Knowledge Recall Adv And Dis

Question 1

Backwards vertical growth

Answer 1

Merging with or taking over a business in a previous stage of a production stage.

Question 2

Forwards vertical growth

Answer 2

when a business takes over a company at a later stage in the production process

Question 3

Horizontal growth

Answer 3

occurs when two competitors join through a merger or takeover

Question 4

Disadvantages of a plc

Answer 4

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.

Question 5

satisficing

Answer 5

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

Question 6

Shareholders

Answer 6

People who own shares within a business

Question 7

Shareholders

Answer 7

People who own shares within a business

Question 8

A sleeping partner

Answer 8

a person who provides some of the capital for a business, but doesn’t take an active part in managing the business.

Question 9

Spotting an opportunity

Answer 9

Am entrepreneur who sees a gap in the market or an opportunity to make profit

Question 10

Success

Answer 10

Can take many forms
Growth
Independence
Profit

Question 11

Survival

Answer 11

A business does just enough to prevent itself from becoming bankrupt

Question 12

Market research

Answer 12

Collects information that might allow a business to spot gaps in the market to better target customers

Question 13

What is primary market research

Answer 13

Research conducted by the business itself

Question 14

What is secondary market research

Answer 14

involves gathering existing data. that has already been produced.

Question 15

What is secondary market research

Answer 15

involves gathering existing data. that has already been produced.

Question 16

Advantages of primary market research

Answer 16

Research is tailored to the business’s individual needs.

Information gathered is up-to-date and reflects the current market scenario.

Question 17

Disadvantages of primary research

Answer 17

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.

Question 18

Advantages of secondary research

Answer 18

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.

Question 19

Disadvantages of secondary market research

Answer 19

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.

Question 20

Market research- What is a questionnaire and how’s it useful

Answer 20

set of questions designed to gather specific information from respondents, often customers, employees, or other stakeholders

gain insights into preferences, behaviors, and opinions.

Question 21

Trials - Market research; what are they and how are useful

Answer 21

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.

Question 22

What are focus groups and how are they useful

Answer 22

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.

Question 23

What is census data and how might
A business use it

Answer 23

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.

Question 24

What are interviews and how are they effective for businesses?

Answer 24

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.

Question 25

What is qualitative market research?

Answer 25

gathering non-numerical data to understand deeper insights into consumer behaviors, opinions, motivations, and attitudes

Question 26

Competitor pricing

Answer 26

Setting price of products and services relevant to what other competition in the market there is

Question 27

What is cost plus pricing

Answer 27

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.

Question 28

What is Penetration pricing

Answer 28

The price of a product relatively low to gain attention

Question 29

What is price skimming

Answer 29

Setting the price high when product is first released, then lower it over time

Question 30

Name the 4 stages of the product life cycle

Answer 30

Introduction growth maturity decline

Question 31

What is an extension strategy

Answer 31

action a business takes when it identifies a product is close to entering the decline stage of the Product Lifecycle

Question 32

Extension strategy examples

Answer 32

Differentiate your product. …
Repackage and refresh. …
Introduce new sizing options. …
Product improvement. …
Identify new markets.