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GCSE OCR spec (Made by Jamal Kamara)
what is a product
a tangible item which customers buy
service
an intangible act that a business carries out for you for money
consumer
someone who buys and uses goods and sevices
enterprise
a business or company, or someone who takes a risk in starting a business
entrepreneur
a risk taker who starts a business for financial profit
obsolete
a product or service that is no longer used
original ideas
ideas that have not been used before
Give 5 ways a new business comes about.
an original idea, changes in technology, changes in consumer wants/needs products being obsolete, market gaps
give 3 ways a business may come about (personal)
entrepreneur passion, solving a problem
Identify one way a business could create/innovate a new product.
mixing multiple products, adapting old products, cheaper version of old product
what is an invention
creating something that did not previously exist
risk
something that may lead to failure of a business
business failure
when a business makes no money at all over a long period of time
What are the three main impacts of risks on business activity
business failure, financial loss, lack of security
What are the three main impacts of rewards on business activity.
business success, profit, independance
Identify three risks when starting a business.
financial loss, lack of security, changes in trends, incorrect sale predictions
what are poor reasons for business loss?
poor management, poor market research, poor quality, poor planning
Identify three rewards when starting a business.
profit, independence, satisfaction flexibility,
ability to work form home
business reward
a benefit the business brings to the owner
What are the roles of business enterprise and the purposes of business activity?
produce goods or services, meet customer needs, add value
Identify and explain the four things needed to produce goods and services/the factors of production. (4)
land(where), labor(who), capital(money), enterprise(motivation)
added value
difference between what business pays its suppliers what they charge for products or services
Identify 5 ways that a business adds value to it’s product or service.
branding, design, usp, convenience, quality
Explain the risk that money plays when an entrepreneur starts a new business.
an entrepreneur may not have enough funds to pay for essentials, wages, food by the time they invest all of their money into a business
How is an entrepreneur being their own boss a business reward
they can balance work and life choices and gain independence
competitive advantage
a business has competitive advantage over another when its products are deemed to be better than its competitors by customers
dynamic market
a rapidly changing business environment
Explain how social media has made an impact on businesses.
social media platforms allow customers and business owner to connect on a personal level and see how trends change the marketing gain publicity
market research
involves gathering data about customers, competitors and market trends
equation : value added =
selling price − cost price
what does an entrepreneur have to be?
innovative, risk-taking, hard-working, organised, persuasive and a leader
is starting a business easy (according to famous business people?)
no, it’s very hard work
what are four examples of businesses?
Propercorn, King of Shaves, Mallzee, Superjam
