ENTERPRISE AND ENTREPRENEURSHIP

• Purpose of business activity

  1. Provide people with a good or service
  2. Meet customer needs
  3. add value to an existing product
• ways to add value to a product

  • make a product more convenient for customers to get or use
  • build a good brand image
  • improve design or quality
  • give the product a usp
• why do new business ideas come about?

  • changes in technology
  • changes in consumers wants and needs
  • good or service becomes obsolete
• how new business ideas come about?

  • original ideas
  • adapting existing products, service or ideas
• role of an entrepreneur

  • organise resources
  • take risks
  • make business decisions
• risk of being an entrepreneur

  • business failure - time, effort, money lose
  • financial loss - loans, personal finance
  • lack of security - impact on quality of life
• rewards of being an entrepreneur

  • success
  • independence
  • profit
  • personal satisfaction
• markets can be...

  • place - where goods are traded
  • product - trade in a particular type of product
  • people - potential customers
• competitors

  different business that sell the same products in the same market. compete over sales to customers
• Market size

  no.individuals within the market which are potential buyers or sellers of products
• market share

  proportion of total sales controlled by the business
• strength and weakness of competitors based on...

  • price - customer wants lower prices however firm may not make as much profit
  • customer service - willing to pay more for an attractive service, invest in staff training
  • quality - satisfied customers, businesses could increase prices, may be costly
  • product range - provide more choice, fill gap in market, appear more innovative
  • location - more convenient, online or retail stores in particular location
• customer needs

  • price
  • quality
  • choice
  • convenience
• importance of identifying and understanding customers

  -generate sales

  -increase chance of business survival
• market research helps business...

  -make informed decisions

  -reduce risks

  -spot gap in the market
• primary research

  • surveys
  • focus groups
  • questionnaires
  • observations
• pros of primary research

  • relevant
  • specific
  • up-to-date
• cons of primary research

  • expensive
  • time consuming
• secondary research

  • internet
  • government reports
  • market research reports
  • newspapers
  • magazines
• pros of secondary research

  • cheaper
  • easily found
  • instantly available
• cons of secondary research

  -not always relevant

  -out of date

  -not specific
• social media- market research

  • promote - craft promotional material
  • reach wider range of consumers - larger scale
  • look at the types of people - segments of the market
• benefits of social media market research

  -cheaper

  -saves time

  -spot latest trends and taste

  -monitor behaviour of competition
• quantitative data

  numerical data - info measured / reduced to a number
• qualitative data

  feeling and opinions - greater depth of information
• methods of segmentation

  • age
  • income
  • location
  • lifestyle
  • demographics