Business aims & objectives & location

• What are the two main sources of business ideas?

  Original ideas and adapting existing ideas
• Why do business ideas come about?

  Due to changing technology and consumer tastes
• What happens to products or services that become obsolete?

  They require replacements
• What do business aims and objectives represent?


  What the business wants to achieve
• What are financial aims related to?

  Money
• What is a non-financial aim related to personal goals?

  Personal challenge
• What does a business plan serve as?

  A detailed document for setting up and running a business
• What are the purposes of planning business activity?

  • Makes entrepreneur consider steps
  • Minimizes risk
  • Provides detailed plans
  • Establishes clear objectives
  • Used to measure progress
• What are some key elements included in a business plan?

  Market research and financial forecast
• What is the purpose of a cash flow forecast?

  To predict revenue and profit
• What is one source of finance for a business?

  Loans from banks
• Who can be a source of finance besides banks?

  Investors
• What are the components of a marketing mix?

  • Product
  • Price
  • Place
  • Promotion
• What is the aim of a business?

  Long term good
• How do aims change in a business context?

  Response to changing environment
• What factors influence the specific targets of a business?

  Competitors, technology, market share
• Why do aims differ between businesses?

  Due to size and ownership
• What demographic factors can influence business aims?

  Characteristics of the population
• What is a factor influencing business location?

  Proximity to market and labor
• What type of product is bulk-gaining?

  Product that increases in weight
• What is the impact of e-commerce on business location?

  Reduces fixed costs and location necessity
• What is inertia in a business context?

  Tendency to keep things the same
• What is a convenience good?

  Product bought frequently
• What is a shopping good?

  Product bought infrequently
• What is a bulk-reducing product?

  Product that decreases in weight
• How does proximity to competitors affect business location?

  Can influence customer choice and sales
• What is the significance of footfall in business location?

  Indicates potential customer traffic
• How does the nature of a product affect its location?

  Determines proximity to market and suppliers
• What is the role of transport links in business location?

  Facilitates supply chain and distribution
• How does e-commerce allow businesses to locate warehouses?

  In areas of high unemployment
• What is the relationship between e-commerce and customer shopping behavior?

  Customers shop around more frequently