Enterprise and entrepreneurship

What is the primary purpose of business activity?

To take inputs, add value, and create products that meet customer needs.

What are original business ideas?

Ideas that have not been used before, such as pet hotels.

What is an adaptation in business?

Changes made to an existing product.

What is the unique selling proposition (USP) of Dicky bags?

They are recyclable, made of wetsuit materials, lightweight, odour-proof, and have multiple pockets.

What are the factors of production needed for a business?

Land, Labour, Capital, and Enterprise.

Why do businesses strive to be original?

To solve a problem, exploit a market gap, and stay ahead of the competition.

What are some risks associated with launching a new product?

High development costs, lack of demand, product failure, and opportunity cost.

What are the advantages of product adaptations?

Less risky than launching a new product, can enter new markets, and helps stay current with trends.

What risks are associated with product adaptations?

Failure to meet customer demand and alienating existing customers.

What is an example of a product adaptation?

adding new flavours, functions, colours, durability etc

What was the main reason for the success of AirPods?

They eliminated the mess and trouble of wired headphones, making them more convenient.

What are some reasons a business may fail?

Poor business decisions, lack of capital, too much competition, and recession.

What is a potential risk of launching a new product?

People might not like it.

What is a potential reward of launching a new product?

It could become the new trend.

How can a business reduce the risk of opening a new branch?

Research the customer base in the area before investing.

What is one reason a business might fail?

Poor suppliers can lead to insufficient stock, impacting sales and profitability.

What are the four main customer needs?

Choice, Convenience, Price, and Quality/Reliability.

What does adding value to a product mean?

Enhancing a product's appeal to justify a higher price.

How does branding add value to a product?

It creates a unique identity that increases customer loyalty and recognition.

How does convenience add value to a product?

Products that offer convenience can be sold at higher prices.

What role does design play in adding value?

It enhances aesthetics and functionality, improving user experience and perceived value.

What is a Unique Selling Proposition (USP)?

A unique advantage that attracts customers and increases sales and loyalty.

How does the iPhone 17 add value?

Through branding, design, quality, convenience, and its unique selling proposition.

What are the benefits of adding value to products?

Higher pricing, increased profits, and a competitive advantage.