Question

Question 01: Describe the important of business plan as the Scope and Value of the innovation? (15 Marks)

Question 02: Explain how to identify opportunities for innovation and entrepreneurship? (15 Marks)

Answer 1

Answering the first question as per the Chegg policy

Describe the importance of a business plan as the Scope and Value of the innovation?

A business plan or information memorandum is a document which tells the potential investors about the various aspects of the business and its key growth factors in the coming future. Based on this, they can decide about investing in the firm or not. The key areas in which a business plan focuses are:

1. Business model and firm's USPs

2. Current traction, market position, and profitability

3. Growth drivers of the business

4. Funding requirements and its utilization plans

5. Future growth plans

The scope of a business plan is to have a clear idea about the purpose for which it is being created. Many companies try to raise private equity through angel investors and venture capital firms and grow in the market. Many of the leading startups have done really well doing so. For example- AirBnB.

Value of innovation is another aspect for which the firms create the information memorandum. They try to analyze their current position in the market and make the necessary changes in the firm in order to improve their current levels. This can be done in terms of competitive advantage, raising more debt hence changing the capital structure or giving dividends. It can make sure that the company is installing continuous innovation plan in the firm so as to lead the market in the coming future.