The purpose of the first assignment is to provide you with a vehicle to explore possible business ideas and to select a business to develop through the course. The Concept Statement should identify the features of your product/service, target market, benefits, or value of your product/service, and who will make up your management team.
You will develop a concept statement for the business idea you are proposing and receive feedback from your peers. The business can be one of three possibilities:
Business start-up
Promoting an innovative product or service with a company where they are employed
While brevity is the hallmark of a solid Business Concepts Statement, it should still include key elements and provide a thoughtful analysis of your idea, a glimpse of the existing market, and a value proposition that distinguishes you from the rest of the market.
Think of it as your opportunity to describe what your idea is, why is it important, who are the potential customers and how the customers will benefit from this product or service. This statement is the heart of your business plan.
This is a relatively short statement but an important one. Make sure you explain your idea clearly identifying the benefits but keep in mind the benefits might not be as clear to others as it is to you.
Once you’ve finished developing your Business Concept Statement, you’ll have a useful tool to pursue business partners, investors, lenders, advisors, mentors, peers, and even future employees.
Here is an example of a product concept statement for a company that is introducing a new in-cup tea brewing system:
Example:
Many people enjoy drinking tea but are concerned about the environmental impact of discarding teabags, some of which are made from bleached paper or contain non-biodegradable materials. In addition, a more sophisticated generation of tea lovers is attracted to loose-leaf tea, which is often considered to be of higher quality than the leaves used in bags.
The trouble is that preparing loose-leaf tea is often time-consuming and requires special equipment. Traditionally, strainers containing tea leaves have been placed over cups with hot water being poured over the leaves. During infusion, the strainer is kept in the cup, which must then be removed from the cup, and hot tea often drips on the surface of the drinker’s table or desk. After the consumer drinks the tea, the tea drinker often discovers that she needs to wash the cup, the strainer, and the surface upon which she has been enjoying her beverage.
The Tea-in-One solution combines a tea mug and strainer into one product. The mug is ceramic, while the strainer is made from silicone so that the product is dishwasher and microwave safe. The mug has a lid that can be removed and turned into a resting spot for a strainer. The lid is concave, providing ample space for collecting liquid. To keep the tea hot, the mug is double-walled, providing insulation that allows the drinker to enjoy his tea at a leisurely pace.
The Tea-in-One comes in a range of 12 colors and patterns and is marketed toward adults, primarily toward women, who enjoy drinking tea at home or at work.
IInstruction
Provide a 1000-word response ranking your three ideas based on the environmental scan exercise. Select the one business idea you intend to pursue this semester and develop a concept statement for that plan. See Canada Industry Reports for sources of information and you may use other databases. You will receive feedback from the instructor on your submission. The Concept Statement portion of this response should address the following concepts.
Product or Service description that details the features of the product or service
Target Market description listing the consumers or businesses who are expected to buy the product or service
Identify the benefits or value of the products or service and how this will add value or solve a problem
Identify the management team you will assemble.
