business in depth flashcards

goods

Tangible items that have a physical apperance

producer goods

Used by the business to make other goods or help run the business

durable goods

Last a long time

non-durable goods

Dose not last a long time/consumed instantly or over a short period of time

consumer goods

Used directly by the customer to satisfy wants and needs

services

Intangible and don’t have a physical apperance

commercial services

Provided to a business such as acounting

personal services

Provide to an individual customer such as a haircut

needs

Things an individual must have to live

wants

Things an individual desires

profit

The surplus amount remaining when a business total revenue exceeds costs

break even

To make the same amount of money as you spent

revenue

Total money made from selling goods/services

loss

Total costs are larger then revenue

market

Place that buyers and sellers exchange goods or services

global market

Operates within many countries around the world

national market

Operates thorough 1 countrys with multiple outlets over this country

local market

Operates with in a town/neighbourhood

stake holders

A person with that is interested or affected by the decisions a business makes

shareholder

A person with a share in a business

entrepernure

Someone who manages their own business often taking risks to do this

customer

Any person or organisation that purchases or receives goods and services from a business

consumer

The final user of a goods and services

competitive business enviroment

Sells similar products at similar level of quality and price

2 things a business needs to do to survive in a competitive business enviroment

Quality products

Good customer service

Promotional stratagies

Product range

Convenience

innovative enviroment

The creation of new ideas and doing something to improve the way a business works and the products it sells often helps grow the economy

2 reasons why innovation is important to business success

Allows business to adapt in a competitive enviroment

Allows business to adapt to changing environments and conditions

Helps business grown and expand

Allows needs and wants to be meet

Enables entrepernure to take advantage of oppurtunities

Allows business to adapt to and use innovative tech to improve the goods, services and business operations

dynamic business enviroment

Business are constantly changing and business must respond fast

what external factors cause a business to change in a dynamic business enviroment

Changing consumer tastes and lfestyles

Economic factors

Legal influences

Enviromental factors

Technological factors

Social change

2 reasons why satisfying customer needs and wants is important

Increases customer loyalty=retains existing customer

Attracts new customerson creases sales revenue

Diffrenatieates business from competitors

2 reason someone may start a business

Provide a service to the local community

Personal ambition/satisfaction

Intrest/hobby

Exploiti an oppurtunity/idenfy a gap in the market

Financial reward

Become your own boss

Legacy

Use of skills/qualifications

No work avaibale

What are the roles of an entrepernure in an enterprise

Being the business owner

Setting up the business

Identifying oppurtunities

Organising recourses

enerprise

The formation of a new business or development of a new good or service to be introduced to the market

list 2 ways to recongnize business oppurtunities

identifying neglected market segments

competitor analysis

using technology

market research

oberserving market trends

2 ways to respond ot once you have recognised a business oppurtunity

Set long term aims

Access finance

Mange finances

Marketing

Developer new products or services to improve existing ones

business oppurtunities

A situation where Nad individual can take advantage f a condition or trend in the market to developed a new good, service or business venture

why is it important to identify and respond to business oppurtunities

Attracts a wider market

Gain competitive advantage

Aim

A goal a business sets itself in order to measure it’s own success

3 examples of a business aim

Profit maximasation

Survival

Envormental/ethical

Scial

Improve customer satisfaction

Business growth

Increase sales revneue

Increase market share

what are 2 internals factors that can cause a business to have to adapt it’s aims

Changes in denamand

Faster or slower growth

Changing what the business sells

Dealing with unexpected problems in the business

Havering new owners

what are 2 external factors that can cause a business to have to adapt it’s aims

Changes in the economic climate

Changes in customer inccome

Changes in the competitive enviroment

Changes in legalasation

Increases pressure on Enviromental, ethical and social issues

2 reasons business Aims may differ from business to business

Private or public

Local or global

Start up or established

Profit or non-profit

Small or large business

2 reasons why Enviromental and ethical aims have become important for business today

Governmental regulations

Long term success

Consumer awarness

Increased demand

Social responsability

Brand reputation

Diffrent types of markets

Business to consumer (B2C)

Business to business (B2B)

Niche

Mass

Local

National

Global

Seasonal

niche market

Sells porducts and provides services to smaller segments of a larger market

mass market

Sells products and services with standardised features, usually mass produced in large quantities and sold to a large market

Seasonal market

Where the demand for products and services varies through the year

business sectors

Diffrent categories of economic activity a business operates in, diffrent sectors involve business that provide particular types of goods and services

diffrent types of business sectors

Technology

Manafacturing

Retail

Energy

Construction

Healthcare

Agriculture

Hospitality

Science

Transport

Tourism

examples of business in the technology sector

Development and production of

Cumputers

Software

Telocmmunications

examples of business in the Manafacturing sector

Car production

Clothing factories

Electronic Manafacturing

examples of business in the retail sector

Supermarkets

Clothing shops

Eletrical shops

examples of business in the energy sector

Production, distribution and sales of

Renewable and non renewable energy

examples of business in the healthcare sector

Hospitals

Pharmacies

examples of business in the agriculture sector

Farming

Fishing

examples of business in the hospitality sector

Hotels

Restraunts

Events managers

examples of business in the science sector

Medical

Technology

Enviromental

Discovery/development/advancements

examples of business in the transport sector

Road and rail trainsport

Air travel

Shipping

Public transport

examples of business in the toursim sector

travel agencies

tour operators

airlines