Business Studies Gcse Unit 1

Front 1

What the purpose of a Business?

Back 1

To make and provide goods or services

Front 2

What is a Good?
Give an example

Back 2

Goods are physical items like ; a hover

Front 3

What is a Service?
Give an Example

Back 3

Services are non-physical products such as: a hair cut

Front 4

How do Businesses provide their service or good?

Back 4

By buying resources, such as raw materials, labour and machines

Front 5

Where do Businesses buy their resources?

Back 5

From a Supplier

Front 6

Who do Businesses sell their goods or services to?

Back 6

Customers

Front 7

What is a Market?

Back 7

Markets exist in any situtation when buyers and sellers exchange goods and services

Front 8

What do owners need to think about when setting up a Business?

Back 8

Is their a Business opportunity?
Will customers use their service or buy their goods?
Do they have enough finances to start the business?
Could the business make a profit?
What would be needed to start the business running?
What are the legal aspects i.e taxes?

Front 9

What is a Consumer?

Back 9

The person who ultimately uses (or consumes) a product

Front 10

What are customer needs?

Back 10

The wants and desires of buyers of a good or users of a service

Front 11

What types of needs might customers have?

Back 11

Convince.
Reasonable Prices.
Good range and quality of products.
Knowledgeable and friendly customer service.

Front 12

What is Market Research?

Back 12

The process of gaining information about customers, competitors and market trends using Primary and Secondary research

Front 13

What is another name for Primary Research and Secondary Research?

Back 13

Primary Research - Field Research
Secondary Research - Desk Research

Front 14

What is Primary market research?

Back 14

Involves a collection of primary data - Information that hasn't been collected someone else.

Front 15

What types of Primary Research are their?
What do they involve?

Back 15

Surveys, involve asking questions to respondents. A type of survey is questionaires, which are a list of questions to be anwsered by respondents. They are designed to gather information about customer tastes.
Focus Groups, involve small groups of people coming together to talk about products or ideas, which are recorded by a researcher.
Observation, involves looking and recording how other businesses behave.
Consumer Trials, involve testing products on consumers and anaylsing their responses towards the products.
Also in some situtations it could be possible to conduct experiments.

Front 16

What is Secondary Researching?

Back 16

Involves the collecting of secondary data, which is information that has already been collected

Front 17

Where can you get Secondary Data?

Back 17

Market Reports
Government Publications
Newspapers and Books
Magazine and Articles
The Internet
CDs and DVDs

Front 18

What is the advantages of Primary Research?

Back 18

Provides up to date, relevant and specific data according to your products.

Front 19

What is the disadvantages of Primary Research?

Back 19

It can be expensive to collect, time consuming and it needs a large sample size to be accurate.

Front 20

What is the advantages of Secondary Research?

Back 20

It's cheaper than Primary Research, it can be easily found and instantly available. This makes it ideal for a business with a limited budget.

Front 21

What is the disadvantages of Secondary Research?

Back 21

It might not always be relevant to the businesses needs.
It may not be specific to the products and its often out of date.

Front 22

What two kinds of information can you get from Market Research?

Back 22

Quantitative and Qualitative Data

Front 23

What is Quantative Data?

Back 23

Data that can be measured or reduced to a number

Front 24

What is Qualitative?
Why is it hard to analyse

Back 24

Information that is about people's feelings and opinions. Its hard to analyse because it can hard to compare two people's opinions.

Front 25

Why do Businesses Market Map?

Back 25

Market Mapping helps a business understand its products location within the market, and the market's key features

Front 26

When will Businesses Market Map?

Back 26

After they have identified the segment of market they want to fill

Front 27

What do Market Maps illustrate?

Back 27

The position a product can take in a market, based on two dimensions that are important to customers

Front 28

What types of dimensions could their be on the Market Map?

Back 28

Low Price v High Prive
Basic Quality v High Quality
Necessity v Luxury
Simple v Complex
Low-Tech v High-Tech
Young v Old

Front 29

What can Market Maps be used to identify?

Back 29

"Gaps in the Market" - Occurs when no business is currently serving the needs of customers for a particular product

Front 30

How can Businesses fill a "Gap in the Market?"

Back 30

Developing a new product.
Selling an existing product in a new place at or at a new price, or promoting it in a new way ti convince customers its what they need

Front 31

Why might their be a "Gap in the Market?"

Back 31

Sometimes consumers do not want to buy a specific kind of product that would fit that gap

Front 32

How can the "Gap" be a great opportunity for a Business?

Back 32

If the Business get the right Marketing Mix, a gap can expand to become a large market.
But the business must be quick to till the gap - before its competitors do.

Front 33

What is Product Range?

Back 33

A group of similar products made by a business

Front 34

What does Price sensitive mean?

Back 34

When the price is very important in the decision about whether to buy or not

Front 35

What is the aim of Firms?

Back 35

To maximise profits for their shareholders.
Firms want to be monopolies.

Front 36

What is a Monopoly?
Where does it exist?

Back 36

A Monopoly is the only supplier of a product or service and had a dominate position is in the market - it can dictate prices to others.
It usually exits when one firm has 25% or more of the market

Front 37

What do Consumers want?

Back 37

To buy as many goods as possible at the cheapest prices. They want markets to be competive.

Front 38

What is a Competitive Market?

Back 38

A market where there is a large number of producers selling to a large number of consumers.

Nobody is powerful enough to dictate prices prices so if a firm (business) charges more than consumers will go elsewhere - this forces the producers to be effiecent.

Front 39

What can Competition make firms do?
How can this affect Consumers and Firms?

Back 39

Sell the same products at cheaper prices
It will mean that their is less products for consumers
The lower prices will reduce firms profits making less money for development if new and better products

Front 40

What factors can competition improve?

Back 40

Price: If there are several retailers, each retailer will lower the price in an attempt to win customers
Products range: In order to attract and satisfy customers, companies need to produce products that are superior to their competitors
Customer Service: Retailers that provide customers with a helpful and friendly service will win their loyalty

Front 41

What do Governments believe?
How can they promote this?

Back 41

The benefits to consumers of competitive markets are more important than the benefits to producers of monopoly markets.
They promote this by setting up organisayions to monitor the competition between businesses

Front 42

What does Market Segment mean?

Back 42

Part of a marker that contains a group of buyers with similar buying habits

Front 43

How can Businesses judge their potential competition?

Back 43

Product Range
Quality
Design
Brand
Brand Image
Price

Front 44

What is a Brand?

Back 44

A named product which customers see as being different from other products and which they can associate or identify with

Front 45

What is Brand Image?

Back 45

The idea, impression or image that customers have in their minds about the brand

Front 46

What is Added Value?

Back 46

The increased worth that a business creates for a product; it is the difference between what a business pays its suppliers and the price that is able to charge for the good/service

Front 47

What is Production?

Back 47

The business activity of using resources to make goods and services

Front 48

What ways can a business Add Value (the source)?

Back 48

Convenience - The product could be made more convenient
Speed - Customers may pay note to have a product delivered quickly
Branding - Having a strong brand image is important. If the brand is well-known and trusted, customers may be happy to pay more. Brands that are seen as fashionable or 'cool' also tend to be able to charge more form their product
Quality - People at often prepared to pay more for a high quality product
Design - Having a good design is important. If products are more attractive, distinctive design they tend to be more desirable than basic products. Customers will be prepared to pay more for them

Front 49

What is a Unique Selling Point (USP)?
How can it Add Value?

Back 49

A characteristic of a product that makes it different from other similar products being sold in the marker such as design, quality or image.
If the customers value the USP thsg will be willing to pay more for it.

Front 50

What is a Franchise?

Back 50

The right given by one business to another to sell goods or services using its name.
It is a joint venture between a Franchisee and a Franchisor

Front 51

What is a Franchisee?

Back 51

A business that agrees to manufacture, distribute or provide a branded product, under licence by a franchisor

Front 52

What is a Franchisor?

Back 52

The business that give franchisees the right to sell its product, in a return for w tidee sum of money or a royality payment

Front 53

What are the benefits of a Franchise? Why?

Back 53

Training - Franchisees usually receive training from the Franchisor. This allows the Franchise to maintain its good name and ensure that the Franchisee operates the Franchise correctly
Equipment - Most Franchises provide equiptment to Franchiees as part of the total package
Materials - Franchisors sell their Franchisees some or all of the materials used in production
Finding Customers - Many Franchises help new business owners find customers through national advertising. It also provides publicity materials such as posters. The brand name can adlo bring customers because they would already he aware if the business and its reputation
Brand Name - Branding cab be cruical to the success of a business. Many big Franchises have regional managers that make sure the Franchisees are running the business properly and that their staff are properly changed. This helps maintain the quality that customers expect. It helps provide consitancy of customer experience wherever the Franchise is located

Front 54

What are the disadvantages of a Franchise?

Back 54

Set up and running costs can be high
Profits have to be shared with the franchisors
Their is less independence in the decision making as the Franchisee has to follow the rules set out by the Franchisor
In some Franchises, the Franchisor can end the Franchise arrangements without giving any reason or pay any compensation

Front 55

What does Enterprise mean?

Back 55

A willingness by an individual or a business to take risks, show initiative and undertake new ventures

Front 56

What does Entrepreneur mean?
What skills may they have?

Back 56

A person who owns and runs their own business and takes risks. They take advantage of Business opportunities.
Risk Taking, Showing Initiative

Front 57

What does Risk mean?

Back 57

The chance of damage or loss occurring as a result of making a decision

Front 58

What is another term for Businesses?

Back 58

Enterprises

Front 59

What does Enterprise involve?

Back 59

Identifying business opportunities and taking advantage of them. However their is a risk of failure, but the reward is receiving a profit
Starting up a new business or helping another one expand by inputting new ideas
Balancing risks against possible rewards

Front 60

What do Entrepreneurs need to gather? Why?

Back 60

The correct resources, so they can start or expand a business

Front 61

What is a good Business idea?

Back 61

One that provides a good/service that other businesses aren't providing, but customers are willing to pay for; filling a market gap

Front 62

Where do Entrepreneurs often get their Capitol from?

Back 62

They tend to use their own but sometimes they increase this with investment from a bank

Front 63

What is a key Resources for a Business? Why?

Back 63

Captiol, to buy the equipment and pay workers.

Front 64

What will a good Entrepreneur do?

Back 64

Take calculated risks - They'll do research, plan carefully to increase the success rate and evaluate up the consequences of failure. If the risk is worth taking, the Entrepreneur will go ahead with the new business venture

Front 65

What qualities would they have?

Back 65

Thinking Ahead - to identify opportunities for the future
Initiative - to seek out or seize business opportunities
drive and determination - to be motivated and turn ideas into practice
Decisiveness - so they don't shy away from making tough decisions
Networking Skills - to identify who van provide capitol or other resources
Leadership and Persuasive - to motivate other people to support their ideas
Taking Calculated Risks - and to profit from their enterpise activities
Plan Carefully - to minimise the risk of failure
Learn from Mistake - and to see mistakes as part of "learning to succeed"

Front 66

What is Creative Thinking?

Back 66

The process in which entrepreneurs come up with new and unique ideas

Front 67

What can Creative Thinking result in?

Back 67

A new product
New process that cuts costs or improves quality

Front 68

What do these ideas give a Business?

Back 68

A competitbe advantage
Help make their goods/service stand out in the Market

Front 69

What techniques may an Entrepreneur use to improve their creative thinking?

Back 69

Lateral (Creative) Thinking - thinking differently to try and find jre and unexpected ideas
Deliberate Creativity - the intentional creation of new ideas through recognised and accepted techniques
Blue-Sky Thinking - involves a participants, who are encouraged to think of as many ideas as possible about an issue or problem

Front 70

What is part of the process of Creative Thinking?

Back 70

Business should ask the right questions, when coming up with a new idea - For example when looking at a successful product and asking - why, why not, how, where, when, what, what if?

Front 71

What Thinking technique does the 'Six Thinking Hats' relate to? Why?

Back 71

Blue-Sky Thinking as this technique involves putting ideas in paper. 'Six Thinking Hats', is a technique that helps orgainse and focus those ideas

Front 72

What is 'Six Hat Thinking'?
How do groups use this technique?

Back 72

'Six Hat Thinking' takes six different types/styles of thinking.
Groups who use this technique put on 'hats' one at a time to think about a problem

Front 73

What are the 'Six Hat Thinking'? What do they involve?

Back 73

White Hat - thinking about facts
Red Hat - thinking about emotions and gut feelings
Black Hat - thinking about the problems and difficulties of the idea
Yellow Hat - thinking about the positive aspects of an idea
Green Hat - Creative Thinking. It is about Lateral Thinking
Blue Hat - 'thinking about thinking'. The person who organises or is managing the thinking process is engaging in Blue Hat Thinking

Front 74

How do new Businesses come about?

Back 74

Some business ideas are developed by people who use the product
Some business ideas are developed by people who already have good understanding of their product
Many business ideas are developed by research departments in medium to large companies

Front 75

What is an Invention?

Back 75

The discovery of new processes and potential new products, typically after a period of resarch

Front 76

What is an Innovation?

Back 76

The process of transforming inventions into products that can be sold to customers

Front 77

Why are Inventions and Innovations risky?

Back 77

As many Inventions never get to the point when they are sold. Innovations also leads to failure
Also people may try to copy your Invention

Front 78

What can Business do to protect their products from being copied?

Back 78

Apply for patents and copy rights to protect their ideas

Front 79

What other things can a Business register?

Back 79

Brand, Tradename or Trademark which prevents others from using them

Front 80

What is a Patent?

Back 80

Right it ownership of an invention or process when it is registered with the government. Anyone copying a patent idea can be taken to court and dued for damages
Patents last for a set number of years

Front 81

What is Copyright?

Back 81

Legal ownership of intellectual property such as books, music and films which prevents others from copying them. Copyright give the right to control to produce, control and copy the works soley to the individual or company that produce the work originally
Copyrights also last for a set number of years, but they last longer that patents

Front 82

What is a Trademark?

Back 82

The symbol, sign, or other features of a product or business that can be protected in law

Front 83

What is a Calculated Risk?

Back 83

The probability or numerical of a risk occurring in a business

Front 84

What do Businesses do when preparing to Start-up?

Back 84

Create a Business Plan

Front 85

What is a Business Plan?
What can they be used for?

Back 85

A document that outlined all aspects of the future business
Business Plans can be used to weigh up the downsides and upsides of setting up a business

Front 86

What are Downsides?

Back 86

The disadvantages of a course of action, including what can go wrong

Front 87

What are Upsides?

Back 87

The advantages of a course of action, including what can go wrong