1.1

Created by

Sophie Hancox

Cards (40)

what is a dynamic business 
a business that changes to meet the changing needs of customers
how are business ideas generated
changes in technology
changes in consumer tastes
outdated goods or services
how do business ideas come about because of chamnges in technology 
as technology changed new things were made e.g e-commerce and self driving cars
the global market place developed
how do changes in consumer tastes bring about new business ideas 
business need to adapt their products so they don't become obsolete
need to give customers what they want to prevent them from going to competitors and keep the business current
how to outdated goods and services bring about new business ideas 
as products become outadted they are replaced with new ideas that are better
what is a product 
anything capable of satisfying customer needs
what is a service 
something you provide for someone else in exchange for money
how is a business idea generated 
to fill a gap in the market
to improve an existing business idea
original ideas or an adaption of an existing product (invention or innovation)
what is an entrepreneur 
someone who is willing to take risks
an entrepreneur may develop an existing business idea to meet customer needs
what is a risk
things that can go wrong when setting up a business
what are examples of potential risks
business failure
financial loss
lack of secure income
what stage of a business is risk the largest
first starting a business
what stage of businnes does risk occur
every stage
why can business failure occur
lack of understanding of the market
not havng enough money to start the business
poor decision making
competition
not meeting customer needs
what is unlimited liability 
business owners personal posessions can be seized if the business goes into debt
success can mean different things to different people
what are the types of reward
financial and non financial
an entrepreneur may be at risk of not being able to afford to pay bills e.g rent and mortgage
how can a business success be measured 
ammount of sales
ammount of profit
market share
what is reward
good things that happen as a result of opening a business
what are examples of reward 
business success, persnal independance, profit
what are financial rewards
rewards that involve money
what are examples of financial rewards
profit, sales, breaking even, market share
what are non financial rewards
rewards that don't involve money
what are examples of non financial rewards
personal satisfaction and independace
what is a way to minimize risk
conduct market research
what is the purpose of a business 
provide what customers want
meet customer needs (price, quality, choice and convenience)
what is adding value 
the difference between the cost to produce a good and the price it is sold for
what are the 5 ways to add value 
branding, quality, design, convenience and USP
how does design add value
unique features/designs to make them stand out
how does branding add value
an image for a product makes it stand out from it's competitors
how does quality add value
high quality means that customers will be willing to pay more
how does convenience add value
customers will pay more for products that save them time
how do USPs add value
characteristics of a product that make them unique so competitors find it hard to copy
what are the 4 factors of production
capital, land, labour and enterprise
what is capital
man made resources (materials)
what is land 
all natural resources
what is labour
human input (skills/qualifications)
what is enterprise
skills/characteristics to mnage the other 3 factors and take risks