Unit 1 Flashcards
What should a business consider when setting up?
Is there a business opportunity?
How will the business be financed?
What is required to get the business up and running?
What legal aspects have to be considered?
What products or services will be sold and to whom?
What is a supplier?
A business that sells and supplies products to another business
What is production?
Using raw materials, labour and machinery to make products
What is a customer?
A person or organisation that buys the product or service
What is a consumer?
The person that uses and consumes the product
What is the market?
Where buyers and sellers meet to exchange goods and services
What are most customer needs based on?
Good quality Good product range Convenient location Good customer service Fair price
What is primary research?
Also known as field research it is collecting data that did not exist before.
This first-hand contact with customers is valuable to the business in understanding the market
What is secondary research?
Also known as desk research it is collating data that already exists
How is primary research collected?
Survey
Focus groups
Observation
Questionnaires
How’s secondary research collected?
Internet sites Sales data Local newspapers Market reports Government statistics
What are the benefits and drawbacks of primary research?
Benefits: More accurate Up-to-date Specific to the needs Direct customer contact
Drawbacks:
Time-consuming
What are the benefits and drawbacks of secondary research?
Benefits:
Quicker
Effective are collecting quantitative data
Drawbacks:
More general
Everyone can access this data
What is qualitative data?
Information about opinions, judgements and attitudes
What is quantitative data?
Data that can be expressed as numbers and statistically analysed
What is a business?
An organisation whose purpose is to produce goods and services to meet the needs of customers.
A business might produce its own goods or buy them from a supplier and sell them to customers.
Why is market mapping used?
It helps to identify market segments and position their products through identifying gaps in the market.
A market map can help position and compare products in a market
What’s a market segment?
A group of buyers with similar characteristics and buying habits e.g. Gender.
What does market segmentation allow?
To meet specific customer needs To differentiate their products To focus on a specific group of customers To target marketing activity Develop own unique brand image To build a close customer relationship
How can a business compete
By offering... High quality Better design Better product features Stronger brand image Better after sales service Wider product range More enjoyable experience
What is a brand?
I named products that customers do you see as being different from other products and that they can associate or identify with.
What’s added value?
The increased worth a business creates for a product.
The difference between what a business pays it’s suppliers and the price that is able to charge for the product.
This can be done by lowering costs or adding something which makes customers willing to pay a higher price.
How can value be added?
Branding Improve quality Better design USP More convenience Greater speed
The higher the added value, the quicker costs can be paid off and the quicker profits are made
What are the benefits of setting up as a franchise?
Having an established brand name with a good reputation Higher chance of survival National advertising and promotions Ongoing support Training
Disadvantages of starting out as a franchise
Expensive start up costs
Royalty payments
Lack of control
What are the three main enterprise skills?
Risk taking
Showing initiative
Willingness to undertake new ventures
What is enterprise?
Another word for business
Or
The ideas and initiatives involved in starting a new business. They may provide goods or services.
What’s deliberate creativity?
Intentional creation of new ideas through recognised and accepted techniques e.g. Creating lists, mind mapping, brainstorming, combining things, making it bigger/smaller.
What’s blue skies thinking?
Coming up with as many ideas as possible out of the blue to solve a problem.
What’s lateral thinking?
Thinking differently to try to find new and unexpected ideas e.g. By using De Bono’s size thinking hats.
What questions should they ask?
Why do I want to start my business?
Why should I change?
Why not set up a website business?
What’s a patent?
Right of ownership of an invention, design or proves when it’s registered with the government.
What’s copyright?
Legal ownership of material such as books, music, films etc which prevents these being copied by others.
What are trademarks?
The logo, symbol, sign or other features of a product or business that cannot be copied by others.
What’s invention?
Identifying new products, processes or new ways of making products.
What’s innovation?
Bringing an invention to the market
What’s a calculated risk?
Putting a numerical value or probability on a risk and the likelihood of it coming true.
Weighing up the risks and rewards of a new business idea is important in judging the outcome and viability of a start up.
What are mind maps?
A method of getting ideas onto paper when thinking ahead, planning the paper and trying to identify new opportunities.
