unit 4 : business opportunites, responsibilites and risks Flashcards
market orientation
taking decisions on the basis of consumer demand
market research
the collection and analysis of information that relates to the consumption of products or services
primary research
the collection of information that does not already exist gained from different forms of field research
qualitative research
the gaining of information in the form of subjectinve data e.g. opinions and attitudes
quantitative research
the gaining of information in the form of objective data e.g. statistics
secondary research
the collection of information that already exists, gained from different forms of desk research
examples of primary research
questionnaires
observation
personal interviews
online surveys
focus groups
test marketing
examples of secondary research
sales figures
annual reports and accounts
websites
sources from:
government publications, internation publication, newpapers, magazines, journals
questions when decided the ability to meet consumer need or demand
labour = will there be enough employees? will they have the neccasary skills?
capital = new machinery and tools may be needed to meet the challenge of satisfying likley product demand
land = the location of the enterprise, does it need to be moved to a larger land
areas for expansion
new technology, research, development
changes in taste/fashion
changes in the size and structure of population
changes in real income
government policies
examples of risks an enterprise may deal with
not knowing precisely what consumers want because market research relating to a new product has not been released
if an enterprise has a gap in the market it may not mean the enterpise can be profitable
an enterprise may not be able to secure finance
they may not have the skills or expertise in their employees
choosing which risks to deal with
which risks you have most control over and develop a response strategy
risk optimizer
a person willing to accept a certain amount of risk in the interest of making significant profits
risk reducer
a person who wishes to reduce the amount of risk faced by an enterprise to reduce the likelihood of failure
risk avoider
a person who wishes to avoid any possibility of risk in order to ensure the continued existence of an enterprise
