Knowledge Recall Adv And Dis Flashcards
Backwards vertical growth
Merging with or taking over a business in a previous stage of a production stage.
Forwards vertical growth
when a business takes over a company at a later stage in the production process
Horizontal growth
occurs when two competitors join through a merger or takeover
Disadvantages of a plc
it is expensive to set up, requiring a minimum set up cost of £50,000.
there are more complex accounting and reporting requirements.
there is a greater risk of a hostile takeover.
satisficing
means a business is making enough profit to keep shareholders happy or it’s sufficient for investors to maintain confidence in the management they appoint
Shareholders
People who own shares within a business
Shareholders
People who own shares within a business
A sleeping partner
a person who provides some of the capital for a business, but doesn’t take an active part in managing the business.
Spotting an opportunity
Am entrepreneur who sees a gap in the market or an opportunity to make profit
Success
Can take many forms
Growth
Independence
Profit
Survival
A business does just enough to prevent itself from becoming bankrupt
Market research
Collects information that might allow a business to spot gaps in the market to better target customers
What is primary market research
Research conducted by the business itself
What is secondary market research
involves gathering existing data. that has already been produced.
What is secondary market research
involves gathering existing data. that has already been produced.
Advantages of primary market research
Research is tailored to the business’s individual needs.
Information gathered is up-to-date and reflects the current market scenario.
Disadvantages of primary research
Conducting surveys, interviews, or focus groups can be expensive, especially for small businesses.
Time-Consuming: The process of designing, collecting, and analyzing data takes time, potentially delaying decision-making.
Advantages of secondary research
Cost-Effective: Since the data is already available, secondary research is generally less expensive than conducting primary research.
Time-Efficient: Businesses can access and analyze the data quickly, making it suitable for projects with tight deadlines.
Disadvantages of secondary market research
May Not Be Specific: The data collected might not perfectly align with the business’s specific needs or target audience.
Potentially Outdated: Secondary data may not be up-to-date, especially in fast-moving industries, leading to decisions based on old information.
Market research- What is a questionnaire and how’s it useful
set of questions designed to gather specific information from respondents, often customers, employees, or other stakeholders
gain insights into preferences, behaviors, and opinions.
Trials - Market research; what are they and how are useful
limited-time, often free or discounted, opportunities for customers to experience a product or service before making a full purchase or commitment.
allow businesses to demonstrate the value of their offerings while giving customers the chance to evaluate them firsthand without immediate financial risk.
What are focus groups and how are they useful
represent a target market or demographic
Focus groups allow businesses to explore consumer attitudes, opinions, perceptions, and motivations in a more in-depth and interactive setting.
What is census data and how might
A business use it
Data selected by the government to do with demographic
Census data can help businesses break down populations by specific characteristics, such as age, income, gender, or ethnicity. This enables companies to segment their target market more precisely.
What are interviews and how are they effective for businesses?
collect in-depth, qualitative insights from individuals about their preferences, behaviors, and opinions
Interviews can be used to understand the specific needs, preferences, and pain points of customers. This helps businesses tailor products or services to better meet customer expectations.
What is qualitative market research?
gathering non-numerical data to understand deeper insights into consumer behaviors, opinions, motivations, and attitudes
Competitor pricing
Setting price of products and services relevant to what other competition in the market there is
What is cost plus pricing
Setting the price based on the cost for making the product and adding a fixed percentage or markup of the cost to the product price.
What is Penetration pricing
The price of a product relatively low to gain attention
What is price skimming
Setting the price high when product is first released, then lower it over time
Name the 4 stages of the product life cycle
Introduction growth maturity decline
What is an extension strategy
action a business takes when it identifies a product is close to entering the decline stage of the Product Lifecycle
Extension strategy examples
Differentiate your product. …
Repackage and refresh. …
Introduce new sizing options. …
Product improvement. …
Identify new markets.
