POB studying Flashcards
what is production
the process of using materials and transforming in a way to produce goods and services for the needs of customers
Identify 2 factors of production using the manufacture of goods and production of services
Land and labour
Define the term capital
resources used by a business such as machines and equipment used in the production of goods and services
what is fixed capital and example
assets such as buildings machinery and computers which will be kept for a long time and used many times in the production process.
Long-lasting assets used repeatedly in production processes which includes buildings, machinery, and computers.
E.G
what is working capital and example
stocks of materials, goods and cash needed for the day to day running of the business
explain two factors that contributes to increase productivity within a business
Efficient use of resources: One factor that contributes to increased productivity within a business is the efficient use of resources. This means effectively utilizing the available resources such as raw materials, equipment, technology, and human capital.
Employee motivation and engagement: Another factor that significantly contributes to increased productivity is employee motivation and engagement. When employees feel motivated and engaged in their work, they are more likely to perform at a higher level and put in extra effort to achieve organizational goals.
explain 2 ways in which increase of productivity makes an advantage of a small business
cost saving : when a small business improve its productivity it can achieve cost saving by reducing waste and optimizing resources, a business can reduce its operational expenses
improved customer satisfaction, higher productivity often leads to customer satisfaction, satisfied customers are mostly likely to be repeat customer or refer others and create growth opportunists and increase sales in a small business
explain hire purchase and layaway
Hire purchase is a type of installment plan where a buyer pays for a product or service in regular installments over a specific period of time.
Layaway is a way to buy something through installments. The buyer reserves the item with a deposit and pays the full price over time.
- describe 2 factors that influence the spending behavior of consumers
describe the links and trade distribution for the products
getting the right product to the right consumer at the right time in a way that is most convenient to the customer is a good definition of distribution. the term often used to refer to all business involved in getting product onto the shelf the - manufacture wholesaler, transporter and retailers are a is the supply chain
state 2 methods of promoting sales
Advertising: This includes using various mediums such as television, radio, print media, online platforms, and social media to create awareness and generate interest in the products or services.
- Sales promotions are temporary incentives like discounts, special deals, or added value to motivate customers to buy. Examples include buy one, get one free offers, limited-time discounts, loyalty reward programs, free samples, contests, and giveaways. They are used to boost sales during specific periods or clear out excess inventory.
define the term brand name
an identifying symbol, colour, name, image or trade mark that distinguishes a product from those of its competitors
what are the form of packaging
state 2 purposes of packaging
to protect the product and ensure it is received by the costumer undamaged and in one piece
suitable for easy handling and transportation
outline the 2 methods which vendors could implement to promote sales
advertising, sales promotion and discounts
describe 2 techniques using selling
Upselling is a technique where vendors encourage customers to purchase a higher-priced product or upgrade their existing purchase.
Cross-selling involves offering customers additional or complementary products that go well with their initial purchase.
explain 2 ways in which the existence of copyright law is likely to influence the actions of the visible consumers
customer purchasing behaviour: the existence of copy right law influence the action of visible of consumers impacting their purchasing behavoiur. copy right law protects the rights of authors, artists and creators by granting them exclusive rights to their creations
copy right law encourage people to find creative alternative than relaying on copyrighted content. this can motivate them to create their own original work
outline 2 function of small business
Economic contribution: Small businesses play a vital role in the economy by creating jobs and driving economic growth. They often provide employment opportunities for local communities
Local community support: Small businesses often have a strong connection to the local community in which they operate. They tend to understand the unique needs and preferences of the local population .
explain 2 benefits associated with growth of a business
Business growth can lead to increased profitability because it allows the business to access new markets and reach a larger customer base, resulting in higher sales. a larger business can benefit from economies of scale.
As a business expands and gains more visibility, it can improve its brand recognition and reputation. This leads to increased customer attraction and loyalty.
explain 2 challenges associated with the growth of the business
Scalability is the challenge of expanding business operations to handle increased demand. It requires investing in resources, infrastructure, and workforce for growth.
Maintaining brand reputation becomes challenging as businesses grow. Increased brand recognition raises customer expectations, and failing to meet them can lead to negative reviews and a damaged brand image.
explain backward linkage
Backward linkage refers to when an industry uses products from earlier stages of the production chain. For example, the oil extraction industry acquiring equipment from oil-drilling rig manufacturers.
explain forward and example
Forward linkage occurs when an industry’s products are used by businesses further ahead in the production chain. For instance, when processed foods like canned fruit are supplied to the retail industry.
2 characteristics of cotton industry
outline 1 disadvantage of small business
Small businesses struggle with limited financial resources, which hampers their investments in technology, equipment, and marketing
list 4 marketing activities
advertising, sales promotion, distribution, pricing, branding, packaging, market research
outline 4 elements of the traditional marketing mix
product, price, promotion,place
differentiate between capital intensive production and labor intensive production
capital intensive production methods using more capital equipment than other factors of production such as labour equipment while labour intensive production uses more labour equipment than other factor of production such as capital equipment
explain 2 ways in which packaging gets in the marketing mix
Packaging is an important component in presenting and showcasing a product to customers. It visually communicates the brand identity, product features, and benefits.
Packaging serves the purpose of protecting the product during transportation, storage, and handling.
