Business

• Business 


  An organisation that seeks to satisfy the needs and wants of consumers by providing goods or services
• Dynamic 


  Continual change
• Consumer 


  The end user of a product or service
• Obsolete 


  Out of date or a product that has declining sales or come to an end
• Entrepreneur 


  An individual who comes up with a business idea and is willing to take a risk to develop it
• Business ideas come about because of:

  1. changes in technology
  2. changes in what consumers want

  3. products and services becoming coming
• Business ideas come about because

  an entrepreneur has a completely original idea. This is invention. adapting an existing idea. This is innovation.
• Adaptations to products can be

  New flavours, different colours and pack sizes, online access to product or service and offering personalisation
• Risk


  Something bad or negative that could happen
• Reward


  Something good or a positive effect
• Financial 


  Related to money
• Non-financial 


  Not related to money
• Profit


  What a business has left from its income after paying all of its costs
• Risks that can go wrong these include

  Business failure, financial loss, and lack of security due to not having regular income
• Business can fail, because

  An entrepreneur does not know the market well, not having enough capital to start a business, poor decision-making, competition from other businesses and not meeting the needs of customers.
• Rewards are what can be achieved for a business success. These include


  Profit and personal Independence
• good


  Physical items that are business can sell or produce
• Services


  Non-physical products, intangible ,things that you can experience e.g. a haircut
• Needs


  The essential products that consumers need to survive, e.g. food, water, shelter, clothing, warmth
• Wants


  Anything that is not a basic needs often referEd to as luxuries
• Customer 


  The person who buys the product
• Consumer 


  The person who is the eventual user of the product
• Adding value


  Adapting a product, so that selling price is higher than the cost of creating the product
• USP


  Unique, selling point
• Factors of production


  Resources needed to produce goods and services, e.g. land, labour capital, an enterprise
• How can a business add value?

  Branding by creating an image for a product that sets it apart

  Quality, for example, using better cuts of meat in a pie

  design which are unique features and designs can lead to consumers paying higher prices

  Convenience when something saves a customer, this can lead into paying a higher price

  USPs a characteristic of feature of a product that cannot be replicated by an alternative.
• Customer needs


  Specific things as a buyer, wants about goods and services
• Customer reviews


  Feedback from customers, which can be online
• Word of mouth


  Customer tells another person about a business
• Repeat purchase


  When a customer returns to the same business
• Examples of customer needs are

  Price reflects the quality of the product and is low enough to match consumer incomes

  Quality usually more important for those with higher income levels

  Choice consumers like to select from a range of options, different flavours, colours or packet sizes

  Convenience, making life easier for customers

  Efficient and reliable service, such as having enough stock or longevity of a product

  Design how a product looks
• Market research


  The process of gathering processing and interpreting information about consumers behaviour
• Secondary research


  Using research that has already been carried out for another purpose
• Primary research


  Collecting new information
• Qualitative data


  Research into opinions and views
• Quantitive data


  Data that is numerical
• Focus group


  A small number of consumers who have made a discussion
• Market trends


  And overall pattern related to products
• Market gap


  What amount is not being met by the existing products available
• Bias


  A one-sided view