Ch1- Intro

Question 1

What is Business?

Answer 1

Producer provides goods and services in hope of earning a profit

Question 2

What is profit?

Answer 2

Difference between revenue and cost, the revenue is greater than the cost

Question 3

What is loss?

Answer 3

When the revenue isn’t greater that the cost

Question 4

What is an entrepreneur?

Answer 4

A person who takes risks to manage their business

Question 5

What is standard of living?

Answer 5

The quality of life people have.

Question 6

When and what is Mercantilism+Trade?

Answer 6

1500
Based on trade between colonies and their mother country. The mother country takes resources from the colonies to make products then resell the product to the colonies

Question 7

When and what is Industrial Revolution?

Answer 7

1700/1800

Replacing artisans with factories and mass production, the cost per unit decreases as well as the quality of life

Question 8

When and what is entrepreneurship era?

Answer 8

Mid 1800

Large scale business enterprise, the first millionaires and larger businesses scales

Question 9

When and what is production era?

Answer 9

1900
Efficiency and specialization in factories
Henry Ford and the assembly line.
Science is associated with business(scientific management )

Question 10

When and what is marketing era?

Answer 10

After WWII
Choice in the products you can buy (a lot of brands) + competition
Companies needs to find ways for their companies to buy their products (advertisement)

Question 11

When and what is relationship era?

Answer 11

Today

Long term relationship with the customer, it’s cheaper to keep a customer than acquire a new one

Question 12

What is a Profit business

Answer 12

Primary goals is to increase profit.

Based on increasing revenues and decreasing expenses.

Question 13

What is a non profit business?

Answer 13

The primary goal is not profit.
It functions the same was as a business (meet their goals in an efficient way)
Generally provides social or education services to the general public.

Question 14

What are the four factors of production?

Answer 14

Natural resources
Human Resources
Capital
Entrepreneurship

Question 15

What are Natural resources?

Answer 15

Anything that comes from nature, in their natural state

Ex:river

Question 16

What are Human Resources?

Answer 16

Labour + skill to create goods and services

Ex:teacher

Question 17

What is capital?

Answer 17

Tools and equipment used to create goods and services

Ex:computer

Question 18

What is entrepreneurship?

Answer 18

Risk to create/start something new

Ex: first to use…

Question 19

What is the general goal of PESTLE?

Answer 19

Hello analyze the business environment, anything that is outside the control of the business

Question 20

What is the PESTLE composed of?

Answer 20

Political/ legal
Economic
Socio-cultural
Technological
Environmental

Question 21

What are some elements of Political/legal element of PESTLE?

Answer 21

Political party that got elected,
Taxes/laws
Political instability

Question 22

Elements of the economic of PESTLE?

Answer 22

The state of the economy (grow and contraction phase)
Debt
Inflation

Question 23

Elements of socio-cultural of PESTLE?

Answer 23

Taste and preferences
Diversity
Aging population
Ethic+values

Question 24

Elements of technological of PESTLE?

Answer 24

Internet+e-commerce

It allows businesses to try and do new things

Question 25

Elements of environmental PESTLE?

Answer 25

Current environment and availability of resources

Question 26

How do you build long-term real action ships with customers?

Answer 26

Loyalty program, membership cards, login, subscription

Question 27

Customer satisfaction

Answer 27

How happy they are with the product and the price | +experience, mood, time spent

Question 28

What is workforce advantage?

Answer 28

Leads to better results and quality thus more profit

Question 29

What is competitive advantage?

Answer 29

What sets you apart from the competition | Ex: a product that is hard to copy

Question 30

What are the porter’s 5 forces?

Answer 30

``` Industry competition Threat of new entrants Bargaining power of buyers Bargaining power of suppliers Threat of substitution ```

Question 31

What is industry competition of P5?

Answer 31

How strong and how many competitors are in the market

Question 32

What is threat of new entrants of P5?

Answer 32

Likely hood and hoe easy it is to enter a market | How easy it is to get the customers

Question 33

What is bargaining power of P5?

Answer 33

The customer can drive the price lower | We don’t buy those products on a daily basis, they are expensive and there is a number of choice of the provider

Question 34

What is and what causes the bargaining power of suppliers in P5?

Answer 34

Supplier can drive the cost of raw materials or part higher | Caused by scarcity of resource and low competition for the supplier

Question 35

What is the threat of substitution of the P5?

Answer 35

The more substitutes a product in its category has the worse it is for your business

Question 36

What is globalization?

Answer 36

Integration and interdependence of countries in terms of resources, consumers and competition.

Question 37

Why can competition be a good thing for customers and companies?

Answer 37

For customers: drives price down For companies: motivation to get better as a business /growth

Question 38

What is free trades?

Answer 38

Economic and political movement used to help goods and services flow freely between countries

Question 39

What can be used to protect local market from free trades?

Answer 39

Tariffs (taxes fro buying a foreign product) | Quotas (how much can be bought in a market)

Question 40

What is Gatt

Answer 40

General agreement on tariffs and trades. | The international community comes together to prevent war and trading crisis