502225
Description
Flashcards by katiehumphrey, updated more than 1 year ago
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Created by katiehumphrey
about 10 years ago
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| Question | Answer |
| value added | the increase in the benefits of a good or service which are created at each stage of production |
| how is value added | convenience and speed good design high quality brand name USP celebrity endorcement |
| importance of added value | added value is a necessity: it pays wages, bills and generates profit for future growth |
| target market | price product place promotion |
| entrepreneur | a person who is prepared to take a risk to make the idea for a business work |
| qualities of an entrepreneur | risk taker independent understanding ambitious confident |
| motives for starting a business | challenge own boss freedom finance |
| primary research research you carry out | secondary research research that has already been done |
| market research | the process of gathering information about consumers and competitors and distributors within a firms target market |
| market mapping: a grid that measures two different aspects of the brands within a market - identifies gaps in market and shows overcrowded areas |
Image:
market-map1.gif (image/gif)
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| benefits of competition to consumers | forced to offer good products/services bring innovative products/services |
| drawbacks of competition | cut costs by cutting staff price cuts unethical practices |
| market segment | sections of the market focusing on specific customer types |
| market share | one brand sells as a % of all sales in the market |
| factors affecting location | cost market customers competition infrastructure staff site facilities |
| franchise | arrangement in which an established business name is sold to an individual or company who can then trade under that brand e.g McD's |
| invention | having a totally original idea and showing how it can work in theory |
| innovation | putting a new idea into practise - bringing it to market |
| patent | makes it unlawful for anyone to copy your idea |
| copyright | creations in writing/drawing/music are protected by copyright law |
| selling price of a product falls | more supply and less demand |
| selling price of a product rises | less supply and more demand |
| revenue | the money a business gets from selling its goods or service (sales turnover) |
| sales volume | number of sales by a company over a period of time |
| variable costs | costs that vary with the quantity sold |
| fixed costs | costs that don't change as output changes |
| total costs | fixed + variable |
| profit | revenue - total costs |
| cash flow forecast | prediction of the future flows of money in and out of the business for a specified amount of time |
| inflows | sales investors bank loan shares grants |
| outflows | bills wages suppliers insurance materials taxes loan |
| insolvency | a business has an inability to repay debts |
| improve cash flow | cut stock levels increase credit from suppliers |
| business plan | formal document setting out a new business idea and how it is planned to make a success |
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