Business Management Flashcards
business
an organisation that provides goods or services to customers for profit
business management
process of planning, organising and controlling resources to achieve the goals of a business
goods
tangible products
services
intangible
social enterprise
a business that aims to make a profit and improve the community/ environment
entrepreneurship
process of starting and managing a new business venture, taking on financial risks in the hope of making a profit
strategies that entrepreneurs use
identify business and passions, explore skills and expertise, researching market trends and embracing innovations
innovation
essential for starting business – allows you to meet market demands, differentiate you from others…
competitive advantage
the advantage that a company has over its rivals
how do i achieve competitive advantage?
lowering a price, improving quality, using raw materials…
Porter’s Strategic Theory
product differentiation and lowering costs
methods of lowering costs
input prices, bulk production, standardised products
input prices
reducing price of its inputs
bulk production
buying resources in bulk
standardised product
large production volumes with standard inputs (so basically the bulk production)
what does lowering the cost do
increases business profits and increases percentage of market share (since it’s increasing the amount of products made as well)
methods of achieving differentiation
marketing, quality, technology, branding, customer service
marketing
the strategic process of promoting and selling products or services by understanding customer needs, creating value and effectively communication with the target audience
market research
the process of collecting and analysing customer information
target markets (4)
demographic, geographic, psychographic and behavioural
demographic
age, gender, income level, education
psychographic
what motivates customers – attitudes, values, interests
behavioural
purchasing behaviours, brand loyalty, usage rage
geographic
physical locations – rural or urban? hot or cold climate?
market segmentation
determines the target market – dividing up the market into different groups of customers that share similar characteristics
the 4 Ps of marketing
product, price, place and promotion
price
the money you pay – price adjustment strategies (3)
what are the price adjustment strategies
promotional pricing, psychological pricing and price matching
place
do i want direct or indirect distribution, online or irl store?
promotion
advertising, personal selling, direct marketing, social media marketing, influencer marketing
product
branding, designs, quality and packaging
