Business flash cards- topic 1.1

Business enterprise

It is the process of identifying new business opportunities and then taking advantage of them.

All businesses need at least one purpose. Name 3

Make a product more convenient for customers to get or use

Improve the products design or quality

Meet customer needs- providing goods or Services that the customer want or need

Consumer

The ultimate user of the product or service provided by a business and May have paid for it

Adapting existing products

Finding new products based on the original ones. E.g- white chocolate magnum

Competitive advantage

A feature of a business that helps it to succeed against rivals

Original ideas

Ideas that have not been done before

Demand

The amount of a product consumers are prepared to buy at different prices

Obsolete

Where a product is getting fewer sales overtime

Why might new business ideas come about. Name 3

Change in customer needs/ wants

Changes in consumers wants

Becoming obsolete

The chnage in price of a product/ service

Change in technology

Gap in the market

An unmet consumer need.

Who spots a gap in the market and what do they do to spot it

An entrepreneur and market mapping

Competitive advantage

A way a company can gain a advantage over their rivals. E.g Ryan air have lost cost flights

Rewards in a business

Their company is a success

Their business makes lots of profit

Some risks a business might face

If the business makes financial loss

Failure.

And they could go into debt with other banks

Competition and how it affects a business

The company could lower their prices which means the customers would favour their business

Good customer service attracts customers and builds a good relationship with the customers therefore the customers would be more likely to spend more money

Better quality means you can upcharge the price and the customers will still buy it because if the good quality