Theme 1: Investigating a small business Flashcards
Theme 1.1.1: Why do businesses come out?
Changes in technology, Changes in consumer taste, Products and services becoming obsolete.
Theme 1.1.1: What is the difference between a want and a need?
A want is something we wish to own and a need is an essential item.
Theme 1.1.1: How do businesses come out?
Original Ideas, Adapting existing products/ services/ ideas
Theme 1.1.2: Why do businesses fail?
Bad Pricing, Weak Marketing, Poor Location
Theme 1.1.2: Name 3 risks with starting a business.
Financial Loss, Lack of Security, Business Failure
Theme 1.1.2: Name 3 rewards of starting a business.
Business Success, Keep all profits, Independence
Theme 1.1.3: What are some characteristics of a successful entrepreneur?
Takes the initiative, Organises Resources, Makes an investment, Goes Ahead, Understands and calculates risk.
Theme 1.1.3: What is the purpose of business activity?
To produce goods and services, To meet customer needs successfully.
Theme 1.1.3: Name some ways to add value to a product/service.
Build a strong bond, Offer a unique selling point, Deliver excellent customer service, Provide a high quality product, Provide a well - designed product.
Theme 1.2.1: Name the 4 main customer needs.
Price, Quality, Choice, Convenience
Theme: 1.2.2: What is the purpose of market research?
To gather information to reduce the risk of failure.
Theme 1.2.2: What is the difference between Primary and Secondary research?
Primary Research is data collected first hand for a specific research purpose. Secondary Research is data that already exists that has been collected for a different purpose.
Theme 1.2.2: What are some examples of Primary and Secondary research?
Primary Research: Focus Group, Questionnaire, Survey
Secondary Research: Internet, Market Reports, Government
Reports
Theme 1.2.2: Name 1 benefit and 1 drawback to Primary Research.
Benefits: Directly focused to research objectives
Kept private so competition can’t access
More detailed insights particularly into customer views.
Drawbacks: Time consuming and expensive
Risk of survey bias
Supplying may not be representative of the whole
population.
Theme 1.2.2: Name 1 benefit and 1 drawback to Secondary Research.
Benefits: Often easy to obtain
Good source of market insights
Quick to access and use
Drawbacks: Can quickly become out of date
Not tailored to business needs
Specialist reports are often quite expensive.