Management theory and practice
A business concept is a way to define an opportunity so that it can be tested through a process known as feasibility analysis. A feasibility analysis is a process whereby various components of the business concept are tested whether they are working properly and all the conditions are also in proper shape to move the business forward.
No matter what type of business type is to be done, the feasibility study process has to be done for better planning and implementation. According to Microsoft company, it has used this business concept to excel in its business and has been able to face new challenges in the market. Microsoft company has been very competitive in the world due to the use of its business concept.
The company has used the concept to implement uses of software and to face challenges in the market This can be seen from the way the company has carried its business for several years,and it has maintained being in the market.
The Microsoft company used the concept in the marketing plan as they focus points of all businesses because it describes how plan to attract customers, which is the most crucial aspect of the business. The marketing plan of
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The organization or company using business concept well has a lot of advantages. These include: –
The company identifies needs and wants of a consumer as Microsoft company has used it to identify needs and wants of its customers so that it can boost profits and sales in the market, since it used the concept as a strategy in the business.
The concept has assisted the company to determine demand for a product, business concepts explain the logic behind demand and supply so that to increase products when there is demand so that customers are satisfied.
The business concept assists in design of products that fulfill customer needs which has been heavily used by the Microsoft company. The concept outlines measure for generating the cash for daily operations to repay debts and to turn to profit centers. The concept assists to identify competitors and analyses the product or firm’s competitive advantage in the business. The business concept identifies the company to identify new product areas and to take advantage in the market before other companies.
This concept allows for test to see if strategies are giving the desired results to remain in the market for new challenges which will arise now and again. If the business concept is not applied properly, it has some disadvantages some of these disadvantages include, It can lead to faulty marketing decisions based on improperly analyzed data. Hence collapse of the business or company, the concept can create unrealistic financial projection if information is interpreted incorrectly hence making wrong decision for the company.
In any business to succeed, business concept has to be applied in real. Majority of businesses use this concept so that to be competitive in the market. Due rapid change in businesses,new techniques has to be used to avoid being obsolete in businesses. This concept has assisted organization for better way of designing businesses and tackle challenges.
1)Cole,G,A Management theory and practice (1996)
ACCA Study Text information analysis ( 2000)