Business Paper 1 Flashcards
Why do businesses exist
To add value
TO provide goods or services
to meet customer needs
what are customer needs in a product
Convenience
Branding
Quality
Design
What are the risks of a business
Business failure
-Financial loss personal funds invested
Lack of security
What are the rewards of a business
Sense of achievement
Self esteem
Profit/Financial gain
Independence
Why do new businesses come about
Changes in technology
Changes in consumer wants
Existing products becoming obsolete
How do new ideas come about
Original Ideas
market research and observation
What is the purpose of market research
Identify customer needs
find gaps in the market
Reduce risk
What are the two methods of research
Primary -Data you retrieve yourself
Secondary- Data found from outside sources
Give examples of Primary and secondary research
Primary-
Surveys
Small groups
Secondary-
Internet
market reports
What is market segmentation
Breaking up the market in order to find gaps in it
What are financial Aims in a business
Maximum sales
Survival
Maximum Profit
What are non financial Aims in a business
Personal Satisfaction
Independence
