the dynamic nature of business Flashcards
what is a product ?
anything which is capable of satisfying the customers wants and needs.
What is a service ?
an act which is done by a business person for exchange for money
what is a want ?
something someone would like to have and doesn’t need
what is a need ?
A need is something you have to have to survive
What does dynamic mean ?
dynamic means something which is always changing
what is capital ?
money to invest in the business
name a reason why business start up
being your own boss
name a reason to complete a business plan
to obtain funding from the bank
why do business have to adapt to new technology ?
as people expect more and make it faster and efficient
why do new business ideas come about
from original ideas and from passion of the entrepreneur
changes in technology amazon
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
changes in technology ebay
Small businesses are now
able to set up and sell
virtually anything online due
to websites such as eBay,
etsy and ebid
Changes in technology: Stadia
New technology innovation
means there are lots of new
products on the gaming
market
Changes in technology: robotics
Advancements in robotics will mean dozens of new
products in the future.
Wants and needs: Social media
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
Wants and needs: ready meals
We are all working more and have less time, so the
ready meal market is catering to these consumer
needs
Wants and needs: “Free from”
foods
Consumers are also
demanding organic, free
range, sustainable, eco
friendly products as we
become more aware of our
impact on the environment
Change in tastes and trends
Consumer tastes change over time which
means that a business is at risk if they don’t
keep up with current trends.
Obsolete
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out of date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
Obsolete services
Some services are no
longer required because
of changes in
technology or new
inventions.Getting film
developed or Video
rental services
Original ideas
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
Original ideas – gap in the
market
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
Original ideas – carried out
research
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
Adapting existing ideas
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
