Year 10 Business - Business Management (Topic 1)

Define: Competititve Advantage

The factors that allow a company to produce goods or services better or more cheaper than its rivals.

Define: Lower Cost

A business should aim to be cheaper than their competitors.

Define: Differentiation

A business should aim to have an element of their good or service that is unique from what the competitors offer.

The 6 P’s of marketing: Define Product

Includes all tangible and intangible features of a good or service.

The 6 P’s of marketing: What are the 3 types of pricing?

Cost-Plus margin → Using a desired profit margin to choose how to price goods or services

Competition Based Pricing → Involves businesses setting prices similar to competitors

Premium Pricing → Involves business setting high prices to signal quality, exclusivity and value

The 6 P’s of marketing: Define People

Refers to anyone who communicates with the customer both directly and indirectly (like customer service and sales representatives)

The 6 P’s of marketing: Define Place

The consideration of where the product should be available (in physical and online stores) and how it is displayed

The 6 P’s of marketing: Define Promotion

Refers to the strategies a business uses to communicate value, build awareness, and drive sales for its goods or services.

The 6 P’s of marketing: Define Presentation

The way the customer interacts with the good or service before purchase including online information, the packaging and overall brand experience.

Define: Public Relations

The strategic management of information shared with the public and media about a business, brand or product.

What are the advantages of Public Relations?

• Public Relation is often free

• Builds brand awareness

• Builds brand identity

What are the disadvantages of Public Relations?

• No control

• No guarantee if it will work

• Difficult to measure success

Define: Global Supply Chain

Moves part of or all of the supply chain into a country where it’s head office is not located.

How can a GSC positively affect competition?

• Lower costs

• Improved quality

• Increased flexibility

How can a GSC negatively affect competition?

• Security risks

• Language and cultural barriers

• Negative reputation

What are 3 types of ways in which a business can implement change?

• Technological change

• Process change

• Rebranding change

What are some opportunities for business change?

• Shifts in customers demand

• Changes in societal values

• Competitor changes

• Economic shift

• Innovations