Topic 1.1.1 Dynamic Nature of Business

Question 1

Why might new business ideas come about?

Answer 1

Changes in technology

Changes in what consumers want

Products and services becoming obsolete

Question 2

What is a product?

Answer 2

A product is anything that is
capable of satisfying
customer needs.

Physical products:

Cars

Washing machines

X box consoles

Mobile phones

Question 3

What is a service?

Answer 3

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

Dental treatment

Accountancy

Travel agents

Gardening

Cleaning

Hairdresser

Question 4

Changes in technology: Amazon

Answer 4

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 5

Changes in technology: Amazon

Answer 5

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 6

Changes in technology: eBay

Answer 6

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

Question 7

Changes in technology: Stadia

Answer 7

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

Question 8

Changes in technology: robotics

Answer 8

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

Question 9

Wants and needs: Social media

Answer 9

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 10

Wants and needs: ready meals

Answer 10

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

Question 11

Wants and needs: “Free from”
foods

Answer 11

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

Question 12

Change in tastes and trends

Answer 12

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

Question 13

Definition: Obsolete

Answer 13

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out of date.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 14

Obsolete services

Answer 14

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

E.g. Getting film
developed or Video
rental services

Question 15

Definition: Original ideas

Answer 15

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 16

Original ideas – solve problems

Answer 16

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 17

Original ideas – gap in the
market

Answer 17

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 18

Original ideas – carried out
research

Answer 18

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 19

Adapting existing ideas

Answer 19

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.