Business Studies

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Unit 1
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Flashcards by vickylma, updated more than 1 year ago
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Business Unit 1 :)
Businesses What is a business? A business is an organisation whose purpose is to produce goods and services to meet the needs of customers.
What things do you need to think about when setting up a business? How will the business be financed What is required to get it up and running? What products will be sold?
What is a supplier? A business that sells (supplies) products to another business
What is production? Using raw materials, labour, and machinery to make products
Define what a customer is? A person or organisation that buys the product or service
What is a consumer? The person that uses (consumes) the product
Primary research? Collecting data that did not exist before
Examples of primary research? Surveys Focus groups Observations Questionnaires
Secondary research? Collecting data that already exists
Examples of Secondary research? Internet research Books Local newspapers Sales data
What can market research tell a business? What features customers want How much they are willing to pay Where they shop Who the main competitors are
Advantages of Primary research? More accurate Up to date Specific to needs Effective to collecting qualitative data Direct customer contact
Advantages of Secondary research? More general Less time consuming Effective at collecting quantitative data
Qualitative data? Information about opinions, judgement's and attitudes
Quantitative data? Data that can be expressed as numbers and statistically analysed
Market mapping? Helps businesses to identify market segments and position their products through identifying gaps in the market
Market segments? A group of buyers with similar characteristics and buying Splitting up the market in different categories
What ways can a market be segmented? Age Gender Income Lifestyle Life-stage
What are the benefits of market segmentation? Meets specific customer needs Differentiate their products focus on a specific group of people Target marketing actively
Market map? A diagram an used to position and compare products in a market and identify opportunities where customer needs are not being met
Ways to compete? Wider product range Higher quality Better product features Stronger brand image
Branding? A brand is a named product that customers see as being different from other products and they can associate or identify with. A company or product can develop a unique brand image that customers associate them with
Added value? It is the increased worth that a business creates for a product it is the difference between what a business pays its suppliers and the price that it is able to charge for the product
Ways to add value? Unique selling point Branding Better design Greater speed of service
The importance of added value? The higher the added value the sooner the costs can be paid off, so its quicker for the business to make profit. More chance of survival Long term growth
USP? A USP is another way to add value to a product. A USP will also help a business compete
Franchise? It is the right given by one business to other businesses to sell goods or services using its name. The business that buy into franchise remain independent businesses
What do franchise get when buying into business? The established brand name Training Equipment Access to goods and services
Benefits of franchise? Higher chance of survival Brand image and reputation established Tried and tested products Specific support and training provided
Drawbacks of a franchise? Start up costs expensive Lack of control Limited flexibility
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