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Business Studies


10 Business Studies Flashcards on Business Studies, created by J Barnes on 09/08/2016.
J Barnes
Flashcards by J Barnes, updated more than 1 year ago
J Barnes
Created by J Barnes almost 6 years ago

Resource summary

Question Answer
Define creative thinking. When you think further or differently than you or someone else normally would.
Name five(5) things that can possibly build creativity. Postive response Motivation from other Opportunities Good problem-solving skills Overcoming fear
Name five(5) things that can possibly destroy creativity. Negative responses Poor self-esteem Influenced easily Laziness Bad organising skills
What are the five(5) business ventures? Location Contracts Business Opportunities Business Plan Research
What five(5) important steps are there to starting a business? 1. Do market research 2. Decide on an idea 3. Create a business plan 4. Develop a business plan 5. Create an action plan.
What six(6) question, relating to the external environment, must an entrepreneur ask before starting a business? 1. Will the potential customer interested? 2. Is there an existing market? 3. Are there any suppliers? 4. Are there any competitors? 5. Will my business impact the environment? 6. What are the legal requirements for my business?
Why must environment factors be included? To ensure the business does not make a profit at the cost of the environment.
Which seven(7) environmental aspects must be taken into consideration? Pollution Responsible use of resources Minimising waste Proper disposal of watse Impact on fora and flaura Management of dangerous chemicals Impact on community
How can business opportunities be identified? (3x1) 1. By doing market research 2.I dentifying consumer needs 3. SWOT analysis
What are the five(5) steps in identifying a business opportunity. 1.Find a gap in the market 2.Perform a SWOT analysis 3.Believe in your ideas 4.Be willing to work hard 5.Buy a business or start a new one.
What is a SWOT analysis? A SWOT analysis helps a business owner determine viabilities of the business.
What does SWOT stand for? S trenghts W eaknesses O pportunities T hreats
Name two(2) examples of Strengths that can be found when performing a SWOT analysis. Location of business Knowledge of the market New product or service No competitors
Name two(2) examples of Weaknesses that can be found when performing a SWOT analysis. Limited Human Resources High production cost Lack of capital
What is analysed when strengths and weaknesses are analysed? Name five(5). Owner Products Services Brands purchases Quality Price Internal factors
Name two(2) examples of Opportunities that can be found when performing a SWOT analysis. Develop new technology Have a sale Strategic alliances
Name two(2) examples of Threats that can be found when performing a SWOT analysis. Cheaper competitors New competitors A decrease in your target market
What is analysed when opportunities and threats are analysed? Name three(3). Competitors Political threats Cultural and demographical factors Social and economic factors
What is Market research used for? (4x1) Help business make informed decisions Help business promote Help determine the the potential target market Help determine target market
Name resources that can be used during the market research process. Surveys Questionnaires Clientèle Websites Media
What are the seven(7) steps to be followed in a market research process? 1.Determine the goal of your research 2.Determine the geographics of your market 3.Conduct telephonic or mail surveys 4.Collect information 5.Observe clientele in the business 6.Analyse your sales to determine the popularity of each product 7.Evaluate market strategy and make changes if necessary
Which factors should be taken into consideration when doing market research to determine target market? Name five(5). Age group Personality profile Income Gender Education Specific preferences
Name four(4) advantages of a SWOT analysis. Give insight to business opportunities Help enterprises identify threats Help focus strenghs Prevent weak points from becoming threats
What are the three(3) things to keep in mind when performing a SWOT analysis? Be realistic Be specific Be simple and to the point
What are the components of a business plan? Cover page Summary Content page(index) Description of the business Marketing Mix SWOT analysis
Which six(6) details belong on the cover page? Owner name Company name Company logo Address of the business Contact details of the business Date of preparation
What is in the content page (index)? A list of heading and different section of the business plan as well as any anatuxures.
What is the purpose of the summary? To attratct the atttention of the reader and to state the reason for the business plan.
What are the three(3)components of the description of the business? Goals, Mission and Vision Structure Product or service
What is the vision of the business? What the business wishes to achieve.
What is the mission of the business? How the business will achieve the vision.
What are the goals of the business? What the business wishes to achieve before a certain period of time.
Name the three(3) types of goals. (3x2) Short-term - up to one(1) year Medium-term - one(1) to five(5) years Long-term - five(5) years or more
What does the structure of the business entail? (5x1) The type of ownership Amount of owners Size and type of business To what extent the owners want control and legal protection Why this form of ownership was chosen
What must be included in the Product or Service section if the business is selling a product? (3x1) Product description Visualisation of product Product manufactoring process
Name the four(4) types of products. Convenience goods Select/shopping goods Speciality goods Industrial goods
What is a convenience good? Explain and provide a reason. A frequently bought product that is relatively cheap and little consideration is given to price and quality Example milk
What is a select/shopping good? Explain and provide a reason. A product consumers spend time choosing as quality and price are taken into consideration. Example furniture
What is a speciality good? Explain and provide a reason. A product consumers spend time finding and depends on brand orientation. Example Sissy Boy jeans
What is a industrial good? Explain and provide a reason. Goods used to produce other goods that are usually not the final product. Example wood
What must be included in the Product or Service section if the business is selling a service? (4x1) A service explanation The target market Wether the service is personal or commercial The service delivery range
What is a personal service? Give an example. A service that works directly with the consumer Example doctor
What is a commercial service? A service that works as an intermediary Example transport of goods
What are the eight P’s of the marketing mix? Process Physical evidence People Promotion Place Price Product Planet
What does the process element of the marketing mix include? (6x1) The process of giving a service The behavior of those who deliver it Issues such as waiting time and information given to consumer Helpfulness of staff Keeping consumers happy
How does the physical environment element function in the marketing mix? (4x1) Keeping facilities clean and the reception well decorated will help consumers feel more confident of your products as they know it is worth it.
Why are the people or personnel important in the sales and marketing process? Can make a positive impression (business personality) Recruiting staff with knowledge will promote positive image Having better staff than competitors Well mannered Charismatic
Which question should be asked before one advertises? For who is the ad? Can they afford it? Where do they live? How will you advertise?
What are the characteristics of a good advertisement? The ad is attractive The ad sparks interest The ad creates a desire The ad encourages viewers to purchase it. AIDA
Name six mediums of advertising and include an example. Print (newspaper, magazines) Sound (radio) Sight and Sound (television, cinema) Outdoor (billboard, taxis, buses) Direct Mail (database) Computer (websites, social media)
Name four(4) advertisement techniques. Give free toy Competition/Contests Sales Celebrity endorsements Coupons
What is the difference between an advertisement and a promotion. Advertisement is paying for the ad and making it visible to anyone Promotion is free, but is only visible to target market
What is the difference between advertising and publicity? Advertising is done by marketing and is paid for. Publicity has to do with Public Relations and is done by the public, free of charge for the business.
What is meant by place? Where the business intents to sell the product.
Name five(5) ways in which products can be distributed. Direct selling Door to door sales Mail order Telephone selling Internet sales
What is meant with direct selling in terms of distributed? When the consumer purchases the product from the business and leaves the store with it.
What is meant with door to door selling in terms of distributed? Salespersons carry around products or sales information and knocks on doors in a certain area.
What is meant with mail order in terms of distributed? Large firms produce catalogues that consumers can use to order products of their choice.
What is meant with telephone selling in terms of distributed? Business staff call members of the public and persuade them to purchase products
What is meant with internet sales in terms of distributed? A website is made and is viewable to the public and allows consumer to order stock online and have it delivered to their door.
Name five(5) channels of distribution Manufacturer > consumer Manufacturer > retailer > consumer Manufacturer > wholesaler > retailer > consumer Manufacturer > agent > retailer > consumer Manufacturer > agent > wholesaler > retailer > consumer
How are prices determined? Prices are determined by calculating the average cos of factoring the product and to add the profit. This method is known as mark-up pricing.
Name three(3) pricing strategies that can be used by businesses? Introductory Price Dealing Penetration Pricing Psychological Pricing
Explain for two(2) marks what is the Introductory Price dealing. The product is brought into the market at a very low price in order to attract and convince the consumer to purchase the product.
Explain for three(3) marks what is the Penetration Pricing. The product is originally sold at a very low price that competitors cannot beat. This is used when entering the market.
Explain for one marks what is the Psychological Pricing. Prices appear in such a way that it appears cheaper to the consumer. For ex. R99.99 instead of R100
What is a discount? When a certain percent or a certain amount of money is deducted from the original selling price.
What are the four types of discounts? Quantity Discount Cash discounts Trade Discounts Sales Price Discounts
Explain what is a Quantity Discount. A quantity discount encourages customers to purchase more products for a lower price.
Explain what is a Cash discounts. Discount is handed out to customers whom pay with cash.
Explain what is a Trade Discounts Discount is offered from ones supplier to another. In other words, the supplier offers the business a discounted price to sell the product at a lower price.
Explain what is a Sales Price Discounts. Encourages consumers to purchase products when on sale and not when they are needed.
What are the four questions entrepreneurs need to ask when designing a new product? What are we selling? How will it be packaged? What is our product’s physical design? Are we selling a product or service?
What must be taken into consideration when designing the packaging? Needs to meet the consumer’s need Will it be necessary to change existing product Will it be necessary to develop a new product?
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