Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

as levels > business theme 1 > Flashcards

business theme 1 Flashcards

1
Q

what are the limitations of market research

A

it is often biased

a small sample limits the reliability of the research

causality is hard to identify

collecting it is very time consuming

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what are the uses of market research

A

cash flow forecasting

budgeting

sales forecasting

workforce forecast

developing campaigns and adverts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

how to get a competitve advantage

A

innovation

architechture

repuation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

ways to add value

A

packagings

customisation

better designs/features

branding

good customer service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

factors affecting supply

A

external shocks (plague or war)

changes in the costs of production

indirect taxes

introduction of new tech making production more efficient

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

factors affecting demand

A

price of substitute products

advertising and branding

price of complimentry products

population/demographics

fashion tastes

external shocks

seasonality

changes in customer incomes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

income elasticity of demand formula

A

percentage change in quantity demanded

over

percentage change in incomes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what are the factors affecting ped

A

addiction
number of substitutes
effort/ cost of switching
% of income spent on the product
percieved value of the brand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

whats the difference between normal goods and inferior goods?

A

Normal goods: an increase in income leads to an increase in the quantity demanded. this is positive income elasticity of demand

Inferior goods: an increase in incomes leads to a decrease increase in quantity demanded e.g store brand food this is negative income elasticity of demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what are the benefits of adapting designs to changes in social trends?

A
  1. reducing waste helps businesses cut costs
  2. reflecting social trends through product design means they are more likely to sell large quantities
  3. social trends can be used as a usp to differentiate products
  4. adapting means that businesses are more likely to be seen as socially responsible inviting new customers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what are some ways to build a brand?

A

exploiting a usp
advertising
sponsorship
social media

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the 5 pricing strategies

A

dynamic pricing - price changes w demand

penetration pricing - low price when entering the market which increases over time

predatory pricing - low price to drive competitors out of the market

price skimming - the initial price is high when product is high in demand and is then lowered over time

cost plus pricing - business bases price on the unit cost and adds a percentage as a mark up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

benefits of online distribution

A

customers have lower prices as the businesses have lower costs.

businesses can take sales and customers can shop 24/7

customers can see reviews and make an informed choice, limits returns

lower start up costs make it easier for small businesses to launch

dont have to meet the costs of operating retail stores

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are the 5 stages of a product life cycle

A

introduction - heavy promotion low prices

growth - price may increase with popularity

maturity - focus on retention instead of new cutomers and promotion as people are aware of the product

saturation - the market is full
all potential customers have the product

decline - further price cuts to maintain demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

advantages and disadvantages of flexible working

A

easier to manage staffing costs

business can respond to short term changes in demand

specialist jobs can be done by experts who dont have to be permanently employed

employees may not feel committed to the company without a permanent contract

communication can be a problem

outsourced work may be of a lower quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are the three types of employee representation

A

trade unions - organisations established to protect and improve the conditions of workers

work councils - a forum within the business where managers and workers meet to discuss issues

employee committees - informal groups set up by workers that focus on specific issues in the workforce.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what are the benfits of external recruitment

A

may attract a wider number of applicants

helps increase capacity within the business

brings in new skills and ideas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what are the benfits of internal recruitment

A

cheaper than external recruitment

managers know their employees so theres less risk

may require less training

promotion opportunities are good for staff motivation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

benefits of a centralised business structure

A

works well where standardisation is required

appropriate where managers have the knowledge and workers are low skilled

suitable in times of crisis

effective in cost minimisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

benefits of a decentralised business structure

A

effective where local teams are best placed to make decisions to meet customer needs

appropriate where business is spread over a wide geographical area and local needs are important

effective at reduing workload of denior managers and promoting autonomy

allows for flexible working

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

benefits and drawbacks of tall organisational structures

A

managers have tighter controls

clear promotional route

communication may be poor because of long chain of command

slow to make decisions because of long command chain

tight controls may be demotivating

expensive because lots of managers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what are the benefits and drawbacks of flat structures

A

communication is good

decisions are made quickly

workers are more motivated

managers may lose conrol of workforce

can be cheaper because fewer managers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

briefly explain taylors theory of motivation

A

this is based on work study and improving productivity and efficiency

people are motivated purely by money

employees should be assigned to complete one task with clear instructions

they are given elementary training

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

briefly explain mayos theory of motivation

A

Based on the fact that employees have social needs that must be fulfilled through their work

any job design should ensure human interaction and be designed to the benefit of the workers not of the business

workers are not simply motivated by money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
briefly explain maslow's heirarchy of needs
this focuses on the psychological aspect of motivation and that it comes from within and its the role of the manager to unlock this people are driven to achieve personal needs basic needs - psychological and security needs within a social environment - self actualisation, self esteem, love and belonging
24
name 4 financial methods of motivation?
commission piecework performance related pay profit sharing / bonus schemes
25
name 4 non financial methods of motivation
delegation, consultation and empowerment - autonomy team working flexibly working hob rotation / enrichment /enlargement
26
briefly explain herzberg's theory of motivation
hygiene factors like poor pay,work conditions and a lack of job security and promotions. when these factors are taken care of job dissatisfaction will decrease but it will not increase satisfaction
27
briefly explain the 4 types of leadership styles
autocratic (authoritarian) - one individual has full control of the group and expects obedience from subordinates democratic - encourages each team member to participate in decision making through sharing their opinions laissez - faire - the leaders are hands off and allow their team members the autonomy to make their own decisions paternalistic - dominant authority figure who treats employees as if they are part of a large family
28
what are the skills of an entrepreneur
organisation financial management managing and communicating with people negotiating deals
29
what are the pros and cons of private limited companies
pros: limited liability corporation tax is lower than income tax easier to raise capital through friends and family cons: harder to set up than a sole trader or partnership accounts published and publicly available cant raise larger amounts through selling publicly
30
what are the pros and cons of public limited companies
pros: can raise huge finance through stock market flotation and issuing shares easierto gain economies of scale through the size cons: accounts openly available to the public greater external pressure through the media and pressure groups
31
factors of production
land labour capital enterprise
32
approaches to flexible working
outsourcing - getting other specialists to complete a particular task multi skilling - employees carry out multiple roles flexible hours and remote working part time and temporary
33
how to design a product to meet social trends
products sourced ethically products designed to be recycled products designed for reuse products designed for waste minimisation
34
What are the 4 elements of the marketing mix
product place price promotion
35
explain the boston matrix
star tr - leading brand in the market distribution must be available to ensure product availability ? tl - fast growing but not fully established. lots of investment to ensure success and lots of competition from rivals cow br - successful product in a mature market. they generate high revenue that can be invested into other areas. little promotion is required dog bl - requires investment to revitalise or we discontinue the product
36
trade union negotiation
when an employer formally agrees to conduct negotiation on pay and working conditions with a trade union instead of with each worker
37
work councils
a forum within the business where workers and managers meet to discuss issues like pay conditions and training
38
collective bargaining
process of negotiating terms of employment between an employer and a group of worker who are usually represented by a trade union official
39
employee committees
a group of employees meet to focus on specific issues
40
what difficulties might an entrepreneur face when becoming a leader
must adjust their mindset to see themselves as a leader leaders need qualities like confidence compassion and interpersonal skills sharing ownership and control of the business stress
41
how might entrepreneurs overcome the difficulties of becoming a leader
stress management education - e.g leadership development courses mentor - gain advice from an experienced mentor delegate and trust
42
what factors must businesses consider when making decisions
investment appraisal risk vs reward probability of success - (decision trees) pros and cons list
43
what is opportunity cost
this is the benefit lost from the next best alternative e.g the benefit lost from launching a new advertisement campaign instead of investing in employee training
44
what is the meaning of stock market flotation
when a company goes public and becomes a PLC their shares are on sale to the general public and these shares can be traded
45
what are share prices affected by?
the company's performance at the business environment in which it trades. their shares may fall even if they're performing well but theres fears about its future
46
what are the impacts of share prices falling.
vulnerable to risk of hostile takeover price fall gives an indication of poor performance company finds it harder to raise capital consumers w shares feel less confident to spend
47
what are franchises
these are private limited companies that license the right for individuals to set up an identical operation in a different region.
48
what are the pros and cons of franchising for the franchisOR
it allows the business to expand without the owner taking direct responsibility for each branch the franchisor gets set up fee and royalty payments risk of the franchisee damaging the brand if not run effectively
49
what are the pros and cons of franchising for a franchisee
they recieve a 'business in a box' - plans, products, marketing and an established brand they get training and support from the franchisor expensive set up fees and little freedom to change the business format royalty payments mean a share of sales are lost
50
what is the difference between a franchisor and a franchisee
Franchisor is the owner, the one licensing the brand to others the franchisee is the regional branch that is operating under the Franchisor's brand name
51
what is a social enterprise
businesses which trade for a social or environmental purpose. not for profit organisations e.g charities that may pay lower tax rates
52
what is the difference between an LTD and a PLC
LTDs - shares are traded privately PLCs shares are traded publicly
53
what are the 4 forms of a business
sole trader partnership private limited company public limited company
54
what are the characteristics of a sole trader
easy to start up, no registration needed be your own boss but long hours owner keeps all profits unlimited liability
55
what is the difference between limited an unlimited liability
limited liability is where the owner is a separate entity from the business in the event of business failure, shareholders can lose their investment but their personal belongings are safe unlike unlimited liability where there is no distinction between the individual and the business
56
what are some types of flexible working
multi skilling part time/ zero hour contracts work from home outsourcing flexible working
57
what are the external factors that could have an impact on a company
Political Environment Social Technological Legislation Economic
58
what are the 4 aspects of the marketing mix
product price promotion place
59
what are the 3 parts of the design mix
aesthetic cost and function
60
what are the benefits of adapting design to meet social trends
can be used as a USP Businesses can attract ethical consumers and investors Reducing waste helps businesses cut costs more likely to sell large quantities if products are trendy
61
What are the benefits of market mapping
tells businesses if theres a gap in the market for them helps compare similarities and differences between businesses helps businesses gain a better understanding of its competition
62
what are the 3 ways a business can achieve competitive advantage
innovation - ability to create new products architecture - relationships within a business between suppliers customers and employees reputation - brand values are hard to replicate and may take years to develop
63
how to interpret PED calculations
Above 1 is price elastic below 1 is price inelastic for a price inelastic product : a change in price will lead to a change in demand proportionately smaller than the change in price ignore the negative when calculating PEd just focus on the decimal number
64
what kinds of goods have income elastic demand
goods such as TVs holidays, clothing, cars
65
Benefits of Market segmentation
Allows a business to grow their share in markets or ride a wave of fast growing segments helps with new product development, focused on the needs of customers in the segment helps make the marketing mix more effective e.g better targeting of promotion
66
Drawbacks of market segmentation
market segments are very dynamic and fast changing so the info about that group and their needs may be outdated. data is not always available, up to date or reliable just because you can identify a segment doesn't mean you can reach it
67
what are the benefits of using retained profits/ internal SoF
no interest which reduces costs. will have complete flexibility/control in how it uses the funds.

as levels (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions