Business - Edexel

What is an entrepreneur?

A person who provides goods and services that customers want or need

Name some entrepreneurial motives

Not being satisfied with a product, a gap in the market, money, providing services for a certain market, hobbies and/or interests

What is a business plan?

A document that states the future plan for your business though the aims and objectives

Why is a business plan important?

Banks (loans), organisation, aims and objectives, checking finances

Why would a potential investor want to see a business plan?

So that they can assess the business and see whether they would actually benefit from investing, or whether it would actually negatively impact them

Why would a bank want to see a business plan?

So that they can see what the business wants the loan for, to see their finances and work out if they will actually be able to pay back the loan

What is a sole trader?

When a business is owned by a single person

What is a partnership?

A business owned by two or more people

What is a Private Limited Company LTD?

Often run by families or small groups of friends. May pursue objectives other than maximising profit

What is a Public Limited Company LTD?

Any member of the public can buy shares, and therefore, becoming an owner of the business

Public sector business

Businesses owned by the government

Private sector business

Businesses that are owned and controlled by an individual or groups of individuals, ranging from small businesses to multi-national companies

Public sector aims

>Non-excludability

>Non-rivalry

>Allow people to live safely and securely

>Providing a range of services for society to improve standards of living

>Merit goods

Private sector aims

>Increase shareholder value

>Survival

>Market share

>Customer satisfaction

What is non-excludability?

Goods and services for everyone

What is non-rivalry?

A customer using a product/service doesn't stop another using the same product/service

What are social enterprises?

These are businesses that exist to benefit other people (stakeholders) in the community and not just to make profits

What is a mass market?

Often produce goods/services that have large scale appeal. They cater to a wider range of customers

What is a niche market?

Produce goods/services that are often overlooked by larger firms. Generally sell to a small number of consumers

What is market segmentation?

Dividing a market into parts that reflect different customers needs and wants

What is demographic segmentation?

Identifies subgroups based on demographic profile or characteristics e.g. age, race. It looks at social and eco characteristics of individuals and households

What is behavioural segmentation?

Characterises subgroups based on behavioural patterns of the consumer rather than their characteristics

Reasons for purchase

Needs, emotional, rewards

Frequency of purchase

Heavy or light user

Time of purchase

Seasonal, weekly, late at night

Brand loyalty

A customer's favorable attitude toward a specific brand

Method of purchase

In person, online

Triggers for purchase

Response to digital marketing