1.1 business

• Dynamic business


  Business that adapts to meet the changing needs of customers and developments in the market
• New business ideas


  • Come about due to changes in technology, strategy, selling channels
• Risks


  • Business failure
  • Lack of capital
  • Goods/services not meeting customer needs
  • Changes in consumer bases
• Rewards


  • Business success
  • Independence
  • Measuring business sales
• Role of management


  • Needs capital, machinery, resources, goods to produce, land, labour, enterprise skills
• Purpose of a business

  Provide what consumers want, consumers benefit from choices available
• Adding value


  Difference between the cost of producing the goods/services and the price that consumers are willing to pay
• Qualities of an entrepreneur

  • Determined, innovative, confident, competitive
• Methods to create an image for a product

  Branding, quality, unique selling point (USP)
• If a product has a unique design or feature

  Consumers will pay more
• A business can reduce prices if the market is saturated and customers are happy
• services are intangible products which cannot be touched or seen but experienced by the customer
• Services include haircuts, holidays, car repairs, education, healthcare, entertainment, banking, insurance, legal services, transport, hospitality, retailing, tourism, leisure activities.