Business 1.1

• How do businesses survive and make a profit


  Meet the needs of consumers
• How do businesses meet the need of consumers



  Adapting existing products, services and ideas

  New and original ideas
• Reasons for new business ideas


  Change in technology

  Change in what consumers want

  Products and services becoming obsolete
• Changes in technology


  Technology is advancing at a rapid rate.Presening many opportunities for new business ideas.M-commerce and E-commerce is standard business practice.Changes in technology also cause businesses to fail.
• Consumer wants and needs are influenced by changes in?


  Demographics,Consumer tastes,Trends in society
• Products and services becoming obsolete 


  Most products and services have a limited lifespan.Paves the way for innovation which leads to the development of new and improved products and services
• Risks of entrepreneurship 


  Financial loss

  Lack of security

  Business failure
• Financial loss


  Could lose the investment that you and others made in the venture.The owner could make poor financial decisions while running the business
• Lack of security 


  Business owners may need to work irregular hours and decrease their pay initially.No sick or Holiday pay
• Business failure 


  20% of small business fail within the first year.By second year 30% and by the end of the fifth year about half would have failed
• Rewards of Entrepreneurship 


  Profit

  Business success

  Independence
• Profit


  Making more money is a good reward for the risk of leaving a 9 to 5 job.The potential of higher earning is very real for business owners.
• Business success


  Seeing something you are passionate about going from an idea to a fully fledged business can be rewarding
• Independence 


  Freedom of no boss, setting your own hours and making your own decisions whilst following a passion or interest
• Example of business risk 


  Elon musk has perceived and taken calculated risks(as Tesla have come close to folding)he has managed to become one of the most wealthiest people alive Selling his first company at $300 million.Tesla worth over $600 billion,personal worth $170 billion,Sold PayPal to eBay for $1.5 billion.Space x,Tesla,Neuralink and the boring company
• The role of business enterprise 


  To produce goods or provide a service.

  To add value

  To meet the needs of the customer
• To produce goods or provide a service 


  Goods are tangible items produced to send direct to consumers or other businesses.Services are intangible actions that do not physically exist.
• To meet needs of the customer 


  Successful businesses provide customers with goods and services that meet their needs.
• Adding value 


  Adding value is taking a good or service and making it more appealing to the target customer.When value is added businesses can charge more for that product.Convenience, Quality, Design, Branding
• Convenience 


  Selling products online direct to consumers.Next day delivery options.
• Quality 


  Charge higher prices because customers expect good quality
• Design


  Features such as seamless clothes and different collections add value
• Branding- Gymshark as an example 


  By becoming culturally relevant and trusted in the fitness space by using fitness influencers as brand ambassadors
• Usp-Gymshark as an example

  Create new ranges between 8-10 weeks.Brand becomes relevant and fashionable
• What is a product


  Anything capable of satisfying customers needs and are physical products
• what is a service?


  An act that a business person carries out for you in exchange for money.Can't be touched intangible
• Impact of change in technology 


  Improvement in technological products and processes increase productivity and reduce costs
• Examples of changes in technology


  Since invention of the internet in 1990 businesses reach the consumer online.New technological advances such as virtual reality and robotic products.
• What can businesses use to find out what consumers want and need


  Social media so they can produce products and services to meet the need
• examples of changes in what consumers want


  demand for wearable technology

  ready-made meals
• Need


  something essential to survive
• Want


  We would like but don't need to survive