1.1.1 dynamic nature of business

• Goods - Touch, Tangible

  Eg: pencil case, shirt , Apple
• Service: See, Intangible

  Eg: Haircut Transport
• Customer- Buys the product

  consumer - Uses the Products
• 10 most valuable brands

  • Amazon
  • Apple
  • Google
  • McDonald
  • Disney
  • Starbucks
  • Netflix
  • Samsung
  • Uber
  • Mercedes Benz
• 1 in 3 business close after 3 years
• Over 4 million business in uk today (2023)
• Invention = the discovery of new products

  I.E the original Bicycle
• Innovation= the process of transforming inventions in to products that can be sold to customers
• 94% of the worlds would recognise the brand coco cola
• The evolution of the bicycle

  • velocipede
  • boneshaker
  • penny Farthing
  • safety bike
  • road Bike
  • mountain Bike
• Shrinkflation= reducing the size of a product over the time for roughly the same price
• Tim Beaners Lee = founder of the internet
• Changes in technology

  • since the invention of the internet in 1990 business have found a new cheaper way to reach the consumers - online
  • Advancements in the robotic will mean dozens of new products in the future
• Changes in what customers want

  • we are all working more and have less time , so the ready made meals markets is catering to these consumers need
  • Consumers are also demanding organic, free , range , sustainable, eco friendly products as we become more aware of out impacts on the environment
  • oraginic foods are expensive
  • consumers taste change over time , which means that a business is at risk if they don't keep up with the current trends
• New business ideas can be stimulated by changes in technology (such as the arrival of the smartphones) or by the obsolescence of older products, as consumers look for something new. Most new products are little more than adaptations of the older products, but occasionally there's a brand new invention based on original ideas such as the first virtual reality headset
• Reasons new business comes out

  • new technology
  • changes in technology
  • changes in trend
  • changes in what customers want
  • products and services becoming absolute
• Why new business ideas come about:

  • Changes in technology
  • Changes in what consumers want
  • Products and services becoming obsolete
• How new business ideas come about:

  • Original ideas
  • Adapting existing products/services/ideas
• Why new business ideas come about is new

  and introduces students to the idea that

  businesses are dynamic and need to evolve to

  survive and grow.
• A product is anything that

  is capable of satisfying

  customer needs

  Physical products:

  • Cars
  • Washing machines
  • X box consoles
  • Mobile phones
• A service is an act that a business person carries

  out for you in exchange for money, for example:

  • Dental treatment
  • Accountancy
  • Travel agents
  • Gardening
  • Cleaning
  • Hairdresser

  You cannot “touch” a service it is “intangible”
• Changes in technology

  Since the invention of the Internet in 1990

  businesses have found a new cheaper way to

  reach the consumer – online
• Changes in technology

  Small businesses are now able to set up and

  sell virtually anything online due to websites

  such as ebay, etsy and ebid
• Changes in technology

  New technology advancements in VR (virtual reality) mean there are lots of new products on the gaming market:
• Changes in technology

  Advancements in robotics will mean dozens of

  new products in the future:
• Changes in technology

  Businesses can use social media to find out

  what consumers want and need so that they

  can produce products and services to meet

  those wants and needs
• Changes in technology

  Businesses can use social media to find out

  what consumers want and need so that they

  can produce products and services to meet

  those wants and needs
• Changes in what consumers want

  • Consumers are now demanding wearable

  technology
• Changes in what consumers want

  • We are all working more and have less time,

  so the ready meal market is catering to these

  consumer needs
• Changes in what consumers want

  • Consumers are now demanding wearable

  technology
• Changes in what consumers want

  • Consumers are also demanding organic, free range, sustainable, eco friendly products as we become more aware of our impact on the environment
• Changes in consumers wants

  • Consumer tastes change over time which means that a business is at risk if they don’t keep up with current trends.
• Obsolete -A product that is no longer used or out of date

  For example we can make a product obsolete

  by replacing it with something better
• Original ideas are ones that have not been used

  before to put a product or service into production

  e.g. pet hotels

  This may be to solve problems

  It may be because an entrepreneur has a passion

  or interest

  A gap in the market may have been spotted

  A business may have carried out some research

  into the wants and needs of shoppers and be

  creating products to meet those needs
• • This is Art Fry – he invented the post-it note by accident
  • Originally it was called the press and peel
  • It was yellow as he had yellow paper to hand
  • He invented it to keep the page open in his hymn book
• • A successful business will be one that spots and opportunity to make a profit
  • This could be an idea that no-one has thought of before – for example Trunki luggage
  • The opportunity could be where there are lots of businesses already making a healthy profit
  • The entrepreneur may also spot an opportunity to trade and also make a difference to society – this is called a social enterprise
• • Rob Law was 21 when he had the idea to combine a toy with luggage to create a “Trunki”
  • Came up with the idea when he looked round a department store and had a college project to design some luggage 2006 Started “Magmatic” business on his own
  • Now employs 80 people in a Devon factory
  • Sold 2.8 million products in 100 countries
• • Vet Joe Inglis and 7 friends realised that there were 8.5 million dogs in the UK and 4 out of 5 owners treat the pet as one of the family and want the best food possible
  • They created a niche business
  • which makes tailored food to the dog’s age, breed or medical condition and is delivered to their door
  • Now TAILS.COM have 40,000 UK customers
  • Business help lines have veterinary nurses on the phones to answer customer questions
• Adapting existing ideas ,

  A business could create a new product by:

  • Mix and match
  • New version of an old product
  • Cheaper version of an old product
• Why new business ideas come about:

  • changes in technology
  • changes in what consumers want
  • products and services becoming obsolete.

  How new business ideas come about:

  • original ideas
  • adapting existing products/services/ideas.