Studied by 7 people
Dynamic nature of business
The idea that business is ever-changing because external factors, such as technology, are always changing.
Venture capital
money provided by large investors to finance new products and new businesses that have a good chance to be very profitable
Why do new business ideas come about?
changes in technology
changes in what consumers want
products and services becoming obsolete
gap in market
external factors
make society better
Demand
the quantity of a good or service that consumers are willing and able to buy
Entrepreneurs
a person who organizes and operates a business or businesses, taking on financial risks in order to do so.
obsolete
products are no longer produced
competitive advantage
a feature of a business that helps it to succeed against rivals
goods
Physical objects such as clothes or shoes
Services
intangible products, e.g. haircut.
Unique selling point ( USP)
Something that makes a product stand out from its competitors
Value added
the difference between the selling price and the cost of product/service
Human resources
a term used by organisations that simply means employees.
Resources
all things used in producing goods and services
risk taking
bearing the uncertainties that are part of the marketing process
innovation
something new
ways to add value
USP
branding
convenience
quality
good design
external influences of a business
inflation
economy
natural disasters
rivals
changes in society
why would a business fail
external factors
oversaturated market
products becoming obsolete
lack of innovation
don’t meet customer needs
change in shopping habits
lack of assets
change in laws
limited access to finance
factors of production
land
labour
capital
enterprise
