1.1 - enterprise and entrepreneurship Flashcards
1
Q
what inspires business ideas
A
- technology advancement
- changes in consumer needs
- products/services becoming obsolete
2
Q
risks in a business
A
- business failure
- financial loss —> startup needs investment —> if business fails, entrepreneur loses money
- lack of security
3
Q
rewards in a business
A
- business success
- profit
- independence
4
Q
role of a business
A
- produce goods/services
- meet customer needs
- add value
5
Q
role of entrepreneur
A
- organize resources
- make business decisions
- take risks
6
Q
how to add value
A
- convenience
- branding
- quality —> willing to pay premium price —> larger difference between final price and cost of materials
- design
- USP —> product differentiation —> better than competitors cal
7
Q
what is the product lifecycle
A
introduction, growth, maturity, decline
8
Q
how to develop competitive advantage
A
- lower cost/higher quality
- better customer service
- USP
9
Q
how to reduce variable cost (3)
A
- cheaper supplier
- cheaper raw materials
- lower cost of production per unit
- buy raw materials in bulk
- potential discount
- leads to economy of scales (saving costs by increased level of production)
