Business Paper 1

Created by

emily

Cards (58)

What is presale?
Everything leading up to the point where the sale is actually finalised
What is post sale?
Meeting the customer needs after the payment has been made
3 things customers expect from a business in a sale
Good customer service
Positive experience
Post sales service
Features of pre sale service
Prompt, friendly contact
Assessment of your needs
Good product knowledge
Recommendation of suitable products or extras
Clear pricing and payment options
Features of post sales service
Delivery and setup should be on schedule
Follow up enquiries
Technical support
Warranty
Servicing
5 ways to give good service during the sales process
Having excellent product knowledge
Engaging well with the customer
Having quick and efficient service
Offering post sales service
Responding to customer feedback
Benefits of good customer service
High levels of customer satisfaction
Customers are more likely to remain loyal to the company and make repeat purchases
Dangers of poor customer service
If a customer has a bad experience, they may tell others, which gives them a poor brand image and may convince people to buy from other companies, giving them a lower market share
Why is it important for an employee to have good product knowledge?
Any customer questions can be answered quickly and accurately
Staff can find the product most suited to their needs and can try and sell additional products to go alongside it
Why is it important to respond to customer feedback?
To make the customer feel valued by the company
To make improvements to the business in order to provide a more positive experience for other customers
Costs of good customer service
The wages of extra staff
The costs of providing after care
What happens to consumer spending if tax rates increase? 
It decreases
What happens to a business if tax rates increase? 
They have less money to reinvest and may suffer from slow growth
How can businesses benefit from unemployment? 
They may be able to pay lower wages if people are desperate for jobs
What is enterprise? 
The process of identifying new business ideas and taking advantage of them
What is an entrepreneur? 
Someone who takes on the risks of starting an enterprise
What changes could a business want to make to its objectives? 
To grow rather than just survive
Enter or exit new markets
Change the size of its product range
Change the size of its workforce
What changes in the business environment could affect the company's aims and objectives?
New legislation
Changes in the economy, market conditions or technology
Enviornmental expectations
What is inflation? 
An increase in the costs of goods and services
What happens to consumer spending when inflation happens? 
Spending will increase in the short term as people want to buy products before the prices increase even more, but then if wages don't increase at the same rate as prices, demand can fall.
What happens to the cost of labour when inflation happens? 
It increases as employees put pressure on business owners to increase wages so they can afford to pay the higher prices for the things they need. This will increase business costs.
What happens to UK exports when inflation increases? 
It make the experts more expensive, so UK exports are less competitve globally.
What type of company's sales would likely go down during inflation?
Luxury
What is a business plan? 
An outline of what the business will do and how it will do it
What should be included in a business plan? 
The idea
Aims and objectives
Target market
Marketing mix
Location
Finance
What is diversification? 
When 2 unrelated firms join together
What is horizontal expansion? 
When 2 competitors join together
What is vertical expansion? 
When 2 firms at different points in the supply chain join together
What is a merger? 
When 2 firms join together to form a new, larger firm
What is a takeover? 
When a company buys more than half the shares in another firm
What is the criteria in the Consumer Rights Act? 
The product should be fit for purpose
The product should match its description
The product should be of satisfactory quality
What would a business think about when deciding on a location?
Labour costs
Competitors in the area
Costs
The possibility of using the internet
Proximity to the market
Raw materials
What is opportunity cost?
The benefit that's given up when making another decision
What are the 4 factors of production? 
Land
Labour
Capital
Enterprise
What is land? 
The physical parts of land that the business operates on and the natural resources it needs
What is internal expansion? 
When a business grows by reinvesting its profits to expand its own activities
How can a business internally expand? 
Targeting new markets
Developing new products
Opening new stores
Outsourcing
What is just in case stock control? 
Using buffer stocks just in case there is a supply shortage or customer demand increases
What is just in time stock control? 
It aims to keep stock levels to the bare minimum to have as little waste as possible
What is a not for profit organisation? 
An organisation that does not earn profits for its owners