Exam 10: Product Design and Development

Identify eight major questions to ask when assessing competition.

A _____ business offers such products as haircuts or taxi rides.

To be granted a patent, a product must have marginal utility.

The goals of an entrepreneurial start-up include profitability and growth.

Breakeven analysis is an approach used to determine the level of sales at which a company will have no profit or loss.

Your goal is to sell jogging shoes to those 65 and other who live in Florida. Here is some information you have collected: (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida. (3) Florida attracts 20% of all people who move when they retire. (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older. (5) You estimate that your sales will increase by 25% in year 2. -Which piece(s) of information is/are irrelevant to the problem

To get some idea of the total market for products like the one you want to launch, you could begin by _____.

Let’s say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how many pairs of shoes you have to sell in the first year to break even (have no profit or loss). You also want to know what your profit will be in year two. You have been busy estimating some revenues and costs. Here is what you have so far: Cost (to you) per pair of shoes \8 0 Sales commission per pair of shoes \1 0 Managers’ Salaries \4 20,000 Rent \1 20,000 Advertising \2 0,000 Insurance \1 6,000 Miscellaneous fixed costs \2 4,000 Selling price per pair of shoes \1 60 -What is the contribution margin per unit

You have a better chance of getting your idea patented if the invention:

What is a niche?

BetterBuilt Products, a large machine shop in the Pacific Northwest, employs 138 people in design, accounting, sales, purchasing, production, and delivery. The company’s machined products are of the highest quality, production almost always stays “on track,” and delivery generally meets or exceeds customer expectations. Management regularly looks for ways to improve effectiveness and efficiency of operations by reducing production/cycle time and cutting costs. -A project team is formed at BetterBuilt when management assembles personnel from different functional areas to work together throughout the product development process.

Individuals from various functional areas who work together to design a product are called _____.

To decide what new products to come out with or what old products to improve, businesses rely on:

You should document your idea as soon as you think of it. This can be done by filling out a form, stating the purpose of your invention and the current date, and then sign it and have someone else witness it.

BetterBuilt Products, a large machine shop in the Pacific Northwest, employs 138 people in design, accounting, sales, purchasing, production, and delivery. The company’s machined products are of the highest quality, production almost always stays “on track,” and delivery generally meets or exceeds customer expectations. Management regularly looks for ways to improve effectiveness and efficiency of operations by reducing production/cycle time and cutting costs. -Aware that new products need to be protected from competitors, BetterBuilt management knows that they're more likely to be granted patents if they're new and not obvious and boast some utility.

Which of the following venture is riskiest

Getting feedback to refine the product concept is one of the seven steps in the _____ process.

The product design specifies how a product is to be made and what it's supposed to look like.

In addition to being creative people, entrepreneurs are generally also _____.

During the product development process of _____, a product development team focuses its attention on making a high-quality product at the lowest possible cost.