Paper 2 Missing Revision Cards Flashcards
Factors that decide location
Customers
Staff
Support services
Costs
How may a delivery-only takeaway locate itself?
A cheap location with good transport links
What is risk?
The chance of loss or damage
The probability that something goes wrong leading to a loss
When a hoped-for outcome doesn’t happen
Why a start up is risky?
Difficult to test a new idea without trading
Easy to be over-optimistic
Competitor response is often aggressive
Easy to underestimate the effort required to be successful
Main reasons why start-ups fail
Insufficient customer demand
Poor execution of a good idea
External shocks
Calculated risk
A risk that has been given thoughtful consideration and for which the potential costs and benefits have been weighted and considered
E-commerce
The buying and selling of goods using an electronic network such as the internet
E-commerce advantages
Limits geographical limitations
Cheaper property
Less employees
Higher capacity for selling
E-commerce disadvantages
Have to employ people to transport
Could be a long way to sell
Consumers trust you less
Advantages of personal selling
High consumer attention
Persuasive
Adaptable
Customised message
Disadvantages of face to face selling
Expensive
Labour intensive
Can only reach a limited number
What are stakeholders?
People with an interest in how a business does
What are owners managers and workers interested in?
Owners- profit
Managers- salary
Workers- wages and keeping their jobs
What are customers, suppliers and lenders interested in?
Customers- quality and price
Suppliers- keeping their products
Lenders- want all repaid in time
What may the community be interested in?
Noise Smell/pollution Business Disruption Employment
