Business

• What are the main reasons new business ideas come about?

  Changes in technology, changes in consumer demand, and obsolescence of products and services
• How do entrepreneurs recognize opportunities for new business ideas?


  By identifying changes in the market
• What is a successful business's approach to market changes?


  Identifying opportunities and developing innovative solutions
• What role does technology play in creating new business opportunities?


  Advances in technology can lead to the development of innovative products and services
• Give an example of how technology has created new business opportunities.

  The emergence of smartphones and social media platforms
• How does consumer demand influence new business ideas?


  It creates opportunities for businesses to develop new products and services
• What is an example of changing consumer demand leading to new business opportunities?


  The growing demand for plant-based food products
• What can cause products and services to become obsolete?


  Changes in technology or changes in consumer demand
• How can obsolescence create new business opportunities?


  It allows businesses to develop new products and services that meet current consumer needs
• Provide an example of a product that became obsolete and led to new business opportunities.

  The decline of physical media like CDs and DVDs
• What is the key to business success according to the study material?


  Identifying a need or opportunity in the market and developing an innovative solution
• What are original ideas in the context of new business ideas?


  New and unique concepts not based on existing products or services
• How do original ideas typically arise?

  When entrepreneurs identify a gap in the market or a new unmet need
• What is the purpose of business activity?


  To take inputs, add value to them, and create products that meet customer needs
• What is the primary purpose of business activity?


  To produce goods or services that satisfy a need or demand in the market
• What are goods?


  Physical products, such as bicycles and T-shirts
• What are services?


  Non-physical items such as hairdressing, tourism, and manicures
• What is the ultimate goal of business activity?

  To create products that meet the needs and preferences of customers and provide value
• How can businesses benefit from meeting customer needs?


  By building customer loyalty, increasing brand awareness, and generating revenue
• What is the third purpose of business activity?


  To add value to products or services
• What are value-added features?


  Features that differentiate products from competitors and create a unique selling point
• How can a product's design create a competitive advantage?


  By being easier to use, having a better design, or being of higher quality than competitors
• What is the formula for adding value?


  Adding value is the difference between the price charged to the customer and the cost of inputs
• Why are customers willing to pay more for oven chips than for raw potatoes?

  Because the packaging and convenience add value to the product
• What are some methods of adding value to products/services?

  • Branding
  • Convenience
  • Quality
  • Unique Selling Points (USPs)
• How has Apple added value to its products?


  By building a brand perceived as superior through quality materials, innovative design, and good marketing
• How did Persil add value to its dishwashing liquid product?


  By creating tablets that offered a more convenient option for customers
• What is a unique selling point (USP) in the context of MoonPig birthday cards?


  The ability to completely customize the cards in size, color, and design
• How does the Samsung Galaxy Watch 5 add value?


  By incorporating robust health tracking tools and an amazing screen
• What is an important consideration when adding value to products?


  That the increase in selling price must outweigh the costs associated with the method
• What is an entrepreneur?


  A person who is willing and able to create a new business idea or invention and takes risks in pursuing success
• What are the three main characteristics of successful entrepreneurs?


  They organize resources, take risks, and make decisions
• Why must an entrepreneur organize resources?


  To gather and coordinate the necessary resources to start and operate a business
• What can happen if an entrepreneur makes the wrong business decisions?


  It can lead to wasted resources, lost opportunities, and ultimately business failure
• What types of risks do entrepreneurs take?


  Financial, personal, or professional risks
• What might an entrepreneur do when starting a new venture?


  Invest their life savings or quit a secure job
• How can introducing new products be a risk for entrepreneurs?


  It can lead to failure and financial loss if the products do not succeed
• What role might an entrepreneur take on as their business grows?


  They may take on the role of mentor to support new staff members
• What are the key activities that businesses engage in?


  • Produce goods or services
  • Meet customer needs
  • Add value to products/services
• What is a market?


  A market is any place where buyers and sellers can meet.