business

What are the primary purposes of a business?

Producing goods, supplying services, helping others, and making money.

Define a good.

A good is a physical product.

What is a service?

A service is a non-tangible product.

Why should someone start a business?

To gain profit and be their own boss.

What is an enterprise?

A new business formed to create new products.

What are key qualities of a business person?

Self-motivated, risk-taker, creative, decision-maker, strong-minded.

What is a sole trader?

A sole trader is someone who runs their own business.

What is a business plan?

A written document describing a business's objectives, strategies, and costs.

What does it mean to break even?

Making no profit but also not losing money.

What are sections of a business plan?

Aims, market, finance, and people.

What is a partnership?

A business owned by two or more people.

What is an LTD (Private Limited Company)?

A company that exists by its own right.

What are benefits of an LTD?

Shared decisions, shared risk, and more people contributing to finance.

What are benefits of a partnership?

Limited liability and more experience from others.

What is a Public Limited Company (PLC)?

A company that can sell shares to the public.

What are the benefits of a PLC?

Bigger reputation, gain exposure, and allows access to more money.

What are common business objectives?

Survival, profit, growth, and market share.

Define a stakeholder.

Anyone with an invested interest in a business's activities.

What is organic growth?

Business expanding from within.

What is external growth?

A business growing by joining another business.

Define horizontal growth.

Two businesses that produce the same thing.

Define vertical growth.

Businesses that operate at different stages of a product.

What is desertification in the context of business?

Two businesses that aren’t closely linked.

What is a benefit of market research?

Gain better insight into customers and competitors.

what are benefits of expanding

more profit,more customers,more recognition

what is segmentation-target customers

age,location,gender,life style,income

primary research

first hand data e.g interviews

quantative data

data that already exists e.g internet

4 p’s

product,price,promotion,place

what does USP stand for

unique selling point

why have a USP

to make the product stand out

extension strategy’s

price drop,advertising,change packaging,add more

what is marketing

identifying,satisfying and revisiting customer needs

what is market research

collect data on customers,competitors and the market

what is quantative data

numerical

what is qualitative date

opinions

pro and con of primary data

specific but time consuming

pro and con of secondary data

fast access but expensive

what is market share

the % amount that a business controls in the market

what’s price skimming

setting a high price at launch

what’s promotion mix

mix of promotion methods