Follow the five $(5)$ steps listed on the next page to complete the activity. When complete, all six tables plus the Summary table will be filled in$.$

SUMMARY TABLE

$$Business Idea #$1$

$$Business Idea #$2$

$(1)$ Market

Able to access market of growing size and value

Trust and open relationships with clients; compatible practices

$(2)$ Innovation

Learn as you go along to catch up

Application solves a problem informed by customers$$ needs

$(3)$ Strategy

Multiple strategic and exit options

High value creation from high profit margin and cash generation

$(4)$ People

No pre$-$knowledge of industries or technology

Able to recruit experienced people from within industry

$(5)$ Investment

Long$-$term opportunity and income stream

$-$

$(6)$ Learning

Personal vision and confidence in business potential

$-$

Totals

$4$

Sum of $6$ scores above...

Based on the scores in the Summary Table, select which New Business Venture you would choose and provide a brief description as to why:

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Opportunity selection model steps:

For each of the six $(6)$ tables shown below, look at the factors identified, $($middle column$),$ and discuss as a team to decide which side column, $($high value or low value$),$ each of your two $(2)$ business concepts falls into.

Mark a symbol $1$ for both businesses in either box on each factor which most closely matches your business opportunity. Complete this for BOTH concept #$1$ and concept #$2,$ so you should end up with thirty $(30)$ different symbols for each business.

When complete, count how many factors for each concept have been marked in the high$-$value opportunity box, $($left hand column$).$

Count each $$symbol$$ as $1$ point and give $0$ points for factors marked in the low$-$value opportunity, $($right hand column$).$

Input the point totals for each of the six tables for both concepts in the Summary Table above and calculate the totals.

Input Tables.

High$-$Value Opportunity

$(1)$ Market

Low$-$Value Opportunity

High$-$Value Opportunity

$(2)$ Innovation

Low$-$Value Opportunity

Able to access market of growing size and value

Market growth

Limited growth potential in smaller markets

Able to lead the market using prior experience

Innovation leadership

Learn as you go along to catch up

Known, identifiable customers in defined market sector

Customer base

Limited or non$-$specific customer base

Application solves a problem informed by customers$$ needs

Innovation related to customer needs

Application does not solve customers$$ real problem

Customer reliance on product increasing over time

Customer reliance and convergence

Customer not reliant on product, divergent from their needs

Differentiated technology; optimal performance and cost benefits

Technology differentiation

Undifferentiated technology; marginal performance and cost improvement

Trust and open relationships with clients; compatible practices

Customer interaction

Adversarial customer relation$-$ships; lack of fit

Strong IP protection with clear ownership and control, hard to copy

Intellectual property

Weak or no IP protection $$ can be copied

Long$-$term partner$-$ship within strong supplier and technology networks

Partnering and networks

One$-$off relation$-$ships within weak networks

Opportunity to be first to market

Speed to market

Follower to market

Unique advantages and strengths apparent in relation to competitors

competition

Undifferentiated from competitors, forced to compete on price

Implementation feasible; challenges can be overcome

Feasibility of implementation

Difficult to implement with many obstacles

High$-$Value Opportunity

$(3)$ Strategy

Low$-$Value Opportunity

High$-$Value Opportunity

$(4)$ People

Low$-$Value Opportunity

Have a strategy to create and grow business

Business growth

Limited purpose and scope to build a business

CEO shows leader$-$ship in innovation

CEO leadership

CEO not an innovative leader

Multiple strategic and exit options

Strategic options

Single or limited exploitation options

Management team skilled, compatible and motivated to achieve

Management team effectiveness

Team lacks management skills fit and motivation

High value creation from high profit margin and cash generation

Value creation

Low perceived$$value