1.1c New Business Flashcards
Why do new business ideas arise?
Changes in what consumer wants or changes in technology
What is the meaning of obsolete?
A product or service that is no longer needed or being used.
What is the product life-cycle stages (in order)?
- Introduction
- Growth
- Maturity
- Decline
Which one of these is not a stage in the product life cycle? A) Birth B) Growth C) Maturity D) Introduction
A- Birth
What is e-commerce?
Using the internet to carry out business transactions.
What is m-commerce?
Using mobile technologies such as mobile phones and tablets to carry out business transactions.
Why should entrepreneurs come up with new ideas for the business?
As the trends change the consumers want different things. Due to this the entrepreneur has to be flexible and incorporate the trends consumers want in the product or service.
What is one way business can interact with the consumers?
Through social media platforms where the consumers can give their feedback on the product.
What is adaptation?
Adaptation is the process of modifying the product or service which then allows it to be suitable for a different set of customers
Why is adaptation a risk?
Some adaptations do not succeed which causes the business to go into a loss.
What are payment platforms? Give an example.
They are platforms that enable businesses to take online payments from customers.
Example: PayPal
What is an enterprise?
Entrepreneurial activity (can also mean a business or company)
What is the meaning of consumer?
Someone who buys and uses goods and services.
What is the meaning of entrepreneur?
Someone who creates a business, taking on financial risks with the aim of making a profit from the business
What is a marketplace?
The activities involved in buying and selling particular types of goods or services, in competition with other companies
Name three types of adaptations
Any three from:
- Adapting the promotion strategy
- Changing a product’s name
- Responding to new fashion/trends
- Adaptation for cultural reasons
Why does an enterprise need to listen to its customers?
- Customer feedback helps you improve and grow your business
- Customers have the buying power
Give examples of the ways in which changes in technology can provide business opportunities
- making expensive technology affordable
- e-commerce and m-commerce
- social media
What is demand?
The desire of consumers, clients, employers etc. for a particular commodity, service or other item
Why might a business decide to change its brand name?
- The name no longer represents what they do and may even constrict them
- The brand has become stagnant or has gotten caught up in skmething that tarnishes its name
- For trademark, legal or more practical reasons
