EEE 457 STUDY GUIDE EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
Opportunity Process - ANS Opportunity -> Concept -> Business Model -> Business Plan
Opportunity - ANS A favorable set of circumstances creating a need for a new business
concept
A situation where something can be improved
The existence of "pain" that can be removed
Solving something that is unsatisfactory
An unserved or underserved market
Successful products: FedEx, wireless printers, HD TV
Opportunity Identification: - ANS Deliberate or active search
Everyday discovery
Own experiences (business/hobby/friends)
Social networks (professional, industry, personal, family)
Essential Qualities of Opportunities: - ANS Attractive:
Must be demand for the new product or service
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
,Durable:
The length of time available to develop and sell the product or service must be long enough to
make it worthwhile.
There must be a sufficient window of opportunity
Achievable:
They must be physically possible and realistic
Round-trip vacations to the moon might sell really well. But unrealistic with current technology
Anchored in a product, service, or business that creates value for the end user
Way to Spot Opportunities: - ANS Industry Experience
Social Networks
Cognitive factors
Studies have shown opportunity recognition may be an innate skill or cognitive process. Some
believe entrepreneurs have a "sixth sense"
Creativity
Opportunity Recognition Process: Tom Lumpkin - ANS Opportunity Discovery - Phase 1
Opportunities are identified.
This draws on a persons personal background and experiences
Preparation -> Incubation -> <- Insight (Eureka experience, problem solved, idea share)
Formation Phase 2:
Formation, Elaboration, Evaluation
Methods:
Feasibility Analysis
Market Testing
Operations & Logistics Planning. See photo
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, Rogers' Adoption/ Innovation Curve: - ANS Innovators (2.5%)
Early Adopters (13.5%)
Early Majority (34%)
Late Majority (34%)
Laggards (16%)
Typical "E" Progression: - ANS 1. Define Opportunity:
Product/Service: the unique offerings of the firm
2. Imagine Product/ Service:
3. Clarify the Business Concept:
Business Concept: the firm's value proposition goes beyond product/service, focuses on
customer need, pricing, packaging, distribution, and other sources of value
4. Grow into the Formal Business Plan
Business Concept: the firm's value proposition, goes beyond product/service, focus on customer
need, pricing, packaging, distribution, other sources of value
5. Conduct a Feasibility Analysis
6. Grow into the Formal Business Plan:
Business Model: translates the product and concept into a viable business entity, includes firm
strategy, firm architecture, and how it will make money
A Viable Business Model must... - ANS Match the opportunity to the concept
Distinguish from competitors
Charge more than expenses
Provide the Customer with a Product/ Service
Acceptable Return on Investment
Sustainable
3 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS GRADED A+
2025/2026
Opportunity Process - ANS Opportunity -> Concept -> Business Model -> Business Plan
Opportunity - ANS A favorable set of circumstances creating a need for a new business
concept
A situation where something can be improved
The existence of "pain" that can be removed
Solving something that is unsatisfactory
An unserved or underserved market
Successful products: FedEx, wireless printers, HD TV
Opportunity Identification: - ANS Deliberate or active search
Everyday discovery
Own experiences (business/hobby/friends)
Social networks (professional, industry, personal, family)
Essential Qualities of Opportunities: - ANS Attractive:
Must be demand for the new product or service
1 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
,Durable:
The length of time available to develop and sell the product or service must be long enough to
make it worthwhile.
There must be a sufficient window of opportunity
Achievable:
They must be physically possible and realistic
Round-trip vacations to the moon might sell really well. But unrealistic with current technology
Anchored in a product, service, or business that creates value for the end user
Way to Spot Opportunities: - ANS Industry Experience
Social Networks
Cognitive factors
Studies have shown opportunity recognition may be an innate skill or cognitive process. Some
believe entrepreneurs have a "sixth sense"
Creativity
Opportunity Recognition Process: Tom Lumpkin - ANS Opportunity Discovery - Phase 1
Opportunities are identified.
This draws on a persons personal background and experiences
Preparation -> Incubation -> <- Insight (Eureka experience, problem solved, idea share)
Formation Phase 2:
Formation, Elaboration, Evaluation
Methods:
Feasibility Analysis
Market Testing
Operations & Logistics Planning. See photo
2 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
, Rogers' Adoption/ Innovation Curve: - ANS Innovators (2.5%)
Early Adopters (13.5%)
Early Majority (34%)
Late Majority (34%)
Laggards (16%)
Typical "E" Progression: - ANS 1. Define Opportunity:
Product/Service: the unique offerings of the firm
2. Imagine Product/ Service:
3. Clarify the Business Concept:
Business Concept: the firm's value proposition goes beyond product/service, focuses on
customer need, pricing, packaging, distribution, and other sources of value
4. Grow into the Formal Business Plan
Business Concept: the firm's value proposition, goes beyond product/service, focus on customer
need, pricing, packaging, distribution, other sources of value
5. Conduct a Feasibility Analysis
6. Grow into the Formal Business Plan:
Business Model: translates the product and concept into a viable business entity, includes firm
strategy, firm architecture, and how it will make money
A Viable Business Model must... - ANS Match the opportunity to the concept
Distinguish from competitors
Charge more than expenses
Provide the Customer with a Product/ Service
Acceptable Return on Investment
Sustainable
3 @COPYRIGHT 2026 ALLRIGHTS RESERVED.
