business theme 1

📊 Markets & Demand

Market

buyers and sellers trade goods/services

Mass Market

large audience, one broad product

Niche Market

small segment with specific needs

Market Research

finding out customer opinions/data

Quantitative

numbers and measurable data

Qualitative

opinions, feelings or judgments

Market Mapping

grid comparing product features

Positioning

product's place in customer minds

Substitution Effect

switch to cheaper alternatives

Income Effect

rising income increases demand

Diminishing Utility

satisfaction decreases with use

Consumer Surplus

pay less than willing to

Substitute Goods

interchangeable products

Demand

quantity wanted at set price

Supply

quantity sold at given price

Price Mechanism

how prices are determined in markets

External Shocks

sudden unexpected economic change

💸 Price & Revenue

Total Revenue

price × number sold

PED

how demand reacts to price

Price Elastic

demand changes a lot

Price Inelastic

demand changes very little

YED

demand response to income change

Income Elasticity

link between income and demand

🧠 Business Concepts

Economies of Scale

costs fall as output rises

Uncertainty

unknown future events/impacts

Risk

potential for loss in business

Added Value

price minus production costs

Product

satisfies customer needs/wants

Design Mix

function, aesthetics, and cost

🛍 Marketing

Promotion

inform or persuade buyers

PR

media coverage for brand image

Branding

product's image or identity

Price Strategy

long-term pricing approach

Pricing Method

how price is worked out

Pricing Objectives

based on finance or marketing

Loss Leader

item sold below cost price

Distribution

where product is sold

Channel

path from maker to customer

Intermediary

middle step in distribution

Marketing Objectives

long-term goals for marketing

Marketing Strategy

plan to reach objectives

Extension Strategy

keep product selling longer

2 Methods

change product or promotion

👔 Business Types

Social Enterprise

profits help people or planet

Lifestyle Business

supports owner's personal goals

Franchise

trade using existing brand name

Online

business runs on the internet

👷 HR & Workforce

Zero-Hours

work only when needed

Delegation

give others responsibility

Recruitment

finding and hiring staff

Training

learning new job skills

Labour Turnover

how often staff leave

Outsourcing

hiring external companies

Flexible Workforce

can adapt to change

Multiskilling

staff trained in many tasks

Flexible Hours

change work times as needed

Flexible Working

supports work-life balance

Dismissal

sacked due to poor behaviour

Redundancy

job no longer exists

🏗 Organisation

Design

roles and responsibilities structure

Structure

how business is organised internally

Hierarchy

layers of authority in business

Chain of Command

line of reporting

Span of Control

number you directly manage

Centralised

decisions made at the top

Decentralised

decisions spread throughout staff

Delayering

removing management layers

Consultation

discussing plans with employees

💼 Motivation & Leadership

Taylor

workers driven by money only

Mayo

social needs motivate workers

Maslow

5-level human needs theory

Herzberg

hygiene + motivator factors

Empowerment

staff make some decisions

Leadership

guiding people to a goal

Autocratic

leader makes all decisions

Paternalistic

leader acts like a parent

Democratic

leader listens to input

Laissez-faire

leader gives full freedom