the dynamic nature of business

Question 1

what is a product ?

Answer 1

anything which is capable of satisfying the customers wants and needs.

Question 2

What is a service ?

Answer 2

an act which is done by a business person for exchange for money

Question 3

what is a want ?

Answer 3

something someone would like to have and doesn’t need

Question 4

what is a need ?

Answer 4

A need is something you have to have to survive

Question 5

What does dynamic mean ?

Answer 5

dynamic means something which is always changing

Question 6

what is capital ?

Answer 6

money to invest in the business

Question 7

name a reason why business start up

Answer 7

being your own boss

Question 8

name a reason to complete a business plan

Answer 8

to obtain funding from the bank

Question 9

why do business have to adapt to new technology ?

Answer 9

as people expect more and make it faster and efficient

Question 10

why do new business ideas come about

Answer 10

from original ideas and from passion of the entrepreneur

Question 11

changes in technology amazon

Answer 11

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 12

changes in technology ebay

Answer 12

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

Question 13

Changes in technology: Stadia

Answer 13

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

Question 14

Changes in technology: robotics

Answer 14

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

Question 15

Wants and needs: Social media

Answer 15

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 16

Wants and needs: ready meals

Answer 16

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

Question 17

Wants and needs: “Free from”
foods

Answer 17

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

Question 18

Change in tastes and trends

Answer 18

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

Question 19

Obsolete

Answer 19

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out of date

For example we can make a product obsolete by
replacing it with something better

Question 20

Obsolete services

Answer 20

Some services are no
longer required because
of changes in
technology or new
inventions.Getting film
developed or Video
rental services

Question 21

Original ideas

Answer 21

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

This may be to solve problems

It may be because an entrepreneur has a passion or interest

A gap in the market may have been spotted

A business may have carried out some research into the
wants and needs of shoppers and be creating products to
meet those needs

Question 22

Original ideas – gap in the
market

Answer 22

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 23

Original ideas – carried out
research

Answer 23

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

They created a niche business which
makes tailored food to the dog’s age,
breed or medical condition and is
delivered to their door

Now TAILS.COM have 40,000 UK
customers

Question 24

Adapting existing ideas

Answer 24

A business could create a new product by:

Mix and match

New version of an old product

Cheaper version of an old product

Get ready to make some notes on these
methods on the following slides