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business mock revision paper 3 > runthrough > Flashcards

runthrough Flashcards

1
Q

market size

A

value of all sales within a market

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2
Q

market share

A

proportion of total market business holds

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3
Q

mass market

A

aimed at large groups of buyers
often acheive EOS
more compeittion
higher market size
have to focus more on bradning to be recognised

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4
Q

niche markets

A

aimed at specific buyers with specific requirements
e.g moofree choclotae
high makret share

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5
Q

adv of mass market

A

EOS
can make things cheaper
higher sales volume

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6
Q

dis of mass market

A

more competition
constantly having to keep up with compeitors
need a lot of capital

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7
Q

adv of niche market

A

less compititon
can charge higher prices

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8
Q

dis of niche market

A

more risky/narrower range of consumers
change in market could easily affect business

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9
Q

market size

A

value of sales in a market

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10
Q

market share

A

porportio of makret business holds

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11
Q

reasons dynamic markets may have to change in fashion industry

A

makrets that constanly ahve to change due to

changes in preferences-changes in fashion trends, advancements in technology

innovation-new products pr processes emerging. may grow for some and may decline for others

ways in which e.g more shopping online

compeitors entering and leaving the markets

changes in income-more disposable income wanting to buy more, less income rather save then spend
e.g prinark
high incoem e.g gucci, louis vuriton

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12
Q

what is online retailing

A

selling via the internet

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13
Q

adv of online retailing

A

can change lower prices as costs are reduced e.g no need for shop, less staff to pay

consumers can shop anyywhere they want

consumers can esily compare priecs and get cheapest one

e.g vinted coming in allowing people get second hand and much cheaper

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14
Q

dis of online retailing

A

consumers can easily compare prices so businesses have to make sure their prices are low

delivery costs, often cost more for delivery

second hand shops making more compeititon

have to have staff trained

consumers may want face to face encounter when purchasi a big item/may want to see it first

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15
Q

direct compeittion

A

two businesses sell similar products to same market
e.g supermakets asda and lidl

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16
Q

indirect competiton

A

two businesses sell different porducts but to same market
e.g takeawy chineses and indian

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17
Q

marketing mix within fashion industry

A

product-high quality, materials
is it worth the price

place-locate where a lot of conusmers will be located
easy for them to access e.g online shopping

promotion-advertising
using difefrent role models/celebrity endorsement e.g victoria backham
idolise that person and want to look like them
using insta reels videos of them actually wearing the items
using different body types/less discrimiation
making it more diverse/equal
weakening body standards

price-making it low to competitiosn
making it high to lookk better quality
penetration pricing-low to high

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18
Q

risks

A

something that could go wrong e.g risk the clothing collection wont be popular

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19
Q

uncertaintires

A

unexpected events
e.g hurricane
enbviromental effects
changes in income

CAN NOT PREDICT

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20
Q

product oreintation

A

focuses more on design of a product rather then the market/who they are selling too

e.g Gucci comes out with random designs

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21
Q

market orientation

A

business focuses more on market liking them
may do makret research
care less about prodcuts and more about if their consumers will like it
e.g Shein

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22
Q

market research

A

collection and analysis of market info

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23
Q

primary research

A

first hand data/business gathers new data

e,g questionaries and surveys

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24
Q

secondary research

A

using data thats already avaibliae e.g magazines, books

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25
Q

adv of primary research

A

speciifc for its purpose
exclusive so competitors can not benefit from it

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26
Q

dis of primary ersaerch

A

labour intesnive-slow production if having to make research
time consuming
expensive

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27
Q

adv of secondary research

A

quick
cheaper to get hold off

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28
Q

dis of secondary research

A

may be out of dare
not specifc for purpose

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29
Q

what is represnative sample

A

when people used rtaher then whole makret
keep costs down
saves lot of time ans resoruesces
represnt the whole market

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30
Q

market positioning

A

involves market mapping
shows two extrmees of measures that are imporant to customerrs

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31
Q

adv of market mappign

A

can help a business find a gap in market

show a business who closest compeitors are

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32
Q

dis of market mapping

A

subjective/based off opinion

simpligy things too much

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33
Q

comeptitive advanateg

A

a condition which allows a firm to generate more sales and be more profitable then its rivals

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34
Q

wyas to get a competitive advantage

A

good branding/distinctive
lower picres
producti innovtion
advertisng and makreting
good customer servcie!!!

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35
Q

adding value calcualtion

A

price product is sold for-cost of making product

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36
Q

factors which influence demand

A

consumer income-higher income can increase demand
lowerr income reduce demand

fashion, customer tastes and preferneces

advertsiing and branding stop demand falling as cutomer grows brand loyalty to that company

external shocks-extreme wether
flooding of warehouses

study tip: FACE

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37
Q

factors which influence supply

A

costs of production-costs of producio increases fall in supply as making less when preoducing/less prfiut

indirect taxes-taxes on goods and services

subsidy-money given to a business by government

new technology-increase supply asa more fefcient ways of produing, lowering cotss

external shocks-supply increases for war

study tip: CISNED

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38
Q

price elasticity of demand

A

how much the price affects the demand

percentage change in quanity demanded divided by percentage in price

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39
Q

income ealsticy of demand formula

A

percentage change in qualnitity demanded divied by percentage change in come

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40
Q

marketing mix

A

price
product
place
promotion

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41
Q

design mix

A

function
aesthetics
costs
e
study tip:face

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42
Q

how can fashion indutsry make sure function of their product is good

A

is it fit for purpose?

function-having pockets so more useful
is it comfrtable material
does it wash well?

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43
Q

how can fashion industry concern the aestehtics of their products

A

does it look good
is it made of good materrials
is it difefrent from evrything else/different pattern

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44
Q

how can fashion industry concern cost for their product

A

making their costs low, that wya can buy in bulk, achieve EOS

make costs high, maes their product look more luxiroisu

attract more high income consumers

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45
Q

what are the 3 types of branding

A

manufacturing branding

own branding

product branding

study tip: MOP

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46
Q

product branding

A

speciifcl individual products that a cooperate brand makes
own logo e.g rice crispies is apart of kellogs
but kellogs sign at the bottom

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47
Q

own branding

A

brands that are in-house to a supermarket or retailer

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48
Q

adv of own branding

A

cheaper alternatives
cheap to make and dont have distinctive logo

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49
Q

dis of own branding

A

cant charge high prices
may consider as lower quality

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50
Q
A
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51
Q

emoitonal branding

A

branding matcheed to values and aspirations of consumer to trigger an emotional response

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52
Q

name all the pricing strategies

A

price skimming
cost-plus
predatory pricing
penetration pricing

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53
Q

price skimming

A

high to low

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54
Q

penetration pricing

A

low to high

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55
Q

cost plus prcing

A

perceatge to make product is added to product its charged at

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56
Q

predatory pricing

A

price product below or equal too compeittion to push them out of market
then increase it again once they leave

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57
Q

what is a channel of distribution

A

route a product takes from manufacatrurer to consumer

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58
Q

what do wholesalers do

A

buy goods from manufacturers in bulk
sell them in smaller quanitites to retailers
manufacturers don have to wait or consumers before they can get some cash

make distribution simplier
without wholesalers, manufacturere would have to make spearte deliveres to retailers

act as retailes storage cupboard

59
Q

what are the three channels of distribution called

A

direct (two stage channel)
indirect (three stage channel)
indirect (four stage channel)

60
Q

direcet selling (two way channel)

A

using onlien retailung

using internet to sell directly to consumers

61
Q

indirect selling (three stage channel)

A

manufactueres-retiler-consumer

62
Q

indirect selling (four stage channel)

A

manufacturer-wholealer-retialer-consumer

63
Q

what is buying and selling on the internet called

A

e-commerce

64
Q

what is multi-channel distribution

A

sell online and in store
allows to tagrt wider market
dis-cots

65
Q

product life cycle

A

Development
Introduction
Growth
Maturity
Decline
study tip: DIG MD

66
Q

development stage

A

research and development stage
do market research
costs are high, sales do ot yet cover costs
has high failure rate

67
Q

introduction stage

A

where product is launched
business promotes heavilty to gain sles

has to pay off foxied cost of devlopment before product can camke prift

68
Q

growth stage

A

sales grow fast
new customers and repeated customers
product is often improved or developed and tagreted at different segments

69
Q

maturity stages

A

sales reach a peak
saturdation, maket is full and reached max growht
sales may start to drop

70
Q

decline stage

A

product doesnt appeal to customers anymore

sales fall rapidly
profits decrease

71
Q

extension strategies

A

ways to increase a products life cycle

promoting
product devlopment, improving or redesigning products

72
Q

boston matrix contrinas what 4 things

A

star
quesion mark
cash cow
dog

73
Q

quesion marks

A

all new products
small market share high makret growth

74
Q

cash cows

A

in maturity phase
high market share low market grwoth

75
Q

satrs

A

high makret share and high makret growth
in growth phase

76
Q

dogs

A

low market share and low market growth

77
Q

taylors

A

broke work down into small repetrive tasks
believed in paying workers according to the quanitity they produced
beleived finaical incentives would motivate workers most

78
Q

herzbergs two factors theory

A

hygeine factors-wokring condidtions
if not good, workers get dissatisfied

motiavting factors e,g interesting work, recognition

79
Q

mayos human relation theory of motivation

A

one group wored in same working condiditons
another groups working conditions changed
one with changes even if bad, were more motiavted
wokred together, producitvity increased

80
Q

peer to peer lending

A

lending money online

match borrowers with lenders

81
Q

crowd funding

A

raising money using internet
put idea up
made public so anyone can seeee them and donate if like it
then will get discouts

dis-if it doesnt go well, reputation may be damaged
can easily be copied by other businesses
adv-increases sales

82
Q

overdrafts

A

where bank lets a business have negative amount in bank accoutn
adv-easy to arraange flexible

dis-interest

83
Q

business plan

A

a document that outlines a business aims and objectives and how they are planning to acheive them

sales forecast

84
Q

sales forecasts

A

predicting future sales reveue and volume based on past sales data

85
Q

external factors which may affect predicting sales/make it tricky

A

consumer trends-sometimes more predicatble e.g increase for demand of coats will go up in winter rather then summer

also uncertain-people may become more aware about enviroemnt andd will want ethically sourecd matierals out of their clothes e.g doc martens demand reduced

eocnomic varbailes-changes in interest rates,, inflation
people have more disposbale income to want to buy more

actions of compeitions-compeitior reduces price and launches new product, sales could be lost

86
Q

dis of sales foecasts

A

much harder for fashion industry as very dyanmiac/consuemr preferences and trends consistely changing

factors affceting sales are consistenly changing

87
Q

sales volume

A

sales revenur divided by selling price

88
Q

fixed costs

A

costs which dont change with output

e.g salaries, rent

89
Q

variable costs

A

chamge with output
e.g raw material costs

90
Q

gross profit formula

A

revenue-cost of sales

91
Q

operating profit

A

gross profit-other operating expenses

92
Q

net profit

A

operating profit-interst

93
Q

gross profit margin

A

revebue divdied by gross porift times 100

94
Q

operating profit margin

A

revenue divided by operating profit tiems 100

95
Q

net profit margin

A

revenue divided by net profit times 100

96
Q

statement of comprehensive income

A

shows how much money coming in and how much going out

97
Q

how are pofit and cash not the same

A

cash-what you have in hadn for day to day spending

profit-can sell something andd not get profit till ages after

business thats making kots of profit may still run out of cash

98
Q

statements of financial position

A

lists assests and liabilities

99
Q

curent assets

A

likely to excahneg within a year

100
Q

non-curretn asste s

A

keep for longer the eyar

101
Q

current liabilties

A

give back within a year

102
Q

non-current liabiltes

A

dont give back within a year

103
Q

what are debts

A

never payed back

104
Q

liquidity ratios

A

show how quickly miney is avalible to pay for bills

105
Q

current ratio

A

curreent assets divided by current liabilties

106
Q

acid test ratio

A

current assests-inventory divided by current liabaiites s

107
Q

workign capital

A

amount of money for day to day spending

108
Q

working capital formula

A

current assets MINUS current liabilties

109
Q

what are all the types of production methods

A

job
batch
flow
cell

110
Q

job producion

A

making one off items produced by skilled workers

adv-can change higher prices

dis-time consuming
cant buy in bulk
pay high wages
staff need to be trained

111
Q

flow production

A

indentical prodcust produced down an assmeblt line

adv-can operate 24/7
quick
no stoppages
EOS

dis-if stoppage, producion is compelety slowed down
boring for workers

112
Q

batch producion

A

identical products are madde in one bulk

adv-

113
Q

lean production

A

effiecientform of production that focuses on waste minimisation

using as few resources as possible

recycling or reusing matierals in house to minimise waste

114
Q

adv of lean production

A

good compeitiev advanateg
good repuation

115
Q

perfect competition

A
116
Q

organic growth

A

growing form within a business

117
Q

adv of organic growth

A

less risky

can maintain management stles, culture and ethics

easier to manage as have more control

producivity reimns high as less disruptive changes

118
Q

dis of organic growth

A

take long time to grow

miss out on opportunities for ambitious growth

slower
less EOS

rivals may grow faster inorganically

119
Q

inorgnic growth

A

growth from outside the business e.g mergers and takeovers

120
Q

adv of inorganic growth

A

synergy-double everything

more staff

EOS

fast

121
Q

dis of orgnica grwoth

A

grow to fast-diseconomeis of scale
job insceurity increases/decreases motivation and increases motivation
culture clashes
costs
increased risk
moevemtn of workplace
havign to change hpw you operate
change communciations

122
Q

mission statement

A

tells you about a businesses intentions

123
Q

cooperate objectives

A

overall aim as business as a whole

124
Q

departmental objecitves

A

aim in just that department

125
Q

objectives should be SMART

A

speciifc
measurbale
agreed
releastic
time bound

126
Q

ansoff matrix

A

market penetration
product devlopment
market devlopment
diversification

127
Q

market penetration

A

lowest risk
increasing market share in existing market
e.g advertising

128
Q

product development

A

selling new products in exisitng makret

129
Q

market devlpemny

A

selling existic products to new makret

130
Q

diversification

A

sellign new products to new makrets
most risky

131
Q

porters three generic strategies

A

cost leadership-lowest cost of production
differentiation-having unique attributesz
focus-in between
concentrates on niche markets either lowering costs as much as psosible or focuing on difefrentiation

132
Q

kays capabiltieis

A

Archeticture-relationships with stakeholders e.g customers
Reputation-having good customer service
Innovation-USP competitive advanatge
E
S

133
Q

SWOT analysis stand for

A

strangrhs
weakness
opportunities
threats

134
Q

Pestle analysis

A

POLTICIAL
ECONOMICAL
SOCIAL
TECHNOLPGICAL
LEGAL
ENVIROMENTAL

135
Q

POLITICAL

A

policy of taxation

136
Q

inorganic growth adv

A

access to new techonolgoies

more staff

synergy

EOS

137
Q

inorganic dis

A

transport
job insecurity increases
change the way they work
culture clashes
disagreements
dieconomies of scale-grow too fast

138
Q

what is disecnimes of scale

A

when unit costs increase as scale of production icnreases

may be due to losing control when growing inorgnically/too fast

staff having to learn new procedures, lead to poor customer servcie,lead to loss of sales

139
Q

effects of MNCS

A
140
Q

what is a MNC

A

compney that operates in several counteries

141
Q

adv of MNCS

A

can create jobs

increase in local empolyment, increases standards of living espeiclly for lower income as can have better pay, wokring conditions etc

need to be good at movig as fashion industries are dynamic, constantly changing

142
Q

dis of MNCS

A

may take advantge of low income counteries making them work in bad condidiots

143
Q
A

business mock revision paper 3 (5 decks)

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