term 1 revision Flashcards
What is Premium Pricing?
Setting a high price to reflect superior quality, exclusivity, or brand value.
What is Undercut Pricing?
Setting prices lower than competitors to attract more customers and increase market share.
What does packaging refer to?
The materials and design used to wrap or contain products.
What are the factors to consider for suitable production?
- Cost of materials
- Availability of resources
- Technology and machinery required
- Environmental impact
- Demand and supply
What is a Feasibility Study?
An assessment to determine whether a business idea or production method is practical, profitable, and sustainable.
What are ways to reduce carbon footprint?
- Using renewable energy sources
- Reducing waste and recycling materials
- Using energy-efficient machinery
- Sustainable transportation (electric vehicles, carpooling)
What are the requirements for good packaging?
- Protects the product from damage
- Is easy to open and use
- Is environmentally friendly
- Includes important product information
- Is cost-effective
What are examples of production start-up costs?
- Equipment and machinery
- Raw materials
- Labor costs
- Marketing and branding
- Rent and utilities
What is Product Specification?
A detailed description of the product, including its materials, size, and features.
What is Standardisation?
Ensuring that products meet a consistent quality and industry standards.
What is Sustainable Production?
Using methods that minimize environmental impact and waste.
What are Overhead Costs?
Ongoing business expenses such as rent, utilities, and salaries.
What is Non-Renewable Energy?
Energy sources that cannot be replenished in a short time, such as coal, oil, and natural gas.
What are the advantages of renewable energy for the environment?
- Reduces greenhouse gas emissions
- Does not deplete natural resources
- Promotes cleaner air and water
- Creates sustainable jobs
What are examples of renewable energy?
- Solar energy
- Wind energy
- Hydropower
- Biomass
- Geothermal energy
What are responsible uses of energy?
- Washing clothes in cold water instead of hot
- Using energy-efficient appliances
- Turning off lights and electronics when not in use
- Using solar water heaters instead of electric ones
Why is South Africa’s water quality decreasing?
- Pollution from industries and sewage
- Overuse of water resources
- Poor waste management
- Droughts and climate change
What are ways to use water efficiently?
- Installing water-saving toilets
- Watering plants early in the morning or late at night
- Fixing leaks and using water-efficient taps
What is a Target Market?
A specific group of consumers a business aims to sell its products or services to.
What is the importance of stock control of raw materials?
- Prevents shortages and delays in production
- Reduces waste and excess inventory
- Helps manage costs effectively
What are the stages in the production process?
- Idea generation
- Planning
- Sourcing raw materials
- Manufacturing
- Quality control
- Packaging and distribution
What is the importance of training staff?
- Improves efficiency and productivity
- Ensures consistent product quality
- Reduces workplace accidents
- Enhances customer satisfaction
What is the importance of product specifications?
- Helps maintain quality consistency
- Prevents defects and customer complaints
- Ensures compliance with industry standards
What is included in the Total Cost of Production?
- Raw materials
- Labor
- Machinery
- Overhead costs
