BDI3U – Grade 11 – Entrepreneurship – Unit 2 Notes

Entrepreneurship Notes

Unit 2

Brainstorming Involves: Fluency:

– Requires many responses for a given solution Flexibility:

– Be open-minded Originality:

– Be creative, express new and unusual ideas Elaboration:

– Expand on your ideas

Rules to follow:

  • –  Don’t judge
  • –  Encourage free thought
  • –  Try for quantity, not necessarily quality
  • –  Combine & improve ideas

    Warm Up Activities:

  • –  Brainstroming warm-ups are useful for getting people into the right frame of mind for

    a brainstorming session to:

    • –  Maximize creative results
    • –  Overcome stumbling blocks
  • –  Simple warm ups include:
    • –  Word games that are mentally stimulating
    • –  Practice runs with imaginary problems

      Benefits of Group Brainstorming

  • –  Helps the members of the brainstorming team think “outside of their boxes”, opening

    creative doors

  • –  A diverse brainstorming team allows for multiple bases of knowledge and experience

    to come together

HAT COLOUR

HOW DOES THIS HAT ‘THINK’?

WHITE HAT

  • –  Stands for neutral, objective and non-emotional
  • –  White is effectively colourless
  • –  Focus instead on the facts and figures, on the data and information

    available

  • –  You try to extrapolate trends from historical data and search for gaps

    knowledge

  • –  What information do we have? What information do we need?

YELLOW HAT

  • –  Sunny and optimistic
  • –  Take time to be hopeful and think positively
  • –  This viewpoint will help you to see all the benefits and the value in the

    decision

Examples of Red Hat:

  • –  Whenever I think of math, I get anxious
  • –  I don’t know. I just don’t like the idea- I feel jittery
  • –  I appreciate everyone’s input; however, the parent’s response makes me nervous
  • –  My insides are telling me this is going to make people angry

    Examples of White Hat:

  • –  The title of this poem is “My Last Duchess”
  • –  How long did it take you to complete the question?
  • –  How old was this person when they discovered the idea?

    Examples of Black Hat:

  • –  We do not have enough evidence to make that decision
  • –  Our reasons for making that decision are not going to pay off in the long term
  • –  Have you considered whether or not the weight will reduce its stability?

    Examples of Yellow Hat:

  • –  It will work because of cost and it solves the problem
  • –  I like the ideas that all of you have shared, This shows the power of collaboration
  • –  Let’s identify the benefits of taking turns

Examples of Green Hat:

2

– What are the good things about this? What are the strengths and pluses? How will it help us? Why will it work?

BLACK HAT

  • –  Gloomy & negative
  • –  You take time to look at the risks and why a proposed solution would fai
  • –  Black hat thinking helps to make plans tougher, more resilient. It can

    help you spot fatal flaws

  • –  It can be overused
  • –  What problems could we face? What are the potential risks? What

    might go wrong with this? What are the weaknesses?

RED HAT

  • –  The emotional hat, where you can present view based on intuition, instinct, without explanation or justification
  • –  Look at problems based on your gut reaction, on your feelings
  • –  Try to understand the responses of people who do not understand your

    reasoning

  • –  What is your gut reaction? How do you feel about this right now? What

    is your intuition telling you?

GREEN HAT

  • –  Stands for creation of ideas, concepts and perceptions
  • –  Imagine a tree branching out and growing
  • –  When you are wearing the green hat, you’re concerned with change,

    and escaping the old ideas in order to find better ones

  • –  There is no criticism or judgement
  • –  What is possible? What ideas do you have? Can we combine these

    ideas? What would happen if..?

BLUE HAT

  • –  Stands for process, control, or taking an overview
  • –  Think of the blue sky over us
  • –  Wearing the blue hat means that taking a wider, higher perspective to

    ensure you are addressing the right issue

  • –  Questions they would ask: What do we do next? What have we done so

    far? What thinking is needed? What is our focus?

  • –  Maybe we need to go to another group to get additional ideas
  • –  Perhaps we could take this one idea and see if we can break it into simpler parts
  • –  What if we connected those three ideas? Would that be a possibility?
  • –  Suppose we make a mistake at step two; would this explain why we are stuck?

    Examples of Blue Hat:

  • –  We need to make sure that both the male and female perspective is considered
  • –  Let’s clarify what we now understand about the problem
  • –  What are we trying to do? Let’s lay out a plan of action
  • –  Suppose we make a mistake at step two; would this explain why we are stuck?

3

Pre- Start Up:

  • –  Research is done, ideas are investigated
  • –  When you create your venture plan
  • –  Careful budgeting and planning are important
  • –  Test the markets response to your ideas
  • –  Review your resources and consider how to best allocate them

    Start Up:

  • –  Arrange for any financing you will require
  • –  The goal in this stage is to reach the break-even point
  • –  Highest marketing costs (to get your name out)

    Rapid Growth:

  • –  Bring in external “experts” to help grow the business
  • –  Expand your product line, broaden your customer base or open new locations
  • –  Improve the profit/efficiency of your venture

    Maturity:

– Sales start to plateau

Decline:

  • –  Product sales have decreased and/or is no longer profitable
  • –  Normally leads to layoffs, restructuring, selling of non-productive assets, cancelling

    product lines, etc.

– Think of what the major car companies needed to do a couples years ago

– New management and consultants may be brought in to help turn the company around

*Depending on what your company does in the turn-around stage, the company will either die or be reborn*
Rebirth:

– Company establishes new revenue flows, increases working capital and re-enters the life cycle growth stage

4

Death:

  • –  Company goes bankrupt, sells off it’s assets to pay its creditors amd ceases to exist
  • –  $ goes to creditors first, then anything left over will go to shareholders/owners Trend:​ a pattern in lifestyle that lasts a long amount of time (decades)
    Fad:​ a pattern or change in lifestyle that lasts a short period of time (months)
    SWOT Analysis

    A tool that analyzes an organization and its environment S​- strengths

  • –  What is the business good at? What is it that you do better than your competition?
  • –  Ex. A new or innovative product or service, location of your business, low prices,

    high quality

W​- weaknesses

  • –  What is the business doing wrong? What does your competition do better than you? What should you avoid?
  • –  Ex. undifferentiated products or services (in relation to your competition), location of your business, poor quality goods or services

    O​- opportunities

  • –  Areas where the company could take advantage of to improve their situation (trends,

    technology, etc.)

  • –  Ex. a developing market (internet), moving into new market segments that offer

    improved profits, a market vacated by an ineffective competitor, a new international

    market T​- threats

  • –  Anything that could feasibly harm your business
  • –  Situations that could lead to lost business
  • –  Ex. new competition in your home market, price wars with competitors, a competitor

    has a new, innovative product or service
    Strengths & weaknesses are internal factors (problems within the company) Opportunities and threats are external factors (problems outside of the company)
    Self Employment:​ working at home for someone or a company that you’ve created Benefits:​ flexible hours, save commute, less stress, office costs, more time with family Features:​ share workweek, anytime vacations, custom work schedule Disadvantages:​ no benefits, days you don’t work you lose money, no fixed salary, boredom