Asked by Melissa Mercer on Feb 18, 2024
Verified
Jill had to close a cupcake bakery that she had established close to home.Her total investment was just under $7,000,representing all her personal savings.She attributes her failure to a poor business model.She had assumed that customers would come from wealthy residential areas when,in fact,customers seemed to be employees of large corporations who bought the cupcakes for office celebrations.In spite of her losses,Jill is hoping to start another cupcake bakery.Explain why this might be so.
- Understanding the importance of market research: Jill may have realized that her failure was due to a lack of understanding of her target market. By conducting proper market research, she can identify the right customer base and tailor her business model accordingly.
- Identifying the need for a revised business model: Jill may have recognized that her previous business model was flawed and did not align with the actual customer demand. She may be motivated to develop a new business model that caters to the needs and preferences of her target customers.
- Learning from past mistakes: Jill's experience with her first cupcake bakery may have taught her valuable lessons about running a business. She may be determined to apply these lessons and avoid making the same mistakes in her new venture.
Verified Answer
TE
Tonia Elmore
Feb 18, 2024
Final Answer :
The experience of failure has heightened Jill's learning experience.She has identified the cause of failure and can correct the error by locating near a business district in the future.In addition,she can transfer all her business experience to the next business,making success more probable.
Learning Objectives
- Understanding the importance of market research: Jill may have realized that her failure was due to a lack of understanding of her target market. By conducting proper market research, she can identify the right customer base and tailor her business model accordingly.
- Identifying the need for a revised business model: Jill may have recognized that her previous business model was flawed and did not align with the actual customer demand. She may be motivated to develop a new business model that caters to the needs and preferences of her target customers.
- Learning from past mistakes: Jill's experience with her first cupcake bakery may have taught her valuable lessons about running a business. She may be determined to apply these lessons and avoid making the same mistakes in her new venture.
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