Studied by 3 people
what is the purpose of business activity
spotting an opportunity, develop an idea for a business, satisfy customers needs
characteristics of an entrepreneur
risk-taking, determined, creativity, confidence
risks of starting a business
bankruptcy, strained relations, strained health
rewards of starting a business
self-satisfaction, independence
what is the purpose of business planning
reduces risk, helps a business succeed
role of a business plan
identifying markets, help obtain finance, identify resources, achieve business aims/ objectives
types of business ownership
sole-trader, partnership, private/ public limited companies
what can be the aims or objectives of a business
profit, survival growth, provide a service, market share
external stakeholders
government, customers, suppliers, community
internal stakeholders
employees and owners
ways of organic growth
developing new products, gaining new customers, increasing market share
ways of inorganic growth
merges, takeover
advantages of horizontal growth
less competition, more market share, higher profit margins
role of marketing
identifying customers, informing customers, increasing sales
purpose of market research
to identify and understand customer’s needs
primary research methods
questionnaires, focus groups, trialling, interviews
secondary research methods
newspaper, magazines, census, internal data, websites
how to do “segmentation”
age, gender, locations, lifestyle, income
what are the 4 Ps
price, place, promotion, product
what helps develop a product
design, invention, innovation
product life cycle
introduction, growth, maturity and decline
pricing methods
price-skimming, cost-plus, competitive, promotional, penetration
types of point of sale promotion
competitions, free samples, loss leaders, price reductions
ways to advertise/ promote
social media, websites, tv, newspaper, radio
what is the purpose of HR in a business
co-ordinatates hiring/ interviews
what organisational structures are there
tall and flat
span of control
number of people a manager is responsible for
chain of command
a link in authority to those at the top to those at the bottom
delegation
when a manager gives responsibility to someone else
subordinates
workers that a manager is responsible for
authority
the power that a person has to give instructions to someone else
why do businesses have different organisational structures
effective communication, different job roles, various ways of working
ways of working
full-time, part-time, flexible working, temporary work, work from home, working whilst mobile, self-employed
ways of communicating (in business)
text, e-mail, letter, phone, meeting,
why do business recruit
to replace employees who leave, skill gap, business growth
recruitment methods
internal/ external recruitment, job description, person specification
methods of selection
cv, interviews, application form, tests, group activities, references
methods of motivation (financial)
bonuses, fringe benefits, profit sharing
methods of motivation (non-financial)
praise, award schemes, working environment
importance of employee motivation
improved performance, employee retention
importance of employee retention
worker already knows company/customer, saves time and money on recruitment
3 training methods
on- the- job, off the job and induction
why do businesses train their workers
improve productivity, skill shortage, customer service, motivation/ retention
types of staff development
apprenticeships, vocational/academic qualifications
impact of current legislation
discrimination, contract of employment, holidays, hrs of work
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Flashcard (85)