enterprising Flashcards
entrepreneur
someone who has a bussiness and develops it. he or she takes risks and the profits that the losses that come with success and the losses that inevatably
tangable
something you can see or touch
what does dynamic mean in business
changing
what is meaning social enterprise
a business for charity
what does word captial mean
money
what skills do people need in running a businessman
risk taking
leadership
confidence
organised
teamwork
trustworthy
why would people start a business
to make capital to help charity to develop ideas passion to make there own decision as a boss change in technology change in what consume you want produces and service becoming obsolete
what is a product
a product is anything that is capable that is satisfying customers
what is service
A service is an act that a business person carries for you in exchange for money for e.g: dental experiments,accountants,travel agents,gardening, change hardware
are services and product tangeble
yes
what are risks
business failure
If a business fails to plan for the future it may rise losing out to a competition
why business fail
new products being made poor plan rent prices going up market failure products that don't satisfy customers
what is rewards
rewards are business success,independence,profit
what is financial risks
starting a business can be a financial risk
the owner not pull their own(as a businessman and other assets into a business
what is lack of security
if an entrepreneur has a regular job and they decide to leave the job to open their own business this is a huge risk.
the 3 roles of business enterprise
to produce goods or provide services
to meet the needs of customers
add value
factors of production
land-somewhere produce the goods e.g: a farm
labour-people to work in the business e.g:farm workers
captital-money to start the business
enterprise-this is the drive of motivitation from the owners to stuff a business
what is added value
added value-the difference between what a business pay its suppliers and the price it is able to choose for its product and services
ways to added value
branding(logo’s+celebrity+influence)
unique selling point(different styles)
convience(online website)
design(different collections) looks good+fits trend
quality(provide gurantee that the product doesn’t break)
what is a focus group
a focus group is a group interview
what are questionaires
questionaires can be opened or closed
open questions requires extended responses e.g: people opinons
what is a closed question
closed questions are multiple choice questions with pre-planned which a person can choose from
what is an observation
observations involves watching customers to find out their reactions
benefits of questionaires
can be done online or in person to give detailed responses from people
different people opinon can be given.Further questions can prompt adapted questions
drawback of observations
people may be hesitant to take part and contribute as it can take time.Also they may be worried for being judged for absolute responses
people may want compensations and rewards for taking part
what is observations
observations involve watching customers to find out their reactions products or services
benefits of observation
if people don’t know they are being observed their real/natural behaviour may be displayed. therefore the business can find out exact requirements
the researcher can looks out for behaivour they are looking for and avoid all other things
what is drawback of observations
people may not agree to being observed as primary laws may be breeched
can lose customers if they feel they have been treat dishonest
what is secondary research
secondary research is also called desk research where information already exists in some collected the data
advantages of secondary reasearch
quick and easy to gather
can provide industry spetfic information
often easy to anylase
disadvantages of secondary reasearch
not speftic to business
could be out of date
may be biased or inacurate
what is internet reasearch
internet research includes data taken from the competitors,websites,newspapers articles and social media this provides a business with an overview of information
what is quantative(quantity data)
data displayed in charts,graphs, as statstics and percentage is usually numerical data
it is usually expressed as opinon
includes descriptive infomations
advantage of quantative
more original responses and opinons
can meet exact customers requirements as you detailed responses
disadvantages of quantative
the consumers to anylase as people may write long responses
costs as a requires detailed anylase
the responses may be anylased and interprutted
advantages of using social media in market research
.cheaper than organising a focus group
.real time and more up to date group than other methods to gather data takes months
.access to a much larger auidence for responses
. can track trends e.g: popular hashtags and posts
disadvantages of using social media in market reasearch
.social media is not aligned by everyone for e.g:elderly and people who don’t use social media e.g: elderly and people who don’t use social media for e.g: elderly and people who don’t use social media.
.post/hashtags are public so everyone including competitors for see
.people may not tell truth as they don’t want to be judged
the importance of reliability of market research data
if the results are duplicated then data is reliable
basing decisions on unreliable research can be very costly to a business
the facts and evidence needs to be accurate
advantages of market research
.the business can make properly informed decision
means less money is wasted
. reduce risks
. gives a higher chance of business sucess
disadvantages of market research
the business can make unwise decision
it could ultimately test business money
what does word segmentation mean
segmentation is breaking down a market into sub-groups
what are demographics
demographics is data recreated to population
what is income
income is the population can also be split into; ;low,middle and high income
what is disposable income and why is it important
disposable income is important so product can be targeted to prevent income group
disposable income is the money left over after all bills have been paid
advantages of disposable income
unique selling point
splits up different categories
business can adapt their products
diversity range of products and reduce risks
what does market mapping mean?
identify key features for competitors:
can spot gap in the market
can focus on features to make product different to it’s competitors
can make business decision about product-can make sure products are all differents
what is a competitive enviroment
A competitive enviroment is the dynamic external system in which a business competes and functions
why business might say price is important in customer competition?
lower price may mean lower profits
this will mean the business will have lower costs e.g:money redundant
this may also means that it starts a price war with other competitors
why business might say location is important when business compete with other competitors
having the most conveniet location for e.g: close to customer and close to housing estate
being able to offer free parking to customers
locating out of town so that the business can have a large store and often a large range of products than competitors
business may decide to look where products are located somewhere it attracts lots of profit and a high popularity
why business might say quality is important when competing with other businesses
if the business decides to improve the quality of its products this will lose more
if costs increase then this will mean that profits will be lower
this is risky as customer may care more about price than quality
what is swot analysis
swot analysis helps a business asses its competitive strength and the nature of its external enviorment
swot anyalsis stands for
strengths(internal) strengths refers to what the business is doing well
weakness(internal)-refers to the weak areas in the business
opportunities(external)- refers to opportunities available to business
threats(external)- refers to threat outside the business
what are aims?
Aims are the strategic groups of business
what are objectives
objectives are more specific and used to help acheive aims
5 examples of business aims
reduce risks meet customer needs add value make profit brand recognition
why does a business set aims and objectives
gives specific target by which performance can be measured
used to motivate workers
clarifies business decisions
aids decision making
financial objective
to make profit
for the business to survive be able to pay all it’s debt
to achieve financial security
to gain note sales
non financial objectives
for a personal challenge to satisfy respect for personal satisfaction to have independence to help people
private sector objectives
manufacturers,retailers,banks,architects owned by private industry(not the government) are in the private sector
public sector objectives
BBC,met office,royal mint,state school,NHS hospitals are owned by the government and so are in the public sector (things of it as owned by the government for benefit of public)
3 types of objectives that might have these objectives
increase revenue from donations
reduce risks
to provide for those in need
growth versus profit
to boost sales, in the short terms a company may need reduce risks but this will also reduce short term profit
short term vs long term
a business may have less cash flow available in the short term if it is spending money investing in new products or plant or equipment
short term revenue
money coming into the business through sales
fixed cost
there are costs that stay the same and do not change with the level output of sales. these costs have to be paid even if a business produce no products
variable costs
these are uses that do change with the level of output or sells
profit
profit is the main objective of business
profit is the amount of money left over-once all the bills have been paid
interest
the cost of borrowing money and reward for saving money. Interest if card on the repayments borrowing money from the bank for e.g: mortgage
break even
the point at which a business makes neither a loss nor profit
margin of safety
the amount of sales the business can make below they make a financial loss
The importance of cash to a business
to pay rent to keep the business running to make products pay suppliers to prevent insolvency to pay overheads
insolvency
insolvency- when the business lacks the cash
overheads
cost of a business that do not directly contribute the cost of making the products or from the services
profit
total revenue-total costs in a business or what is left once all bills have been paid
cash flow forecast
A financial tool used to calculate the amount of cash flowing into and out of a business
Inflow e.g:
sales donation load from the bank grants interest on bank balance
overflow e.g:
rent buying supply waste and supply tax and profits interest on loans repayment
how could a business improve its cash shortfall
invest in advertising pay change there bank get loan cut cost organise trade get loans pay cut costs organise trade credit with suppliers offer overdrafts reduce credit given to the customers budget immediate payment required use cheaper suppliers discount and promote to encourage more sales
overdrafts
a bank grants the business the ability to take more money
advantage of overdraft
you don’t have to apply quick and easy
disadvantage of overdraft
interest rate cased is usually low
Markerting mix
a small business will need a consider there marketing strategies
4ps
product
price
place
promotion
