1.1 The Dynamic Nature of Businesses Flashcards
<p>Why do new business ideas come about?</p>
<p>New business ideas come about because of the dynamic nature of business such as:</p>
<ul><li>Advances in Technology</li><li>Changes in consumer wants</li><li>Products/Services becoming obsolete</li></ul>
<p>How do advantages in Technology create new business ideas?</p>
<p>Advantages in technology can lead to new product ideas that weren't before possible</p>
<p>How do changes in consumer wants lead to new business ideas?</p>
<p>A lot of business ideas are thought up to satisfy customer needs</p>
<p>When needs of a customer change, new business ideas are thought up in order to satisfy these new needs</p>
<p>How do new businesses come about?</p>
<ul><li>New Original Ideas</li><li>Adapted previous existing products/services</li></ul>
<p>What are <b>Original Ideas</b>?</p>
<p>Original ideas have not been thought of before. They are usually very different from anything else that is currently on the market (for sale)</p>
<p>These products are thought up because there is a gap in the market</p>
<p>What are <b>Adapted products</b>?</p>
<p>Adapted ideas make changes to current products to improve them in a way that no one had thought of before</p>
<p>New technology may make the adaptations possible</p>
<p>What are the <b>risks</b> of starting a business?</p>
<ul><li>Risk Of Failure</li><li>Financial Loss</li><li>Lack of Security</li></ul>
<p>Why might a new business fail?</p>
<p>Consumers may not want to buy the product or service, especially if it is a brand new product</p>
<p>What is <b>lack of security</b>?</p>
<p>Entrepreneurs often lose the security that they had with their job in terms of a regular wage or salary</p>
<p>This means that if the business isn’t making any profit, the entrepreneur may have no money to live off</p>
<p>What are the potential rewards which encourage someone to start a business?</p>
<ul><li>Financial reward</li><li>Flexible working hours<li>Dissatisfaction with their current job</li><li>Pursuing their interests at work</li></ul>
</li></ul>
<p>What are <b>Products</b>?</p>
<p>Products are tangible (physical) products</p>
<p>What are <b>Services</b>?</p>
<p>Services are non-physical actions performed by a business to help a customer</p>
<p>An example of this is a barber cutting your hair</p>
<p>What are <b>Distributors</b>?</p>
<p>Distributors are Businesses that buy products from manufacturers and sell them onto other businesses or customers</p>
<p>What are <b>Customer needs</b>?</p>
<p>Customers' needs are the things that people can't live without</p>
<p>What are <b>Customer wants</b>?</p>
<p>Customer wants are the products and services that they don’t need but would like to have</p>
