WQ2 Preparation

• What is the relationship between product and service?

  Product = Service
• What does Service = Product imply?

  Service is equivalent to a product
• What does Service = service indicate?

  Service is equal to service
• How many parties are needed for an exchange?

  At least 2 parties
• What must each party possess in an exchange?

  Something involved in the exchange
• Why is communication important in an exchange?

  Each party should communicate offers
• What decision must each party be able to make in an exchange?

  Decide to accept or reject the offer
• What must each party trust in an exchange?

  The agreement is good and reasonable
• What is the market?

  The place for exchanging products for money
• What defines competition in the market?

  Companies providing similar products/services
• What characterizes perfect competition?

  Homogenous products with no preferences
• Give an example of a product in perfect competition.

  Sugar
• What is a monopolistic approach?

  Similar products with slight differentiation
• What defines a monopoly?

  Only one seller controls the market
• What is an oligarchy in market terms?

  3-5 dominant firms in the market
• What does the environment include in business?

  All factors influencing business activities
• What are the two types of environments in business?

  Macro environment and micro environment
• What is a feasibility study?

  Evaluation predicting project success or failure
• Why is information important in market entrepreneurship?

  It reveals market needs
• What is the purpose of distribution in market entrepreneurship?

  To share information with stakeholders
• What does creating involve in market entrepreneurship?

  Tailoring products to market needs
• What is the role of collection in market entrepreneurship?

  Gathering feedback for product improvement
• What does viability refer to in business?

  Ability to survive and sustain profits
• What is demand in market terms?

  Consumer's desire and willingness to pay
• What is competition in market terms?

  Contest between organizations for consumers
• What is SWOT analysis?

  • S - Strengths: Resources we can deploy
  • W - Weaknesses: What we are lacking
  • O - Opportunities: Who values our strengths
  • T - Threats: What challenges we face
• What is cost in business terms?

  Monetary value spent for production
• What is cost of sale?

  Spending on producing and delivering products
• What are operating costs?

  Overhead costs of running a business
• What does profitability measure?

  Profit relative to expenses
• What is profit in business terms?

  Revenue left after paying expenses
• What is the marketing mix?

  • A strategic framework combining:
  • Products
  • Prices
  • Places
  • Promotions
  • Differentiates from competitors
• What are the 7Ps of marketing mix?

  1. Products: Goods or services offered
  2. Prices: Amount customers pay
  3. Promotion: Communication strategies
  4. Process: Steps in delivering products
  5. Packaging: Protective covering for products
  6. People: Employees and stakeholders
  7. Place: Distribution channels
• What does manpower refer to in production?

  Human labor force in manufacturing
• What do materials refer to in production?

  Raw materials for product production
• What factors should be considered for materials?

  Cost, quality, supplier credibility
• What does machine refer to in production?

  Manufacturing equipment for goods
• What factors should be considered for machines?

  Types of products, cost, efficiency
• What does method refer to in production?

  Process of transforming raw materials
• What are the factors to consider in production?

  • Manpower: Human labor force
  • Materials: Raw materials needed
  • Machine: Manufacturing equipment
  • Method: Process of transformation