1.1.1 The Dynamic Nature of Business Flashcards
Dynamic
Everchanging (external factors always changing like tech)
Obsolete
Out of date or not used anymore
What is a product
A product is anything that is
capable of satisfying
customer needs, for example:
1. Physical products:
2. Cars
3. Washing machines
4. X box consoles
5. Mobile phones
What is a service
A service is an act that a
business person carries
out for you in exchange
for money, for example:
1. Dental treatment
2.Accountancy
3.Travel agents
4.Gardening
5.Cleaning
6.Hairdresser
Original Ideas
Original ideas have not been thought of before. They are usually very different from anything else that is currently on the market (for sale).
The introduction of autonomous cars is an example of this.
These products are thought up because there is a gap in the market.
Adapting Existing ideas
These new ideas make changes to current products to improve them in a way that no one had thought of before.
New technology may make the adaptations possible.
For example, Dyson didn’t come up with the idea of a vacuum cleaner, but he did adapt (change) the design to improve how it worked
Why do new business ideas come about?
- Advances in technology
- Changes in consumer wants
- Products and services becoming obsolete
Venture Capital
Risk capital provided by an
investor willing to take a risk in return for a share in any later profits; the venture capital
provider will take a share stake in the business.
Demand
the number of units that customers want ,and are prepared, to buy
Entrepreneurs
Business people who see
opportunities and are willing to take risks in making them happen.
How new products come about
Adapting existing products, Original ideas
Competitive advantage
A feature of a business that helps it to succeed against rivals.
