Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
45 Cards in this Set
- Front
- Back
|
Role of an Entrepreneur |
To expand the market To create more profit Benefits other businesses Competition - Better products/prices Product variation Allows businesses to develop |
|
|
Intrapreneurship |
A person inside a business who helps to better the company |
|
|
Innovation |
A product or service that is developed to make it better |
|
|
Risks face by entrepreneurs due to uncertainty |
Stress Financial pressure Success |
|
|
Motives of an entrepreneur |
Personal goals Financial - money and possessions Social and ethical objectives Self-employment |
|
|
Sole Trader |
Work on their own. Unlimited liability. Responsible for everything |
|
|
Partnership |
A partnership is a business where there are two or more owners of the enterprise. Most partnerships are between two and twenty members though there are examples like John Lewis where there are hundreds of partners. |
|
|
Private Limited Company - LTD. |
A private limited company is often a small business such as an independent retailer in a market town. Shares do not trade on the stock exchange. Only have invited shareholders. |
|
|
Advantages of Ltd.s |
Invited shareholders = more control More support Reduces financial risk Shares not advertised. |
|
|
Public Limited Company - PLC |
A public limited company is usually a large, well-known business. This could be a manufacturer or a chain of retailers with branches in most city centres. Shares trade on the stock exchange. |
|
|
Franchaise |
A type of PLC. Franchaisor gets paid by Franchaisees to use materials. Franchaisees get training. Individuals can set up a business with an established brand. |
|
|
Benefits of being a franchaise |
Safer Known business name Advice and guidance available Owner can keep most of the profit |
|
|
Drawbacks of being a franchiase |
A share of the profit goes to the franchiasor Must abide by legal agreements Only franchaisor products can be sold. Success is dependent on popularity of products |
|
|
Social Enterprise |
Social or environmental objectives. Profits are reinvested in social missions. Approximately 70,000 social enterprises in the UK contribute £18.5 billion and employing almost 1 million people |
|
|
Lifestyle Business |
Owners are more concerned with pursuing interests rather than profit. Focused on freedom and own interests. Not run for financial reasons |
|
|
Monetary |
Usually businesses will have to choose which option is best to spend their money on, e.g. advertising. |
|
|
Non-monetary |
Difficult to quantify, e.g. personal confidence, motivation or happiness. |
|
|
Trade-offs |
Opting for one choice which involves compromising another. Risk vs. reward, e.g. higher profit margins or higher turnover. |
|
|
Moving from entrepreneur to leader |
More responsibility Has to maintain a positive reputation Source new products |
|
|
Skills needed to move from entrepreneur to leader |
More responsible Supportive of staff Assertiveness in order to control the business |
|
|
Difficulties in moving from entrepreneur to leader |
Adapting mindset Stress Shared ownership and control Trust Lack of leadership qualities |
|
|
Overcoming difficulties in moving from entrepreneur to leader |
Delegation and trust Earn respect Maturity and experience Education Reduce stress |
|
|
The Market |
A place where people (buyers and sellers) get together to agree trade of goods and services |
|
|
Markets determine: |
Price Revenue Production |
|
|
Mass Markets |
Large markets with high sales volume. Products are aimed at large groups of consumers for that particular product. Large quantities need to be produced - exploit economies of sale. Higher sales and profits Higher competition |
|
|
Niche Markets |
Small part of a larger market with specific characteristics Smaller customer groups with specific needs Businesses avoid competition and is unable to support competing companies. Can charge higher prices. |
|
|
Value |
The amount spent by customers buying products. |
|
|
Volume |
The physical quantity of the product produced and sold. |
|
|
Market Share |
Sales of a business/ total sales in the market x 100 |
|
|
Market share importance |
See how well they are doing in comparison. Who has the highest share Influence other businesses Influence strategy and objectives Indicate the businesses success or failure. |
|
|
Dynamic Markets |
Markets change. The grow, fragment, shrink and disappear |
|
|
How markets change |
In size - either growth or decline Nature - updates, modifications and relaunches increase choice. Threat from new entrants New emerging economies - Brazil, Russia, India and China are launching new products |
|
|
Positives about online shopping |
Convenient More personal information Cut selling costs Lower market costs Wider customer reach Open 24/7 Flexible deal of the day Products from all over the world |
|
|
Why do new markets occur? |
Economic growth Innovation Social change Changes in legislation Demographic changes |
|
|
Adapting to change (markets) |
Flexibility Market research Investment Continuous improvement by competition Developing a niche |
|
|
Risk (markets) |
investing money, time and effort |
|
|
Uncertainty |
Events are subject to external influence: New competition Consumer taste New technology Natural disasters The economy Uncertainty is not always negative, it can lead to opportunities. |
|
|
Brands |
A name or logo that signifies a company. |
|
|
Unique Selling Point |
Something significantly different from others. |
|
|
Goods and Services |
A particular physical product or something that benefits a customers life. |
|
|
Consumable |
Something that is used during the use of the product, i.e. fuel |
|
|
Consumer Durable |
Doesn't need to be replaced, e.g. car |
|
|
Adding Value |
inputs --> Transformation process --> output |
|
|
Prevention of added value |
Too much wastage Profit margins Environment Competition The economy Legislation |
|
|
Added Value |
When a business persuades customers to pay a price that is higher than the cost of production |
