Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business studies > paper 1 > Flashcards

paper 1 Flashcards

1
Q

what is a mass market ?

A

targets all consumers

- more generalised products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is a niche market?

A
  • appeals to much smaller segment

- focus on specialist want/need

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

pros and cons of mass markets

A
  • economies of scale
  • more consumers to target

-high levels of competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

pros and cons of niche markets

A
  • higher profit margins
  • less competition
  • loyalty from customers
  • smaller target market
  • no EOS
  • may be risky as doesn’t appeal to large amounts of people
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is a dynamic market?

A

constantly changing eg. fashion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is risk?

A

the chance of failure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what can risk lead to?

A

lack of security

  • financial loss
  • failure
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is uncertainty?

A

when a business doesn’t know the outcome of a situation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what does market research usually focus on?

A
  • demand
  • competition
  • target market
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is qualitative research

A
  • not numerical
  • opinions/ views of consumers
  • higher detail levels
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is quantitative research

A

figures/ facts

-can easily be recorded and grouped

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is sampling?

A

when a business selects a sample of population to collect data from (choose a cross- section)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

pros and cons of sampling

A
  • reduces costs
  • less time consuming

-may not be representative of full TM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

segmentation groups

A

demographic
behavioural
geographical
income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is market mapping used for?

A

to identify a gap in market that could be exploited

-looks at price and quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is the design mix

A
  • functionality (how it works / reliability)
  • economic manufacture (does it allow profit to be made)
  • aesthetics (how something looks/feels)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is PR (public relations)

A
  • business reputation

- good public image

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is sales promotion

A

aim to boost sales by introducing temporary promotion (eg. buy 1 get 1 free)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what is price skimming

A

when a business initially sets a high price and gradually lowers it over time

(aim= to maximise revenue/ cover costs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

4 factors that influence pricing

A
  • degree of competition
  • nature of product
  • costs
  • product life cycle
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what is price penetration?

A

when a business initially sets a low price and gradually increases it over time

(aim= to increase market share)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what is cost-plus pricing?

A

add a mark-up onto of cost to produce (percentage added)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what is competitive pricing?

A

pricing set depending on what other businesses in market are charging

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

what are the 2 influences that social trends have on pricing?

A
  • price-comparison websites

- technology

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

3 types of distribution channels

A
  • traditional (manufacturer- wholesaler-retailer-consumer)
  • modern (manufacturer- retailer- consumer)
  • direct (manufacturer- consumer)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

what are the stages of product life cycle?

A
  • research and development
  • introduction
  • growth
  • maturity/ saturation
  • decline
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

what is a extension strategy?

A

methods used to delay or stop decline

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

4 features in boston matrix

A
  • problem child
  • cash cow
  • rising star
  • dog
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

dog in boston matrix

A

low market share, low market growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

rising star in boston matrix

A

high market share, high market growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

cash cow in boston matrix

A

high market share, low market growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

problem child/ question mark in boston matrix

A

low market share, high market growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

what is an enterprise

A

come up with new ideas/ making improvements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

what is a franchise

A

when a business sells another business the right to use name/ sell products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

franchising advantages

A
  • cheaper that opening new stores
  • aids growth
  • increases brand awarenesss
  • paid royalties
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

franchising disadvantages

A
  • looses control

- could lead to bad reputation if ran badly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

indicators of economic growth

A
  • HDI (human development index)
  • GDP (gross domestic product)
  • GDP per capita (total divided by population )
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

what is capacity utilisation?

A

measures existing output relative to maximum output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

what is quality assurance

A
  • staff checking at each stage
  • aims to prevent mistakes and self checking
  • ‘zero-defects’
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

what is quality control

A
  • checking product at the end

- checks that standards have been met

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

quality assurance advantages

A
  • motivates staff as more ownership of work
  • prevents mistakes
  • less waste
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

quality control disadvantages

A
  • time consuming as gone through all stages already

- wasteful of faults are found

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

quality control advantages

A
  • accurate as dome by specialists

- ensures standards are met

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

quality assurance disadvantages

A
  • time consuming for staff
  • employees standards may vary
  • less productivity
45
Q

what is quality circles

A

small groups of employees from different levels in firm come together and discuss quality

46
Q

quality circles advantages

A
  • employees feel more valued by business

- adding higher chance of improvement as people may spot different things.

47
Q

quality benchmarking

A

general approach to business improvement

  • can provide useful quality improvements
  • assess position business is in
48
Q

what is kaizen?

A

-constantly introducing small changes to improve quality/ efficiency

49
Q

what is total quality management?

A

focus is mainly on quality
-everyone contributes towards the quality
-

50
Q

how can managers implement TQM?

A

incentives to increase motivation

  • gradually introduce to avoid sudden change
  • provide training to ensure employees feel supported
51
Q

what is sales forecasting?

A

prediction of future sales for a business

52
Q

3 techniques of sales forecasting

A
  • moving average
  • extrapolation
  • correlation
53
Q

what is a moving average?

A

used to identify trends by ‘smoothing’ out fluctuations in data.

54
Q

4 point moving average

A

1/2 month 1+ month 2+ month 3+ 1/2 month 4 /4

55
Q

3 point moving average

A

month 1 + month 2 + month 3 /3

56
Q

what is extrapolation?

A

uses trends established from historical data to forecast future (carrying on the line)

57
Q

moving average advantages

A

easy to interpret

  • easy way to predict future sales
  • good for stable markets (not dynamic)
58
Q

moving average disadvantages

A
  • doesn’t take into account external factors
  • time consuming
  • focus on past (retrospective)
  • not useful for dynamic markets
59
Q

advantages of extrapolation

A

simple to do

  • easy to interpret
  • doesn’t require much skill
60
Q

disadvantages of extrapolation

A
  • could be inaccurate
  • based on past events (retrospective)
  • no qualitative date ( just numerical)
61
Q

what is correlation?

A

looks at relationship between 2 variables

independent/ dependent

62
Q

importance of sales forecasting

A
  • helps aid decision making
  • help reach aims/ objectives
  • measure success
  • motivate staff
  • show business direction to investors
63
Q

what is a business plan importance

A
  • test feasibly of ideas
  • increase success chances
  • attract investors
  • show direction
64
Q

what does a business plan consist of?

A
  • overview eg. background
  • description and USP
  • strategy with aims
  • marketing (research)
  • operations( facilities/ equipment needed)
  • Financial Information (sales forecast)
  • evaluation (strengths/ weaknesses)
65
Q

what is a cash flow forecast?

A

prediction of a businesses financial position based on both money coming in and out

66
Q

balance sheet structure

A 
non current assets
current assets
current liabilities
working capital (CA-CL)
non current liabilities
net assets (NCA+ working capital - NCL)
financed by...
total equity (all financed by added together)
67
Q

what is break even

A

total revenue is equal to total cost

68
Q

what is budgeting?

A

forward financial plan concerning revenue and cost for business

69
Q

what are the 3 types of stock

A
  • raw materials
  • finished goods
  • work in progress
70
Q

what is buffer stock?

A

an amount of stock held in case of unexpected orders to enable them to be able to meet demand/ orders

71
Q

methods to create budget

A
  • zero based budgeting

- historical based budgeting

72
Q

what is variance?

A
  • difference between the actual and budget figures
  • favourable = better than expected
  • adverse = worse than expected
73
Q

what is an income statement

A

shows trading performance of a business and if made profit/ loss

74
Q

structure of income statement

A 
revenue
cost of sales
GROSS PROFIT (revenue- cost of sales)
fixed overheads
OPERATING PROFIT (gross profit- overheads)
net financing costs(interest)
profit before tax
tax
NET PROFIT (profit before tax- tax)
75
Q

what is a balance sheet?

A

snapshot of businesses financial position from any point in year (assets and liabilities)

76
Q

what is a push factor?

A

a factor that makes business want to expand internationally due to domestic issues.

77
Q

what is pull factors?

A

a factor that makes a business attracted to growing internationally

78
Q

what is international trade?

A

exchange of capital, goods and services across international borders.

79
Q

advantages of international trade

A
  • economies of scale
  • increase demand in other countries
  • may be far in product life cycle in one country
  • better use of scarce resources / nearer raw materials
80
Q

what is FDI

A

foreign direct investment
-investment from one country into another
inward/outward

81
Q

what is inward FDI

A

when foreign capital is invested in local resources

82
Q

what is outward FDI

A

when local capital is invested in foreign resources

83
Q

benefits of FDI for MNC

A
  • cheaper labour

- closer proximity to raw materials (decrease transportation costs)

84
Q

benefits of FDI for host country

A
  • creates new jobs

- can fulfil a missing need in market

85
Q

what is protectionism?

A

attempt by country to impose restrictions on trade

-aim is to protect domestic business from overseas businesses

86
Q

what is a tariff?

A

added amount onto price of imported products

87
Q

what is a quota?

A

volume limit on imported goods

88
Q

advantages of tariffs

A
  • business in domestic market has more chance of competing as they are cheaper alternative
  • increased money for government
89
Q

disadvantages of tariffs

A
  • more expensive for customers

- may decreases demand

90
Q

what is ease of doing business

A

how accessible the market is for businesses

91
Q

what is a MNC

A

-multi national company is a business that has operations in more than one country

92
Q

what is organic growth

A

growing using businesses own resources (internal)

93
Q

what is inorganic growth

A

growing using resources outside of business (external)

94
Q

what is psychological pricing ?

A

used to make price seem lower / more attractive than it actually is

95
Q

what is predatory pricing?

A

used by dominent businesses to reduce competition ( eg. loss leader) forces competitors out

96
Q

what is demand

A

the number of consumers willing and able to purchase a good or service at a given price

97
Q

what is supply

A

the number of goods and services producers are willing to sell at given time

98
Q

what is equalibrium

A

state of equality/ balance between supply and demand

99
Q

shortage in market

A

where demand is higher than quantity supplied

100
Q

surplus in market

A

where demand is lower than quantity supplied

101
Q

elastic

A

response in demand from a change in income/ price that is greater.

102
Q

glocalisation

A

conducting business according to both global and local considerations.

103
Q

what is trade liberalisation ?

A

-a country opening its borders to allow trade with other countries by decreasing trade barriers eg. high tariffs/ quotas

104
Q

what is political change ?

A

-the amount of political co-operation that exists between countries

105
Q

what is reduced cost of transport/ communication?

A

-cheaper transportation of goods has encouraged global trade

106
Q

what is increased significance of global companies?

A

larger MNC’s have greater ability to invest in other economies

107
Q

what is increased FDI?

A

investment into a foreign market by an MNC.

can lead to improved skill, knowledge and technology

108
Q

what is migration of workers?

A

people ≥∫

business studies (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions