Question

Business Issues (a) Fixed and variable costs The cost of assembling a computer requires $300 worth of parts, 2 hr of direct labour at $35/hr and incurs an overhead cost of 400% of labour. If your MARR was 35% per computer, what is the minimum price you would accept for the computer?

(b) List the “five forces” in Michael Porter’s “Five Forces Model” for describing the dynamics of competition.

(c) Convert the following poor objective into a S.M.A.R.T. Objective. “My Team wants to establish a company in Singapore”

(d) List at least four (4) types of Intellectual property.

(e) What is the difference between an invention and an innovation?

(f) Name the three (3) main characteristics of a disruptive innovation.

Answer 1

b) Porter’s five forces

Porter's Five Forces is a business analysis model that helps to explain why different industries are able to sustain different levels of profitability. The model was published in Michael E. Porter's book, "Competitive Strategy: Techniques for Analyzing Industries and Competitors" in 1980. These forces are:

1. Competition in the industry

2. Potential of new entrants into the industry

3. Power of suppliers

4. Power of customers

5. Threat of substitute products

c) My team wants to establish a Consulting Company consisting initially of 5 employees in Singapore by the year end.

d) Four types of intellectual property:

• Trade Secrets.
• Trademarks.
• Copyrights, and.
• Patents.

e) Characteristics of disruptive innovation:

• Leverage data to get closer to users, customers or fans.
• Can be more responsive to customer’s behaviours and needs.
• Tap into consumer’s latent desire.

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