Unit 1 AOS 2 KK3

Question 1

Business model

Answer 1

The way in which the business will run its operations to generate a profit. As circumstances change, the business model may need to be adapted

Question 2

Online business strengths

Answer 2

They exist solely on the internet
able to avoid expenses associated with brick and mortar such as rent and wages
Increases accessibility

Question 3

Online business disadvantages

Answer 3

may be higher number of dissatisfied customers since they haven’t seen the product in real life.
Businesses may expose customer across the globe

Question 4

Types of online businesses

Answer 4

Advertising-based websites, Freemium, Brokerage, Merchant

Question 5

Advertising-based websites

Answer 5

Free public access and generate revenue through advertising

Question 6

Freemium

Answer 6

Some applications such as spotify attract large customer base with free service offers

Question 7

Brokerage

Answer 7

Websites such as eBay brings buyers and sellers together in exchange for a fee when a sale is made

Question 8

Merchant

Answer 8

Online sellers who operate through their own independent website

Question 9

Brick and Mortar

Answer 9

A physical location such as a store in a shopping centre

Question 10

Brick and mortar disadvantages

Answer 10

Far more expensive to establish and maintain
Many f these businesses have to adapt their busines model to stay competitive
harder to compete

Question 11

Bricks and Mortar strengths

Answer 11

Customers are able to see the products in real life
Better customer connection

Question 12

Direct to consumer business

Answer 12

businesses that sell their products directly to consumers without any intermediaries such as retailers or wholesalers

Question 13

Features of DTC

Answer 13

can take form of bricks and mortar and online retail businesses, they have a strong focus on connection with their customers, which leads to customer loyalty

Question 14

Advantages DTC

Answer 14

lower costs
strong connection to customers

Question 15

Disadvantages DTC

Answer 15

can be time consuming and less efficient than selling to retailers, business relies on online selling
if businesses rely on online websites they are at risk of exposing customer credit information

Question 16

Franchising

Answer 16

The business owner (franchisor) grants another (franchisee) the right to use their trademark or trade name, business systems, and processes
All franchisees should sign a legal document

Question 17

Franchising advantages

Answer 17

Already have a well-recognised name
Don’t have to build your businesses reputation from the start

Question 18

Franchising disadvantage

Answer 18

you need to pay a fee, need to follow the franchise model can’t make it to your taste.

Question 19

Import and Export

Answer 19

Imports are goods and services produced overseas and sold to australian consumers. Exports are goods produced in Australia and sold overseas

Question 20

Imports features

Answer 20

Importers source goods from overseas that will be competitively priced on the Australian market due to quality, cheaper production cost, lack of visible alternatives. THey need to factor in shipping distributions and taxes on imports known as tariffs.

Question 21

Import and Exports advantage

Answer 21

cheaper cost of productions
access to products that are not available locally

Question 22

Import and exports disadvantage

Answer 22

Need to ensure the goods and services meet Australian standards
Foreign exchanged