CMAT 2024 | Innovation and Entrepreneurship | ACE CMAT Exam Section | Part 1 | BYJU'S #cmat #mbaexam

okay starting hey guys very very good evening to all of you welcome to the first session on cat Innovation and Entrepreneurship friends from by exam prep we are going to come to you with a lot of videos sessions uh knowledge sessions you can call it practice sessions you can call it whatever you want for cmat mhcd and all the other exams that are yet to come we are going to come up with session plan uh we're going to come up with uh we're going to come up with a session plan for you so please be in tune with us with our channel that is stay tuned to our Channel and click on the Bell notification icon subscribe to our channel so that you get notification about all these free live sessions today we're going to talk about Innovation and Entrepreneurship an entire section in your cmat exam and a very very important part so let's take a look at what is the agenda for today so today I'm going to talk about understanding this section uh it is a relatively new section not uh this is the third year that the section is being uh conducted so the first time it was introduced was in the year 2022 okay so 2023 they had a similar section and 2024 also you're expecting a similar section so what happens here how is it different from GK uh what is the syllabus and we are going to practice a few questions in today's session so this is basically what we have uh for the session today I have few chart ideas coming any idea of when will nms give calls for gdpi uh vinda nmims should be coming out with calls in the next 10 days or so post Pongal you can expect you can start expecting calls from nms also uh but yeah their their interviews would usually be in the mid of February okay well let's go ahead and take a look at what is the section all about now uh it is a section testing the students knowledge in the current scenario of Entrepreneurship guys remember India is one of the growing hubs for entrepreneurs we are having some of the great startups uh uh which which uh you know startups which we don't see anywhere else in the world for example you don't have the swiis and zato in many of the European countries in Australia even in us to a certain extent so you are having these unique ideas in India and India only and we are coming across so many startups so many startups on a day-to-day basis that it becomes imperative for any business aspirant to know about entrepreneurship as a whole so they want to understand how much of basic knowledge do you have about entrepreneurship and Innovation so that is what they want to test in this particular section it has like every other section 20 questions each question is plus four marks there will be four options McQ type and if you make a mistake you'll be getting a negative Mark minus one negative Mark okay uh there are three types of questions awareness questions basically uh simple questions with the four options it's whether you know the term what is the definition things like that then you have match the following type of questions and then we have a reasoning assertion type of question so these are the three types of questions once again what are the three types one is a basic McQ where you have a question and four options uh for example what is the meaning of this term and there'll be four options the second type of questions is match the following it's an interesting type of question question which I will share with you in the example of questions uh I have I'm going to have about four or five sessions lined up for you on Innovation and Entrepreneurship so we going to cover all the basics that are required for you to a this particular exam so don't worry we will cover all the three types of questions and the third type here is reason assertion type of question which I have as examples today by the way guys just so that you understand this is the third year I'm taking this particular uh topic for you on YouTu YouTube and uh I'm glad to say that over the last two years out of the 20 Questions 16 questions and 17 questions in the first year we had 17 questions that we discussed in the class that came up in the exam directly and last year out of the 20 16 questions have come in the exam directly so we know what we're doing when we are training you on this particular subject but let's go ahead and take a look at how is this section different from GK is it different from GK first of all the answer is both yes and no how can it be both yes and no well there is a reason for that I will say it is not different from GK if you go from one idea that is it is a question you have to have the knowledge and there are four options for that knowledge which option is correct you have to pick ultimately it is general knowledge because what is general knowledge general knowledge is a very very vast area it covers anything and everything right so if I ask you the meaning of this term well it is not necessarily entrepr ship and Innovation it can be treated as general knowledge also so effectively you need to understand terms meaning of terms uh when is it use what is the definition of these terms things like that so in that sense yes it is not different from GK however you can also argue that yes it is different from GK because there are different types of questions because there is a match the following type of question there is a reason ession type of question which GK doesn't have and the nature of questions here the nature of questions are a bit more technical it is not general knowledge you have to go a bit in depth in into Innovation and Entrepreneurship to understand certain terms you need to have certain Concepts see GK is not about Concepts it's about facts places people dates uh uh you know duration all of these things but here it is about understanding the concept also so yes in a way you can say it is not different in a way you can say it is different right uh sahil is saying I am from Mumbai what's the best way to get into jbms C or cmat or should I prepare for both well sah I'm not sure whether jbms is there in cmat anymore uh please make a check uh sorry it was not there in m c anymore I guess it is there in cmat so I think uh give your best shot at both why do you want to restrict your number of options give the best shot at both the exams but anyway let's move move on now what are the topics that I'm going to cover I'm going to cover Innovation management terminology obviously this is very very important because there are direct questions that have come the last before and the last year based on certain terms certain definitions then we will be looking at something called as Innovation adoption of life cycle so if we going to understand what is a life cycle in in Innovation then we we're going to look at something called as uh product life cycle all these terms which are based on Concepts then we looking at the three Innovation management ideas then we looking at creativity and its stimulation then we looking at creating entrepreneurial Ventures we're going to look at project management and then we going to look at entrepreneurship and government so these are the various topics that we're going to cover as a part of this learning uh phase so it's not just one session today we're going to cover only some part of it but over a period of four to five classes we're going to cover all of these terms clear V vinda I don't think mhct jbms is taking mhct anymore please verify that I remember distinctly that JBS is not considering MCT again I'm not really sure check it once okay now firstly in this Innovation and Entrepreneurship first of all what is innovation let's understand the meaning of this term Innovation according to Gartner it's an IT research firm Information Technology research and consultancy Company Innovation management is a business discipline that aims to drive a sustainable Innovative process or culture within an organization often times this Innovation management initiative sorry this Innovation management initiative utilizes a disruptive method of change to transform business so basically what does what are they saying there's they've given a definition here what is the definition of innovation or innovation management it is a business discipline it's a business uh uh discipline that aims to drive what why why do you use the word sustainable here because whatever change you're bringing that change should be able to carry forward it cannot be that I will do it for three days and the fourth day it is it is not viable I can't do it because I don't have any more money it cannot be like that right uh so you need to whatever change you're bringing in your business it should be sustainable meaning it should be you should be able to continue that forward without having a problem after going for a small length of time for example some people uh you know I'll take a very very simple hypo hypothetical scenario uh studying every day for 10 hours or 15 hours is it really sustainable you can do it for 3 Days 4 days 10 days 15 days can you do it for one year can you do it for 2 years every day 15 hours of study not possible you can do it for a small duration of time yes if you really have the will power you can probably do it for one year for IJ if some people do that but can you do it for you're talking about a business and business is not for one year or two years you're talking about the next decade every year can you can you spend 15 15 hours studying for the next 5 six years as an example just hypothetical scenario no right so your plan to progress in life should be sustainable so whatever your plan is it should be you should be able to carry forward for the remaining part of your life that is what is called as a sustainable idea so the process that you're going to bring should be you should be able to take it forward without having to deal with problems going for uh without having to deal with problems okay now how do you do this this change that you're going to bring in your organization it could be through a new product or through a technology or a change in the process itself there are multiple ways not just these three ways these are just three examples you can change a process itself you can bring a new product and you can bring a new process whichever way and other ways of doing these things also so a new business model maybe any of these things can bring a change in the organization for the better okay now there are three Innovation management ideas that's what we're going to talk about here when you're talking about Innovation and change there are three levels to this the smallest level is called incremental the the next level if you go a bit more than incremental it is called as a breakthrough and the most beautiful which will really put you up there on the map is called disruptive let's understand the meaning of these three phases okay now uh what is incremental by the way I've got some charts here sahil says he access both C and Cat yes sahil I was sure about that I'm not sure about mhct okay anyway let's go ahead uh C and mhct are not same rinda they're two different things mhct is Maharashtra C okay yeah so where we yes we talking about the meaning of these three terms incremental breakthrough and disruptive let's quickly uh understand what are these three just give me a moment guys yes uh incremental what is the meaning of incremental improving the current products services or process so you are not changing the product you're not changing the process you're not changing the service you are basically saying that whatever we have we are trying to make it better in that's what there's a meaning of name incremental right slow change so today you're able to study for 1 and a half 2 hours tomorrow you're incre inreasing it by 10 15 minutes 20 minutes so that's the meaning incremental is small steps breakthrough breakthrough is a new technology that pushes the product or service to a greater height so the product is the same the service is the same you are using new technology to change this product and give it a new phase but still the job it is doing is the same it still doing the same job and finally disruptive disruptive is basically those ideas that completely changes the market Behavior right it changes the market Behavior so Market was behaving in a certain way you bring in this idea which is a disruptive idea and the entire Market changes let's take an example of what are these three incremental is an example of gillet blades gillet blades there is a it started with a single blade then two blades then three blades four blades I think there is five six seven I don't know how many blades there are today so every time they put a new blade or extra blade not a new Blade the same blade again they'll put an extra blade and they called so basically what are they doing the product is the same it is doing the same thing they're doing a small change that is called incremental similarly coke coke existed it had one flavor you have add another flavor you you add another flavor ultimately it's the same sugar syrup which is okay uh me or may not be bad for you right so uh you have a Coke okay similarly new models of phone you have a Samsung phone you have an iPhone 145 so many M mes have come out about iPhone 145 uh well they're they're going to bring out iPhone 16 which is going to be same as iPhone 15 uh I I believe they over a period of time if I put four phones in front of you you'll not be able to identify what is what having said that it's still a change they will say that okay we have gone from 20 pixels to 25 pixels we have gone from two camera lenses to three camera lenses we have gone from 14 in to 14 and 1 12 in whatever what is a breakthrough a breakthrough is a product which is changed because of a technology for example Dyson brought a bagless vacuum cleaner so I was shocked when I heard for the first time because traditionally we are used to thinking that a vacuum cleaner is supposed to have that bag or a dub where you have a uh you know a tube which uh you know sucks the dust into it and it gets accumulated in that for the first time Dyson brought in new technology where you don't need to have that you can just carry it wherever you want to go it's it's a new technology in itself so that is called as a breakthrough for example if you look at uh the process change what is the process for using Office 365 earlier you have to buy it for one year or uh sorry you have to buy it uh once and that is it's there with you so you bought off Ms uh Office 2010 you bought it once it's going going to be there for you with for for your life no problem but if you want to go from 10 to 11: or 12 or 13 you have to buy again or if you want to go to 15 you have to buy again right so every it's like a car you buy a car it's going to be there with you and you want to new car you got a new model you'll get it you have to buy it again but they Chang this process from onetime purchase to a subscription model so what did they do here subscription model is basically saying that look you don't have to buy it once you subscribe for one year so if it is MS office right now 2023 you will get 2023 for the till the next year and if we launch 2024 because you already have a subscription you'll automatically get 2024 you don't have to pay for 2024 again however the subscription is for one year it's like your Netflix you take a subscription for one month you don't take it for a movie Whatever movies come in that one month you are free to watch but one month over you're going to subscribe again so that's the model so earlier they it was of one model they changed the model the process has changed that is called a breakthrough but the job is still the same similarly iPhone when it launched I'm not talking about changing of 8 to 10 10 to 11 11 to 12 iPhones okay uh it is um some other chats okay I think I answer all these charts yeah so uh iPhone when I say when iPhone was first time launched when it was launched for the first time that was a breakthrough because we did not have a full screen Smartphones at that point I don't know how many of you even remember this it was way back when I was in college Blackberry was a phone it was considered to be uh a really status symbol to have a Blackberry in your hand at that point right it was half keypad and half uh it is a small phone like the palm of my hand imagine this part uh being uh screen and this part being uh keypad so that was how Nokia was also like that Nokia was a big brand at that point then iPhone came and said I don't want any more buttons give me the entire part as a screen that was a breakthrough but it is still a phone keep that in mind now what is disruptive disruptive is the smartphone itself is disruptive when the first smartphone came what is the first smartphone so earlier you are only calling uh and then keeping back nothing else now a smartphone you are able to access Internet through your smartphone when that came in for the first time that is a revolution that changed the entire industry Behavior or think about U the cryptocurrency or think about uh let's say uh bu our own company or think about Netflix or the most best the best example think think about zato and swiggy the the entire ecosystem changed because of them Uber and Ola the entire ecosystem changed because of them the way in which the society behaves has changed such level changes are called disruptive changes and these are the examples of disruptive changes okay so till now guys is it clear what I'm trying to explain can I have a quick round of responses from all of you everyone quick round of responses can I see some responses please by the way guys if you really like this lecture and you want more such lectures please give me a like on this video because your likes are direct feedback for us if you give us less likes it means you don't like this and we'll discontinue this type of lecture and will'll give something else for you if you want such type of lectures more and more give us a like so that we understand that you like this and we should keep giving you more videos like this okay well let's move on now let's move on to so this is a theory for today I now I'm going to move on to the questions part so every day we're going to take some Theory so today we saw two three parts of theory and now we going to go into questions in questions also if there is anything to explain I'll explain so there is Theory going to be in questions also so first question for you guys what is the answer to this let's go ahead and take a look at the question so what is the answer thanks Tanisha aush vinda thanks for responding so what is the answer answer guys to this question which of the following is correct about Equity first of all let's understand what is the meaning of equity in a business term Equity is is the amount of money that is put by the people who are starting the business see if I want to start a panipuri or a golapa stall I have to put some money to buy the ingredients I have to buy the uh the tail where I going to put all of these right so that money I need to put in right into the business the money that I put into the business is called as an equity however an equity can be calculated in many ways so one way is equity is the ownership of assets that may have debts or other liabilities attached to them is it correct yes why let's take a look at it if I have an equity if I put in 100 rupees what am I doing with that 100 rupees I can buy an asset with it I can buy a stand or a you know tailor with it it is an asset so this money which is coming to me into the business as Equity is getting converted into an asset right so it is a ownership of assets correct right it can also have debt okay why is this moving forward or other liabilities for example if if I am uh let's say taking a loan if I'm taking a loan then this loan will basically give me money right and this money can be used to purchase other assets correct so effectively the liability can be used or will be used to purchase some kind of an asset or do some kind of a uh process so Equity is ownership of basically all of these assets because who's going to own any of these assets that a loan is purchasing the owners which is basically nothing but Equity it is also the value of capital contributed by owners or stockholders this is a direct definition which you already told about it is the amount of money that is directly contributed by stockholders and owners now there's a third way in which it can be measured it is also measured by subtracting liabil liabilities from the value of assets so this is also correct for those of you who are from the accounting background you will know that the total assets will be equal to the total assets will be equal to the total liabilities however this liability is of two parts one is uh equity and other liabilities cor so which means assets is equal to equity plus other liabilities now other liabilities could be long-term debt short-term debt payables this that everything so what is your Equity then according to the formula Equity will be equal to assets minus other liabilities that is what is mentioned subtracting liabilities from the value of the assets which is also correct right so this is the way in which you calculate your Equity there are three ways in which you can look at the equity so c 1 2 3 all of them are correct next question please give me an answer to this again these are all different different questions where it's not related to what we discuss as a theory okay so here we're going to take the theory within the question itself so please go ahead and answer this what is the answer guys here the answer is self explanatory if I say the answer is option D and antitrust law what is an antitrust law the antitrust law is what is actually given here in the question in the options antitrust laws are laws developed by governments to protect consumers from predatory business practices what is a predatory business practice for example if I have predatory so what is a predator a predator is somebody who hunts its prey and then kills it and eat predatory business practice basically talks about a business business practice where I will try to Conor my customers and make sure that they have no other way and I squeeze them how is it done let's take an example let us say there are three shops in a town nothing else only three shops all of them are selling the same product uh each one has uh each one makes their product and they sell it and they're selling it at 20 rupees and their cost is 15 rupees they're making 5 rupes profit right great now I come into the market and start selling things at 8 rupees so the everybody will come to me only because I'm they are selling it at 15 rupes 16 rupes 14 rupes I'm selling it at 8 rupees so I'm selling it very very cheap so what will the people do they'll come to me it's a small town everybody will know this then if I keep doing it for some time what will happen there will be no business for the three so they will they can't run their business right there's no customer going there so they will shut the shop and wind up their business once they wind up the business I'm the only guy there so what will I do I will now jack up the prices to 25 saying that if you want you come to me I'm the only guy coming so this is one example of a predatory practice now you might always argue that sir when you go up to 25 somebody else will come at 15 it is possible very much possible but this is an example that I showed where it is possible that I can do a business or I have a business practice with a Mal intention in my mind to squeeze the people later on such a practice is called as a predatory business practice sometimes it is not about customers it is about my competition also I can squeeze my competition also that is also possible such a thing okay so this is called as predatory business practices and to stop that the governments have laws called antitrust laws another reason for this is also to prevent Monopoly same reason that I gave if if let us say that there are three people in the same example there are three people who are selling a product I come and say all three of you I'm going to buy your business and I'll be the only person selling that anymore so I become a monopoly I'm buying all of them out and I'm the sole supplier for that particular product I'm the Monopoly so I can increase the price to whatever I want so the government does not allow Monopoly to happen that also it stops so that is also a reason why antitrust laws exist also obviously there will be differences in in antitrust policies among countries because the definition of what is a monopoly itself can be different uh how I treat with um you know companies in my country may not be the same as how others treat with the companies in their country so some countries will be very strict in these laws some countries will be a bit lenient in their laws and that is obvious every country will not have the same set of laws so therefore three is also correct and the difference in antitrust antitrust policies this differences might arise because they the way countries deal Monopoly is different the definition of monopolies in each country might be different because of which there could be a difference coming in hence all four are correct so the answer is option D 1 2 3 4 all of them are correct clear next this is a interesting question let's take a look at what is mass loss hierarchy of needs anyone answers let me see okay so the answer here is psychological needs let me give you the theory behind this term called Mass loss needs now this gentleman Mass law I don't remember the full name but uh this person was taught to us when I was in my MBA in a HR class my good professor taught us about M La different issue that we were always sleeping in an HR class but uh this gentleman came up with a brilliant Theory to help businesses understand understand what drives a person to work how a person responds in what kind of a situation so he said according to his theory that there are five needs depending upon how a at what phase of a person is in for example if a person is very insecure about his basic hunger and you talk to him saying that you should do always good in life he will say to hell with you I'm dying out of hunger I don't have a house to live in I don't have a nice set of clothes to wear who is going to talk about being good to the country being good to people next to you I want to survive first survival needs that is called as physiological needs physiological basically means survival Ro Kaa you need food to survive you need clothes to stay warm or uh you know summer clothes or whatever basically clothes to cover you yourself and a roof on top of of your head if you have these three then your mind will be slightly relaxed and you can think about the next level of things okay so this is the first level first level of needs are psychological needs so a person sorry not psychological physiological needs once the physiological needs are met then you have the second level of needs so what are the second level of needs you have something so once your Ro K makan is taken care of then the second is called Safety second set of needs are called Safety needs so you have food you have clothes you have shelter great what is the guarantee that nobody's going to come and take them away from you so there should be safety for you once you are safe you'll be a bit more relaxed you can think about higher things now next level of things so the second set of uh things are called Safety needs then you have the third level of things uh the third uh level of things over here are called your love and belong belongingness so what is love and belongingness love and belongingness talks about your requirement to be loved by somebody and your your requirement to be a part of a social group again these are all human resource theories which are well researched they are established they accepted so a person who is having a loving family uh who is having a nice group a friend Circle a group that he belongs to he's respected there he will be a lot more confident he'll be able to you know accomplish a lot more things because his mind is now at a higher level of free Freedom so he doesn't have to worry about oh who's going to come and take away my food who's going to take come and take away my take away my shelter uh my safety is anybody going to come and kill me all these are not there in his head and now he's also satisfied internally because there is a family that loves him there are people who respect him in a group all these are taken care of so he or she for that matter is now in a position to do other things without having any baggage in mind then you have so the third is called uh your uh love and belongingness love love and belonging okay then the the fourth one is called self esteem or esteem needs now what are the esteem needs so once these one two three are taken care of then you start thinking about a little bit about my um what do you call that reputation who will talk about reputation when you are hungry on the road nobody but once you are taken care of these three then you start talking okay I am a part of a group I am respected I how to maintain my respect what is my reputation people respect me for a particular reason so now you're going into a higher level of needs called esteem needs so you're talking about uh you know having a respect maintaining that respect so these are called as esteem needs you'll slowly have a little bit of ego all of these things will start coming in and I'm not talking in the negative sense I'm saying these are the needs that you need to have and finally and finally what you have is called self-actualization what is selfa actualization needs once you have the four needs taken care of now you'll start talking about okay what is my professional purpose do I do I need to take care of about my career what is my goal what is so if you go to a higher level you're going to talk about what is the purpose of my existence what should I fulfill you're now talking a little bit more uh uh at a level which a normal person who is still at 1 2 3 will not be able to understand if you start talking about purpose of life a person who's hungry on the road is going to this guy is mad my purpose of life is first to eat I'm I'm hungry so you can't think about what should you do in your career when you're hungry you are talking about survival first so that is how these laws are or these things are mapped so basically M laws hierarchy of needs say that first your physiological needs have to be met only then the second level of need is required safety if safety is not met then your mind is still not s uh not free once safety is met the third level of level will be love and belongingness and then you have esteem needs and then you have self-actualization needs so all of these uh are the needs that a person uh person should be fulfilled uh and then therefore if it is not fulfilled then there's a theory how they behave and so on so forth so let's not get into that okay next question this is a this is a good example of an assertion reason question so here what happens is they will give you in an assertion reason they will give you uh four options here A B CD and there will be two statements one is an assertion one is a a reason so assertion is a statement reason is an explanation of the statement so if the statement is true and the reason is a correct explanation of the true statement why the true statement has happened then you will be marking the option accordingly if the first statement is true but the second statement is not true then you'll Mark accordingly if the first and second both of them are true but there is no relation between them then you will Mark the option accordingly so take a look at the options and take a look at the assertions and reasons and give me an answer let's see what the answer is any answers okay let's take a look at it harsh sanction have been imposed on Russia after its invasion of Ukraine now if you have been following World Politics the Russia Ukraine war you know that there are a lot of sanctions on Russia so this assertion is true it's a true statement second if you look at the second statement the ruble has crashed what is Rubble Ruble is the currency of Russia right so the rubble has crashed and the Kremlin is scrambling to keep the country's economy running now this was also a true statement however is this the reason for the statement given above no it is not the reason remember reason means because of the second statement the first statement has happened so remember it is so here what has happened is the second statement is a output of the first statement not the other way around so what they are asking for us is to check whether the second statement is the reason why the first statement happened clearly that is not second statement is the output of the first statement the first statement happened and therefore the second statement happen not the other way around therefore this is also true that is also true but but the second the reason is not a uh correct explanation for the assertion therefore you'll Mark that accordingly so both A and R are true but R is not the correct explanation of a so the answer is option b clear next which of the following is not likely to be a kind of barrier of Entry to Monopoly so let me explain a little bit about what is the entry barrier meaning now barrier of Entry or entry barrier basically tells you it's it's a it's something which exists that stops other people from entering into this industry that is called as an entry barrier it is not somebody that is stopping you it is there because of the socioeconomic political situation for example if I am talking about uh um let me put an example how will I okay let's talk about your telephones telephone networks airel is there you have a Reliance today Reliance Gio you have one or two other players now what stops a new player from coming up one of the entry barriers is it's a huge investment cost you and I can't enter it right if there is no entry barrier anybody can get in but you and I will not be able to get in because it requires hundreds and thousands and thousands of crores not even hundreds thousands of crores to set up the infrastructure required for you to be a service provider so one of the entry barriers could be money think about uh think about panipuri TLA anybody can put it there is no entry barrier right anybody can put up anybody has about four 5,000 bucks can start at panipuri stall so what is the of Entry barrier something that stops others from coming in easily I'm not saying it will stop you completely it is not easy right so that is called as a entry barrier so legal can be an entry barrier for example if the law says if the if the legal system itself says that uh in this every District should have only one uh let's say every village should have only one Hospital there's already a hospital you can't start a next second hospital if there is a rule for example so if there's a law which says that this only should can happen then you can't do anything about it right so legal can be a entry barrier technical technology can be an entry barrier technology can definitely be an entry barrier if I am making a product that nobody else has then nobody else can enter into my business why because my technology is not there with anybody let us imagine that I come up with teleportation tomorrow morning and I I am the sole patent owner for the technology of teleportation what does it mean it means I'm the only one who can teleport people from this place to that place nobody else can do that and nobody even if they have the money they don't have the technology to use it so they can't enter the business so technology can be a barrier right brand loyalty can also be a barrier how can brand loyalty be a barrier look at um let's take an example of uh today your swiy or zomato now these two brands have established themselves I'm not talking about there is a loyalty for s or zato but the brand recognition has become very very strong now if a third player comes the player can come I'm not saying they cannot come but they have to come with a lot of incentives for the customers because I'm used for to swiy and if somebody comes they have to beat swig's prices and go even lower than swiy for me to even consider them okay the other way of looking at it brand loyalty is look at iPhones now now people will spend lacks of rupees on an iPhone 15 which does a which practically does the same thing as iPhone 14 I keep doing iPhone bashing uh don't uh mind because I use Android so whenever I get a chance I keep bashing iPhones but anyway so iPhone 15 does practically the same thing as iPhone 14 but people still spend a lot of money and they can't switch away from it they can't switch away from it right so my iPhone audience are going to be iPhone and that is my loyalty to iPhone for whatever reason so if somebody wants to eat into the iPhone share it is very difficult because people who have been using iPhones will stick to iPhone and that is the brand loyalty there so these can be entry barriers there is nothing called biological entry barrier therefore answer option is C answer option is C okay let's move on now USP now I can't Define what is USP because answer uh basically there is an option okay this is a b c and d by the way so a b c d so if I Define what is USB then you you will know whether a b c d is correct or not so we will discuss it first give me an answer for those of you who know then I'll Define what is USB so what is USP guys USP is unique selling proposition what is a unique selling proposition it means what is it so special about your product that is what is called as unique selling proposition for example when somebody comes with a new product there has to be something new about it otherwise why will they go why will anybody go to that product so let us say that I'm selling a car and I'm selling a nice car everybody knows about me I'm a well established brand somebody comes and makes exactly the same car as me same price with a new brand why will anybody go there what is so new about them either his price should be cheaper his quality should be better than me his Services should be better than me his feature should be better than me something should be better than me how is he going to differentiate himself from me that basically is in a nutshell a unique selling proposition so USB could help a product be priced higher than competition of course if I if I'm coming up with better quality better features I can place it higher so this is possible right it is what makes your product different from your competitors of course that is true why is this this keeps going again and again okay next the term USB was coined by television okay this is a fact which you guys don't know this is is correct so it is coined by a television advertising Pioneer Roser reefs and of Ted bits and Company in in the US the term USP was brought in for the first time okay guys just a moment there's a small issue over here I'm trying to correct that all right so uh coming back to this the fourth one the definition itself is wrong it is a unique selling proposition which means your option D is incorrect so straight away that is your answer okay let's move on which of the following usually do not inv in startups it's a question I'm going to explain to you what are each one of these and there itself you'll get your answer it's a theory for you to learn and as well as well as a question for you to answer angel investors who are these Angel Investors Angel Investors are those people Angel Investors are those people uh who invest money as angels for a startup it's it's a person who's doing something good to a startup okay so these people typically invest money in uh in the starting very starting phase of a company then you have Venture capitals so typically what happens I am a company I take angel investor money angel investor is an individual or two or three people coming together to give me money so I will start my business with these two three people's money they are called Eng investors my business has grown a little bit more but I still need more Capital my business has grown but but my needs have also grown for the business so I need more money to be invested in the company now Angel Investors will not have the capacity because they are one or two individual people so now I need more amount of money so where will I go I the next step for me is to go to a person or a entity called Venture Capital these guys usually don't come at a very early stage they come at a slightly later stage so the company has been established uh it has been running for 78 months some progress is there some product is there there that phase The Venture Capital funds come in Venture is basically some uh uh it's it's basically a project that has been taken up a venture I'm I'm getting into Venture means I'm getting into a project Venture Capital so money for a venture so Venture Capital funds basically come in at the second stage typically now that money will be sufficient for me to go for the next one or two years but now let's say I've been running this business for 3 to four years and I need a lot more money to grow from so when I'm an angel investor I'm just using an example when I when I was using an angel investor money I just started in my small town then using the venture capital I expanded to more towns and one or two cities now I want to go pan India if you want to go pan India I need huge amount of capital that amount of capital even a venture capital cannot give in so that is where I go for private Equity Funds private Equity again are those uh funds which come and help people so basically what are private Equity Funds they are funds that are that are organizations that manage money of very rich people they take money from them and they invest in these kind of businesses that they see value in and they usually put money in those businesses which have already established themselves uh with a proof that it is going to be a successful uh successful Venture they've already been running it for one or two years and now they want to go big that is where your private Equity comes in so these three do invest in typically startups hedge funds don't invest in startups what are hedge funds hedge funds are those funds which are managed by professional Finance professionals their job is to make money typically by looking at the Arbitrage opportunities in the world now what are these Arbitrage opportunities that you're talking about it could be anything if this fund sees that okay in India in uh Hyderabad the real estate prices are low and they expect the real estate prices to go up in the next three years they can invest money in the land it doesn't have to be land alone if they see that the uh oil prices for some reason are going to go up in the next 2 3 months then they can purchase a lot of oil Futures and then make a ton of money from there so they can double in anything without any restriction but they go for huge things like this they don't comeer individual companies so that is your answer hedge funds okay clear right the next thing is which of the following is not one of the four stages of the Innovation life cycle so now we're going to learn something called as a Innovation life cycle what is this Innovation life cycle Innovation life cycle is for a process to be innovated and sustainable in a company it goes through a cycle what is this cycle all about so that is what we going to learn over here the answer is option A obviously I'm explaining the theory so I have to tell you the answer so there are four stages to this in uh to this Innovation life cycle the first stage is called ideation the second stage is called project selection the third stage is called Product Development and the fourth stage is called commercialization so what does it mean see imagine that you are in a company a big company and you're trying to bring a change first of all you have to come up with ideas of how this change can come in different different ideas each one will be a different idea the first stage is ideation you have to create ideas second stage is you have to select the project which idea am I going to select each one will have its pros and cons each one will have it advantages and disadvantages based on that you have to decide which process should I select to bring about this change in my organization okay then the third is going to be development of the product I decided what to do I decided which one to select once I select this the next part should be how will I develop a product or a process to fit this idea so once I selected which idea I have to now start developing the product that is the fourth stage product development uh sorry third stage and the fourth stage is fine I have brought about a change I I've developed an idea I developed a product the fourth stage is commercialization now commercialization will have two meanings one is if we talking about a change within the company within the working of a company then the commercialization here basically means implementing and bringing that actual change that you want more efficiency cost cutting or whatever if it is a new product for the company then I'm talking about selling of this product I've developed the product I've done R&D I've done everything now I have to have the sales and and marketing and distribution channels and everything to make sure that the product is sold which is basically getting money from the product that is called your fourth stage which is commercialization right so the correct the first answer investment is wrong the first option investment is incorrect the first the first stage of innovation life cycle is ideation creation of ideas coming up with ideas clear this is an interesting question take a look at this and I'll explain the fundament behind this it's a very very interesting question okay what is the answer guys what is the best course of action the answer here the the perfect answer here is option C now let me explain the meaning of sunk cost sunk cost basically talks about a cost which is already gone you cannot recover that cost whatever you do that cost is gone you can't recover that cost therefore the further decision that you make should not be based on the cost that has already been put in that the cost that has already been sunk in so this process or this theory is called as sunk cost theory an example is the typical example here so if I purchased tickets to a movie and the movie High expectation right you you wanted uh movie of let's say Shah ruk Khan which is coming up and you pre-book the tickets on the first day of a show very excited uh tickets are costly great then you realized uh the premier show had a very bad review in fact so horrible one of the worst movies of shahu Khan should you go and see the movie and get a headache now the way to think is look I I can't cancel the ticket I can't refund get a refund for the ticket so then what should I do now if I go I'll be wasting my 2 and a half hours of movie on top of that I'll be wasting popcorn I'll have to spend money on popcorn I had to spend money on parking I had to spend money on petrol going there what is the alternative anyway whether I go or I don't go my money is gone if I go I'll have extra expenses and a headache at at the end of the movie what is a logical thing to do because doing or not doing the cost is the same I will decide without worrying about the cost I will now look at going forward from this point if I go to the movie I'll have to spend money there I'll get a headache if I don't go to the movie I can happily sleep at home so I will dump the movie and relax this kind of thinking is basically utilizing the sun cost Theory clear next question what is gray market now gray Market uh the the idea for a gray Market basically is uh oh in fact that's a question right so let's see how many of you can give the question right so any answers the correct answer is option D so what is a gray market now Black Market is illegal Market remember Black Market is illegal Market illegal means you are not supposed to do that gray Market is not illegal not exactly legal also so I'll explain what it means so I am selling a car from from one person to another person without the knowledge of the original equipment manufacturer who is a car manufacturer I'm I'm a dealer not authorized by the car manufacturer somehow I'm getting cars and I'm selling it to people I'm collecting the tax I'm a company registered but I'm not the dealer for this company officially such a thing is called as a gray Market it is in between illegal and legal that is called as a gray Market okay I think last question I believe yes this is the last question this is a fact-based question let's see what the answer is what is the correct order of countries in the decreasing order that are home to unicorns guys the correct answer here is option b it is us which is the highest followed by China then India and then UK so this the top four countries with respect to unicorns unicorns is uh the the companies that are valued at 1 billion or more the highest are in US followed by China followed by India followed by United Kingdom right so friends that brings us to the end of the first session today I hope you enjoyed it if you really enjoyed it please give me a like leave your comments and share this with your friends so that they can also take benefit of this subscribe to our Channel and be tuned into our Channel because we're going to come back to you with a lot of such sessions we are going to cover the entire syllabus for your m c your C cmat everything here so please be with us and take make use of these free sessions that we giving you thank you my friends and all the very best for your exams

Channel: BYJU'S Exam Prep: CAT & MBA

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Keywords: CMAT Exam, MBA Exams, byju's exam prep, byju's mba, cmat, cmat 2024, cmat 2024 exam date, cmat 2024 exam pattern, cmat 2024 preparation, cmat exam 2024, cmat paper pattern, cmat paper pattern 2024, cmat preparation 2024, entrepreneurship, entrepreneurship development, innovation and entrepreneurship, innovation and entrepreneurship cmat, innovation and entrepreneurship preparation, nta cmat

Id: 40eCYatNV3U

Length: 58min 40sec (3520 seconds)

Published: Sat Jan 13 2024