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Idea Evaluation STUDENT NAME INSTITUTIONAL AFFILIATION
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Introduction Organizations are increasingly exploring various products and services. The selection of the most viable business idea requires creative processes. The evaluation processes seek to develop a decision-making framework. The paper will explore coffee shop establishment idea.
Idea Evaluation Establishment of coffee shop in Perth, Australia. Idea is immensely contributed by evaluation of several factors. The most prolific factor based on the increased coffee consumption in the area. Making the idea likely to be profitable. Several of the forces that include: Clients Actual Product Timing Competition Financial strength
POEM Framework CustomerProductFinance Customers ought to be clearly indefinable Possibility of market segmentation Clients accessibility Clients loyalty Focused and tight niche Market-to-team fit Cash flow requirements Reasonable margins Demand and supply constraints Sunk costs TimingCompetition Latest competition surge Aligment of secular trends Commoditization signs Fitness in competition Entry barriers Defendable position Limited competitors
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Idea Selection Coffee shop is a factor of environmental analysis. Coffee consumption rate is high. A successful business idea has a strong backing of customers.
Idea Selection Few skills that are required to execute the idea. The processes are cheap and quick. The business more profitable and doable. Low investments in preparation equipment and recruiting workers. Availability of skills plays a critical role in facilitating the success of the concept at hand.
Idea Selection Choice of the business idea is enhanced by the growth in the industry. Unique brands that serve their client's interests. The coffee shop hopes to increase the size of their mugs. The idea will allow the implementation of customer-oriented pricing strategies. The scenario will be achieved by engaging in research and development.
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Improvements to be made on the Selected Business Idea A successful business idea is a component of research and development. The idea must be followed by a severe information gathering. Among the gaps and improvements that could be addressed include:
The gaps and improvements that could be addressed Brainstorming Product Issues. Reviewing of Customer Complaint Feedback from the Industry. The involvement of Suppliers and Business Partners.
Revised Business Canvas ModelKey Partners Investing in business partners, firms and suppliers for the purpose of gaining moreknowledge Key Activities Networking and ding more research and development campaigns. Implementation of strategies aimed at improving brand image and reduction of technicalities. Development of efficient distribution channels. Value Propositions Interaction with diverse customers to target them, their needs with the aim of making them potentialclients Receiving and sorting recommendations from suppliers, business partners, and industries. Rewards to loyal clients as a way of product promotion. A customized and personalized service delivery to the clients. Efficient skills incorporation and development of initiatives to enhance increased brand image. Customer Relationships Facilitating personalized and one on one modes of communication. Implementation of the use of mass media and social media marketing. Customer Segments The customers include existing customers in the market that must be pouched through product differentiation and vigorous pricing strategies. Customers of the diverse backgrounds which include existing market, merchants, and primary clients for the company. Key Resources Raw materials are likely to be sorted by developing a good working relationship with suppliers and other business associates in the food and beverage industry. Investing heavily on transportation Storage Facilities Human Resource and Machinery. Channels Distribution networks ought to be customer-oriented that favor personal selling. This will enhance the collection of feedback from the customers and attending to their concerns Cost Structure Fees connected to the retail chain store management of the coffee shop. The charges associated with the registration. Development and Maintenance Charges Employee fees Production and Cost of Operations Revenue Streams Advertising policies and implementations. Bulk buying form the respective suppliers will facilitate award of trade discounts and cemented relationships.
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Coffee Shop Cash flow Projections (Estimates in dollars)Year OneYear Two Best Case ScenarioWorst Case Scenario Cash at the start7500-4,770 Total Cash in95006,650 Total Cash out11,16010,160 Totals5,840-8,380
Conclusion In conclusion the process of idea development and implementation is a lengthy process. Idea evaluation is an integral step which provides the ground through which the viability can be analyzed. The business canvass model has been revised to incorporate the changes that crop upon idea evaluation. The paper has provided cash flow projections in case of idea implementation both in worst and best-case scenarios.
References Buisonje, D. R., Ritter, S. M., de Bruin, S., Horst, J. M. L., & Meeldijk, A. (2017). Facilitating creative idea selection: The combined effects of self-affirmation, promotion focus, and positive affect.Creativity Research Journal,29(2), 174-181. Cabage, N. (2019). A Framework for Evaluating Market Opportunity. Retrieved 6 October 2019, from https://www.mindtheproduct.com/poem-framework/ Davcik, N. S., & Sharma, P. (2015). Impact of Product Differentiation, Marketing Investments, and Brand Equity on Pricing Strategies: A brand level Investigation.European Journal of Marketing,49(5/6), 760-781. Gabriel, A., Camargo, M., Monticolo, D., Boly, V., & Bourgault, M. (2016). Improving the idea selection process in creative workshops through contextualization.Journal of cleaner production,135, 1503- 1513. Rietzschel, E. F., Nijstad, B. A., & Stroebe, W. (2010). The selection of Creative Ideas after Individual Idea Generation: Choosing between creativity and impact.British journal of psychology,101(1), 47-68. Stevanovic, M., Marjanovic, D., & Storga, M. (2015). A Model of Idea Evaluation and Selection for Product Innovation. InDS 80-8 Proceedings of the 20th International Conference on Engineering Design (ICED 15) Vol 8: Innovation and Creativity, Milan, Italy, 27-30.07. 15(pp. 193-202).