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Entrepreneurial Opportunity — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipEntrepreneurial Opportunity5 Marks
Question
Before identifying a feasible product or process, an idea should be tested along certain parameters which involves a number of steps. Explain the first four steps.
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Answer

First four steps are:
  1. Identification: Identification of a product or service is the first step. The idea provides the concept of the product or service. Already existing products guide the entrepreneur in understanding the scope of inngyations that can be undertaken. If a totally new product is to be launched, then the policy related with advertising, sales promotion, popularizing are to be effectively prepared. A critical analysis of the product in light of the competition to be faced, choices of the customers, extent of the customers, etc., is to be made.
  2. Evaluation of use and application: The present use of the product/ service is to be found out. This helps in innovating the existing product and in increasing the dependability on the product.
  3. Level of operation: Depending on the nature of the enterprise, the production is undertaken, the enterprise can be small scale, medium scale or large scale industry. Quantity of production is considered. Requirement of labour, technical experts, skilled labour, etc., all are to be considered.
  4. Cost: The per unit cost of production is different for different levels of operations. Is the cost competitive? This is to be answered as the price of the product depends on it.

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