For example, a business that is hoping to sell to young people or young families would find limited opportunities if it was in an area whose population has an average age of over 60; a boutique fashion store would struggle to find customers if it was in an industrial area; and a business that manufactures goods might encounter difficulties if it was in an area that its suppliers could not access easily.
TOPIC22 Financial goals and decision-making 651
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