Business Edexcel Paper 1

• why new ideas comes about?

  Products become obsolete,changes in technology,change in consumers want
• How new business ideas come about?

  original ideas, Adapting existing products
• impact of risk on business acvtivity

  Business failure,Lack of security,Financial Loss
• Impact of Reward On business activity

  business success,profit,independence
• purpose of business activity

  Produce goods and services,meet customer needs, added value
• Role of entrepreneurship

  Organise resources people amd equipment, make business decisions, take risks
• what are customer needs

  1. Price-lower increase sales
  2. quality- expectation
  3. choice-different tastes
  4. convenience- easy for customer
• importance of identifying and understanding customer needs

  1. generate sales
  2. business survival
• purpose of market research

  1. identify customer needs
  2. identify gap in market
  3. reduce risk with business idea
  4. inform devision making
• primary research?


  First hand e.g. surveys, questionnaires, observations, focus groups
• Secondary research?

  existing sources e.g. Internet, market reports, government reports
• use of data in markets

  1. qualitative and quantitative
  2. role of social media in collecting data
  3. importance of reliability of data
• how markets segment?


  lifestyle,income,deomgraphics, lifestyle,
• market mapping

  diagram to compare

  .identity gaps in market

  identify competitiors
• in competitive environment strengths and weaknesses are based on?

  price,quality,location,product range, customer service
• impact of competition on decision making

  1. price-changes
  2. innovate-more likely to
  3. costs- under control
• importance of cash for a business

  1. prevent business failure
  2. pay suppliers overheads amd employees
• difference between cash and profit

  profit-shatd left after bill are paid

  cash-monwy available to pay bills
• inflows?


  money coming into business e.g. sales, loans
• outflows?


  cash going out of business

  e.gm wages suppliers loans advertising
• net cash flow


  inflows minus outflows
• short term sources of finance


  1.overdraft

  2.trade credit
• lomg term sources of finance

  1.personal savings

  2.venture capitalist

  3.share capital

  4.loans

  5.retaimed profit

  6.crowdfunding