2.01 - Design Thinking
What are the five steps of design thinking, in order?
Empathizing, Defining, Ideating, Prototyping, and Testing.
Schools and the military are examples of what type of sector?
Public Sector
What does SWOT stand for?
Strengths, weaknesses, opportunities, and threats.
What does PESTEL stand for?
Political, economic, social, technological, environmental, and legal.
What is the purpose of a feasibility study?
To determine whether a business idea is realistic and has a reasonable chance of success.
An entrepreneur interviews students about problems with their lunch bags. Which step is this?
Empathizing: learning about users’ needs and experiences.
Name three purposes of Government in Business?
Provide public goods, Stabilize the economy, Protect Consumers & Investors, Regulate workplace conditions, and Protect Business Property
A business has skilled employees and a strong reputation. Which SWOT category describes these factors?
Strengths: internal advantages.
Inflation increases the price of supplies. Which PESTEL factor is this?
Economic
What three things does a feasibility study assess, according to our notes?
Market demand, production costs, and financial viability.
Why should a team generate many ideas before choosing a solution?
To explore different possibilities
Name a NEGATIVE effect of the Government Regulation
Costly, More Staff Needed, Can effect business efficiency.
A business’s equipment breaks frequently and delays production. Which SWOT category applies?
Weakness: an internal problem involving the business’s own equipment.
Social media makes personalized clothing more popular. Which PESTEL factor best describes the change in customer preferences?
Social.
What three things does a Market Analysis consider?
Product Demand, Production Costs, and Competition
A team draws and labels a lunch carrier before spending money to manufacture it. Which step is this?
Prototyping.
A business makes misleading claims about its product. Which government purpose addresses this problem?
Protecting consumers and investors, including protection against false advertising.
More customers in the community want the type of product a business sells. Which SWOT category applies, and why?
Opportunity: an external change that creates a chance for growth.
Classify both changes: new software improves online shopping, and flooding interrupts deliveries.
Software: Technological
Flooding: Environmental.
When should you NOT conduct a feasability study?
When the ideas are not serious, when there is not enough financing, and when the business model has already been proven.
Users say a prototype keeps food organized but is too heavy. What step is this?
Testing. Users are able to give feedback.
Rules addressing dangerous working conditions serve which government purpose?
Regulating workplace conditions and protecting employees’ safety.
A business depends heavily on one clothing trend.
Weakness: Heavy dependence on one trend is an internal weakness involving the business’s strategy.
Classify both changes: tariffs raise import costs, and a law requires businesses to protect customer information.
Tariffs: Political.
Customer-information requirements: Legal.
A product sells for $10 and costs $4 per unit to make. Startup equipment costs $120. How many units must sell to cover the startup cost? Assume no other costs.
20 units. Each sale contributes $6 toward startup costs: $120 ÷ ($10 − $4) = 20.