Introduction To Business Flashcards
What is an entrepreneur?
Someone who sets up a business//expands a business
What are the characteristics of an entrepreneur? Name 2
Creativity
Hard working
Resilience
Initiative
Self confidence
Risk taking
What is market research?
gathering information on how consumers purchase goods and purchases
What is primary market research?
collecting new data
What is secondary market research?
research has already been collected
What is an example method of primary market research?
focus groups
questionaires
observations
What is an example method of secondary market research?
company reports
sales statistics
loyalty card data
What is qualitative data?
an in depth worded response
What is quantitative data?
a statistical response
What is product orientation?
focusing on developing the product
What is market orientation?
focusing on customers wants and needs
What are the 5 examples of differentiation?
distinctive design
branding
performance
exceptional customer service
ethical product/service
What is market mapping?
a visual representation of how current businesses are perceived in the market - customer pov
What are the 4ps?
PRODUCT - developing the product
PRICE - strategy regarding price
PROMOTION - advertisement
PLACE - where the product is sold
What are the 4 sectors of market segmentation?
geographic
demographic
psychographic
behavioural
What is the demographic segment?
factual information about a person
age, gender, sex, family, education, income
What is the geographic segment?
where the customers live
countries, nations, states, regions, cities, neighbourhoods
What is the psychographic segment?
hobbies, beliefs, attitudes
What is the behavioural segment?
shopping patterns, purchasing behaviour, loyalty
PESTLE
Political
Economical (changes in income - inflation)
Social (change in trends)
Technological
Legal
Environmental
What is the design mix?
aesthetics (how a product appeals to the 5 senses)
function (R&D)
economic manufacture (how cheap a business can make it)
What is a business plan?
document that illustrates the thought processes of the start up business or future planning of an established business
What would a business plan include?
- executive summary
- target market
- competitors
- human resources
- vendors/supplies
- marketing plan
- operations
- financial projections
What is a sales forecast?
estimate the likely number of a product that will be sold by the business or market over a future period
What is cash?
the money the business has available to spend here and now
What happens if a business runs out of cash?
may need to sell non current assets
disrupts business operations
What is a cash flow forecast?
a financial tool that helps businesses estimate the amount of money they expect to flow in and out of their bank account within a specific period
What is trade credit?
business is given credit from their supplier - allows the business to receive product/raw material then they sell it which leads to cash inflow
What is break-even?
number of units or customers a business needs to sell so the revenue matches the costs - no profit or loss
Ways to improve break-even?
increase selling price = increase total revenue// increase CPU
decrease variable cost = increase CPU// decrease total costs
decrease fixed cost = decrease total costs
= requires less units to be sold to break-even = less likely to make a loss
