the dynamic nature of business

Question 1

what is a product?

Answer 1

A product is anything that is
capable of satisfying
customer needs

Question 2

what is a service?

Answer 2

A service is an act that a
business person carries
out for you in exchange
for money,

Question 3

Changes in technology: Amazon

Answer 3

Since the invention of the
Internet in 1990 businesses
have found a new cheaper
way to reach the consumer,
by selling online

This is called e-commerce

Question 4

Changes in technology: eBay

Answer 4

Small businesses are now
able to set up and sell
virtually anything online due
to websites such as eBay,
etsy and ebid

Question 5

Changes in technology: Stadia

Answer 5

New technology innovation
means there are lots of new
products on the gaming
market

Question 6

Changes in technology: robotics

Answer 6

Advancements in robotics will mean dozens of new
products in the future.

Question 7

Wants and needs: Social media

Answer 7

Businesses can use social media to find out what consumers
want and need so that they can produce products and
services to meet those wants and needs

Question 8

Wants and needs: ready meals

Answer 8

We are all working more and have less time, so the
ready meal market is catering to these consumer
needs

Question 9

Wants and needs: “Free from”
foods

Answer 9

Consumers are also
demanding organic, free
range, sustainable, eco
friendly products as we
become more aware of our
impact on the environment

Question 10

Change in tastes and trends

Answer 10

Consumer tastes change over time which
means that a business is at risk if they don’t
keep up with current trends.

Question 11

Definition: Obsolete

Answer 11

Obsolete means a product that is no longer used or
out of date

Question 12

Obsolete services

Answer 12

Some services are no
longer required because
of changes in
technology or new
inventions

Question 13

Definition: Original ideas

Answer 13

Original ideas are ones that have not been used before to
put a product or service into production e.g. pet hotels

Question 14

Original ideas – solve problems

Answer 14

This is Art Fry – he
invented the post-it
note by accident

Originally it was called
the press and peel

It was yellow as he had
yellow paper to hand

He invented it to keep
the page open in his
hymn book

Question 15

Original ideas – gap in the
market

Answer 15

A successful business will be one
that spots an opportunity to
make a profit

This could be an idea that
no-one has thought of before –
for example Trunki luggage

The opportunity could be where
there are lots of businesses
already making a healthy profit

The entrepreneur may also spot
an opportunity to trade and also
make a difference to society –
this is called a social enterprise

Question 16

Original ideas – carried out
research

Answer 16

Vet Joe Inglis and 7 friends realised
that there were 8.5 million dogs in the
UK and 4 out of 5 owners treat the pet
as one of the family and want the best
food possible

Question 17

Adapting existing ideas

Answer 17

A business could create a new product by:

Mix and match

New version of an old product

Cheaper version of an old product