AOS3

Question 1

what is a entrepreneur?

Answer 1

A entrepreneur is a person who starts a business or takes over a business and is willing to take risks in order to make a money.

Question 2

List 6 skills for an entrepreneur and justify?

Answer 2

Communication skills-Listening to those around you, presentation of ideas to internal/external stakeholders, communication with suppliers and customers.

Problem solving skills- Ability to problem solve to develop creative and innovative solutions

Team working skills-Ability to be able to work with a team to succeed with the idea.

resilience-the ability to be resilient when things get tough in the bussines

Planning and organizational skills-Ability to plan and organize with resources available at start-up and to continue to plan and organise as the business develops

Learning skills- Ability to continue to learn and to develop as the business starts and expands. Learning IT, staff management, new terms etc.

Question 3

list four characteristics or attributes an entrepreneur posseses

Answer 3

adaptability-entrepreneurs must be ready for the challenges that occur in their business and they must be able to overcome these challenges

risk taker-they are prepared to give things ago despite fears of them failing

growth mindset-when your business is struggling you need to have a growth mindset to keep persisting

creativity-sometimes you may need to be creative to overcome challenges or to help your products or service grow -to overtake competitors

Question 4

Define business opportunity?

Answer 4

A business opportunity is a set of circumstances that presents itself as a avenue for success.

Question 5

what are the 6 business opportunities?

Answer 5

Sources of business opportunity may include:
innovation and entrepreneurship
recognising and taking advantage of market opportunities,
changing customer needs,
research and development,
technological development
global markets

Question 6

distinguish between an entrepreneur and innovation:

Answer 6

An entrepreneur is someone who starts a business and is willing to take risks in order to make money. On the other hand innovation is refers to the process of creating a new or significantly improved product or service

Question 7

define innovation

Answer 7

Innovation may generally refers to the process of creating a new or significantly improved product, service or process e.g. mobile phone

Question 8

recognizing and taking advantage of market opportunities

Answer 8

Potential business owners may be able to identify market opportunities due to:
Inefficiency in the market
Identifying a gap in the market-A gap in the market is a group of customers whose needs are not currently being met.

Question 9

changing in customer needs

Answer 9

Changing customer needs:
The needs of customers in the market for any product can change due to:
changing incomes
changing tastes and fashions
changing prices of complementary and substitute goods and services
changing population
changing expectations about the market, including future prices
changes in the number of potential customers

Question 10

research and development

Answer 10

Research and development:
Research and development(R&D) is a set of activities undertaken to improve existing products, create new products and improve production processes.
R&D can provide a potential business owner with many opportunities. For example, it can allow a person to develop new products in response to the actions of any competitors, or to improve existing products so that they become more superior to those of competitors.

Question 11

technological development

Answer 11

The development of new products and processes creates opportunities for people with business ideas.

Question 12

global markets

Answer 12

Global markets:
A growing number of businesses sell goods and services in domestic as well as international market.
Some of the advantages afforded by global markets include:
the opportunity to grow and further expand a business
reduced dependence on local markets
extended life cycle of new and existing products through
reduced effects of fluctuations in markets caused by changes in season or demand by moving into markets with different patterns

Question 13

COVID-19 outbreak in Australia in 2020 set new challenges for businesses. Outline two business opportunities that were created from this.

Answer 13

research and development/innovation-covid vaccine
changing in customer needs-masks, sanitations
technological development-zoom, online bussinesses

Question 14

what are natural recourses?

Answer 14

Natural resources are the naturally occurring inputs that are used in the production process.
This includes, land, water, timber, coal etc. Anything that is physical.

Question 15

Labor factors

Answer 15

Labour resourcesrefer to the people that provide their skills, effort and knowledge to the business.

Question 16

capital recourses?

Answer 16

Capital resourcesrefer to the tools and machinery that are used to ­produce goods or ­perform ­services.

Question 17

popcorn-labor, capital and natural examples

Answer 17

natural-
the land used to grow the crops
the seeding
petrol to operate machinery and trucks
Labor-
-famers labor to plant corn, harvest and work machines
-delivery drivers who take the popcorn to the supermarkets
-supermarket workers who unload the truck and stack the shelves
Capital
-machinery used to harvest the corn
trucks who transport the popcorn to supermarkets

Question 18

Define marketing

Answer 18

Marketing is a essential way in which a business engages its customers and the wider community with its products and services. Without some forms of marketing customers may not be aware that the product exists.

Question 19

why is marketing so important to a bussiness?

Answer 19

Marketing is very important to a business as it makes the customers aware of your products or services, engages them and then helps them in the buying decision.

Question 20

What are 3 elements (essential characteristics) of marketing?

Answer 20

The 4p’s-market mix-price, product, place and promotion
Corporate social responsibility-refers to how the performance is doing not just on profit but other factors such as environment-keeping it environmentally friendly
Target market attributes-such as market dimensions, market segmentation, consumer trends and behaviour

Question 21

what is the relationship between marketing and the following business objectives:

Answer 21

Increasing profit – through generating more sales and revenue for the business through the marketing of goods/services.
Increasing market share – obtain a higher proportion of sales in the marketplace compared to competition.
Expanding the size of the business – offer new products in complimentary or even different categories. Example – Coca-Cola and Diet Coke, similar products but different target market.

Question 22

What is marketing segmentation?

Answer 22

Market segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements

Question 23

Geographic and demographic segmentation

Answer 23

geographic: This can include a suburbs or regions, cities, countries, rural or urban regions.
demographic: This can include age, religion, gender, family size, ethnicity, income, education.

Question 24

psychographic and behavioral segmentation

Answer 24

psychographic: Is the process of grouping people based on lifestyles and personalities.

Behavioural segmentation: divides consumers according to behaviour patterns as they interact with a company, product or service.
It studies the behavioural traits of consumers — their knowledge of, attitude towards, use of, likes/dislikes of, or response to a product, service, promotion, or brand.

Question 25

The 4p’s the marketing mix

Answer 25

product, price, promotion, place

Question 26

define product:

Answer 26

Aproductis a good or service that can be offered in an exchange for the purpose of satisfying a need or want.
Tangible product – the physical item that is purchased. This can include food, cars, phones etc.
Intangible product – the part of the product that does not have a physical aspect to it. For example customer service in a restaurant and the prestige associated with owning a luxury car

Question 27

define price

Answer 27

price is the cost to buy a product or receive a service.
Pricing strategies:
psychologic pricing: making the product look less than it is eg. 99 cents
price skimming-placing a high price on a new product as people are willing to pay extra to get the product early
premium pricing-setting a artificially high price to increase the prestige associated with the product.

Question 28

define promotion and types of promotion:

Answer 28

A promotional plan contains a detailed strategy for expanding your business or marketing a particular product.

Question 29

3 types of promotion

Answer 29

personal selling: selling directly to the customer or potential customer eg. real estate, cars, expensive products

publicity and public relations: doing things to get your brand recognized in the market place eg. sponsorship, community partnerships

advertising: using forms of media to convey your message eg. TV ads, radio, billboards

Question 30

define place and define its 3 elements

Answer 30

When we consider ‘place’ we must consider how widely available the product or service will be. Essentially, how will we make it available to our consumers? There are three elements we can consider:

intensive: A company places its product in as many outlets as possible, including supermarkets, convenience stores, and discount stores.

selective: when the business only chooses to sell its product at only a few places

exclusive: when a the product or service is only available at a retail location or a certain geographical area.

Question 31

factors affecting choice of location

Answer 31

Visibility: stores that wish to attract retail-based customers would seek high visibility. Foot traffic can be important, specially for a café.
Cost: consider the cost of your location. Some strips might cost more, some shopping centres may cost more.
Proximity to suppliers: allows for more items to be transported to the store and easier access to the goods and services it requires to function.
Proximity to customers: a place where customers are more likely to visit. This is impacted by transportation options and parking.
Proximity to competitors: more competitors close by may generate more potential customers but could also be a challenge for a business.
Complementary businesses: this may bring more potential customers to one location. For example, home maker centres often have furniture and electrical stores in close proximity.

Question 32

distinguish between effectiveness and efficiency in a business

Answer 32

effectiveness indicates the extent to which the business is achieving its set goals and objectives.
on the other hand efficiency assesses how the resources are being used by the business to achieve the set goals