07 SEATWORK 1

QUESTION: Mr. Pyeong created his product without understanding the market or the users. He
started doing business by just establishing and producing it the way he thought it should be. At
first it was patronized because it is new to the market. Many people bought it upon production.
Imagine a milk tea in a can. Aside from the idea that he believes that the environment matters,
he claimed that it is handy compared with the usual one. Without projecting the possible
changes in the market and consumers preference after two (2) months, the profit he gained
from its opening doubled as losses.

ANSWER: MR Pyeong insisted on doing what he wants in terms of starting a business, which is
incorrect. Every business should have a clear plan in place before getting started, as this will help
you determine how you will create or produce your business. Additionally, entrepreneurs should
consider what will happen to the business soon.